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PRODUCT REVENUES, NET, ACCOUNTS RECEIVABLE AND RESERVES FOR PRODUCT REVENUES
12 Months Ended
Dec. 31, 2022
Receivables, Net, Current [Abstract]  
PRODUCT REVENUES, NET, ACCOUNTS RECEIVABLE AND RESERVES FOR PRODUCT REVENUES

7. PRODUCT REVENUES, NET, ACCOUNTS RECEIVABLE AND RESERVES FOR PRODUCT REVENUES

For the years ended December 31, 2022, 2021, and 2020, the Company recorded $843.8 million, $612.4 million and $455.9 million, respectively, of net product revenues. Three individual customers accounted for 48%, 33% and 7% of net product revenues for the year ended December 31, 2022, 48%, 39% and 10% for the year ended December 31, 2021 and 47%, 39% and 11% for the year ended December 31, 2020. The Company considers there to be revenue concentration risks for regions where net product revenues exceed 10% of consolidated net product revenues. The concentration of the Company’s net product revenues within a particular region may have a material adverse effect on the Company’s revenues and results of operations if sales in the respective regions experience difficulties. For the year ended December 31, 2022, net product revenues totaled $747.1 million and $96.7 million within the United States and the rest of the world, respectively, with no individual rest of world country or region exceeding 10% of total net product revenues. Net product revenues within the United States exceeded 90% of total net product revenues for each of the years ended December 31, 2021 and 2020, respectively.

As of December 31, 2022 and 2021, the Company's accounts receivable were $214.6 million and $153.0 million, respectively, both of which were related to product sales receivable, net of discounts and allowances. Three individual customers accounted for 36%, 35% and 12% of accounts receivable from product sales for the year ended December 31, 2022 and 41%, 41% and 10% for the year ended December 31, 2021. As of December 31, 2022, the Company believes that such customers are of high credit quality.

The following table summarizes an analysis of the change in reserves for discounts and allowances for the periods indicated:

 

 

 

Chargebacks

 

 

Rebates

 

 

Prompt Pay

 

 

Other Accruals

 

 

Total

 

 

 

(in thousands)

 

Balance, as of December 31, 2020

 

$

2,281

 

 

$

41,771

 

 

$

1,949

 

 

$

4,969

 

 

$

50,970

 

Provision

 

 

13,308

 

 

 

78,637

 

 

 

9,400

 

 

 

16,107

 

 

 

117,452

 

Payments/credits

 

 

(14,790

)

 

 

(59,902

)

 

 

(8,551

)

 

 

(14,713

)

 

 

(97,956

)

Balance, as of December 31, 2021

 

$

799

 

 

$

60,506

 

 

$

2,798

 

 

$

6,363

 

 

$

70,466

 

Provision

 

 

12,446

 

 

 

102,835

 

 

 

12,904

 

 

 

47,684

 

 

 

175,869

 

Payments/credits

 

 

(12,828

)

 

 

(95,848

)

 

 

(12,359

)

 

 

(30,602

)

 

 

(151,637

)

Balance, as of December 31, 2022

 

$

417

 

 

$

67,493

 

 

$

3,343

 

 

$

23,445

 

 

$

94,698

 

 

The following table summarizes the total reserves above included in the Company’s consolidated balance sheets for the periods indicated:

 

 

 

As of December 31,

 

 

 

2022

 

 

2021

 

 

 

(in thousands)

 

Reduction to accounts receivable

 

$

25,914

 

 

$

8,321

 

Component of accrued expenses

 

 

68,784

 

 

 

62,145

 

Total reserves

 

$

94,698

 

 

$

70,466