Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2018

Fair Value of Financial Assets and Liabilities Measured on Recurring Basis

The following table sets forth the fair value of our financial assets and liabilities (excluding consolidated SRX Cardio’s cash), allocated into Level 1, Level 2 and Level 3, that was measured on a recurring basis (in thousands):

	December 31, 2018
	Level 1		Level 2		Level 3		Total
Financial Assets:
Money market funds	$	19,500	$	–	$	–	$	19,500
Corporate notes and commercial paper		–		166,159		–		166,159
U.S. Treasury bills and government agency securities		–		110,190		–		110,190
Total financial assets	$	19,500	$	276,349	$	–	$	295,849
Financial Liabilities:
Embedded derivative liabilities	$	–	$	–	$	2,497		2,497
Liability-classified Lonza award		–		–		9,201		9,201
Total financial liabilities	$	–	$	–	$	11,698	$	11,698

	December 31, 2017
	Level 1		Level 2		Level 3		Total
Financial Assets:
Money market funds	$	31,836	$	–	$	–	$	31,836
Corporate notes and commercial paper		–		313,164		–		313,164
U.S. Treasury bills and government agency securities		–		170,458		–		170,458
Total financial assets	$	31,836	$	483,622	$	–	$	515,458
Financial Liabilities:
Embedded derivative liabilities	$	–	$	–	$	8,854	$	8,854

Summary of Changes in Estimated Fair Value of Embedded Derivative Liabilities Measured on Recurring Basis

The below schedule does not include liability-classified Lonza award as it was recorded on December 31, 2018, and there was no associated fair value movement during 2018. The initial fair value of the liability-classified Lonza award was measured at $9.2 million and was recorded as research and development expense in our consolidated statements of operations.

Balance as of December 31, 2017	$	8,854
Net decrease in fair value included in interest and other income, net		(6,357	)
Balance as of December 31, 2018	$	2,497