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Investments
 12 Months Ended
Dec. 31, 2019
Investments Debt And Equity Securities [Abstract]  
Investments

4. INVESTMENTS

Investments consist of the following:

 

 

 

 

 

 

 

Gross Unrealized

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses

 

 

 

 

 

 

 

Amortized

 

 

 

 

 

 

Less than

 

 

Greater than

 

 

Estimated

 

December 31, 2019

 

Cost

 

 

Gains

 

 

One Year

 

 

One Year

 

 

Fair Value

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

 

$

144,161

 

 

$

676

 

 

$

—

 

 

$

—

 

 

$

144,837

 

U.S. government and agency debt securities

 

 

112,948

 

 

 

434

 

 

 

(1

)

 

 

(1

)

 

 

113,380

 

International government agency debt securities

 

 

72,753

 

 

 

248

 

 

 

(10

)

 

 

—

 

 

 

72,991

 

Total short-term investments

 

 

329,862

 

 

 

1,358

 

 

 

(11

)

 

 

(1

)

 

 

331,208

 

Long-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

 

 

51,070

 

 

 

—

 

 

 

(45

)

 

 

(7

)

 

 

51,018

 

International government agency debt securities

 

 

20,806

 

 

 

—

 

 

 

(18

)

 

 

—

 

 

 

20,788

 

U.S. government and agency debt securities

 

 

4,000

 

 

 

—

 

 

 

(4

)

 

 

—

 

 

 

3,996

 

 

 

 

75,876

 

 

 

—

 

 

 

(67

)

 

 

(7

)

 

$

75,802

 

Held-to-maturity securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 

 

1,820

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,820

 

Fixed term deposit account

 

 

1,667

 

 

 

102

 

 

 

—

 

 

 

—

 

 

 

1,769

 

 

 

 

3,487

 

 

 

102

 

 

 

—

 

 

 

—

 

 

 

3,589

 

Total long-term investments

 

 

79,363

 

 

 

102

 

 

 

(67

)

 

 

(7

)

 

 

79,391

 

Total investments

 

$

409,225

 

 

$

1,460

 

 

$

(78

)

 

$

(8

)

 

$

410,599

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

 

$

120,197

 

 

$

57

 

 

$

(62

)

 

$

(274

)

 

$

119,918

 

U.S. government and agency debt securities

 

 

80,055

 

 

 

115

 

 

 

(11

)

 

 

(87

)

 

 

80,072

 

International government agency debt securities

 

 

72,091

 

 

 

85

 

 

 

(8

)

 

 

(117

)

 

 

72,051

 

 

 

 

272,343

 

 

 

257

 

 

 

(81

)

 

 

(478

)

 

 

272,041

 

Held-to-maturity securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

 

 

492

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

492

 

Total short-term investments

 

 

272,835

 

 

 

257

 

 

 

(81

)

 

 

(478

)

 

 

272,533

 

Long-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

 

 

53,505

 

 

 

—

 

 

 

(185

)

 

 

(93

)

 

$

53,227

 

U.S. government and agency debt securities

 

 

18,474

 

 

 

—

 

 

 

(21

)

 

 

(12

)

 

 

18,441

 

International government agency debt securities

 

 

5,457

 

 

 

—

 

 

 

(4

)

 

 

—

 

 

 

5,453

 

 

 

 

77,436

 

 

 

—

 

 

 

(210

)

 

 

(105

)

 

 

77,121

 

Held-to-maturity securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 

 

1,820

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,820

 

Fixed term deposit account

 

 

1,667

 

 

 

136

 

 

 

—

 

 

 

—

 

 

 

1,803

 

 

 

 

3,487

 

 

 

136

 

 

 

—

 

 

 

—

 

 

 

3,623

 

Total long-term investments

 

 

80,923

 

 

 

136

 

 

 

(210

)

 

 

(105

)

 

 

80,744

 

Total investments

 

$

353,758

 

 

$

393

 

 

$

(291

)

 

$

(583

)

 

$

353,277

 

 

Realized gains and losses on the sales and maturities of marketable securities, which were identified using the specific identification method, were as follows:

 

 

 

Year Ended December 31,

 

(In thousands)

 

2019

 

 

2018

 

 

2017

 

Proceeds from the sales and maturities of marketable securities

 

$

224,602

 

 

$

444,456

 

 

$

464,494

 

Realized gains

 

$

997

 

 

$

4

 

 

$

9

 

Realized losses

 

$

497

 

 

$

268

 

 

$

3

 

 

The Company’s available‑for‑sale and held‑to‑maturity securities at December 31, 2019 had contractual maturities in the following periods:

 

 

 

Available-for-sale

 

 

Held-to-maturity

 

 

 

Amortized

 

 

Estimated

 

 

Amortized

 

 

Estimated

 

(In thousands)

 

Cost

 

 

Fair Value

 

 

Cost

 

 

Fair Value

 

Within 1 year

 

$

216,084

 

 

$

216,764

 

 

$

1,820

 

 

$

1,820

 

After 1 year through 5 years

 

 

189,654

 

 

 

190,246

 

 

 

1,667

 

 

 

1,769

 

Total

 

$

405,738

 

 

$

407,010

 

 

$

3,487

 

 

$

3,589

 

 

At December 31, 2019, the Company believed that the unrealized losses on its available-for-sale investments were temporary. The investments with unrealized losses consisted of U.S. government and agency debt securities, corporate debt securities and international government agency debt securities. The unrealized losses are a result of market conditions related to increasing interest rates. In making the determination that the decline in fair value of these securities was temporary, the Company considered various factors, including, but not limited to: the length of time each security was in an unrealized loss position; the extent to which fair value was less than cost; financial condition and near-term prospects of the issuers; and the Company’s intent not to sell these securities and the assessment that it is more likely than not that the Company would not be required to sell these securities before the recovery of their amortized cost basis.

In February 2016, the Company entered into a collaboration and license option agreement with Synchronicity Pharma, Inc. (“Synchronicity”) formerly Reset Therapeutics, Inc., a related party. The Company made a $15.0 million investment in exchange for shares of Synchronicity’s Series B Preferred Stock. The Company was accounting for its investment in Synchronicity under the equity method based on its percentage of ownership, its seat on the board of directors and its belief that it could exert significant influence over the operating and financial policies of Synchronicity.

In September 2017, the Company recorded an other-than-temporary impairment charge of $10.5 million within “Other (expense) income, net” in the accompanying consolidated statements of operations and comprehensive loss, which represented the Company’s remaining investment in Synchronicity, as the Company believed that Synchronicity was unable to generate future earnings that justify the carrying amount of the investment. In November 2017, the collaboration and license option agreement with Synchronicity was terminated. During the year ended December 31, 2017, the Company recorded a reduction in its investment in Synchronicity of $2.8 million, which represented the Company’s proportional share of Synchronicity’s net loss for the period.

In May 2014, the Company entered into an agreement whereby it is committed to provide up to €7.4 million to a partnership, Fountain Healthcare Partners II, L.P. of Ireland (“Fountain”), which was created to carry on the business of investing exclusively in companies and businesses engaged in the healthcare, pharmaceutical and life sciences sectors. As of December 31, 2019, the Company’s total contribution in Fountain was equal to €6.0 million, and its commitment represents approximately 7% of the partnership’s total funding. The Company is accounting for its investment in Fountain under the equity method. During the years ended December 31, 2019, 2018 and 2017 the Company recorded a reduction in its investment in Fountain of $0.4 million, an increase of $0.5 million and a reduction of $0.1 million, respectively, which represented the Company’s proportional share of Fountain’s net (losses) gains for the period. The Company’s $5.9 million and $5.5 million net investment in Fountain at December 31, 2019 and 2018, respectively, was included within “Other assets” in the accompanying consolidated balance sheets.