Company: AGIO
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001439222-25-000036
Chunk: 79

Company: AGIOS PHARMACEUTICALS, INC.
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 1
Chunk 79
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Government RebatesGovernment 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 / ReplacementWe estimate the amount of product sales that may be returned by Customers or replaced by Agios and record this estimate as a reduction of revenue in the period the related product revenue is recognized. We currently estimate product return and replacement liabilities 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 three months ended March 31, 2025:(In thousands)Contractual AdjustmentsGovernment RebatesReturns/ ReplacementTotalBalance at December 31, 2024$253 $1,354 $489 $2,096 Current provisions relating to sales in the current year422 555 124 1,101 Adjustments relating to prior years(38)— — (38)Payments/returns relating to sales in the current year(334)— — (334)Payments/returns relating to sales in the prior years(201)(415)— (616)Balance at March 31, 2025$102 $1,494 $613 $2,209 Total revenue-related reserves above, included in our condensed consolidated balance sheets, are summarized as follows:(In thousands)March 31, 2025December 31, 2024Reduction of accounts receivable$78 $124 Component of accrued expenses 2,131 1,972 Total revenue-related reserves$2,209 $2,096 The following table presents changes in our contract assets during the three months ended March 31, 2025:(In thousands)December 31, 2024AdditionsDeductionsMarch 31, 2025Contract assets(1)Accounts receivable, net$4,109 $9,789 $(10,554)$3,344 

(1)  Additions to contract assets relate to amounts billed to Customers for product sales and deductions to contract assets primarily relate to collection of receivables