EQUITY SECURITIES PORTFOLIO INVESTMENT |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| EQUITY SECURITIES PORTFOLIO INVESTMENT | EQUITY SECURITIES Equity securities for the periods presented were comprised of the following:
Equity Securities Portfolio Investment On April 3, 2020, the Company entered into an Option Agreement with LF Equity Income Fund, which included general terms through which the Company was provided the option to purchase a portfolio of investments in 18 public and private life sciences companies (the “Life Sciences Portfolio”) for an aggregate purchase price of £223.9 million, approximately $277.5 million at the exchange rate on April 3, 2020. The total fair value of the remaining Life Sciences Portfolio investment of $5.8 million, which primarily consists of private life sciences companies, was included in our consolidated balance sheets as of September 30, 2026 and December 31, 2025. Unrealized and realized gains or losses from our investment in the Life Sciences Portfolio are recorded in the change in fair value of equity securities and gain or loss on sale of equity securities, respectively, in the consolidated statements of operations and comprehensive income (loss). There are no unrealized and realized gains or losses from our investment in the Life Sciences Portfolio for the nine months ended September 30, 2026 and 2025. As part of the Company’s acquisition of equity securities in the Life Sciences Portfolio, the Company acquired a majority interest in the equity securities of MalinJ1 (63.9%), which were transferred to the Company on December 3, 2020. The acquisition of the MalinJ1 securities was accounted for as an asset acquisition as there was a change of control of MalinJ1 and substantially all of the fair value of the assets acquired was concentrated in a single identifiable asset, an investment in Viamet Pharmaceuticals Holdings, LLC (“Viamet”). As such, the cost basis of the MalinJ1 securities was allocated to the Viamet investment, the single identifiable asset, and no goodwill was recognized. The Company through its consolidation of MalinJ1 accounts for the Viamet investment under the equity method as MalinJ1 owns 41.0% of outstanding shares of Viamet. In June 2026, the Company determined that its investment in MalinJ1 no longer had value following the decision by the owner of Mycovia Pharmaceuticals, Inc. (“Mycovia”), the life sciences company with which Viamet had contractual arrangements that constituted Viamet’s primary asset, to no longer fund the business. Based on this decision, the Company concluded that the decline in the fair value of its investment in MalinJ1 below its carrying amount was other than temporary and the Company does not expect to realize any future economic benefit from the MalinJ1 investment. Accordingly, during the nine months ended September 30, 2026, the Company recognized an impairment charge of $30.9 million related to its investment in MalinJ1, which is presented as impairment of equity method investment in the consolidated statements of operations and comprehensive income (loss) and reduced the carrying amount of the investment to zero. The Company also recognized a $11.0 million net loss attributable to noncontrolling interests in subsidiaries for the minority interest’s share of the impairment. No distributions were received during the three and nine months ended September 30, 2026 and 2025.
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