Collaboration, Licensing and Other Arrangements (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Total Revenue from Collaboration and Services

Revenue from collaborations and services were as follows (in thousands):

	Year Ended December 31,
	2023		2022		2021
UT CSA Agreement (1)	$	52,025	$	24,826	$	267
UT License Agreement (2)		782		2,426		34,145
Cipla License and Distribution Agreement		147		147		147
Vertice Pharma Co-Promotion Agreement		—		325		1,147
Other		—		200		323
Receptor CLA		—		—		245
Total revenue from collaborations and services	$	52,954	$	27,924	$	36,274

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(1)Amounts consist of revenue recognized for Manufacturing Services and sales of product to UT for the periods presented.

(2)Amounts consist of revenue recognized for Next-Gen R&D Services and R&D Services and License for the periods presented.

Schedule of Deferred Revenue Related to Revenue Recognized for Collaborations and Services

The activity related to deferred revenue and the related revenue recognized for collaborations and services is as follows (in thousands):

	December 31, 2023			December 31, 2022
Deferred revenue:
Beginning balance	$	39,417		$	20,370
Additions		92,416			46,971
Revenue — collaborations and services		(52,954	)		(27,924	)
Ending balance	$	78,879		$	39,417

Schedule of Effect of Modification on Transaction Price

The Company determined that the capital and continuous improvements should be combined with the manufacturing services performance obligation and the alternative manufacturing processes should

be combined with the Next-Gen R&D Services. The total revised anticipated cash flows of $722.3 million from the transaction was allocated to the three distinct performance obligations as follows (dollars in millions).

	Anticipated
	Cash Flow		Revenue Allocation		Recognition Method	Progress Measure	Revenue Recognition
Total anticipated cash flow(1)	$	722.3
Distinct Performance Obligation
R&D Services and License			$	—	Over time	Ratably	Aug 2021 - Oct 2021
Next-Gen R&D Services			$	10.0	Over time	Input	% of completion of costs
Manufacturing Services and    Product Sales(2)			$	712.3	Point in time		Transfer of control

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(1)The total anticipated cash flow includes a transaction price of $120.0 million for the contractual obligations under the CSA for the Manufacturing Services and the Next-Gen R&D Services performance obligations and $602.3 million for future supply of Tyvaso DPI over the remaining term of the CSA.

(2)The Manufacturing Services performance obligation will be recognized as control of manufactured products is transferred to UT. The modification did not result in a cumulative catch-up adjustment as a result of the revenue being deferred for the performance obligations that were affected by the modification. The allocation of the transaction price for the Manufacturing Services includes a material right related to the Company’s estimated production of product in the amount of $220.8 million. The Company will sell product to UT under individual purchase orders, which represent distinct performance obligations. The ultimate cash flows may vary as manufacturing purchase orders are received.

United Therapeutics Corporation

Schedule of Total Revenue from Collaboration and Services

Total revenue from UT was as follows (in thousands):

	Year Ended December 31,
	2023		2022		2021
UT Revenue
UT CSA Agreement	$	52,025	$	24,826	$	267
UT License Agreement		782		2,426		34,145
Royalties — Collaborations (1)		71,979		15,599		—
Total revenue from UT	$	124,786	$	42,851	$	34,412

_________________________

Amounts consist of royalties associated with the UT License Agreement. The contract assets related to the royalties is included in prepaid expense and other current assets in the consolidated balance sheets