Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 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:

	September 30, 2022
(in thousands)	Total Fair Value		Level 1		Level 2		Level 3
Assets:
Money market	$	176,909	$	176,909	$	—	$	—
Interest rate swaps	5,660		—		5,660		—
Contingent receivable	8,200		—		—		8,200
Total assets	$	190,769	$	176,909	$	5,660	$	8,200
Liabilities:
Contingent consideration liabilities	$	110,500	$	—	$	—	$	110,500
Total liabilities	$	110,500	$	—	$	—	$	110,500

	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 September 30, 2022.

	Fair Value at						Assumptions
(in thousands)	September 30, 2022		December 31, 2021		Valuation Technique	Unobservable Input	September 30, 2022		December 31, 2021
Contingent receivable:
Regulatory milestone	$	2,400	$	2,500	Probability adjusted discounted cash flow model	Period of expected milestone achievement	2023		2022
						Probability of success	70	%	70	%
						Discount rate	19	%	17	%
Royalties	5,800		6,800		Probability adjusted discounted cash flow model
						Probability of success	10% - 60%		10% - 60%
						Discount rate	19	%	17	%
Total	$	8,200	$	9,300

	Fair Value at						Assumptions
(in thousands)	September 30, 2022		December 31, 2021		Valuation Technique	Unobservable Input	September 30, 2022		December 31, 2021
Contingent consideration liability:
Net sales targets - PYLARIFY (CVRs)	$	99,700	$	73,200	Probability adjusted discounted cash flow model (as of 9/30/2022) Monte Carlo simulation (as of 12/31/2021)	Period of expected milestone achievement and sales targets	2022 - 2023		2022 - 2023
						Probability of success	100	%	N/A
						Discount rate	N/A		17	%
1095 commercialization milestone	1,700		1,900		Probability adjusted discounted cash flow model
						Period of expected milestone achievement	2026		2026
						Probability of success	40	%	40	%
						Discount rate	3.7	%	1.3	%
Net sales targets - AZEDRA and 1095	9,100		11,100		Monte Carlo simulation
						Probability of success and sales targets	20% - 100%		40% - 100%
						Discount rate	18% - 19%		16% - 17%
Total	$	110,500	$	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)	Nine Months Ended September 30,				Nine Months Ended September 30,
	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 (loss)	(1,100)		2,500		24,300		31,000
Fair value, end of period	$	8,200	$	13,800	$	110,500	$	46,800