Business Segment, Geographic, and Concentration Risk Information

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Business Segment, Geographic, and Concentration Risk Information

13. Business Segment, Geographic, and Concentration Risk Information

The Company has three operating segments, which are organized based mainly on the nature of the business activities performed and regulatory environments in which they operate. The Company also considers the types of products from which the reportable segments derive their revenue (only applicable to two reportable segments). Each operating segment has a segment manager who is held accountable for operations and has discrete financial information that is regularly reviewed by the Company’s chief operating decision-maker. Consequently, the Company has concluded each operating segment to be a reportable segment. The Company’s operating segments are as follows:   

Oncology Innovation Platform— This operating segment performs research and development on certain of the Company’s proprietary drugs, from the preclinical development of its chemical compounds, to the execution and analysis of its several clinical trials. It focuses specifically on Orascovery and Src Kinase Inhibition research platforms, cell therapy programs and arginine deprivation therapy.

Global Supply Chain Platform— This operating segment includes APS and Polymed and the construction of the manufacturing facilities in Chongqing, China, and Dunkirk, NY. APS is a manufacturing company that supplies sterile injectable drugs to hospital pharmacies across the U.S. APS manufactures products under Section 503B of the Compounding Quality Act within the Federal Food, Drug & Cosmetic Act (“FDCA”). Additionally, APS provides products for the development and manufacturing of the Company’s proprietary drug candidates as well as providing the Company with a cGMP analytical services function. Polymed is primarily in the business of marketing and selling API in North America, Europe, and Asia from its locations in Texas and China. Polymed also develops new compounds and processing techniques and is in the final phase of completion of the new API manufacturing facility in Chongqing, China. 

Commercial Platform— This operating segment includes APD and Athenex Oncology, which focus on the manufacturing, distribution, and sales of specialty pharmaceuticals and the pre-launch commercial activities for the Company’s proprietary drugs, respectively. This segment provides services and products to external customers based mainly in the U.S.

The Company’s Oncology Innovation Platform segment operates and holds long-lived assets located in the U.S., Taiwan, Hong Kong, mainland China, the United Kingdom, and Latin America. The Global Supply Chain Platform segment operates and holds long-lived assets located in the U.S. and China. The Commercial Platform segment operates and holds long-lived assets located in the U.S. For geographic segment reporting, product sales have been attributed to countries based on the location of the customer.  

Segment information is as follows (in thousands):

	Three Months Ended March 31,
	2021			2020
Total revenue:
Oncology Innovation Platform	$	20,665		$	28,387
Global Supply Chain Platform		8,207			3,714
Commercial Platform		13,259			15,542
Total revenue for reportable segments		42,131			47,643
Intersegment revenue		(1,106	)		(708	)
Total consolidated revenue	$	41,025		$	46,935

Intersegment revenue eliminated in the above table reflects $0.6 million in sales from the Global Supply Chain Platform to the Commercial Platform and $0.5 million in sales from the Global Supply Chain Platform to the Oncology Innovation Platform (in thousands).

	Three Months Ended March 31,
	2021		2020
Total revenue by product group:
License fees	$	20,500	$	28,381
Commercial product sales		18,061		17,502
API sales		1,868		1,022
Contract manufacturing revenue		430		23
Other revenue		166		7
Total consolidated revenue	$	41,025	$	46,935

Intersegment revenue is recognized by the selling segment when its customer obtains control of promised goods or services, in an amount that reflects the consideration which it expects to receive in exchange for those goods or services. Upon consolidation, all intersegment revenue and related cost of sales are eliminated from the selling segment’s ledger (in thousands).

	Three Months Ended March 31,
	2021			2020
Net loss attributable to Athenex, Inc.:
Oncology Innovation Platform	$	(5,441	)	$	(958	)
Global Supply Chain Platform		(3,682	)		(5,986	)
Commercial Platform		(15,927	)		(12,485	)
Total consolidated net loss attributable to    Athenex, Inc.	$	(25,050	)	$	(19,429	)

	Three Months Ended March 31,
	2021		2020
Total depreciation and amortization:
Oncology Innovation Platform	$	207	$	175
Global Supply Chain Platform		523		496
Commercial Platform		544		415
Total consolidated depreciation and    amortization	$	1,274	$	1,086

	March 31,		December 31,
	2021		2020
Total assets:
Oncology Innovation Platform	$	199,741	$	234,153
Global Supply Chain Platform		101,621		99,087
Commercial Platform		48,294		51,089
Total consolidated assets	$	349,656	$	384,329

	Three Months Ended March 31,
	2021		2020
Total revenue:
United States	$	38,645	$	17,522
China		205		28,513
Other foreign countries		2,175		900
Total consolidated revenue	$	41,025	$	46,935

	March 31,		December 31,
	2021		2020
Total property and equipment, net:
United States	$	20,902	$	15,511
China		20,876		18,877
Total consolidated property and equipment, net	$	41,778	$	34,388

Customer revenue and accounts receivable concentration amounted to the following for the identified periods. These customers relate to the Commercial Platform segment and the Global Supply Chain Platform segment.

	Three Months Ended March 31,
	2021			2020
Percentage of total revenue by customer:
Customer A		49	%		0	%
Customer B		11	%		9	%
Customer C		9	%		11	%
Customer D		9	%		7	%
Customer E		0	%		60	%

	March 31,			December 31,
	2021			2020
Percentage of total accounts receivable by customer:
Customer A		36	%		33	%
Customer B		30	%		24	%
Customer C		10	%		16	%
Customer D		0	%		6	%