The announcement and pendency of our proposed acquisition by Alcon could adversely impact our business, financial condition, and results of operations.
Failure to consummate the Merger within the expected timeframe or at all could adversely impact our business, financial condition, and results of operations, as well as the market price of our common stock.
Litigation relating to the Merger has been filed against us and our Board of Directors, and additional litigation may be filed against us and our Board of Directors in the future, which could prevent or delay the completion of the Merger or result in the payment of damages.
The Merger Agreement contains provisions that could discourage a potential competing acquirer of our company or could result in any competing proposal being at a lower price than it might otherwise be.
While the Merger Agreement is in effect, we are subject to restrictions on our business activities.
interpreted narrowly, or could be at risk of having its patent protection shortened, which may have a significant negative effect on our revenues and results of operations.
Product revenues, net were $36.1 million and $29.3 million for the three months ended September 30, 2022 and 2021, respectively, and related to sales of our U.S. glaucoma franchise products, Rocklatan® or Rhopressa®. The year-over-year revenue increase is primarily due to an increase in the number of units shipped to wholesalers and improved margins per bottle.
Cost of goods sold was $6.9 million and $7.9 million for the three months ended September 30, 2022 and 2021, respectively. Our gross margin percentage was 80.8% and 73.1% for the three months ended September 30, 2022 and 2021, respectively. The increase in the gross margin percentage was driven by the increase in product revenues, net as discussed above as well as $1.3 million of lower production costs associated with underutilized capacity at the Athlone plant due to increased commercial production during the three months ended September 30, 2022. The increased commercial production resulted in a higher level of costs capitalized into inventory. Our cost of goods sold and gross margin percentage for the three months ended September 30, 2022 and 2021 were unfavorably impacted by costs due to underutilized capacity at the Athlone plant, which increased the cost of goods sold by $4.1 million and $5.4 million and lowered the gross margin percentage by 11.3% and 18.6%, respectively. We expect the underutilization to continue to have an unfavorable impact on cost of goods sold that will decrease over time as the Athlone plant reaches full capacity.
Selling, general, and administrative expenses were $33.9 million and $34.7 million for the three months ended September 30, 2022 and 2021, respectively. Selling, general, and administrative expenses decreased by $0.8 million primarily due to lower sales and marketing, employee-related and stock-based compensation expenses. Partially offsetting the decrease in selling, general, and administrative expenses were costs related to the Merger, which totaled $10.1 million for the three months ended September 30, 2022.
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