| Schedule of Assets and Liabilities Measured at Fair Value |
The following table presents the hierarchy for our assets and liabilities measured at fair value (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2026 | | December 31, 2025 | | | Level 1 | | Level 2 | | Level 3 | | Total | | Level 1 | | Level 2 | | Level 3 | | Total | | Assets: | | | | | | | | | | | | | | | | | | Short-term investments | | $ | 148,901 | | | $ | 242,536 | | | $ | — | | | $ | 391,437 | | | $ | 183,982 | | | $ | 374,612 | | | $ | — | | | $ | 558,594 | | | Pelthos Series A Preferred Shares | | 72,018 | | | — | | | — | | | 72,018 | | | 106,262 | | | — | | | — | | | 106,262 | | | Pelthos Common Shares | | 31,515 | | | — | | | — | | | 31,515 | | | 46,500 | | | — | | | — | | | 46,500 | | | Equity-method investment in RemainCo | | — | | | — | | | 13,700 | | | 13,700 | | | | | | | | | | | Derivative assets | | — | | | 22,685 | | | 8,288 | | | 30,973 | | | — | | | 10,643 | | | 4,989 | | | 15,632 | | | Total assets | | $ | 252,434 | | | $ | 265,221 | | | $ | 21,988 | | | $ | 539,643 | | | $ | 336,744 | | | $ | 385,255 | | | $ | 4,989 | | | $ | 726,988 | | | Liabilities: | | | | | | | | | | | | | | | | | | Contingent liabilities: | | | | | | | | | | | | | | | | | | CyDex CVR | | $ | — | | | $ | — | | | $ | 422 | | | $ | 422 | | | $ | — | | | $ | — | | | $ | 395 | | | $ | 395 | | | Metabasis CVR | | — | | | 3,308 | | | — | | | 3,308 | | | — | | | 2,826 | | | — | | | 2,826 | | | HilleVax CVR | | — | | | — | | | 14,600 | | | 14,600 | | | — | | | — | | | — | | | — | | | LAVA CVR | | — | | | — | | | 6,738 | | | 6,738 | | | — | | | — | | | — | | | — | | | BioInvent | | — | | | — | | | 3,300 | | | 3,300 | | | — | | | — | | | — | | | — | | | Pulmokine | | — | | | — | | | 4,700 | | | 4,700 | | | — | | | — | | | — | | | — | | | Kinnate CVR - Kinnate programs | | — | | | — | | | 3,700 | | | 3,700 | | | — | | | — | | | — | | | — | | | Kinnate CVR - Exarafenib | | — | | | — | | | 2,000 | | | 2,000 | | | — | | | — | | | — | | | — | | | Other | | — | | | — | | | 99 | | | 99 | | | — | | | — | | | — | | | — | | | Total contingent liabilities | | — | | | 3,308 | | | 35,559 | | | 38,867 | | | — | | | 2,826 | | | 395 | | | 3,221 | | | Derivative liabilities | | — | | | 279 | | | — | | | 279 | | | — | | | — | | | — | | | — | | | Total liabilities | | $ | — | | | $ | 3,587 | | | $ | 35,559 | | | $ | 39,146 | | | $ | — | | | $ | 2,826 | | | $ | 395 | | | $ | 3,221 | |
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| Schedule of Reconciliation of Level 3 Financial Instruments |
| | | | | | | Assets | | Fair value of level 3 financial instruments as of December 31, 2025 | $ | 4,989 | | | Acquired equity method investment from XOMA Acquisition | 13,700 | | | Acquired derivative assets | 3,161 | | | Fair value adjustments to derivative assets | 138 | | Fair value of level 3 financial instruments as of September 30, 2026 | $ | 21,988 | | | | | Liabilities | | Fair value of level 3 financial instruments as of December 31, 2025 | $ | 395 | | | Acquired contingent liabilities from XOMA Acquisition | 30,009 | | | Payments to CVR holders and other contingent payments | (50) | | | Fair value adjustments to contingent liabilities | 5,205 | | Fair value of level 3 financial instruments as of September 30, 2026 | $ | 35,559 | |
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