Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2020

Fair Value Disclosures [Abstract]

Schedule of assets and liabilities measured at fair value on a recurring basis

The tables below present information about the Company’s assets and liabilities measured at fair value on a recurring basis:

	June 30, 2020
(in thousands)	Total Fair Value		Level 1		Level 2		Level 3
Assets:
Money market	$	49,662	$	49,662	$	—	$	—
Contingent receivable	10,100		—		—		10,100
Total assets	$	59,762	$	49,662	$	—	$	10,100
Liabilities:
Interest rate swaps	$	1,953	$	—	$	1,953	$	—
Contingent consideration liabilities(1)	16,300		—		—		16,300
Total liabilities	$	18,253	$	—	$	1,953	$	16,300

	December 31, 2019
(in thousands)	Total Fair Value		Level 1		Level 2		Level 3
Assets:
Money market	$	39,530	$	39,530	$	—	$	—
Total assets	$	39,530	$	39,530	$	—	$	—

(1)Includes purchase consideration of $3.7 million related to CVRs and $12.6 million of assumed contingent consideration liabilities.

Fair Value Measurement Inputs and Valuation Techniques

The following tables summarize quantitative information and assumptions pertaining to the fair value measurement of assets and liabilities using Level 3 inputs at June 30, 2020.

(in thousands)	Fair Value at June 30, 2020		Valuation Technique	Unobservable Input	Assumption
Contingent receivable:
Regulatory milestone	$	3,100	Probability adjusted discounted cash flow model	Period of expected milestone achievement	2021
				Probability of success	90	%
				Discount rate	23	%
Royalties	7,000		Probability adjusted discounted cash flow model
				Probability of success	13% - 77%
				Discount rate	23	%
Total	$	10,100

(in thousands)	Fair Value at June 30, 2020		Valuation Technique	Unobservable Input	Assumption
Contingent consideration liability:
Net sales targets - PyL (CVRs)	$	3,700	Monte-Carlo simulation	Period of expected milestone achievement	2022 - 2023
				Discount rate	24	%
1095 commercialization milestone	2,200		Probability adjusted discounted cash flow model	Period of expected milestone achievement	2026
				Probability of success	45	%
				Discount rate	0.48	%
Net sales targets - AZEDRA and 1095	10,400		Monte-Carlo simulation	Probability of success	40% - 100%
				Discount rate	23% - 24%
Total	$	16,300

Schedule of financial instruments with significant Level 3 inputs

For those financial instruments with significant Level 3 inputs, the following table summarizes the activities for the periods indicated (in thousands):

	Financial Assets		Financial Liabilities
(in thousands)	Six Months Ended June 30, 2020		Six Months Ended June 30, 2020
Fair value, beginning of period	$	—	$	—
Progenics acquisition	10,100		16,300
Fair value, end of period	$	10,100	$	16,300
Changes in unrealized gains (losses) included in earnings	$	—	$	—