Concentration of credit risk

6 Months Ended

Jun. 30, 2019

Concentration of credit risk

5.     Concentration of credit risk

In December 2009, we entered into a license, development and commercialization agreement with Lilly. In November 2009, we entered into a collaboration and license agreement with Novartis. In December 2018, we entered into a research collaboration and licensing agreement with Innovent Biologics, Inc. (“Innovent”). The concentration of credit risk related to our collaborative partners is as follows:

	Percentage of Total				Percentage of Total
	Milestone and Contract Revenues for the				Milestone and Contract Revenues for the
	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2019		2018		2019		2018
Collaboration Partner A	—	%	—	%	—	%	—	%
Collaboration Partner B	—	%	100	%	—	%	100	%
Collaboration Partner C	100	%	—	%	100	%	—	%

Collaboration Partners A, B and C comprised, in aggregate, 27% and 42% of the accounts receivable balance as of June 30, 2019 and December 31, 2018, respectively.

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

	Percentage of Total Net				Percentage of Total Net
	Product Revenues for the				Product Revenues for the
	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2019		2018		2019		2018
Customer A	20	%	21	%	19	%	21	%
Customer B	13	%	15	%	14	%	14	%
Customer C	16	%	14	%	16	%	14	%
Customer D	11	%	12	%	12	%	11	%

We are exposed to risks associated with extending credit to customers related to the sale of products. Customers A, B, C and D comprised, in aggregate, 36% and 30% of the accounts receivable balance as of June 30, 2019 and December 31, 2018, respectively.

The concentration of credit risk relating to ICLUSIG product revenues or accounts receivable is not significant.