Company: SRPT
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000950170-25-029973
Chunk: 11

Company: Sarepta Therapeutics, Inc.
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1B
Chunk 11
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 which was fully amortized as of December 31, 2023. Please refer to Note 3, License and Collaboration Agreements for further discussion of the Roche Agreement.

Cost of sales (excluding amortization of in-licensed rights)

Our cost of sales (excluding amortization of in-licensed rights) consists of inventory costs that relate to sales of our products and the related overhead costs and royalty payments primarily to BioMarin and UWA for our PMO Products and to Nationwide for ELEVIDYS. Prior to receiving regulatory approval for our products, we expensed manufacturing and material costs as research and development expenses. For the PMO Products, all previously expensed manufacturing costs had been fully consumed prior to 2023. For ELEVIDYS sold in 2024, a portion of related manufacturing costs incurred had previously been expensed as research and development expenses. For ELEVIDYS sold in 2023, the majority of related manufacturing costs incurred had previously been expensed as research and development expenses. If product related costs had not previously been expensed as research and development expenses prior to receiving FDA approval, the incremental inventory costs related to ELEVIDYS sold, including products sold to Roche under the Roche Agreement, would have been approximately $100.8 million and $33.9 million higher for 2024 and 2023, respectively.

The following table summarizes the components of our cost of sales (excluding amortization of in-licensed rights) for the periods indicated:

    For the Year Ended December 31,

    2024

    2023

    Change

    Change

    (in thousands)

    $

    %

    Inventory costs related to products sold (excluding products sold to Roche**)
     
    $
    249,108

    $
    108,988

    $
    140,120

    129
    %

    Royalty payments

    47,744

    39,537

    8,207

    21
    %

    Inventory costs related to products sold to Roche**

    22,247

    1,818

    20,429

    NM*

    Total cost of sales (excluding amortization of in-licensed rights)
     
    $
    319,099

    $
    150,343

    $
    168,756

    112
    %

* NM: not meaningful

** See above for further details regarding product supply sold to Ro