Quarterly report pursuant to Section 13 or 15(d)

Revenues

v3.19.3
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.