v3.26.1
Fair Value of Financial Assets and Liabilities
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value of Financial Assets and Liabilities Fair Value of Financial Assets and Liabilities
As of March 31, 2026 and December 31, 2025, the carrying amount of cash and cash equivalents and short-term investments was $340.6 million and $388.9 million respectively, which approximates fair value. Cash and cash equivalents and short-term investments includes investments in U.S. treasury securities and money market funds that invest in U.S. government securities that are valued using quoted market prices. Accordingly, money market funds and government funds are categorized as Level 1. The financial assets valued based on Level 2 inputs consist of corporate debt securities and commercial paper, which consist of investments in highly-rated investment-grade corporations.
The following tables present information about the Company's financial assets measured at fair value on a recurring basis and indicate the level of the fair value hierarchy utilized to determine such fair value (in thousands):
Fair Value Measurements as of
March 31, 2026 using:
Level 1Level 2Level 3Total
Assets:
Cash equivalents:
Commercial Paper$— $— $— $— 
Money market funds47,396 — — 47,396 
Marketable securities:
US treasury securities60,714 — — 60,714 
Corporate debt securities and commercial paper— 217,774 — 217,774 
Derivative asset— — 850 850 
Total$108,110 $217,774 $850 $326,734 
Fair Value Measurements as of
December 31, 2025 using:
Level 1Level 2Level 3Total
Assets:
Cash equivalents:
Money market funds$33,949 $— $— $33,949 
Marketable securities:
US treasury securities71,877 — — 71,877 
Corporate debt securities and commercial paper— 262,771 — 262,771 
Derivative asset— — 1,180 1,180 
Total$105,826 $262,771 $1,180 $369,777 
The estimated fair value of the derivative asset related to our Royalty Interest Financing Agreement (RIFA) with HealthCare Royalty Partners was determined using Level 3 inputs. The fair value measurement of the derivative asset is sensitive to changes in the unobservable inputs used to value the financial instrument. Changes in the inputs could result in changes to the fair value of each financial instrument.
The embedded derivative asset associated with our deferred royalty obligation, as discussed further in Note 13, Long-Term Obligations, is measured at fair value using an option pricing Monte Carlo simulation model and is included as a component of the deferred royalty obligation on the condensed consolidated balance sheets. The embedded derivative asset is subject to remeasurement at the end of each reporting period, with changes in fair value recognized as a component of other (expense) income, net. The assumptions used in the option pricing Monte Carlo simulation model include: (1) our estimates of the probability and timing of related events; (2) the probability-weighted net sales of IMCIVREE, including worldwide net product sales, upfront payments, milestones and royalties; (3) our risk-adjusted discount rate that includes a company specific risk premium; (4) our cost of debt; (5) volatility; and (6) the probability of a change in control occurring during the term of the instrument.
The following tables set forth a summary of the changes in the estimated fair value of our embedded derivative liability (asset) (in thousands):
Three months ended
March 31,
20262025
Beginning aggregate estimated fair value of Level 3 liability (asset)$(1,180)$(270)
Change in fair value of embedded derivative330 80 
Ending aggregate estimated fair value of Level 3 liability (asset)$(850)$(190)
Marketable Securities
The following tables summarize the Company's marketable securities (in thousands):
March 31, 2026
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair
Value
Assets
Corporate debt securities and commercial paper (due within 1 year)$217,812 $66 $(104)$217,774 
U.S. Treasury Securities60,620 102 (8)60,714 
$278,432 $168 $(112)$278,488 
December 31, 2025
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair
Value
Assets
Corporate debt securities and commercial paper (due within 1 year)$262,412 $370 $(11)$262,771 
U.S. Treasury Securities71,634 243 — 71,877 
$334,046 $613 $(11)$334,648