Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2022

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:

		March 31, 2022
	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	$	79,955	$	-	$	-		$	79,955
U.S. government and agency securities	Level 2		57,744		2		(1	)		57,745
Corporate debt securities	Level 2		250		-		-			250
Total cash equivalents			137,949		2		(1	)		137,950
Short-term marketable securities:
U.S. government and agency securities	Level 2		210,105		-		(1,540	)		208,565
Corporate debt securities	Level 2		115,737		-		(441	)		115,296
Total short-term marketable securities			325,842		-		(1,981	)		323,861
Long-term marketable securities:
U.S. government and agency securities	Level 2		130,651		4		(2,820	)		127,835
Corporate debt securities	Level 2		17,555		-		(376	)		17,179
Total long-term marketable securities			148,206		4		(3,196	)		145,014
Other assets	Level 3		420		-		-			420
Total financial assets		$	612,417	$	6	$	(5,178	)	$	607,245
Financial liabilities:
Short-term financial liabilities:
Contingent consideration	Level 3	$	50,900	$	-	$	-		$	50,900
Total short-term financial liabilities			50,900		-		-			50,900
Long-term financial liabilities:
Contingent consideration	Level 3		102,315		-		-			102,315
Success payment liabilities	Level 3		47,615		-		-			47,615
Total long-term financial liabilities			149,930		-		-			149,930
Total financial liabilities		$	200,830	$	-	$	-		$	200,830

		December 31, 2021
	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	$	224,671	$	-	$	-		$	224,671
Corporate debt securities	Level 2		2,345		-		-			2,345
Total cash equivalents			227,016		-		-			227,016
Short-term marketable securities:
U.S. government and agency securities	Level 2		162,854		1		(195	)		162,660
Corporate debt securities	Level 2		135,441		-		(134	)		135,307
Total short-term marketable securities			298,295		1		(329	)		297,967
Long-term marketable securities:
U.S. government and agency securities	Level 2		176,492		-		(925	)		175,567
Corporate debt securities	Level 2		20,427		-		(113	)		20,314
Total long-term marketable securities			196,919		-		(1,038	)		195,881
Other assets	Level 3		426		-		-			426
Total financial assets		$	722,656	$	1	$	(1,367	)	$	721,290
Financial liabilities:
Short-term financial liabilities:
Contingent consideration	Level 3	$	51,382	$	-	$	-		$	51,382
Success payment liabilities	Level 3		5,000		-		-			5,000
Total short-term financial liabilities			56,382		-		-			56,382
Long-term financial liabilities:
Contingent consideration	Level 3		102,361		-		-			102,361
Success payment liabilities	Level 3		97,525		-		-			97,525
Total long-term financial liabilities			199,886		-		-			199,886
Total financial liabilities		$	256,268	$	-	$	-		$	256,268

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, 2021	$	153,743		$	88,353		$	14,172
Changes in fair value - expense (gain)		(528	)		(46,823	)		(8,087	)
Balance as of March 31, 2022	$	153,215		$	41,530		$	6,085

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:

	March 31, 2022		December 31, 2021
Unobservable Input	Range	Weighted-Average	Range	Weighted-Average
Discount rates	12.1% - 12.2%	12.2%	10.9% - 11.6%	11.2%
Probability of milestone achievement	5.0% - 75.0%	33.8%	5.0% - 75.0%	33.8%

Success Payment Liabilities

Summary of Estimated Fair Value of Liabilities using Unobservable Inputs

The fair values of the Cobalt and Harvard success payment liabilities were calculated using the following unobservable inputs:

	March 31, 2022		December 31, 2021
Unobservable Input	Cobalt	Harvard	Cobalt	Harvard
Expected stock price volatility	70%	70%	70%	70%
Expected term (years)	16.9	9.0	17.1	9.2