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Revenue recognition
 9 Months Ended
Sep. 30, 2020
Revenue from Contract with Customer [Abstract]  
Revenue recognition

Net product sales

The Company views its operations and manages its business in one operating segment.

During the three months ended September 30, 2020 and 2019, net product sales in the United States were $38.5 million and $22.9 million, respectively, consisting solely of Emflaza, and net product sales not in the United States were $44.2 million and $48.5 million, respectively, consisting of Translarna, Tegsedi, and Waylivra. For the three months ended September 30, 2020 and 2019, the Company had a total of two and two distributors, respectively, that each accounted for over 10% of the Company’s net product sales.

During the nine months ended September 30, 2020 and 2019, net product sales in the United States were $102.1 million and $68.3 million, respectively, consisting solely of Emflaza, and net product sales not in the United States were $124.0 million and $141.6 million, respectively, consisting of Translarna, Tegsedi, and Waylivra. For the nine months ended September 30, 2020 and 2019, the Company had a total of two and two distributors, respectively, that each accounted for over 10% of the Company’s net product sales.

The Company’s contract liabilities balances as of September 30, 2020 and as of December 31, 2019 were $6.0 million and $11.7 million, respectively. The Company did not have any contract assets as of September 30, 2020 and as of December 31, 2019. During the three and nine month periods ended September 30, 2020, the Company recognized $2.0 million and $6.0 million of revenue, respectively, related to the amounts included in the contract liability balance at the beginning of the period. For the three and nine month periods ended September 30, 2019, the Company recognized $2.3 million and $2.3 million, respectively, relating to the contract liability balance at the beginning of the period. The Company has not made significant changes to the judgments made in applying ASC Topic 606 for the three and nine month periods ending September 30, 2020 and 2019.

Remaining performance obligations

Remaining performance obligations represent the transaction price for goods the Company has yet to provide. As of September 30, 2020 and December 31, 2019, the aggregate amount of the transaction price allocated to the remaining performance obligations relating to Translarna net product revenue was $6.0 million and $11.7 million, respectively. The Company expects to recognize revenue within the next one year, as the specific timing for satisfying the performance obligations is contingent upon a number of factors, including customers’ needs and schedules.

Collaboration and Royalty revenue

In November 2011, the Company and the SMA Foundation entered into the License Agreement with Roche. Under the terms of the License Agreement, Roche acquired an exclusive worldwide license to the Company’s SMA program.

The Company is eligible to receive additional payments from Roche if specified events are achieved with respect to each licensed product, including up to $135.0 million in research and development event milestones, up to $325.0 million in sales milestones upon achievement of specified sales events, and up to double digit royalties on worldwide annual net sales of a commercial product.

The SMA program currently has one approved product, Evrysdi™ (risdiplam), which was approved in August 2020 by the FDA for the treatment of SMA in adults and children two months and older. The first commercial sale of Evrysdi in the United States was made in August 2020. This event triggered a $20.0 million milestone payment to the Company from Roche.  In August 2020, the EMA accepted the MAA filed by Roche for Evrysdi for the treatment of SMA, which triggered a $15.0 million milestone payment to the Company from Roche.  As of September 30, 2020, the remaining potential research and development event milestones that can be received is $37.5 million, and the remaining potential sales milestones that can be received is $325.0 million.

For the three months ended September 30, 2020 and 2019, the Company recognized $35.0 million and $0.1 million of revenue, respectively, related to the licensing and collaboration agreement with Roche. For the nine months ended September 30, 2020 and 2019, the Company recognized revenue related to the licensing and collaboration agreement with Roche of $35.1 million and $0.1 million, respectively.

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In addition to research and development and sales milestones, the Company is eligible to receive double-digit royalties on worldwide annual net sales of a commercial product under the License Agreement. For the three and nine months ended September 30, 2020, the Company has recognized $0.7 million of royalty revenue related to Evrysdi.