v3.25.2
Revenues
 6 Months Ended
Jul. 04, 2025
Revenue from Contract with Customer [Abstract]  
REVENUES REVENUES
Revenues consisted of the following (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Product revenues:
Gross product revenues$745,280 $604,291 $1,466,991 $1,168,076 
Discounts and allowances(225,266)(166,710)(433,694)(351,972)
Net product revenues520,014 437,581 1,033,297 816,104 
Collaboration revenues:
License revenues49,301 194,986 91,781 239,662 
Collaboration services revenues(1,054)4,611 (1,370)6,638 
Collaboration revenues
48,247 199,597 90,411 246,300 
Total revenues$568,261 $637,178 $1,123,708 $1,062,404 
The percentage of total revenues by customer who individually accounted for 10% or more of our total revenues were as follows:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Affiliates of Cencora, Inc.
22 %14 %22 %16 %
Affiliates of McKesson Corporation18 %14 %18 %15 %
Affiliates of CVS Health Corporation16 %13 %15 %15 %
Accredo Health, Incorporated12 %9 %12 %10 %
Affiliates of Optum Specialty Pharmacy9 %8 %10 %9 %
Ipsen Pharma SAS7 %30 %6 %21 %
The percentage of trade receivables by customer who individually accounted for 10% or more of our trade receivables were as follows:
June 30, 2025December 31, 2024
Affiliates of McKesson Corporation25 %23 %
Affiliates of Cencora, Inc.
25 %17 %
Affiliates of CVS Health Corporation15 %20 %
Ipsen Pharma SAS15 %18 %
Cardinal Health, Inc.11 %10 %
Total revenues by geographic region were as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
U.S.$524,768 $440,476 $1,041,952 $822,413 
Europe37,033 190,559 69,739 226,262 
Japan6,460 6,143 12,017 13,729 
Total revenues$568,261 $637,178 $1,123,708 $1,062,404 
Total revenues include net product revenues attributed to geographic regions based on the ship-to location and license and collaboration services revenues attributed to geographic regions based on the location of our collaboration partners’ headquarters.
Net product revenues and license revenues are recorded in accordance with Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers (Topic 606). License revenues include the recognition of the portion of milestone payments allocated to the transfer of intellectual property licenses for which it had become probable in the current period that the milestone would be achieved and a significant reversal of revenues would not occur, as well as royalty revenues and our share of profits under our collaboration agreement with Genentech. Collaboration services revenues are recorded in accordance with ASC Topic 808, Collaborative Arrangements. Collaboration services revenues include the recognition of deferred revenues for the portion of upfront and milestone payments allocated to our research and development services performance obligations, development cost reimbursements earned under our collaboration agreements, product supply revenues, net of product supply costs and the royalties we paid on sales of products containing cabozantinib by our collaboration partners. License revenues and collaboration services revenues are presented in collaboration revenues in the accompanying Condensed Consolidated Statements of Income.
Net product revenues by product were as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
CABOMETYX$517,890 $433,341 $1,028,762 $809,758 
COMETRIQ 2,124 4,240 4,535 6,346 
Net product revenues$520,014 $437,581 $1,033,297 $816,104 
Product Sales Discounts and Allowances
The activities and ending reserve balances for each significant category of discounts and allowances (which constitute variable consideration) were as follows (in thousands):
Chargebacks, Discounts for Prompt Payment and Other
Other Customer Credits/Fees and Co-pay Assistance
Rebates
Total
Balance at December 31, 2024
$25,267 $24,945 $37,431 $87,643 
Provision related to sales made in:
Current period302,952 35,189 105,323 443,464 
Prior periods(4,349)(2,099)(3,322)(9,770)
Payments and customer credits issued(284,424)(41,634)(98,557)(424,615)
Balance at June 30, 2025
$39,446 $16,401 $40,875 $96,722 
The allowance for chargebacks, discounts for prompt payment and other are recorded as a reduction of trade receivables, net, and the remaining reserves are recorded as rebates and fees due to customers in the accompanying Condensed Consolidated Balance Sheets.
Contract Assets and Liabilities
We receive payments from our collaboration partners based on billing schedules established in each contract. Amounts are recorded as accounts receivable when our right to consideration is unconditional. We may also recognize revenue in advance of the contractual billing schedule and such amounts are recorded as a contract asset when recognized. We may be required to defer recognition of revenue for upfront and milestone payments until we perform our obligations under these arrangements, and such amounts are recorded as deferred revenue upon receipt or when due. For those contracts that have multiple performance obligations, contract assets and liabilities are reported on a net basis at the contract level. Contract assets are primarily related to Ipsen Pharma SAS (Ipsen) and contract liabilities are primarily related to deferred revenues from Takeda Pharmaceutical Company Limited (Takeda).
Contract assets and liabilities were as follows (in thousands):
June 30, 2025December 31, 2024
Contract assets(1)
$1,528 $369 
Contract liabilities:
Current portion(2)
$2,164 $2,739 
Non-current portion(3)
2,621 3,392 
Total contract liabilities$4,785 $6,131 
____________________
(1) Presented in right-of-use assets and other non-current assets in the accompanying Condensed Consolidated Balance Sheets.
(2) Presented in other current liabilities in the accompanying Condensed Consolidated Balance Sheets.
(3) Presented in other non-current liabilities in the accompanying Condensed Consolidated Balance Sheets.
During the three and six months ended June 30, 2025, we recognized $1.2 million and $2.4 million, respectively, in revenues that were included in the beginning deferred revenues balance for those periods, as compared to $1.5 million and $3.0 million, respectively, for the corresponding prior year periods.
During the three and six months ended June 30, 2025, we recognized $51.2 million and $93.7 million, respectively, in revenues for performance obligations satisfied in previous periods, as compared to $195.4 million and $241.3 million, respectively, for the corresponding prior year periods. During the three and six months ended June 30, 2025, such revenues were primarily related to royalty payments allocated to our license performance obligations for our collaborations with Ipsen and Takeda. During the three and six months ended June 30, 2024, such revenues were primarily related to the
recognition of license revenues for the achievement of a commercial milestone payment and royalty payments allocated to our license performance obligations for our collaborations with Ipsen and Takeda.
As of June 30, 2025, $33.8 million of the combined transaction prices for our Ipsen and Takeda collaborations were allocated to research and development services performance obligations that had not yet been satisfied. See “Note 4. Collaboration Agreements and Business Development Activities” of the “Notes to Consolidated Financial Statements” included in Part II, Item 8 of our Fiscal 2024 Form 10-K for additional information about the expected timing to satisfy these performance obligations.