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REVENUE RECOGNITION AND RELATED ALLOWANCES
 3 Months Ended
Mar. 31, 2026
Revenue from Contract with Customer [Abstract]  
REVENUE RECOGNITION AND RELATED ALLOWANCES REVENUE RECOGNITION AND RELATED ALLOWANCES
Revenue Recognition
Revenue is recognized using the following steps:
•Identification of the contract, or contracts, with a customer;
•Identification of the performance obligations in the contract;
•Determination of the transaction price, including the identification and estimation of variable consideration;
•Allocation of the transaction price to the performance obligations in the contract; and
•Recognition of revenue when the Company satisfies a performance obligation.
Revenues are primarily derived from sales of generic, rare disease, and brands portfolio pharmaceutical products, certain milestone payments, royalties, and other pharmaceutical services. Revenue is recognized when obligations under the terms of contracts with customers are satisfied, which generally occurs when control of the products is transferred to the customer. Revenue is measured at the net transaction price equal to the gross invoice price reduced by estimated variable consideration. Estimates of variable consideration are updated each reporting period based on available historical data, contractual terms, and management’s judgment regarding current market conditions. The Company generally does not have incremental costs to obtain contracts that would otherwise not have been incurred. The Company does not adjust revenue for the promised amount of consideration for the effects of a significant financing component because its customers generally pay within 100 days.
All revenue recognized in the accompanying unaudited condensed consolidated statements of operations is considered to be revenue from contracts with customers. The following table depicts the disaggregation of revenue:
Three Months Ended March 31,
Products and Services (in thousands)20262025
Rare Disease and Brands
Cortrophin Gel$75,119 $52,850 
ILUVIEN and YUTIQ (1)
19,255 16,109 
Rare Disease total net revenues$94,374 $68,959 
Brands12,328 25,123 
Brand royalties and other revenues 21,540 — 
Rare Disease and Brands total net revenues$128,242 $94,082 
Generics and Other
Generic pharmaceutical products$105,402 $98,678 
Other generic revenues 3,818 4,362 
Generics and Other total net revenues109,220 103,040 
Total net revenues$237,462 $197,122 
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(1)There were no sales of YUTIQ in Q1 2026 as the Company transitioned promotional efforts in the U.S. from YUTIQ to ILUVIEN, which has a combined label of DME and NIU-PS during the second quarter of 2025.
In the three months ended March 31, 2026 and 2025, all of the Company’s revenue was recognized at a point in time, when the performance obligation in the contracts with customers had been satisfied, generally when control of the products was transferred to the customer. The Company estimates and recognizes royalty revenue as the related sales occur, and recognizes milestone revenue as the milestones are achieved. In the three months ended March 31, 2026, the Company did not recognize any revenue associated with performance obligations satisfied over time.
As of March 31, 2026, the aggregate amount of the transaction price allocated to the remaining performance obligations for all open contract manufacturing customer contracts was $3.2 million, which consists of firm orders for contract manufactured products. ANI will recognize revenue for these performance obligations as they are satisfied, which is anticipated within six months.
In January 2026, Novitium Pharma LLC (“Novitium”), a subsidiary of the Company, entered into an IP license agreement (“Harmony Agreement”) with Harmony Biosciences LLC (“Harmony”), which includes an exclusive license to intellectual property that will expand the intellectual property estate of the Harmony, as well as a co-exclusive license, with which Harmony and Novitium intend to develop a novel formulation of pitolisant in broad CNS indications outside of sleep/wake. Under the Harmony Agreement, the Company received an upfront license fee of $15.0 million, which was recognized as revenue within the condensed consolidated statements of operations for the three months ended March 31, 2026. In addition, we will earn low single digit royalties on net sales of pitolisant-based products. The initial royalty revenue was recognized in the three-month period ended March 31, 2026. In addition, we expect to receive $10.0 million upon achievement of certain development milestones, which are expected to be achieved in the second and third quarters of 2026.
Variable Consideration
Sales of pharmaceutical products are subject to variable consideration due to chargebacks, government rebates, returns, administrative and other rebates, and cash discounts. Estimates for these elements of variable consideration require significant judgment.
The following table summarizes activity in the unaudited condensed consolidated balance sheets for accruals and allowances for the three months ended March 31, 2026 and 2025, respectively:
Accruals for Chargebacks, Returns, and Other Allowances
(in thousands)ChargebacksAccrued Government
Rebates		Returned Goods ReserveAdministrative
Fees and Other
Rebates		Prompt
Payment
Discounts
Balance at December 31, 2024$105,630 $18,714 $39,274 $19,588 $6,258 
Accruals161,858 13,449 9,907 20,567 8,305 
Credits/Payments(151,817)(9,519)(6,717)(18,368)(7,829)
Balance at March 31, 2025 (1)$115,671 $22,644 $42,464 $21,787 $6,734 
Balance at December 31, 2025$143,452 $43,154 $49,504 $28,913 $8,633 
Accruals179,004 15,964 10,037 21,243 8,946 
Credits/Payments (219,548)(20,701)(16,489)(23,623)(10,331)
Balance at March 31, 2026 (1)$102,908 $38,417 $43,052 $26,533 $7,248 
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(1)Accounts receivable, net in the unaudited condensed consolidated balance sheets at March 31, 2026 includes $102.9 million of Chargebacks, $18.8 million of Administrative Fees and Other Rebates and $7.2 million of Prompt Payment Discounts. Administrative Fees and Other Rebates of $7.7 million is included in accrued expenses and other in the unaudited condensed consolidated balance sheets.
Credit Concentration

ANI’s customers are primarily national wholesalers, specialty pharmacies, retail pharmacy chains, other U.S. and international distributors, group purchasing organizations, and hospitals and healthcare providers.
During each of the three months ended March 31, 2026 and 2025, there were four customers that accounted for 10% or more of net revenues. As of March 31, 2026, accounts receivable from four customers totaled 73% of accounts receivable, net.
The four customers that accounted for 10% or more of net revenues during the three months ended March 31, 2026 and the four customers that accounted for 10% or more of net revenues during the three months ended March 31, 2025 each represent the total percentage of net revenues as follows:
Three Months Ended March 31,
20262025
Customer 117 %25 %
Customer 210 %11 %
Customer 316 %12 %
Customer 418 %16 %