v3.26.3
Basis of Presentation and Summary of Significant Accounting Policies (Tables)
 9 Months Ended
Sep. 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 (in thousands):
Three months endedNine months ended
September 30,September 30,
2026202520262025
Total revenues and income$78,746 $115,461 $194,161 $208,421 
Share-based compensation(29,026)(14,746)(53,275)(32,579)
Other segment items:
Amortization of intangibles(10,205)(8,097)(26,399)(24,612)
Depreciation of property and equipment(118)(172)(355)(949)
Interest income5,492 3,874 19,445 7,266 
Interest expense(2,898)(910)(6,393)(2,930)
Other(70,476)21,863 (120,506)(74,948)
Net (loss) income$(28,485)$117,273 $6,678 $79,669 
Schedule of Revenue by Source
The following table represents disaggregation of royalties, Captisol, and contract revenue and income (in thousands):
Three months endedNine months ended
September 30,September 30,
2026202520262025
Royalties
Filspari$16,839 $9,078 $41,728 $20,957 
Kyprolis10,489 11,619 24,273 25,145 
Capvaxive3,801 3,206 8,086 6,341 
Ohtuvayre3,704 2,717 10,835 6,213 
Rylaze 3,534 3,557 9,956 9,540 
Teriparatide injection 1,325 2,632 4,116 6,121 
Vaxneuvance1,070 2,039 4,031 5,967 
Other6,665 5,313 14,695 11,548 
Revenue from intangible royalty assets47,427 40,161 117,720 91,832 
Ojemda7,002 — 7,002 — 
Qarziba5,952 5,976 18,401 17,303 
Vabysmo3,578 — 3,578 — 
Ohtuvayre inventors3,251 — 9,592 — 
Miplyffa1,675 — 1,675 — 
Other1,399 449 3,306 1,337 
Income from financial royalty assets22,857 6,425 43,554 18,640 
Total royalties70,284 46,586 161,274 110,472 
Captisol7,946 10,672 24,578 32,419 
Contract revenue and income
Income from Pelthos Transaction— 53,072 — 53,072 
Contract revenue
341 131 3,134 6,441 
Income175 5,000 5,175 6,017 
Total contract revenue and income516 58,203 8,309 65,530 
Total revenues and income$78,746 $115,461 $194,161 $208,421 
Schedule of Components Of Restricted Cash
There was no restricted cash as of December 31, 2025. Restricted cash as of September 30, 2026 consisted of the following (in thousands):
September 30, 2026
Current restricted cash held for Boston Lease payments$4,059
Current restricted cash held for Metabasis CVR payments53
     Total current restricted cash4,112
Noncurrent restricted cash held for Boston Lease payments34,950
Noncurrent restricted cash held for LAVA CVR payments6,738
Noncurrent restricted cash held for Boston Lease security deposit1,633
     Total noncurrent restricted cash43,321
Total restricted cash$47,433
Schedule of Short-Term Investments
The following table summarizes the various categories of our short-term investments at September 30, 2026 and December 31, 2025 (in thousands):
September 30, 2026
Amortized costGross unrealized gainsGross unrealized lossesEstimated fair value
     U.S. Government Agencies$109,368 $— $(696)$108,672 
     Corporate notes/bonds
101,483 — (514)100,969 
     U.S. Treasuries74,505 — (407)74,098 
     Commercial paper32,989 — (94)32,895 
     Corporate equity securities21,905 56,802 (3,904)74,803 
Total short-term investments$340,250 $56,802 $(5,615)$391,437 
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):
September 30, 2026
Amortized CostFair Value
Within one year$191,989 $191,377 
After one year through five years126,356 125,257 
Total$318,345 $316,634 
Schedule of Goodwill and Other Identifiable Intangible Assets
Goodwill and other identifiable intangible assets consist of the following (in thousands):
September 30, 2026December 31, 2025
Indefinite-lived intangible assets
     Goodwill$207,860 $101,541 
Definite-lived intangible assets
     Complete technology29,619 29,619 
          Less: accumulated amortization(22,239)(20,809)
     Trade name2,642 2,642 
          Less: accumulated amortization(2,076)(1,976)
     Customer relationships29,600 29,600 
          Less: accumulated amortization(23,262)(22,144)
    Contractual relationships463,000 360,000 
          Less: accumulated amortization(175,245)(151,494)
    Total definite lived intangible assets302,039 225,438 
Total goodwill and other identifiable intangible assets, net$509,899 $326,979 
Schedule of Derivative Assets Derivative assets consist of the following (in thousands):
September 30, 2026December 31, 2025
Agenus PIPE Series A Warrant$1,591 $— 
LeonaBio Warrants179 — 
     Total current derivative assets(1)
$1,770 $— 
Orchestra Warrant$10,323 $3,799 
Agenus Warrant(2)
6,087 1,322 
Castle Creek Warrants5,650 4,989 
AvenCell embedded derivative2,638 — 
Agenus PIPE Series B Warrant2,389 — 
Pelthos Conversion Option1,535 3,432 
Arecor Warrant581 629 
LeonaBio Warrants— 1,461 
     Total noncurrent derivative assets$29,203 $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 September 30, 2026 and December 31, 2025, respectively: expected term of 2.7 years and 3.4 years, volatility of 111% and 97%, risk-free rate of 4.9% and 3.6%, Agenus stock price of $9.93 and $3.14.
Schedule of Other Investment
Other investments consist of the following (in thousands):
September 30, 2026December 31, 2025
Pelthos Series A convertible preferred shares$72,018 $106,262 
Equity securities in Primrose Bio10,056 6,531 
InvIOs investment
4,500 4,500 
Pelthos loan receivable6,083 4,158 
Equity securities in Zerion1,253 — 
AvenCell Series C-2 Warrant569 — 
     Total other investments$94,479 $121,451 
Schedule of Other Assets
Other assets consist of the following (in thousands):
September 30, 2026December 31, 2025
Right-of-use assets$20,509 $7,223 
Property and equipment, net3,709 3,571 
Other2,927 1,788 
     Total other assets$27,145 $12,582 
Schedule of Accrued Liabilities
Accrued liabilities consist of the following (in thousands):
September 30, 2026December 31, 2025
Royalties owed to third parties$16,040 $16,202 
Compensation7,595 6,388 
Professional fees4,802 1,997 
Value-added tax2,411 1,753 
Subcontractor1,756 1,756 
Accrued interest1,725 1,307 
Customer deposit621 621 
Other715 1,429 
     Total accrued liabilities$35,665 $31,453 
Schedule of Other Long Term Liabilities
Other long-term liabilities consist of the following (in thousands):
September 30, 2026December 31, 2025
Unrecognized tax benefits$17,285 $16,588 
Other long-term liabilities32 41 
     Total other long-term liabilities$17,317 $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 endedNine months ended
September 30,September 30,
Equity settled awards:2026202520262025
    Research and development $1,286 $1,230 $3,313 $3,089 
    General and administrative 16,895 13,516 39,117 29,490 
Share-based compensation, Ligand18,181 14,746 42,430 32,579 
Settlement of XOMA employee RSUs(1)
10,845 — 10,845 — 
Total share-based compensation29,026 14,746 53,275 32,579 
(1) Included in general and administrative expenses in our condensed consolidated statements of operations. Represents the portion of the settlement attributable to the post-combination service period.
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 endedNine months ended
September 30,September 30,
2026202520262025
Risk-free interest rate4.4%3.7%3.7%4.0%
Dividend yield————
Expected volatility42.7%40.0%42.3%45.4%
Expected term (years)4.54.14.24.2
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 endedNine months ended
September 30,September 30,
2026202520262025
Weighted average shares outstanding:19,962 19,578 19,970 19,367 
Dilutive potential common shares:
     Restricted stock and performance stock awards— 337 354 260 
     Stock options— 714 1,074 543 
     2030 Convertible Senior Notes— — 420 — 
Warrant related to the 2030 Notes
— — 4 — 
Shares used to compute diluted (loss) income per share19,962 20,629 21,822 20,170 
Potentially dilutive shares excluded from calculation due to anti-dilutive effect:
Restricted stock and performance stock awards390 — 19 58 
Stock options1,229 447 195 797 
2030 Convertible Senior Notes805 733 — 247 
2031 Convertible Senior Notes274 — 384 — 
Warrant related to the 2030 Notes
2,349 2,361 2,357 796 
Warrant related to the 2031 Notes
2,094 — 1,404 — 
Anti-dilutive shares7,141 3,541 4,359 1,898