Fair Value Measurements and Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2025

The following table summarizes assets and liabilities measured at fair value on a recurring basis by level within the fair value hierarchy (in thousands):


	As of December 31, 2025								As of December 31, 2024
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:


Money market funds(1)	$	383,568	$	—	$	—	$	383,568	$	568,317	$	—	$	—	$	568,317









Available for sale debt securities(2)	—		—		18,800		18,800		—		—		58,200		58,200



Total current assets	$	383,568	$	—	$	18,800	$	402,368	$	568,317	$	—	$	58,200	$	626,517

Equity securities(3)	171,312		—		—		171,312		184,719		—		2,241		186,960

Available for sale debt securities(2)	—		—		419,000		419,000		—		—		693,500		693,500



Cytokinetics R&D Funding Derivative(4)	—		—		—		—		—		—		12,000		12,000
Royalty at fair value(3)	—		—		—		—		—		—		5,323		5,323
Total non-current assets	$	171,312	$	—	$	419,000	$	590,312	$	184,719	$	—	$	713,064	$	897,783

Liabilities:






Cytokinetics Funding Commitments	—		—		(9,100)		(9,100)		—		—		(12,080)		(12,080)
Total non-current liabilities	$	—	$	—	$	(9,100)	$	(9,100)	$	—	$	—	$	(12,080)	$	(12,080)

(1)Recorded within Cash and cash equivalents on the consolidated balance sheets.

(2)Related to the funded Cytokinetics Funding Arrangements as of respective balance sheet dates. As of December 31, 2024, amount also included the MorphoSys Development Funding Bonds, which were sold in January 2025.

(3)The amounts reflected within Level 3 as of December 31, 2024 relate to equity securities and a revenue participation right, recorded within Other assets on the consolidated balance sheet, that we acquired from ApiJect Holdings, Inc. (“ApiJect”), a private company. We elected the fair value option to account for our investments in ApiJect because it is more reflective of current values for such investments. We estimated the fair values related to both instruments using a discounted cash flow with Level 3 inputs, including forecasted cash flows and the weighted average cost of capital. In 2025, we wrote off the related balances. No amounts were due from or to ApiJect as of December 31, 2025 and 2024.

(4)Recorded within Other assets on the consolidated balance sheet as of December 31, 2024. Upon adoption of ASU 2025-07 in 2025, the Cytokinetics R&D Funding Derivative qualified for the derivative scope exception and the related derivative asset was derecognized as of January 1, 2025. See Note 2-Summary of Significant Accounting Policies for additional discussion.

Summary of Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The tables presented below summarize the change in the combined fair value (current and non-current) of Level 3 financial instruments (in thousands):


	Year Ended December 31, 2025
	Equity Securities		Debt Securities		Funding Commitments		Derivative Instrument		Royalty at Fair Value
Balance at the beginning of the period	$	2,241	$	751,700	$	(12,080)	$	12,000	$	5,323
Purchases	—		175,000		—		—		—

Changes in fair value(1)	(2,241)		42,679		3,180		—		(5,323)
Sales(2)	—		(510,553)		—		—		—
Settlement of options and forward(3)	—		200		(200)		—		—

Redemptions(4)	—		(21,226)		—		—		—
ASU 2025-07 adoption impact(5)	—		—		—		(12,000)		—
Balance at the end of the period	$	—	$	437,800	$	(9,100)	$	—	$	—

(1)Changes in fair value of the financial instruments are recorded within their respective financial statement line items in the Other (income)/expense section of the consolidated statements of operations.

(2)The MorphoSys Development Funding Bonds were sold in January 2025.

(3)Amount reflects the fair value attributable to the draws under tranche four and five of the Cytokinetics Commercial Launch Funding that were settled upon funding.

(4)Amount relates to the quarterly repayments on the MorphoSys Development Funding Bonds prior to the sale and on the Cytokinetics Commercial Launch Funding.

(5)Upon adoption of ASU 2025-07 in 2025, the Cytokinetics R&D Funding Derivative qualified for the derivative scope exception and the related derivative asset was derecognized as of January 1, 2025. See Note 2-Summary of Significant Accounting Policies for additional discussion.


	Year Ended December 31, 2024
	Equity Securities		Debt Securities		Funding Commitments		Derivative Instrument		Royalty at Fair Value
Balance at the beginning of the period	$	297	$	455,400	$	(900)	$	—	$	1,778
Purchases	46,500		150,000		—		18,000		—
Gains/(losses) on initial recognition(1)	—		5,000		(5,000)		—		—
Changes in fair value(2)	1,562		161,086		(6,180)		(6,000)		3,545
Transfer out of Level 3(3)	(46,118)		—		—		—		—
Redemptions(4)	—		(19,786)		—		—		—
Balance at the end of the period	$	2,241	$	751,700	$	(12,080)	$	12,000	$	5,323

(1)Represents purchase price allocation to arrive at the appropriate fair value on initial recognition.

(2)Changes in fair value of the financial instruments are recorded within their respective financial statement line items in the Other (income)/expense section of the consolidated statement of operations.

(3)Related to the expiration of the transfer restriction on Cytokinetics common stock.

(4)Amount relates to quarterly repayments on tranche one of the Cytokinetics Commercial Launch Funding and the MorphoSys Development Funding Bonds.

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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