XML 29 R11.htm IDEA: XBRL DOCUMENT v3.20.2
Disaggregated Revenues
 6 Months Ended
Jun. 30, 2020
Disaggregation of Revenue [Abstract]  
Disaggregated Revenues Disaggregated Revenues
The following table summarizes the disaggregation of revenues by nature, (dollars in thousands):
Three Months ended June 30,Six Months ended
June 30,
2020201920202019
(unaudited)(unaudited)
Net product sales
Trokendi XR$89,674  $78,964  $158,225  $142,657  
Oxtellar XR23,680  23,394  47,619  42,800  
APOKYN8,600  —  8,600  —  
XADAGO801  —  801  —  
MYOBLOC1,229  —  1,229  —  
Total net product sales$123,984  $102,358  $216,474  $185,457  
Royalty revenues2,745  2,337  5,231  4,712  
Total revenues$126,729  $104,695  $221,705  $190,169  

Trokendi XR accounted for 73% and 77% of the Company’s total net product sales for the six months ended June 30, 2020 and 2019, respectively.
The Company recognized noncash royalty revenue of $2.3 million and $3.9 million for the three and six months ended June 30, 2020, respectively. The Company recognized noncash royalty revenue of $1.8 million and $3.4 million, for the three and six months ended June 30, 2019, respectively.The Company ceased production and distribution of all commercial blister pack configurations for Trokendi XR in 2017. Subsequent to ceasing blister pack production and distribution in 2017, the observed rate of product return for all blister pack configurations of Trokendi XR steadily declined over time. This return rate trend was established over a multi-year period. However, in the first quarter of 2020, the return rate for the final blister pack lots of Trokendi XR produced in 2017 exhibited a return rate significantly higher than had been experienced with all previous lots. The lots for which a higher return rate was observed are the last lots which were produced and distributed commercially. As a result, the Company changed its estimate of the provision for product returns, based on the most recent experience. This change in estimate resulted in an increase to the provision for product returns of $8.0 million, a decrease in net product sales of $8.0 million and a decrease in net earnings of $5.9 million, or $0.11 per basic and per diluted share for the three months ended March 31, 2020.