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Revenue from Contracts with Customers
 9 Months Ended
Sep. 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 nine months ended September 30, 2024 and 2023, the Company recorded product sales, net, as follows:

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

(In thousands)

 

2024

 

 

2023

 

 

2024

 

 

2023

 

VIVITROL

 

$

113,650

 

 

$

99,305

 

 

$

323,182

 

 

$

298,035

 

ARISTADA and ARISTADA INITIO

 

 

84,652

 

 

 

81,834

 

 

 

249,571

 

 

 

244,320

 

LYBALVI

 

 

74,697

 

 

 

50,683

 

 

 

203,055

 

 

 

135,671

 

Total product sales, net

 

$

272,999

 

 

$

231,822

 

 

$

775,808

 

 

$

678,026

 

 

Manufacturing and Royalty Revenues

During the three and nine months ended September 30, 2024 and 2023, the Company recorded manufacturing and royalty revenues from its collaboration arrangements as follows:

 

 

 

Three Months Ended September 30, 2024

 

 

Nine Months Ended September 30, 2024

 

(In thousands)

 

Manufacturing
Revenue

 

 

Royalty
Revenue

 

 

Total

 

 

Manufacturing
Revenue

 

 

Royalty
Revenue

 

 

Total

 

Long-acting INVEGA products(1)

 

$

—

 

 

$

58,448

 

 

$

58,448

 

 

$

—

 

 

$

199,860

 

 

$

199,860

 

VUMERITY

 

 

8,753

 

 

 

23,821

 

 

 

32,574

 

 

 

30,740

 

 

 

68,322

 

 

 

99,062

 

Other

 

 

7,194

 

 

 

6,928

 

 

 

14,122

 

 

 

35,517

 

 

 

17,396

 

 

 

52,913

 

 

$

15,947

 

 

$

89,197

 

 

$

105,144

 

 

$

66,257

 

 

$

285,578

 

 

$

351,835

 

 

 

 

Three Months Ended September 30, 2023

 

 

Nine Months Ended September 30, 2023

 

(In thousands)

 

Manufacturing
Revenue

 

 

Royalty
Revenue

 

 

Total

 

 

Manufacturing
Revenue

 

 

Royalty
Revenue

 

 

Total

 

Long-acting INVEGA products(1)

 

$

—

 

 

$

76,109

 

 

$

76,109

 

 

$

—

 

 

$

410,910

 

 

$

410,910

 

VUMERITY

 

 

9,733

 

 

 

24,828

 

 

 

34,561

 

 

 

32,751

 

 

 

62,979

 

 

 

95,730

 

Other

 

 

30,889

 

 

 

7,554

 

 

 

38,443

 

 

 

78,209

 

 

 

23,039

 

 

 

101,248

 

 

$

40,622

 

 

$

108,491

 

 

$

149,113

 

 

$

110,960

 

 

$

496,928

 

 

$

607,888

 

 

(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 September 30, 2024 were as follows:

 

(In thousands)

 

Contract Assets

 

Contract assets at December 31, 2023

 

$

706

 

Additions

 

 

6,344

 

Transferred to receivables, net

 

 

(4,081

)

Contract assets at September 30, 2024

 

$

2,969

 

 

Contract Liabilities

 

Contract liabilities consist of contractual obligations related to deferred revenue. At September 30, 2024 and December 31, 2023, $2.4 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 September 30, 2024 were as follows:

 

(In thousands)

 

Contract Liabilities

 

Contract liabilities at December 31, 2023

 

$

4,775

 

Additions

 

 

34

 

Amounts recognized into revenue

 

 

(2,470

)

Contract liabilities at September 30, 2024

 

$

2,339