Rigel Pharmaceuticals, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

REVENUES

REVENUES

12 Months Ended

Dec. 31, 2018

REVENUES

REVENUES

2. REVENUES

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


	December 31,
	2018		2017		2016
Product sales:
Gross product sales	$	16,953	$	—	$	—
Discounts and allowances		(3,006)		—		—
Product sales, net	$	13,947	$	—	$	—

Revenues from collaborations:
License revenues		30,562	$	250		—
Development milestones		—		4,234		20,093
Research and development services		—		—		290
Total revenues from collaboration		30,562		4,484		20,383
Total revenues	$	44,509	$	4,484	$	20,383

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


	December 31,
	2018		2017		2016
Kissei		69%		—		—
ASD Healthcare and Oncology Supply		17%		—		—
McKesson Specialty Care Distribution Corporation		11%		—		—
BerGenBio		—		74%		18%
BMS		—		—		82%
Others		3%		26%		—

Our first and only FDA approved product, TAVALISSE®, was approved by the U.S. FDA in April 2018. We commenced commercial sale of TAVALISSE in the U.S. in May 2018. There were no product sales during the years ended December 31, 2017 and 2016.

In addition to the distribution agreements with our customers, the 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 1.

The following tables summarize activity in each of the product revenue allowances and discounts during the year ended December 31, 2018 (in thousands):


	Chargebacks,		Government
	Discounts and		and Other
	Fees		Rebates		Returns		Total
Balance at January 1, 2018	$	—	$	—	$	—	$	—
Provision related to current period sales		1,484		1,068		170		2,722
Adjustment related to prior period sales		—		—		—		—
Credit or payments made during the period		(861)		(225)		—		(1,086)
Balance at December 31, 2018	$	623	$	843	$	170	$	1,636

The above provisions, which represent our contract liability as of December 31, 2018, are included as part of Other Accrued Liabilities in the balance sheet.