Quarterly report pursuant to Section 13 or 15(d)

Revenues

v3.20.1
Revenues
3 Months Ended
Mar. 31, 2020
Revenues  
Revenues

7.Revenues

 

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

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended 

 

 

 

 

March 31, 

 

 

 

 

2020

    

2019

 

 

Product sales:

 

 

 

 

 

 

 

 

Gross product sales

 

$

15,371

 

$

9,916

 

 

Discounts and allowances

 

 

(2,691)

 

 

(1,862)

 

 

Product sales, net

 

$

12,680

 

$

8,054

 

 

 

 

 

 

 

 

 

 

 

Revenues from collaborations:

 

 

 

 

 

 

 

 

License revenues

 

 

39,858

 

 

4,499

 

 

Research and development services and others

 

 

3,223

 

 

71

 

 

Total revenues from collaborations

 

 

43,081

 

 

4,570

 

 

Total revenues

 

$

55,761

 

$

12,624

 

 

 

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 

 

 

 

 

March 31, 

 

 

 

 

2020

    

2019

 

 

Grifols

 

 

77%

 

 

36%

 

 

ASD Healthcare and Oncology Supply

 

 

12%

 

 

33%

 

 

McKesson Specialty Care Distribution Corporation

 

 

9%

 

 

24%

 

 

 

 

 

 

 

 

 

 

 

 

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, 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 three months ended March 31, 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

 

 

1,487

 

 

745

 

 

 —

 

 

2,232

Credit or payments made during the period

 

 

(1,324)

 

 

(627)

 

 

(58)

 

 

(2,009)

Balance at March 31, 2020

 

$

1,456

 

$

1,919

 

$

180

 

$

3,555

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

855

 

 

706

 

 

99

 

 

1,660

Credit or payments made during the period

 

 

(735)

 

 

(323)

 

 

 —

 

 

(1,058)

Balance at March 31, 2019

 

$

742

 

$

1,226

 

$

269

 

$

2,237

 

The discounts and allowances from gross product sales for the three months ended March 31, 2020 of $2.7 million in the first table above includes the provision for current period sales of $2.2 million which formed part of Other Accrued Liabilities in the balance sheet of which $3.5 million remained outstanding as of March 31, 2020. Of the $2.7 million discounts and allowances from gross sales, $467,000 is recorded as reduction in accounts receivable and prepaid and other current assets in the balance sheet.

 

As of March 31, 2020, we have accounts receivable from Aclaris of $1.0 million, relative to the first amendment to the license and collaboration agreement with Aclaris. We determined that no allowance for doubtful accounts was necessary for our accounts receivable as of March 31, 2020.