v3.26.1
Revenue
3 Months Ended
Mar. 31, 2026
Revenue  
Revenue

2.        Revenue

The Company launched LOQTORZI in January 2024. Net revenue for sales of UDENYCA, YUSIMRY and CIMERLI are classified within discontinued operations (refer to Note 6. Discontinued Operations). All LOQTORZI net product revenue

was generated in the United States. The Company’s net revenue from continuing operations was as follows:

Three Months Ended

March 31, 

(in thousands)

  ​ ​ ​

2026

2025

LOQTORZI

$

11,803

$

7,348

Other revenue

 

507

 

251

Total net revenue

$

12,310

$

7,599

For continuing operations, gross product revenues by significant Customers as a percentage of total gross product revenues were as follows:

Three Months Ended

 

March 31, 

2026

 

2025

 

McKesson Corporation

37

%

46

%

Cencora, Inc.

42

%

33

%

Cardinal Health, Inc.

20

%

20

%

Product Sales Discounts and Allowances

Chargebacks and discounts for prompt payment are recorded as a reduction in trade receivables, and the remaining reserve balances are classified as current liabilities on the condensed consolidated balance sheets.

In connection with the sales of the CIMERLI ophthalmology franchise and the YUSIMRY franchise in 2024 and the UDENYCA franchise in 2025, the Company retained and continued to be responsible for sales discounts and allowance liabilities incurred prior to March 1, 2024 for CIMERLI, June 26, 2024 for YUSIMRY and April 11, 2025 for UDENYCA.

Sales discounts and allowances incurred on behalf of the respective counterparties following the close of the Sale Transactions in accordance with the Company’s Transition Services Agreement (the “CIMERLI TSA”) with Sandoz Inc. (“Sandoz”) for CIMERLI, the Company’s Transition Services Agreement (the “YUSIMRY TSA”) with Hong Kong King-Friend Industrial Company Ltd. (“HKF”) for YUSIMRY and the Company’s Transition Services Agreement with Intas Pharmaceuticals Ltd. (“Intas”) (the “UDENYCA TSA” and, together with the CIMERLI TSA and the YUSIMRY TSA, collectively the “TSA” or the “TSAs”) for UDENYCA are reflected within TSA receivables, net and TSA payables and accrued liabilities in the condensed consolidated balance sheets and are excluded from the below table (see Note 6. Discontinued Operations).

The activities and ending reserve balances for each significant category of discounts and allowances that constitute variable consideration were as follows:

Three Months Ended March 31, 2026

  ​ ​ ​

Chargebacks

  ​ ​ ​

  ​ ​ ​

Other Fees,

  ​ ​ ​

and Discounts

Co-pay

for Prompt

Assistance

(in thousands)

Payment

Rebates

and Returns

Total

Balances at December 31, 2025

$

2,446

$

20,323

$

10,074

$

32,843

Provision related to sales made in:

Current year

2,787

576

796

4,159

Prior years - increase (decrease)

(78)

740

228

890

Payments and customer credits issued

 

(3,018)

(2,926)

(1,045)

(6,989)

Balances at March 31, 2026

$

2,137

$

18,713

$

10,053

$

30,903

Three Months Ended March 31, 2025

  ​ ​ ​

Chargebacks

  ​ ​ ​

  ​ ​ ​

Other Fees,

  ​ ​ ​

and Discounts

Co-pay

for Prompt

Assistance

(in thousands)

Payment

Rebates

and Returns

Total

Balances at December 31, 2024

$

110,778

$

123,738

$

41,129

$

275,645

Provision related to sales made in:

Current year

 

139,766

34,476

22,611

196,853

Prior years - increase (decrease)

797

3,545

(773)

3,569

Payments and customer credits issued

 

(182,426)

 

(47,061)

 

(29,927)

 

(259,414)

Balances at March 31, 2025

$

68,915

$

114,698

$

33,040

$

216,653