Concentrations of Credit Risk and Current Expected Credit Losses

12 Months Ended

Dec. 31, 2024

Concentrations of Credit Risk and Current Expected Credit Losses

Note 4. Concentration of Credit Risk and Current Expected Credit Losses

In November 2009, we entered into a collaboration and license agreement with Novartis. In December 2009, we entered into a license, development and commercialization agreement with Lilly. The above collaboration partners comprised, in aggregate, 19% and 20% of the accounts receivable balance as of December 31, 2024 and 2023, respectively. For further information relating to these collaboration and license agreements, refer to Note 7.

In November 2011, we began commercialization and distribution of JAKAFI and in October 2021, we began commercialization and distribution of OPZELURA. Our product revenues are concentrated in a number of customers these products. The concentration of credit risk related to our JAKAFI and OPZELURA product revenues is as follows:


	Percentage of Total Net Product Revenues for the Years Ended, December 31,
	2024		2023		2022
Customer A	15	%	17	%	19	%
Customer B	10	%	10	%	11	%
Customer C	19	%	18	%	18	%
Customer D	8	%	10	%	10	%
Customer E	13	%	8	%	14	%
Customer F	10	%	10	%	1	%

We are exposed to risks associated with extending credit to customers related to the sale of products. Customers A, B, C, D, E and F comprised, in the aggregate, 52% and 40% of the accounts receivable balance as of December 31, 2024 and 2023, respectively. The concentration of credit risk relating to our other product revenues or accounts receivable is not significant.

We assessed our collaborative and customer receivable assets as of December 31, 2024 according to our accounting policy for applying reserves for expected credit losses, noting minimal history of uncollectible receivables and the continued perceived creditworthiness of our third party sales relationships, upon which the expected credit losses were considered de minimis.