Annual report pursuant to Section 13 and 15(d)

REVENUES

v3.24.0.1
REVENUES
12 Months Ended
Dec. 31, 2023
REVENUES  
REVENUES

3. REVENUES

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

Year Ended December 31,

2023

    

2022

    

2021

Product sales:

Gross product sales

$

147,058

$

108,523

$

81,186

Discounts and allowances

(42,764)

 

(31,805)

 

(18,176)

Total product sales, net

104,294

76,718

63,010

Revenues from collaborations:

License revenues

7,932

70,553

Milestone revenue

75

 

25,000

 

1,875

Delivery of drug supplies, royalty and others

11,413

 

6,092

 

3,298

Total revenues from collaborations

11,488

39,024

75,726

Government contracts

1,100

4,500

10,500

Total revenues

$

116,882

$

120,242

$

149,236

Revenue from product sales is related to sales of our commercial products, TAVALISSE and REZLIDHIA, to our customers which are specialty distributors. For detailed discussions of our revenues from collaboration and government contracts, see “Note 4 – Sponsored Research and License Agreements and Government Contracts.”

Our product sales revenue is net of chargebacks, discounts and fees, government and other rebates and returns. Of the total discounts and allowances from gross product sales for the years ended December 31, 2023, 2022 and 2021, $41.5 million, $30.9 million and $16.8 million, respectively, was accounted for as additions to revenue reserves and refund liability, and $1.3 million, $0.9 million and $1.4 million, respectively, 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. The following tables summarize the activities in chargebacks, discounts and fees, government and other rebates and returns that were accounted for revenue reserves and refund liability, for each of the periods presented (in thousands):

Chargebacks,

Government

Discounts and

and Other

Fees

Rebates

Returns

Total

Balance as of January 1, 2023

    

$

6,213

$

2,636

$

3,296

$

12,145

Provision related to current period sales

32,330

8,299

869

41,498

Credit or payments made during the period

(30,307)

(7,418)

(234)

(37,959)

Balance as of December 31, 2023

 

$

8,236

$

3,517

$

3,931

$

15,684

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

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,

2023

    

2022

2021

McKesson Specialty Care Distribution Corporation

43%

31%

20%

Cardinal Healthcare

25%

19%

*

ASD Healthcare and Oncology Supply

21%

17%

17%

Kissei

*

24%

*

Lilly

*

*

48%