Revenue Recognition and Collaborative Arrangements

9 Months Ended

Sep. 30, 2021

Revenue Recognition and Collaborative Arrangements

Revenue Recognition and Collaborative Arrangements

3. Revenue Recognition and Collaborative Arrangements

We recognize royalty revenue on net sales of products with respect to which we have contractual royalty rights in the period in which the royalties are earned. Royalties, which may include adjustments of estimates of net sales in prior periods, are recognized net of amortization of capitalized fees associated with any approval and launch milestone payments made to GSK.

Net Revenue from Collaborative Arrangements

Net revenue recognized under our GSK Agreements was as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2021			2020			2021			2020
Royalties from a related party    - RELVAR/BREO	$	54,092		$	63,893		$	176,398		$	165,612
Royalties from a related party    - ANORO		11,641			11,882			34,101			32,931
Royalties from a related party    - TRELEGY		35,585			16,375			84,055			48,143
Total royalties from a related party		101,318			92,150			294,554			246,686
Less: amortization of capitalized fees    paid to a related party		(3,456	)		(3,456	)		(10,368	)		(10,368	)
Royalty revenue		97,862			88,694			284,186			236,318
Strategic alliance - MABA program		—			—			—			10,000
Total net revenue from GSK	$	97,862		$	88,694		$	284,186		$	246,318