v3.25.2
Fair Value Measurements
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements
Note 8:
Fair Value Measurements
The tables below present information about our assets and liabilities that are regularly measured and carried at fair value and indicate the level within the fair value hierarchy of the valuation techniques we utilized to determine such fair value:
Fair Value Measurements on a Recurring Basis
As of June 30, 2025
(In millions)TotalQuoted Prices
in Active
Markets
(Level 1)		Significant
Other Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
Assets:
Cash equivalents$2,234.9 $— $2,234.9 $— 
Marketable equity securities157.0 157.0 — — 
Other current assets:
Derivative contracts31.7 — 31.7 — 
Other non-current assets:
Convertible note(1)
30.0 — — 30.0 
Plan assets for deferred compensation50.1 — 50.1 — 
Total$2,503.7 $157.0 $2,316.7 $30.0 
Liabilities:
Other current liabilities:
Derivative contracts$123.7 $— $123.7 $— 
Contingent consideration obligations297.2 — — 297.2 
Other non-current liabilities:
Derivative contracts26.8 — 26.8 — 
Contingent consideration obligations237.7 — — 237.7 
Total$685.4 $— $150.5 $534.9 
(1) As part of our strategic research arrangement with City Therapeutics we invested in a convertible note, for which we elected the fair value option. For additional information on the arrangement with City Therapeutics, please read Note 19, Collaborative and Other Relationships, to these condensed consolidated financial statements.
Fair Value Measurements on a Recurring Basis
As of December 31, 2024
(In millions)TotalQuoted Prices
in Active
Markets
(Level 1)		Significant
Other Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
Assets:
Cash equivalents$1,664.9 $— $1,664.9 $— 
Marketable equity securities179.7 179.7 — — 
Other current assets:
Derivative contracts62.5 — 62.5 — 
Other non-current assets:
Plan assets for deferred compensation42.8 — 42.8 — 
Total$1,949.9 $179.7 $1,770.2 $— 
Liabilities:
Other current liabilities:
Derivative contracts$11.7 $— $11.7 $— 
Contingent consideration obligations291.2 — — 291.2 
Other non-current liabilities:
Contingent consideration obligations221.6 — — 221.6 
Total$524.5 $— $11.7 $512.8 
Our marketable equity securities represent investments in publicly traded equity securities. Our ability to liquidate our investment in Denali may be limited by the size of our interest, the volume of market-related activity, our concentrated level of ownership and potential restrictions resulting from our status as a collaborator. Therefore, we may realize significantly less than the current value of such investments.
In June 2025 Sage announced it entered into a definitive agreement for Supernus Pharmaceuticals, Inc. to acquire Sage, with the transaction expected to close in the third quarter of 2025.
As set forth in the amended Schedule 13D we filed with the SEC on July 30, 2025, we have disposed of all of our shares of Sage common stock in a block trade.
For additional information on our investments in Denali and Sage common stock, please read Note 19, Collaborative and Other Relationships, to our consolidated financial statements included in our 2024 Form 10-K.
There have been no material impairments of our assets measured and carried at fair value as of June 30, 2025 and December 31, 2024. In addition, there have been no changes to our valuation techniques as of June 30, 2025 and December 31, 2024.
For a description of our validation procedures related to prices provided by third-party pricing services and our option pricing valuation model, please read Note 1, Summary of Significant Accounting Policies - Fair Value Measurements, to our consolidated financial statements included in our 2024 Form 10-K.
Level 3 Assets and Liabilities Held at Fair Value
The following table presents quantitative information, as of the dates indicated, about the valuation techniques and significant unobservable inputs used in the valuation of our Level 3 financial assets and liabilities measured at fair value on a recurring basis:
Quantitative Information about Level 3 Fair Value Measurements
As of June 30, 2025
(In millions)Fair ValueValuation TechniqueSignificant
Unobservable Input(s)		RangeWeighted Average
Liabilities:
Contingent consideration obligations$534.9 Discounted cash flowDiscount rate
5.6% - 5.7%
5.7 %
Expected timing of achievement of development milestones
2025 - 2030
— 
Quantitative Information about Level 3 Fair Value Measurements
As of December 31, 2024
(In millions)Fair ValueValuation TechniqueSignificant
Unobservable Input(s)		RangeWeighted Average
Liabilities:
Contingent consideration obligations$512.8 Discounted cash flowDiscount rate
6.2% - 6.3%
6.2 %
Expected timing of achievement of development milestones
2025 - 2030
— 
The weighted average discount rates were calculated based on the relative fair values of each distinct contingent consideration obligation related to our acquisition of HI-Bio in July 2024. In addition, we apply various probabilities of technological and regulatory success to the valuation models to estimate the fair values of these contingent consideration obligations, which ranged from approximately 70.0% to near certain probability as of June 30, 2025 and December 31, 2024.
There were no transfers of assets or liabilities into or out of Level 3 as of June 30, 2025 and December 31, 2024.
Contingent Consideration Obligations
In connection with our acquisition of HI-Bio in July 2024 we agreed to make additional payments based upon the achievement of certain milestone events. The following table provides a roll forward of the fair value of our contingent consideration obligations, which were classified as Level 3 measurements:
(In millions)For the Three Months Ended June 30, 2025For the Six Months Ended June 30, 2025
Fair value, beginning of period$522.4 $512.8 
Changes in fair value13.2 22.8 
Payments(0.7)(0.7)
Fair value, end of period$534.9 $534.9 
Changes in the fair value of our contingent consideration obligations are recorded in (gain) loss on fair value remeasurement of contingent consideration in our condensed consolidated statements of income. The fair values of the contingent consideration liabilities were based on a probability-adjusted discounted cash flow calculation using Level 3 fair value measurements and inputs. For additional information on the valuation techniques and inputs utilized in the valuation of our financial assets and liabilities, please read Note 1, Summary of Significant Accounting Policies, to our consolidated financial statements included in our 2024 Form 10-K.
As of June 30, 2025 and December 31, 2024, approximately $297.2 million and $291.2 million, respectively, of the fair value of the total contingent consideration obligations were classified as short-term and reflected as a component of accrued expense and other with the remaining $237.7 million and $221.6 million, respectively, reflected as a component of other long-term liabilities in our condensed consolidated balance sheets.
For the three and six months ended June 30, 2025, changes in the fair value of our contingent consideration obligations were primarily due to the passage of time.
During the second quarter of 2025 the first milestone related to the fourth patient dosed in a phase 3 clinical trial of felzartamab for AMR was achieved, resulting in a $150.0 million milestone payment made to the former shareholders of HI-Bio, which was substantially paid in July 2025.
Financial Instruments Not Carried at Fair Value
Other Financial Instruments
Due to the short-term nature of certain financial instruments, the carrying value reflected in our condensed consolidated balance sheets for current accounts receivable, due from anti-CD20 therapeutic programs, other current assets, accounts payable and accrued expense and other, approximates fair value.
Debt Instruments
The fair and carrying values of our debt instruments, which are Level 2 liabilities, are summarized as follows:
 As of June 30, 2025As of December 31, 2024
(In millions)Fair
Value		Carrying
Value		Fair
Value		Carrying
Value
Current portion:
4.050% Senior Notes due September 15, 2025(1)
$— $— $1,741.0 $1,748.6 
Current portion of notes payable— — 1,741.0 1,748.6 
Non-current portion:
2.250% Senior Notes due May 1, 2030
1,351.1 1,495.2 1,295.6 1,494.7 
5.050% Senior Notes due January 15, 2031(1)
407.1 397.8 — — 
5.750% Senior Notes due May 15, 2035(1)
668.7 645.5 — — 
5.200% Senior Notes due September 15, 2045
1,007.1 1,101.3 1,008.0 1,101.1 
3.150% Senior Notes due May 1, 2050
946.0 1,475.3 943.7 1,475.0 
3.250% Senior Notes due February 15, 2051
450.4 478.3 448.9 476.4 
6.450% Senior Notes due May 15, 2055(1)
721.7 690.3 — — 
Non-current portion of notes payable5,552.1 6,283.7 3,696.2 4,547.2 
Total notes payable$5,552.1 $6,283.7 $5,437.2 $6,295.8 
(1) In May 2025 we issued our 2025 Senior Notes for an aggregate principal amount of $1.75 billion. In June 2025 we used the net proceeds from the sale of our 2025 Senior Notes to redeem in full our 4.050% Senior Notes due September 15, 2025, prior to maturity. For additional information, please read Note 13, Indebtedness, to these condensed consolidated financial statements.
The fair values of each of our series of Senior Notes were determined through market, observable and corroborated sources. The changes in the fair values of our Senior Notes as of June 30, 2025, compared to December 31, 2024, are primarily related to decreases in U.S. treasury yields, partially offset by increases in credit spreads used to value our Senior Notes since December 31, 2024. For additional information related to our Senior Notes, please read Note 13, Indebtedness, to our consolidated financial statements included in our 2024 Form 10-K.