REVENUE RECOGNITION AND RELATED ALLOWANCES (Tables)

9 Months Ended

Sep. 30, 2020

REVENUE RECOGNITION AND RELATED ALLOWANCES

Schedule of disaggregation of revenue and revenue recognized

	Three Months Ended				Nine Months Ended
Products and Services	September 30,		September 30,		September 30,		September 30,
(in thousands)	2020		2019		2020		2019
Sales of generic pharmaceutical products	$	37,712	$	31,753	$	108,607	$	99,452
Sales of branded pharmaceutical products		12,411		16,605		32,201		48,300
Sales of contract manufactured products		2,152		2,376		7,026		8,499
Royalties from licensing agreements		339		268		1,120		594
Product development services		289		75		1,751		806
Other(1)		76		260		518		930
Total net revenues	$	52,979	$	51,337	$	151,223	$	158,581

⁽¹⁾ Primarily includes laboratory services and royalties on sales of contract manufactured products.

The following table depicts revenue recognized during the following periods:

	Three Months Ended				Nine Months Ended
Timing of Revenue Recognition	September 30,		September 30,		September 30,		September 30,
(in thousands)	2020		2019		2020		2019
Performance obligations transferred at a point in time	$	52,690	$	51,262	$	149,472	$	157,775
Performance obligations transferred over time		289		75		1,751		806
Total	$	52,979	$	51,337	$	151,223	$	158,581

Schedule of accruals and allowances

The following table summarizes activity in the consolidated balance sheets for accruals and allowances for the nine months ended September 30, 2020 and 2019, respectively:

	Accruals for Chargebacks, Returns, and Other Allowances
							Administrative		Prompt
			Government				Fees and Other		Payment
(in thousands)	Chargebacks		Rebates		Returns		Rebates		Discounts
Balance at December 31, 2018 (1)	$	39,007	$	8,974	$	12,552	$	7,353	$	2,009
Accruals/Adjustments		187,843		12,723		13,392		27,476		7,962
Credits Taken Against Reserve		(188,504)		(12,513)		(9,999)		(26,927)		(7,714)
Balance at September 30, 2019 (1)	$	38,346	$	9,184	$	15,945	$	7,902	$	2,257
Balance at December 31, 2019 (1)	$	49,882	$	8,901	$	16,595	$	8,281	$	2,549
Accruals/Adjustments		288,538		14,288		22,744		27,383		10,248
Credits Taken Against Reserve		(262,531)		(11,511)		(16,089)		(27,287)		(9,442)
Balance at September 30, 2020 (1)	$	75,889	$	11,678	$	23,250	$	8,377	$	3,355

(1) Chargebacks are included as an offset to accounts receivable, net of chargebacks and other allowances in the unaudited condensed consolidated balance sheets. Administrative Fees and Other Rebates and Prompt Payment Discounts are included as an offset to accounts receivable, net of chargebacks and other allowances or accrued expenses and other in the unaudited condensed consolidated balance sheets. Returns are included in returned goods reserve in the unaudited condensed consolidated balance sheets. Government Rebates are included in accrued government rebates in the unaudited condensed consolidated balance sheets.

Schedule of customer concentration

	Three Months Ended				Nine Months Ended
	September 30,		September 30,		September 30,		September 30,
	2020		2019		2020		2019
Customer 1	30	%	34	%	31	%	33	%
Customer 2	25	%	24	%	24	%	24	%
Customer 3	19	%	23	%	19	%	24	%