Company: AGIO
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001439222-25-000089
Chunk: 173

Company: AGIOS PHARMACEUTICALS, INC.
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 8
Chunk 173
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 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 six months ended June 30, 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 year733 1,298 256 2,287 Adjustments relating to prior years(51)(83)— (134)Payments/returns relating to sales in the current year(610)(428)— (1,038)Payments/returns relating to sales in the prior years(202)(462)— (664)Balance at June 30, 2025$123 $1,679 $745 $2,547 Total revenue-related reserves above, included in our condensed consolidated balance sheets, are summarized as follows:(In thousands)June 30, 2025December 31, 2024Reduction of accounts receivable$104 $124 Component of accrued expenses 2,443 1,972 Total revenue-related reserves$2,547 $2,096 The following table presents changes in our contract assets during the six months ended June 30, 2025:(In thousands)December 31, 2024AdditionsDeductionsJune 30, 2025Contract assets(1)Accounts receivable, net$4,109 $23,333 $(22,456)$4,986 

(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 during the reporting period. 

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9. Share-Based Payments

2023 Stock Incentive Plan and Inducement GrantsIn June 2023, our stockholders approved the 2023 Stock Incentive