v3.25.0.1
Product Revenues, Accounts Receivable, and Reserves for Product Sales
 12 Months Ended
Dec. 31, 2024
Product Revenues Accounts Receivable And Reserves For Product Sales [Abstract]  
Product Revenues, Accounts Receivable, and Reserves for Product Sales

3. Product Revenues, Accounts Receivable, and Reserves for Product Sales

 

The Company received FDA approval for the sale of EMPAVELI in the United States in May 2021 and approval for the sale of SYFOVRE in the United States in February 2023. The Company’s product revenues, net of sales discounts and allowances and reserves as of December 31, 2024, 2023 and 2022 totaled $710.0 million, $366.3 million and $65.1 million. The Company’s product revenues consist of sales of EMPAVELI and SYFOVRE to specialty pharmacies and specialty distributors.

 

The table reflects net product revenue by major source for the following periods (in thousands):

 

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

Products:

 

 

 

 

 

 

 

 

 

 EMPAVELI

 

$

98,091

 

 

$

91,033

 

 

$

65,092

 

 SYFOVRE

 

 

611,863

 

 

 

275,248

 

 

 

—

 

 Total product revenue, net

 

$

709,954

 

 

$

366,281

 

 

$

65,092

 

 

The Company’s accounts receivable balance of $264.9 million as of December 31, 2024 and $206.4 million as of December 31, 2023 primarily consisted of EMPAVELI and SYFOVRE product sales receivable and licensing and other revenue receivables from its collaboration with Sobi. The Company does not have a reserve related to expected credit losses against its accounts receivable balance and expects to collect its accounts receivable in the ordinary course of business.

The Company’s product sales reserves totaled $45.1 million and $16.6 million as of December 31, 2024 and 2023. respectively. These amounts are included in accrued expenses on the Company’s consolidated balance sheet as of December 31, 2024.

The following table summarizes activity in each of the product revenue allowance and reserve categories as of December 31, 2024 (in thousands):

 

 

 

Fees and patient assistance

 

 

Government and other rebates

 

 

Returns

 

 

Total

 

 Ending balance at December 31, 2022

 

$

164

 

 

$

1,936

 

 

$

251

 

 

$

2,351

 

 Provision related to sales in the current year

 

 

17,690

 

 

 

26,661

 

 

 

4,698

 

 

 

49,050

 

Adjustments related to prior period sales

 

 

(112

)

 

 

(1,223

)

 

 

(2,481

)

 

 

(3,817

)

 Credits and payments made

 

 

(12,068

)

 

 

(18,476

)

 

 

(415

)

 

 

(30,960

)

 Ending balance at December 31, 2023

 

$

5,674

 

 

$

8,898

 

 

$

2,053

 

 

$

16,625

 

 Provision related to sales in the current year

 

 

46,506

 

 

 

89,094

 

 

 

3,936

 

 

 

139,536

 

Adjustments related to prior period sales

 

 

1,461

 

 

 

(19

)

 

 

(96

)

 

 

1,346

 

 Credits and payments made

 

 

(42,052

)

 

 

(66,440

)

 

 

(3,870

)

 

 

(112,362

)

 Ending balance at December 31, 2024

 

$

11,589

 

 

$

31,533

 

 

$

2,023

 

 

$

45,145

 

Significant customers - Gross product revenues and product sales receivable from the Company's customers who individually accounted for 10% of more of total gross product revenues and/or 10% or more of total product sales receivable consisted of the following:

 

 

 

Percent of Total Gross Product Revenues

 

 

 

Year Ended December 31,

 

 

 

2024

 

2023

 

2022

 

 Customer A

 

13%

 

24%

 

99%

 

 Customer C

 

19%

 

16%

 

 

—

 

 Customer D

 

59%

 

54%

 

1%

 

 

 

 

Percent of Product Sales Receivable

 

 

As of December 31,

 

 

2024

 

2023

 Customer A

 

3%

 

4%

 Customer C

 

29%

 

22%

 Customer D

 

55%

 

66%

 

Factoring of accounts receivable and associated fees for the years ended December 31, 2024 and 2023 were as follows (in thousands):

 

 

 

December 31,

 

 

December 31,

 

 

December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

 Accounts receivable sold

 

$

142,698

 

 

$

—

 

 

$

—

 

 Less: factoring fees

 

 

(1,700

)

 

 

—

 

 

 

—

 

 Net cash proceeds

 

$

140,998

 

 

$

—

 

 

$

—

 

The accounts receivable sold that remained outstanding as of December 31, 2024 and 2023 was $86.1 million and zero, respectively.