Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2022

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:

	March 31, 2022
(in thousands)	Total Fair Value		Level 1		Level 2		Level 3
Assets:
Money market	$	38,986	$	38,986	$	—	$	—
Interest rate swaps	3,387		—		3,387		—
Contingent receivable	8,900		—		—		8,900
Total assets	$	51,273	$	38,986	$	3,387	$	8,900
Liabilities:
Contingent consideration liabilities	$	104,200	$	—	$	—	$	104,200
Total liabilities	$	104,200	$	—	$	—	$	104,200

	December 31, 2021
(in thousands)	Total Fair Value		Level 1		Level 2		Level 3
Assets:
Money market	$	40,140	$	40,140	$	—	$	—
Interest rate swaps	357		—		357		—
Contingent receivable	9,300		—		—		9,300
Total assets	$	49,797	$	40,140	$	357	$	9,300
Liabilities:
Contingent consideration liabilities	$	86,200	$	—	$	—	$	86,200
Total liabilities	$	86,200	$	—	$	—	$	86,200

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 March 31, 2022.

	Fair Value at						Assumptions
(in thousands)	March 31, 2022		December 31, 2021		Valuation Technique	Unobservable Input	March 31, 2022		December 31, 2021
Contingent receivable:
Regulatory milestone	$	2,500	$	2,500	Probability adjusted discounted cash flow model	Period of expected milestone achievement	2022		2022
						Probability of success	70	%	70	%
						Discount rate	18	%	17	%
Royalties	6,400		6,800		Probability adjusted discounted cash flow model
						Probability of success	10% - 60%		10% - 60%
						Discount rate	18	%	17	%
Total	$	8,900	$	9,300

	Fair Value at						Assumptions
(in thousands)	March 31, 2022		December 31, 2021		Valuation Technique	Unobservable Input	March 31, 2022		December 31, 2021
Contingent consideration liability:
Net sales targets - PYLARIFY (CVRs)	$	91,700	$	73,200	Monte Carlo simulation	Period of expected milestone achievement and sales targets	2022 - 2023		2022 - 2023
						Discount rate	18	%	17	%
1095 commercialization milestone	1,800		1,900		Probability adjusted discounted cash flow model
						Period of expected milestone achievement	2026		2026
						Probability of success	40	%	40	%
						Discount rate	2.1	%	1.3	%
Net sales targets - AZEDRA and 1095	10,700		11,100		Monte Carlo simulation
						Probability of success and sales targets	40% - 100%		40% - 100%
						Discount rate	17% - 18%		16% - 17%
Total	$	104,200	$	86,200

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)	Three Months Ended March 31,				Three Months Ended March 31,
	2022		2021		2022		2021
Fair value, beginning of period	$	9,300	$	11,300	$	86,200	$	15,800
Changes in fair value included in net income	(400)		900		18,000		1,200
Fair value, end of period	$	8,900	$	12,200	$	104,200	$	17,000