| Schedule of Fair Value of Assets and Liabilities Measured on a Recurring Basis |
The following tables present the level in the fair value hierarchy at which the Company’s assets and liabilities are measured on a recurring basis (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total | | Fair Value Measurements Using Inputs Considered as: | | September 30, 2026 | | | Level 1 | | Level 2 | | Level 3 | | Assets: | | | | | | | | | | Derivative assets - freestanding instruments (FX) | | $ | 51 | | | $ | — | | | $ | 51 | | | $ | — | | Derivative assets - 2029 Capped Calls | | 52,593 | | | — | | | — | | | 52,593 | | Investment in convertible notes receivable | | 4,167 | | | — | | | — | | | 4,167 | | | | $ | 56,811 | | | $ | — | | | $ | 51 | | | $ | 56,760 | | | Liabilities: | | | | | | | | | | Derivative liabilities - freestanding instruments (FX) | | $ | 148 | | | $ | — | | | $ | 148 | | | $ | — | | Derivative liabilities - 2029 Embedded Derivative | | 124,752 | | | — | | | — | | | 124,752 | | ImThera contingent consideration arrangements | | 45,394 | | | — | | | — | | | 45,394 | | | | $ | 170,294 | | | $ | — | | | $ | 148 | | | $ | 170,146 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total | | Fair Value Measurements Using Inputs Considered as: | | December 31, 2025 | | | Level 1 | | Level 2 | | Level 3 | | Assets: | | | | | | | | | | Derivative assets - freestanding instruments (FX) | | $ | 165 | | | $ | — | | | $ | 165 | | | $ | — | | Derivative assets - 2029 Capped Calls | | 36,551 | | | — | | | — | | | 36,551 | | Investment in convertible notes receivable | | 3,000 | | | — | | | — | | | 3,000 | | | | $ | 39,716 | | | $ | — | | | $ | 165 | | | $ | 39,551 | | | Liabilities: | | | | | | | | | Derivative liabilities - freestanding instruments (FX) | | $ | 99 | | | $ | — | | | $ | 99 | | | $ | — | | Derivative liabilities - 2029 Embedded Derivative | | 83,904 | | | — | | | — | | | 83,904 | | ImThera contingent consideration arrangements | | 92,075 | | | — | | | — | | | 92,075 | | | | $ | 176,078 | | | $ | — | | | $ | 99 | | | $ | 175,979 | |
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| Schedule of Recurring Fair Value Measurements Using Significant Unobservable Inputs |
The tables below present reconciliations of recurring fair value measurements that use significant unobservable inputs (Level 3) (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Derivative Assets - 2029 Capped Calls (1) | | Investment in Convertible Notes Receivable | | Derivative Liabilities - 2029 Embedded Derivative (1) | | ImThera Contingent Consideration Arrangements Liability | | June 30, 2026 | | $ | 57,293 | | | $ | 3,000 | | | $ | 152,904 | | | $ | 42,121 | | | Additions | | — | | | 1,167 | | | — | | | — | | Changes in fair value (2) | | (4,700) | | | — | | | (28,152) | | | 3,273 | | | September 30, 2026 | | $ | 52,593 | | | $ | 4,167 | | | $ | 124,752 | | | $ | 45,394 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Derivative Assets - 2025 Capped Calls (1) | | Derivative Assets - 2029 Capped Calls (1) | | Derivative Liabilities - 2025 Embedded Derivative (1) | | Derivative Liabilities - 2029 Embedded Derivative (1) | | ImThera Contingent Consideration Arrangements Liability | | June 30, 2025 | | $ | 1,303 | | | $ | 21,658 | | | $ | 1,363 | | | $ | 48,093 | | | $ | 87,927 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Changes in fair value (2) | | 324 | | | 6,353 | | | 322 | | | 16,422 | | | 1,755 | | | September 30, 2025 | | $ | 1,627 | | | $ | 28,011 | | | $ | 1,685 | | | $ | 64,515 | | | $ | 89,682 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | Derivative Assets - 2029 Capped Calls (1) | | Investment in Convertible Notes Receivable | | Derivative Liabilities - 2029 Embedded Derivative (1) | | ImThera Contingent Consideration Arrangements Liability | | December 31, 2025 | | $ | 36,551 | | | $ | 3,000 | | | $ | 83,904 | | | $ | 92,075 | | | Additions | | — | | | 1,167 | | | — | | | — | | | Payments | | — | | | — | | | — | | | (60,458) | | Changes in fair value (2) | | 16,042 | | | — | | | 40,848 | | | 13,777 | | | September 30, 2026 | | $ | 52,593 | | | $ | 4,167 | | | $ | 124,752 | | | $ | 45,394 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Derivative Assets - 2025 Capped Calls (1) | | Derivative Assets - 2029 Capped Calls (1) | | Derivative Liabilities - 2025 Embedded Derivative (1) | | Derivative Liabilities - 2029 Embedded Derivative (1) | | ImThera Contingent Consideration Arrangements Liability | | December 31, 2024 | | $ | 2,624 | | | $ | 23,735 | | | $ | 2,915 | | | $ | 51,819 | | | $ | 84,218 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Changes in fair value (2) | | (997) | | | 4,276 | | | (1,230) | | | 12,696 | | | 5,464 | | | September 30, 2025 | | $ | 1,627 | | | $ | 28,011 | | | $ | 1,685 | | | $ | 64,515 | | | $ | 89,682 | |
(1)Gains and losses are recorded in foreign exchange and other income/(expense) in the condensed consolidated statements of income (loss). (2)For the three months ended September 30, 2026, the contingent consideration change in fair value was recorded to cost of sales. For the comparable 2025 period, the contingent consideration changes in fair value resulted in increases of $1.0 million and $0.8 million recorded to cost of sales and R&D, respectively. For the nine months ended September 30, 2026, the contingent consideration changes in fair value resulted in increases of $3.3 million and $10.4 million recorded to cost of sales and R&D, respectively. For the comparable 2025 period, the contingent consideration changes in fair value resulted in increases of $2.8 million and $2.7 million recorded to cost of sales and R&D, respectively.
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