Fair Value Measurements (Tables)
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9 Months Ended |
Sep. 30, 2026 |
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| Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] |
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| Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis |
The following table presents information about the Company’s financial assets and liabilities measured at fair value on a recurring basis and indicate the level of the fair value hierarchy utilized to determine such fair values (in thousands):
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September 30, 2026 |
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Level 1 |
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Level 2 |
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Level 3 |
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Total |
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Current assets: |
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Cash and cash equivalents |
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$ |
193,297 |
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$ |
— |
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$ |
— |
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$ |
193,297 |
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U.S. Treasury |
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— |
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43,383 |
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— |
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43,383 |
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Total assets measured at fair value |
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$ |
193,297 |
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$ |
43,383 |
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$ |
— |
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$ |
236,680 |
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Liabilities: |
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Derivative liabilities – royalty agreement |
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$ |
— |
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$ |
— |
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$ |
3,919 |
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$ |
3,919 |
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Total liabilities measured at fair value |
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$ |
— |
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$ |
— |
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$ |
3,919 |
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$ |
3,919 |
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December 31, 2025 |
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Level 1 |
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Level 2 |
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Level 3 |
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Total |
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Current assets: |
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Cash and cash equivalents |
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$ |
57,982 |
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$ |
— |
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$ |
— |
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$ |
57,982 |
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Total assets measured at fair value |
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$ |
57,982 |
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$ |
— |
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$ |
— |
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$ |
57,982 |
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Liabilities: |
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Derivative liabilities – royalty agreement |
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$ |
— |
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$ |
— |
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$ |
2,041 |
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$ |
2,041 |
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Derivative liabilities – contingent value right liability |
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— |
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— |
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2,196 |
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2,196 |
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Total liabilities measured at fair value |
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$ |
— |
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$ |
— |
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$ |
4,237 |
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$ |
4,237 |
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| Schedule of Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value of Investments in Fixed Maturity Securities |
The amortized cost, gross unrealized gains and losses, and fair value of investments in fixed maturity securities as of September 30, 2026 are as follows:
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September 30, 2026 |
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Amortized Cost |
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Gross Unrealized Gains |
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Gross Unrealized Losses |
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Fair Value |
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U.S. Treasury |
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$ |
43,423 |
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$ |
367 |
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$ |
(407 |
) |
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$ |
43,383 |
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Total assets measured at fair value |
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$ |
43,423 |
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$ |
367 |
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$ |
(407 |
) |
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$ |
43,383 |
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| Schedule of Fair Value Measurement Key Assumptions |
The key assumptions used to determine the fair value of the derivative liabilities – royalty agreement at September 30, 2026 and December 31, 2025 are as follows:
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September 30,
2026 |
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December 31,
2025 |
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Discount rate |
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15.5 |
% |
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18.0 |
% |
Probability rate of achieving FDA approval of a product (1) |
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93.6 |
% |
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56.6 |
% |
Expected term to FDA regulatory approval of a product |
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0.75 years |
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1.5 years |
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(1) Source: Clinical Development Success Rates and Contributing Factors 2011-2020 study of drug approval success from February 2021. The probability assumption used reflects the study’s estimate of the likelihood of approval of a Phase 3 drug that has submitted its NDA to the FDA.
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| Royalty Agreement [Member] |
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| Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] |
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| Fair Value Measurement Derivative Liabilities |
The following table provides a reconciliation of the liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (in thousands): Derivative Liabilities – Royalty Agreement
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2026 |
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Derivative liabilities - royalty agreement |
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Balance at January 1 |
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$ |
2,041 |
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Fair value adjustments on derivative liabilities |
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1,878 |
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Balance at September 30 |
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$ |
3,919 |
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2025 |
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Derivative liabilities - royalty agreement |
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Balance at January 1 |
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$ |
1,647 |
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Fair value adjustments on derivative liabilities |
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394 |
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Balance at December 31 |
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$ |
2,041 |
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As of September 30, 2026, $2.6 million of the derivative liabilities – royalty agreement is classified as current and $1.4 million is classified as long-term on
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| Contingent Value Right Liability [Member] |
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| Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] |
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| Fair Value Measurement Derivative Liabilities |
Derivative Liabilities – Contingent Value Right Liability
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2026 |
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Derivative liabilities - contingent value right liability |
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Balance at January 1 |
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$ |
2,196 |
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Settlement of contingent value right |
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(1,994 |
) |
Fair value adjustments on derivative liabilities |
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(202 |
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Balance at September 30 |
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$ |
— |
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2025 |
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Derivative liabilities - contingent value right liability |
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Balance at January 1 |
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$ |
1,978 |
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Fair value adjustments on derivative liabilities |
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218 |
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Balance at December 31 |
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$ |
2,196 |
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