Certain Balance Sheet Items

9 Months Ended

Sep. 30, 2023

Balance Sheet Related Disclosures [Abstract]

Accounts receivable, net and contract assets consisted of the following (in thousands):


	September 30, 2023		December 31, 2022
Accounts receivable from product sales to partners	$	50,172	$	62,979
Accounts receivable from revenues under collaborative agreements	17,357		18,776
Accounts receivable from royalty payments	113,632		100,900
Accounts receivable from other product sales	38,758		6,229

Contract assets	3,338		44,102
Total accounts receivable and contract assets	223,257		232,986
Allowance for distribution fees and discounts	(5,932)		(1,914)
Total accounts receivable, net and contract assets	$	217,325	$	231,072

Inventories, net consisted of the following (in thousands):


	September 30, 2023		December 31, 2022
Raw materials	$	26,930	$	13,792
Work-in-process	37,573		40,361
Finished goods	64,418		45,970
Total inventories, net	$	128,921	$	100,123

Prepaid expenses and other assets consisted of the following (in thousands):


	September 30, 2023		December 31, 2022
Prepaid manufacturing expenses	$	47,527	$	51,694

Other prepaid expenses	7,258		4,647
Other assets	12,808		14,984
Total prepaid expenses and other assets	67,593		71,325
Less: Long-term portion	(18,115)		(26,301)
Total prepaid expenses and other assets, current	$	49,478	$	45,024

Prepaid manufacturing expenses include raw materials, slot reservation fees and other amounts paid to contract manufacturing organizations. Such amounts are reclassified to work-in-process inventory as materials are used or the contract manufacturing organization services are complete.

Property and equipment, net consisted of the following (in thousands):


	September 30, 2023		December 31, 2022
Research equipment	$	8,353	$	7,380
Manufacturing equipment	31,231		27,893
Computer and office equipment	9,117		7,855
Leasehold improvements	6,856		6,729
Subtotal	55,557		49,857
Accumulated depreciation and amortization	(18,091)		(14,756)
Subtotal	37,466		35,101
Right of use of assets	37,203		40,469
Property and equipment, net	$	74,669	$	75,570

Depreciation and amortization expense was approximately $2.7 million and $2.0 million, inclusive of ROU asset amortization of $1.4 million and $0.7 million for the three months ended September 30, 2023 and 2022, respectively.

Depreciation and amortization expense was approximately $8.2 million and $3.9 million inclusive of ROU asset amortization of $4.2 million and $1.7 million for the nine months ended September 30, 2023 and 2022, respectively.

Accrued expenses consisted of the following (in thousands):


	September 30, 2023		December 31, 2022

Accrued compensation and payroll taxes	$	13,995	$	19,939
Accrued outsourced manufacturing expenses	13,870		12,190
Income taxes payable	18,029		—
Product returns and sales allowance	36,458		30,261
Other accrued expenses	8,912		29,771
Lease liability	32,358		34,788
Total accrued expenses	123,622		126,949
Less long-term portion	(28,422)		(30,433)
Total accrued expenses, current	$	95,200	$	96,516

Expense associated with the accretion of the lease liabilities was approximately $0.6 million and $0.1 million for the three months ended September 30, 2023 and 2022, respectively and $1.9 million and $0.3 million for the nine months ended September 30, 2023 and 2022, respectively. Total lease expense for the three months ended September 30, 2023 and 2022 was $2.0 million and $0.9 million, respectively and $6.1 million and $2.0 million for the nine months ended September 30, 2023 and 2022, respectively.

Cash paid for amounts related to leases for the three months ended September 30, 2023 and 2022 was $1.6 million and $1.1 million, respectively and $5.0 million and $2.7 million for the nine months ended September 30, 2023 and 2022, respectively.