
	March 31,		December 31,
(in thousands)	2024		2023
Accounts receivable:
Accounts receivable, gross	$	30,968	$	27,975
Allowance for doubtful accounts	(1,081)		(950)
Total accounts receivable, net	$	29,887	$	27,025

Contract liabilities:
Deferred revenue, current	$	455	$	884
Total contract liabilities	$	455	$	884

Viatris has paid us an aggregate of $60 million in non-refundable upfront and milestone fees as of March 31, 2024, and the agreement provides for additional remaining contingent payments of up to $70 million in the aggregate, upon the achievement of certain clinical and regulatory milestones and of specified, tiered sales milestones of up to $225 million. The payments do not represent a financing component for the transfer of goods or services. In addition, Viatris is required to pay us low to mid-double digit royalties on any sales of the biosimilar in the U.S., mid-double digit royalties on any sales in Europe, and high single digit royalties on any sales in other ex-U.S. Viatris territories. However, we have agreed to waive royalties for U.S. sales, up to a maximum of $50 million in annual sales, during the first approximately four years after commercialization to defray launch costs.

We estimated the transaction price for the Viatris Agreement using the most likely amount method within the scope of ASC 606. In order to determine the transaction price, we evaluated all of the payments to be received during the duration of the contract, which included milestones and consideration payable by Viatris. Other than the upfront payment, all other milestones and consideration we may earn under the Viatris Agreement are subject to uncertainties related to development achievements, Viatris’ rights to terminate the agreement, and estimated effort for cost-sharing payments. Components of such estimated effort for cost-sharing payments include both internal and external costs. Consequently, the transaction price does not include any milestones and considerations that, if included, could result in a probable significant reversal of revenue when related uncertainties become resolved. At the end of each reporting period, we re-evaluate the probability of achievement of each such milestone and any related constraint, and if necessary, adjust our estimates of the overall transaction price. Sales-based milestones and royalties are not included in the transaction price until the sales occur because the underlying value relates to the license and the license is the predominant feature in the Viatris Agreement. As of March 31, 2024, the transaction price allocated to the unfulfilled performance obligations was $31.0 million.

We recognize revenue and estimate deferred revenue based on the cost of development service incurred over the total estimated cost of development services to be provided for the development period. For revenue recognition purposes, the development period has an estimated accounting program end date of 2027. It is possible that this period will change and is assessed at each reporting date. ASC Topic 606, Revenue from Contracts with Customers (ASC 606) requires that an entity include a constraint on the amount of variable consideration included in the transaction price. Variable consideration is

considered “constrained” if there is a potential for significant reversal of cumulative revenue recognized. As part of the constraint evaluation, we considered numerous factors, including a shift in certain responsibilities between the two parties which would result in changes to the net cost sharing payments and the total project budget, for which outcomes are difficult to predict as of the date of this Report. We will continue to evaluate the variable transaction price and related revenue recognition in each reporting period and as the above uncertainties are resolved or other changes in circumstances occur. For the three months ended March 31, 2024, we recognized revenue related to development services under the Viatris Agreement of $0.2 million. For the three months ended March 31, 2023, no collaboration revenue is recognized from the biosimilar program.

As of March 31, 2024, Fosun has paid us non-refundable upfront and other payments totaling $41.0 million before foreign withholding taxes. We are also eligible to receive (i) additional remaining contingent payments of up to $219.5 million upon the achievement of certain milestones, and (ii) tiered royalty payments in low double digits to high teen percentages on annual net sales. The royalty percentages are subject to reduction in the event that (i) we do not have any valid and unexpired patent claims that cover the product in the Fosun Territory, (ii) biosimilars of the product are sold in the Fosun Territory or (iii) Fosun needs to pay compensation to third parties to either avoid patent infringement or market the product in the Fosun Territory.

We estimated the transaction price for the Fosun License Agreement using the most likely amount method. We evaluated all of the variable payments to be received during the duration of the contract, which included payments from specified milestones, royalties, and estimated supplies to be delivered. We will re-evaluate the transaction price at each reporting period and upon a change in circumstances. As of March 31, 2024, the transaction price allocated to unfulfilled performance obligation is $41.0 million. For the three months ended March 31, 2024, no revenue was recognized from the Fosun License Agreement. For the three months ended March 31, 2023, we recognized revenue of $0.1 million related to the Fosun License Agreement.


	March 31,		December 31,
(in thousands)	2024		2023
Accounts receivable:
Accounts receivable — Viatris	$	—	$	631
Accounts receivable — Fosun	—		4
Total accounts receivable	$	—	$	635

Contract liabilities:
Deferred revenue, current — Viatris	$	9,329	$	9,853

Total contract liabilities, current	$	9,329	$	9,853

Deferred revenue, non-current — Viatris	$	30,428	$	29,444
Deferred revenue, non-current — Fosun	40,975		40,975
Total contract liabilities, non-current	$	71,403	$	70,419