REVENUE AND CREDIT CONCENTRATIONS

6 Months Ended

Jun. 30, 2017

(16) REVENUE AND CREDIT CONCENTRATIONS

Net Product Revenue - The Company considers there to be revenue concentration risks for regions where net product revenue exceeds 10% of consolidated net product revenue. The concentration of the Company’s net product revenue within the regions below may have a material adverse effect on the Company’s revenue and results of operations if sales in the respective regions experience difficulties.

The table below summarizes consolidated net product revenue concentrations based on patient location for Brineura, Firdapse, Kuvan, Naglazyme, and Vimizim which are sold directly by the Company and global sales of Aldurazyme which is marketed by Genzyme. Genzyme is the Company’s sole customer for Aldurazyme and is responsible for marketing and selling Aldurazyme to third-parties.

	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
United States		38	%		36	%		38	%		37	%
Europe		21	%		22	%		21	%		23	%
Latin America		18	%		17	%		15	%		13	%
Rest of world		17	%		19	%		20	%		20	%
Total net product revenue marketed by the Company		94	%		94	%		94	%		93	%
Aldurazyme net product revenues marketed by Genzyme		6	%		6	%		6	%		7	%
Total net product revenues		100	%		100	%		100	%		100	%

The following table illustrates the percentage of the Company’s consolidated net product revenues attributed to the Company’s largest customers for the three and six months ended June 30, 2017 and 2016.

	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
Customer A		17	%		19	%		17	%		19	%
Customer B		14	%		12	%		13	%		13	%
Customer C		10	%		9	%		10	%		10	%
Customer D		10	%		10	%		7	%		6	%
Total		51	%		50	%		47	%		48	%

On a consolidated basis, the Company’s two largest customer accounts receivable balances accounted for 21% and 19% of the June 30, 2017 total accounts receivable balance, respectively, compared to December 31, 2016, when the two largest customer accounts receivable balances accounted for 26% and 20% of the total accounts receivable balance, respectively. As of June 30, 2017, and December 31, 2016, the accounts receivable balance for Genzyme included $20.0 million and $30.7 million, respectively, of unbilled accounts receivable related to net incremental Aldurazyme product transfers to 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, including Southern European countries, Russia, Chile and Brazil, which face economic crises and local currency devaluation. Although the Company has historically collected receivables from customers in those 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.