| Schedule of Transition Period Comparative Financial Information |
The following table presents certain comparative financial information for the six months ended June 30, 2026 and 2025 (amounts in thousands, except share data):
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|
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|
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Six months ended
June 30, |
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Six months ended
June 30, |
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|
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2026 |
|
|
2025 |
|
|
|
|
|
|
(Unaudited) |
|
Collaboration revenue |
|
$ |
53,044 |
|
|
$ |
50,034 |
|
Operating expenses: |
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|
|
|
|
|
Research and development |
|
|
(2,668 |
) |
|
|
(1,733 |
) |
General and administrative |
|
|
23,390 |
|
|
|
8,298 |
|
Total operating expenses |
|
|
20,722 |
|
|
|
6,565 |
|
Income from operations |
|
|
32,322 |
|
|
|
43,469 |
|
Other (expense) income, net: |
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|
|
|
|
|
Interest income |
|
|
3,252 |
|
|
|
5,402 |
|
Sublease income |
|
|
526 |
|
|
|
— |
|
Non-cash interest expense for the sale of future royalties |
|
|
(41,192 |
) |
|
|
(37,667 |
) |
Other (expense) income, net |
|
|
(1 |
) |
|
|
5,453 |
|
Total other expense, net |
|
|
(37,415 |
) |
|
|
(26,812 |
) |
(Loss) income before income taxes |
|
|
(5,093 |
) |
|
|
16,657 |
|
Benefit (provision) for income taxes |
|
|
181,451 |
|
|
|
(83 |
) |
Income from continuing operations |
|
|
176,358 |
|
|
|
16,574 |
|
Loss from discontinued operations, net of tax |
|
|
(45,362 |
) |
|
|
(94,533 |
) |
Net income (loss) |
|
|
130,996 |
|
|
|
(77,959 |
) |
Other comprehensive loss: |
|
|
|
|
|
|
Unrealized loss on available for sale securities |
|
|
(127 |
) |
|
|
(311 |
) |
Comprehensive gain (loss) |
|
$ |
130,869 |
|
|
$ |
(78,270 |
) |
Net income (loss) per common share: |
|
|
|
|
|
|
Income from continuing operations - basic |
|
$ |
6.09 |
|
|
$ |
0.56 |
|
Loss from discontinued operations - basic |
|
|
(1.57 |
) |
|
|
(3.18 |
) |
Net income (loss) per common share - basic |
|
$ |
4.52 |
|
|
$ |
(2.62 |
) |
Income from continuing operations - diluted |
|
$ |
4.71 |
|
|
$ |
0.54 |
|
Loss from discontinued operations - diluted |
|
|
(1.21 |
) |
|
|
(3.08 |
) |
Net income (loss) per common share - diluted |
|
$ |
3.50 |
|
|
$ |
(2.54 |
) |
Weighted-average number of shares outstanding: |
|
|
|
|
|
|
Basic |
|
|
28,979 |
|
|
|
29,722 |
|
Diluted |
|
|
37,476 |
|
|
|
30,692 |
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|
|
|
|
|
|
|
|
|
|
Six months ended
June 30, |
|
|
Six months ended
June 30, |
|
|
|
2026 |
|
|
2025 |
|
|
|
|
|
|
(unaudited) |
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
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|
|
|
|
|
Net income (loss) |
|
$ |
130,996 |
|
|
$ |
(77,959 |
) |
Less: Loss from discontinued operations, net of tax |
|
|
45,362 |
|
|
|
94,533 |
|
Net income from continuing operations |
|
|
176,358 |
|
|
|
16,574 |
|
Adjustments to reconcile net income from continuing operations to net cash provided by (used in) operating activities: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
9 |
|
|
|
10 |
|
Stock-based compensation |
|
|
8,320 |
|
|
|
3,007 |
|
Accretion/amortization of investments, net |
|
|
30 |
|
|
|
(3,264 |
) |
Amortization of right-of-use assets – operating |
|
|
959 |
|
|
|
919 |
|
Non-cash interest expense for sale of future royalties |
|
|
41,192 |
|
|
|
37,667 |
|
Deferred tax benefit |
|
|
(183,699 |
) |
|
|
— |
|
Changes in operating assets and liabilities: |
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|
|
|
|
|
Receivables from collaborative partners |
|
|
8,216 |
|
|
|
(19,347 |
) |
Prepaid expenses and other assets |
|
|
(3,672 |
) |
|
|
289 |
|
Accounts payable and other liabilities |
|
|
(44,853 |
) |
|
|
(46,361 |
) |
Income tax receivable |
|
|
(3,245 |
) |
|
|
— |
|
Operating lease liabilities |
|
|
(1,017 |
) |
|
|
(941 |
) |
Net cash used in operating activities of continuing operations |
|
|
(1,402 |
) |
|
|
(11,447 |
) |
Net cash used in operating activities of discontinued operations |
|
|
(51,157 |
) |
|
|
(39,497 |
) |
Net cash used in operating activities |
|
|
(52,559 |
) |
|
|
(50,944 |
) |
CASH FLOWS FROM INVESTING ACTIVITIES: |
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|
|
|
|
|
Purchase of investments |
|
|
(4,955 |
) |
|
|
(176,755 |
) |
Sales and maturities of investments |
|
|
47,500 |
|
|
|
283,781 |
|
Net cash provided by investing activities of continuing operations |
|
|
42,545 |
|
|
|
107,026 |
|
Net cash used in investing activities of discontinued operations |
|
|
— |
|
|
|
(74 |
) |
Net cash provided by investing activities |
|
|
42,545 |
|
|
|
106,952 |
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
Proceeds from issuance of common stock |
|
|
25,371 |
|
|
|
1,713 |
|
Principal repayment of liability for sale of future royalties |
|
|
(19,727 |
) |
|
|
(23,828 |
) |
Payments for repurchase of common stock |
|
|
— |
|
|
|
(55,522 |
) |
Payment for net share settlement of equity awards |
|
|
— |
|
|
|
(1,451 |
) |
Net cash provided by (used in) financing activities of continuing operations |
|
|
5,644 |
|
|
|
(79,088 |
) |
'Net cash used in financing activities of discontinued operations |
|
|
(100,000 |
) |
|
|
— |
|
Net cash used in financing activities |
|
|
(94,356 |
) |
|
|
(79,088 |
) |
Net decrease in cash and cash equivalents |
|
|
(104,370 |
) |
|
|
(23,080 |
) |
Cash and cash equivalents in continued operations, beginning of period |
|
|
138,196 |
|
|
|
23,080 |
|
Cash and cash equivalents within discontinued operations, beginning of period |
|
|
100,000 |
|
|
|
100,000 |
|
Less: Cash and cash equivalents within discontinued operations, end of period |
|
|
— |
|
|
|
100,000 |
|
Cash and cash equivalents in continued operations, end of period |
|
$ |
133,826 |
|
|
$ |
— |
|
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION |
|
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|
|
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|
Interest portion of repayment for sale of future royalties |
|
$ |
41,500 |
|
|
$ |
35,904 |
|
Income taxes paid |
|
$ |
5,582 |
|
|
$ |
44 |
|
Non-cash investing and financing activities: |
|
|
|
|
|
|
Amounts accrued for repurchase of common stock |
|
$ |
— |
|
|
$ |
480 |
|
Receivable related to issuance of common stock, upon exercise of stock options |
|
$ |
1,310 |
|
|
$ |
— |
|
|