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

3 Months Ended

Mar. 31, 2024

Receivables, Net, Current [Abstract]

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

6. PRODUCT REVENUES, NET, ACCOUNTS RECEIVABLE, NET, 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 March 31,
	2024		2023
	(in thousands)
PMO Products
United States	$	189,667	$	200,451
Rest of World		35,881		31,044
Total PMO product revenues, net	$	225,548	$	231,495
ELEVIDYS
United States		133,936		—
Total ELEVIDYS product revenue, net	$	133,936	$	—
Total product revenues, net	$	359,484	$	231,495

For the three months ended March 31, 2024 and 2023, no individual country outside the U.S. exceeded 10% of total net product revenues.

The following table summarizes the Company's net product revenues, by customer, for those customers that exceeded 10% for the periods indicated:

	For the Three Months Ended March 31,
	2024			2023
Product revenues, net
Customer 1		36	%		49	%
Customer 2		20	%		32	%

As of March 31, 2024 and December 31, 2023, the Company's accounts receivable, net were $378.8 million and $400.3 million, respectively, both of which were related to product sales, net of discounts and allowances. As of March 31, 2024, 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 65 to 90 days. Outside of the U.S., the majority of the Company’s customers have payment terms ranging between 90 and 150 days. Please refer to Note 2, Summary of Significant Accounting Policies and Recent Accounting Pronouncements for discussion of the credit risk associated with accounts receivable, net.

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, 2023	$	27,486		$	98,194		$	3,831		$	35,261		$	164,772
Provision		20,466			35,951			4,381			18,965			79,763
Adjustments relating to prior periods		783			(2,532	)		—			—			(1,749	)
Payments/credits		(30,358	)		(36,623	)		(3,685	)		(16,220	)		(86,886	)
Balance, as of March 31, 2024	$	18,377		$	94,990		$	4,527		$	38,006		$	155,900

	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		2,827			30,488			3,572			14,567			51,454
Adjustments relating to prior periods		—			(2,162	)		—			—			(2,162	)
Payments/credits		(3,244	)		(28,025	)		(3,389	)		(14,040	)		(48,698	)
Balance, as of March 31, 2023	$	—		$	67,794		$	3,526		$	23,972		$	95,292

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 March 31, 2024		As of December 31, 2023
	(in thousands)
Reduction to accounts receivable	$	58,684	$	64,697
Component of accrued expenses		97,216		100,075
Total reserves	$	155,900	$	164,772