Financial royalty assets consist of the following (in thousands):


	September 30, 2026						December 31, 2025
	Gross carrying value(1)		Allowance		Net carrying value (1)		Gross carrying value(1)		Allowance		Net carrying value(1)
Ojemda	$	240,804	$	(1,175)	$	239,629	$	—	$	—	$	—
Vabysmo	132,937		(630)		132,307		—		—		—
Qarziba	98,845		(445)		98,400		118,593		(498)		118,095
Agenus Bot/Bal	40,815		(408)		40,407		40,815		(408)		40,407
Miplyffa	40,164		(775)		39,389		—		—		—
Volixibat	38,400		(384)		38,016		—		—		—
Osavampator	30,800		(308)		30,492		—		—		—
REC-4881	30,700		(307)		30,393		—		—		—
Tolerance Therapeutics (Tzield®)	25,919		(101)		25,818		25,257		(98)		25,159
Ryjunea	22,990		(230)		22,760		—		—		—
Ohtuvayre inventors	21,160		(193)		20,967		16,921		(151)		16,770
Twist programs	20,500		(1,435)		19,065		—		—		—
Oak Hill programs	10,900		(545)		10,355		—		—		—
Primrose	6,900		(207)		6,693		3,281		(98)		3,183
Vidutolimod	6,300		(31)		6,269		—		—		—
D-Fi	6,000		(300)		5,700		—		—		—
Ixinity	5,629		(103)		5,526		—		—		—
AT220	3,990		(107)		3,883		5,132		(132)		5,000
Elutia (CorMatrix)	4,071		(496)		3,575		6,607		(1,107)		5,500
Others	21,416		(946)		20,470		5,769		(214)		5,555
Total financial royalty assets, net	$	809,240	$	(9,126)	$	800,114	$	222,375	$	(2,706)	$	219,669

Financial royalty assets represent future economic rights acquired by us in various transactions. Upon the early adoption of ASU 2025-07 on January 1, 2025, certain economic rights in partner programs that were previously accounted for as derivative assets (including the Agenus partner programs, Primrose mRNA, and Castle Creek Milestone) are now accounted for as financial royalty assets.

As part of the XOMA Acquisition, we acquired future milestone and royalty rights related to Ojemda (tovorafenib), which, had an acquisition-date fair value of $237.8 million. Because Ojemda is a commercial product for which future cash flows can be reliably estimated, we account for the financial royalty asset using the prospective effective interest method. From July 14, 2026 through September 30, 2026, we recognized $7.0 million of income from the Ojemda financial royalty asset.

As part of the XOMA Acquisition, we acquired future royalty rights related to Vabysmo (faricimab-svoa), which is marketed by Roche and had an acquisition-date fair value of $141.8 million. Because Vabysmo is a commercial product for which future cash flows can be reliably estimated, we account for the financial royalty asset using the prospective effective interest method. From July 14, 2026 through September 30, 2026, we recognized $3.6 million of income from the Vabysmo financial royalty asset.

In July 2024, we acquired certain financial royalty assets as part of the Apeiron Acquisition, including Qarziba and certain InvIOs programs, which were recorded at $104.9 million and $1.3 million, respectively, as of the acquisition date. As Qarziba is a commercial-stage program, we are able to reasonably estimate future cash flows and, accordingly, we recognized income from the Qarziba financial royalty assets starting from the Apeiron Acquisition effective date. We account for the InvIOs financial royalty asset using the non-accrual method until we are able to reliably estimate future cash flows.

In May 2024, we acquired a synthetic royalty on future global net sales of Agenus’ novel immuno-oncology botensilimab in combination with balstilimab (“Bot/Bal”), which is accounted for as a financial royalty asset. We apply the non-accrual method to the Bot/Bal financial royalty asset until such time as future cash flows can be reliably estimated.

In addition to Bot/Bal, we acquired economic rights in certain partner programs (including UGN-301 with Urogen). These economic rights were initially accounted for as derivative assets but were reclassified to financial royalty assets on January 1, 2025, upon adoption of ASU 2025-07. As of December 31, 2025, we recorded a full impairment of all Agenus partner programs, including UGN-301, which was returned to Agenus by Urogen in the fourth quarter of 2025.

As part of the XOMA Acquisition, we acquired future milestone and royalty rights related to Miplyffa (arimoclomol), which is marketed by Zevra Therapeutics and had an acquisition-date fair value of $39.7 million. Because Miplyffa is a commercial product for which future cash flows can be reliably estimated, we account for the financial royalty asset using the prospective effective interest method. From July 14, 2026 through September 30, 2026, we recognized $1.7 million of income from the Miplyffa financial royalty asset.

As part of the XOMA Acquisition, we acquired future milestone and royalty rights related to volixibat, which is being developed by Mirum Pharmaceuticals and had an acquisition-date fair value of $38.4 million. Because volixibat is in clinical development and future cash flows cannot be reliably estimated, we account for the financial royalty asset using the non-accrual method until we are able to reliably estimate future cash flows, at which time we will apply the prospective effective interest method. We have not recognized income from the volixibat financial royalty asset.

As part of the XOMA Acquisition, we acquired future milestone and royalty rights related to osavampator, which is being developed by Neurocrine Biosciences and had an acquisition-date fair value of $30.8 million. Because osavampator is in clinical development and future cash flows cannot be reliably estimated, we account for the financial royalty asset using the non-accrual method until we are able to reliably estimate future cash flows, at which time we will apply the prospective effective interest method. We have not recognized income from the osavampator financial royalty asset.

As part of the XOMA Acquisition, we acquired future milestone and royalty rights related to REC-4881, which is being developed by Recursion Pharmaceuticals and had an acquisition-date fair value of $30.7 million. Because REC-4881 is in clinical development and future cash flows cannot be reliably estimated, we account for the financial royalty asset using the non-accrual method until we are able to reliably estimate future cash flows, at which time we will apply the prospective effective interest method. We have not recognized income from the REC-4881 financial royalty asset.

In November 2023, we acquired Tolerance Therapeutics for $20.0 million in cash. Tolerance Therapeutics was a holding company, owned by the inventors of Tzield (teplizumab), and is owed a royalty of less than 1% on worldwide net sales of Tzield. Tzield is marketed by Sanofi, starting in 2023. For tax purposes, this transaction was treated as a stock acquisition; accordingly, no step-up in tax basis or other tax attributes was recorded. As a result, a deferred tax liability of $5.5 million was recognized in 2024 for the difference between the book and tax basis, with a corresponding increase to the carrying value of the Tolerance Therapeutics’ financial royalty asset. Given the early stages of Tzield’s commercialization, management has applied the non-accrual method to this financial royalty asset until such time as future cash flows can be reliably estimated.

In March 2024, August 2024 and January 2025, we acquired future milestone and royalty rights related to Ohtuvayre from certain Ohtuvayre inventors for a total of $3.8 million, $13.6 million and $1.8 million, respectively. On June 26, 2024, Verona Pharma plc received FDA approval for Ohtuvayre for the maintenance treatment of patients with chronic obstructive pulmonary disease (“COPD”). Verona initiated U.S. commercial sales of Ohtuvayre in the third quarter of 2024 and was subsequently acquired by Merck on October 7, 2025. We began recognizing income from the Ohtuvayre inventor-related financial royalty assets on October 1, 2025, as, at that point in the product’s commercialization, management determined that future cash flows could be reliably estimated.