Concentration of credit Risk

9 Months Ended

Sep. 30, 2016

Concentration of credit Risk

Concentrations of credit Risk

5.     Concentration 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				Percentage of Total
	Contract Revenues for the				Contract Revenues for the
	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2016		2015		2016		2015
Collaboration Partner A	—	%	61	%	7	%	76	%
Collaboration Partner B	100	%	39	%	93	%	24	%

Collaboration Partner A and Collaboration Partner B comprised in the aggregate 23% and 39% of the accounts receivable balance as of September 30, 2016 and December 31, 2015, 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 JAKAFI product revenues is as follows:

	Percentage of Total Net				Percentage of Total Net
	Product Revenues for the				Product Revenues for the
	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2016		2015		2016		2015
Customer A	25	%	29	%	26	%	28	%
Customer B	19	%	18	%	18	%	19	%
Customer C	13	%	13	%	13	%	13	%
Customer D	8	%	9	%	8	%	9	%

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 40% of the accounts receivable balance as of September 30, 2016 and December 31, 2015, respectively.

The concentration of credit risk relating to ICLUSIG product revenues or accounts receivable is not significant.