Quarterly report pursuant to Section 13 or 15(d)

Revenues

v3.20.2
Revenues
6 Months Ended
Jun. 30, 2020
Revenues  
Revenues

7.

Revenues

​

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

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended 

​

Six Months Ended 

​

​

​

June 30, 

​

June 30, 

​

​

​

2020

    

2019

​

2020

    

2019

​

Product sales:

​

​

​

​

​

​

​

​

​

​

​

​

​

Gross product sales

​

$

18,353

​

$

12,481

​

$

33,724

​

$

22,397

​

Discounts and allowances

​

​

(3,379)

​

​

(2,308)

​

​

(6,070)

​

​

(4,170)

​

Product sales, net

​

$

14,974

​

$

10,173

​

$

27,654

​

$

18,227

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Revenues from collaborations:

​

​

​

​

​

​

​

​

​

​

​

​

​

License revenues

​

​

—

​

​

—

​

​

39,858

​

​

4,499

​

Research and development services and others

​

​

1,047

​

​

234

​

​

4,270

​

​

305

​

Total revenues from collaborations

​

​

1,047

​

​

234

​

​

44,128

​

​

4,804

​

Total revenues

​

$

16,021

​

$

10,407

​

$

71,782

​

$

23,031

​

​

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 

​

Six Months Ended 

​

​

​

June 30, 

​

June 30, 

​

​

​

2020

    

2019

​

2020

    

2019

​

ASD Healthcare and Oncology Supply

​

​

47%

​

​

48%

​

​

20%

​

​

40%

​

McKesson Specialty Care Distribution Corporation

​

​

41%

​

​

40%

​

​

16%

​

​

31%

​

Cardinal Healthcare

​

​

5%

​

​

10%

​

​

2%

​

​

—

​

Grifols

​

​

7%

​

​

—

​

​

61%

​

​

20%

​

​

We commenced commercial sale of TAVALISSE in the U.S. in May 2018 after FDA approval in April 2018. Our MAA for fostamatinib for the treatment of chronic ITP in adult patients who are refractory to other treatments was approved by the EC in January 2020.

​

In addition to the distribution agreements with our customers and 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” above.

​

The following table summarizes activity in each of the product revenue allowance and reserve categories for the six months ended June 30, 2020 and 2019 (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Chargebacks,

​

Government

​

​

​

​

​

​

Discounts and

​

and Other

​

​

​

​

​

​

Fees

​

Rebates

​

Returns

​

Total

Balance at January 1, 2020

    

$

1,293

 

$

1,801

​

$

238

​

$

3,332

Provision related to current period sales

​

​

3,381

​

​

1,747

​

​

128

​

​

5,256

Adjustment related to prior period sales

​

​

(75)

​

​

(257)

​

​

332

​

​

—

Credit or payments made during the period

​

​

(2,615)

​

​

(1,593)

​

​

(58)

​

​

(4,266)

Balance at June 30, 2020

 

$

1,984

​

$

1,698

​

$

640

​

$

4,322

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

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

​

​

2,055

​

​

1,559

​

​

99

​

​

3,713

Credit or payments made during the period

​

​

(1,682)

​

​

(930)

​

​

—

​

​

(2,612)

Balance at June 30, 2019

 

$

995

​

$

1,472

​

$

269

​

$

2,736

​

The discounts and allowances from gross product sales for the six months ended June 30, 2020 of $6.1 million in the first table above includes the provision for current period sales of $5.3 million which formed part of Other Accrued Liabilities in the balance sheet of which $4.3 million remained outstanding as of June 30, 2020. Of the $6.1 million discounts and allowances from gross sales, $796,000 is recorded as reduction in accounts receivable and prepaid and other current assets in the balance sheet.