Fair Value of Financial Instruments (Tables)
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9 Months Ended |
Sep. 30, 2026 |
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| Fair Value Disclosures [Abstract] |
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| Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis |
The tables below present information about the Company’s assets and liabilities measured at fair value on a recurring basis:
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September 30, 2026 |
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Total Fair |
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(in thousands) |
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Value |
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Level 1 |
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Level 2 |
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Level 3 |
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Assets: |
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Money market funds |
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$ |
401,077 |
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$ |
401,077 |
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$ |
— |
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$ |
— |
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Investment securities |
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26,287 |
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26,287 |
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— |
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— |
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Total assets |
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$ |
427,364 |
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$ |
427,364 |
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$ |
— |
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$ |
— |
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Liabilities: |
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Deferred compensation plan liabilities |
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$ |
1,910 |
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$ |
1,910 |
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$ |
— |
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$ |
— |
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Contingent consideration liabilities |
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68,210 |
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— |
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— |
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68,210 |
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Total liabilities |
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$ |
70,120 |
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$ |
1,910 |
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$ |
— |
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$ |
68,210 |
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December 31, 2025 |
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Total Fair |
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(in thousands) |
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Value |
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Level 1 |
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Level 2 |
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Level 3 |
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Assets: |
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Money market funds |
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$ |
179,791 |
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$ |
179,791 |
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$ |
— |
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$ |
— |
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Investment securities |
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41,087 |
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41,087 |
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— |
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— |
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Total assets |
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$ |
220,878 |
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$ |
220,878 |
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$ |
— |
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$ |
— |
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Liabilities: |
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Deferred compensation plan liabilities |
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$ |
943 |
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$ |
943 |
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$ |
— |
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$ |
— |
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Contingent consideration liabilities |
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94,339 |
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— |
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— |
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94,339 |
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Total liabilities |
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$ |
95,282 |
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$ |
943 |
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$ |
— |
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$ |
94,339 |
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| Schedule of contingent consideration Liabilities measured at fair value |
The following table reflects the activity for the Company’s contingent consideration liabilities for these acquisitions, measured at fair value using Level 3 inputs for the nine months ended September 30, 2026:
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Level 3 |
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Accrued Contingent |
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(in thousands) |
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Consideration |
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Balance at January 1, 2026 |
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$ |
94,339 |
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Balance of short-term contingent consideration at January 1, 2026 |
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3,882 |
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Changes in fair value included in net income |
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(28,586 |
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Settlements |
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(1,425 |
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Balance at September 30, 2026 |
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$ |
68,210 |
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| Schedule of Company's Contingent Consideration Liabilities |
The recurring Level 3 fair value measurements of the Company's contingent consideration liabilities include the following significant unobservable inputs (in thousands, except percent data):
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Fair Value at |
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Contingent Consideration Liability |
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September 30,
2026 |
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December 31,
2025 |
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Valuation Technique |
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Unobservable Inputs |
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Range |
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Weighted Average |
Development and commercialization milestones |
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$ |
17,978 |
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$ |
42,378 |
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Discounted cash flow |
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Payment discount rate |
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8.5% - 10.5% |
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8.6% |
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Probability of payment |
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0.0% - 95.0% |
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89.6% |
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Range of expected payment dates |
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2027 - 2038 |
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N/A |
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Sales milestones |
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26,844 |
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30,877 |
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Scenario analysis |
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Revenue volatility |
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28.0% - 51.0% |
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46.5% |
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Revenue discount rate |
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8.9% - 18.9% |
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16.9% |
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Assumed contingent consideration from Piramal SPA |
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23,388 |
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21,084 |
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Scenario analysis |
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EBITDA volatility |
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60.0% |
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60.0% |
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EBITDA discount rate |
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21.3% - 21.3% |
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21.3% |
Total contingent consideration liabilities |
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$ |
68,210 |
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$ |
94,339 |
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| Schedule of Fair Value of Total Net Consideration Received Regarding Sale of Business |
The fair value of total net consideration received by the Company was approximately $131.2 million, including $32.1 million in cash, as well as other instruments as follows:
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(in thousands) |
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Cash consideration received(1) |
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$ |
32,141 |
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Installment Note |
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67,200 |
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Seller Note |
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14,500 |
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Deferred Cash Purchase Price |
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12,300 |
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Net contingent consideration receivable |
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5,081 |
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Total net consideration received |
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$ |
131,222 |
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(1)This amount includes a net working capital settlement of $0.7 million received on July 1, 2026.
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