Collaborative arrangements (Tables)

3 Months Ended

Mar. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

The following tables summarize the total transaction price, the allocation of the total transaction price to the identified performance obligations under the arrangement (including those performance obligations that were completed as of the May 2020 contract modification date), and the amount of the transaction price unsatisfied as of March 31, 2021 (in thousands):


	Ide-cel transaction price as of March 31, 2021
Up-front non-refundable payments, option fee and milestone payments received prior to May 2020 contract modification (1)	$	120,000
Allocated portion of the up-front non-refundable payment received in connection with the Amended Ide-cel CCPS and bb21217 License Agreement (2)	184,029
Estimated variable consideration (3)	83,900
	$	387,929

(1) Composed of all up-front payments and option fee and milestone payments received under the BMS Collaboration Agreement, Amended BMS Collaboration Agreement, Ide-cel License Agreement, and Ide-cel CCPS. This consideration was allocated to the performance obligations under the Ide-cel CCPS based on a relative standalone selling price (“SSP”) basis. The Company estimated the SSP of the ide-cel license after considering potential future cash flows under the license. The Company then discounted these probability-weighted cash flows to their present value. The Company estimated the SSP of each of the ide-cel research and development services and ide-cel manufacturing services to be provided based on the Company’s estimated cost of providing the services plus an applicable profit margin commensurate with observable market data for similar services.

(2) This represents the portion of the $200.0 million up-front payment received under the Amended Ide-cel CCPS and Amended bb21217 License Agreement which was allocated to ide-cel.

(3) Estimated variable consideration represents the estimated reimbursement from BMS for the manufacture of vectors and associated payload through development.


	Allocation of transaction price to performance obligations		Transaction price unsatisfied as of March 31, 2021
Ide-cel research and development services	$	40,912	$	—
Ide-cel license and manufacturing services	347,017		—
	$	387,929	$	—

The following table summarizes the net collaborative arrangement revenue recognized or expense incurred for the joint ide-cel development efforts in the U.S. under ASC 808 related to the combined performance obligation for the license and vector manufacturing of ide-cel in the U.S. for the three months ended March 31, 2021, and 2020 (in thousands):


	For the three months ended March 31,
	2021		2020
ASC 808 ide-cel research and development expense - U.S. (1)	$	(16,825)	$	(5,080)

(1) As noted above, the calculation of collaborative arrangement revenue or research and development expense to be recognized for joint ide-cel development efforts in the U.S. is performed on a quarterly basis. The calculation is independent of previous activity, which may result in fluctuations between revenue and expense recognition period over period, depending on the varying extent of effort performed by each party during the period.

Revenue related to the combined unit of accounting for the ex-U.S. license and vector manufacturing services is accounted for in accordance with Topic 606. The following table summarizes the revenue recognized related to the combined unit of accounting for the ide-cel ex-U.S. license and vector manufacturing services for the three months ended March 31, 2021, and 2020 (in thousands):


	For the three months ended March 31,
	2021		2020
ASC 606 ide-cel license and manufacturing revenue - ex-U.S.	$	5,104	$	13,970


	bb21217 transaction price as of March 31, 2021
Up-front non-refundable payment received prior to May 2020 contract modification (1)	$	15,000
Allocated portion of the up-front non-refundable payment received in connection with the Amended Ide-cel CCPS and bb21217 License Agreement (2)	15,971
Estimated variable consideration (3)	1,803
	$	32,774

(1) Composed of the up-front non-refundable payment received under the bb21217 License Agreement. This consideration was allocated to the performance obligations under the bb21217 License Agreement based on a relative SSP basis. The Company estimated the SSP of the bb21217 license after considering potential future cash flows under the license. The Company then discounted these probability-weighted cash flows to their present value. The Company estimated the SSP of each of the bb21217 research and development services and bb21217 manufacturing services to be provided based on the Company’s estimated cost of providing the services plus an applicable profit margin commensurate with observable market data for similar services.

(2) This represents the portion of the $200.0 million up-front payment received under the Amended Ide-cel CCPS and Amended bb21217 License Agreement which was allocated to bb21217.

(3) Estimated variable consideration represents the estimated reimbursement from BMS for the manufacture of vectors and associated payload through development.


	Allocation of transaction price to performance obligations		Transaction price unsatisfied as of March 31, 2021
bb21217 research and development services	$	5,444	$	—
bb21217 license and manufacturing services	27,330		27,330
	$	32,774	$	27,330

Summary of Contract Assets and Liabilities

The following table presents changes in the balances of the Company’s BMS receivables and contract liabilities during the three months ended March 31, 2021 (in thousands):


	Balance at December 31, 2020		Additions		Deductions		Balance at March 31, 2021
Receivables	$	400	$	—	$	(400)	$	—
Contract liabilities:
Deferred revenue	$	26,582	$	—	$	(820)	$	25,762