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STOCK-BASED COMPENSATION (Tables)
 12 Months Ended
Dec. 31, 2024
Summary of Stock Option Activity

The following table summarizes the Company’s stock option activity for the period indicated:

 

 

 

For the Year Ended December 31, 2024

 

 

 

 

 

 

Weighted-Average

 

 

 

Shares

 

 

Exercise Price

 

Grants outstanding at beginning of the period

 

 

9,582,695

 

 

$

78.57

 

Granted

 

 

331,920

 

 

 

128.89

 

Exercised

 

 

(850,117

)

 

 

79.33

 

Cancelled and forfeited

 

 

(180,026

)

 

 

122.38

 

Grants outstanding at end of the period

 

 

8,884,472

 

 

$

79.49

 

 

 

 

 

 

 

 

Grants exercisable at end of the period

 

 

6,267,957

 

 

$

77.66

 

Grants vested and expected to vest at end of the period

 

 

8,726,976

 

 

$

78.66

 

The weighted-average grant date fair value per share of stock options granted during the years ended December 31, 2024, 2023 and 2022 was $67.31, $70.94 and $48.82, respectively.

 

 

 

 

 

 

Weighted-Average

 

 

 

Aggregate

 

 

Remaining

 

 

 

Intrinsic Value

 

 

Contractual

 

 

 

(in thousands)

 

 

Life (Years)

 

Options outstanding at December 31, 2024

 

$

425,039

 

 

 

4.8

 

Options exercisable at December 31, 2024

 

$

307,232

 

 

 

4.4

 

Options vested and expected to vest at December 31, 2024

 

$

423,367

 

 

 

4.7

 
Summary of Company's Stock Options Vested and Exercised

The following table summarizes the Company’s shares vested and stock options exercised for each of the periods indicated:

 

 

 

For the Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

 

 

(in thousands)

 

Aggregate grant date fair value of shares vested

 

$

147,631

 

 

$

142,692

 

 

$

140,889

 

Aggregate intrinsic value of stock options exercised

 

$

57,158

 

 

$

29,711

 

 

$

12,150

 

 
Summary of Employee Stock Purchase Plan Activity and Expense The following table summarizes the Company’s ESPP activity for each of the periods indicated:

 

 

 

For the Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

Number of shares purchased

 

 

143,589

 

 

 

153,027

 

 

 

115,124

 

Proceeds received (in millions)

 

$

12.2

 

 

$

10.8

 

 

$

7.5

 

 
Summary of Stock-Based Compensation Expense by Function Included within Consolidated Statements of Operations and Comprehensive Loss

The following table summarizes stock-based compensation expense by grant type and by function included within the consolidated statements of comprehensive income (loss):

 

 

For the Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

 

 

(in thousands)

 

 Stock options

 

$

62,255

 

 

$

79,472

 

 

$

174,868

 

 Restricted stock units

 

 

135,612

 

 

 

97,808

 

 

 

52,601

 

 Employee stock purchase plan

 

 

7,266

 

 

 

5,234

 

 

 

5,549

 

Subtotal

 

$

205,133

 

 

$

182,514

 

 

$

233,018

 

Capitalized stock-based compensation costs*

 

 

(20,833

)

 

 

—

 

 

 

—

 

Total stock-based compensation expense included in expenses

 

$

184,300

 

 

$

182,514

 

 

$

233,018

 

Research and development

 

 

74,010

 

 

 

82,489

 

 

 

61,293

 

Selling, general and administrative

 

 

110,290

 

 

 

100,025

 

 

 

171,725

 

Total stock-based compensation expense included in expenses

 

$

184,300

 

 

$

182,514

 

 

$

233,018

 

*Prior to the year ended December 31, 2024, capitalized stock-based compensation costs were not material.
Restricted Stock Units (RSUs) [Member]  
Summary of Restricted Stock Award and Restricted Stock Units Activity The following table summarizes the Company’s RSU activity for the period indicated:

 

 

 

For the Year Ended December 31, 2024

 

 

 

 

 

 

Weighted-Average

 

 

 

 

 

 

Grant Date

 

 

 

Shares

 

 

Fair Value

 

Grants outstanding at beginning of the period

 

 

2,240,504

 

(1)

$

120.17

 

Granted

 

 

1,409,347

 

(2)

 

129.31

 

Vested

 

 

(734,922

)

 

 

107.93

 

Forfeited

 

 

(197,515

)

 

 

126.19

 

Grants outstanding at end of the period

 

 

2,717,414

 

 

$

127.78

 

(1) Included in RSUs outstanding at the beginning of the year ended December 31, 2024 are 33,000 shares of PSUs (the “March 2022 PSU”) with performance conditions related to regulatory approval of certain of the Company's product candidates and 485,275 shares of PSUs (the “March 2023 PSU”) with performance conditions related to regulatory approval of certain of the Company's product candidates and the achievement of a certain financial performance target.

 

(2) Included in RSUs granted during the year ended December 31, 2024 are 97,460 shares with performance conditions (the “March 2024 PSU”), which are related to the achievement of certain financial performance targets and regulatory approval of certain of the Company's product candidates and 24,500 shares of the March 2023 PSU, which are related to the achievement of a certain financial performance target.

 

Stock options and the remaining RSUs granted during the year ended December 31, 2024 have only service-based criteria and vest over four years.

 

As of December 31, 2024, the following PSUs became vested or eligible for vesting:

•
March 2022 PSU: The expanded regulatory approval of ELEVIDYS in June 2024 resulted in 33,000 shares becoming eligible for vesting, which is contingent on the fulfillment of remaining service conditions.
•
March 2023 PSU: The achievement of a certain financial performance target during the year ended December 31, 2024 resulted in 24,500 shares becoming eligible for vesting, which is contingent on the fulfillment of remaining service conditions.
•
March 2024 PSU: The expanded regulatory approval of ELEVIDYS in June 2024 resulted in the cliff-vesting of 44,300 of the 97,460 shares of the March 2024 PSU during the year ended December 31, 2024.

 

As of December 31, 2024, none of the remaining performance conditions associated with the March 2022 PSU and March 2024 PSU were probable of being achieved.
Employee Stock Option  
Assumptions for Measuring Fair Values of Stocks

The fair values of stock options granted during the periods presented are measured on the date of grant using the Black-Scholes-Merton option-pricing model, with the following assumptions:

 

 

 

For the Year Ended December 31,

 

 

2024

 

2023

 

2022

Risk-free interest rate (1)

 

3.5 - 4.4%

 

3.5 - 4.9%

 

1.6 - 4.2%

Expected dividend yield (2)

 

—

 

—

 

—

Expected term (3)

 

5.81 years

 

5.23 years

 

5.09 years

Expected volatility (4)

 

40.8 - 53.5%

 

46.8 - 63.2%

 

52.4 - 72.9%

 

(1)
The risk-free interest rate is estimated using an average of Treasury bill interest rates over a historical period commensurate with the expected term of the option that correlates to the prevailing interest rates at the time of grant.
(2)
The expected dividend yield is zero as the Company has not paid any dividends to date and does not expect to pay dividends in the future.
(3)
The expected term is estimated using historical exercise behavior.
(4)
The expected volatility is the implied volatility in exchange-traded options of the Company’s common stock.