Concentration of Credit Risk

6 Months Ended

Jun. 30, 2017

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				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Collaboration Partner A	—	%	61	%	28	%	8	%
Collaboration Partner B	—	%	39	%	72	%	92	%

Collaboration Partner A and Collaboration Partner B comprised in the aggregate 21% and 23% of the accounts receivable balance as of June 30, 2017 and December 31, 2016, 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 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				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Customer A	23	%	26	%	25	%	27	%
Customer B	16	%	16	%	16	%	17	%
Customer C	13	%	13	%	13	%	13	%
Customer D	9	%	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 46% and 41% of the accounts receivable balance as of June 30, 2017 and December 31, 2016, respectively.

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