Balance Sheet Components

6 Months Ended

Jun. 30, 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):


	June 30, 2022		December 31, 2021
Cash	$	128,152	$	111,422
Commercial paper		5,483		1,000
Money market funds		34,123		58,801
Total cash and cash equivalents	$	167,758	$	171,223

At June 30, 2022 and December 31, 2021, a total of $98.8 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):


	June 30, 2022
	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Fair Value
Corporate bonds	$	127,387	$	—	$	(1,896	)	$	125,491
Commercial paper		49,824		—		—			49,824
U.S. government bonds		118,142		—		(1,787	)		116,355
Agency bonds		15,235		—		(305	)		14,930
Asset-backed securities		4,751		—		(10	)		4,741
Foreign government bonds		5,032		—		(78	)		4,954
Total investments	$	320,371	$	—	$	(4,076	)	$	316,295

	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 June 30, 2022, the available-for-sale investments had contractual maturities range from several months to two years.

The Company periodically reviews its available-for-sale investments for other-than-temporary impairment. The Company considers factors such as the duration, severity and the reason for the decline in value, the potential recovery period and its intent to sell. For debt securities, the Company also considers whether (i) it is more likely than not that the Company will be required to sell the debt securities before recovery of their amortized cost basis, and (ii) the amortized cost basis cannot be recovered as a result of credit losses. Based on the results of its review, the Company did not recognize any other-than-temporary impairment loss during the three and six months ended June 30, 2022 and 2021.

Inventories

Inventories consisted of the following (in thousands):


	June 30, 2022		December 31, 2021
Raw materials	$	1,220	$	1,363
Work-in-progress		34,488		21,499
Finished goods		5,191		8,153
Total inventories	$	40,899	$	31,015

Accrued and Other Current Liabilities

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


	June 30, 2022		December 31, 2021
Preclinical and clinical trial accruals	$	66,553	$	56,283
API and bulk drug product price true-up		54,443		—
Acquired in-process research and development asset		—		35,000
Payroll and related accruals		13,480		20,909
Accrued co-promotion expenses - current		32,352		25,746
Contract liabilities to pharmaceutical distributors		1,402		3,176
Roxadustat profit share to AstraZeneca		7,497		7,895
Property taxes and other taxes		5,449		12,610
Professional services		4,929		6,074
Other		6,994		4,906
Total accrued and other current liabilities	$	193,099	$	172,599

The accrued liabilities of $54.4 million for API and bulk drug product price true-up as of June 30, 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 an exclusive license and option agreement with HiFiBiO Therapeutics (“HiFiBiO”), which was paid during the six months ended June 30, 2022.