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Concentrations of Credit Risk

12 Months Ended

Dec. 31, 2019

Note 4. Concentrations 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”). In July 2019, we entered into a collaboration and license agreement with Zai Lab (Shanghai) Co., Ltd., a subsidiary of Zai Lab Limited (collectively, “Zai Lab”). The concentration of credit risk related to our collaborative partners is as follows:


	Percentage of Total Milestone and
	Contract Revenues for the
	Years Ended,
	December 31,
	2019		2018		2017
Collaboration Partner A	—	%	33	%	37	%
Collaboration Partner B	—	%	67	%	63	%
Collaboration Partner C	77	%	—	%	—	%
Collaboration Partner D	23	%	—	%	—	%

Collaboration Partners A, B, C and D comprised, in the aggregate, 30% and 42% of the accounts receivable balance as of December 31, 2019 and 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
	Product Revenues for the
	Years Ended,
	December 31,
	2019		2018		2017
Customer A	20	%	20	%	24	%
Customer B	13	%	14	%	15	%
Customer C	16	%	15	%	13	%
Customer D	11	%	11	%	8	%

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 the aggregate, 39% and 30% of the accounts receivable balance as of December 31, 2019 and 2018, respectively.

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