Fair Value Measurements

6 Months Ended

Jun. 30, 2025

Fair Value Disclosures [Abstract]

Fair Value Measurements

4. Fair Value Measurements

The Company classifies fair value-based measurements using a three-level hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: Level 1, quoted market prices (unadjusted) in active markets for identical assets or liabilities; Level 2, observable inputs other than quoted market prices included in Level 1, such as quoted market prices for markets that are not active or other inputs that are observable or can be corroborated by observable market data; and Level 3, unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities, including certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.

The Company’s financial assets recognized at fair value on a recurring basis consisted of the following:

	June 30, 2025
	Total		Level 1		Level 2		Level 3
	(In thousands)
Assets
Cash equivalents and restricted cash equivalents	$	55,925	$	55,925	$	-	$	-
Marketable securities:
U.S. Treasury and other government-backed securities		248,317		147,562		100,755		-
Financial institution debt securities		146,647		-		146,647		-
Corporate debt securities		79,370		-		79,370		-
Total marketable securities		474,334		147,562		326,772		-
Investment in Kyverna Therapeutics, Inc.		3,604		3,604		-		-
Total assets	$	533,863	$	207,091	$	326,772	$	-
	December 31, 2024
	Total		Level 1		Level 2		Level 3
	(In thousands)
Assets
Cash equivalents and restricted cash equivalents	$	66,898	$	66,898	$	-	$	-
Marketable securities:
U.S. Treasury and other government-backed securities		352,616		169,735		182,881		-
Financial institution debt securities		217,827		-		217,827		-
Corporate debt securities		94,927		-		94,927		-
Other asset-backed securities		7,178		-		7,178		-
Total marketable securities		672,548		169,735		502,813		-
Investment in Kyverna Therapeutics, Inc.		4,390		4,390		-		-
Total assets	$	743,836	$	241,023	$	502,813	$	-

Certain of the Company’s financial assets, including cash equivalents, restricted cash equivalents and marketable securities, have been initially valued at the transaction price, and subsequently revalued at the end of each reporting period, utilizing third party pricing services or other observable market data. The pricing services utilize industry standard valuation models and observable market inputs to determine value.

Other financial instruments, including accounts receivable, accounts payable and accrued expense, are carried at cost, which approximates fair value due to the short duration and term to maturity.

The Company has determined that the estimated fair value of its investment in Kyverna Therapeutics, Inc. (“Kyverna”), a publicly traded company, is reported as Level 1 as it is valued at a quoted market price in an active market. The investment in Kyverna is classified within “Investments and other assets” in the condensed consolidated balance sheets.

Other Investments

SparingVision SAS

The Company’s investment in SparingVision SAS (“SparingVision”) was initially recorded at fair value, determined according to Level 3 inputs in the fair value hierarchy described above. The SparingVision investment is included in “Investments and other assets” in the condensed consolidated balance sheets. This investment is accounted for using the measurement alternative at cost minus impairment, adjusted for changes in observable prices. There were no changes in observable prices or impairment of this investment as of June 30, 2025. The carrying value of the SparingVision investment was $14.6 million as of June 30, 2025 and December 31, 2024.

AvenCell Therapeutics, Inc.

The Company’s investment in AvenCell Therapeutics, Inc. (“AvenCell”) was initially recorded at fair value, determined according to Level 3 inputs in the fair value hierarchy described above. The AvenCell investment is included in “Investments and other assets” in the condensed consolidated balance sheets. This investment is accounted for using the measurement alternative at cost minus impairment, adjusted for changes in observable prices. There were no changes in observable prices or impairment of this investment as of June 30, 2025. The Company previously accounted for the AvenCell investment under the equity method; refer to Note 8 for further details including the change in fair value. The carrying value of the AvenCell investment was $7.9 million as of June 30, 2025 and December 31, 2024.