Other operating (gains) expenses, net for the three and nine months ended September 30, 2026 and 2025 are summarized below (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Merger-related expenses	$	7,384	$	—	$	7,384	$	—
Divestiture-related expenses	705		—		6,636		—
Separation costs	611		—		611		—
Contingent consideration (gains) charges	(14,430)		625		(15,044)		(2,407)
Restructuring charges	—		3,728		—		3,728

Acquisition-related expenses	—		(280)		—		2,222
Legal settlement	—		—		—		7,000
Legal judgment	—		(23,148)		—		(23,148)
Impairment of acquired IPR&D	—		25,866		—		25,866


Total other operating (gains) expenses, net	$	(5,730)	$	6,791	$	(413)	$	13,261

The Company recorded costs associated with the proposed Merger of approximately $7.4 million for both of the three and nine months ended September 30, 2026, primarily for associated outside legal and external financial advisory fees. Additional Merger-related costs are expected to be incurred through the closing of the Merger. For more information on the proposed merger with Viatris, see Note 1, Description of Business.

The Company recognized Divestiture-related expenses of $0.7 million and $6.6 million during the three and nine months ended September 30, 2026, respectively, primarily related to third-party services and legal fees associated with the divestiture of iovera° to Zimmer. For more information, see Note 3, iovera° Divestiture.

The Company recognized separation costs of $0.6 million during both the three and nine months ended September 30, 2026, primarily related to redundant third-party services and certain assets that have no future economic benefit after the July 2026 iovera° Divestiture. For more information, see Note 3, iovera° Divestiture.

The Company recognized contingent consideration gains of $14.4 million and $15.0 million during the three and nine months ended September 30, 2026, respectively. The Company recognized contingent consideration charges of $0.6 million and gains of $2.4 million during the three and nine months ended September 30, 2025, respectively. See Note 11, Financial Instruments, for information regarding the method and key assumptions used in the fair value measurements of contingent consideration and more information regarding the changes in fair value.

In July 2025, the Company instituted a reduction in force at its Science Center Campus in San Diego, California. The reduction impacted 71 employees or approximately 8% of the Company’s then-total workforce. During both the three and nine months ended September 30, 2025, the Company recognized $3.7 million of employee termination benefit charges, under ASC 420—Liabilities for Exit or Restructuring Activities. These employee termination benefits consisted of garden leave under California employment law, severance, healthcare benefits, and, to a lesser extent, other one-time termination benefits.

The Company recognized acquisition-related credit of $0.3 million and costs of $2.2 million during the three and nine months ended September 30, 2025, respectively, primarily related to third-party services and legal fees associated with the GQ Bio Acquisition.

The Company recognized $7.0 million of costs during the nine months ended September 30, 2025 related to the patent infringement suits against the eVenus ANDA Filers (as defined below). For more information, see Note 17, Commitments and Contingencies.

The Company recognized other income of $23.1 million during both the three and nine months ended September 30, 2025 upon receipt of a cash payment associated with the U.S. District Court for the District of Nevada issuing a judgment declaring that the Research Development Foundation was required to repay the Company the royalties on EXPAREL sales that the Company previously paid under protest. For more information, see Note 17, Commitments and Contingencies.

The Company recognized an impairment of $25.9 million during the three and nine months ended September 30, 2025, for an acquired IPR&D intangible asset related to ZILRETTA for the treatment of OA pain of the shoulder based on the amount that its previous carrying value of $33.9 million exceeded its current fair value of $8.0 million. See Note 8, Goodwill and Intangible Assets, for more information.