REVENUE, CREDIT CONCENTRATIONS AND GEOGRAPHIC INFORMATION

9 Months Ended

Sep. 30, 2023

Concentration Risk And Geographic Information [Abstract]

REVENUE, CREDIT CONCENTRATIONS AND GEOGRAPHIC INFORMATION

The Company operates in one business segment, which primarily focuses on the development and commercialization of innovative therapies for people with serious and life-threatening rare diseases and medical conditions.

The following table disaggregates total Net Product Revenues by product.


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Enzyme product revenues:
VIMIZIM	$	158,869	$	155,470	$	525,453	$	511,735
NAGLAZYME	108,916		99,506		322,040		343,320
PALYNZIQ	78,885		66,206		216,105		182,734
BRINEURA	41,042		37,793		118,244		111,691
ALDURAZYME	13,812		29,046		88,533		90,755

Total enzyme product revenues	401,524		388,021		1,270,375		1,240,235

VOXZOGO	122,973		48,289		324,146		102,321
KUVAN	42,947		57,038		144,047		173,977
ROCTAVIAN	822		—		822		—
Total net product revenues	568,266		493,348		1,739,390		1,516,533
Royalty and other revenues	13,063		11,996		33,629		41,968
Total revenues	$	581,329	$	505,344	$	1,773,019	$	1,558,501

The Company considers there to be revenue concentration risks for regions where Net Product Revenues exceed 10% of consolidated Net Product Revenues. The concentration of the Company’s Net Product Revenues within the regions below may have a material adverse effect on the Company’s revenues and results of operations if sales in the respective regions experience difficulties. The table below disaggregates total Net Product Revenues by geographic region, which is based on patient location for Company's commercial products sold directly by the Company, except for ALDURAZYME, which is marketed and sold exclusively by Sanofi worldwide.


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
United States	$	194,745	$	176,552	$	553,184	$	497,205
Europe	168,784		162,583		512,910		480,645
Latin America	81,524		60,791		224,716		213,246

Rest of world	109,401		64,376		360,047		234,682
Total net product revenues marketed by the Company	$	554,454	$	464,302	$	1,650,857	$	1,425,778
ALDURAZYME net product revenues marketed by Sanofi	13,812		29,046		88,533		90,755
Total net product revenues	$	568,266	$	493,348	$	1,739,390	$	1,516,533

The following table illustrates the percentage of the Company’s total Net Product Revenues attributed to the Company’s largest customers for the periods presented.


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Customer A	15	%	15	%	15	%	16	%
Customer B	13	%	14	%	12	%	12	%
Customer C	10	%	10	%	10	%	9	%

Total	38	%	39	%	37	%	37	%

On a consolidated basis, two customers accounted for 16% and 11% of the Company’s September 30, 2023 accounts receivable balance, respectively, compared to December 31, 2022, when two customers accounted for 22% and 15% of the accounts receivable balance, respectively. As of September 30, 2023, and December 31, 2022, the accounts receivable balance for Sanofi included $54.8 million and $68.8 million, respectively, of unbilled accounts receivable, which becomes payable to the Company when the product is sold through by Sanofi. The Company does not require collateral from its customers, but does perform periodic credit evaluations of its customers’ financial condition and requires prepayments in certain circumstances.

The Company is mindful that conditions in the current macroeconomic environment, such as inflation, changes in interest and foreign currency exchange rates, banking crises, natural disasters, the continuing effects of the COVID-19 pandemic, and supply chain disruptions, could affect the Company’s ability to achieve its goals. In addition, the Company sells its products in countries that face economic volatility and weakness. Although the Company has historically collected receivables from customers in certain countries, sustained weakness or further deterioration of the local economies and currencies may cause customers in those countries to delay payment or be unable to pay for the Company’s products. The Company believes that the allowances for doubtful accounts related to these countries, if any, are adequate based on its analysis of the specific business circumstances and expectations of collection for each of the underlying accounts in these countries. The Company will continue to monitor these conditions and will attempt to adjust its business processes, as appropriate, to mitigate macroeconomic risks to its business.