DEFERRED REVENUE

6 Months Ended

Jun. 30, 2017

DEFERRED REVENUE

DEFERRED REVENUE

11. DEFERRED REVENUE

Deferred revenue consists of the following (in thousands):

	Balance as of
	June 30,		December 31,
	2017		2016
Qsymia deferred revenue - current	$	—	$	17,558
STENDRA deferred revenue - current		1,694		1,616
Deferred revenue - current	$	1,694	$	19,174
STENDRA deferred revenue - non-current	$	5,732	$	6,449

The Company ships units of Qsymia through a distribution network that includes certified retail pharmacies. The Company was not initially able to reliably estimate expected returns of Qsymia at the time of shipment, and therefore recognized revenue when units were dispensed to patients through prescriptions, at which point, the product is not subject to return, or when the expiration period had ended. Qsymia deferred revenue at December 31, 2016 consisted of product shipped to the Company’s wholesalers, certified retail pharmacies and certified home delivery pharmacy services networks, but not yet dispensed to patients through prescriptions, net of prompt payment discounts. Beginning in the first quarter of 2017, the Company began recognizing revenue from the sales of Qsymia upon shipment and recording a reserve for expected returns at the time of shipment. Accordingly, all of the Qsymia deferred revenue, net of appropriate reserves, was recognized as revenue as of January 1, 2017 (See Note 1).

SPEDRA deferred revenue relates to a prepayment for future royalties on sales of SPEDRA.