Balance Sheet Components

3 Months Ended

Mar. 31, 2022

Organization Consolidation And Presentation Of Financial Statements [Abstract]

5. Balance Sheet Components

Cash and Cash Equivalents

Cash and cash equivalents consisted of the following (in thousands):


	March 31, 2022		December 31, 2021
Cash	$	165,436	$	111,422
Commercial paper		3,994		1,000
Money market funds		16,466		58,801
Total cash and cash equivalents	$	185,896	$	171,223

At March 31, 2022 and December 31, 2021, a total of $95.2 million and $91.2 million, respectively, of the Company’s cash and cash equivalents were held outside of the U.S. in its foreign subsidiaries to be used primarily for its China operations.

Investments

The Company’s investments consist of available-for-sale debt investments and marketable equity investments. The amortized cost, gross unrealized holding gains or losses, and fair value of the Company’s investments by major investments type are summarized in the tables below (in thousands):


	March 31, 2022
	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Fair Value
Corporate bonds	$	148,022	$	—	$	(1,749	)	$	146,273
Commercial paper		50,357		—		—			50,357
U.S. government bonds		99,764		—		(1,388	)		98,376
Agency bonds		23,279		—		(261	)		23,018
Asset-backed securities		12,693		—		(33	)		12,660
Foreign government bonds		5,044		—		(61	)		4,983
Total investments	$	339,159	$	—	$	(3,492	)	$	335,667

	December 31, 2021
	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Fair Value
Corporate bonds	$	183,136	$	2	$	(492	)	$	182,646
Commercial paper		68,079		—		—			68,079
U.S. government bonds		91,840		—		(318	)		91,522
Agency bonds		23,339		—		(64	)		23,275
Asset-backed securities		27,105		—		(18	)		27,087
Foreign government bonds		9,165		—		(11	)		9,154
Total investments	$	402,664	$	2	$	(903	)	$	401,763

At March 31, 2022, the available-for-sale investments had contractual maturities range from several months to two years. During the three months ended March 31, 2022, the Company did not recognize any other-than-temporary impairment loss.

Inventories

Inventories consisted of the following (in thousands):


	March 31, 2022		December 31, 2021
Raw materials	$	1,359	$	1,363
Work-in-progress		33,837		21,499
Finished goods		7,871		8,153
Total inventories	$	43,067	$	31,015

As of March 31, 2022 and December 31, 2021, inventory capitalized for the U.S. entity was 51% and 38% of the total inventory balance, respectively, which will be used for commercial launches in Europe and other territories where the Company has received regulatory approvals. The provision to write-down excess and obsolete inventory was immaterial as of March 31, 2022 and December 31, 2021.

Accrued and Other Current Liabilities

Accrued and other current liabilities consisted of the following (in thousands):


	March 31, 2022		December 31, 2021
Preclinical and clinical trial accruals	$	65,112	$	56,283
API and bulk drug product price true-up		60,834		—
Acquired in-process research and development asset		—		35,000
Payroll and related accruals		12,325		20,909
Contract liabilities to pharmaceutical distributors		2,759		3,176
Accrued co-promotion expenses - current		28,117		25,746
Roxadustat profit share to AstraZeneca		7,917		7,895
Property taxes and other taxes		13,928		12,610
Professional services		6,819		6,074
Other		5,488		4,906
Total accrued and other current liabilities	$	203,299	$	172,599

The accrued liabilities of $60.8 million for API and bulk drug product price true-up as of March 31, 2022 resulted from changes in estimated variable consideration associated with the API shipments fulfilled under the terms of the Japan Amendment with Astellas, the bulk drug product transferred under the terms of the Europe Agreement and the EU Supply Agreement with Astellas, and the bulk drug product shipments to AstraZeneca under the terms of the Master Supply Agreement. See Note 2, Collaboration Agreements, License Agreement and Revenues, for details.

The acquired in-process research and development asset of $35.0 million as of December 31, 2021 was related to the upfront payment under the exclusive license and option agreement with HiFiBiO Therapeutics, which was paid during the three months ended March 31, 2022.