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Revenue from Contracts with Customers | 6 Months Ended
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Jun. 30, 2024
Revenue from Contract with Customer [Abstract] |
Revenue from Contracts with Customers | 4. REVENUE FROM CONTRACTS WITH CUSTOMERS Product Sales, Net During the three and six months ended June 30, 2024 and 2023, the Company recorded product sales, net, as follows:
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
(In thousands) |  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
VIVITROL |  | $ | 111,873 |  |  | $ | 102,071 |  |  | $ | 209,532 |  |  | $ | 198,730 |
ARISTADA and ARISTADA INITIO |  |  | 86,049 |  |  |  | 82,409 |  |  |  | 164,919 |  |  |  | 162,486 |
LYBALVI |  |  | 71,351 |  |  |  | 46,997 |  |  |  | 128,358 |  |  |  | 84,988 |
Total product sales, net |  | $ | 269,273 |  |  | $ | 231,477 |  |  | $ | 502,809 |  |  | $ | 446,204 |
Manufacturing and Royalty Revenues During the three and six months ended June 30, 2024 and 2023, the Company recorded manufacturing and royalty revenues from its collaboration arrangements as follows:
|  | Three Months Ended June 30, 2024 |  |  | Six Months Ended June 30, 2024 |
(In thousands) |  | Manufacturing Revenue |  |  | Royalty Revenue |  |  | Total |  |  | Manufacturing Revenue |  |  | Royalty Revenue |  |  | Total |
Long-acting INVEGA products(1) |  | $ | — |  |  | $ | 78,739 |  |  | $ | 78,739 |  |  | $ | — |  |  | $ | 141,412 |  |  | $ | 141,412 |
VUMERITY |  |  | 9,863 |  |  |  | 25,371 |  |  |  | 35,234 |  |  |  | 21,987 |  |  |  | 44,501 |  |  |  | 66,488 |
Other |  |  | 10,417 |  |  |  | 5,468 |  |  |  | 15,885 |  |  |  | 28,323 |  |  |  | 10,468 |  |  |  | 38,791 |
|  | $ | 20,280 |  |  | $ | 109,578 |  |  | $ | 129,858 |  |  | $ | 50,310 |  |  | $ | 196,381 |  |  | $ | 246,691 |
|  | Three Months Ended June 30, 2023 |  |  | Six Months Ended June 30, 2023 |
(In thousands) |  | Manufacturing Revenue |  |  | Royalty Revenue |  |  | Total |  |  | Manufacturing Revenue |  |  | Royalty Revenue |  |  | Total |
Long-acting INVEGA products(1) |  | $ | — |  |  | $ | 321,239 |  |  | $ | 321,239 |  |  | $ | — |  |  | $ | 334,801 |  |  | $ | 334,801 |
VUMERITY |  |  | 10,369 |  |  |  | 21,926 |  |  |  | 32,295 |  |  |  | 23,018 |  |  |  | 38,151 |  |  |  | 61,169 |
Other |  |  | 21,529 |  |  |  | 10,850 |  |  |  | 32,379 |  |  |  | 47,320 |  |  |  | 15,485 |  |  |  | 62,805 |
|  | $ | 31,898 |  |  | $ | 354,015 |  |  | $ | 385,913 |  |  | $ | 70,338 |  |  | $ | 388,437 |  |  | $ | 458,775 |
(1) “long-acting INVEGA products”: INVEGA SUSTENNA/XEPLION (paliperidone palmitate), INVEGA TRINZA/TREVICTA (paliperidone palmitate) and INVEGA HAFYERA/BYANNLI (paliperidone palmitate). In November 2021, the Company received notice of partial termination of an exclusive license agreement with Janssen Pharmaceutica N.V., a subsidiary of Johnson & Johnson (“Janssen Pharmaceutica”). Under this license agreement, the Company provided Janssen Pharmaceutica with rights to, and know-how, training and technical assistance in respect of, the Company’s small particle pharmaceutical compound technology, known as NanoCrystal technology, which was used to develop the long-acting INVEGA products. When the partial termination became effective in February 2022, Janssen Pharmaceutica ceased paying royalties related to sales of INVEGA SUSTENNA, INVEGA TRINZA and INVEGA HAFYERA. Accordingly, the Company ceased recognizing royalty revenue related to sales of these products in February 2022. In April 2022, the Company commenced binding arbitration proceedings related to, among other things, Janssen Pharmaceutica’s partial termination of this license agreement and Janssen Pharmaceutica’s royalty and other obligations under the agreement. In May 2023, the arbitral tribunal (the “Tribunal”) in the arbitration proceedings issued a final award (the “Final Award”) which concluded the arbitration proceedings. The Final Award provided, among other things, that the Company was due back royalties and late-payment interest related to 2022 U.S. net sales of the long-acting INVEGA products and is entitled to 2023 and future royalty revenues from Janssen Pharmaceutica related to net sales of INVEGA SUSTENNA through August 20, 2024, INVEGA TRINZA through the second quarter of 2030 (but no later than May 2030 when the license agreement expires) and INVEGA HAFYERA through May 2030 (when the license agreement expires). Following issuance of the Final Award and receipt in June 2023 of back royalties of $195.4 million, inclusive of $8.1 million in late-payment interest, the Company recognized such back royalties and resumed recognizing royalty revenue related to ongoing U.S. sales of the long-acting INVEGA products. Contract Assets Contract assets include unbilled amounts related to the manufacture of a product that, once complete, will be sold under certain of the Company’s manufacturing contracts. The amounts included in the contract assets table below are classified as “Current assets” in the accompanying condensed consolidated balance sheets, as they relate to manufacturing processes that are completed in ten days to eight weeks. Total contract assets at June 30, 2024 were as follows:
(In thousands) |  | Contract Assets |
Contract assets at December 31, 2023 |  | $ | 706 |
Additions |  |  | 4,721 |
Transferred to receivables, net |  |  | (1,935 | )
Contract assets at June 30, 2024 |  | $ | 3,492 |
Contract Liabilities Contract liabilities consist of contractual obligations related to deferred revenue. At June 30, 2024 and December 31, 2023, $3.3 million and $2.7 million of the contract liabilities, respectively, were classified as “Contract liabilities–short-term” in the accompanying condensed consolidated balance sheets and no ne and $2.1 million of the contract liabilities, respectively, were classified as “Other long-term liabilities” in the accompanying condensed consolidated balance sheets. Total contract liabilities at June 30, 2024 were as follows:
(In thousands) |  | Contract Liabilities |
Contract liabilities at December 31, 2023 |  | $ | 4,775 |
Additions |  |  | 34 |
Amounts recognized into revenue |  |  | (1,498 | )
Contract liabilities at June 30, 2024 |  | $ | 3,311 |

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-9 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-15 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-13 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org/606/tableOfContent + Details
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