v3.26.1
Fair Value Measurements (Tables)
 6 Months Ended
Jun. 30, 2026
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]  
Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table presents information about the Company’s financial assets and liabilities measured at fair value on a recurring basis and indicate the level of the fair value hierarchy utilized to determine such fair values (in thousands):

 

 

June 30, 2026

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

187,803

 

 

$

—

 

 

$

—

 

 

$

187,803

 

U.S. Treasury

 

 

—

 

 

 

62,781

 

 

 

—

 

 

 

62,781

 

Total assets measured at fair value

 

$

187,803

 

 

$

62,781

 

 

$

—

 

 

$

250,584

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Derivative liabilities – royalty agreement

 

$

—

 

 

$

—

 

 

$

2,271

 

 

$

2,271

 

Total liabilities measured at fair value

 

$

—

 

 

$

—

 

 

$

2,271

 

 

$

2,271

 

 

 

 

 

December 31, 2025

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

57,982

 

 

$

—

 

 

$

—

 

 

$

57,982

 

Total assets measured at fair value

 

$

57,982

 

 

$

—

 

 

$

—

 

 

$

57,982

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Derivative liabilities – royalty agreement

 

$

—

 

 

$

—

 

 

$

2,041

 

 

$

2,041

 

Derivative liabilities – contingent value right liability

 

 

—

 

 

 

—

 

 

 

2,196

 

 

 

2,196

 

Total liabilities measured at fair value

 

$

—

 

 

$

—

 

 

$

4,237

 

 

$

4,237

 
Schedule of Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value of Investments in Fixed Maturity Securities

The amortized cost, gross unrealized gains and losses, and fair value of investments in fixed maturity securities as of June 30, 2026 are as follows:

 

 

June 30, 2026

 

 

 

Amortized Cost

 

 

Gross Unrealized Gains

 

 

Gross Unrealized Losses

 

 

Fair Value

 

U.S. Treasury

 

$

62,807

 

 

$

195

 

 

$

(221

)

 

$

62,781

 

Total assets measured at fair value

 

$

62,807

 

 

$

195

 

 

$

(221

)

 

$

62,781

 
Schedule of Fair Value Measurement Key Assumptions

The key assumptions used to determine the fair value of the derivative liabilities – royalty agreement at June 30, 2026 and December 31, 2025 are as follows:

 

 

June 30,
2026

 

 

December 31,
2025

 

Discount rate

 

 

16.0

%

 

 

18.0

%

Probability rate of achieving FDA approval of a product (1)

 

 

56.6

%

 

 

56.6

%

Expected term to FDA regulatory approval of a product

 

1.0 years

 

 

1.5 years

 

(1) Source: Clinical Development Success Rates and Contributing Factors 2011-2020 study of drug approval success from February 2021. The probability assumption used reflects the study’s estimate of the likelihood of approval of a Phase 3 drug that has not yet submitted its full NDA.
Royalty Agreement [Member]  
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]  
Fair Value Measurement Derivative Liabilities

The following table provides a reconciliation of the liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (in thousands):

Derivative Liabilities – Royalty Agreement

 

 

2026

 

Derivative liabilities - royalty agreement

 

 

 

Balance at January 1

 

$

2,041

 

Fair value adjustments on derivative liabilities

 

 

230

 

Balance at June 30

 

$

2,271

 

 

 

 

2025

 

Derivative liabilities - royalty agreement

 

 

 

Balance at January 1

 

$

1,647

 

Fair value adjustments on derivative liabilities

 

 

394

 

Balance at December 31

 

$

2,041

 
Contingent Value Right Liability [Member]  
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]  
Fair Value Measurement Derivative Liabilities

Derivative Liabilities – Contingent Value Right Liability

 

 

2026

 

Derivative liabilities - contingent value right liability

 

 

 

Balance at January 1

 

$

2,196

 

Settlement of contingent value right

 

 

(1,994

)

Fair value adjustments on derivative liabilities

 

 

(202

)

Balance at June 30

 

$

—

 

 

 

 

2025

 

Derivative liabilities - contingent value right liability

 

 

 

Balance at January 1

 

$

1,978

 

Fair value adjustments on derivative liabilities

 

 

218

 

Balance at December 31

 

$

2,196