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Revenue
 12 Months Ended
Dec. 31, 2024
Revenues [Abstract]  
Revenue

3. Revenue

Revenue from collaboration agreements for the years ended December 31, 2024, 2023 and 2022 predominately relates to the research collaboration agreements the Group entered into with Mallinckrodt in July 2019, AstraZeneca in March 2020, and Hansoh in October 2021.

Revenue comprised $0.1 million of royalty income (2023: $0.7 million; 2022: $0.7 million) and $43.1 million of Research collaboration income (2023: $30.9 million; 2022: $20.9 million). Disaggregation of revenue from contracts with customers is as follows:

 

 

Year ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

 

$000s

 

 

$000s

 

 

$000s

 

Revenue from Contracts with Customers

 

 

 

 

 

 

 

 

 

Research collaboration - Mallinckrodt plc

 

 

584

 

 

 

13,149

 

 

 

14,425

 

Research collaboration - AstraZeneca

 

 

17,957

 

 

 

17,062

 

 

 

6,287

 

Research collaboration - Hansoh

 

 

24,573

 

 

 

722

 

 

 

228

 

Research collaboration - total

 

 

43,114

 

 

 

30,933

 

 

 

20,940

 

Royalties

 

 

144

 

 

 

710

 

 

 

715

 

Total revenue from contracts with customers

 

 

43,258

 

 

 

31,643

 

 

 

21,655

 

 

Under its collaboration agreement with Mallinckrodt, the Group received an upfront cash payment of $20 million in 2019 and are eligible to receive specified development, regulatory and commercial milestone payments. No milestone payments under this agreement were achieved (2023: nil; 2022: $3.0 million) during the year ended December 31, 2024. The Group recognizes the upfront payment, milestone payments, payments for personnel costs and other research funding payments over time, in accordance with ASC 606.

In March 2023, the Group reacquired exclusive worldwide rights to two preclinical siRNA assets under its Mallinckrodt collaboration, which resulted in a modification of the agreement. No additional performance obligations were identified as a result of the modification as there were no additional goods or services to be provided by the Group and the modification resulted in the partially satisfied performance obligations relating to the two reacquired targets becoming fully satisfied as the Group was no longer obligated to develop these targets. SLN501, the C3 targeting program, remained under the original collaboration agreement through March 2024. The Group accounted for the modification as if it were part of the existing contract as the remaining services to be delivered form part of a single performance obligation that is partially satisfied at the date of contract modification. The effect of the contract modification was that the consideration originally received for the two preclinical siRNA assets was reallocated to SLN501. The Group recognized the effect of the contract modification on the measure of progress towards complete satisfaction of the SLN501 performance obligation, and recognized an adjustment to revenue at the date of the contract modification on a cumulative catch-up basis. The Group recognized $10.0 million on the contract modification date. In relation to the reacquired targets, the two preclinical siRNA assets were recognized at fair value. The fair value of those assets has been determined to be nil. Under the modification, the Group agreed to pay future success-based milestones and low single digit royalties on net sales if the projects advance. The Group will recognize these variable success-based milestones as an intangible asset at cost when triggered. Any royalties payable will be expensed in cost of sales.

In March 2024, Mallinckrodt notified the Group that it will not pursue further development of the SLN501 program following the completion of the Phase 1 clinical trial. The completion of the Phase 1 clinical trial also represented the conclusion of all required development activities and commitments under the terms of the Mallinckrodt Collaboration. During the year ended December 31, 2024, the Group recognized a total of $0.6 million in revenue under this agreement (2023: $13.1 million; 2022: $14.4 million).

Under its collaboration agreement with AstraZeneca, the Group received an upfront cash payment of $20 million in 2020 with a further amount of $40 million received in May 2021. The Group is also eligible to receive specified development and commercial milestone payments as well as tiered royalties on net sales, if any. The Group recognizes the upfront payment and milestone payments over time, in accordance with ASC 606. During the year ended December

31, 2024, the Group achieved a milestone payment of $10.0 million (2023: $10 million; 2022: nil). During the year ended December 31, 2024, the Group recognized a total of $18.0 million in revenue under this agreement (2023: $17.1 million; 2022: $6.3 million).

The Group entered into a collaboration agreement with Hansoh on October 15, 2021. The Group received a $16 million ($14.4 million, net of taxes) upfront payment to us in December 2021. The Group is eligible to receive development, regulatory and commercial milestones as well as royalties on Hansoh net product sales. During the year ended December 31, 2024, the Group achieved milestone payments totaling $2.0 million (2023: $4.0 million; 2022: $1.5 million). The Group recognizes the upfront payment and milestone payments over time, in accordance with ASC 606.

In December 2024, Hansoh notified the Group that it will not pursue further development under the Hansoh Collaboration. This represented the conclusion of all required development activities and commitments under the terms of the Hansoh Collaboration. During the year ended December 31, 2024, the Group recognized a total of $24.6 million in revenue under this agreement (2023: $0.7 million; 2022: $0.2 million).

In December 2018, the Group entered into a settlement and license agreement with Alnylam Pharmaceuticals Inc. (“Alnylam”), pursuant to which the Group settled outstanding patent litigation with Alnylam related to its RNAi product ONPATTRO. As part of the settlement, the Group licenses specified patents to Alnylam, and Alnylam pays us a tiered royalty of up to one percent of net sales of ONPATTRO in the European Union. The Group was eligible to receive these royalties through December 2023. The Group invoices Alnylam quarterly in arrears based on sales data for that quarter as reported to us by Alnylam. Royalty revenue is recognized based on the level of sales when the related sales occur. During the year ended December 31, 2024, the Group recognized a total of $0.1 million in royalty income from Alnylam (2023: $0.7 million; 2022: $0.7 million).