Quarterly report pursuant to Section 13 or 15(d)

REVENUES

v3.22.2.2
REVENUES
9 Months Ended
Sep. 30, 2022
REVENUES  
REVENUES

3.

Revenues

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

Three Months Ended September 30, 

Nine Months Ended September 30, 

2022

    

2021

2022

    

2021

Product sales:

Gross product sales

$

26,977

$

20,546

$

76,022

58,692

Discounts and allowances

(7,789)

(4,534)

(22,087)

(13,251)

Total product sales, net

19,188

16,012

53,935

45,441

Revenues from collaborations:

License revenues

2,431

2,545

70,354

Development milestones

1,875

5,000

1,875

Research and development services and others

722

225

4,984

1,657

Total revenues from collaborations

722

4,531

12,529

73,886

Government contract

2,500

1,000

2,500

9,500

Total revenues

$

22,410

$

21,543

$

68,964

$

128,827

Our net product sales include sales of TAVALISSE in the US, 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

14,475

4,130

1,045

19,650

Credit or payments made during the period

(11,920)

(4,257)

(199)

(16,376)

Balance as of September 30, 2022

 

$

5,959

$

2,367

$

2,863

$

11,189

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

7,326

3,995

739

12,060

Credit or payments made during the period

(7,073)

(3,367)

(387)

(10,827)

Balance as of September 30, 2021

 

$

2,714

$

2,743

$

1,841

$

7,298

Of the $22.1 million discounts and allowances from gross product sales for the nine months ended September 30, 2022, $19.7 million was accounted for as additions to other accrued liabilities and $2.4 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 condensed balance sheet.

Of the $13.3 million discounts and allowances from gross product sales for the nine months ended September 30, 2021, $12.1 million was accounted for as additions to other accrued liabilities and $1.2 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 fess that were prepaid) in the condensed 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 the percentages of 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:

Three Months Ended September 30, 

Nine Months Ended September 30, 

2022

    

2021

2022

    

2021

McKesson Specialty Care Distribution Corporation

44%

35%

38%

17%

Cardinal Healthcare

27%

18%

22%

*

ASD Healthcare and Oncology Supply

25%

25%

21%

15%

Lilly

*

12%

*

56%

Kissei

*

*

11%

*