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Revenue from Contracts with Customers
 6 Months Ended
Jun. 30, 2021
Revenue From Contract With Customer [Abstract]  
Revenue from Contracts with Customers

3. REVENUE FROM CONTRACTS WITH CUSTOMERS

Under FASB Accounting Standards Codification 606, Revenue from Contracts with Customers (“Topic 606”), the Company recognizes revenues when its customer obtains control of promised goods or services, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. The Company recognizes revenues following the five-step model prescribed under Topic 606: (i) identify contract(s) with a customer; (ii) identify the performance obligation(s) in the contract(s); (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligation(s) in the contract(s); and (v) recognize revenues when (or as) the Company satisfies the performance obligation(s).

 

Product Sales, Net

The Company’s product sales, net consist of sales of VIVITROL and ARISTADA (together with ARISTADA INITIO) in the U.S., primarily to wholesalers, specialty distributors and specialty pharmacies. Product sales, net are recognized when the customer obtains control of the product, which is when the product has been received by the customer.

During the three and six months ended June 30, 2021 and 2020, the Company recorded product sales, net, as follows:

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

(In thousands)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

VIVITROL

 

$

88,417

 

 

$

71,646

 

 

$

162,951

 

 

$

150,415

 

ARISTADA and ARISTADA INITIO

 

 

72,391

 

 

 

58,769

 

 

 

127,820

 

 

 

109,726

 

Total product sales, net

 

$

160,808

 

 

$

130,415

 

 

$

290,771

 

 

$

260,141

 

 

Manufacturing and Royalty Revenues

During the three and six months ended June 30, 2021 and 2020, the Company recorded manufacturing and royalty revenues as follows:

 

 

 

Three Months Ended June 30, 2021

 

 

Six Months Ended June 30, 2021

 

(In thousands)

 

Manufacturing Revenue

 

 

Royalty Revenue

 

 

Total

 

 

Manufacturing Revenue

 

 

Royalty Revenue

 

 

Total

 

INVEGA SUSTENNA/XEPLION & INVEGA TRINZA/TREVICTA

 

$

—

 

 

$

81,072

 

 

$

81,072

 

 

$

—

 

 

$

142,642

 

 

$

142,642

 

VUMERITY

 

 

6,724

 

 

 

13,624

 

 

 

20,348

 

 

 

9,172

 

 

 

24,616

 

 

 

33,788

 

RISPERDAL CONSTA

 

 

12,003

 

 

 

2,448

 

 

 

14,451

 

 

 

22,686

 

 

 

5,927

 

 

 

28,613

 

AMPYRA/FAMPYRA

 

 

7,549

 

 

 

5,767

 

 

 

13,316

 

 

 

15,627

 

 

 

12,361

 

 

 

27,988

 

Other

 

 

3,017

 

 

 

10,090

 

 

 

13,107

 

 

 

6,893

 

 

 

22,217

 

 

 

29,110

 

 

 

$

29,293

 

 

$

113,001

 

 

$

142,294

 

 

$

54,378

 

 

$

207,763

 

 

$

262,141

 

 

 

 

 

Three Months Ended June 30, 2020

 

 

Six Months Ended June 30, 2020

 

(In thousands)

 

Manufacturing Revenue

 

 

Royalty Revenue

 

 

Total

 

 

Manufacturing Revenue

 

 

Royalty Revenue

 

 

Total

 

INVEGA SUSTENNA/XEPLION & INVEGA TRINZA/TREVICTA

 

$

—

 

 

$

69,385

 

 

$

69,385

 

 

$

—

 

 

$

124,312

 

 

$

124,312

 

VUMERITY

 

 

1,305

 

 

 

1,289

 

 

 

2,594

 

 

 

2,632

 

 

 

1,654

 

 

 

4,286

 

RISPERDAL CONSTA

 

 

10,193

 

 

 

3,536

 

 

 

13,729

 

 

 

33,776

 

 

 

7,269

 

 

 

41,045

 

AMPYRA/FAMPYRA

 

 

7,154

 

 

 

5,354

 

 

 

12,508

 

 

 

14,976

 

 

 

12,501

 

 

 

27,477

 

Other

 

 

6,689

 

 

 

11,600

 

 

 

18,289

 

 

 

14,168

 

 

 

21,468

 

 

 

35,636

 

 

 

$

25,341

 

 

$

91,164

 

 

$

116,505

 

 

$

65,552

 

 

$

167,204

 

 

$

232,756

 

Contract assets include unbilled amounts under certain of the Company’s contracts with customers where revenue is recognized over time. Total contract assets at June 30, 2021 included $8.8 million of assets that were classified as “Current assets” in the accompanying condensed consolidated balance sheets, as they related to manufacturing processes that are completed in ten days to eight weeks, and $5.0 million that was classified as “Other assets” in the accompanying condensed consolidated balance sheets, as it consisted of consideration from the Company’s collaboration with Biogen related to VUMERITY, which the Company expects to receive within the next two years.

Total contract assets at June 30, 2021 were as follows:

 

(In thousands)

 

Contract Assets

 

Contract assets at December 31, 2020

 

$

19,401

 

Additions

 

 

18,152

 

Transferred to receivables, net

 

 

(23,760

)

Contract assets at June 30, 2021

 

$

13,793

 

 

Contract Liabilities

 

Contract liabilities consist of contractual obligations related to deferred revenue.

Total contract liabilities at June 30, 2021 were as follows:

 

(In thousands)

 

Contract Liabilities

 

Contract liabilities at December 31, 2020

 

$

23,909

 

Additions

 

 

—

 

Amounts recognized into revenue

 

 

(3,108

)

Contract liabilities at June 30, 2021

 

$

20,801