Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2021

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:


	September 30, 2021
(in thousands)	Total Fair Value		Level 1		Level 2		Level 3
Assets:
Money market	$	39,141	$	39,141	$	—	$	—
Contingent receivable	13,800		—		—		13,800
Total assets	$	52,941	$	39,141	$	—	$	13,800
Liabilities:
Interest rate swaps	$	766	$	—	$	766	$	—
Contingent consideration liabilities	46,800		—		—		46,800
Total liabilities	$	47,566	$	—	$	766	$	46,800


	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

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 September 30, 2021.


	Fair Value at						Assumptions
(in thousands)	September 30, 2021		December 31, 2020		Valuation Technique	Unobservable Input	September 30, 2021		December 31, 2020
Contingent receivable:
Regulatory milestone	$	3,300	$	3,200	Probability adjusted discounted cash flow model	Period of expected milestone achievement	2022		2021
						Probability of success	90	%	90	%
						Discount rate	18	%	24	%
Royalties	10,500		8,100		Probability adjusted discounted cash flow model
						Probability of success	13% - 77%		13% - 77%
						Discount rate	18	%	24	%
Total	$	13,800	$	11,300


	Fair Value at						Assumptions
(in thousands)	September 30, 2021		December 31, 2020		Valuation Technique	Unobservable Input	September 30, 2021		December 31, 2020
Contingent consideration liability:
Net sales targets - PYLARIFY (CVRs)	$	33,200	$	4,200	Monte Carlo simulation	Period of expected milestone achievement	2022 - 2023		2022 - 2023

						Discount rate	18	%	24	%
1095 commercialization milestone	1,900		2,200		Probability adjusted discounted cash flow model
						Period of expected milestone achievement	2026		2026
						Probability of success	40	%	45	%
						Discount rate	0.9	%	0.5	%



Net sales targets - AZEDRA and 1095	11,700		9,400		Monte Carlo simulation
						Probability of success	40% - 100%		40% - 100%
						Discount rate	17% - 18%		23% - 24%
Total	$	46,800	$	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)	Nine Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Fair value, beginning of period	$	11,300	$	—	$	15,800	$	—
Progenics acquisition	—		10,100		—		16,300
Changes in fair value included in net loss	2,500		100		31,000		900

Fair value, end of period	$	13,800	$	10,200	$	46,800	$	17,200