Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2024

Fair Value Assets and Liabilities Measured on Recurring Basis

The following tables summarize the Company’s financial assets and liabilities measured at fair value on a recurring basis based on the three-tier fair value hierarchy:

		June 30, 2024
	Valuation Hierarchy	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Estimated Fair Value
		(in thousands)
Financial assets:
Cash equivalents:
Money market funds	Level 1	$	68,489	$	-	$	-		$	68,489
U.S. government and agency securities	Level 2		32,053		-		-			32,053
Total cash equivalents			100,542		-		-			100,542
Short-term marketable securities:
U.S. government and agency securities	Level 2		104,940		1		(19	)		104,922
Corporate debt securities	Level 2		11,764		1		(2	)		11,763
Total short-term marketable securities			116,704		2		(21	)		116,685
Total financial assets		$	217,246	$	2	$	(21	)	$	217,227
Financial liabilities:
Long-term financial liabilities:
Contingent consideration	Level 3		111,621		-		-			111,621
Success payment liabilities	Level 3		20,847		-		-			20,847
Total long-term financial liabilities			132,468		-		-			132,468
Total financial liabilities		$	132,468	$	-	$	-		$	132,468

		December 31, 2023
	Valuation Hierarchy	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Estimated Fair Value
		(in thousands)
Financial assets:
Cash equivalents:
Money market funds	Level 1	$	70,315	$	-	$	-		$	70,315
U.S. government and agency securities	Level 2		33,091		3		-			33,094
Corporate debt securities	Level 2		1,062		-		-			1,062
Total cash equivalents			104,468		3		-			104,471
Short-term marketable securities:
U.S. government and agency securities	Level 2		57,924		7		(78	)		57,853
Corporate debt securities	Level 2		13,817		9		(1	)		13,825
Total short-term marketable securities			71,741		16		(79	)		71,678
Other assets	Level 3		359		-		-			359
Total financial assets		$	176,568	$	19	$	(79	)	$	176,508
Financial liabilities:
Long-term financial liabilities:
Contingent consideration	Level 3		109,606		-		-			109,606
Success payment liabilities	Level 3		12,799		-		-			12,799
Total long-term financial liabilities			122,405		-		-			122,405
Total financial liabilities		$	122,405	$	-	$	-		$	122,405

Summary of Estimated Fair Value Available For Sale Debt Securities Continuous Unrealized Loss Position

The following table summarizes available-for-sale debt securities in a continuous unrealized loss position for less than and greater than twelve months for the periods presented:

	Less than 12 months					12 months or greater					Total
	Fair value		Unrealized losses			Fair value		Unrealized losses			Fair value		Unrealized losses
	(in thousands)
June 30, 2024
U.S. government and agency securities	$	82,248	$	(19	)	$	-	$	-		$	82,248	$	(19	)
Corporate debt securities		4,165		(2	)		-		-			4,165		(2	)
Total	$	86,413	$	(21	)	$	-	$	-		$	86,413	$	(21	)
December 31, 2023
U.S. government and agency securities	$	9,186	$	(3	)	$	10,386	$	(75	)	$	19,572	$	(78	)
Corporate debt securities		1,396		(1	)		-		-			1,396		(1	)
Total	$	10,582	$	(4	)	$	10,386	$	(75	)	$	20,968	$	(79	)

Changes in Estimated Fair Value of Level 3 Financial Liabilities

The following table sets forth a summary of the changes in the fair value of the Company’s Level 3 financial liabilities:

	Contingent Consideration			Cobalt Success Payment Liability			Harvard Success Payment Liability
	(in thousands)
Balance as of December 31, 2023	$	109,606		$	11,160		$	1,639
Changes in fair value – expense		5,384			27,920			4,703
Balance as of March 31, 2024		114,990			39,080			6,342
Changes in fair value – gain		(3,369	)		(20,687	)		(3,888	)
Balance as of June 30, 2024	$	111,621		$	18,393		$	2,454

Success Payment Liabilities

Summary of Estimated Fair Value of Liabilities using Unobservable Inputs

The fair values of the Cobalt Success Payments and Harvard Success Payments were calculated using the following unobservable inputs:

	June 30, 2024		December 31, 2023
Unobservable Input	Cobalt	Harvard	Cobalt	Harvard
Expected stock price volatility	72.5%	72.5%	72.5%	72.5%
Expected term (years)	14.6	6.7	15.1	7.2

Cobalt Contingent Consideration

Summary of Estimated Fair Value of Liabilities using Unobservable Inputs

The fair value of the Cobalt Contingent Consideration was calculated using the following unobservable inputs:

	June 30, 2024		December 31, 2023
Unobservable Input	Range	Weighted-Average	Range	Weighted-Average
Discount rates	13.2% – 13.8%	13.4%	11.7% – 12.4%	11.9%
Probability of milestone achievement	5.0% –55.0%	25.7%	5.0% – 55.0%	25.7%