Note 17. Commitments and Contingencies

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Real Estate Lease Agreement

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In July 2025, the Company entered into an agreement to lease approximately 225,167 square feet of building space in Rancho Cucamonga, California. The non-cancelable lease term is approximately 10 years with a renewal option to extend the lease for two additional five-year periods. The monthly lease payments are $0.3 million subject to an annual increase of 3.25%. Upon the lease commencement in January 2026, the Company recorded an initial Right-of-Use, or ROU, asset of $27.7 million and corresponding operating lease liability of $27.4 million, based on an incremental borrowing rate of 7.0%. The renewal option was not considered in the determination of the ROU asset or operating lease liability as the Company is not reasonably certain it would exercise this option.

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BAQSIMI^®

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On June 30, 2023, the Company completed its acquisition of BAQSIMI^® pursuant to an asset purchase agreement, or the Purchase Agreement, with Eli Lilly & Company, or Lilly, dated April 21, 2023.

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In June 2026, the Company achieved the first annual net sales milestone of $175.0 million under the Purchase Agreement, triggering a milestone payment of $100.0 million that is due in the third quarter of 2026. The milestone payment was allocated to the acquired intangible assets and property, plant and equipment in the Company’s condensed consolidated balance sheet as of June 30, 2026 on a basis consistent with their estimated relative fair values at the acquisition date, as follows:

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The Company is amortizing the additional cost basis of the intangible asset using the straight-line method over its remaining estimated useful life of 21 years.

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As of June 30, 2026 the Company has made total cash payments to Lilly of $629.0 million under the Purchase Agreement, including the upfront payment and guaranteed first anniversary payment totaling $625.0 million, and the $4.0 million upon assignment of certain contracts after the first anniversary of the closing. Additionally, the $100.0 million payment is due in the third quarter of 2026 as a result of triggering an annual net sales milestone in June 2026.

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The Company may be obligated to make further milestone payments to Lilly of up to $350.0 million under the Purchase Agreement as follows: (i) up to two payments of $100.0 million each if the Company achieves annual net sales of $200.0 million or more of BAQSIMI^® and certain related products, or Milestone Products, in any one contract year during the first five years after the Closing; and (ii) a one-time payment of $150.0 million if the Company achieves total cumulative net sales of $950.0 million or more of the Milestone Products for the first five years after the Closing. In addition, the Company assumed certain contingent consideration of Lilly, which would require the Company to pay up to an aggregate of $125.0 million based on the achievement of annual net sales milestones of $350.0 million, $400.0 million and $600.0 million.

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Licensing Agreement with Nanjing Anji Biotechnology Co., Ltd.

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In August 2025, the Company and Nanjing Anji Biotechnology Co., Ltd., or Anji, entered into a License Agreement, or License Agreement, pursuant to which Anji has granted the Company an exclusive license to certain intellectual property to develop, make, use and commercialize products incorporating or comprising certain compounds, including three identified products, or Licensed Products, in the United States and Canada, or the Territory. Anji has also been granted a non-exclusive license under certain intellectual property controlled by the Company to develop, make, use and commercialize Licensed Products outside the Territory.

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As part of the agreement, in 2025, the Company made earnest money and upfront payments for a total of $6.0 million, which was recorded as a research and development expense in the Company’s condensed consolidated statement of operations.

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The Company is also obligated to make cash payments to Anji, consisting of up to $42.0 million in development-based milestone payments and up to $225.0 million in sales-based milestone payments, subject to the achievement of the applicable development and sales milestone events respectively, and royalty payments of 5% on net sales, not to exceed a maximum annual amount of $22.5 million each calendar year for each Licensed Product and a maximum accumulated amount of $60.0 million for each Licensed Products. The Company is also required to pay Anji a certain percentage of sublicense income received from the sublicense transactions. The term of this License Agreement will expire, on a Licensed Product-by-Licensed Product and region-by-region basis, on the tenth anniversary of the first commercial sale of such Licensed Product in the applicable region in the Territory, with the Company having the right to extend the License Agreement until the earlier of ten additional years or the expiration, lapse, or invalidation of the last remaining valid claim of the patents licensed by Anji to the Company that covers the Licensed Products in the Territory. Through June 30, 2026, the Company has not triggered any milestones and therefore no amounts have been recognized or paid.

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Licensing Agreement with Nanjing Hanxin Pharmaceutical Technology Co., Ltd.

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In January 2026, the Company and Nanjing Hanxin Pharmaceutical Technology Co., Ltd., or Hanxin, a related party, entered into a license agreement pursuant to which Hanxin has granted the Company an exclusive license to certain intellectual property controlled by Hanxin to develop, make, use and commercialize products incorporating or comprising of corticotropin compound, or corticotropin, in the United States and Canada, or the Territory. Hanxin has also granted a non-exclusive license under certain intellectual property controlled by the Company to develop, make, use and commercialize corticotropin outside the Territory.

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As part of the agreement, the Company made an upfront payment of $2.0 million during the six months ended June 30, 2026, which was recorded as a research and development expense in the Company’s condensed consolidated statement of operations.

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The Company is also obligated to make cash payments to Hanxin, consisting of up to $14.0 million in development milestone payments and up to $75.0 million in sales milestone payments, subject to the achievement of the applicable development and sales milestone events respectively, and royalty payments of 5% on net sales, not to exceed a maximum annual amount of $7.5 million each calendar year and a maximum accumulated amount of $60.0 million for corticotropin. Hanxin will pay to the Company a royalty payment of net sales of corticotropin that are based on any patents licensed by the Company to Hanxin under the License Agreement or regulatory exclusivity covering corticotropin. The term of the license agreement will expire, region-by-region basis, on the tenth anniversary of the first commercial sale of corticotropin in the applicable region, with the Company having the right to extend the license agreement until the earlier of ten additional years or the expiration, lapse, or invalidation of the last remaining valid claim of the patents licensed by Hanxin to the Company that covers the product. Through June 30, 2026, the Company has not triggered any milestones and therefore no amounts have been recognized or paid.