Revenue

6 Months Ended

Jun. 30, 2024

Revenue from Contract with Customer [Abstract]

Revenue

Revenue

During the three and six months ended June 30, 2024, the Company recognized $75.3 million and $145.7 million, respectively, (2023: $56.9 million and $108.5 million, respectively) of net product revenue relating to the sale of KIMMTRAK primarily in the United States and Europe after estimated deductions for rebates, chargebacks and returns, which are recognized in Accrued expenses and other current liabilities as set out in the Company’s accounting policies included in the Annual Report.

Product revenue, net from the sale of KIMMTRAK is presented by country / region based on the location of the end customer below (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
United States	$	55,606	$	41,056	$	105,632	$	77,281
Europe	15,404		15,232		34,356		30,356
International	4,337		644		5,701		876
Total product revenue, net	$	75,347	$	56,932	$	145,689	$	108,513

Product revenue, net for the three and six months ended June 30, 2024 includes $5.0 million and $7.2 million respectively (2023: $2.0 million and $1.1 million, respectively), of partnered revenue under the Company's agreement with Medison Pharma Ltd ("Medison"), and such revenue is split between its European and international markets.

Accounts receivable from contracts with customers

Accounts receivable as of June 30, 2024 and December 31, 2023 was $60.2 million and $52.1 million, respectively. An allowance for lifetime expected credit losses on accounts receivable is measured using historical credit loss experience, conditions at the end of each reporting period, and reasonable and supportable forecasts that affect collectability. Expected credit losses as of June 30, 2024 and December 31, 2023 were immaterial.

Accruals for rebates, chargebacks and returns

Current and non-current accruals for rebates, chargebacks and returns as of June 30, 2024 were as follows (in thousands):

	Rebates		Chargebacks		Returns		Total
As of December 31, 2023	$	63,957	$	2,031	$	738	$	66,726
Provisions related to sales in the period	41,003		15,516		549		57,068
Adjustments related to sales in prior periods	11,208		—		—		11,208
Credits and payments made	(11,717)		(15,590)		(672)		(27,979)
As of June 30, 2024	$	104,451	$	1,957	$	615	$	107,023

    

Included in the above are non-current accruals for rebates, chargebacks and returns of $1.5 million and $0 as of June 30, 2024 and December 31, 2023, respectively, which are not expected to be paid in the twelve months from the balance sheet date.

For accruals for rebates, chargebacks and returns reported as of December 31, 2023 where the uncertainty remains unresolved, additional information in the three and six months ended June 30, 2024 resulted in a change in estimate of $5.8 million and $11.2 million, respectively, net increase to the Company’s total accrued revenue deductions as of June 30, 2024.

Deferred revenue

Non-current deferred revenue as of June 30, 2024 and December 31, 2023 relates to $5.0 million received from Medison in the year ended December 31, 2023. The Company expects to recognize revenue for this combined performance obligation of supplying KIMMTRAK and granting Medison the exclusive right to distribute KIMMTRAK in South America with the sale of products following potential regulatory approvals in South America. The Company estimates that product revenue recognition of this non-current deferred revenue will commence later than June 30, 2025.