BIOMARIN PHARMACEUTICAL INC. The following discussion of our financial condition and results of operations should be read in conjunction with our Condensed Consolidated Financial Statements and the related Notes thereto included in this Quarterly Report on Form 10-Q. This discussion contains forward-looking statements that involve risks and uncertainties. When reviewing the discussion below, you should keep in mind the substantial risks and uncertainties that could impact our business. In particular, we encourage you to review the risks and uncertainties described in "Risk Factors" in Part II, Item 1A in this Quarterly Report on Form 10-Q. These risks and uncertainties could cause actual results to differ significantly from those projected in forward-looking statements contained in this report or implied by past results and trends. Forward-looking statements are statements that attempt to forecast or anticipate future developments in our business, financial condition or results of operations. See the section titled "Forward-Looking Statements" that appears at the beginning of this Quarterly Report on Form 10-Q. These statements, like all statements in this report, speak only as of the date of this Quarterly Report on Form 10-Q (unless another date is indicated), and, except as required by law, we undertake no obligation to update or revise these statements in light of future developments. Our Condensed Consolidated Financial Statements have been prepared in accordance withUnited States (U.S. ) generally accepted accounting principles (U.S. GAAP) and are presented inU.S. Dollars (USD). 19
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Management's Discussion and Analysis of Financial Condition and Results of
Operations (continued)
(In millions, except as otherwise disclosed)
Overview
Founded in 1997, we are a global biotechnology company dedicated to transforming
lives through genetic discovery. We develop and commercialize targeted therapies
that address the root cause of genetic conditions. Our robust research and
development capabilities have resulted in multiple innovative commercial
therapies for patients with rare genetic disorders. Our distinctive approach to
drug discovery has produced a diverse pipeline of commercial, clinical, and
pre-clinical candidates that address a significant unmet medical need, have
well-understood biology, and provide an opportunity to be first-to-market or
offer a substantial benefit over existing treatment options. A summary of our
commercial products, as of March 31, 2023 , is provided below:
Commercial Products Indication
Enzyme products:
VIMIZIM (elosulfase alpha) MPS (1) IVA
NAGLAZYME (galsulfase) MPS VI (2)
PALYNZIQ (pegvaliase-pqpz) PKU (3)
BRINEURA (cerliponase alfa) CLN2 (4)
ALDURAZYME (laronidase) MPS I (5)
Other products:
VOXZOGO (vosoritide) Achondroplasia (6)ROCTAVIAN (valoctocogene roxaparvovec) (7) Severe Hemophilia A KUVAN (sapropterin dihydrochloride)
PKU
(1)For the treatment of Mucopolysaccharidosis IV Type A
(2)For the treatment of MPS VI
(3)For the treatment of adult patients with phenylketonuria (PKU)
(4)For the treatment of neuronal ceroid lipofuscinosis type 2
(5)For the treatment of MPS I. ALDURAZYME is marketed worldwide by Sanofi
(6)For the treatment of achondroplasia in children aged five years and older forthe United States (U.S. ), aged two years and older for theEuropean Union (EU) and for various age ranges for other markets
(7)ROCTAVIAN (formerly known as valoctocogene roxaparvovec) for the treatment of
adults with severe hemophilia A was conditionally approved by the
A summary of our on-going clinical development programs, as ofMarch 31, 2023 , is provided below: Target Clinical Development Programs Indication Stage ROCTAVIAN Severe Hemophilia A FDA (1) regulatory review BMN 255 Hyperoxaluria Clinical Phase 1/2 BMN 331 Hereditary Angioedema (HAE) Clinical Phase 1/2
(1)
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Management's Discussion and Analysis of Financial Condition and Results of
Operations (continued)
(In millions, except as otherwise disclosed)Financial Highlights
Key components of our results of operations include the following:
Three Months Ended
March 31,
2023 2022
Total revenues $ 596.4 $ 519.4
Cost of sales $ 126.5 $ 117.0
Research and development (R&D) expense $ 171.8 $ 160.8
Selling, general and administrative (SG&A) expense Gain on sale of nonfinancial assets, net $ -$ (108.0) Net income$ 50.9 $ 120.8
See " Results of Operations " below for discussion of our results for the periods presented.
Uncertainty Relating to Macroeconomic Environment
Conditions in the current macroeconomic environment, such as inflation, changes in interest and foreign currency exchange rates, banking crises, natural disasters, the continuing effects of the COVID-19 pandemic, and supply chain disruptions, could impact our global revenue sources and our overall business operations. The extent and duration of such effects remain uncertain and difficult to predict. We are actively monitoring and managing our response and assessing actual and potential impacts to our operating results and financial condition, as well as developments in our business, which could further impact the developments, trends and expectations described below. See the risk factor, "Our business is affected by macroeconomic conditions." described in " Risk Factors " in Part II, Item 1A of this Quarterly Report on Form 10-Q.
Business Developments
We continued to grow our commercial business and advance our product candidate pipeline during 2023. We believe that the combination of our internal research programs, acquisitions and partnerships will allow us to continue to develop and commercialize innovative therapies for people with serious and life-threatening rare diseases and medical conditions. Below is a summary of key business developments:
Continued Emphasis on Research and Development
Product Launches, Approvals and Mid-stage Product Life Cycle Expansion Opportunities
•ROCTAVIAN: We are working to finalize reimbursement and access with German, French and Italian health insurers. At present, people inGermany with severe hemophilia A, who are eligible for treatment, can access treatment under either Named Patient authorizations or previously secured Outcomes Based Agreements. InMarch 2023 , the FDA determined that the submission of the three-year data analysis from the ongoing Phase 3GENEr8 -1 study, as requested by the FDA, constituted a Major Amendment to our Biologics License Application (BLA) for ROCTAVIAN gene therapy for adults with severe hemophilia A, due to the substantial amount of additional data and set a new Prescription Drug User Fee Act (PDUFA) Target Action Date ofJune 30, 2023 . ROCTAVIAN product expansion opportunities continue, including a clinical study investigating ROCTAVIAN treatment in those with active or prior inhibitors and continued exploration of methods of administering ROCTAVIAN in people with pre-existing antibodies against AAV5. •VOXZOGO: VOXZOGO is currently approved for the treatment of children two years old and older inEurope , for children five years old and older in theU.S. , and for all ages from birth inJapan . During the first quarter of 2023, the global expansion continued, with market access and reimbursement activities progressing. In the coming months, we expect to learn the outcome of our request to expand VOXZOGO access to younger age groups based on favorable results from a Phase 2 study in infants and young children. If age expansions are accepted, this will increase the number of children eligible for VOXZOGO treatment in theU.S. andEurope . We are also engaged in discussions with health authorities concerning the opportunity to leverage VOXZOGO, a natural regulator of bone growth, in other conditions characterized by impaired bone growth. 21
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Management's Discussion and Analysis of Financial Condition and Results of
Operations (continued)
(In millions, except as otherwise disclosed)Select Earlier-stage Development Portfolio
•BMN 255 for hyperoxaluria in chronic liver disease: we have concluded the multi-ascending dose study in healthy human volunteers. InJanuary 2023 , we shared early data that demonstrated a rapid and potent increase in plasma glycolate following treatment with BMN 255. Oral daily dosing at all tested levels for 14 days demonstrated a favorable safety profile and showed sustained elevations of plasma glycolate, which is predicted to have a profound reduction in oxalate excretion in patients. We plan to initiate and enroll an expanded study in patients with chronic liver disease and hyperoxaluria in 2023. We believe the availability of a potent, orally bioavailable, small molecule like BMN 255 may be able to significantly reduce disease and treatment burden in a patient population with significant unmet need. •BMN 331 gene therapy product candidate for Hereditary Angioedema (HAE): Dosing continues in the Phase 1/2 HAERMONY study to evaluate BMN 331, an investigational AAV5-mediated gene therapy for people living withHAE. In January 2023 , we shared that the first participant treated with the 6e13vg/kg dose demonstrated C1-Inhibitor levels that were approaching the therapeutically relevant range. InMarch 2023 , the second sentinel participant was dosed at 6e13vg/kg.
Critical Accounting Estimates
In preparing our Condensed Consolidated Financial Statements in accordance withU.S. GAAP and pursuant to the rules and regulations promulgated by theSecurities and Exchange Commission (theSEC ), we make assumptions, judgments and estimates that can have a significant impact on our net income/loss and affect the reported amounts of certain assets, liabilities, revenues and expenses, and related disclosures. On an ongoing basis, we evaluate our estimates and discuss our critical accounting policies and estimates with the Audit Committee of our Board of Directors. We base our estimates on historical experience and various other assumptions that we believe to be reasonable under the circumstances. Actual results could differ materially from these estimates under different assumptions or conditions. Historically, our assumptions, judgments and estimates relative to our critical accounting estimates have not differed materially from actual results.
There have been no significant changes to our critical accounting estimates
during the three months ended
Recent Accounting Pronouncements
See Note 1 to our accompanying Condensed Consolidated Financial Statements for a description of recent accounting pronouncements, if any, and our expectation of their impact on our results of operations and financial condition.
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Management's Discussion and Analysis of Financial Condition and Results of
Operations (continued)
(In millions of U.S. dollars, except as otherwise disclosed)Results of Operations
Net Product Revenues
Net Product Revenues consisted of the following:
Three Months Ended
March 31,
2023 2022 Change
Enzyme product revenues:
VIMIZIM $ 189.2 $ 183.0 $ 6.2
NAGLAZYME 123.0 128.0 (5.0)
PALYNZIQ 62.4 54.9 7.5
BRINEURA 39.1 36.2 2.9
ALDURAZYME 34.4 24.4 10.0
Total enzyme product revenues $ 448.1 $ 426.5 $ 21.6
VOXZOGO 87.8 19.7 68.1
KUVAN 50.5 59.3 (8.8)
Total net product revenues $ 586.4 $ 505.5 $ 80.9
Net Product Revenues include revenues generated from our approved products. In
the U.S. , our commercial products, except for PALYNZIQ and ALDURAZYME, are
generally sold to specialty pharmacies or end-users, such as hospitals, which
act as retailers. PALYNZIQ is distributed in the U.S. through certain certified
specialty pharmacies under the PALYNZIQ Risk Evaluation and Mitigation Strategy
(REMS) program, and ALDURAZYME is marketed worldwide by Sanofi. Outside the
U.S. , our commercial products are sold to authorized distributors or directly to
government purchasers or hospitals, which act as the end users.
The increase in Net Product Revenues for the three months ended March 31, 2023
as compared to the three months ended March 31, 2022 was primarily attributed to
the following:
•VOXZOGO: continued global market expansion and new patients initiating therapy
following regulatory approvals, particularly in
•ALDURAZYME: the timing of order fulfillment to Sanofi;
•PALYNZIQ: new patients initiating therapy in the
•VIMIZIM: new patients initiating therapy and the timing of orders in countries
that place large government orders, particularly in
•KUVAN: lower sales primarily attributed to continued market erosion due to generic competition.
In certain countries, governments place large periodic orders for our products.
We expect that the timing of these large government orders will continue to be
inconsistent, which may create significant period to period variation in our
revenues.
See the risk factor "The sale of generic versions of KUVAN by generic
manufacturers has adversely affected and will continue to adversely affect our
revenues and may cause a decline in KUVAN revenues faster than expected"
included in Part II, Item 1A of this Quarterly Report for additional information
on risks we face.
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Management's Discussion and Analysis of Financial Condition and Results of
Operations (continued)
(In millions of U.S. dollars, except as otherwise disclosed)
We face exposure to movements in foreign currency exchange rates, primarily the
Euro, which we expect to continue in future periods. We use foreign currency
exchange forward contracts to hedge a percentage of our foreign currency
exposure. The following table shows our Net Product Revenues denominated in USD
and foreign currencies:
Three Months Ended
March 31,
2023 2022 Change
Sales denominated in USD $ 297.6 $ 259.3 $ 38.3
Sales denominated in foreign currencies 288.8 246.2 42.6
Total net product revenues $ 586.4 $ 505.5 $ 80.9
Three Months Ended
March 31,
2023 2022 ChangeUnfavorable impact of foreign currency exchange rates on product sales denominated in currencies other than USD
The unfavorable impact for the three months ended
Royalty and Other Revenues
Royalty and Other Revenues include royalties earned on net sales of products
sold by third parties, up-front licensing fees, milestones achieved by licensees
or sublicensees and rental income associated with the tenants in our facilities.
Three Months Ended
March 31,
2023 2022 Change
Royalty and other revenues $ 10.0 $ 13.8 $ (3.8)
The decrease in Royalty and Other Revenues for the three months ended March 31,
2023 as compared to the three months ended March 31, 2022 was primarily due to
lower royalty revenues earned from third parties.
We expect to continue to earn royalties from third parties in the future.
Cost of Sales and Gross Margin
Cost of Sales includes raw materials, personnel and facility and other costs associated with manufacturing our commercial products. These costs include production materials, production costs at our manufacturing facilities, third-party manufacturing costs, amortization of technology transfer intangible assets and internal and external final formulation and packaging costs. Cost of Sales also includes royalties payable to third parties based on sales of our products and charges for inventory valuation reserves.
The following table summarizes our Cost of Sales and gross margin:
Three Months Ended
March 31,
2023 2022 Change
Total revenues $ 596.4 $ 519.4 $ 77.0
Cost of sales $ 126.5 $ 117.0 $ 9.5
Gross margin 78.8 % 77.5 % 1.3 %
Cost of Sales increased for the three months ended March 31, 2023 as compared to
the three months ended March 31, 2022 primarily due to increased sales volumes
as noted above. Gross margin increased for the three months ended March 31, 2023
as compared to the three months ended March 31, 2022 primarily due to lower
royalties owed to a third-party licensor on product sales and lower per unit
manufacturing costs for our enzyme products.
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Management's Discussion and Analysis of Financial Condition and Results of
Operations (continued)
(In millions of U.S. dollars, except as otherwise disclosed)We expect gross margin to range between approximately 77.5% and 79.0% through 2023.
Research and Development
R&D expense includes costs associated with the research and development of product candidates and post-marketing research commitments related to our approved products. R&D expense primarily includes preclinical and clinical studies, personnel and raw materials costs associated with manufacturing clinical product, quality control and assurance, other R&D activities, facilities and regulatory costs.
We manage our R&D expense by identifying the R&D activities we anticipate will be performed during a given period and then prioritizing efforts based on scientific data, probability of successful development, market potential, available human and capital resources and other similar considerations. We continually review our product pipeline and the development status of product candidates and, as necessary, reallocate resources among the research and development portfolio that we believe will best support the future growth of our business.
R&D expense consisted of the following:
Three Months Ended
March 31,
2023 2022 Change
Research and early development $ 69.0 $ 61.7 $ 7.3
ROCTAVIAN 30.7 30.7 -
Other approved products 29.8 28.3 1.5
VOXZOGO 25.1 29.1 (4.0)
BMN 331 8.6 7.0 1.6
BMN 255 2.0 2.2 (0.2)
Other 6.6 1.8 4.8
Total R&D expense $ 171.8 $ 160.8 $ 11.0
The increase in R&D expense for the three months ended March 31, 2023 as
compared to the three months ended March 31, 2022 was primarily due to higher
spend in research and early development programs due to increased pre-clinical
activities and IND-enabling studies for planned IND filings.
We expect R&D expense to increase in future periods, primarily due to increased activities for our research and early development programs and clinical programs.
Selling, General and Administrative
Sales and marketing (S&M) expense primarily consisted of employee-related expenses for our sales group, brand marketing, patient support groups and pre-commercialization expenses related to our product candidates. General and administrative (G&A) expense primarily consisted of corporate support and other administrative expenses, including employee-related expenses.
SG&A expenses consisted of the following:
Three Months Ended
March 31,
2023 2022 Change
S&M expense $ 117.7 $ 104.9 $ 12.8
G&A expense 105.3 89.7 15.6
Total SG&A expense $ 223.0 $ 194.6 $ 28.4
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Management's Discussion and Analysis of Financial Condition and Results of
Operations (continued)
(In millions of U.S. dollars, except as otherwise disclosed)S&M expenses consisted of the following:
Three Months Ended
March 31,
2023 2022 Change
Enzyme Products $ 59.0 $ 55.9 $ 3.1
VOXZOGO 24.7 22.1 2.6
ROCTAVIAN 23.5 15.7 7.8
Other 10.5 11.2 (0.7)
Total S&M expense $ 117.7 $ 104.9 $ 12.8 The increase in S&M expense for the three months ended
The increase in G&A expense for the three months ended
We expect SG&A expense to increase in future periods as we prepare to launch new products and support the expansion of our global brands.
Intangible Asset Amortization and Contingent Consideration and Gain on Sale of Nonfinancial Assets, Net
Changes during the periods presented for Intangible Asset Amortization and
Contingent Consideration and Gain on Sale of Nonfinancial Assets, Net were as
follows:
Three Months Ended
March 31,
2023 2022 Change
Amortization of intangible assets $ 15.7 $ 15.6 $ 0.1
Changes in the fair value of contingent consideration - 2.0 (2.0)
Total intangible asset amortization and contingent consideration
Gain on sale of nonfinancial assets, net
$ -
Amortization of intangible assets - the expense for the three months ended
Fair value of contingent consideration - the decrease in the fair value of contingent consideration for the three months endedMarch 31, 2023 as compared to the three months endedMarch 31, 2022 was attributable to attainment of the final commercial milestone in the fourth quarter of 2022. Gain on Sale of Nonfinancial Assets, Net - the decrease in the three months endedMarch 31, 2023 as compared to the three months endedMarch 31, 2022 was due to the sale in the first quarter of 2022 of a Priority Review Voucher (PRV) with no similar transaction in 2023. 26
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Management's Discussion and Analysis of Financial Condition and Results of
Operations (continued)
(In millions of U.S. dollars, except as otherwise disclosed)Interest Income
We invest our cash equivalents and investments inU.S. government securities and other high credit quality debt securities in order to limit default and market risk. Three Months Ended March 31, 2023 2022 Change Interest income$ 11.9 $ 1.8 $ 10.1 The increase in Interest Income for the three months endedMarch 31, 2023 compared to the three months endedMarch 31, 2022 was primarily due to higher yields on our investment portfolio. We expect Interest Income to increase over the next 12 months due to anticipated higher interest rates and yields on our cash equivalents and investments.
Interest Expense
We incur interest expense primarily on our convertible debt. Interest Expense for the periods presented was as follows:
Three Months Ended
March 31,
2023 2022 Change
Interest expense $ 3.7 $ 3.8 $ (0.1)
Interest Expense for the three months ended March 31, 2023 as compared to the
three months ended March 31, 2022 was relatively flat. We do not expect Interest
Expense to fluctuate significantly over the next 12 months as the rates on our
convertible debt are fixed. See Note 6 to our accompanying Condensed
Consolidated Financial Statements for additional information regarding our debt.
Other Expense, Net
Other Expense, Net for the periods presented was as follows:
Three Months Ended
March 31,
2023 2022 Change
Other expense, net $ (10.8) $ (1.2) $ (9.6)
The increase in Other Expense, Net for the three months ended March 31, 2023
compared to the three months ended March 31, 2022 was primarily due to a
$12.6 million loss on an equity investment due to impairment in the first
quarter of 2023. See Note 2 to our accompanying Condensed Consolidated
Financial Statements for additional information.
Provision for Income Taxes
The following table summarizes our Provision for Income Taxes:
Three Months Ended
March 31,
2023 2022 Change
Provision for income taxes $ 5.9 $ 13.4 $ (7.5)
The decrease in Provision for Income Taxes for the three months ended March 31,
2023 as compared to the three months ended March 31, 2022 was primarily due to
taxes on lower taxable income in the first quarter of 2023. Taxable income
recognized in the first quarter of 2022 included income from the sale of the
PRV.
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Management's Discussion and Analysis of Financial Condition and Results of
Operations (continued)
(In millions of U.S. dollars, except as otherwise disclosed)Financial Condition, Liquidity and Capital Resources
Our cash, cash equivalents, and investments as of
March 31, 2023 2022 Change
Cash and cash equivalents $ 580.1 $ 724.5 $ (144.4)
Short-term investments 572.0 567.0 5.0
Long-term investments 340.6 333.9 6.7
Cash, cash equivalents and investments $ 1,492.7 We believe our cash generated from sales of our commercial products, in addition to our cash, cash equivalents and investments will be sufficient to satisfy our liquidity requirements for at least the next 12 months. We believe we will meet longer-term expected future cash requirements and obligations through a combination of cash flows from operating activities, available cash and investments balances and available revolving loan balances. We will need to raise additional funds from equity or debt securities, loans or collaborative agreements if we are unable to satisfy our liquidity requirements. For example, we may require additional financing to fund the repayment of our convertible debt, future milestone payments and our future operations, including the commercialization of our products and product candidates currently under development, preclinical studies and clinical trials, and potential licenses and acquisitions. The timing and mix of our funding alternatives could change depending on many factors, including how much we elect to spend on our development programs, potential licenses and acquisitions of complementary technologies, products and companies or if we settle our convertible debt in cash. We are mindful that conditions in the current macroeconomic environment, such as inflation, changes in interest and foreign currency exchange rates, natural disasters, the continuing effects of the COVID-19 pandemic, and supply chain disruptions could affect our ability to achieve our goals. In addition, we sell our products in certain countries that face economic volatility and weakness. Although we have historically collected receivables from customers in such countries, sustained weakness or further deterioration of the local economies and currencies may cause customers in those countries to be unable to pay for our products. We will continue to monitor these conditions and will attempt to adjust our business processes, as appropriate, to mitigate macroeconomic risks to our business.
Our cash flows are summarized as follows:
Three Months Ended March 31,
2023 2022 Change
Net cash used in operating activities $ (73.9) $ (45.4) $ (28.5)
Net cash provided by (used in) investing activities $ (30.0) $ 87.8 $ (117.8)
Net cash used in financing activities $ (40.7) The increase in net cash used in operating activities in the three months endedMarch 31, 2023 compared toMarch 31, 2022 was primarily attributed to the timing of cash receipts from our customers and payments to vendors. The increase in net cash provided by investing activities in the three months endedMarch 31, 2023 compared toMarch 31, 2022 was primarily attributable to the absence of$110.0 million proceeds from the sale of the PRV in the first quarter of 2022. The increase in net cash used in financing activities in the three months endedMarch 31, 2023 compared toMarch 31, 2022 was primarily attributed to higher taxes paid for net settlement of shares under our equity incentive plans and the final payment to a third party related to a PKU sales milestone achieved in 2022, partially offset by increased proceeds from stock option exercises.
Financing and Credit Facilities
Our$1.1 billion (undiscounted) of total convertible debt as ofMarch 31, 2023 will impact our liquidity due to the semi-annual cash interest payments as well as the repayment of the principal amount, if not converted. As ofMarch 31, 2023 , our indebtedness consisted of our 0.599% senior subordinated convertible notes due in 2024 and our 1.25% senior subordinated convertible notes due in 2027, which, if not converted, will be required to be repaid in cash at maturity inAugust 2024 andMay 2027 , respectively. For additional information related to our convertible debt, see Note 6 to our accompanying Condensed 28
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Management's Discussion and Analysis of Financial Condition and Results of
Operations (continued)
(In millions of U.S. dollars, except as otherwise disclosed)
Consolidated Financial Statements and Note 10 - Debt to the Consolidated
Financial Statements accompanying our Annual Report on Form 10-K for the year
ended
InOctober 2018 , we entered into an unsecured revolving credit facility of up to$200.0 million which includes a letter of credit subfacility and a swingline loan subfacility. The credit facility is intended to finance ongoing working capital needs and for other general corporate purposes. InMay 2021 , we amended the credit facility agreement, extending the maturity date fromOctober 19, 2021 toMay 28, 2024 , among other changes. The amended credit facility contains financial covenants including a maximum leverage ratio and a minimum interest coverage ratio. As ofMarch 31, 2023 , there were no amounts outstanding under the credit facility and we and certain of our subsidiaries that serve as guarantors were in compliance with all covenants.
Material Cash Requirements
Funding Commitments
Our investment in our research and early development of product candidates and continued development of our existing commercial products has a major impact on our operating performance. R&D expenses for our commercial products and certain product candidates for the period since inception as ofMarch 31, 2023 were as follows: Since Program Inception ROCTAVIAN $ 974.8 VOXZOGO $ 826.1 BMN 331 $ 118.5 BMN 255 $ 36.9 Other approved products $ 2,518.8 We cannot estimate with certainty the cost to complete any of our product development programs. We may need or elect to increase our spending above our current long-term plans to be able to achieve our long-term goals. This may increase our capital requirements, including: costs associated with the commercialization of our products? additional clinical trials; investments in the manufacturing of our commercial products? preclinical studies and clinical trials for our product candidates? potential licenses and other acquisitions of complementary technologies, products and companies? and general corporate purposes. Additionally, we cannot precisely estimate the time to complete any of our product development programs or when we expect to receive net cash inflows from any of our product development programs. Please see "Risk Factors" included in Part II, Item 1A of this Quarterly Report on Form 10-Q, for a discussion of the reasons we are unable to estimate such information.
Purchase Obligations
As ofMarch 31, 2023 , we had obligations of approximately$251.7 million , which primarily related to firm purchase commitments entered into in the normal course of business to procure active pharmaceutical ingredients, certain inventory-related items, certain third-party R&D services, production services and facility construction services. Of this amount,$205.9 million is expected to be paid in the next twelve months.
Other Obligations
As of
Our lease, contingent obligations and unrecognized tax benefits as ofMarch 31, 2023 have not materially changed from those discussed in "Financial Condition, Liquidity and Capital Resources" in Part II, Item 7 of our Annual Report on Form 10-K for the year endedDecember 31, 2022 .
See Note 11 to our accompanying Condensed Consolidated Financial Statements for additional information on our commitments.
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