FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Schedule of Carrying Amount and Fair Value of the Long-term Debt

The carrying values and fair values of the Company’s financial assets and liabilities at December 31, 2021 are as follows (in thousands):

	Carrying Value		Fair Value Measurements Using
			Level 1		Level 2		Level 3
Financial Assets and Financial Liabilities Measured at Fair Value on a Recurring Basis:
Financial Asset:
Equity investments	$	14,127	$	—	$	—	$	14,127
Convertible notes receivable	$	4,132	$	—	$	—	$	4,132
Financial Liabilities:
Acquisition-related contingent consideration	$	57,598	$	—	$	—	$	57,598
Financial Liabilities Measured at Amortized Cost:
Term loan facility due December 2026	$	359,497	$	—	$	371,250	$	—
2.375% convertible senior notes due 2022 (1)	$	157,857	$	—	$	166,200	$	—
0.750% convertible senior notes due 2025 (1)	$	330,627	$	—	$	447,781	$	—
3.375% convertible senior notes due 2024 (2)	$	201,249	$	—	$	201,552	$	—

(1) The closing price of the Company’s common stock as reported on the Nasdaq Global Select Market was $60.17 per share at December 31, 2021 compared to a conversion price of $66.89 per share for the 2022 Notes and a conversion price of $71.78 per share for the 2025 Notes. Therefore, at December 31, 2021, the conversion prices were above the stock price. The maximum conversion premium that could have been due on the 2022 Notes and 2025 Notes at December 31, 2021 was approximately 2.4 million and 5.6 million shares of the Company’s common stock, respectively. These figures assume no increases in the conversion rate for certain corporate events.

(2) Relates to the Flexion 2024 Notes. For more information, See Note 11, Debt.

Fair Value Measurement Inputs and Valuation Techniques

The following table includes the key assumptions used in the valuation of the Company’s contingent consideration:

Assumption	Flexion Ranges Utilized as of December 31, 2021	MyoScience Ranges Utilized as of December 31, 2021
Discount rates	11.39% to 12.92%	11.42% to 12.13%
Probability of achieving regulatory milestones	10.00% to 15.00%	1.00%
Projected year of achieving regulatory milestones	2026 to 2028	2023

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The change in the Company’s contingent consideration recorded at fair value using Level 3 measurements is as follows (in thousands):

	Contingent Consideration Fair Value
Balance at December 31, 2020	$	28,346
Contingent consideration related to the Flexion Acquisition	45,241
Fair value adjustments and accretion	(989)
Payments made or offset against amounts due	(15,000)
Balance at December 31, 2021	$	57,598

Schedule of Short-term Investments

The following summarizes the Company’s investments at December 31, 2021 and 2020 (in thousands):

December 31, 2021 Investments:	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value (Level 2)
Short-term:
Asset-backed securities	$	3,182	$	—	$	—	$	3,182
Commercial paper	57,533		80		(2)		57,611
Corporate bonds	9,936		102		—		10,038
Total	$	70,651	$	182	$	(2)	$	70,831

December 31, 2020 Investments:	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value (Level 2)
Short-term:
Asset-backed securities	$	34,918	$	98	$	—	$	35,016
Commercial paper	221,494		36		(18)		221,512
Corporate bonds	120,375		179		(11)		120,543
U.S. Government bonds	44,629		7		(2)		44,634
Subtotal	421,416		320		(31)		421,705
Long-term:
U.S. Government bonds	95,429		30		—		95,459
Subtotal	95,429		30		—		95,459
Total	$	516,845	$	350	$	(31)	$	517,164