Fair Value Measurements (Tables)

3 Months Ended

Jun. 30, 2023

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Assets and Liabilities are Measured at Fair Value on Recurring Basis

The following table sets forth the Company’s assets and liabilities that are measured at fair value on a recurring basis as of June 30, 2023 and March 31, 2023, by level, within the fair value hierarchy (in thousands):

	As of June 30, 2023								As of March 31, 2023
	Level 1		Level 2		Level 3		Balance as of June 30, 2023		Level 1		Level 2		Level 3		Balance as of March 31, 2023
Assets:
Money market funds	$	1,240,912	$	—	$	—	$	1,240,912	$	1,496,726	$	—	$	—	$	1,496,726
Investment in Datavant Class A units		—		—		199,448		199,448		—		—		178,579		178,579
Investment in Arbutus common shares		89,349		—		—		89,349		117,708		—		—		117,708
Other investments		7,446		—		—		7,446		8,030		—		—		8,030
Total assets at fair value	$	1,337,707	$	—	$	199,448	$	1,537,155	$	1,622,464	$	—	$	178,579	$	1,801,043
Liabilities:
Debt issued by Dermavant to NovaQuest	$	—	$	—	$	214,630	$	214,630	$	—	$	—	$	207,640	$	207,640
Liability instruments measured at fair value(1)		50,780		—		52,943		103,723		29,895		—		33,651		63,546
Total liabilities at fair value	$	50,780	$	—	$	267,573	$	318,353	$	29,895	$	—	$	241,291	$	271,186

⁽¹⁾ At June 30, 2023, Level 1 includes the fair value of the Public Warrants of $50.8 million, and Level 3 includes the fair value of the Earn-Out Shares of $24.0 million, Private Placement Warrants of $25.6 million, and other liability instruments issued of $3.3 million. At March 31, 2023, Level 1 includes the fair value of the Public Warrants of $29.9 million, and Level 3 includes the fair value of the Earn-Out Shares of $15.2 million, Private Placement Warrants of $15.2 million, and other liability instruments issued of $3.3 million.

Changes in Fair Value of the Level 3 Assets

The changes in fair value of the Level 3 assets during the three months ended June 30, 2023 and 2022 were as follows (in thousands):

Balance at March 31, 2022	$	193,963
Changes in fair value of investment in Datavant, included in net loss		(7,019	)
Balance at June 30, 2022	$	186,944
Balance at March 31, 2023	$	178,579
Changes in fair value of investment in Datavant, included in net loss		20,869
Balance at June 30, 2023	$	199,448

Changes in Fair Value of the Level 3 Liabilities

The changes in fair value of the Level 3 liabilities during the three months ended June 30, 2023 and 2022 were as follows (in thousands):

Balance at March 31, 2022	$	204,293
Payments related to long-term debt		(7,344	)
Changes in fair value of debt and liability instruments, included in net loss		46,946
Balance at June 30, 2022	$	243,895
Balance at March 31, 2023	$	241,291
Payments related to long-term debt		(7,344	)
Changes in fair value of debt and liability instruments, included in net loss		33,626
Balance at June 30, 2023	$	267,573

Private Placement Warrants [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Fair Value Calculation Using Significant Unobservable Inputs

Significant unobservable inputs used to calculate the fair value of the Private Placement Warrants included the following:

	Point Estimate Used
Input	As of June 30, 2023		As of March 31, 2023
Volatility		50.3%		50.5%
Risk-free rate		4.45%		3.76%
Term (in years)		3.25		3.50

Earn-Out Shares [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Fair Value Calculation Using Significant Unobservable Inputs

Significant unobservable inputs used to calculate the fair value of the Earn-Out Shares included the following:

	Point Estimate Used
Input	As of June 30, 2023		As of March 31, 2023
Volatility		78.8%		79.9%
Risk-free rate		4.44%		3.76%

Datavant [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Fair Value Calculation Using Significant Unobservable Inputs

The fair value was calculated using significant unobservable inputs including the following:

	Point Estimate Used
Input	As of June 30, 2023		As of March 31, 2023
Volatility		90.0%		100.0%
Risk-free rate		4.81%		4.02%