Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2023

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, 2023
(in thousands)	Total Fair Value		Level 1		Level 2		Level 3
Assets:
Money market	$	562,210	$	562,210	$	—	$	—


Total assets	$	562,210	$	562,210	$	—	$	—
Liabilities:
Contingent consideration liabilities	$	2,500	$	—	$	—	$	2,500
Total liabilities	$	2,500	$	—	$	—	$	2,500


	December 31, 2022
(in thousands)	Total Fair Value		Level 1		Level 2		Level 3
Assets:
Money market	$	342,646	$	342,646	$	—	$	—


Total assets	$	342,646	$	342,646	$	—	$	—
Liabilities:
Contingent consideration liabilities	$	111,600	$	—	$	—	$	111,600
Total liabilities	$	111,600	$	—	$	—	$	111,600

Schedule of Quantitative Information and Assumptions Pertaining to the Fair Value Measurement of the Level 3 Inputs

The following tables summarize quantitative information and assumptions pertaining to the fair value measurement of liabilities using Level 3 inputs at September 30, 2023.


	Fair Value at						Assumptions
(in thousands)	September 30, 2023		December 31, 2022		Valuation Technique	Unobservable Input	September 30, 2023		December 31, 2022
Contingent consideration liability:
Net sales targets - PYLARIFY (CVRs)	N/A		$	99,700	Probability adjusted discounted cash flow model	Period of expected milestone achievement and sales targets	N/A		2022 - 2023
						Probability of success	N/A		100	%

1095 commercialization milestone	1,700		1,700		Probability adjusted discounted cash flow model
						Period of expected milestone achievement	2026		2026
						Probability of success	40	%	40	%
						Discount rate	4.7	%	3.8	%



Net sales targets - AZEDRA and 1095	800		10,200		Monte Carlo simulation
						Probability of success and sales targets	0% - 40%		20% - 100%
						Discount rate	16%		16% - 17%
Total	$	2,500	$	111,600

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,
	2023		2022		2023		2022
Fair value, beginning of period	$	—	$	9,300	$	111,600	$	86,200

Changes in fair value included in net (loss) income	—		(1,100)		(9,475)		24,300
Cash payments	—		—		(99,625)		—
Fair value, end of period	$	—	$	8,200	$	2,500	$	110,500