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SEGMENT INFORMATION
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
The Company operates and is managed as one operating segment which derives revenue from activities related to the development and commercialization of innovative therapies for people with serious and life-threatening rare diseases and medical conditions.
The Company’s commercial organization is responsible for marketing our approved products worldwide. The Company’s R&D organization is responsible for research and discovery of new product candidates and supporting the development and registration efforts for potential new products. The Company’s technical operations group is responsible for the development of manufacturing processes, supplying clinical drug product, and the manufacturing and distribution of our commercial products. The Company is also supported by corporate staff functions.
The Company’s Chief Executive Officer as the CODM manages and allocates resources to the operations of the total company by assessing the overall level of resources available and how to best allocate them to support the Company’s long-term company-wide strategic goals. In making this decision, the CODM uses consolidated financial information for the purposes of evaluating performance, allocating resources, setting incentive compensation targets and planning and forecasting for future periods.
The key measure of segment profit or loss used by the CODM to allocate resources and assess the Company's performance is its consolidated Net Income, as reported on the Consolidated Statements of Income. The CODM's analysis includes a comparison to budgeted results. Segment assets provided to the CODM are consistent with those reported on the
Consolidated Balance Sheets with particular emphasis on the Company's available liquidity including cash, cash equivalents, investments, accounts receivable and inventory.
The following table includes information about segment revenue, significant segment expenses, and segment measure of profitability:
Twelve Months Ended December 31,
202420232022
Total revenues$2,853,915 $2,419,226 $2,096,039 
Less:
Cost of sales580,235 532,062 503,023 
R&D expenses
Research and early pipeline434,023 393,078 313,915 
Later-stage clinical programs27,581 62,604 119,015 
Marketed products285,580 291,091 216,676 
SG&A expenses
S&M expenses
476,739 488,442 450,349 
G&A expenses
532,286 403,964 372,894 
Other segment expense (income), net (1)
90,612 80,340 (21,394)
Net income$426,859 $167,645 $141,561 
(1)Other segment expense (income), net during the years ended December 31, 2024, 2023 and 2022 include Intangible asset amortization, Interest income and expense, Other expense, net and the Provision for income taxes. The years ended December 31, 2024 and 2022 also include Gain on sale of nonfinancial assets.
The following table presents Total Revenues and disaggregates Net Product Revenues by product.
Years Ended December 31,
202420232022
VIMIZIM$739,784 $701,053 $663,739 
VOXZOGO735,092 469,881 169,128 
NAGLAZYME479,584 420,292 443,794 
PALYNZIQ355,047 303,919 255,032 
ALDURAZYME183,887 131,248 128,422 
BRINEURA169,083 161,889 154,333 
KUVAN120,902 180,767 227,577 
ROCTAVIAN26,066 3,489 — 
Total net product revenues2,809,445 2,372,538 2,042,025 
Royalty and other revenues44,470 46,688 54,014 
Total revenues$2,853,915 $2,419,226 $2,096,039 
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 distributed, marketed and sold exclusively by Sanofi worldwide.
Years Ended December 31,
202420232022
United States$924,810 $771,314 $684,284 
Europe829,031 669,331 650,952 
Latin America378,084 332,437 266,801 
Rest of world493,633 468,208 311,566 
Total net product revenues marketed by the Company2,625,558 2,241,290 1,913,603 
ALDURAZYME net product revenues marketed by Sanofi183,887 131,248 128,422 
Total net product revenues$2,809,445 $2,372,538 $2,042,025 
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.
Years Ended December 31,
202420232022
Customer A13 %14 %16 %
Customer B12 %12 %12 %
Total25 %26 %28 %
Long-lived assets, which consist of net property, plant and equipment and ROU assets are summarized by geographic region in the following table.
December 31,
20242023
Long-lived assets by geography:
United States$755,069 $788,590 
Ireland308,123 306,542 
Rest of world13,600 17,075 
Total long-lived assets$1,076,792 $1,112,207 
Concentration Information
On a consolidated basis, two customers accounted for 20% and 11% of the Company’s December 31, 2024 accounts receivable balance, respectively, compared to December 31, 2023 when two customers accounted for 15% and 12% of the accounts receivable balance, respectively. As of December 31, 2024 and 2023, the accounts receivable balance for Sanofi included $96.8 million and $63.4 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, natural disasters 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.