SUPPLEMENTAL BALANCE SHEET INFORMATION

9 Months Ended

Sep. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Inventory consisted of the following:


	September 30, 2021		December 31, 2020
Raw materials	$	75,328	$	76,673
Work-in-process	412,434		308,286
Finished goods	261,644		313,589
Total inventory	$	749,406	$	698,548

Inventory as of September 30, 2021 included $4.8 million of Voxzogo pre-launch manufacturing-related costs incurred during the third quarter of 2021 that are intended for the U.S. Voxzogo, which was granted marketing approval in the EU on August 27, 2021, is still a product candidate in other regions, including the U.S., for the treatment of achondroplasia in children, the most common form of disproportionate short stature in humans. The Company must receive marketing approval from the U.S. Food and Drug Administration (FDA) before the Voxzogo inventory can be sold commercially in the U.S. Starting in 2021, the Company believed that material uncertainties related to the ultimate regulatory approval of Voxzogo had been significantly reduced. A number of factors were taken into consideration, including the current status in the drug development process, pivotal clinical trial results for the underlying product candidate, results from meetings with the relevant regulatory authorities, historical experience, as well as potential impediments to the approval process such as product safety or efficacy, as well as commercialization and marketplace trends.

See Note 3 – Summary of Significant Accounting Policies included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 for additional information related to the Company’s policies on inventory produced prior to regulatory approval.

Property, Plant and Equipment, Net consisted of the following:


	September 30, 2021		December 31, 2020
Property, plant and equipment, gross	$	1,724,702	$	1,668,066
Accumulated depreciation	(699,915)		(635,595)
Total property, plant and equipment, net	$	1,024,787	$	1,032,471

Depreciation expense, net of amounts capitalized into inventory, for the three and nine months ended September 30, 2021 was $11.4 million and $35.7 million, respectively. Depreciation expense, net of amounts capitalized into inventory, for the three and nine months ended September 30, 2020 was $11.1 million and $31.1 million, respectively.

Intangible Assets, Net consisted of the following:


	September 30, 2021		December 31, 2020
Finite-lived intangible assets	$	661,781	$	644,087
Less: Accumulated amortization	(273,294)		(226,816)
Net carrying value	$	388,487	$	417,271

Accounts Payable and Accrued Liabilities consisted of the following:


	September 30, 2021		December 31, 2020
Accounts payable and accrued operating expenses	$	203,321	$	191,429
Accrued compensation expense	158,130		165,023
Accrued rebates payable	68,329		65,526
Accrued royalties payable	14,512		17,155
Lease liabilities	9,659		11,754
Forward foreign currency exchange contracts	5,323		17,798
Value added taxes payable	1,412		9,562
Accrued income taxes	564		9,661
Other	5,461		4,640
Total accounts payable and accrued liabilities	$	466,711	$	492,548