Balance Sheet Components

6 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

6. Balance Sheet Components

Cash and Cash Equivalents

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


	June 30, 2023		December 31, 2022
Cash	$	81,727	$	135,819
Commercial paper		39,708		—
Money market funds		31,150		19,881
Total cash and cash equivalents	$	152,585	$	155,700

At June 30, 2023 and December 31, 2022, a total of $79.7 million and $92.5 million 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, respectively.

Investments

The Company’s investments consist primarily of available-for-sale debt 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, 2023
	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Estimated Fair Value
Corporate bonds	$	22,465	$	—	$	(219	)	$	22,246
Commercial paper		86,608		—		(3	)		86,605
U.S. government bonds		58,690		9		(242	)		58,457
Agency bonds		13,351		7		(28	)		13,330
Asset-backed securities		2,496		—		(3	)		2,493
Total investments	$	183,610	$	16	$	(495	)	$	183,131

	December 31, 2022
	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Estimated Fair Value
Corporate bonds	$	83,080	$	—	$	(1,072	)	$	82,008
Commercial paper		57,381		—		—			57,381
U.S. government bonds		112,547		5		(1,207	)		111,345
Agency bonds		11,690		—		(222	)		11,468
Asset-backed securities		2,484		—		(10	)		2,474
Foreign government bonds		5,007		—		(27	)		4,980
Convertible promissory note		1,000		—		—			1,000
Total investments	$	273,189	$	5	$	(2,538	)	$	270,656

The following table summarizes, for all available for sale securities in an unrealized loss position, the fair value and gross unrealized loss by length of time the security has been in a continual unrealized loss position (in thousands):


	June 30, 2023
	Less than 12 Months					12 Months or More					Total
	Estimated Fair Value		Gross Unrealized Holding Losses			Estimated Fair Value		Gross Unrealized Holding Losses			Estimated Fair Value		Gross Unrealized Holding Losses
Corporate bonds	$	2,472	$	(11	)	$	19,773	$	(208	)	$	22,245	$	(219	)
U.S. government bonds		10,852		(5	)		23,372		(237	)		34,224		(242	)
Agency bonds		—		—			3,471		(28	)		3,471		(28	)
Asset-backed securities		2,493		(3	)		—		—			2,493		(3	)
Commercial paper		3,433		(3	)		—		—			3,433		(3	)
Total	$	19,250	$	(22	)	$	46,616	$	(473	)	$	65,866	$	(495	)

	December 31, 2022
	Less than 12 Months					12 Months or More					Total
	Estimated Fair Value		Gross Unrealized Holding Losses			Estimated Fair Value		Gross Unrealized Holding Losses			Estimated Fair Value		Gross Unrealized Holding Losses
Corporate bonds	$	6,738	$	(147	)	$	75,270	$	(925	)	$	82,008	$	(1,072	)
U.S. government bonds		22,326		(13	)		67,909		(1,194	)		90,235		(1,207	)
Agency bonds		—		—			11,468		(222	)		11,468		(222	)
Asset-backed securities		2,474		(10	)		—		—			2,474		(10	)
Foreign government bonds		—		—			4,980		(27	)		4,980		(27	)
Total	$	31,538	$	(170	)	$	159,627	$	(2,368	)	$	191,165	$	(2,538	)

At June 30, 2023, the available-for-sale investments had remaining contractual maturities of less than twelve months.

The Company periodically assesses whether the unrealized losses on its available-for-sale investments were temporary. The Company considers factors such as the severity and the reason for the decline in value and 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 impairment for its available-for-sale investments during the three and six months ended June 30, 2023 and 2022.

Inventories

Inventories consisted of the following (in thousands):


	June 30, 2023		December 31, 2022
Raw materials	$	1,083	$	1,241
Work-in-progress		35,347		36,003
Finished goods		4,749		3,192
Total inventories	$	41,179	$	40,436

Accrued and Other Current Liabilities

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


	June 30, 2023		December 31, 2022
Preclinical and clinical trial accruals	$	43,886	$	57,780
API and bulk drug product price true-up		36,389		75,055
Payroll and related accruals		15,234		22,562
Accrued co-promotion expenses - current		34,460		36,677
Roxadustat profit share to AstraZeneca		6,921		7,280
Property taxes and other taxes		6,322		7,691
Professional services		6,412		5,480
Current portion of liability related to sale of future revenues		4,511		—
Other		8,634		7,248
Total accrued and other current liabilities	$	162,769	$	219,773

The accrued liabilities of $36.4 million for API and bulk drug product price true-up as of June 30, 2023 resulted from changes in estimated variable consideration associated with the API shipments fulfilled under the terms of the Astellas Japan Amendment, the bulk drug product transferred under the terms of the Astellas Europe Agreement and the Astellas EU Supply Agreement, and the bulk drug product shipments to AstraZeneca under the terms of the AstraZeneca Master Supply Agreement. See the Drug Product Revenue, Net section in Note 2, Collaboration Agreements, License Agreement and Revenues, for details.