Product Revenues, Accounts Receivable, and Reserves for Product Sales

6 Months Ended

Jun. 30, 2025

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

Product Revenues, Accounts Receivable, and Reserves for Product Sales

The Company’s product revenues recorded in the United States, net of sales discounts, allowances and reserves, for the three months ended June 30, 2025 and 2024 were $171.4 million and $179.1 million, respectively. The Company’s product revenues consist of sales of EMPAVELI and SYFOVRE to specialty pharmacies and specialty distributors.

The Company’s product revenues recorded in the United States, net of sales discounts, allowances and reserves, for the six months ended June 30, 2025 and 2024 were $321.3 million and $342.2 million, respectively. 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):


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Products:
EMPAVELI	$	20,762	$	24,512	$	40,488	$	50,122
SYFOVRE		150,625		154,624		280,799		292,089
Total Product revenue, net	$	171,387	$	179,136	$	321,287	$	342,211

The Company’s accounts receivable balance of $214.1 million as of June 30, 2025 and $264.9 million as of December 31, 2024, consisted of EMPAVELI and SYFOVRE product sales receivable. 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 $44.5 million and $45.1 million as of June 30, 2025 and December 31, 2024, respectively. These amounts are included in accrued expenses on the Company’s unaudited condensed consolidated balance sheets.

The following table summarizes activity in each of the product revenue allowance and reserve categories for the three and six months ended June 30, 2025 (in thousands):


	Fees and patient assistance			Government and other rebates			Returns			Total
Ending balance at December 31, 2024	$	11,589		$	31,533		$	2,023		$	45,145
Provision related to sales in the current period		10,277			24,139			976			35,392
Adjustments related to prior period sales		439			(13	)		(382	)		44
Credits and payments made		(13,084	)		(28,467	)		(126	)		(41,677	)
Ending balance at March 31, 2025	$	9,221		$	27,192		$	2,491		$	38,904
Provision related to sales in the current period		12,138			30,823			1,083			44,044
Adjustments related to prior period sales		(66	)		185			852			971
Credits and payments made		(10,833	)		(27,623	)		(941	)		(39,397	)
Ending balance at June 30, 2025	$	10,460		$	30,577		$	3,485		$	44,522

The following table summarizes activity in each of the product revenue allowance and reserve categories for the three and six months ended June 30, 2024 (in thousands):


	Fees and patient assistance			Government and other rebates			Returns			Total
Ending balance at December 31, 2023	$	5,674		$	8,898		$	2,053		$	16,625
Provision related to sales in the current period		9,575			13,125			1,355			24,055
Adjustments related to prior period sales		146			(19	)		(96	)		31
Credits and payments made		(9,724	)		(9,906	)		(1,859	)		(21,489	)
Ending balance at March 31, 2024	$	5,671		$	12,098		$	1,453		$	19,222
Provision related to sales in the current period		10,025			17,777			1,039			28,841
Adjustments related to prior period sales		(131	)		354			(983	)		(760	)
Credits and payments made		(9,635	)		(14,640	)		(326	)		(24,601	)
Ending balance at June 30, 2024	$	5,930		$	15,589		$	1,183		$	22,702

Significant customers - Gross product revenues and product sales receivable from the Company's customers who individually accounted for 10% or 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
	Three Months Ended June 30,		Six Months Ended June 30,
	2025	2024	2025	2024
Customer A	11%	13%	11%	14%
Customer C	17%	19%	18%	19%
Customer D	62%	58%	60%	58%


	Percent of Product Sales Receivable
	As of June 30,
	2025	2024
Customer A	3%	2%
Customer C	28%	20%
Customer D	54%	67%

Factoring of accounts receivable and associated fees for the three and six months ended June 30, 2025 and 2024 were as follows (in thousands):


	For the Three Months Ended June 30,					For the Six Months Ended June 30,
	2025			2024		2025			2024
Accounts receivable sold	$	99,712		$	—	$	199,448		$	—
Less: factoring fees		(1,222	)		—		(2,433	)		—
Net cash proceeds	$	98,490		$	—	$	197,015		$	—

Accounts receivable sold that remained outstanding as of June 30, 2025 and December 31, 2024 totaled $99.7 million and $86.1 million, respectively.