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Revenue from Contracts with Customers
 6 Months Ended
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 none 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