PRODUCT REVENUES, NET, ACCOUNTS RECEIVABLE, NET, AND RESERVES FOR PRODUCT REVENUES

6 Months Ended

Jun. 30, 2024

Receivables, Net, Current [Abstract]

PRODUCT REVENUES, NET, ACCOUNTS RECEIVABLE, NET, AND RESERVES FOR PRODUCT REVENUES

6. PRODUCT REVENUES, NET, ACCOUNTS RECEIVABLE, NET, AND RESERVES FOR PRODUCT REVENUES

Net product revenues, which includes revenues associated with the PMO Products and ELEVIDYS, consisted of the following:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2024		2023		2024		2023
	(in thousands)
PMO Products
United States	$	204,248	$	203,895	$	393,915	$	404,346
Rest of World		34,579		35,093		70,460		66,137
Total PMO product revenues, net	$	238,827	$	238,988	$	464,375	$	470,483
ELEVIDYS
United States		121,721		—		255,657		—
Total ELEVIDYS product revenue, net	$	121,721	$	—	$	255,657	$	—
Total product revenues, net	$	360,548	$	238,988	$	720,032	$	470,483

For the three and six months ended June 30, 2024 and 2023, no individual country outside the U.S. exceeded 10% of total net product revenues.

The following table summarizes the Company's net product revenues, by customer, for those customers that exceeded 10% for the periods indicated:

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2024			2023			2024			2023
Product revenues, net
Customer 1		35	%		47	%		35	%		48	%
Customer 2		21	%		33	%		20	%		32	%

As of June 30, 2024 and December 31, 2023, the Company's accounts receivable, net were $360.0 million and $400.3 million, respectively, both of which were related to product sales, net of discounts and allowances. As of June 30, 2024, the majority of the Company’s accounts receivable arose from product sales in the U.S. and all customers have standard payment terms that generally require payment within 65 to 90 days. Outside of the U.S., the majority of the Company’s customers have payment terms ranging between 90 and 150 days. Please refer to Note 2, Summary of Significant Accounting Policies for discussion of the credit risk associated with accounts receivable, net.

The following tables summarize an analysis of the change in reserves for discounts and allowances for each of the periods indicated:

	Chargebacks			Rebates			Prompt Pay			Other Accruals			Total
	(in thousands)
Balance, as of December 31, 2023	$	27,486		$	98,194		$	3,831		$	35,261		$	164,772
Provision		41,935			72,684			8,585			35,527			158,731
Adjustments relating to prior periods		783			(5,171	)		—			(88	)		(4,476	)
Payments/credits		(54,393	)		(62,647	)		(8,462	)		(33,210	)		(158,712	)
Balance, as of June 30, 2024	$	15,811		$	103,060		$	3,954		$	37,490		$	160,315

	Chargebacks			Rebates			Prompt Pay			Other Accruals			Total
	(in thousands)
Balance, as of December 31, 2022	$	417		$	67,493		$	3,343		$	23,445		$	94,698
Provision		6,287			60,824			7,228			32,220			106,559
Adjustments relating to prior periods		—			(3,437	)		—			—			(3,437	)
Payments/credits		(6,434	)		(45,592	)		(6,976	)		(24,820	)		(83,822	)
Balance, as of June 30, 2023	$	270		$	79,288		$	3,595		$	30,845		$	113,998

The following table summarizes the total reserves above included in the Company’s unaudited condensed consolidated balance sheets for each of the periods indicated:

	As of June 30, 2024		As of December 31, 2023
	(in thousands)
Reduction to accounts receivable	$	55,663	$	64,697
Component of accrued expenses		104,652		100,075
Total reserves	$	160,315	$	164,772