Revenue Components

9 Months Ended

Dec. 31, 2022

Revenue from Contract with Customer [Abstract]

The following table provides information about the Company’s revenues (in thousands):


	Three Months Ended December 31,				Nine Months Ended December 31,
	2022		2021		2022		2021
Revenues:
Product revenue, net:
ORGOVYX	$	48,724	$	24,393	$	128,077	$	53,535
MYFEMBREE	10,527		2,429		20,929		4,133
Accord product supply and royalties	387		—		387		—
Richter product supply and royalties	1,784		2,446		3,327		4,217
Total product revenue, net	61,422		29,268		152,720		61,885
Pfizer collaboration revenue:
Amortization of upfront payment	20,974		20,974		62,922		62,922
Amortization of regulatory milestones	8,333		4,198		46,103		16,931
Total Pfizer collaboration revenue	29,307		25,172		109,025		79,853
Accord license and milestone revenue	5,000		—		55,000		—
Richter license and milestone revenue	4,000		—		4,300		31,667
Other revenue	500		—		500		—
Total revenues	$	100,229	$	54,440	$	321,545	$	173,405

Product Revenue, net

The Company generates product revenue from sales of ORGOVYX and MYFEMBREE in the U.S. The Company records product revenue net of estimated discounts, chargebacks, rebates, product returns, and other gross-to-net revenue deductions.

For both the three and nine months ended December 31, 2022, product revenue, net includes revenues related to product supply to Accord of $0.4 million as well as royalties on net sales of ORGOVYX in Accord’s Territory of less than $0.1 million. There were no such revenues for the three and nine months ended December 31, 2021.

For the three and nine months ended December 31, 2022, product revenue, net includes revenues related to product supply to Richter of $1.4 million and $2.6 million, respectively, as well as royalties on net sales of RYEQO in Richter’s Territory of $0.4 million and $0.7 million, respectively. For the three and nine months ended December 31, 2021, product revenue, net includes revenues related to product supply to Richter of $2.3 million and $4.1 million, respectively, as well as royalties on net sales of RYEQO in Richter’s Territory of $0.1 million and $0.2 million, respectively.

The activities and ending balances for each significant category of discounts and allowances (which constitutes variable consideration) for the nine months ended December 31, 2022 were as follows (in thousands):


	Reserve -government and other incentives		Chargebacks and administrative fees		Returns		Sales Discounts		Total
Balance as of March 31, 2022	$	13,734	$	2,628	$	3,028	$	486	$	19,876
Provision related to sales in the current year	86,741		22,550		3,062		4,331		116,684
Adjustments related to prior year sales	891		(762)		—		—		129
Credits and payments made during the current year	(75,014)		(19,988)		(12)		(4,148)		(99,162)
Balance as of December 31, 2022	$	26,352	$	4,428	$	6,078	$	669	$	37,527

The total reserves described above are summarized as components of the Company’s unaudited condensed consolidated balance sheets as follows (in thousands):


	December 31, 2022		March 31, 2022
Reduction of accounts receivable, net	$	669	$	486
Component of accrued expenses and other current liabilities	36,858		19,390
Total revenue-related reserves	$	37,527	$	19,876

Pfizer Collaboration Revenue

Pfizer collaboration revenue for the three and nine months ended December 31, 2022 and 2021 consists of the partial recognition of the upfront payment the Company received from Pfizer upon entering into the Pfizer Collaboration and License Agreement in December 2020 and of the $100.0 million regulatory milestone payment the Company received from Pfizer that was triggered upon the FDA approval of MYFEMBREE for the management of heavy menstrual bleeding associated with uterine fibroids on May 26, 2021. Pfizer collaboration revenue for the three and nine months ended December 31, 2022 also includes the partial recognition of the $100.0 million regulatory milestone payment the Company received from Pfizer that was triggered upon the FDA approval of MYFEMBREE for the management of moderate to severe pain associated with endometriosis on August 5, 2022. See Note 8(A) for additional information regarding the Pfizer Collaboration and License Agreement.

Accord License and Milestone Revenue

Accord license and milestone revenue for the three months ended December 31, 2022 consists of the recognition of a $5.0 million milestone payment from Accord that was triggered upon Accord’s first commercial sale of ORGOVYX in Europe in October 2022. Accord license and milestone revenue for the nine months ended December 31, 2022 consists of the recognition of a $50.0 million upfront payment the Company received from Accord in May 2022 pursuant to the Accord License Agreement, as well as the $5.0 million milestone payment that was triggered upon Accord’s first commercial sale of ORGOVYX in Europe in October 2022. There was no Accord license and milestone revenue for the three and nine months ended December 31, 2021. See Note 8(B) for additional information regarding the Accord License Agreement.

Richter License and Milestone Revenue

Richter license and milestone revenue for the three and nine months ended December 31, 2022 consists of the recognition of a $4.0 million regulatory milestone payment from Richter that was triggered upon the European Medicines Agency acceptance of Richter’s Type II variation submission for RYEQO for the treatment of moderate to severe pain associated with endometriosis in adult women of reproductive age with a history of previous medical or surgical treatment for their endometriosis. Richter license and milestone revenue for the nine months ended December 31, 2022 also includes the recognition of a $0.3 million regulatory milestone payment from Richter that was triggered upon the approval of RYEQO for the uterine fibroids indication in Australia. The Company recognized $31.7 million of Richter license and milestone revenue for the nine months ended December 31, 2021, which consists of a $15.0 million regulatory milestone payment from Richter that was triggered upon the EC approval of RYEQO for the treatment of moderate to severe symptoms of uterine fibroids in adult women of reproductive age and $16.7 million of previously deferred revenue that was recognized upon the completion of the Company’s delivery of the remaining substantive relugolix combination tablet data packages to Richter. There was no Richter license and milestone revenue for the three months ended December 31, 2021. See Note 8(C) for additional information regarding the Richter Development and Commercialization Agreement.