Product Revenue Reserves and Allowances

3 Months Ended

Mar. 31, 2020

Disclosure Text Block

Product Revenue Reserves and Allowances

5. Product Revenue Reserves and Allowances

In January 2020, the FDA approved AYVAKIT for the treatment of adults with unresectable or metastatic GIST harboring PDGFRA exon 18 mutation, including PDGFRA D842V mutations. To date, the Company’s only

source of product revenue has been from the U.S. sales of AYVAKIT, and the total net product revenue was $3.5 million for the three months ended March 31, 2020.

The following table summarizes activity in each of the product revenue allowance and reserve categories for the three months ended March 31, 2020 (in thousands):

	Total
Beginning balance at January 1, 2020	$	—
Provision related to sales in the current period		607
Adjustment related to prior periods sales		—
Credits and payments made		(119)
Ending balance at March 31, 2020	$	488

The total reserves above, which are included in the Company’s condensed consolidated balance sheets, are summarized as follows (in thousands):

	March 31,
	2020
Reduction of accounts receivable	$	161
Component of accrued expenses		327
Total revenue-related reserves	$	488