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Stock-Based Compensation
 12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
Equity Incentive Plans
As of December 31, 2024, the Company’s approved equity incentive plans included the 2015 Equity Incentive Plan (“2015 Plan”), the 2013 Equity Incentive Plan (“2013 Plan”), and the 2008 Equity Incentive Plan (“2008 Plan”). These plans are administered by the Board of Directors (the “Board”) and permit the granting of stock, stock options, stock appreciation rights, restricted stock, restricted stock units and dividend equivalent rights to employees, officers, directors and consultants of the Company.
The Company has certain stock option and restricted stock awards outstanding under each of its equity incentive plans but, upon adoption of the 2015 Plan, the Company no longer grants new equity awards under its 2008 and 2013 Plans. The Company adopted its 2015 Plan in June 2015 and subsequently amended the plan in April 2016, 2017, 2019, 2021, 2022 and 2024 and again in October 2024. The amended plans increased the common stock reserved for issuance under the 2015 Plan to an aggregate 14,930,277 shares. The Company assumed Progenics equity plans due to the acquisition as discussed in Note 1, “Description of Business” to these consolidated financial statements. The Company no longer grants new equity awards under the Progenics equity plans.
Stock-based compensation expense recognized in the consolidated statements of operations is summarized below:
Year Ended December 31,
(in thousands)202420232022
Cost of goods sold$12,670 $9,126 $4,422 
Sales and marketing13,899 9,500 6,185 
General and administrative37,945 24,807 14,876 
Research and development11,879 7,074 3,779 
Total stock-based compensation expense$76,393 $50,507 $29,262 
Stock Options
Stock option awards under the 2015 Plan are granted with an exercise price equal to the fair value of the Company’s common stock at the date of grant. All option awards have a ten-year contractual term.
A summary of option activity for 2024 is presented below:
Total
Stock
Options		Weighted-
Average
Exercise
Price		Weighted-
Average
Remaining
Contractual
Term
(Years)		Aggregate
Intrinsic
Value
($)
Balance at January 1, 2024957,172 $48.13 6.718,283,464 
Options granted544,175 $69.99 
Options exercised(209,657)$24.52 
Options cancelled and forfeited(74,944)$65.34 
Outstanding at December 31, 20241,216,746 $60.92 7.635,707,375 
Vested and expected to vest at December 31, 20241,180,842 $55.69 6.935,019,006 
Exercisable at December 31, 2024460,419 $47.00 5.619,865,507 
The table below summarizes the key weighted-average assumptions used in valuing stock options granted:
Year Ended December 31,
202420232022
Expected volatility55.4 %56.1 %62.1 %
Risk-free interest rate4.2 %4.0 %2.0 %
Expected life (in years)6.06.06.0
Expected dividend yield———
During the years ended December 31, 2024, 2023 and 2022, 209,657, 214,619 and 397,822 options were exercised having aggregate intrinsic values of $12.1 million, $12.9 million and $13.1 million, respectively. The weighted average grant-date fair value of stock options granted was $39.26 for the year ended December 31, 2024.
As of December 31, 2024, there was $19.7 million of unrecognized compensation expense related to outstanding stock options, which is expected to be recognized over a weighted-average period of 2.0 years.
Restricted Stock Units
A summary of restricted stock awards and restricted stock units (“RSUs”) activity for 2024 is presented below:
SharesWeighted-
Average Grant
Date Fair Value Per Share
Nonvested balance at January 1, 20241,210,259 $58.71 
Granted842,991 $70.56 
Vested(602,145)$49.78 
Forfeited(179,255)$65.75 
Nonvested balance at December 31, 20241,271,850 $69.81 
Restricted stock generally vest over 3 years. As of December 31, 2024, there was $58.4 million of unrecognized compensation expense related to outstanding restricted stock, which is expected to be recognized over a weighted-average period of 1.9 years.
The weighted average grant-date fair value for restricted stock granted during the fiscal years ended December 31, 2024, 2023 and 2022 was $70.56, $74.38 and $51.51 per share, respectively. The total fair value of restricted stock vested in fiscal years 2024, 2023 and 2022 was $42.5 million, $18.3 million and $11.9 million, respectively.
Total Stockholder Return Restricted Stock Awards
During the years ended December 31, 2024, 2023 and 2022, the Company granted total stockholder return (“TSR”) awards that include a three-year market condition where the performance measurement period is three years. Vesting of the TSR awards is based on the Company’s level of attainment of specified TSR targets relative to the percentage appreciation of a specified index of companies for the respective three-year period and is also subject to the continued employment of the grantees. The number of shares that are earned over the performance period ranges from 0% to 200% of the initial award. The fair value of these awards are based on a Monte Carlo simulation valuation model with the following assumptions:
Year Ended December 31,
202420232022
Expected volatility57.4 %52.8 %56.6 %
Risk-free interest rate4.3 %4.6 %1.7 %
Expected life (in years)2.82.82.8
Expected dividend yield———
A summary of TSR award activity for 2024 is presented below:
SharesWeighted-
Average Grant
Date Fair Value Per Share
Nonvested balance at January 1, 2024630,054 $78.91 
Granted586,292 $105.87 
Vested(514,192)$31.25 
Forfeited(17,470)$117.27 
Nonvested balance at December 31, 2024684,684 $109.38 
As of December 31, 2024, there was $35.4 million of unrecognized compensation expense related to outstanding performance restricted stock which is expected to be recognized over a weighted-average period of 1.9 years.
The weighted average grant-date fair value for TSR awards granted during the fiscal years ended December 31, 2024, 2023 and 2022 was $105.87, $127.75 and $95.31 per share, respectively. The total fair value of TSR awards vested in fiscal years 2024, 2023 and 2022 was $33.6 million, $8.2 million and $8.8 million, respectively.
Modification of equity awards
In the fourth quarter of 2024, as part of the Company’s evolution into a fully integrated radiopharmaceutical company, the Company reviewed its current capabilities and skillsets and began implementing organizational changes deemed necessary to best position the Company to execute on its long-term strategy. These changes include transitioning approximately 60 employees out of the Company. In connection with these changes, the Company approved equity modifications that allowed grants of stock options and RSUs issued to those impacted by this event to continue to vest in 2024 and 2025 with any unvested stock option and RSU grants as of December 31, 2025 to be cancelled. TSR awards granted to these individuals will continue to vest on their original vesting schedule but any shares issued will be issued in a pro-rated amount based on the time served during the performance period. The incremental stock-based compensation expense resulting from these modifications recognized in 2024 was $2.7 million. Total costs related to these organizational changes through December 31, 2024 were approximately $9.4 million. Remaining costs expected to be incurred are not material.
Common Stock Repurchases
In November 2024, the Board authorized a program to repurchase up to $250 million of the Company’s common stock over the next twelve months (the “2024 Program”). Such repurchases may be made from time to time via open market purchases at prevailing market prices, in privately negotiated transactions, block trades, or pursuant to trades intending to comply with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations. The actual timing, number and dollar amount of repurchase transactions will be determined by our management, in its discretion and will depend on a number of factors, including but not limited to, the market price of the Company’s common stock. In the year ended December 31, 2024, the Company repurchased approximately 1.1 million shares of its outstanding common stock under the 2024 Program for an aggregate purchase price of approximately $100.0 million at an average stock price of $89.59 per share.