Out-license Agreements (Tables)

6 Months Ended

Jun. 30, 2023

License Collaboration And Manufacturing Agreements [Abstract]

Schedule of Deferred Revenue Activity

Deferred revenue activity related to commercialization revenue for the six months ended June 30, 2023 was as follows:

	(in thousands)
Deferred revenue, December 31, 2022	$	85,000
Additions		4,168
Recognized into commercialization revenue		(1,654	)
Deferred revenue June 30, 2023		87,514
Less: deferred revenue – current portion		(11,949	)
Deferred revenue – long-term, June 30, 2023	$	75,565

During the six months ended June 30, 2023, we recognized $1.3 million of revenue that was included in the deferred revenue balance as of December 31, 2022.

Cost of commercialization revenue consists primarily of expenses associated with cell selection services performed for Pierre Fabre, in-license sales-related milestone costs, period manufacturing expenses and the lower of cost or net realizable value adjustments to inventories. All Ebvallo sold to Pierre Fabre to date had been produced prior to receiving regulatory approval of Ebvallo. Costs incurred to produce Ebvallo prior to regulatory approval, referred to as zero cost inventories, have been recorded as research and development expense in our condensed consolidated statement of operations and comprehensive income (loss). Once we begin selling Ebvallo produced after receiving regulatory approval and in a qualified manufacturing facility, and as revenue is recognized on such Ebvallo shipments, cost of commercialization revenue will also include direct and indirect costs related to the production of Ebvallo. Such costs include, but are not limited to, CMO costs, quality testing and validation, materials used in production, and an allocation of compensation, benefits and overhead costs associated with employees involved with production