v3.26.1
Fair Value Measurements
 3 Months Ended
Mar. 31, 2026
Fair Value Measurements  
Fair Value Measurements

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3.       Fair Value Measurements

The fair values of financial instruments are classified into one of the following categories based upon the lowest level of input that is significant to the fair value measurement:

●Level 1 — Quoted prices in active markets for identical assets or liabilities.
●Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
●Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The fair values of cash equivalents approximate their carrying values due to the short-term nature of such financial instruments.

Unrealized gains and losses on available-for-sale debt securities are reported as a component of other comprehensive income (loss), with the exception of unrealized losses believed to be related to credit losses, if any, which are recognized in earnings in the period the impairment occurs. Impairment assessments are made at the individual security level each reporting period. When the fair value of an available-for-sale debt investment is less than its cost at the balance sheet date, a determination is made as to whether the impairment is related to a credit loss and, if it is, the portion of the impairment relating to credit loss is recorded as an allowance through net income. Realized gains and losses, if any, on available-for-sale securities are included in other income (expense), net, in the condensed consolidated statements of operations based on the specific identification method.

The Revenue Participation Right Purchase and Sale Agreement (the “Revenue Purchase and Sale Agreement”), dated as of May 8, 2024 among the Company and Coduet Royalty Holdings, LLC, as administrative agent and each buyer named in an annex thereto (collectively, the “Purchaser Group”) (see Note 8. Financial Liabilities) contained an embedded derivative that met the criteria to be bifurcated and accounted for separately from the Revenue Purchase and Sale Agreement (the "Royalty Fee Derivative Liability"). To estimate the fair value, the Company uses Monte Carlo simulation models that require the use of Level 3 unobservable inputs, primarily the amount and timing of our expected future revenue, the estimated volatility of these revenues, the discount rate corresponding to the risk of revenue, and the probability of certain events. During the three months ended March 31, 2026, the fair value of the Royalty Fee Derivative Liability did not materially change. During the three months ended March 31, 2025, the Company recorded a charge of $12.6 million, for the change in estimated fair value, of which $11.8 million related to UDENYCA and was

classified within discontinued operations, and $0.8 million related to LOQTORZI and was recorded in other income (expense), net on the condensed consolidated statements of operations. 

Financial liabilities related to long-term debt obligations are summarized in Note 8. Financial Liabilities. Other financial assets and liabilities from continuing operations measured at fair value on a recurring basis are summarized as follows:

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Fair Value Measurements

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March 31, 2026

(in thousands)

  ​ ​ ​

Level 1

  ​ ​ ​

Level 2

  ​ ​ ​

Level 3

  ​ ​ ​

Total

Financial Assets:

 

​

​

 

​

  ​

 

​

  ​

 

​

  ​

Cash equivalents(1)

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$

110,493

​

$

3,945

​

$

—

​

$

114,438

Marketable debt securities:

​

 

​

​

 

​

​

 

​

​

 

​

U.S. treasury securities

​

​

24,444

​

​

—

​

​

—

​

​

24,444

Commercial paper and corporate notes

​

​

—

​

​

27,366

​

​

—

​

​

27,366

Total

​

$

134,937

​

$

31,311

​

$

—

​

$

166,248

Financial Liabilities:

​

 

​

​

 

  ​

​

 

  ​

​

 

  ​

Royalty Fee Derivative Liability

​

$

—

​

$

—

​

$

1,490

​

$

1,490

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​

​

​

​

​

​

​

​

​

​

​

​

​

​

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Fair Value Measurements

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December 31, 2025

(in thousands)

  ​ ​ ​

Level 1

  ​ ​ ​

Level 2

  ​ ​ ​

Level 3

  ​ ​ ​

Total

Financial Assets:

 

​

​

 

​

  ​

 

​

  ​

 

​

  ​

Cash equivalents(1)

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$

78,278

​

$

1,708

​

$

—

​

$

79,986

Marketable debt securities:

​

 

​

​

 

​

​

 

​

​

 

​

U.S. government agency securities

​

​

3,803

​

​

—

​

​

—

​

​

3,803

U.S. treasury securities

​

​

42,303

​

​

—

​

​

—

​

​

42,303

Commercial paper and corporate notes

​

​

—

​

​

37,140

​

​

—

​

​

37,140

Total

​

$

124,384

​

$

38,848

​

$

—

​

$

163,232

Financial Liabilities:

​

​

​

​

​

​

​

​

​

​

​

​

Royalty Fee Derivative Liability

​

$

—

​

$

—

​

$

1,490

​

$

1,490

(1)Cash equivalents may include the following: money market funds, U.S. treasury securities, commercial paper or corporate notes with original maturities of 90 days or less.

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The cost, unrealized gains or losses, and fair value by investment type are summarized as follows:

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​

​

​

​

​

​

​

​

​

​

​

March 31, 2026

(in thousands)

  ​ ​ ​

Cost

  ​ ​ ​

Unrealized Gain

  ​ ​ ​

Unrealized (Loss)

  ​ ​ ​

Fair Value

Money market funds

​

$

110,493

​

$

—

​

$

—

​

$

110,493

U.S. treasury securities

​

​

24,438

​

​

6

​

​

—

​

​

24,444

Commercial paper and corporate notes

​

​

31,310

​

​

5

​

​

(4)

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​

31,311

Total

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$

166,241

 

$

11

​

$

(4)

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$

166,248

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​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2025

(in thousands)

  ​ ​ ​

Cost

  ​ ​ ​

Unrealized Gain

  ​ ​ ​

Unrealized (Loss)

  ​ ​ ​

Fair Value

Money market funds

​

$

78,278

​

$

—

​

$

—

​

$

78,278

U.S. government agency securities

​

​

3,800

 

​

3

​

​

—

​

​

3,803

U.S. treasury securities

​

​

42,257

​

​

46

​

​

—

​

​

42,303

Commercial paper and corporate notes

​

​

38,817

​

​

31

​

​

—

​

​

38,848

Total

​

$

163,152

 

$

80

​

$

—

​

$

163,232

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For the three months ended March 31, 2026 and 2025, the Company did not recognize any expected credit losses. As of March 31, 2026, the remaining contractual maturities of available-for-sale securities were less than one year, and the average maturity of investments upon acquisition was approximately eight months. The Company expects to collect all contractual principal and interest payments and does not intend to sell these investments before recovery of their amortized cost basis. The accrued interest receivable on available-for-sale marketable securities was immaterial at March 31, 2026 and December 31, 2025.

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