Rigel Pharmaceuticals, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Revenues

Revenues

9 Months Ended

Sep. 30, 2019

Revenues

Revenues

7.Revenues

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


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2019		2018		2019		2018
Product sales:
Gross product sales	$	14,348	$	6,132	$	36,745	$	8,419
Discounts and allowances		(2,632)		(1,267)		(6,802)		(1,767)
Product sales, net	$	11,716	$	4,865	$	29,943	$	6,652

Revenues from collaborations:
License revenues		7,750		—		12,249		—
Research and development services and others		1,391		—		1,696		—
Total revenues from collaborations		9,141		—		13,945		—
Total revenues	$	20,857	$	4,865	$	43,888	$	6,652

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):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2019		2018		2019		2018
ASD Healthcare and Oncology Supply		28%		58%		34%		53%
McKesson Specialty Care Distribution Corporation		22%		33%		27%		38%
Aclaris		19%		—		9%		—
Celgene		18%		—		9%		—
Grifols		0%		—		11%		—

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.

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 3.

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


	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

The discounts and allowances for the nine months ended September 30, 2019 of $6.8 million in the first table, which includes the provision for current period sales of $6.0 million, are included as part of Other Accrued Liabilities in the balance sheet of which $3.1 million remained outstanding as of September 30, 2019. The remaining $810,000 in discounts and allowances related to current period sales not included in the table above is recorded as reduction of accounts receivable and prepaid and other current assets in the balance sheet.