v3.26.1
Basis of Presentation and Summary of Significant Accounting Policies (Tables)
 6 Months Ended
Jun. 30, 2026
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Reconciliation of Operating Profit (Loss) from Segments to Consolidated
The information on significant segment expenses that are regularly provided to the CODM, and other segment items included within the reported segment profit or loss measure, is presented in a table below:
Three months endedSix months ended
June 30,June 30,
2026202520262025
Total revenues and income$63,693 $47,627 $115,415 $92,960 
Share-based compensation(13,653)(9,997)(24,249)(17,833)
Other segment items:
Amortization of intangibles(8,097)(8,258)(16,194)(16,515)
Depreciation of property and equipment(118)(264)(237)(777)
Interest income7,298 1,621 13,953 3,392 
Interest expense(1,748)(1,153)(3,495)(2,020)
Other *1,133 (24,729)(50,030)(96,811)
Net income (loss)$48,508 $4,847 $35,163 $(37,604)
* Other for the three months ended June 30, 2026 and 2025 include the amount of other general, administrative, research and development expenses of $30.0 million and $16.5 million (net of share-based compensation and depreciation expenses), respectively, and additional income and expense items that are presented in the condensed consolidated statements of operations such as fair value adjustments to partner program derivatives, cost of Captisol and other non-operating income and expenses.
Other for the six months ended June 30, 2026 and 2025 include the amount of other general, administrative, research and development expenses of $42.3 million and $77.0 million (net of share-based compensation and depreciation expenses), respectively, and additional income and expense items that are presented in the condensed consolidated statements of operations such as fair value adjustments to partner program derivatives, cost of Captisol and other non-operating income and expenses.
Schedule of Revenue by Source
The following table represents disaggregation of royalties, Captisol, and contract revenue and income (in thousands):
Three months endedSix months ended
June 30,June 30,
2026202520262025
Royalties
Filspari$13,567 $6,578 $24,889 $11,879 
Kyprolis7,044 8,803 13,784 13,526 
Ohtuvayre4,144 2,084 7,131 3,496 
Rylaze 3,201 2,864 6,422 5,983 
Capvaxive2,316 2,250 4,285 3,135 
Vaxneuvance1,351 2,643 2,961 3,928 
Teriparatide injection 1,470 2,298 2,791 3,489 
Other4,269 2,564 8,030 6,235 
Revenue from intangible royalty assets37,362 30,084 70,293 51,671 
Qarziba6,150 5,885 12,449 11,327 
Ohtuvayre inventors3,294 — 6,341 — 
Other1,226 428 1,907 888 
Income from financial royalty assets10,670 6,313 20,697 12,215 
Total royalties48,032 36,397 90,990 63,886 
Captisol7,978 8,287 16,632 21,747 
Contract revenue and income
Contract revenue
2,683 1,926 2,793 6,310 
Income5,000 1,017 5,000 1,017 
Total contract revenue and income7,683 2,943 7,793 7,327 
Total revenues and income$63,693 $47,627 $115,415 $92,960 
Schedule of Short-Term Investments
The following table summarizes the various categories of our short-term investments at June 30, 2026 and December 31, 2025 (in thousands):
June 30, 2026
Amortized costGross unrealized gainsGross unrealized lossesEstimated fair value
     U.S. Government Agencies$145,569 $— $(393)$145,176 
     U.S. Treasuries65,430 — (164)65,266 
     Corporate notes/bonds
52,307 — (130)52,177 
     Corporate equity securities20,850 63,477 (3,314)81,013 
     Commercial paper
7,430 — (6)7,424 
Total short-term investments$291,586 $63,477 $(4,007)$351,056 
December 31, 2025
     U.S. Government Agencies$175,780 $89 $(38)$175,831 
     Corporate notes/bonds124,249 98 (52)124,295 
     U.S. Treasuries113,055 137 (4)113,188 
     Commercial paper74,473 21 (8)74,486 
     Corporate equity securities
15,733 58,852 (3,791)70,794 
Total short-term investments
$503,290 $59,197 $(3,893)$558,594 
Schedule of Available-for-Sale Debt Securities
The following table summarizes our available-for-sale debt securities by contractual maturity (in thousands):
June 30, 2026
Amortized CostFair Value
Within one year$180,608 $180,379 
After one year through five years90,128 89,664 
Total$270,736 $270,043 
Schedule of Goodwill and Other Identifiable Intangible Assets
Goodwill and other identifiable intangible assets consist of the following (in thousands):
June 30, 2026December 31, 2025
Indefinite-lived intangible assets
     Goodwill$101,541 $101,541 
Definite-lived intangible assets
     Complete technology29,619 29,619 
          Less: accumulated amortization(21,763)(20,809)
     Trade name2,642 2,642 
          Less: accumulated amortization(2,043)(1,976)
     Customer relationships29,600 29,600 
          Less: accumulated amortization(22,889)(22,144)
    Contractual relationships360,000 360,000 
          Less: accumulated amortization(165,922)(151,494)
    Total definite lived intangible assets209,244 225,438 
Total goodwill and other identifiable intangible assets, net$310,785 $326,979 
Schedule of Derivative Assets Derivative assets consist of the following (in thousands):
June 30, 2026December 31, 2025
LeonaBio Series A Warrant$923 $— 
     Total current derivative assets(1)
$923 $— 
Orchestra Warrant$6,810 $3,799 
Castle Creek Warrant5,250 4,989 
Pelthos Conversion Option3,303 3,432 
Agenus Warrant(2)
1,226 1,322 
LeonaBio Warrants (noncurrent)922 1,461 
Arecor Warrant402 629 
     Total noncurrent derivative assets$17,913 $15,632 
(1) Current derivative assets are included within other current assets in the condensed consolidated balance sheets.
(2) In connection with the entry into the Purchase and Sale Agreement with Agenus in May 2024, Agenus issued us a five-year warrant (“Agenus Warrant”) to purchase 867,052 shares of its common stock, at an exercise price equal to $17.30. On December 22, 2025, we entered into an amendment to the Purchase and Sale Agreement with Agenus reducing the Agenus Warrant exercise price from $17.30 to $7.50. The fair value of the Agenus Warrant is determined using a
Black-Scholes model. The following assumptions were used as of June 30, 2026 and December 31, 2025, respectively: expected term of 2.9 years and 3.4 years, volatility of 102% and 97%, risk-free rate of 4.2% and 3.6%, Agenus stock price of $3.06 and $3.14.
Schedule of Other Investment
Other investments consist of the following (in thousands):
June 30, 2026December 31, 2025
Pelthos Series A convertible preferred shares$96,870 $106,262 
Equity securities in Primrose Bio6,501 6,531 
InvIOs investment
4,500 4,500 
Pelthos loan receivable5,359 4,158 
Cost method investment in Zerion1,253 — 
     Total other investments$114,483 $121,451 
Schedule of Other Assets
Other assets consist of the following (in thousands):
June 30, 2026December 31, 2025
Right-of-use assets$6,440 $7,223 
Property and equipment, net3,396 3,571 
Other2,005 1,788 
     Total other assets$11,841 $12,582 
Schedule of Accrued Liabilities
Accrued liabilities consist of the following (in thousands):
June 30, 2026December 31, 2025
Royalties owed to third parties$11,356 $16,202 
Professional fees8,239 1,997 
Compensation4,635 6,388 
Value-added tax1,824 1,753 
Subcontractor1,756 1,756 
Accrued interest863 1,307 
Customer deposit621 621 
Other2,573 1,429 
     Total accrued liabilities$31,867 $31,453 
Schedule of Other Long Term Liabilities
Other long-term liabilities consist of the following (in thousands):
June 30, 2026December 31, 2025
Unrecognized tax benefits$17,182 $16,588 
Other long-term liabilities34 41 
     Total other long-term liabilities$17,216 $16,629 
Schedule of Accounting for Share-Based Compensation The following table summarizes share-based compensation expense recorded as components of research and development expenses and general and administrative expenses for the periods indicated (in thousands):
Three months endedSix months ended
June 30,June 30,
2026202520262025
SBC - Research and development expenses$1,080 $955 $2,027 $1,859 
SBC - General and administrative expenses12,573 9,042 22,222 15,974 
     Total SBC expenses$13,653 $9,997 $24,249 $17,833 
Schedule of Fair-Value Options Awarded to Employees and Directors
The fair value for options that were awarded to employees and directors was estimated at the date of grant using the Black-Scholes option valuation model with the following weighted-average assumptions:
Three months endedSix months ended
June 30,June 30,
2026202520262025
Risk-free interest rate4.2%4.1%3.6%4.0%
Dividend yield————
Expected volatility42.7%43.1%42.3%45.6%
Expected term (years)4.84.74.24.2
Schedule of Computation of Basic and Diluted Earnings per Share
The following table presents the calculation of weighted average shares used to calculate basic and diluted earnings per share (in thousands):
Three months endedSix months ended
June 30,June 30,
2026202520262025
Weighted average shares outstanding:20,063 19,327 19,974 19,259 
Dilutive potential common shares:
     Restricted stock297 179 336 — 
     Stock options1,068 420 1,014 — 
     2030 Convertible Senior Notes409 — 224 — 
Shares used to compute diluted loss per share21,837 19,926 21,548 19,259 
Potentially dilutive shares excluded from calculation due to anti-dilutive effect:
Restricted stock— 133 28 87 
Stock options384 1,227 274 975 
2031 Convertible Senior Notes877 — 441 — 
Warrant related to the 2030 Notes
2,362 — 2,362 — 
Warrant related to the 2031 Notes
2,094 — 1,053 — 
Anti-dilutive shares5,717 1,360 4,158 1,062