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Revenue
 12 Months Ended
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]  
Revenue

6.

Revenue

 

The Company’s product revenues were mainly generated from the sale of ETUARY. Sales of ETUARY accounted for 98.9% and 96.9% of total revenue for the years ended on December 31, 2023 and 2022, respectively.

Sales of Pharmaceutical Products

The Company generates revenue mostly through sales of ETUARY and certain generic drugs. The distributors were the Company’s direct customers, and sales to distributors accounted for 100% of revenue from ETUARY. The distributors sell ETUARY to outlets, including hospitals and other medical institutions, as well as pharmacies.

Product returns to date have not been significant and the Company has not considered it necessary to record a reserve for product returns. The Company’s product revenues were recognized at a point in time when the underlying product was delivered to the customer, which was when the customer obtained control of the product. Revenue from sales of pharmaceutical products was $113.5 million and $100.9 million for the years ended December 31, 2023 and 2022, respectively. All sales are generated in the PRC.

License of Intellectual Property

Revenue from licensing intellectual property is recognized when the control of the right to use the license is transferred to the customer. Milestone payments, which are included in the transaction price to the extent that it is highly probable that a significant reversal of accumulative revenue recognized will not occur, represent a form of variable consideration, which is recognized as revenue when the uncertainty associated with the variable consideration is subsequently resolved. At the inception of each arrangement that includes milestone payments, the Company evaluates whether the milestones are considered highly probable of being achieved and estimates the amount to be included in the transaction price using the most likely amount method. Milestone payments that are not within the control of the Company, such as regulatory approvals, are not considered highly probable of being achieved until those approvals are received.

The Company’s sales by product categories for the years ended December 31, 2023 and 2022 are as follows (in thousands):

 

 

Year ended December 31,

 

 

 

2023

2022

 

Sales of Pharmaceutical Products

 

$

113,450

 

 

$

100,876

 

License of Intellectual Property

 

 

—

 

 

 

1,414

 

Total

 

$

113,450

 

 

$

102,290