Concentration of Credit Risk

12 Months Ended

Dec. 31, 2015

Concentration of Credit Risk

Concentrations of Credit Risk

Note 3. Concentrations of Credit Risk

In December 2009, we entered into a license, development and commercialization agreement with Eli Lilly and Company (“Lilly”). In November 2009, we entered into a collaboration and license agreement with Novartis. The concentration of credit risk related to our collaborative partners is as follows:

	Percentage of Total
	Contract Revenues for the
	Years Ended,
	December 31,
	2015		2014		2013
	(in millions)
Collaboration Partner A	83	%	88	%	86	%
Collaboration Partner B	17	%	12	%	14	%

Collaboration Partner A and Collaboration Partner B comprised in the aggregate 39% and 26% of the accounts receivable balance as of December 31, 2015 and 2014, respectively.

In November 2011, we began commercialization and distribution of JAKAFI to a number of customers. Our product revenues are concentrated in a number of these customers. The concentration of credit risk related to our product revenues is as follows:

	Percentage of Total Net
	Product Revenues for the
	Years Ended,
	December 31,
	2015		2014		2013
	(in millions)
Customer A	28	%	29	%	29	%
Customer B	19	%	22	%	17	%
Customer C	13	%	10	%	11	%
Customer D	9	%	9	%	11	%

We are exposed to risks associated with extending credit to customers related to the sale of products. Customer A, Customer B, Customer C and Customer D comprised in the aggregate 40% and 54% of the accounts receivable balance as of December 31, 2015 and 2014, respectively.