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Revenue from Contracts with Customers | 6 Months Ended
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Jun. 30, 2026
Revenue from Contract with Customer [Abstract] |
Revenue from Contracts with Customers | 4. REVENUE FROM CONTRACTS WITH CUSTOMERS The Company recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which it expects to receive in exchange for those goods or services. The Company recognizes revenue following the five-step model prescribed in accordance with FASB ASC 606, Revenue from Contracts with Customers: (i) identify contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the Company satisfies the performance obligations. Product Sales, Net The Company’s product sales, net consist of sales in the U.S. of ARISTADA and ARISTADA INITIO, LYBALVI, VIVITROL, and, following the completion of the Avadel Acquisition on February 12, 2026, LUMRYZ, 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, 2026 and 2025, the Company recorded product sales, net, as follows:
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
(In thousands) |  | 2026 |  |  | 2025 |  |  | 2026 |  |  | 2025 |
VIVITROL |  | $ | 124,454 |  |  | $ | 121,660 |  |  | $ | 236,888 |  |  | $ | 222,656 |
ARISTADA and ARISTADA INITIO |  |  | 96,719 |  |  |  | 101,295 |  |  |  | 190,543 |  |  |  | 174,770 |
LYBALVI |  |  | 93,979 |  |  |  | 84,280 |  |  |  | 186,343 |  |  |  | 154,302 |
LUMRYZ |  |  | 96,572 |  |  |  | — |  |  |  | 136,064 |  |  |  | — |
Total product sales, net |  | $ | 411,724 |  |  | $ | 307,235 |  |  | $ | 749,838 |  |  | $ | 551,728 |
Revenues from product sales are recorded net of reserves established for applicable discounts and allowances that are offered within contracts with the Company’s customers, healthcare providers or payers. The Company’s process for estimating reserves established for these variable consideration components does not differ materially from historical practices. The transaction price, which includes variable consideration reflecting the impact of discounts and allowances, may be subject to constraint and is included in the net sales price only to the extent that it is probable that a significant reversal of the amount of the cumulative revenues recognized will not occur in a future period. Actual amounts may ultimately differ from the Company’s estimates. If actual results vary, the Company adjusts these estimates, which could have an effect on earnings in the period of adjustment. See the “Revenue from Contracts with Customers” section in Note 2, Summary of Significant Accounting Policies in the “Notes to Consolidated Financial Statements” in the Annual Report for information with respect to the Company’s significant categories of sales discounts and allowances. The decrease in Medicaid rebates as a percentage of sales was primarily due to gross-to-net favorability, as actual Medicaid rebates related to VIVITROL and ARISTADA/ARISTADA INITIO were lower than original estimates during the six months ended June 30, 2026 by approximately $8.9 million and $8.1 million, respectively. A rollfor ward of the Company’s provisions for sales discounts and allowances is as follows:
|  | Six Months Ended June 30, 2026 |
(In thousands) |  | Contractual Adjustments(2) |  |  | Discounts(3) |  |  | Product Returns |  |  | Other |  |  | Total |
Beginning balance — December 31, 2025 |  | $ | 211,440 |  |  | $ | 41,327 |  |  | $ | 55,455 |  |  | $ | 7,813 |  |  | $ | 316,035 |
Avadel beginning balance as of February 12, 2026 (1) |  |  | 1,475 |  |  |  | 15,499 |  |  |  | 724 |  |  |  | 11,323 |  |  |  | 29,021 |
Current provisions relating to sales in current year |  |  | 310,678 |  |  |  | 268,479 |  |  |  | 13,688 |  |  |  | 72,764 |  |  |  | 665,609 |
Adjustments relating to prior years |  |  | (17,719 | ) |  |  | (5,320 | ) |  |  | (3,324 | ) |  |  | 210 |  |  |  | (26,153 | )
Payments relating to sales in current year |  |  | (151,519 | ) |  |  | (243,525 | ) |  |  | (137 | ) |  |  | (53,660 | ) |  |  | (448,841 | )
Payments relating to sales in prior years |  |  | (130,931 | ) |  |  | (17,281 | ) |  |  | (5,206 | ) |  |  | (14,828 | ) |  |  | (168,246 | )
Ending balance — June 30, 2026 |  | $ | 223,424 |  |  | $ | 59,179 |  |  | $ | 61,200 |  |  | $ | 23,622 |  |  | $ | 367,425 |
(1) Amounts consist of beginning balance as of the Closing Date. (2) “Contractual Adjustments” include “Medicaid Rebates” and “Medicare Part D” accruals. (3) “Discounts” in clude “Chargebacks” and “Product Discounts.” Total revenue-related reserves as of June 30, 2026 and December 31, 2025 included in the accompanying consolidated balance sheets are summarized as follows:
|  | June 30, |  |  | December 31, |
(In thousands) |  | 2026 |  |  | 2025 |
Reduction of accounts receivable |  | $ | 18,995 |  |  | $ | 21,049 |
Components of accrued sales discounts, allowances and reserves |  |  | 295,645 |  |  |  | 247,126 |
Components of other long-term liabilities |  |  | 52,785 |  |  |  | 47,860 |
Total revenue-related reserves |  | $ | 367,425 |  |  | $ | 316,035 |
Manufacturing and Royalty Revenues During the three and six months ended June 30, 2026 and 2025, the Company recorded manufacturing and royalty revenues from its collaboration arrangements as follows:
|  | Three Months Ended June 30, 2026 |  |  | Six Months Ended June 30, 2026 |
(In thousands) |  | Manufacturing Revenue |  |  | Royalty Revenue |  |  | Total |  |  | Manufacturing Revenue |  |  | Royalty Revenue |  |  | Total |
Long-acting INVEGA products(1) |  | $ | — |  |  | $ | 27,451 |  |  | $ | 27,451 |  |  | $ | — |  |  | $ | 45,446 |  |  | $ | 45,446 |
VUMERITY |  |  | — |  |  |  | 30,587 |  |  |  | 30,587 |  |  |  | — |  |  |  | 57,936 |  |  |  | 57,936 |
Other |  |  | 20,901 |  |  |  | 5,346 |  |  |  | 26,247 |  |  |  | 24,969 |  |  |  | 10,731 |  |  |  | 35,700 |
|  | $ | 20,901 |  |  | $ | 63,384 |  |  | $ | 84,285 |  |  | $ | 24,969 |  |  | $ | 114,113 |  |  | $ | 139,082 |
|  | Three Months Ended June 30, 2025 |  |  | Six Months Ended June 30, 2025 |
(In thousands) |  | Manufacturing Revenue |  |  | Royalty Revenue |  |  | Total |  |  | Manufacturing Revenue |  |  | Royalty Revenue |  |  | Total |
Long-acting INVEGA products(1) |  | $ | — |  |  | $ | 30,315 |  |  | $ | 30,315 |  |  | $ | — |  |  | $ | 48,060 |  |  | $ | 48,060 |
VUMERITY |  |  | 7,383 |  |  |  | 32,016 |  |  |  | 39,399 |  |  |  | 13,358 |  |  |  | 53,874 |  |  |  | 67,232 |
Other |  |  | 9,184 |  |  |  | 4,524 |  |  |  | 13,708 |  |  |  | 20,536 |  |  |  | 9,611 |  |  |  | 30,147 |
|  | $ | 16,567 |  |  | $ | 66,855 |  |  | $ | 83,422 |  |  | $ | 33,894 |  |  | $ | 111,545 |  |  | $ | 145,439 |
(1) “long-acting INVEGA products”: INVEGA SUSTENNA/XEPLION (paliperidone palmitate), INVEGA TRINZA/TREVICTA (paliperidone palmitate) and INVEGA HAFYERA/BYANNLI (paliperidone palmitate). The Company’s royalty on net sales of INVEGA SUSTENNA in the U.S. expired in August 2024.

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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 7 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-7 Reference 2: 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 3: 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 4: 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 5: 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 6: 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 7: 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 8: 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 9: 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 10: 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 11: 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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