Income Taxes

9 Months Ended

Sep. 30, 2024

Income Taxes [Abstract]

Income Taxes

10.  Income Taxes

We recorded income tax benefit of $3.6 million and $3.5 million for the three and nine months ended September 30, 2024, respectively, compared to income tax expense of $6.6 million and $25.8 million for the same periods in 2023, respectively.

The benefit for the three and nine months ended September 30, 2024 primarily relates to the 2023 tax return position for the royalty purchase agreement with Royalty Pharma that we finalized during the third quarter of 2024. We reflected the Royalty Pharma transaction as a taxable sale, which required us to include the proceeds from the sale, net of currently deductible issuance costs, as taxable income in 2023.

The decrease in income tax expense for the three and nine months ended September 30, 2024 compared to the same periods in 2023 relates primarily to the impact of the Royalty Pharma transaction.

We continue to maintain a full valuation allowance on all our net deferred tax assets.