Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2026

The following tables set forth the fair value of the Company’s financial instruments (Level 3 in the fair value hierarchy) (in millions):


	June 30, 2026
			Fair Value
	Carrying Value		Significant Unobservable Inputs (Level 3)
Financial liabilities:
Milestone rights(1)	$	2.5	$	16.5
Financing liability(2)		103.0		104.4
Liability for sale of future royalties(3)		147.8		92.7
Contingent consideration liability(4)		34.0		34.0

(1)

Fair value was determined by applying a Monte Carlo simulation method for the calculation of the potential payment and the Geometric Brownian Motion forecasting model to estimate the underlying revenue. Market based inputs and other Level 3 inputs were used to forecast future revenue. The key inputs used included a risk-free rate of 4.27%, dividend yield of 0%, volatility of 43.0%, period of 7 years and credit risk of 12.5%.

(2)

Fair value was determined by applying a discounted cash flow analysis with a hypothetical yield of 9.5%. A change in yield of + or – 2% would result in a fair value of $93.0 million and $118.1 million, respectively.

(3)

Fair value was determined by applying a discounted cash flow analysis with a hypothetical yield of 10.5%. A change in yield of + or – 2% would result in a fair value of $85.1 million and $101.5 million, respectively.

(4)

Fair value was determined to be $28.9 million for Milestone 1 using a probability weighted expected return methodology based on the Company's estimate of probability of achievement of regulatory approval which was 95% across various timepoints and a discount rate of 11.7%. A change in estimate of probability and discount rate for Milestone 1 of + or – 2% would result in a fair value of $28.0 million and $29.8 million, respectively. Fair value was determined to be $5.1 million for Milestone 2 using a Monte Carlo simulation method based on a 56.7% volatility and 11.7% discount rate. Market based inputs and other Level 3 inputs were used to forecast future revenue. A change in discount rate on Milestone 2 of + or – 2% would result in a fair value of $5.1 million and $5.2 million, respectively.


	December 31, 2025
			Fair Value
	Carrying Value		Significant Unobservable Inputs (Level 3)
Financial liabilities:
Senior convertible notes(1)	$	36.3	$	39.3
Milestone rights(2)		2.5		22.0
Financing liability(3)		103.4		121.9
Liability for sale of future royalties(4)		151.3		168.1
Contingent consideration liability(5)		26.2		26.2

(1)

Fair value was determined by applying a discounted cash flow analysis to the straight note with a hypothetical yield of 5.0%, volatility of 40.3% and a Monte Carlo simulation for the value of the conversion feature. A change in yield of + or – 2% would result in a fair value of $39.0 million and $39.5 million, respectively.

(2)

Fair value was determined by applying a Monte Carlo simulation method for the calculation of the potential payment and the Geometric Brownian Motion forecasting model to estimate the underlying revenue. Market based inputs and other Level 3 inputs were used to forecast future revenue. The key inputs used included a risk-free rate of 3.94%, dividend yield of 0%, volatility of 43.0%, period of 7 years and credit risk of 10%.

(3)

Fair value was determined by applying a discounted cash flow analysis with a hypothetical yield of 7.0%. A change in yield of + or – 2% would result in a fair value of $106.7 million and $140.6 million, respectively.

(4)

Fair value was determined by applying a discounted cash flow analysis with a hypothetical yield of 8.0%. A change in yield of + or – 2% would result in a fair value of $148.3 million and $192.3 million, respectively.

(5)

Fair value was determined to be $23.7 million for Milestone 1 using a probability weighted expected return methodology based on the Company's estimate of probability of achievement of regulatory approval which was 85% across various timepoints and a discount rate of 10%. A change in estimate of probability and discount rate for Milestone 1 of + or – 2% would result in a fair value of $24.7 million and $22.7 million, respectively. Fair value was determined to be $2.6 million for Milestone 2 using a Monte Carlo simulation method based on a 25.2% volatility and 10% discount rate. Market based inputs and other Level 3 inputs were used to forecast future revenue. A change in discount rate on Milestone 2 of + or – 2% would result in a fair value of $2.6 million and $2.7 million, respectively.