Pharmaceuticals & Biotech: Restructuring (ASC 420)

In recent years, we have closed or divested a significant number of manufacturing plants in the United States, Europe, Israel, Japan and India in connection with a restructuring plan and our ongoing efforts to consolidate our manufacturing and supply network.

Raw Materials for Pharmaceutical Production

In general, we purchase our raw materials and supplies required for the production of our products in the open market. For some products, we purchase such raw materials and supplies from one source (the only source available to us) or a single source (the only approved source among many available to us), thereby requiring us to obtain such raw materials and supplies from that particular source. Where possible, we mitigate our raw material supply risks through inventory management and alternative sourcing strategies. See also “Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations—Macroeconomic Environment.”

We source a portion of our APIs from our own manufacturing facilities. Additional APIs are purchased from suppliers located in Europe, Asia and the Americas. We have in place a supplier audit program to provide assurance that our suppliers meet regulatory expectations and are able to fulfill the requirements of our global operations.

We currently have 13 API production facilities, producing approximately 350 APIs in various therapeutic areas. Our API intellectual property portfolio includes hundreds of granted patents and pending applications.

We have expertise in a variety of production technologies, including chemical synthesis, semi-synthetic fermentation, enzymatic synthesis, high-potency manufacturing, plant extract technology, peptides synthesis, vitamin D derivatives synthesis and steroids. Our advanced technology and expertise in the field of solid-state particle technology enable us to meet specifications for particle size distribution, bulk density, specific surface area and polymorphism, as well as other characteristics.

Our API facilities are required to comply with applicable cGMP requirements under U.S., European, Japanese and other applicable quality standards. Our API plants are regularly inspected by the FDA, European agencies and other authorities, as applicable. See also “Other Activities” above.

Patents and Other Intellectual Property Rights

Year ended September 30,
(In thousands, except per share data)	2025	2024	2023
Revenues [1]	376,572	312,974	245,109
Costs and expenses:
Cost of revenues	185,570	179,625	155,380
Research and development expenses	80,285	90,852	106,894
Selling, general and administrative expenses	246,976	218,398	189,738
Restructuring and other costs	—	—	9,384
Change in fair value of contingent considerations and holdbacks	—	—	( 5,913 )
Impairment of long-lived assets	—	44,930	6,785
Total costs and expenses	512,831	533,805	462,268
Loss from operations	( 136,259 )	( 220,831 )	( 217,159 )
Gain on sale of business	48,847	—	—
Interest income	11,364	15,344	14,365
Other income (expense), net [2]	( 903 )	( 2,679 )	( 672 )
Loss before income taxes	( 76,951 )	( 208,166 )	( 203,466 )
Income tax expense	( 719 )	( 560 )	( 1,152 )
Net loss attributable to common stockholders	( 77,670 )	( 208,726 )	( 204,618 )
Other comprehensive income (loss):
Change in unrealized gain (loss) on investments	( 50 )	203	1,510
Foreign currency translation adjustment	( 55 )	31	( 423 )
Comprehensive loss	( 77,775 )	( 208,492 )	( 203,531 )
Net loss per share attributable to common stockholders—basic and diluted	( 1.30 )	( 3.60 )	( 3.60 )
Weighted average shares used in computing net loss per share attributable to common stockholders—basic and diluted	59,808	58,016	56,885

[1] Including revenues from related parties of $ 12.2 million, $ 12.1 million and $ 5.9 million during the year end September 30, 2025, 2024 and 2023, respectively.

[2] Including sublease income from a related party of $ 1.1 million, $ — million and $ — million during the year end September 30, 2025, 2024 and 2023, respectively.

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

Twist Bioscience Corporation

Consolidated Statements of Stockholders’ Equity