Quarterly report pursuant to Section 13 or 15(d)

Revenues

v3.21.2
Revenues
6 Months Ended
Jun. 30, 2021
Revenues  
Revenues

7.

Revenues

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

Three Months Ended 

Six Months Ended 

June 30, 

June 30, 

2021

    

2020

2021

    

2020

Product sales:

Gross product sales

$

22,037

$

18,353

$

38,146

$

33,724

Discounts and allowances

(4,984)

(3,379)

(8,717)

(6,070)

Total product sales, net

17,053

14,974

29,429

27,654

Revenues from collaborations:

License revenues

3,305

67,923

39,858

Research and development services and others

408

1,047

1,432

4,270

Total revenues from collaborations

3,713

1,047

69,355

44,128

Government contract

5,500

8,500

Total revenues

$

26,266

$

16,021

$

107,284

$

71,782

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 

Six Months Ended 

June 30, 

June 30, 

2021

    

2020

2021

    

2020

ASD Healthcare and Oncology Supply

36%

47%

13%

20%

McKesson Specialty Care Distribution Corporation

33%

41%

13%

16%

Lilly

16%

65%

Cardinal Healthcare

13%

*

*

*

Grifols

*

*

*

61%

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 six months ended June 30, 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

4,589

2,710

483

7,782

Credit or payments made during the period

(4,800)

(2,433)

(293)

(7,526)

Balance at June 30, 2021

 

$

2,250

$

2,392

$

1,679

$

6,321

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

Of the $8.7 million discounts and allowances from gross product sales for the six months ended June 30, 2021, $7.8 million was accounted for as additions to other accrued liabilities and $936,000 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 $6.3 million as of June 30, 2021.

Of the $6.1 million discounts and allowances from gross product sales for the six months ended June 30, 2020, $5.3 million was accounted for as additions to other accrued liabilities and $796,000 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 $4.3 million as of June 30, 2020.