REVENUE, CREDIT CONCENTRATIONS AND GEOGRAPHIC INFORMATION

9 Months Ended

Sep. 30, 2019

Concentration Risk And Geographic Information [Abstract]

REVENUE, CREDIT CONCENTRATIONS AND GEOGRAPHIC INFORMATION

The Company operates in one business segment, which primarily focuses on the development and commercialization of innovative therapies for people with serious and life-threatening rare diseases and medical conditions. The Company considers there to be revenue concentration risks for regions where Net Product Revenues exceed 10% of consolidated Net Product

Revenues. The concentration of the Company’s Net Product Revenues within the regions below may have a material adverse effect on the Company’s revenues and results of operations if sales in the respective regions experience difficulties.

The following table disaggregates Total Revenues from external customers and collaborative partners by geographic region. Net product revenues by geographic region are based on patient location for the Company’s commercial products, except for Aldurazyme. Although Sanofi Genzyme (Genzyme) sells Aldurazyme worldwide, the revenues earned by the Company are included in the U.S. region, as the transactions are with Genzyme whose headquarters is located in the U.S. Genzyme is the Company’s sole customer for Aldurazyme and is responsible for marketing and selling Aldurazyme to third parties.



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Total revenues by geographic region:
United States	$	201,874	$	174,722	$	562,217	$	528,082
Europe	125,485		111,069		369,585		323,940
Latin America	83,799		75,400		164,132		151,955
Rest of world	49,939		30,515		153,671		134,021
Total revenues	$	461,097	$	391,706	$	1,249,605	$	1,137,998

The following table disaggregates Net Product Revenues by product.



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Net product revenues by product:
Aldurazyme	$	22,852	$	27,593	$	73,945	$	117,652
Brineura	19,840		9,936		46,815		27,743
Firdapse	5,668		4,977		16,262		15,080
Kuvan	120,524		113,254		340,771		321,414
Naglazyme	94,408		103,089		279,462		269,171
Palynziq	24,142		4,129		55,250		4,129
Vimizim	163,466		123,342		411,953		368,016
Total net product revenues	$	450,900	$	386,320	$	1,224,458	$	1,123,205

The table below disaggregates total Net Product Revenues based on patient location for products sold directly by the Company, and global sales of Aldurazyme, which is marketed by Genzyme, the Company’s sole customer for Aldurazyme.



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
United States	$	175,127	$	146,742	$	480,330	$	409,294
Europe	121,363		107,851		358,041		315,270
Latin America	83,799		75,400		164,132		151,955
Rest of world	47,759		28,734		148,010		129,034
Total net product revenues marketed by the Company	428,048		358,727		1,150,513		1,005,553
Aldurazyme net product revenues marketed by Genzyme	22,852		27,593		73,945		117,652
Total net product revenues	$	450,900	$	386,320	$	1,224,458	$	1,123,205

The following table illustrates the percentage of the Company’s total Net Product Revenues attributed to the Company’s largest customers for the periods presented.



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Customer A	16	%	16	%	17	%	17	%
Customer B	13	%	12	%	12	%	12	%
Customer C	10	%	10	%	11	%	10	%
Customer D	5	%	7	%	6	%	11	%
Customer E	12	%	—	%	6	%	—	%
Customer F	—	%	13	%	—	%	6	%
Total	56	%	58	%	52	%	56	%

On a consolidated basis, three customers accounted for 23%, 14% and 12% of the September 30, 2019 accounts receivable balance, respectively, compared to December 31, 2018, when two customers accounted for 30% and 16% of the accounts receivable balance, respectively. As of September 30, 2019, and December 31, 2018, the accounts receivable balance for Genzyme included $67.7 million and $73.9 million, respectively, of unbilled accounts receivable, which become payable to the Company when the product is sold by Genzyme. The Company does not require collateral from its customers but does perform periodic credit evaluations of its customers’ financial condition and requires immediate payment in certain circumstances.

The Company sells its products in countries that face economic volatility and weakness. Although the Company has historically collected receivables from customers in such countries, sustained weakness or further deterioration of the local economies and currencies may cause customers in those countries to be unable to pay for the Company’s products. The Company has not historically experienced a significant level of uncollected receivables and has received continued payments from its more aged accounts in these countries. The Company believes that the allowances for doubtful accounts related to these countries, if any, is adequate based on its analysis of the specific business circumstances and expectations of collection for each of the underlying accounts in these countries.