Annual report pursuant to Section 13 and 15(d)

REVENUES

v3.22.4
REVENUES
12 Months Ended
Dec. 31, 2022
REVENUES  
REVENUES

3. REVENUES

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

Year Ended December 31,

2022

    

2021

    

2020

Product sales:

Gross product sales

$

108,523

$

81,186

$

76,470

Discounts and allowances

(31,805)

 

(18,176)

 

(14,774)

Total product sales, net

76,718

63,010

61,696

Revenues from collaborations:

License revenues

7,932

70,553

40,358

Development milestones

25,000

 

1,875

 

2,100

Research and development services and others

6,092

 

3,298

 

4,467

Total revenues from collaborations

39,024

75,726

46,925

Government contract

4,500

10,500

Total revenues

$

120,242

$

149,236

$

108,621

Revenue from product sales is primarily related to sales of our first commercial product, TAVALISSE. In December 2022, following the FDA approval of our second commercial product, REZLIDHIA, we delivered product quantities to our customers and recognized $0.9 million of net revenue included within net product sales for the year ended December 31, 2022. Our net product sales include sale of products to our specialty distributors, net of chargebacks, discounts and fees, government and other rebates and returns. The following tables summarize the activities in chargebacks, discounts and fees, government and other rebates and returns that were accounted for within other accrued liabilities, for each of the periods presented (in thousands):

Chargebacks,

Government

Discounts and

and Other

Fees

Rebates

Returns

Total

Balance as of January 1, 2022

    

$

3,404

$

2,494

$

2,017

$

7,915

Provision related to current period sales

23,488

5,901

1,514

30,903

Credit or payments made during the period

(20,679)

(5,759)

(235)

(26,673)

Balance as of December 31, 2022

 

$

6,213

$

2,636

$

3,296

$

12,145

Chargebacks,

Government

Discounts and

and Other

Fees

Rebates

Returns

Total

Balance as of January 1, 2021

    

$

2,461

 

$

2,115

$

1,489

$

6,065

Provision related to current period sales

10,731

5,036

1,021

16,788

Credit or payments made during the period

(9,788)

(4,657)

(493)

(14,938)

Balance as of December 31, 2021

 

$

3,404

$

2,494

$

2,017

$

7,915

Of the $31.8 million discounts and allowances from gross product sales for the year ended December 31, 2022, $30.9 million was accounted for as additions to revenue reserves and refund liability and $0.9 million as reductions in accounts receivable (as it relates to allowance for prompt pay discount) and prepaid and other current assets (as it relates to certain chargebacks and other fees that were prepaid) in the balance sheet.

Of the $18.2 million discounts and allowances from gross product sales for the year ended December 31, 2021, $16.8 million was accounted for as additions to revenue reserves and refund liability and $1.4 million as reductions in accounts receivable (as it relates to allowance for prompt pay discount) and prepaid and other current assets (as it relates to certain chargebacks and other fees that were prepaid) in the balance sheet.

For detailed discussions of our revenues from collaboration and government contract, see “Note 4 – Sponsored Research and License Agreements and Government Contract” below.

The following table summarizes revenues from each of our customers who individually accounted for 10% or more (wherein * denotes less than 10%) of the total net product sales and revenues from collaborations:

Year Ended December 31,

2022

    

2021

2020

McKesson Specialty Care Distribution Corporation

31%

20%

23%

Kissei

24%

*

Cardinal Healthcare

19%

*

*

ASD Healthcare and Oncology Supply

17%

17%

30%

Lilly

*

48%

Grifols

*

*

41%