Product Revenues, Accounts Receivable, and Reserves for Product Sales

12 Months Ended

Dec. 31, 2024

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, 2024, 2023 and 2022 totaled $710.0 million, $366.3 million and $65.1 million. The Company’s product revenues consist of sales of EMPAVELI and SYFOVRE to specialty pharmacies and specialty distributors.

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


	Year Ended December 31,
	2024		2023		2022
Products:
EMPAVELI	$	98,091	$	91,033	$	65,092
SYFOVRE		611,863		275,248		—
Total product revenue, net	$	709,954	$	366,281	$	65,092

The Company’s accounts receivable balance of $264.9 million as of December 31, 2024 and $206.4 million as of December 31, 2023 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 $45.1 million and $16.6 million as of December 31, 2024 and 2023. respectively. These amounts are included in accrued expenses on the Company’s consolidated balance sheet as of December 31, 2024.

The following table summarizes activity in each of the product revenue allowance and reserve categories as of December 31, 2024 (in thousands):


	Fees and patient assistance			Government and other rebates			Returns			Total
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
Provision related to sales in the current year		46,506			89,094			3,936			139,536
Adjustments related to prior period sales		1,461			(19	)		(96	)		1,346
Credits and payments made		(42,052	)		(66,440	)		(3,870	)		(112,362	)
Ending balance at December 31, 2024	$	11,589		$	31,533		$	2,023		$	45,145

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,
	2024	2023	2022
Customer A	13%	24%	99%
Customer C	19%	16%		—
Customer D	59%	54%	1%


	Percent of Product Sales Receivable
	As of December 31,
	2024	2023
Customer A	3%	4%
Customer C	29%	22%
Customer D	55%	66%

Factoring of accounts receivable and associated fees for the years ended December 31, 2024 and 2023 were as follows (in thousands):


	December 31,			December 31,		December 31,
	2024			2023		2022
Accounts receivable sold	$	142,698		$	—	$	—
Less: factoring fees		(1,700	)		—		—
Net cash proceeds	$	140,998		$	—	$	—

The accounts receivable sold that remained outstanding as of December 31, 2024 and 2023 was $86.1 million and zero, respectively.