Net Product Revenue

9 Months Ended

Sep. 30, 2011

8. NET PRODUCT REVENUE

Under the terms of the Amended PDT Agreement with Novartis, on January 1, 2010, we received from Novartis the exclusive U.S. rights to the Visudyne patents to sell and market Visudyne in the U.S. In the nine months ended September 30, 2010, $5.0 million of previously deferred revenue related to inventory previously shipped to Novartis for sales outside the U.S. was recognized as revenue. Details of our revenue recognition accounting policy are described in Note 1 — Condensed Summary of Significant Accounting Policies.

Net product revenue for the three and nine months ended September 30, 2011 and 2010, was determined as follows:


	Three months ended				Nine months ended
	September 30,				September 30,
(In thousands of U.S. dollars)	2011		2010		2011		2010

U.S. Visudyne sales by QLT	$	3,853	$	5,218	$	15,631	$	16,668
Visudyne sales to Novartis		2,026		—		4,011		6,988
Add: Royalties reimbursed to QLT		337		308		1,051		999
Add: Other costs reimbursed to QLT		10		9		31		131

Net product revenue from Visudyne sales	$	6,226	$	5,535	$	20,724	$	24,786

The tables below summarize end-user Visudyne sales for the three and nine months ended September 30, 2011 and 2010. Under the Amended PDT Agreement with Novartis, Visudyne is sold by QLT in the U.S., and by Novartis outside the U.S. (for which we earn a 20% royalty on net sales). See Note 1 - Condensed Summary of Significant Accounting Policies.


	Three months ended				Nine months ended
	September 30,				September 30,
(In thousands of U.S. dollars)	2011		2010		2011		2010

U.S.	$	3,853	$	5,218	$	15,631	$	16,668
Europe		5,729		5,303		19,856		19,447
Rest of World		11,044		9,945		32,350		30,010

Worldwide	$	20,626	$	20,466	$	67,837	$	66,125


	Three months ended						Nine months ended
	September 30,						September 30,
	2011			2010			2011			2010

U.S.		19	%		25	%		23	%		25	%
Europe		28	%		26	%		29	%		29	%
Rest of World		53	%		49	%		48	%		46	%

Worldwide		100	%		100	%		100	%		100	%