XML 30 R12.htm IDEA: XBRL DOCUMENT v3.25.0.1
Revenues
 12 Months Ended
Jan. 03, 2025
Revenue from Contract with Customer [Abstract]  
REVENUES REVENUES
Revenues consisted of the following (in thousands):
 Year Ended December 31,
 202420232022
Product revenues:
Gross product revenues$2,518,246 $2,272,533 $1,951,169 
Discounts and allowances(708,851)(643,654)(549,926)
Net product revenues1,809,395 1,628,879 1,401,243 
Collaboration revenues:
License revenues349,244 178,635 162,056 
Collaboration services revenues10,062 22,694 47,763 
Total collaboration revenues359,306 201,329 209,819 
Total revenues$2,168,701 $1,830,208 $1,611,062 
Net product revenues and license revenues are recorded in accordance with Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers (Topic 606). License revenues include the recognition of the portion of milestone payments allocated to the transfer of intellectual property licenses for which it had become probable in the current period that the milestone would be achieved and a significant reversal of revenues would not occur, as well as royalty revenues and our share of profits under our collaboration agreement with Genentech. Collaboration services revenues are recorded in accordance with ASC Topic 808, Collaborative Arrangements. Collaboration services revenues include the recognition of deferred revenues for the portion of upfront and milestone payments allocated to our research and development services performance obligations, development cost reimbursements earned under our collaboration agreements, product supply revenues, net of product supply costs and the royalties we paid on sales of products containing cabozantinib by our collaboration partners.
Net product revenues by product were as follows (in thousands):
Year Ended December 31,
202420232022
CABOMETYX$1,798,237 $1,614,942 $1,375,909 
COMETRIQ11,158 13,937 25,334 
Net product revenues$1,809,395 $1,628,879 $1,401,243 
The percentage of total revenues by customer who individually accounted for 10% or more of our total revenues were as follows:
 
Year Ended December 31,
 
202420232022
Affiliates of Cencora, Inc. (formerly AmerisourceBergen Corporation)18 %17 %18 %
Affiliates of CVS Health Corporation17 %17 %17 %
Affiliates of McKesson Corporation16 %17 %17 %
Ipsen Pharma SAS15 %8 %10 %
Accredo Health, Incorporated11 %12 %10 %
Affiliates of Optum Specialty Pharmacy9 %10 %10 %
The percentage of trade receivables by customer who individually accounted for 10% or more of our trade receivables were as follows:
 
December 31,
 
20242023
Affiliates of McKesson Corporation23 %21 %
Affiliates of CVS Health Corporation20 %20 %
Ipsen Pharma SAS18 %19 %
Affiliates of Cencora, Inc. (formerly AmerisourceBergen Corporation)17 %17 %
Cardinal Health, Inc.10 %11 %
Total revenues by geographic region were as follows (in thousands):
Year Ended December 31,
202420232022
U.S.$1,822,992 $1,645,749 $1,413,743 
Europe318,633 144,969 168,592 
Japan27,076 39,490 28,727 
Total revenues
$2,168,701 $1,830,208 $1,611,062 
Total revenues include net product revenues attributed to geographic regions based on ship-to location and license and collaboration services revenues attributed to geographic regions based on the location of our collaboration partners’ headquarters.
Product Sales Discounts and Allowances
The activities and ending reserve balances for each significant category of discounts and allowances (which constitute variable consideration) were as follows (in thousands):
Chargebacks, Discounts for Prompt Payment and Other
Other Customer Credits/Fees and Co-pay Assistance
RebatesTotal
Balance at December 31, 2022
$26,881 $14,924 $35,426 $77,231 
Provision related to sales made in:
Current period419,975 56,349 170,788 647,112 
Prior periods295 (1,222)(2,531)(3,458)
Payments and customer credits issued(421,930)(50,330)(163,785)(636,045)
Balance at December 31, 2023
25,221 19,721 39,898 84,840 
Provision related to sales made in:
Current period470,103 63,354 179,297 712,754 
Prior periods(891)(2,044)(968)(3,903)
Payments and customer credits issued(469,166)(56,086)(180,796)(706,048)
Balance at December 31, 2024
$25,267 $24,945 $37,431 $87,643 
The allowance for chargebacks, discounts for prompt payment and other are recorded as a reduction of trade receivables, net, and the remaining reserves are recorded as rebates and fees due to customers in the accompanying Consolidated Balance Sheets.
Contract Assets and Liabilities
We receive payments from our collaboration partners based on billing schedules established in each contract. Amounts are recorded as accounts receivable when our right to consideration is unconditional. We may also recognize revenue in advance of the contractual billing schedule and such amounts are recorded as a contract asset when recognized. We may be required to defer recognition of revenue for upfront and milestone payments until we perform our obligations under these arrangements, and such amounts are recorded as deferred revenue upon receipt or when due. For those contracts that have multiple performance obligations, contract assets and liabilities are reported on a net basis at the contract level. Contract assets are primarily related to Ipsen Pharma SAS (Ipsen) and contract liabilities are primarily related to deferred revenues from Takeda Pharmaceutical Company Limited (Takeda).
Contract assets and liabilities were as follows (in thousands):
 
December 31,
 
20242023
Contract assets(1)
$369 $1,321 
Contract liabilities:
Current portion(2)
$2,739 $5,406 
Non-current portion(3)
3,392 5,524 
Total contract liabilities$6,131 $10,930 
____________________
(1) Presented in right-of-use assets and other non-current assets in the accompanying Consolidated Balance Sheets.
(2) Presented in other current liabilities in the accompanying Consolidated Balance Sheets.
(3) Presented in other non-current liabilities in the accompanying Consolidated Balance Sheets.
During the years ended December 31, 2024, 2023 and 2022, we recognized $6.0 million, $6.9 million and $8.1 million, respectively, in revenues that were included in the beginning deferred revenues balance for those years.
During the years ended December 31, 2024, 2023 and 2022, we recognized $351.9 million, $179.7 million and $161.6 million, respectively, in revenues for performance obligations satisfied in previous periods. Such revenues were primarily related to the recognition of license revenues for the achievement of milestones and royalty payments allocated to our license performance obligations for our collaborations with Ipsen, Takeda, Daiichi Sankyo and Genentech.
As of December 31, 2024, $40.5 million of the combined transaction prices for our Ipsen and Takeda collaborations were allocated to research and development services performance obligations that had not yet been satisfied. See “Note 4. Collaboration Agreements and Business Development Activities — Cabozantinib Commercial Collaborations — Performance Obligations and Transaction Prices for our Ipsen and Takeda Collaborations” for additional information about the expected timing to satisfy these performance obligations.