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PRODUCT REVENUES, NET, ACCOUNTS RECEIVABLE AND RESERVES FOR PRODUCT REVENUES
 9 Months Ended
Sep. 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

Net product revenues, which includes revenues associated with EXONDYS 51, AMONDYS 45 and VYONDYS 53 (collectively, the “PMO Products”) and ELEVIDYS consisted of the following:

 

 

 

For the Three Months Ended
September 30,

 

 

For the Nine Months Ended
September 30,

 

 

 

2023

 

 

2022

2023

 

 

2022

 

 

 

(in thousands)

 

PMO Products

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

198,069

 

 

$

188,346

 

 

$

602,415

 

 

$

548,355

 

Rest of World

 

 

42,145

 

 

 

19,428

 

 

 

108,282

 

 

 

59,481

 

Total PMO product revenues, net

 

$

240,214

 

 

$

207,774

 

 

$

710,697

 

 

$

607,836

 

ELEVIDYS

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

 

69,108

 

 

 

—

 

 

 

69,108

 

 

 

—

 

Total ELEVIDYS product revenues, net

 

$

69,108

 

 

$

—

 

 

$

69,108

 

 

$

—

 

Total product revenues, net

 

$

309,322

 

 

$

207,774

 

 

$

779,805

 

 

$

607,836

 

The Company considers there to be revenue concentration risks for regions where net product revenues exceed 10% of consolidated net product revenues. No individual rest of world country exceeded 10% of total net product revenues for the three and nine months ended September 30, 2023 and 2022. Three individual customers accounted for 40%, 23% and 9% of product revenues, net, for the three months ended September 30, 2023 and 45%, 29% and 8% for the nine months ended September 30, 2023. Three individual customers accounted for 48%, 35% and 7% of net product revenues for the three months ended September 30, 2022 and 49%, 34% and 7% of net product revenues for the nine months ended September 30, 2022. 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.

As of September 30, 2023 and December 31, 2022, the Company's accounts receivable were $318.9 million and $214.6 million, respectively, both of which were related to product sales receivable, net of discounts and allowances. As of September 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 100 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 29%, 25% and 12% of accounts receivable from product sales as of September 30, 2023 and 36%, 35% and 12% of accounts receivable from product sales as of December 31, 2022. As of September 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

 

 

18,191

 

 

 

94,025

 

 

 

11,251

 

 

 

52,500

 

 

 

175,967

 

Adjustments relating to prior year

 

 

110

 

 

 

(4,154

)

 

 

—

 

 

 

—

 

 

 

(4,044

)

Payments/credits

 

 

(9,386

)

 

 

(73,317

)

 

 

(10,586

)

 

 

(40,048

)

 

 

(133,337

)

Balance, as of September 30, 2023

 

$

9,332

 

 

$

84,047

 

 

$

4,008

 

 

$

35,897

 

 

$

133,284

 

 

 

 

 

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

 

 

8,756

 

 

 

80,956

 

 

 

9,508

 

 

 

28,809

 

 

 

128,029

 

Adjustments relating to prior year

 

 

—

 

 

 

(4,111

)

 

 

—

 

 

 

30

 

 

 

(4,081

)

Payments/credits

 

 

(9,193

)

 

 

(70,645

)

 

 

(8,930

)

 

 

(18,397

)

 

 

(107,165

)

Balance, as of September 30, 2022

 

$

362

 

 

$

66,706

 

 

$

3,376

 

 

$

16,805

 

 

$

87,249

 

 

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
September 30,
2023

 

 

As of
December 31,
2022

 

 

 

(in thousands)

 

Reduction to accounts receivable

 

$

47,606

 

 

$

25,914

 

Component of accrued expenses

 

 

85,678

 

 

 

68,784

 

Total reserves

 

$

133,284

 

 

$

94,698