v3.26.1
Fair Value of Financial Instruments
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments Fair Value of Financial Instruments
Fair value measurements and disclosures describe the fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value, as follows:
Level 1 inputs:Quoted prices (unadjusted) in active markets for identical assets or liabilities. An active market is defined as a market where transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis.
Level 2 inputs:Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Examples of Level 2 inputs include quoted prices in active markets for similar assets or liabilities and quoted prices for identical assets or liabilities in markets that are not active.
Level 3 inputs:Unobservable inputs that reflect the Company’s own assumptions about the assumptions market participants would use in pricing the asset or liability.
The Company invests in instruments within defined credit parameters to minimize credit risk while ensuring liquidity.
There were no transfers between Levels 1, 2, and 3 during the six months ended June 30, 2026 and 2025.
The following table presents the Company’s financial instruments carried at fair value using the lowest level input applicable to each financial instrument as of June 30, 2026 and December 31, 2025:
TotalQuoted Prices
in active
markets
(Level 1)		Significant
other
observable
inputs
(Level 2)		Significant
unobservable
inputs
(Level 3)
June 30, 2026
Assets
Cash equivalents:
Money market funds$27,317 $27,317 $— $— 
Total assets measured at fair value$27,317 $27,317 $— $— 
Liabilities
Contingent consideration$38,525 $— $— $38,525 
Total liabilities measured at fair value$38,525 $— $— $38,525 
December 31, 2025
Cash equivalents:
Money market funds$119,363 $119,363 $— $— 
Marketable securities:
Corporate debt securities140,261 — 140,261 — 
U.S. Treasury securities2,959 — 2,959 — 
Government-sponsored securities 5,000 — 5,000 — 
Commercial paper7,207 — 7,207 — 
Total assets measured at fair value$274,790 $119,363 $155,427 $— 
Contingent Consideration
The Company’s contingent consideration liability is related to the Azstarys Acquisition in 2026. The Azstarys Acquisition included a contingent payment of $135,000 related to the achievement of certain future commercial and manufacturing milestones eligible to be earned through various achievement periods, extending through March 31, 2029.
The contingent consideration liability is measured at fair value using a discounted cash flow method for technical milestones and a Monte Carlo simulation for net sales-based milestones. The Company classifies its contingent consideration liability as a Level 3 fair value measurement. The following table presents the significant unobservable inputs used in the fair value measurements as of June 30, 2026 (in thousands, except percentages and dates):
Contingent Consideration LiabilityFair Value at
June 30, 2026		Valuation TechniqueSignificant Unobservable InputsRange
Technical milestones$27,290 Discounted cash flowProbability of payment
81.0% - 90.0%
Expected achievement dates
March 2027 - December 2027
Payment discount rate
5.8% - 6.0%
Net sales-based milestones11,235 Monte Carlo simulationNet sales volatility35.0%
Net sales discount rate11.0%
Payment discount rate
5.7% - 6.2%
Total contingent consideration$38,525 

Significant increases or decreases in the probability of achievement, expected achievement dates, net sales volatility or discount rates could result in a higher or lower fair value measurement.

Change in the Fair Value of Contingent Consideration

The following table provides a reconciliation of the beginning and ending balances related to the contingent consideration for the Azstarys Acquisition (dollars in thousands):
Azstarys Acquisition
Contingent Consideration
Balance as of December 31, 2025$— 
Azstarys Acquisition date fair value38,525 
Balance as of June 30, 2026$38,525 

Assets and Liabilities Not Carried at Fair Value
Convertible Senior Notes
The Company’s convertible senior notes are considered Level 2 financial liabilities. The fair value was determined based on data points other than quoted prices that are observable, either directly or indirectly, such as broker quotes in a non-active market. As of June 30, 2026, the fair value of the Company’s 2.875% convertible senior notes due in 2029 was $298,554 and the net carrying value was $238,733.
Term Notes Payable
The Company’s term notes are considered Level 2 financial liabilities. The fair value was determined using quoted prices for similar liabilities in active markets, as well as inputs that are observable for the liability (other than quoted prices), such as interest rates that are observable at commonly quoted intervals. As of June 30, 2026, the carrying amount of the term notes reasonably approximated the estimated fair value.
Deferred Royalty Obligation
The Company’s deferred royalty obligation liability was assumed as part of the Ironshore Acquisition in 2024. Refer to Note 14, Deferred Royalty Obligation, for more information.
The deferred royalty obligation is considered a Level 3 fair value measurement. The fair value of the Company’s deferred royalty obligation was approximately $142,617 as of June 30, 2026 and a net carrying value of $121,357.
Other Assets and Liabilities
As of June 30, 2026, and December 31, 2025, the carrying amounts of cash and cash equivalents, accounts receivable, prepaid expenses and other assets, accounts payable, accrued liabilities, and accrued rebates, returns and discounts reasonably approximated their estimated fair values.