Quarterly report pursuant to Section 13 or 15(d)

Revenues

v3.21.1
Revenues
3 Months Ended
Mar. 31, 2021
Revenues  
Revenues

7.

Revenues

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

Three Months Ended 

March 31, 

2021

    

2020

Product sales:

Gross product sales

$

16,109

$

15,371

Discounts and allowances

(3,733)

(2,691)

Total product sales, net

12,376

12,680

Revenues from collaborations:

License revenues

64,618

39,858

Research and development services and others

1,024

3,223

Total revenues from collaborations

65,642

43,081

Government contract

3,000

Total revenues

$

81,018

$

55,761

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:

March 31, 

2021

    

2020

Lilly

78%

Grifols

*

77%

ASD Healthcare and Oncology Supply

*

12%

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. Fostamatinib is marketed in Europe under the brand name TAVLESSE (fostamatinib). Grifols launched TAVLESSE in the UK and Germany in July 2020, and thereafter expects a phased roll-out-out over the next 18 months across Europe. In December 2020, the Scottish Medicines Consortium accepted TAVLESSE for use in NHS in Scotland.

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 three months ended March 31, 2021 and 2020 (in thousands):

Chargebacks,

Government

Discounts and

and Other

Fees

Rebates

Returns

Total

Balance at January 1, 2021

    

$

2,461

 

$

2,115

$

1,489

$

6,065

Provision related to current period sales

1,952

1,146

201

3,299

Credit or payments made during the period

(2,727)

(988)

(243)

(3,958)

Balance at March 31, 2021

 

$

1,686

$

2,273

$

1,447

$

5,406

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

Of the $3.7 million discounts and allowances from gross product sales for the three months ended March 31, 2021, $3.3 million was accounted for as additions to other accrued liabilities and $434,000 as reductions in accounts receivable and prepaid and other current assets in the balance sheet. Other accrued liabilities related to the discounts and allowances had a remaining outstanding balance of $5.4 million as of March 31, 2021.

Of the $2.7 million discounts and allowances from gross product sales for the three months ended March 31, 2020, $2.2 million was accounted for as additions to other accrued liabilities and $467,000 as reductions in accounts receivable and prepaid and other current assets in the balance sheet. Other accrued liabilities related to the discounts and allowances had a remaining outstanding balance of $3.5 million as of March 31, 2020.