Product Revenues, Accounts Receivable, and Reserves for Product Sales

12 Months Ended

Dec. 31, 2023

Product Revenues Accounts Receivable And Reserves For Product Sales [Abstract]

Product Revenues, Accounts Receivable, and Reserves for Product Sales

3. Product Revenues, Accounts Receivable, and Reserves for Product Sales

The Company received FDA approval for the sale of EMPAVELI in the United States in May 2021 and approval for the sale of SYFOVRE in the United States in February 2023. The Company’s product revenues, net of sales discounts and allowances and reserves as of December 31, 2023, 2022 and 2021 totaled $366.3 million, $65.1 million and $15.1 million. The Company’s product revenues consist of sales of EMPAVELI and SYFOVRE to specialty pharmacies and specialty distributors.

The table reflects product revenue by major source for the following periods (in thousands):


	Year Ended December 31,
	2023		2022		2021
Products:
EMPAVELI	$	91,033	$	65,092	$	15,147
SYFOVRE		275,248		—		—
Total product revenue, net	$	366,281	$	65,092	$	15,147

The Company’s accounts receivable balance of $206.4 million as of December 31, 2023 and $7.7 million as of December 31, 2022 primarily consisted of EMPAVELI and SYFOVRE product sales receivable and licensing and other revenue receivables from its collaboration with Sobi. The Company does not have a reserve related to expected credit losses against its accounts receivable balance and expects to collect its accounts receivable in the ordinary course of business.

The Company’s product sales reserves totaled $16.6 million and $2.4 million as of December 31, 2023 and 2022. respectively. These amounts are included in accrued expenses on the Company’s consolidated balance sheet as of December 31, 2023.

The following table summarizes activity in each of the product revenue allowance and reserve categories as of December 31, 2023 (in thousands):


	Chargebacks, Discounts, and Fees			Government and other rebates			Returns			Total
Ending balance at December 31, 2021	$	67		$	716		$	167		$	951
Provision related to sales in the current year		614			4,569			1,185			6,368
Adjustments related to prior period sales		(156	)		(246	)		(385	)		(787	)
Credits and payments made		(362	)		(3,103	)		(716	)		(4,181	)
Ending balance at December 31, 2022	$	164		$	1,936		$	251		$	2,351
Provision related to sales in the current year		17,690			26,661			4,698			49,050
Adjustments related to prior period sales		(112	)		(1,223	)		(2,481	)		(3,817	)
Credits and payments made		(12,068	)		(18,476	)		(415	)		(30,960	)
Ending balance at December 31, 2023	$	5,674		$	8,898		$	2,053		$	16,625

Significant customers - Gross product revenues and product sales receivable from the Company's customers who individually accounted for 10% of more of total gross product revenues and/or 10% or more of total product sales receivable consisted of the following:


	Percent of Total Gross Product Revenues
	Year Ended December 31,
	2023	2022		2021
Customer A	24%	99%		99%
Customer C	16%		—		—
Customer D	54%	1%			—


	Percent of Product Sales Receivable
	As of December 31,
	2023	2022
Customer A	4%	96%
Customer C	22%	3%
Customer D	66%		—