Company: AGIO
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001439222-25-000009
Chunk: 785

Company: AGIOS PHARMACEUTICALS, INC.
Filing Date: 2025-02-13
Form: 10-K
Item: Item 7
Chunk 785
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 volatility has been determined using Agios' historical volatilities for a period equal to the expected term of the option grant.

Risk-free rate. The risk-free rate is based on the yield curve of U.S. Treasury securities with periods commensurate with the expected term of the options being valued.

Dividends. We have never paid, and do not anticipate paying, any cash dividends in the foreseeable future, and, therefore, use an expected dividend yield of zero in the option-pricing model. 

Forfeitures. We account for forfeitures as they occur and, therefore, do not estimate forfeitures.

For awards subject to service-based vesting conditions, we recognize stock-based compensation expense equal to the grant date fair value of stock options on a straight-line basis over the requisite service period. For awards subject to performance-based vesting conditions, we recognize stock-based compensation expense if the performance condition is considered probable of achievement using management’s best estimates.

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Results of Operations

Comparison of years ended December 31, 2024, 2023 and 2022

Revenues

(In thousands)202420232022Revenues:Product revenue, net$36,498 $26,823 $11,740 Milestone revenue— — 2,500 Total revenue$36,498 $26,823 $14,240 

Total Revenue – 2024 vs. 2023 – The increase in total revenue of $9.7 million in 2024 compared to 2023 was due to increased volume associated with PYRUKYND®.

Total Revenue – 2023 vs. 2022 – The increase in total revenue of $12.6 million in 2023 compared to 2022 was due to increased product revenue associated with PYRUKYND®, which was approved by the FDA in February 2022, partially offset by revenue recognized in 2022 associated with the licensing of intellectual property for our Friedreich's Ataxia preclinical program.

Total Operating Expenses(In thousands)202420232022Operating expensesCost of sales$4,165 $2,881 $1,704 Research and development301,286 295,526 279,910 Selling, general and administrative156,784 119,903 121,673 Total Operating Expenses$462,235 $418,310 $403,287 

Total Operating Expenses – 2024 vs. 2023 – The increase in total