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COLLABORATION AND LICENSING AGREEMENTS
 9 Months Ended
Sep. 30, 2025
Collaboration and Licensing Agreements  
COLLABORATION AND LICENSING AGREEMENTS COLLABORATION AND LICENSING AGREEMENTS
We out-license to external partners for the development and commercialization of tenapanor outside of the U.S. We recognize revenue from our agreements with Kyowa Kirin, Fosun Pharma and Knight as licensing revenue, product supply revenue or non-cash royalty revenue related to the sale of future royalties. See Note 7. Collaboration and Licensing Agreements and “Licensing Revenue Recognition” caption of Note 2. Summary of Significant Accounting Policies of our 2024 Form 10-K for more information on the nature, purpose, significant rights and obligations of the parties, as well as our accounting policies for such revenue streams.
The following table summarizes total revenues by collaboration partner:
Three Months Ended September 30,Nine Months Ended September 30,
(in thousands)2025202420252024
Licensing revenue
Fosun Pharma
$— $— $5,000 $— 
Knight
25 20 65 56 
Total licensing revenue
$25 $20 $5,065 $56 
Product supply revenue   
Kyowa Kirin
$— $5,322 $6,185 $7,461 
Knight
— — 254 — 
Total supply revenue
$— $5,322 $6,439 $7,461 
Non-cash royalty revenue related to the sale of future royalties   
Kyowa Kirin
$4,789 $809 $7,195 $1,776 
The following table presents changes in our current and non-current deferred revenue balances, which are primarily attributable to Kyowa Kirin:
20252024
(in thousands)CurrentNon-CurrentCurrentNon-Current
Deferred revenue balance as of January 1,
$10,686$7,232$7,182$8,644
Prepaid product supply5286,4672,6548,212
Product supply delivered(4,633)—(6,650)—
Reclassify amounts to be recognized in the next twelve months——4,086(4,086)
Deferred revenue balance as of September 30,$6,581$13,699$7,272$12,770
Significant developments and updates related to our collaboration and licensing agreements in the nine months ended September 30, 2025 and 2024 are discussed below.
Kyowa Kirin
In February 2024, Kyowa Kirin announced the launch of tenapanor, marketed as PHOZEVEL®, for patients with CKD with hyperphosphatemia in Japan. Following the launch, we began to recognize earned royalties and commercialization milestones from sales of tenapanor in Japan, which are remitted to HCR in accordance with the HCR Agreement.
The first commercialization milestone was achieved in the 2025 third quarter, triggering a ¥500.0 million payment to us under the terms of the Kyowa Kirin Agreement, or approximately $3.4 million at the currency exchange rate as of September 30, 2025. This milestone was recorded as non-cash royalty revenue related to the sale of future royalties and will be remitted to HCR upon receipt.
Fosun Pharma
In February 2025, we announced the approval of an NDA for tenapanor for the control of hyperphosphatemia in adult patients with CKD undergoing hemodialysis by China’s Center for Drug Evaluation of the NMPA. This approval triggered a $5.0 million milestone to us under the terms of the Fosun Agreement, which was recorded as licensing revenue on our condensed statement of operations and comprehensive loss when earned during the 2025 first quarter and was received in April 2025.
AstraZeneca
In connection with the AstraZeneca Termination Agreement, we recognized royalty expense as other cost of revenue in our condensed statements of operations and comprehensive loss of zero and $12.7 million in the three and nine months ended September 30, 2025, and $10.0 million and $22.7 million in the three and nine months ended September 30, 2024, respectively. As of the 2025 second quarter, we had fully recognized the $75.0 million royalty obligation, which had been fully remitted as of September 30, 2025.