| Schedule of Fair Value of Assets and Liabilities Measured on a Recurring Basis |
The following tables present the level in the fair value hierarchy at which the Company’s assets and liabilities are measured on a recurring basis (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total | | Fair Value Measurements Using Inputs Considered as: | | June 30, 2026 | | | Level 1 | | Level 2 | | Level 3 | | Assets: | | | | | | | | | | Derivative assets - freestanding instruments (FX) | | $ | 525 | | | $ | — | | | $ | 525 | | | $ | — | | Derivative assets - 2029 Capped Calls | | 57,293 | | | — | | | — | | | 57,293 | | Investment in convertible notes receivable | | 3,000 | | | — | | | — | | | 3,000 | | | | $ | 60,818 | | | $ | — | | | $ | 525 | | | $ | 60,293 | | | Liabilities: | | | | | | | | | | Derivative liabilities - freestanding instruments (FX) | | $ | 61 | | | $ | — | | | $ | 61 | | | $ | — | | Derivative liabilities - 2029 Embedded Derivative | | 152,904 | | | — | | | — | | | 152,904 | | ImThera contingent consideration arrangements | | 42,121 | | | — | | | — | | | 42,121 | | | | $ | 195,086 | | | $ | — | | | $ | 61 | | | $ | 195,025 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total | | Fair Value Measurements Using Inputs Considered as: | | December 31, 2025 | | | Level 1 | | Level 2 | | Level 3 | | Assets | | | | | | | | | | Derivative assets - freestanding instruments (FX) | | $ | 165 | | | $ | — | | | $ | 165 | | | $ | — | | Derivative assets - 2029 Capped Calls | | 36,551 | | | — | | | — | | | 36,551 | | Investment in convertible notes receivable | | 3,000 | | | — | | | — | | | 3,000 | | | | $ | 39,716 | | | $ | — | | | $ | 165 | | | $ | 39,551 | | | Liabilities | | | | | | | | | Derivative liabilities - freestanding instruments (FX) | | $ | 99 | | | $ | — | | | $ | 99 | | | $ | — | | Derivative liabilities - 2029 Embedded Derivative | | 83,904 | | | — | | | — | | | 83,904 | | ImThera contingent consideration arrangements | | 92,075 | | | — | | | — | | | 92,075 | | | | $ | 176,078 | | | $ | — | | | $ | 99 | | | $ | 175,979 | |
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| Schedule of Recurring Fair Value Measurements Using Significant Unobservable Inputs |
The tables below present reconciliations of recurring fair value measurements that use significant unobservable inputs (Level 3) (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Derivative Assets - 2029 Capped Calls (1) | | Investment in Convertible Notes Receivable | | Derivative Liabilities - 2029 Embedded Derivative (1) | | ImThera Contingent Consideration Arrangements Liability | | March 31, 2026 | | $ | 38,277 | | | $ | 3,000 | | | $ | 93,254 | | | $ | 102,730 | | | Payment | | — | | | — | | | — | | | (60,458) | | Changes in fair value (2) | | 19,016 | | | — | | | 59,650 | | | (151) | | | June 30, 2026 | | $ | 57,293 | | | $ | 3,000 | | | $ | 152,904 | | | $ | 42,121 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Derivative Assets - 2025 Capped Calls (1) | | Derivative Assets - 2029 Capped Calls (1) | | Derivative Liabilities - 2025 Embedded Derivative (1) | | Derivative Liabilities - 2029 Embedded Derivative (1) | | ImThera Contingent Consideration Arrangements Liability | | March 31, 2025 | | $ | 805 | | | $ | 17,190 | | | $ | 874 | | | $ | 37,226 | | | $ | 85,140 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Changes in fair value (2) | | 498 | | | 4,468 | | | 489 | | | 10,867 | | | 2,787 | | | June 30, 2025 | | $ | 1,303 | | | $ | 21,658 | | | $ | 1,363 | | | $ | 48,093 | | | $ | 87,927 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | Derivative Assets - 2029 Capped Calls (1) | | Investment in Convertible Notes Receivable | | Derivative Liabilities - 2029 Embedded Derivative (1) | | ImThera Contingent Consideration Arrangements Liability | | December 31, 2025 | | $ | 36,551 | | | $ | 3,000 | | | $ | 83,904 | | | $ | 92,075 | | | Payment | | — | | | — | | | — | | | (60,458) | | Changes in fair value (2) | | 20,742 | | | — | | | 69,000 | | | 10,504 | | | June 30, 2026 | | $ | 57,293 | | | $ | 3,000 | | | $ | 152,904 | | | $ | 42,121 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Derivative Assets - 2025 Capped Calls (1) | | Derivative Assets - 2029 Capped Calls (1) | | Derivative Liabilities - 2025 Embedded Derivative (1) | | Derivative Liabilities - 2029 Embedded Derivative (1) | | ImThera Contingent Consideration Arrangements Liability | | December 31, 2024 | | $ | 2,624 | | | $ | 23,735 | | | $ | 2,915 | | | $ | 51,819 | | | $ | 84,218 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Changes in fair value (2) | | (1,321) | | | (2,077) | | | (1,552) | | | (3,726) | | | 3,709 | | | June 30, 2025 | | $ | 1,303 | | | $ | 21,658 | | | $ | 1,363 | | | $ | 48,093 | | | $ | 87,927 | |
(1)Gains and losses are recorded in foreign exchange and other income/(expense) in the condensed consolidated statements of income (loss). (2)For the three months ended June 30, 2026, the contingent consideration changes in fair value resulted in a decrease of $1.0 million and an increase of $0.8 million recorded to cost of sales and R&D, respectively. For the comparable 2025 period, the contingent consideration changes in fair value resulted in increases of $1.5 million and $1.2 million recorded to cost of sales and R&D, respectively. For the six months ended June 30, 2026, the contingent consideration changes in fair value resulted in increases of $0.1 million and $10.4 million recorded to cost of sales and R&D, respectively. For the comparable 2025 period, the contingent consideration changes in fair value resulted in increases of $1.8 million and $1.9 million recorded to cost of sales and R&D, respectively.
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