Concentration of Credit Risk

9 Months Ended

Sep. 30, 2015

4. Concentration of Credit Risk

In December 2009, we entered into a license, development and commercialization agreement with Eli Lilly and Company (“Lilly”). In November 2009, we entered into a collaboration and license agreement with Novartis. The concentration of credit risk related to our collaborative partners is as follows:


	Percentage of Total				Percentage of Total
	Contract Revenues for the				Contract Revenues for the
	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Collaboration Partner A	61	%	96	%	76	%	91	%
Collaboration Partner B	39	%	4	%	24	%	9	%

Collaboration Partner A and Collaboration Partner B comprised in the aggregate 27% and 26% of the accounts receivable balance as of September 30, 2015 and December 31, 2014, respectively.

In November 2011, we began commercialization and distribution of JAKAFI to a number of specialty pharmacies. Our product revenues are concentrated in a number of specialty pharmacy customers. The concentration of credit risk related to our specialty pharmacy customers is as follows:


	Percentage of Total Net				Percentage of Total Net
	Product Revenues for the				Product Revenues for the
	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Customer A	29	%	29	%	28	%	29	%
Customer B	18	%	23	%	19	%	22	%
Customer C	13	%	10	%	13	%	10	%
Customer D	9	%	8	%	9	%	10	%

We are exposed to risks associated with extending credit to specialty pharmacy customers related to the sale of products. Customer A, Customer B, Customer C and Customer D comprised in the aggregate 51% and 54% of the accounts receivable balance as of September 30, 2015 and December 31, 2014, respectively.