v3.25.2
Fair Value Measurements
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements

4. Fair Value Measurements

The following tables present the Company’s fair value hierarchy for its assets and liabilities, which are measured at fair value on a recurring basis (in thousands):

 

 

Fair Value Measurements at June 30, 2025

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

103,218

 

 

$

—

 

 

$

—

 

 

$

103,218

 

Marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial paper

 

 

—

 

 

 

85,436

 

 

 

—

 

 

 

85,436

 

Corporate bonds

 

 

—

 

 

 

570,392

 

 

 

—

 

 

 

570,392

 

Government and agency securities

 

 

—

 

 

 

185,664

 

 

 

—

 

 

 

185,664

 

U.S. treasury bills

 

 

—

 

 

 

36,636

 

 

 

—

 

 

 

36,636

 

 

$

103,218

 

 

$

878,128

 

 

$

—

 

 

$

981,346

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Related party revenue share liability

 

$

—

 

 

$

—

 

 

$

25,410

 

 

$

25,410

 

 

 

 

 

Fair Value Measurements at December 31, 2024

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

135,902

 

 

$

—

 

 

$

—

 

 

$

135,902

 

Marketable securities:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial paper

 

 

—

 

 

 

251,309

 

 

 

—

 

 

 

251,309

 

Corporate bonds

 

 

—

 

 

 

468,617

 

 

 

—

 

 

 

468,617

 

Government and agency securities

 

 

—

 

 

 

162,886

 

 

 

—

 

 

 

162,886

 

U.S. treasury bills

 

 

—

 

 

 

89,799

 

 

 

—

 

 

 

89,799

 

 

$

135,902

 

 

$

972,611

 

 

$

—

 

 

$

1,108,513

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Related party revenue share liability

 

$

—

 

 

$

—

 

 

$

17,940

 

 

$

17,940

 

Cash equivalents were valued by the Company based on quoted market prices for identical securities, which represent a Level 1 measurement within the fair value hierarchy. Commercial paper, corporate bonds, government and agency securities, and U.S. treasury bills were valued by the Company using quoted prices in active markets for similar securities, which represent a Level 2 measurement within the fair value hierarchy. During the three and six months ended June 30, 2025 and 2024, there were no transfers in or out of Level 3. The carrying values of the Company’s accounts payable and accrued expenses and other current liabilities approximate their fair values due to the short-term nature of these liabilities.

The following table sets forth the changes in estimated fair value of the Company’s related party revenue share liability for the six months ended June 30, 2025, which represents a Level 3 measurement within the fair value hierarchy (in thousands):

Estimated fair value as of December 31, 2024

 

$

17,940

 

Change in fair value

 

 

7,470

 

Estimated fair value as of June 30, 2025

 

$

25,410

 

The fair value of the related party revenue share liability was estimated using a discounted cash flow model to calculate the estimated payments that could become due upon commercialization. Assumptions in the model include but are not limited to the following: probability and timing of product approval, future product revenues and discount rate. Changes in fair value each reporting period are recognized as a component of other income (expense) in the consolidated statements of operations and comprehensive loss. Due to changes in certain assumptions, primarily related to the probability and timing of obtaining regulatory approval, the Company estimated the fair value of the related party revenue share liability to be $25.4 million as of June 30, 2025. The Company estimated the fair value of the related party revenue share liability to be $17.9 million as of December 31, 2024. Due to the progression of the Company’s clinical trials that occurred subsequent to June 30, 2025, the Company anticipates a material increase in the fair value of the related party revenue share liability during the three months ended September 30, 2025. See Note 8 for additional information regarding the revenue sharing agreement with Deerfield Healthcare Innovations Fund, L.P. and Deerfield Private Design Fund, IV, L.P. (collectively, “Deerfield”), each an investor in the Company.