v3.26.1
Product Revenue
 6 Months Ended
Jun. 30, 2026
Revenue from Contract with Customer [Abstract]  
Product Revenue Product Revenue
We generate product revenue from sales of PYRUKYND® and AQVESME™ in the United States to a limited number of specialty distributors and specialty pharmacy providers, and from sales of PYRUKYND® to Avanzanite and NewBridge outside of the United States, or collectively, the Customers. These Customers subsequently resell PYRUKYND® and AQVESME™ to pharmacies or dispense PYRUKYND® and AQVESME™ directly to patients. In addition to distribution agreements with Customers, we enter into arrangements with healthcare providers and payors that provide for government-mandated and/or privately-negotiated rebates, chargebacks and discounts with respect to the purchase of PYRUKYND® and AQVESME™.
The performance obligation related to the sale of PYRUKYND® and AQVESME™ is satisfied and revenue is recognized when the Customer obtains control of the product, which occurs at a point in time, typically upon delivery to the Customer.
Product revenue, net, was as follows:
Three Months Ended June 30,Six Months Ended June 30,
(In thousands)2026202520262025
Product revenue, net
United States$40,917 $12,151 $59,768 $20,877 
Rest of world3,828 304 5,723 304 
Total product revenue, net$44,745 $12,455 $65,491 $21,181 
Reserves for Variable Consideration
Revenues from product sales are recorded at the net sales price, or transaction price, which includes estimates of variable consideration for which reserves are established and result from contractual adjustments, government rebates, returns and other allowances that are offered within the contracts with our Customers, healthcare providers, payors and other indirect customers relating to the sale of our products.
Contractual Adjustments
We generally provide Customers with discounts, including prompt pay discounts, and allowances that are explicitly stated in the contracts and are recorded as a reduction of revenue in the period the related product revenue is recognized. In addition, we receive sales order management, data and distribution services from certain Customers.
Chargebacks and discounts represent the estimated obligations resulting from contractual commitments to sell products to qualified healthcare providers at prices lower than the list prices charged to Customers who directly purchase the product from us. Customers charge us for the difference between what they pay for the product and the ultimate selling price to the qualified healthcare providers. These reserves are estimated using the expected value method, based upon a range of possible outcomes that are probability-weighted for the estimated channel mix and are established in the same period that the related revenue is recognized, resulting in a reduction of product revenue.
Government Rebates
Government rebates include Medicare, TriCare, and Medicaid rebates, which we estimate using the expected value method, based upon a range of possible outcomes that are probability-weighted for the estimated payor mix. These reserves are recorded in the same period the related revenue is recognized, resulting in a reduction of product revenue. For Medicare, we also estimate the number of patients for whom we will owe an additional liability under the Medicare Part D Manufacturer Discount Program.
Returns / Replacement / Other Allowances
We estimate the amount of product sales that may be returned by Customers or replaced by Agios, or other allowances for revenue not expected to be sold by Customers, and record these estimates as a reduction of revenue in the period the related product revenue is recognized. We currently estimate product return and replacement liabilities, and the revenue reserve related to other allowances using the expected value method, based on available industry data, including our visibility into the inventory remaining in the distribution channel.
The following table summarizes balances and activity in each of the product revenue allowance and reserve categories for the six months ended June 30, 2026:
(In thousands)Contractual AdjustmentsGovernment RebatesReturns/ Replacement/ OtherTotal
Balance at December 31, 2025$182 $1,274 $1,040 $2,496 
Current provisions relating to sales in the current year1,817 3,738 4,519 10,074 
Adjustments relating to prior years— (113)(370)(483)
Payments/returns relating to sales in the current year(1,459)(1,016)— (2,475)
Payments/returns relating to sales in the prior years(174)(895)(16)(1,085)
Balance at June 30, 2026$366 $2,988 $5,173 $8,527 
Total revenue-related reserves above, included in our condensed consolidated balance sheets, are summarized as follows:
(In thousands)June 30, 2026December 31, 2025
Reduction of accounts receivable$369 $174 
Reduction of contract assets3,865 — 
Component of accrued expenses 4,293 2,322 
Total revenue-related reserves$8,527 $2,496 
The following table presents changes in our contract assets during the six months ended June 30, 2026:
(In thousands)December 31, 2025AdditionsDeductionsJune 30, 2026
Accounts receivable, net (1)
$10,577 $67,126 $(57,591)$20,112 
Contract assets (2)
— 4,104 — 4,104 
Total contract assets$10,577 $71,230 $(57,591)$24,216 
(1) Additions to accounts receivable, net relate to amounts billed to Customers for product sales and deductions from accounts receivable, net primarily relate to collection of receivables during the reporting period.
(2) Additions to contract assets relate to amounts unbilled to Customers for net product sales, and deductions from contract assets relate to amounts billed to Customers for product sales.