On May 11, 2026, the Company entered into the Bora Agreement to sell certain assets and liabilities comprising its CDMO Operations, including the leased warehouse in Frederick, Maryland to Bora for cash consideration of $122.5 million, subject to certain closing cash, working capital and indebtedness adjustments. The disposal represents a strategic shift that has a major effect on the Company’s operations and financial results, reflecting the Company’s exit from its contract manufacturing line of business and its decision to focus its resources on its pre-clinical and clinical-stage research and development pipeline. Accordingly, the results of the CDMO Operations are reported as discontinued operations for all periods presented in the accompanying consolidated financial statements.

Effective as of June 30, 2026, the Company and Bora completed the sale under the Bora Agreement, and the Company received cash consideration of $119.6 million, subject to customary post-closing adjustments for net working capital and indebtedness, in July 2026. The Company is entitled to receive up to an additional $5.0 million of contingent consideration upon the achievement of specified manufacturing and process development milestones during 2027 and 2028. The Company assessed the likelihood of achieving these milestones as remote and, accordingly, assigned a de minimis value to the contingent consideration at closing. Any additional consideration will be recognized within discontinued operations in the period the related milestones are achieved. Subsequent changes in the estimated fair value of the contingent consideration, if any, will be recognized in earnings in the period of change.


	December 31, 2025
Assets
Current assets:
Accounts receivable	$	12,946
Inventory, net	7,910
Prepaid expenses and other current assets	1,521
Total current assets	22,377
Property, equipment and software, net	10,522
Operating lease right-of-use assets	1,115
Other non current assets	1,178
Total assets	$	35,192
Liabilities
Current liabilities:
Accounts payable	$	1,529
Accrued expenses and other current liabilities	169
Deferred revenue	9,645
Lease liabilities	272
Total current liabilities	11,615
Lease liabilities, net of current portion	984
Total liabilities	$	12,599

During the three and six months ended June 30, 2026, the Company recognized a pretax net gain on the sale of the CDMO Operations before and after transaction related costs of $94.8 million, and $86.1 million, respectively, which is included in net income from discontinued operations, net of tax in the consolidated statements of operations. The gain after transaction related costs on the sale of CDMO Operations (the net gain) reflects the deduction of incremental costs directly incurred in the sale of CDMO operations which amounted to $8.8 million. The net gain was computed as follows and remains subject to finalization of customary post-closing purchase price adjustments:


Cash consideration, net of estimated closing adjustments	$	119,572
Costs to sell	(8,765)
Carrying amount of assets sold:
Trade receivables	(11,778)
Prepaid expenses and other current assets	(3,350)
Inventory	(9,151)
Property and equipment, net	(9,075)
Operating lease right-of-use asset	(1,053)
Other assets	(1,179)
Total assets sold	(35,586)
Carrying amount of net liabilities assumed:
Operating lease liability	1,158
Accounts payable and other current liabilities	1,507
Deferred revenue	8,191
Total liabilities assumed	10,856
Total carrying amount of net assets sold	(24,730)
Net gain on sale of the CDMO Operations	$	86,077


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Contract manufacturing revenue	$	13,142	$	15,372	$	27,196	$	21,523
Cost of manufacturing services	(10,062)		(8,906)		(19,592)		(14,306)
Income from operations of the CDMO Operations	3,080		6,466		7,604		7,217
Net gain on sale of the CDMO Operations	86,077		—		86,077		—


Net income from discontinued operations, net of taxes	$	89,157	$	6,466	$	93,681	$	7,217

Cash flows attributable to the Company's discontinued operations are included in the Company's consolidated statements of cash flows. Significant non-cash activities attributable to discontinued operations consisted of the following (in thousands):


	Six Months Ended June 30,
	2026		2025
Depreciation and amortization	$	1,798	$	2,788
Non-cash lease expense	264		403
Gain on sale of CDMO operations before transaction costs	(94,842)		—

Bora will manufacture and supply specified products to the Company using reserved capacity at the Rockville facility. The Company accounts for this arrangement as a supply contract. The Company evaluated whether that contains a lease under ASC 842. The Company concluded that the agreement does not contain an embedded lease, because the reserved manufacturing capacity is not an identified asset that the Company controls and the counterparty retains substantive rights to substitute and reallocate that capacity, and accordingly no right-of-use asset or lease liability has been recognized The initial term is for three years from June 30, 2026. Amounts recognized under this agreement will commence after June 30, 2026.

The Company and Bora will provide each other with specified transitional support services on a cost-reimbursement basis with no markup, for a period expected to be less than one year. Amounts recognized under this agreement will commence after June 30, 2026.