v3.26.1
Fair Value Measurements
 6 Months Ended
Jun. 30, 2026
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, 2026
(In millions)TotalQuoted Prices
in Active
Markets
(Level 1)		Significant
Other Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
Assets:
Cash equivalents$569.4 $— $569.4 $— 
Marketable equity securities184.0 184.0 — — 
Other current assets:
Derivative contracts21.6 — 21.6 — 
Other non-current assets:
Convertible notes(1)
35.0 — — 35.0 
Plan assets for deferred compensation64.2 — 64.2 — 
Derivative contracts7.7 — 7.7 — 
Total$881.9 $184.0 $662.9 $35.0 
Liabilities:
Other current liabilities:
Derivative contracts$26.6 $— $26.6 $— 
Other non-current liabilities:
Contingent consideration obligations273.5 — — 273.5 
Total$300.1 $— $26.6 $273.5 
(1) Convertible notes includes a $30.0 million convertible note we invested in City Therapeutics as part of our strategic research arrangement with the company during 2025, as well as a $5.0 million convertible note we invested into Neela Therapeutics, Inc. during 2025. We elected the fair value option for both convertible notes. For additional information on the arrangement with City Therapeutics, please read Note 19, Collaborative and Other Relationships, to our consolidated financial statements included in our 2025 Form 10-K.
Fair Value Measurements on a Recurring Basis
As of December 31, 2025
(In millions)TotalQuoted Prices
in Active
Markets
(Level 1)		Significant
Other Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
Assets:
Cash equivalents$2,233.2 $— $2,233.2 $— 
Marketable debt securities:
Corporate debt securities537.6 — 537.6 — 
Government securities648.8 — 648.8 — 
Mortgage and other asset backed securities52.7 — 52.7 — 
Marketable equity securities118.1 118.1 — — 
Other current assets:
Derivative contracts10.0 — 10.0 — 
Other non-current assets:
Convertible notes(1)
35.0 — — 35.0 
Plan assets for deferred compensation52.2 — 52.2 — 
Derivative contracts0.4 — 0.4 — 
Total$3,688.0 $118.1 $3,534.9 $35.0 
Liabilities:
Other current liabilities:
Derivative contracts$56.7 $— $56.7 $— 
Other non-current liabilities:
Derivative contracts2.2 — 2.2 — 
Contingent consideration obligations246.4 — — 246.4 
Total$305.3 $— $58.9 $246.4 
(1) Convertible notes includes a $30.0 million convertible note we invested in City Therapeutics as part of our strategic research arrangement with the company during 2025, as well as a $5.0 million convertible note we invested into Neela Therapeutics, Inc. during 2025. We elected the fair value option for both convertible notes. For additional information on the arrangement with City Therapeutics, please read Note 19, Collaborative and Other Relationships, to our consolidated financial statements included in our 2025 Form 10-K.
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. For additional information on our investment in Denali common stock, please read Note 9, Financial Instruments, and Note 17, Other Consolidated Financial Statement Detail, to these condensed consolidated financial statements.
There have been no material impairments of our assets measured and carried at fair value nor changes to our valuation techniques as of June 30, 2026 and December 31, 2025.
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 2025 Form 10-K.
Level 3 Assets and Liabilities Held at Fair Value
The following tables present 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, 2026
(In millions)Fair ValueValuation TechniqueSignificant
Unobservable Input(s)		RangeWeighted Average
Liabilities:
Contingent consideration obligations$269.4 Discounted cash flowDiscount rate
5.9%
5.9%
Expected timing of achievement of development milestones
2028
—
Quantitative Information about Level 3 Fair Value Measurements
As of December 31, 2025
(In millions)Fair ValueValuation TechniqueSignificant
Unobservable Input(s)		RangeWeighted Average
Liabilities:
Contingent consideration obligations$246.4 Discounted cash flowDiscount rate
5.3% - 5.4%
5.4%
Expected timing of achievement of development milestones
2028 - 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 75.0% to approximately 95.0% as of June 30, 2026.
There were no transfers of assets or liabilities into or out of Level 3 as of June 30, 2026 and December 31, 2025.
Contingent Consideration Obligations
In connection with our acquisition of HI-Bio in July 2024 and our acquisition of Apellis in May 2026 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:
For the Three Months Ended June 30,For the Six Months Ended June 30,
(In millions)2026202520262025
Fair value, beginning of period$266.9 $522.4 $246.4 $512.8 
Contingent consideration related to the acquisition of Apellis4.1 — 4.1 — 
Changes in fair value2.5 13.2 23.0 22.8 
Payments— (0.7)— (0.7)
Fair value, end of period$273.5 $534.9 $273.5 $534.9 
Changes in the fair value of our contingent consideration obligations, other than changes due to payments, are recognized as a (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 2025 Form 10-K.
As of June 30, 2026 and December 31, 2025, contingent consideration liabilities of $273.5 million and $246.4 million, respectively, were classified as long-term and reflected as a component of other long-term liabilities in our condensed consolidated balance sheets.
For the three and six months ended June 30, 2026, changes in the fair value of our contingent consideration obligations were primarily due to changes in the probabilities of success and expected timing of the achievement of certain remaining developmental milestones related to our acquisition of HI-Bio, and the recognition of a $4.1 million obligation related to the acquisition of Apellis.
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 paid during the third quarter of 2025. In October 2025 the second milestone
related to the fourth patient dosed in a phase 3 clinical trial of felzartamab for IgAN was achieved, resulting in a $150.0 million milestone payment made to the former shareholders of HI-Bio during the fourth quarter of 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, 2026As of December 31, 2025
(In millions)Fair
Value		Carrying
Value		Fair
Value		Carrying
Value
Current portion:
2026 Term Loan 364-day tranche(1)
$799.9 $800.0 $— $— 
Current portion of notes payable799.9 800.0 — — 
Non-current portion:
2026 Term Loan two-year tranche(1)
999.9 1,000.0 — — 
2.250% Senior Notes due May 1, 2030
1,368.7 1,496.2 1,378.7 1,495.7 
5.050% Senior Notes due January 15, 2031
404.6 398.1 413.0 398.0 
5.750% Senior Notes due May 15, 2035
675.1 645.7 684.5 645.5 
5.200% Senior Notes due September 15, 2045
1,031.3 1,101.7 1,029.5 1,101.5 
3.150% Senior Notes due May 1, 2050
973.4 1,476.0 973.0 1,475.6 
3.250% Senior Notes due February 15, 2051
458.9 482.3 461.8 480.3 
6.450% Senior Notes due May 15, 2055
744.0 690.2 737.6 690.2 
Non-current portion of notes payable6,655.9 7,290.2 5,678.1 6,286.8 
Total notes payable$7,455.8 $8,090.2 $5,678.1 $6,286.8 
(1) In connection with our acquisition of Apellis we drew $2.0 billion from the 2026 Term Loan, comprised of a $1.0 billion floating rate 364-day tranche and a $1.0 billion floating rate two-year tranche. For additional information on our 2026 Term Loan, please read Note 12, 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, 2026, compared to December 31, 2025, are primarily related to increases in U.S. treasury yields, partially offset by lower credit spreads used to value our Senior Notes since December 31, 2025. For additional information related to our Senior Notes, please read Note 13, Indebtedness, to our consolidated financial statements included in our 2025 Form 10-K.