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PRODUCT REVENUES, NET, ACCOUNTS RECEIVABLE AND RESERVES FOR PRODUCT REVENUES
6 Months Ended
Jun. 30, 2023
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 three months ended June 30, 2023 and 2022, the Company recorded $239.0 million and $211.2 million, respectively, of product revenues, net. For the six months ended June 30, 2023 and 2022, the Company recorded $470.5 and $400.1 million, respectively, of products revenues, net. Three individual customers accounted for 47%, 33% and 7% of product revenues, net, for the three months ended June 30, 2023 and 48%, 32% and 7% for the six months ended June 30, 2023. Three individual customers accounted for 50%, 32% and 7% of net product revenues for the three months ended June 30, 2022 and 49%, 34% and 7% of net product revenues for the six months ended June 30, 2022. 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 country 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 three months ended June 30, 2023, net product revenues totaled $203.9 million and $35.1 million within the United States and the rest of the world, respectively. For the six months ended June 30, 2023, net product revenues totaled $404.4 million and $66.1 million within the United States and the rest of world, respectively. For the three months ended June 30, 2022, net product revenues totaled $187.6 million and $23.6 million within the United States and the rest of the world, respectively. For the six months ended June 30, 2022, net product revenues totaled $360.0 million and $40.1 million within the United States and the rest of the world, respectively. No individual rest of world country exceeded 10% of total net product revenues for the three and six months ended June 30, 2023 and 2022.

As of June 30, 2023 and December 31, 2022, the Company's accounts receivable were $236.8 million and $214.6 million, respectively, both of which were primarily related to product sales receivable, net of discounts and allowances. As of June 30, 2023, the majority of the Company’s accounts receivable arose from product sales in the U.S. and all customers have standard payment terms that generally require payment within 60 to 91 days. Outside of the U.S., the majority of the Company’s customers have payment terms ranging between 60 and 150 days. Three individual customers accounted for 35%, 34% and 12% of accounts receivable from product sales as of June 30, 2023 and 36%, 35% and 12% of accounts receivable from product sales as of December 31, 2022. As of June 30, 2023, the Company believes that such customers are of high credit quality and has not experienced any material credit losses related to such customers.

 

 

The following tables summarize an analysis of the change in reserves for discounts and allowances for each of the periods indicated:

 

 

 

Chargebacks

 

 

Rebates

 

 

Prompt Pay

 

 

 

Other Accruals

 

 

Total

 

 

 

(in thousands)

 

Balance, as of December 31, 2022

 

$

417

 

 

$

67,493

 

 

$

3,343

 

 

 

$

23,445

 

 

$

94,698

 

Provision

 

 

6,287

 

 

 

60,824

 

 

 

7,228

 

 

 

 

32,220

 

 

 

106,559

 

Adjustments relating to prior years

 

 

 

 

 

(3,437

)

 

 

 

 

 

 

 

 

 

(3,437

)

Payments/credits

 

 

(6,434

)

 

 

(45,592

)

 

 

(6,976

)

 

 

 

(24,820

)

 

 

(83,822

)

Balance, as of June 30, 2023

 

$

270

 

 

$

79,288

 

 

$

3,595

 

 

 

$

30,845

 

 

$

113,998

 

 

 

 

 

Chargebacks

 

 

Rebates

 

 

Prompt Pay

 

 

 

Other Accruals

 

 

Total

 

 

 

(in thousands)

 

Balance, as of December 31, 2021

 

$

799

 

 

$

60,506

 

 

$

2,798

 

 

 

$

6,363

 

 

$

70,466

 

Provision

 

 

5,642

 

 

 

52,589

 

 

 

6,192

 

 

 

 

19,386

 

 

 

83,809

 

Adjustments relating to prior years

 

 

 

 

 

(2,228

)

 

 

 

 

 

 

30

 

 

 

(2,198

)

Payments/credits

 

 

(6,232

)

 

 

(43,293

)

 

 

(5,639

)

 

 

 

(11,460

)

 

 

(66,624

)

Balance, as of June 30, 2022

 

$

209

 

 

$

67,574

 

 

$

3,351

 

 

 

$

14,319

 

 

$

85,453

 

 

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

 

 

 

As of
June 30,
2023

 

 

As of
December 31,
2022

 

 

 

(in thousands)

 

Reduction to accounts receivable

 

$

33,574

 

 

$

25,914

 

Component of accrued expenses

 

 

80,424

 

 

 

68,784

 

Total reserves

 

$

113,998

 

 

$

94,698