Revenue

6 Months Ended

Jun. 30, 2022

Revenue

Revenue

7.           Revenues

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in thousands)	2022		2021		2022		2021
Product revenue, net	$	8,680	$	6,940	$	15,720	$	7,070
Collaboration revenues		96		813		725		2,815
Research premium and grant revenue		415		490		766		887
Total revenues	$	9,191	$	8,243	$	17,211	$	10,772

Collaboration revenues for the six months ended June 30, 2022 were $0.7 million which includes collaboration revenues related to the restructured China Region License Agreement, a portion of which was recognized over the estimated period of the manufacturing collaboration and regulatory support that has been provided to Sumitomo Pharmaceuticals (Suzhou) (see Note 11). Collaboration revenues for the six months ended June 30, 2021 included $1.6 million related to the restructured license agreement with Sinovant Sciences, Ltd., or Sinovant, which is recognized over the estimated period the manufacturing collaboration and regulatory support will be provided to Sinovant, as well as $1.2 million of the Company’s share of revenues associated with the SIVEXTRO distribution agreement with Merck & Co., Inc.

The Company sells its products to pharmaceutical wholesalers/distributors (i.e., the Company’s customers). The Company’s wholesalers/distributors in turn sell the Company’s products directly to clinics, hospitals, and private

practices. Revenue from the Company’s product sales is recognized as physical delivery of product occurs (when the Company’s customer obtains control of the product), in return for agreed-upon consideration.

For the six months ended June 30, 2022 and 2021, SIVEXTRO product revenues, net of gross-to-net accruals and adjustments for returns were $15.7 million and $6.9 million, respectively. For the six months ended June 30, 2022 and 2021 XENLETA product revenues, net of gross-to-net accruals and adjustments for returns, were $14 thousand and $0.2 million, respectively. The Company´s gross-to-net, or GTN, estimates are based upon information received from external sources (such as written or oral information obtained from the Company´s customers with respect to their period-end inventory levels and sales to end-users during the period), in combination with management’s informed judgments. Due to the inherent uncertainty of these estimates, the actual amount incurred may be materially above or below the amount initially estimated when product revenues are originally recorded, then requiring prospective adjustments to the Company’s reported product revenues, net.

For the six months ended June 30, 2022, the Company recorded a $0.3 million returns reserve adjustment for shelf life expiration of certain XENLETA products. For the six months ended June 30, 2021, the Company recorded a $0.1 million returns reserve adjustment for shelf life expiration of certain XENLETA products.