NOTE 10 ASSET DISPOSITIONS

On May 31, 2026, the Company entered into the Sevasemten Purchase Agreement with Servier, to sell the assets and transfer the liabilities comprising its sevasemten program (the Disposal Group). The transaction was completed on July 10, 2026, and the Company received $1,396.1 million in upfront cash proceeds, with an additional $153.9 million deposited into escrow in accordance with the Sevasemten Purchase Agreement, for total expected initial proceeds of $1,550.0 million. The Company recognized $3.9 million of the escrowed amount as consideration at closing, which is included in Prepaid expenses and other assets as of September 30, 2026. The Company is also eligible to receive up to $1,100.0 million of additional contingent consideration payable upon the achievement of specified clinical, regulatory and commercial milestones for the sevasemten program.

Prior to closing, the assets and liabilities of the Disposal Group met the criteria for classification as held for sale under ASC 360-10-45-9 effective May 31, 2026. The Disposal Group was measured at the lower of its carrying amount or fair value less costs to sell. Because the estimated fair value less costs to sell of the Disposal Group exceeded its carrying amount, no impairment loss was recognized upon its classification as held for sale. Upon closing, the Company derecognized approximately $5.4 million of assets and $12.3 million of liabilities related to the Disposal Group. The Company concluded that substantially all of the fair value of the assets sold was concentrated in the Sevasemten intellectual property and that the Disposal Group did not constitute a business under ASC 805. Accordingly, the Company accounted for the transaction as the derecognition of nonfinancial assets under ASC 610-20. The Company did not present the Disposal Group as discontinued operations because the disposition did not represent a strategic shift that had or will have a major effect on the Company’s operations and financial results. The Disposal Group was included in the Company’s single operating and reportable segment, had not generated product revenue and did not represent a separate major line of business.

The Company recognized a gain on the Sevasemten Sale of approximately $1,348.1 million within Gain on the Sevasemten Sale for the three and nine months ended September 30, 2026. The gain reflects the consideration recognized at closing, including a receivable related to the indemnification arrangement, less the carrying amounts of assets transferred, transaction costs, and consideration allocated to transition services. In connection with the Sevasemten Sale, the Company incurred approximately $50.9 million of transaction related costs, which became fixed and determinable at closing and were recognized as a reduction of the gain on sale.

As of September 30, 2026, the Company concluded that no amount of the contingent milestone consideration met the threshold for inclusion in the gain on sale due to significant regulatory and commercial uncertainties that are outside of the Company’s control. Accordingly, the Company did not recognize a contingent consideration receivable related to the milestone payments. The Company reassesses this conclusion at each reporting date. Any contingent milestone consideration recognized in a subsequent period will be accounted for as an increase to the original gain on sale and presented within the same income statement caption as that gain. On November 3, 2026, Servier announced that the pivotal GRAND CANYON study of sevasemten in Becker muscular dystrophy did not meet its primary or secondary endpoints. Servier is conducting further analysis of the study results and relevant prior clinical data.

In connection with the Sevasemten Sale, the Company entered into a transition services agreement (TSA) with Servier. Income under the TSA comprises reimbursements for specified costs incurred in providing transition services and recognition of consideration allocated to those services at closing. The Company allocated $7.8 million of the closing consideration to its transition service obligations and deferred recognition of that amount until the related services are provided. Both cost reimbursements and amounts recognized from the deferred consideration are presented within Other income in the condensed statements of operations and comprehensive income (loss). Costs incurred in providing transition services are recorded within the applicable operating expense categories. As of September 30, 2026, $6.1 million remained deferred, of which $5.2 million and $0.9 million were included in Accrued other expenses and Other long term liabilities, respectively.