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Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2020

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:


	December 31, 2020
(in thousands)	Total Fair Value		Level 1		Level 2		Level 3
Assets:
Money market	$	35,457	$	35,457	$	—	$	—
Contingent receivable	11,300		—		—		11,300
Total assets	$	46,757	$	35,457	$	—	$	11,300
Liabilities:
Interest rate swaps	$	1,908	$	—	$	1,908	$	—
Contingent consideration liabilities	15,800		—		—		15,800
Total liabilities	$	17,708	$	—	$	1,908	$	15,800


	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	$	—	$	—

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 19, 2020.


(in thousands)	Fair Value at June 19, 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 19, 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	23	%

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	10,700		Monte-Carlo simulation	Probability of success	40% - 100%
				Discount rate	22% - 23%
Total	$	16,600

The following tables summarize quantitative information and assumptions pertaining to the fair value measurement of assets and liabilities using Level 3 inputs at December 31, 2020.


(in thousands)	Fair Value at December 31, 2020		Valuation Technique	Unobservable Input	Assumption
Contingent receivable:
Regulatory milestone	$	3,200	Probability adjusted discounted cash flow model	Period of expected milestone achievement	2021
				Probability of success	90	%
				Discount rate	24	%
Royalties	8,100		Probability adjusted discounted cash flow model
				Probability of success	13% - 77%
				Discount rate	24	%
Total	$	11,300


(in thousands)	Fair Value at December 31, 2020		Valuation Technique	Unobservable Input	Assumption
Contingent consideration liability:
Net sales targets - PyL (CVRs)	$	4,200	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	0.51	%





Net sales targets - AZEDRA and 1095	9,400		Monte-Carlo simulation	Probability of success	40% - 100%
				Discount rate	23% - 24%
Total	$	15,800

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:


	Financial Assets		Financial Liabilities
(in thousands)	Year Ended December 31, 2020		Year Ended December 31, 2020
Fair value, beginning of period	$	—	$	—
Progenics acquisition	10,100		16,600
Changes in fair value included in net loss	1,200		(800)

Fair value, end of period	$	11,300	$	15,800