REVENUES |
3. REVENUES
Revenues disaggregated by category were as follows (in thousands):
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Year Ended December 31, |
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2023 |
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2022 |
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2021 |
Product sales: |
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Gross product sales |
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$ |
147,058 |
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$ |
108,523 |
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$ |
81,186 |
Discounts and allowances |
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(42,764) |
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(31,805) |
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(18,176) |
Total product sales, net |
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104,294 |
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76,718 |
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63,010 |
Revenues from collaborations: |
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License revenues |
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— |
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7,932 |
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70,553 |
Milestone revenue |
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75 |
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25,000 |
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1,875 |
Delivery of drug supplies, royalty and others |
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11,413 |
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6,092 |
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3,298 |
Total revenues from collaborations |
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11,488 |
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39,024 |
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75,726 |
Government contracts |
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1,100 |
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4,500 |
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10,500 |
Total revenues |
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$ |
116,882 |
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$ |
120,242 |
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$ |
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 $1.4 million, respectively, as reductions in accounts receivable (as it relates to allowance for prompt pay discount) and prepaid and other current assets (as it relates to certain chargebacks and other fees that were prepaid) in the balance sheet. The following tables summarize the activities in chargebacks, discounts and fees, government and other rebates and returns that were accounted for revenue reserves and refund liability, for each of the periods presented (in thousands):
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Chargebacks, |
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Government |
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Discounts and |
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and Other |
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Fees |
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Rebates |
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Returns |
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Total |
Balance as of January 1, 2023 |
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$ |
6,213 |
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$ |
2,636 |
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$ |
3,296 |
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$ |
12,145 |
Provision related to current period sales |
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32,330 |
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8,299 |
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|
869 |
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41,498 |
Credit or payments made during the period |
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(30,307) |
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(7,418) |
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(234) |
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(37,959) |
Balance as of December 31, 2023 |
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$ |
8,236 |
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$ |
3,517 |
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$ |
3,931 |
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$ |
15,684 |
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Chargebacks, |
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Government |
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Discounts and |
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and Other |
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Fees |
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Rebates |
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Returns |
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Total |
Balance as of January 1, 2022 |
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$ |
3,404 |
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$ |
2,494 |
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$ |
2,017 |
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$ |
7,915 |
Provision related to current period sales |
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23,488 |
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5,901 |
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1,514 |
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30,903 |
Credit or payments made during the period |
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(20,679) |
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(5,759) |
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(235) |
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(26,673) |
Balance as of December 31, 2022 |
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$ |
6,213 |
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$ |
2,636 |
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$ |
3,296 |
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$ |
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:
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Year Ended December 31, |
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2023 |
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2022 |
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2021 |
McKesson Specialty Care Distribution Corporation |
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43% |
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31% |
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20% |
Cardinal Healthcare |
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25% |
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19% |
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* |
ASD Healthcare and Oncology Supply |
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21% |
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17% |
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17% |
Kissei |
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* |
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24% |
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* |
Lilly |
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* |
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* |
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48% |
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