Discontinued Operations and TSA (Tables)

12 Months Ended

Dec. 31, 2024

Discontinued Operations and Disposal Groups [Abstract]

Summary of Assets and Liabilities of the Discontinued Operations

The following table presents the assets and liabilities of the discontinued operations as of December 31, 2023:

	December 31,
	2023
Assets
Current assets:
Collaboration receivable - related party	$	8,674
Inventories		29,647
Prepaid expenses and other current assets		1,075
Total current assets of discontinued operations		39,396
Property and equipment, net		4,843
Operating lease assets		19,376
Other non-current assets		39,167
Total non-current assets of discontinued operations		63,386
Total assets of discontinued operations	$	102,782
Liabilities
Current liabilities:
Accrued expenses and other current liabilities	$	58,102
Operating lease liabilities		1,090
Deferred income - related party		7,730
Total current liabilities of discontinued operations		66,922
Operating lease liabilities, net of current portion		14,063
Deferred revenue, net of current portion - related party		95,364
Total non-current liabilities of discontinued operations		109,427
Total liabilities of discontinued operations	$	176,349

The following table presents the gain on the sale of the VOWST Business as of December 31, 2024, pursuant to the Purchase Agreement:

	December 31,
	2024
Consideration received
Upfront payment (1)	$	79,788
Prepaid milestone		60,000
Deferred revenue from termination of 2016 License Agreement		95,364
Settlement of net collaboration payable at close		27,465
Premium on equity financing		1,484
Deferred income from termination of 2021 License Agreement		3,606
Accrued liabilities due to SPN - related party		(33,458	)
Total fair value transferred for business	$	234,249
Net assets transferred
Inventory	$	63,442
Prepaid expenses and other current assets		2,219
Property and equipment, net		3,966
Operating lease assets		17,929
Other non-current assets		39,328
Accrued expenses and other current liabilities		(31,547	)
Operating lease liabilities		(14,413	)
Net assets transferred	$	80,924
Transaction costs	$	6,618
Gain on sale, pre-tax	$	146,707
Income tax		—
Gain on sale, net of tax	$	146,707

[1] The upfront payment consists of $100,000, less $17,857 owed by the Company to an affiliate of SPN under the prior license agreement between the Company and the SPN affiliate, less approximately $2,355 in satisfaction of costs due under the Bacthera Manufacturing Agreement

The following table presents the financial results of the discontinued operations:

	Year Ended December 31,
	2024			2023			2022
Revenue:
Collaboration revenue - related party	$	—		$	126,325		$	7,128
Total revenue		—			126,325			7,128
Operating expenses:
Research and development expenses		5,809			28,263			63,269
General and administrative expenses		4,066			10,244			9,431
Collaboration (profit) loss sharing - related party		(1,496	)		704			1,004
Total operating expenses		8,379			39,211			73,704
(Loss) income from discontinued operations		(8,379	)		87,114			(66,576	)
Other income (expense):
Gain on sale of VOWST business		146,707			—			—
Interest expense		(12,192	)		(10,708	)		—
Other expense		(229	)		—			—
Income (loss) from discontinued operations, pre-tax	$	125,907		$	76,406		$	(66,576	)
Income tax		—			—			—
Net income (loss) from discontinued operations, net of tax	$	125,907		$	76,406		$	(66,576	)

Summary of Accrued Liabilities of Continuing Operations

These contingent liabilities are presented as Accrued Liabilities due to SPN - related party from continuing operations on the consolidated balance sheets as of December 31, 2024 and consist of the following (in thousands):

	December 31,
	2024
Profit Sharing Payments	$	11,230
Royalties associated with the MSK Agreement		2,786
VOWST post-marketing safety surveillance study		771
80.1% of lease cost of Waltham facility		1,501
Employment-related costs for conveying employees		1,462
Total accrued liabilities due to SPN - related party	$	17,750