XML 30 R20.htm IDEA: XBRL DOCUMENT v3.20.2
REVENUE, CREDIT CONCENTRATIONS AND GEOGRAPHIC INFORMATION
 6 Months Ended
Jun. 30, 2020
Concentration Risk And Geographic Information [Abstract]  
REVENUE, CREDIT CONCENTRATIONS AND GEOGRAPHIC INFORMATION 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, which is sold exclusively to Sanofi Genzyme (Genzyme) who markets and sells Aldurazyme world-wide. Aldurazyme 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. 
Three Months Ended
June 30,		Six Months Ended
June 30,
2020201920202019
Total revenues by geographic region:
United States$232,552  $169,407  $476,724  $360,343  
Europe109,259  119,561  254,295  244,100  
Latin America37,864  46,494  97,788  80,333  
Rest of world49,810  52,301  102,747  103,732  
Total revenues$429,485  $387,763  $931,554  $788,508  
The following table disaggregates Net Product Revenues by product. 
Three Months Ended
June 30,		Six Months Ended
June 30,
2020201920202019
Net product revenues by product:
Kuvan$122,611  $113,323  $244,611  $220,247  
Vimizim116,695  122,686  253,898  248,487  
Naglazyme81,006  98,127  195,262  185,054  
Palynziq40,630  18,836  75,262  31,108  
Brineura25,798  14,795  49,768  26,975  
Firdapse—  5,482  1,316  10,594  
Total net product revenues marketed by the Company$386,740  $373,249  $820,117  $722,465  
Aldurazyme net product revenues marketed by Genzyme32,292  5,826  $87,958  $51,093  
Total net product revenues$419,032  $379,075  $908,075  $773,558  
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. 
Three Months Ended
June 30,		Six Months Ended
June 30,
2020201920202019
United States$197,171  $160,918  $378,842  $305,203  
Europe104,319  113,593  245,170  236,678  
Latin America37,864  46,493  97,788  80,333  
Rest of world47,386  52,245  98,317  100,251  
Total net product revenues marketed by the Company386,740  373,249  820,117  722,465  
Aldurazyme net product revenues marketed by Genzyme32,292  5,826  87,958  51,093  
Total net product revenues$419,032  $379,075  $908,075  $773,558  
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
June 30,		Six Months Ended
June 30,
2020201920202019
Customer A16 %13 %14 %12 %
Customer B15 %16 %14 %17 %
Customer C13 %12 %12 %11 %
Total44 %41 %40 %40 %
 
On a consolidated basis, two customers accounted for 31% and 13% of the June 30, 2020 accounts receivable balance, respectively, compared to December 31, 2019, when two customers accounted for 24% and 16% of the accounts receivable balance, respectively. As of June 30, 2020, and December 31, 2019, the accounts receivable balance for Genzyme included $94.3 million and $60.2 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 outbreak of COVID-19 will continue to affect economies and business around the world. The Company experienced a modest impact on its Net Product Revenues in the three and six months ended June 30, 2020 and the Company anticipates a continued near-term impact on its financial results as well as ongoing and future effects of COVID-19 (or any future pandemic) on all aspects of its operations. The extent and duration of such effects are highly uncertain and difficult to predict. The Company is actively monitoring and managing its response and assessing actual and potential impacts to its operating results and financial condition, as well as adverse developments in its business, which could further impact the developments, trends and expectations. See the risk factor related to the impact of the coronavirus pandemic, “The coronavirus, or COVID-19, pandemic could materially adversely affect our business, results of operations and financial condition.” described in “Risk Factors” in Part II, Item 1A of this Quarterly Report, for additional details on the impact of the COVID-19 pandemic.
The Company is mindful that conditions in the current macroeconomic environment could affect the Company’s ability to achieve its goals. The Company sells its products in countries that face economic volatility and weakness. Although the Company has historically collected receivables from customers in certain countries, sustained weakness or further deterioration of the local economies and currencies and adverse effects of the impact of the ongoing COVID-19 pandemic may cause customers in those countries to be unable to pay for the Company’s products. The Company believes that the allowances for doubtful accounts related to these countries, if any, was adequate based on its analysis of the specific business circumstances and expectations of collection for each of the underlying accounts in these countries. The Company will continue to monitor these conditions and will attempt to adjust its business processes, as appropriate, to mitigate macroeconomic risks to its business.