Deferred royalty obligation and warrants (Tables)

6 Months Ended

Jun. 30, 2026

Other Liabilities Disclosure [Abstract]

The table below provides a rollforward of the Company’s debt obligation relating to the royalty purchase agreement.


(in thousands)
Balance as of December 31, 2024	$	326,659
Less: royalty payments	(6,214)
Plus: interest expense	35,346
Less: cumulative catch-up adjustment, Other, net	(22,212)
Balance as of December 31, 2025	333,579
Less: Fair value of HCR warrants at time of issuance	(20,753)
Less: royalty payments	(3,649)
Plus: interest expense	17,852
Less: cumulative catch-up adjustment, Other, net	(6,401)
Balance as of June 30, 2026	$	320,628

Schedule of Fair Value Measurement Inputs and Valuation Techniques

The Company determined the fair value of the warrants at issuance on February 18, 2026 by using the Black-Scholes model with the following key assumptions:


	As of
	February 18, 2026
Exercise price in $	3.81
Share price in $	4.13
Risk-free interest rate	3.7	%
Expected volatility	98.1	%
Expected term (years)	4.87
Dividend yield	—
Discount for lack of marketability	32.3	%
Black-Scholes value in $	2.11

The Company calculated the fair value of the HCR warrant obligation as of June 30, 2026, using the Black-Scholes model. Key inputs for the valuation of the warrant obligation were as follows:


	As of
	June 30, 2026
Exercise price in $	3.81
Share price in $	1.07
Risk-free interest rate	4.2	%
Expected volatility	104.8	%
Expected term (years)	4.5
Dividend yield	—
Discount for lack of marketability	31.0	%
Black-Scholes value in $	0.42