Quarterly report pursuant to Section 13 or 15(d)

Revenues

v3.20.2
Revenues
9 Months Ended
Sep. 30, 2020
Revenues  
Revenues

7.

Revenues

Revenues disaggregated by category were as follows (in thousands):

Three Months Ended 

Nine Months Ended 

September 30, 

September 30, 

2020

    

2019

2020

    

2019

Product sales:

Gross product sales

$

20,318

$

14,348

$

54,042

$

36,745

Discounts and allowances

(4,029)

(2,632)

(10,099)

(6,802)

Product sales, net

$

16,289

$

11,716

$

43,943

$

29,943

Revenues from collaborations:

License revenues

2,100

7,750

41,958

12,249

Research and development services and others

1,391

4,270

1,696

Total revenues from collaborations

2,100

9,141

46,228

13,945

Total revenues

$

18,389

$

20,857

$

90,171

$

43,888

The following table summarizes revenues from each of our customers who individually accounted for 10% or more (wherein * denotes less than 10%) of our total revenues (as a percentage of total revenues):

Three Months Ended 

Nine Months Ended 

September 30, 

September 30, 

2020

    

2019

2020

    

2019

ASD Healthcare and Oncology Supply

48%

28%

26%

34%

McKesson Specialty Care Distribution Corporation

34%

22%

20%

27%

Daiichi

11%

*

Aclaris

19%

*

Celgene

18%

*

Grifols

*

49%

11%

We commenced commercial sale of TAVALISSE in the U.S. in May 2018 after FDA approval in April 2018. Our Marketing Authorization Application (MAA) for fostamatinib for the treatment of chronic ITP in adult patients who are refractory to other treatments was approved by the EC in January 2020. Fostamatinib is marketed in Europe under the brand name TAVLESSE™ (fostamatinib). Grifols launched TAVLESSE™ in the UK and Germany in July 2020, and expects a phased roll-out over the next 18 months across Europe.

In addition to the distribution agreements with our customers and SDs, we also enter into arrangements with specialty pharmacy providers, in-office dispensing providers, group purchasing organizations, and government entities that provide for government-mandated and/or privately-negotiated rebates, chargebacks and discounts with respect to the purchase of our products which reduced our gross product sales. Also refer to Revenue Recognition policy discussion in “Note 3” above.

The following table summarizes activity in each of the product revenue allowance and reserve categories for the nine months ended September 30, 2020 and 2019 (in thousands):

Chargebacks,

Government

Discounts and

and Other

Fees

Rebates

Returns

Total

Balance at January 1, 2020

    

$

1,293

 

$

1,801

$

238

$

3,332

Provision related to current period sales

5,625

2,775

676

9,076

Adjustment related to prior period sales

(75)

(490)

565

Credit or payments made during the period

(5,020)

(2,407)

(72)

(7,499)

Balance at September 30, 2020

 

$

1,823

$

1,679

$

1,407

$

4,909

Chargebacks,

Government

Discounts and

and Other

Fees

Rebates

Returns

Total

Balance at January 1, 2019

    

$

622

 

$

843

$

170

$

1,635

Provision related to current period sales

3,561

2,296

99

5,956

Credit or payments made during the period

(2,932)

(1,298)

(4,230)

Balance at September 30, 2019

 

$

1,251

$

1,841

$

269

$

3,361

Of the $10.1 million discounts and allowances from gross product sales for the nine months ended September 30, 2020, $9.1 million was accounted for as additions to other accrued liabilities and $1.0 million as reductions in accounts receivable and prepaid and other current assets in the balance sheet. Other accrued liabilities related to the discounts and allowances had a remaining outstanding balance of $4.9 million as of September 30, 2020.