Fair Value of Financial Assets and Liabilities

12 Months Ended

Dec. 31, 2024

Fair Value of Financial Assets and Liabilities

Fair Value of Financial Assets and Liabilities

3. Fair Value of Financial Assets and Liabilities

The following tables present information about the fair value measurements of the Company’s financial assets and liabilities which are measured at fair value on a recurring and non-recurring basis, and indicate the level of the fair value hierarchy utilized to determine such fair values:

	December 31, 2024
(In thousands)	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents	$	22,245	$	—	$	—	$	22,245
Marketable securities		—		179,326		—		179,326
Total assets	$	22,245	$	179,326	$	—	$	201,571
Liabilities:
Contingent consideration	$	—	$	—	$	8,700	$	8,700
Total liabilities	$	—	$	—	$	8,700	$	8,700

	December 31, 2023
(In thousands)	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents	$	32,177	$	—	$	—	$	32,177
Marketable securities		—		141,999		—		141,999
Total assets	$	32,177	$	141,999	$	—	$	174,176
Liabilities:
Contingent consideration	$	—	$	—	$	6,200	$	6,200
Total liabilities	$	—	$	—	$	6,200	$	6,200

As of December 31, 2024 and 2023, the Company’s cash equivalents consisted of a money market fund, which was valued based upon Level 1 inputs. The Company’s marketable securities as of December 31, 2024 consisted of commercial paper and corporate debt, foreign government agency debt and U.S. government and government agency debt securities, which were valued based upon Level 2 inputs. The Company’s marketable securities as of December 31, 2023 consisted of commercial paper and corporate debt, asset-backed debt, foreign government agency debt and U.S. government and government agency debt securities, which were valued based upon Level 2 inputs.

In determining the fair value of its Level 2 investments, the Company relied on quoted prices for identical securities in markets that are not active. These quoted prices were obtained by the Company with the assistance of a third-party pricing service based on available trade, bid and other observable market data for identical securities. During the years ended December 31, 2024 and 2023, there were no transfers into or out of Level 3.

The overall $2.5 million increase in the fair value of the contingent consideration liability during the year ended December 31, 2024 was primarily due to changes in estimated sales levels, changes to the probability of success for certain product candidates and the passage of time, offset by changes in market rates.

As of December 31, 2024 and 2023 the fair value of the Company’s available-for-sale marketable securities by type of security was as follows:

	December 31, 2024
			Gross		Gross
	Book		Unrealized		Unrealized		Fair
(In thousands)	Value		Gain		Loss		Value
Marketable securities:
Corporate debt securities(1)	$	105,154	$	192	$	(156)	$	105,190
Commercial paper		4,720		—		(1)		4,719
Foreign government agency debt securities		4,911		16		—		4,927
U.S. government and government agency debt securities(2)		64,454		47		(11)		64,490
Total marketable securities	$	179,239	$	255	$	(168)	$	179,326
(1) Included in Corporate debt securities is $59.8 million with maturity dates between one and three years.
(2) Included in U.S. government and government agency debt securities is $30.5 million with maturity dates between one and three years.

	December 31, 2023
			Gross		Gross
	Book		Unrealized		Unrealized		Fair
(In thousands)	Value		Gain		Loss		Value
Marketable securities:
Corporate debt securities(1)	$	52,362	$	65	$	(142)	$	52,285
Commercial paper		12,345		2		(1)		12,346
Asset-backed debt securities(2)		10,953		42		(30)		10,965
Foreign government agency debt securities(3)		4,698		43		—		4,741
U.S. government and government agency debt securities(4)		61,750		8		(96)		61,662
Total marketable securities	$	142,108	$	160	$	(269)	$	141,999
(1) Included in Corporate debt securities is $28.0 million with maturity dates between one and two years.
(2) Included in Asset-backed debt securities is $6.2 million with maturity dates between one and three years.
(3) Included in Foreign government agency debt securities is $4.7 million with a maturity date between one and two years.
(4) Included in U.S. government and government agency debt securities is $23.9 million with maturity dates between one and two years.