Income taxes |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income taxes | 12. Income taxes The following table summarizes the income tax (provision) benefit recorded (in thousands):
For the three and nine months ended September 30, 2026, the Company recorded an income tax provision of $0.7 million and $1.0 million, respectively, which were primarily related to interest income on marketable securities in Massachusetts and current federal and state taxes on U.S. taxable income generated from collaboration revenue. For the three months ended September 30, 2025, the income tax benefit was primarily related to the enactment of the "One Big Beautiful Bill Act," or OBBA. On July 4, 2025, H.R. 1, the OBBA, was signed into law. The modification to IRC Sec. 174 included in the OBBA allows the deduction of domestic based research and development expenses in the period in which they are incurred, which reduced the taxable income which was being generated from the $150 million upfront payment for the 2024 Novartis Agreement. In accordance with U.S. GAAP, the Company has accounted for the tax effects of changes in tax law in the period of enactment. As a result of these factors, in the third quarter of 2025, the Company reduced its provision for income taxes by $3.2 million. For the nine months ended September 30, 2025, the tax benefit of $1.2 million was primarily related to the requirement of carrying back the Research and Development credit generated in tax year 2025 to the tax liability of 2024. The Company continues to maintain a full valuation allowance against all of its deferred tax assets. The Company has evaluated the positive and negative evidence involving its ability to realize its deferred tax assets. The Company has considered its history of cumulative net losses incurred since inception and its lack of any commercial products. The Company has concluded that it is more likely than not that it will not realize the benefits of its deferred tax assets. The Company reevaluates the positive and negative evidence at each reporting period. |
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