XML 46 R36.htm IDEA: XBRL DOCUMENT v3.23.3
Collaboration, Licensing and Other Arrangements (Tables)
9 Months Ended
Sep. 30, 2023
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]  
Schedule of Revenue from Collaboration and Services

Revenue from collaborations and services were as follows (in thousands):

 

 

Three Months
Ended September 30,

 

 

Nine Months
Ended September 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

UT CSA Agreement (1)

 

$

12,800

 

 

$

9,916

 

 

$

34,897

 

 

$

15,795

 

UT License Agreement (2)

 

 

271

 

 

 

393

 

 

 

698

 

 

 

1,949

 

Cipla License and Distribution Agreement

 

 

37

 

 

 

37

 

 

 

110

 

 

 

110

 

Vertice Pharma Co-Promotion Agreement

 

 

 

 

 

 

 

 

 

 

 

325

 

Other

 

 

 

 

 

 

 

 

 

 

 

201

 

Total revenue from collaborations and services

 

$

13,108

 

 

$

10,346

 

 

$

35,705

 

 

$

18,380

 

_________________________

(1)
Amount consists of revenue recognized for Manufacturing Services and sales of product to UT for the periods presented.
(2)
Amounts consist of revenue recognized for Next-Gen R&D Services and R&D Services and License for the periods presented.
Schedule of Effect of Modification on Transaction Price The Company determined that the capital and continuous improvements should be combined with the manufacturing services performance obligation and the alternative

manufacturing processes should be combined with the Next-Gen R&D Services. The total revised anticipated cash flows of $722.3 million from the transaction was allocated to the three distinct performance obligations as follows (dollars in millions):

 

 

Anticipated

 

 

 

 

 

 

 

 

 

 

Cash Flow

 

 

Revenue Allocation

 

 

Recognition Method

 

Progress Measure

 

Revenue
Recognition

 

Total anticipated cash flow(1)

 

$

722.3

 

 

 

 

 

 

 

 

 

 

 

Distinct Performance Obligation

 

 

 

 

 

 

 

 

 

 

 

 

 

R&D Services and License

 

 

 

 

$

 

 

Over time

 

Ratably

 

Aug 2021 - Oct 2021

 

Next-Gen R&D Services

 

 

 

 

$

10.0

 

 

Over time

 

Input

 

% of completion of costs

 

Manufacturing Services and
   Product Sales
(2)

 

 

 

 

$

712.3

 

 

Point in time

 

 

 

Transfer of control

 

__________________________

(1)
The total anticipated cash flow includes a transaction price of $120.0 million for the contractual obligations under the CSA for the Manufacturing Services and the Next-Gen R&D Services performance obligations and $602.3 million for future supply of Tyvaso DPI over the remaining term of the CSA.
(2)
The Manufacturing Services performance obligation will be recognized as control of manufactured products is transferred to UT. The modification did not result in a cumulative catch-up adjustment as a result of the revenue being deferred for the performance obligations that were affected by the modification. The allocation of the transaction price for the Manufacturing Services includes a material right related to the Company’s estimated production of product in the amount of $220.8 million. The Company will sell product to UT under individual purchase orders, which represent distinct performance obligations. The ultimate cash flows may vary as manufacturing purchase orders are received.
United Therapeutics Corporation  
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]  
Schedule of Revenue from Collaboration and Services

Total revenue from UT was as follows (in thousands):

 

 

Three Months
Ended September 30,

 

 

Nine Months
Ended September 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

UT Revenue

 

 

 

 

 

 

 

 

 

 

 

 

UT CSA Agreement

 

$

12,800

 

 

$

9,916

 

 

$

34,897

 

 

$

15,795

 

UT License Agreement

 

 

271

 

 

 

393

 

 

 

698

 

 

 

1,949

 

Royalties — Collaborations (1)

 

 

20,218

 

 

 

6,220

 

 

 

50,951

 

 

 

6,524

 

Total revenue from UT

 

$

33,289

 

 

$

16,529

 

 

$

86,546

 

 

$

24,268

 

_________________________

(1)
Amount consists of royalties associated with the UT License Agreement. The contract assets related to the royalties is included in prepaid expense and other current assets in the condensed consolidated balance sheets.