The Company’s leases consist of operating leases for facility space to support general office, research and development, manufacturing and warehouse facilities, and equipment. These non-cancellable operating leases have initial lease terms from two years to thirteen years.

In September 2021, the Company entered into a lease agreement for 181,949 square feet of general administrative, laboratory, and research and development office space located on High Bluff Drive in San Diego, California (Headquarters Lease). The Headquarters Lease term expires in April 2035.

In December 2023, the Company entered into an agreement to sublease the Phase II portion of the leased premises under the Headquarters Lease from January 2025 through March 2029, for which accounting commenced in January 2025. The Company recognizes the sublease income on a straight-line basis over the term of the sublease which is classified in the Company’s consolidated statements of operations and comprehensive loss as a reduction of rent expense in selling, general and administrative expense (SG&A).

In the first quarter of 2025, the Company recorded operating lease impairment charges totaling $6.7 million in operating expenses. This included a $3.6 million impairment related to a portion of the Headquarters Lease in connection with its sublease agreement. The impairment charge also included $3.1 million related to the transfer of certain development activities from Lausanne, Switzerland to the United States and changes in assumptions for estimated future sublease income for the Company’s lease for space on Vista Sorrento Parkway in San Diego, California, which the Company ceased using in 2023.

The Company’s lease costs recorded in the consolidated statements of operations were as follows for the three and six months ended June 30, 2026 and 2025 (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Operating lease cost (excluding sublease income)	$	4,209	$	4,304	$	8,461	$	8,523
Short-term lease cost	25		111		48		118
Loss on lease termination and right-of-use asset impairment charges	—		—		—		6,697
Sublease income	(583)		(566)		$	(1,165)	$	(1,132)
Total lease cost	$	3,651	$	3,849	$	7,344	$	14,206


Years Ending December 31,
2026 (remaining)	$	9,197
2027	22,367
2028	18,770
2029	17,606
2030	18,501
Thereafter	91,243
Total undiscounted lease payments	177,684
Less: amount representing interest	(41,008)
Present value of operating lease liabilities	136,676
Less: current portion of operating lease liabilities	(20,265)
Operating lease liabilities - long-term	$	116,411

The weighted-average remaining lease term and weighted-average discount rate for operating leases were as follows as of June 30, 2026 and December 31, 2025:


	June 30, 2026		December 31, 2025
Weighted-average remaining lease term (in years)	8.6		8.6
Weighted-average discount rate used to determine operating lease liabilities	5.8	%	5.8	%