PRODUCT REVENUE, NET |
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PRODUCT REVENUE, NET | NOTE 4—PRODUCT REVENUE, NET The Company’s product revenue, net was generated from sales of DANYELZA and consists of the following (in thousands):
The majority of the Company’s product sales were in the United States with additional sales in China, Europe, Latin America, and Israel through sublicenses and distribution agreements. The Company’s product revenue, net from other countries for the three months ended March 31, 2023 included $2,516,000 of product revenue, net from the Company’s distribution partner, WEP, in connection with the Company’s early access program for DANYELZA in Europe. There is no product revenue, net from WEP in the three months ended March 31, 2024. The Company recognized royalty revenue from the distribution partners of $462,000 and $658,000 in the three months ended March 31, 2024 and 2023, respectively. The Company had product sales to certain customers that accounted for more than 10% of total product revenue, net for the three months ended March 31, 2024 and 2023. McKesson, AmerisourceBergen and Cardinal Health, accounted for 51%, 25%, and 22%, respectively, of the Company’s product revenue, net for the three months ended March 31, 2024. McKesson, AmerisourceBergen, Cardinal Health and WEP accounted for 45%, 29%, 13% and 12%, respectively, of the Company’s product revenue, net for the three months ended March 31, 2023. As of March 31, 2024, the Company had recorded on the Consolidated Balance Sheets accounts receivable of approximately $20,588,000, of which $2,241,000 represents an unbilled portion to which the Company has unconditional rights to collect the consideration, and accrued liabilities of $198,000 related to product sales to WEP during the year ended December 31, 2023. Revenue from product sales is recorded net of applicable provisions for rebates, chargebacks, discounts, distribution-related fees and other sales-related deductions. Accruals for chargebacks and discounts are recorded as a direct reduction to accounts receivable. Accruals for rebates, distribution-related fees without contractual right of offset and other sales-related deductions are recorded within accrued liabilities. As of March 31, 2024, the Company had recorded accounts receivable allowances of approximately $617,000 and accrued liabilities of $1,910,000 related to product sales. As of December 31, 2023, the Company had recorded accounts receivable allowances of approximately $492,000 and accrued liabilities of $2,309,000 related to product sales. An analysis of the change in reserves for discounts and allowances is summarized as follows (in thousands):
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