LIGAND PHARMACEUTICALS INC, 10-K filed on 2/28/2025
Annual Report
v3.25.0.1
Cover - USD ($)
$ in Billions
 12 Months Ended
Dec. 31, 2024
Feb. 25, 2025
Jun. 28, 2024
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2024    
Current Fiscal Year End Date --12-31    
Document Transition Report false    
Entity File Number 001-33093    
Entity Registrant Name LIGAND PHARMACEUTICALS INC    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 77-0160744    
Entity Address, Address Line One 555 Heritage Drive, Suite 200    
Entity Address, City or Town Jupiter    
Entity Address, State or Province FL    
Entity Address, Postal Zip Code 33458    
City Area Code 858    
Local Phone Number 550-7500    
Title of 12(b) Security Common Stock, par value $.001 per share    
Trading Symbol LGND    
Security Exchange Name NASDAQ    
Entity Well-Known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction [Flag] false    
Entity Shell Company false    
Entity Public Float     $ 1.1
Entity Common Stock, Shares Outstanding   19,255,353  
Documents Incorporated by Reference
Portions of the Proxy Statement for the Registrant’s 2025 Annual Meeting of Stockholders to be filed with the Commission within 120 days of December 31, 2024 are incorporated by reference in Part III of this Annual Report on Form 10-K. With the exception of those portions that are specifically incorporated by reference in this Annual Report on Form 10-K, such Proxy Statement shall not be deemed filed as part of this Report or incorporated by reference herein.
    
Amendment Flag false    
Document Fiscal Year Focus 2024    
Document Fiscal Period Focus FY    
Entity Central Index Key 0000886163    
v3.25.0.1
Audit Information
 12 Months Ended
Dec. 31, 2024
Audit Information [Abstract]  
Auditor Name Ernst & Young LLP
Auditor Location San Diego, California
Auditor Firm ID 42
v3.25.0.1
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Current assets:    
Cash and cash equivalents $ 72,307 $ 22,954
Short-term investments 183,858 147,355
Accounts receivable, net 38,376 32,917
Inventory 14,114 23,969
Income taxes receivable 4,073 6,395
Prepaid expenses 1,934 1,182
Other current assets 16,897 2,657
Total current assets 331,559 237,429
Intangible assets, net 266,648 299,606
Goodwill 105,250 103,370
Long-term portion of financial royalty assets, net 185,024 62,291
Noncurrent derivative assets 10,583 3,531
Property and equipment, net 15,133 15,607
Operating lease right-of-use assets 6,907 6,062
Finance lease right-of-use assets 2,766 3,393
Equity method investment in Primrose Bio 0 12,595
Other investments 10,908 36,726
Deferred income taxes, net 72 214
Other assets 6,924 6,392
Total assets 941,774 787,216
Current liabilities:    
Accounts payable 5,233 2,427
Accrued liabilities 27,906 12,467
Income tax payable 1,199  
Deferred revenue 1,278 1,222
Current contingent liabilities 206 256
Current operating lease liabilities 1,266 403
Current finance lease liabilities 24 7
Total current liabilities 37,112 16,782
Long-term deferred revenue 2,246 1,444
Long-term contingent liabilities 3,475 2,942
Long-term operating lease liabilities 5,815 5,755
Deferred income taxes, net 32,524 31,622
Other long-term liabilities 30,163 27,758
Total liabilities 111,335 86,303
Commitments and contingencies
Stockholders’ equity:    
Preferred stock, $0.001 par value; 5,000 shares authorized; zero issued and outstanding at December 31, 2024 and 2023 0 0
Common stock, $0.001 par value; 60,000 shares authorized; 19,106 and 17,556 shares issued and outstanding at December 31, 2024 and 2023, respectively 20 18
Additional paid-in capital 337,377 198,696
Accumulated other comprehensive loss (5,942) (817)
Retained earnings 498,984 503,016
Total stockholders’ equity 830,439 700,913
Total liabilities and stockholders’ equity $ 941,774 $ 787,216
v3.25.0.1
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares
shares in Thousands
Dec. 31, 2024
Dec. 31, 2023
Statement of Financial Position [Abstract]    
Preferred stock, par value (in USD per share) $ 0.001 $ 0.001
Preferred stock authorized (in shares) 5,000 5,000
Preferred stock issued (in shares) 0 0
Preferred stock outstanding (in shares) 0 0
Common stock, par value (in USD per share) $ 0.001 $ 0.001
Common stock authorized (in shares) 60,000 60,000
Common stock issued (in shares) 19,106 17,556
Common stock outstanding (in shares) 19,106 17,556
v3.25.0.1
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Revenues and other income:      
Total revenues and other income $ 167,133 $ 131,314 $ 196,245
Operating costs and expenses:      
Cost of Captisol 11,074 10,512 52,827
Amortization of intangibles 32,959 33,654 34,237
Research and development 21,425 24,537 36,082
General and administrative 78,654 52,790 70,062
Financial royalty assets impairment 30,572 0 0
Fair value adjustments to partner program derivatives 15,055 0 0
Total operating costs and expenses 189,739 121,493 193,208
Gain on sale of Pelican 0 (2,121) 0
Operating income (loss) from continuing operations (22,606) 11,942 3,037
Non-operating income and expenses:      
Gain from short-term investments 75,024 46,365 28,540
Interest income 8,055 7,711 2,046
Interest expense (3,037) (656) (1,799)
Other non-operating (expense) income, net (54,918) (1,702) 4,187
Total non-operating income, net 25,124 51,718 32,974
Income before income tax from continuing operations 2,518 63,660 36,011
Income tax expense (6,550) (9,841) (41,230)
Net income (loss) from continuing operations (4,032) 53,819 (5,219)
Net loss from discontinued operations   (1,665) (28,142)
Net income (loss): $ (4,032) $ 52,154 $ (33,361)
Basic net income (loss) from continuing operations (in USD per share) $ (0.22) $ 3.11 $ (0.31)
Basic net loss from discontinued operations (in USD per share) 0 (0.10) (1.67)
Basic net income (loss) per share (in USD per share) $ (0.22) $ 3.02 $ (1.98)
Shares used in basic per share calculation (in shares) 18,290 17,298 16,868
Diluted net income (loss) from continuing operations (in USD per share) $ (0.22) $ 3.03 $ (0.31)
Diluted net loss from discontinued operations (in USD per share) 0 (0.09) (1.67)
Diluted net income (loss) per share (in USD per share) $ (0.22) $ 2.94 $ (1.98)
Shares used in diluted per share calculation (in shares) 18,290 17,757 16,868
Royalties      
Revenues and other income:      
Total revenues and other income $ 108,773 $ 84,959 $ 72,912
Revenue from intangible royalty assets      
Revenues and other income:      
Total revenues and other income 95,329 83,910 72,527
Income from financial royalty assets      
Revenues and other income:      
Total revenues and other income 13,444 1,049 385
Captisol      
Revenues and other income:      
Total revenues and other income 30,883 28,372 104,495
Contract revenue and other income      
Revenues and other income:      
Total revenues and other income $ 27,477 $ 17,983 $ 18,838
v3.25.0.1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Statement of Comprehensive Income [Abstract]      
Net income (loss) $ (4,032) $ 52,154 $ (33,361)
Unrealized net gain (loss) on available-for-sale securities, net of tax 45 167 (67)
Foreign currency translation adjustment, net of tax (5,170) 0 0
Comprehensive income (loss) $ (9,157) $ 52,321 $ (33,428)
v3.25.0.1
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($)
shares in Thousands, $ in Thousands
Total
Cumulative Effect, Period of Adoption, Adjustment
Common Stock
Additional paid-in capital
Additional paid-in capital
Cumulative Effect, Period of Adoption, Adjustment
Accumulated other comprehensive income (loss)
Retain earnings
Retain earnings
Cumulative Effect, Period of Adoption, Adjustment
Balance at beginning of period (in shares) at Dec. 31, 2021     16,767          
Balance at beginning of period at Dec. 31, 2021 $ 821,159 $ (15,997) $ 17 $ 372,969 $ (51,130) $ (917) $ 449,090 $ 35,133
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Issuance of common stock under employee stock compensation plans, net (in shares)     184          
Issuance of common stock under employee stock compensation plans, net of shares withheld for payroll taxes (5,004)     (5,004)        
Share-based compensation 60,285     60,285        
Unrealized net gain (loss) on available-for-sale securities, net of tax (67)         (67)    
Foreign currency translation adjustment, net of tax 0              
Bond hedge transaction 202     202        
OmniAb Distribution (229,732)     (229,732)        
Net income (loss) (33,361)           (33,361)  
Balance at end of period at Dec. 31, 2022 597,485   $ 17 147,590   (984) 450,862  
Balance at end of period (in shares) at Dec. 31, 2022     16,951          
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Issuance of common stock under employee stock compensation plans, net (in shares)     605          
Issuance of common stock under employee stock compensation plans, net of shares withheld for payroll taxes 17,902   $ 1 17,901        
Share-based compensation 25,743     25,743        
Unrealized net gain (loss) on available-for-sale securities, net of tax 167         167    
Foreign currency translation adjustment, net of tax 0              
Final OmniAb Distribution 1,665     1,665        
Final tax impact of OmniAb Distribution 5,797     5,797        
Net income (loss) 52,154              
Balance at end of period at Dec. 31, 2023 $ 700,913   $ 18 198,696   (817) 503,016  
Balance at end of period (in shares) at Dec. 31, 2023 17,556   17,556          
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Issuance of common stock under employee stock compensation plans, net (in shares)     1,190          
Issuance of common stock under employee stock compensation plans, net of shares withheld for payroll taxes $ 60,454   $ 2 60,452        
Issuance of common stock, net of commissions and fees (in shares)     360          
Issuance of common stock, net of commissions and fees 37,140     37,140        
Share-based compensation 41,089     41,089        
Unrealized net gain (loss) on available-for-sale securities, net of tax 45         45    
Foreign currency translation adjustment, net of tax (5,170)         (5,170)    
Net income (loss) (4,032)           (4,032)  
Balance at end of period at Dec. 31, 2024 $ 830,439   $ 20 $ 337,377   $ (5,942) $ 498,984  
Balance at end of period (in shares) at Dec. 31, 2024 19,106   19,106          
v3.25.0.1
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Parenthetical)
 12 Months Ended
Dec. 31, 2021
Statement of Stockholders' Equity [Abstract]  
Accounting Standards Update [Extensible List] Accounting Standards Update 2020-06 [Member]
v3.25.0.1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Cash flows from operating activities:      
Net income (loss) $ (4,032) $ 52,154 $ (33,361)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:      
Gain on sale of Pelican 0 (2,121) 0
Change in estimated fair value of contingent liabilities 683 (265) (748)
Depreciation of fixed assets and amortization of intangible assets 35,239 36,521 51,534
Gain from short-term investments (67,901) (46,365) (28,540)
Amortization/accretion of premium (discount) on investments, net (1,331) (1,318) 16
Amortization of debt discount and issuance fees 486 240 734
Loss (gain) on derivative instruments 20,010 (250) 0
Gain on debt extinguishment 0 0 (4,192)
Non-cash income from financial royalty assets (5,467) (878) (164)
CECL adjustment to financial royalty assets (4,315) 3,595 0
Impairment loss of financial royalty assets 30,572 924 0
Lease amortization expense 2,126 1,735 5,521
Share-based compensation 41,089 25,743 60,285
Losses from equity method investment in Primrose Bio 12,821 1,829 0
Fair value adjustment to Primrose Bio securities investments 25,788 0 0
Deferred income taxes, net (15,800) 11,696 20,723
Other 7,723 739 365
Changes in operating assets and liabilities, net of acquisitions and dispositions:      
Accounts receivable, net (6,459) (2,601) 55,319
Inventory 9,619 (10,870) 12,058
Other economic rights 0 (5,000) 0
Accounts payable and accrued liabilities 13,903 (4,704) (3,340)
Income taxes receivable and payable 2,310 (1,781) 1,579
Deferred revenue (1,308) 419 (6,281)
Other assets and liabilities 1,291 (9,865) 6,342
Net cash provided by operating activities 97,047 49,577 137,850
Cash flows from investing activities:      
Acquisition of financial royalty assets (17,819) (50,328) 0
Proceeds from financial royalty assets 7,429 418 92
Purchases of property and equipment (1,821) (3,521) (17,923)
Purchases of short-term investments (226,384) (126,764) (51,226)
Proceeds from sale of short-term investments 229,367 148,765 209,561
Proceeds from maturity of short-term investments 33,131 45,402 24,830
Cash paid for Palvella notes receivable (2,500) 0 0
Cash paid for Novan acquisition, net of restricted cash received 0 (10,405) 0
Cash paid for the Agenus transaction (75,000) 0 0
Cash paid for Apeiron acquisition, net of cash received (91,996) 0 0
Cash paid for InvIOs investment (4,196) 0 0
Net proceeds from Viking Share Collar and Viking Share Put 7,123 0 0
Other 0 0 (960)
Net cash used in (provided by) investing activities (143,664) (11,682) 163,624
Cash flows from financing activities:      
Proceeds from common stock issuance, net of commissions and fees 37,140 0 0
Net cash transferred to OmniAb at OmniAb Separation 0 0 (1,840)
Repayment at maturity/repurchase of 2023 Notes 0 (76,854) (260,949)
Payments under finance lease obligations (25) (45) (54)
Cash paid for transaction costs related to OmniAb Transactions 0 0 (6,800)
Cash paid for debt issuance costs (426) (949) 0
Proceeds from bond hedge settlement 0 0 202
Net proceeds from stock option exercises and ESPP 65,588 22,448 3,232
Taxes paid related to net share settlement of equity awards (5,136) (4,547) (8,236)
Payments to CVR Holders 0 0 (1,545)
Net cash provided by (used) in financing activities 97,141 (59,947) (275,990)
Effect of exchange rate changes on cash and cash equivalents (1,171) 0 0
Net increase (decrease) in cash and cash equivalents 49,353 (22,052) 25,484
Cash and cash equivalents at beginning of year 22,954 45,006 19,522
Cash and cash equivalents at end of year 72,307 22,954 45,006
Supplemental disclosure of cash flow information      
Interest paid 263 288 1,428
Taxes paid 19,206 8,770 11,642
Acquisitions:      
Fair value of tangible assets acquired, net of cash and restricted cash received     0
Goodwill 105,250 103,370 0
Intangible assets     0
Financial royalty assets     0
Liabilities assumed     0
Net cash paid for acquisitions 0 10,405 0
Supplemental schedule of non-cash investing and financing activities:      
Accrued Primrose transaction costs 0 998 0
Addition of right-of-use assets and lease liabilities 1,769 0 0
Accrued royalty from financial royalty assets 0 52 0
Accrued purchases of financial royalty assets 0 347 0
Accrued debt issuance costs 42 41 0
Accrued fixed asset purchases 71 0 2,333
Unrealized gain (loss) on available-for-sale investments, net of tax 45 167 (67)
APEIRON      
Cash flows from investing activities:      
Cash paid for Novan acquisition, net of restricted cash received (91,996)    
Acquisitions:      
Fair value of tangible assets acquired, net of cash and restricted cash received 8,965    
Goodwill 0    
Intangible assets 0    
Financial royalty assets 106,156    
Liabilities assumed (23,125)    
Net cash paid for acquisitions 91,996    
Novan, Inc.      
Cash flows from investing activities:      
Cash paid for Novan acquisition, net of restricted cash received   (10,405)  
Acquisitions:      
Fair value of tangible assets acquired, net of cash and restricted cash received   17,887  
Goodwill   3,709  
Intangible assets   10,700  
Financial royalty assets   0  
Liabilities assumed   (21,891)  
Net cash paid for acquisitions   10,405  
Nucorion      
Cash flows from investing activities:      
Cash paid for equity method investment 0 0 (750)
Primrose Bio      
Cash flows from investing activities:      
Cash paid for equity method investment $ (998) $ (15,249) $ 0
v3.25.0.1
Basis of Presentation and Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation and Summary of Significant Accounting Policies
Business
We are a biopharmaceutical company enabling scientific advancement through supporting the clinical development of high-value medicines. We do this by providing financing, licensing our technologies or both.
Basis of Presentation and Principles of Consolidation
Our consolidated financial statements have been prepared in accordance with U.S. GAAP and include the accounts of our parent company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.
Segment Information
The Company has one operating and one reportable segment: development and licensing of biopharmaceutical assets. The Company's Chief Operating Decision Maker (“CODM”) is Todd Davis, our Chief Executive Officer. The CODM uses net income (loss) from continuing operations as a single segment profit or loss measure to evaluate our single segment performance, and in deciding whether to reinvest into the existing assets, or to new potential opportunities. Our CODM relies on internal management reporting processes that provide information on segment operating income (loss) for making financial decisions and allocating resources. CODM does not evaluate, manage or measure performance of segments using asset information.
The information on significant segment expenses that are regularly provided to the CODM, and other segment items included within the reported segment profit or loss measure, is presented in a table below:
Year ended December 31,
202420232022
Total revenues and other income$167,133 $131,314 $196,245 
Share-based compensation(41,089)(25,743)(60,285)
Other segment items:
Amortization of intangibles(32,959)(33,654)(34,237)
Depreciation of property and equipment(2,300)(2,905)(3,841)
Interest income8,055 7,711 2,046 
Interest expense(3,037)(656)(1,799)
Other *(99,835)(22,248)(103,348)
Net income (loss) from continuing operations$(4,032)$53,819 $(5,219)
* Other items for the years ended December 31, 2024, 2023, and 2022, include the amount of other general, administrative, research and development expenses of $56.7 million, $48.7 million, and $42.0 million (net of share-based compensation and depreciation expenses), respectively, and additional income and expense items that are presented in consolidated statements of operations such as financial royalty assets impairment, Fair value adjustments to partner program derivatives, cost of Captisol and other non-operating income and expenses.
Reclassification
Certain reclassifications have been made to the previously issued audited consolidated financial statements to conform with the current period presentation. Specifically, within the consolidated balance sheet as of December 31, 2023, our commercial license and other economic rights line has been reclassified to long-term portion of financial royalty assets, net, and to other assets, and a portion of other investments has been reclassified from other assets. Moreover, noncurrent derivative assets as of December 31, 2023, have been reclassified from other assets.
In addition, within the consolidated statements of operations for the years ended December 31, 2023 and 2022, royalties have been reclassified to revenue from intangible royalty assets, and a portion of the contract revenue has been reclassified to income from financial royalty assets.
Discontinued operations
The Company determined that the spin-off of the OmniAb Business in November 2022 in connection with the OmniAb Transactions met the criteria for classification as a discontinued operation in accordance with ASC Subtopic 205-20, Discontinued Operations (“ASC 205-20”). For additional information, see “Note (5), Spin-off of OmniAb”. All disclosures have been adjusted to reflect continuing operations.
Use of Estimates
The preparation of the consolidated financial statements in conformity with U.S. GAAP requires the use of estimates and assumptions that affect the amounts reported in the consolidated financial statements and the accompanying notes. Actual results may differ from those estimates.
Acquisitions
We first determine whether a set of assets acquired constitute a business and should be accounted for as a business combination. If the assets acquired are not a business, we account for the transaction as an asset acquisition. Business combinations are accounted for by using the acquisition method of accounting which requires us to use significant estimates and assumptions, especially with respect to intangible assets. We record the excess consideration over the aggregate fair value of tangible and intangible assets, net of liabilities assumed, as goodwill.
Under the acquisition method of accounting, we recognize separately from goodwill the identifiable assets acquired, the liabilities assumed, including contingent consideration and all contractual contingencies, generally at the acquisition date fair value. Contingent purchase consideration to be settled in cash are remeasured to estimated fair value at each reporting period with the change in fair value recorded in statement of operations. Costs that we incur to complete the business combination such as investment banking, legal and other professional fees are not considered part of consideration and we charge them to general and administrative expense as they incurred.
Should the initial accounting for a business combination be incomplete by the end of a reporting period that falls within the measurement period, we report provisional amounts in our financial statements. During the measurement period, we adjust the provisional amounts recognized at the acquisition date to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date and we record those adjustments to our financial statements in the period of change, if any.
Under the acquisition method of accounting for business combinations, if we identify changes to acquired deferred tax asset valuation allowances or liabilities related to uncertain tax positions during the measurement period and they relate to new information obtained about facts and circumstances that existed as of the acquisition date, those changes are considered a measurement period adjustment and we record the offset to goodwill. We record all other changes to deferred tax asset valuation allowances and liabilities related to uncertain tax positions in current period income tax expense.
Concentrations of Business Risk
Financial instruments that potentially subject us to significant concentrations of credit risk consist primarily of cash equivalents and investments. We invest excess cash principally in United States government debt securities, investment grade corporate debt securities, mutual funds and certificates of deposit. We maintain some cash and cash equivalents balances with financial institutions that are in excess of the Federal Deposit Insurance Corporation insurance limits. We have established guidelines relative to diversification and maturities that maintain safety and liquidity. These guidelines are periodically reviewed and modified to take advantage of trends in yields and interest rates.
Revenue and other income from significant partners, which is defined as 10% or more of our total revenue, was as follows:
Year ended December 31,
202420232022
Partner A23%33%45%
Partner B12%20%16%
Partner C
<10%
10%
<10%
We are exposed to credit risk through our counterparties, including risks associated with royalty assets, receivables, and financial instruments such as derivatives and available-for-sale debt securities. Most of our royalty assets and receivables come from contractual agreements that generate royalties based on sales of pharmaceutical products across the United States, Europe, and other regions. This risk is primarily mitigated by the broad range of marketers responsible for paying royalties and the geographic diversity of product sales. Our royalty portfolio includes products marketed by leading biopharmaceutical
companies such as Amgen, Merck, Jazz, Recordati, and Sanofi. As of December 31, 2024, Recordati was the largest individual marketer and payor of our financial royalty assets, representing 54% of the financial royalty asset balance.
We actively monitor the financial performance and creditworthiness of counterparties to our royalty agreements, derivative financial instruments, and available-for-sale debt securities to assess and respond to changes in their credit profiles. So far, we have not incurred any significant losses related to the collection of income or revenue from royalty assets, available-for-sale debt securities, or the settlement of derivative financial instruments. However, if a counterparty faces bankruptcy or financial difficulties and fails to meet its obligations under a derivative financial instrument, we could face substantial delays in recovering amounts owed during bankruptcy or reorganization.
We obtain Captisol primarily from two sites related to a single supplier, Hovione. If this supplier were not able to supply the requested amounts of Captisol from each site, and if our safety stocks of material were depleted, we would be unable to continue to derive revenues from the sale of Captisol until we obtained material from an alternative source, which could take a considerable length of time.
Cash Equivalents
Cash equivalents consist of highly liquid investments with maturities of three months or less from the date of acquisition.
Short-term Investments
Short-term investments primarily consist of investments in debt and equity securities. We classify our short-term investments as “available-for-sale”. Such investments are carried at fair value, with unrealized gains and losses on debt securities included in the statements of comprehensive income (loss), net of tax, and unrealized gains and losses on equity securities included the consolidated statements of operations. We determine the cost of investments based on the specific identification method. We determine the realized gains or losses on the sale of available-for-sale securities using the specific identification method and include net realized gains and losses as a component of non-operating income and expenses within the consolidated statements of operations.
Debt securities consist of certificates of deposit, corporate debt securities, and securities of government-sponsored entities. Debt securities have effective maturities greater than three months and less than thirty-six months from the date of acquisition. Debt securities available-for-sale in an unrealized loss position are assessed for current expected credit losses. We start by assessing whether we intend to sell the security, or whether it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through earnings. For debt securities available-for-sale that do not meet the aforementioned criteria, we evaluate whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, we consider the extent to which fair value is less than amortized cost, any changes in interest rates, and any changes to the rating of the security by a rating agency, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security is compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income or loss, as applicable.
Equity securities consist of bond funds, investments in privately held companies (non-marketable equity securities), and companies that have completed initial public offerings (marketable equity securities). Bond funds are valued at their publicly quoted net asset value (“NAV”) price on the last day of the period. Our non-marketable equity securities without readily determinable market values are initially measured at cost and adjusted to fair value for observable transactions for identical or similar investments of the same issuer or impairment. Our marketable equity securities are measured at fair value. Equity investments are classified as short-term investments, equity method investment in Primrose Bio, or other investments, based on the nature of the securities and their availability for use in current operations.
For additional information, see “Note (7), Balance Sheet Account Details.”
Accounts Receivable and Allowance for Credit Losses
Our accounts receivable arise primarily from sales on credit to customers. We establish an allowance for credit losses to present the net amount of accounts receivable expected to be collected. The allowance is determined by using the loss-rate method, which requires an estimation of loss rates based upon historical loss experience adjusted for factors that are relevant to determining the expected collectability of accounts receivable. Some of these factors include macroeconomic conditions that correlate with historical loss experience, delinquency trends, aging behavior of receivables and credit and liquidity quality indicators for industry groups, customer classes or individual customers. During the years ended December 31, 2024, 2023 and 2022, we considered the current and expected future economic and market conditions and concluded a decrease of $0.1 million, an increase of $0.2 million, and a decrease of $0.3 million of allowance for credit losses, respectively.
Inventory
Inventory, which consists of finished goods (Captisol), is stated at the lower of cost or net realizable value. We determine cost using the specific identification method. We analyze our inventory levels periodically and write down inventory to net realizable value if it has become obsolete, has a cost basis in excess of its expected net realizable value or is in excess of expected requirements. During the years ended December 31, 2024, 2023 and 2022, we recorded an obsolete inventory charge of $0.2 million, $0.2 million and $1.1 million, respectively. In addition to finished goods, as of December 31, 2024 and 2023, inventory included prepayments of $3.1 million and $4.6 million, respectively, to our supplier for Captisol.
Property and Equipment
Property and equipment are stated at cost, subject to review for impairment, and depreciated over the estimated useful lives of the assets, which generally range from one to nine years, using the straight-line method. Amortization of leasehold improvements is recorded over the shorter of the lease term or estimated useful life of the related asset. Maintenance and repairs are charged to operations as incurred. When assets are sold, or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts and any gain or loss is included in operating income or expense.
For additional information, see “Note (7), Balance Sheet Account Details.”
Goodwill, Intangible Assets and Other Long-Lived Assets
Goodwill, which has an indefinite useful life, represents the excess of cost over fair value of net assets acquired. Goodwill is reviewed for impairment at the reporting unit level at least annually during the fourth quarter, or more frequently if an event occurs indicating the potential for impairment. During the goodwill impairment review, we assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than the carrying amount, including goodwill. The qualitative factors include, but are not limited to, macroeconomic conditions, industry and market considerations, and the overall financial performance. If, after assessing the totality of these qualitative factors, we determine that it is not more likely than not that the fair value of our reporting unit is less than the carrying amount, then no additional assessment is deemed necessary. Otherwise, we proceed to perform the quantitative assessment. We will then evaluate goodwill for impairment by comparing the estimated fair value of the reporting unit to its carrying value, including the associated goodwill. To determine the fair value, we generally use a combination of market approach based on Ligand and comparable publicly traded companies in similar lines of businesses and the income approach based on estimated discounted future cash flows. Our cash flow assumptions consider historical and forecasted revenue, operating costs and other relevant factors. We may also elect to bypass the qualitative assessment in a period and elect to proceed to perform the quantitative assessment for the goodwill impairment test. We performed the annual assessment for goodwill impairment at the reporting unit level during the fourth quarter of 2024, noting no impairment.
Our identifiable intangible assets are typically composed of acquired core technologies, licensed technologies, contractual relationships, customer relationships and trade names. The cost of identifiable intangible assets with finite lives is generally amortized on a straight-line basis over the assets’ respective estimated useful lives. We regularly perform reviews to determine if any event has occurred that may indicate that intangible assets with finite useful lives and other long-lived assets are potentially impaired. If indicators of impairment exist, an impairment test is performed to assess the recoverability of the affected assets by determining whether the carrying amount of such assets exceeds the undiscounted expected future cash flows. If the affected assets are not recoverable, we estimate the fair value of the assets and record an impairment loss if the carrying value of the assets exceeds the fair value. Factors that may indicate potential impairment include market conditions, industry and economic trends, changes in regulations, clinical success, historical and forecasted financial results, market capitalization, significant changes in the ability of a particular asset to generate positive cash flows, and the pattern of utilization of a particular asset. We did not identify indicators of impairment for the finite-lived intangibles at December 31, 2024.
For additional information, see “Note (7), Balance Sheet Account Details.”
Financial Royalty Assets, net (formerly known as Commercial License Rights)
Financial royalty assets represent a portfolio of future milestone and royalty payment rights acquired that are passive in nature (i.e., we do not own the intellectual property or have the right to commercialize the underlying products).
Although a financial royalty asset does not have the contractual terms typical of a loan (such as contractual principal and interest), we account for financial royalty assets under ASC 310, Receivables. Our financial royalty assets are classified similar to loans receivable and are measured at amortized cost using the prospective effective interest method described in ASC 835-30 Imputation of Interest.
The effective interest rate is calculated by forecasting the expected cash flows to be received over the life of the asset relative to the initial invested amount. The effective interest rate is recalculated in each reporting period as the difference between expected cash flows and actual cash flows are realized and as there are changes to expected future cash flows.
The gross carrying value of a financial royalty asset is made up of the opening balance, or net purchase price for a new financial royalty asset, which is increased by accrued interest income (except for assets under the non-accrual method) and decreased by cash receipts in the period to arrive at the ending balance.
We evaluate financial royalty assets for recoverability on an individual basis by comparing the effective interest rate at each reporting date to that of the prior period. If the total amount of expected undiscounted cash flows is below the amortized cost basis, we measure and record an allowance for the change in expected cash flows. This allowance is measured as the difference between the financial royalty asset’s amortized cost basis and the net present value of the expected future cash flows, calculated using the original effective interest rate. In a subsequent period, if there is an increase in expected future cash flows, or if actual cash flows are greater than cash flows previously expected, we reduce the previously established cumulative allowance in part or in full.
In addition to the above allowance, we recognize an allowance for current expected credit losses under ASC 326, Financial Instruments – Credit Losses on our financial royalty assets. The credit rating, which is primarily based on publicly available data and updated quarterly, is the primary credit quality indicator used to determine the credit loss provision.
The carrying value of financial royalty assets is presented net of the cumulative allowances for changes in expected future cash flows and expected credit losses. The initial amount and subsequent revisions in allowances for changes in expected future cash flows and expected credit losses are recorded as part of general and administrative expenses on the consolidated statements of operations.
When we are reasonably certain that a part of a financial royalty asset’s net carrying value (or all of it) is not recoverable, we recognize an impairment which is recorded in financial royalty assets impairment on the consolidated statements of operations. To the extent there was an allowance previously recorded for this asset, the amount of such impairment is written off against the allowance at the time that such a determination is made. Any future recoveries from such impairment are recognized when cash is collected in a respective period earnings.
The current portion of financial royalty assets represents an estimation for current quarter royalty receipts which are collected during the subsequent quarter. This portion is presented in other current assets on our consolidated balance sheets, net of the allowance for expected credit losses.
For additional information, see “Note (6), Financial Royalty Assets, net (formerly known as Commercial License Rights)”.
Derivative Assets
Derivative assets include instruments used for risk-management purposes, and other instruments. Derivative assets which are not used for risk management purposes, include: (a) acquired rights in future milestone and royalty payments from Agenus Partnered Programs (as defined in “Note (2), Agenus Transaction”), (b) Agenus Warrant (as defined “Note (2), Agenus Transaction”), (c) option to invest up to $25 million to milestone and royalty rights which expires on June 30, 2025 (“Upsize Option”), and (d) rights to receive from Primrose Bio 50% of milestones on two contracts previously entered into by Primordial Genetics.
During the three months ended June 30, 2024, we entered into a collar arrangement to hedge against the fluctuation risk in Viking's share price (the “Viking Share Collar”). However, because the Viking stock investment is remeasured at fair value through earnings under ASC 321, the Viking Share Collar is not eligible for hedge accounting, but is considered as an economic hedge. The Viking Share Collar was fully exercised during three month period ending December 31, 2024. During the three months ended December 31, 2024, we entered into a put arrangement to hedge against the fluctuation risk in Viking's share price (the “Viking Share Put”) which expired within the same quarter.
All derivatives are measured at fair value on the consolidated balance sheets. For additional information, see “Note (8), Fair Value Measurement” and “Note (7), Balance Sheet Account Details”.
Equity Method Investment
Investments that we do not consolidate but in which we have significant influence over the operating and financial policies of the investee are classified as equity method investments and are accounted for using the equity method of accounting.
In applying the equity method of accounting, investments are initially recorded at cost and are subsequently adjusted based on our proportionate share of net income or loss of the investee, net of any distributions received from the investee and any impairment.
For additional information, see “Note (4), Sale of Pelican Business and Investment in Primrose Bio”.
Other Investments
Other investments represent our investments in equity securities of third parties in which we do not have control or significant influence. Our equity securities investments do not have a readily determinable or estimable fair value and are measured using the measurement alternative, which is cost less impairment, if any, and adjustments resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer. The amount of such impairment or adjustment recognized during the period is presented in other non-operating (expense) income, net in our consolidated statements of operations. For additional information, see “Note (7), Balance Sheet Account Details.”
Contingent Liabilities
In connection with the acquisition of CyDex in January 2011, we recorded a contingent liability for amounts potentially due to holders of the CyDex CVRs and former license holders. The liability is periodically assessed based on events and circumstances related to the underlying milestones, royalties and material sales.
In connection with the acquisition of Metabasis in January 2010, we issued Metabasis stockholders four tradable CVRs for each Metabasis share. The fair values of the CVRs are remeasured at each reporting date through the term of the related agreement.
Any change in fair value is recorded in other non-operating (expense) income, net in our consolidated statements of operations. For additional information, see “Note (8), Fair Value Measurement” and “Note (7), Balance Sheet Account Details”.
Revenue and Other Income
Our revenue is generated primarily from royalties on sales of products commercialized by our partners, Captisol material sales, income from financial royalty assets, and contract revenue for license fees, technical, regulatory and sales-based milestone payments. Other operating income is primarily related to milestone income received for financial royalty assets that have been fully amortized or where there is no underlying asset recognized on the consolidated balance sheets.
We apply the following five-step model in accordance with ASC 606, Revenue from Contracts with Customers, in order to determine the revenue: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation.
Revenue from Intangible Royalty Assets
We receive royalty revenue from intangible royalty assets on sales by our partners of products covered by patents that we or our partners own under contractual agreements. We do not have future performance obligations under these license arrangements. We generally satisfy our obligation to grant intellectual property rights on the effective date of the contract. However, we apply the royalty recognition constraint required under the guidance for sales-based royalties which requires a royalty to be recorded no sooner than when the underlying sale occurs. Therefore, royalties on sales of products commercialized by our partners are recognized in the quarter the product is sold. Our partners generally report sales information to us on a one quarter lag. Thus, we estimate the expected royalty proceeds based on an analysis of historical experience and interim data provided by our partners including their publicly announced sales. Differences between actual and estimated royalty revenues, which have not been material, are adjusted in the period in which they become known, typically the following quarter.
Income from Financial Royalty Assets
Effective January 1, 2024, we introduced a new line item “income from financial royalty assets”, which was included in “contract revenue” in prior periods. Accordingly, the prior year period amounts have been reclassified to align with the current period presentation.
We recognize income from financial royalty assets when there is a reasonable expectation about the timing and amount of cash flows expected to be collected. Income is calculated by multiplying the carrying value of the financial royalty asset by the periodic effective interest rate.
We account for financial royalty assets related to developmental pipeline or recently commercialized products on a non-accrual basis. Developmental pipeline products are non-commercialized, non-approved products that require FDA or other regulatory approval, and thus have uncertain cash flows. Newly commercialized products typically do not have an established reliable sales pattern, and thus have uncertain cash flows.
Captisol Sales
Revenue from Captisol sales is recognized when control of Captisol material is transferred or intellectual property license rights are granted to our customers in an amount that reflects the consideration we expect to receive from our customers
in exchange for those products or rights. A performance obligation is considered distinct from other obligations in a contract when it provides a benefit to the customer either on its own or together with other resources that are readily available to the customer and is separately identified in the contract. For Captisol material or intellectual property license rights, we consider our performance obligation satisfied once we have transferred control of the product or granted the intellectual property rights, meaning the customer has the ability to use and obtain the benefit of the Captisol material or intellectual property license right. We recognize revenue for satisfied performance obligations only when we determine there are no uncertainties regarding payment terms or transfer of control. Sales tax and other taxes we collect concurrent with revenue-producing activities are excluded from revenue. We have elected to recognize the cost of freight and shipping when control over Captisol material has transferred to the customer as an expense in cost of Captisol in our consolidated statements of operations. We expense incremental costs of obtaining a contract when incurred if the expected amortization period of the asset that we would have recognized is one year or less or the amount is immaterial. We did not incur any incremental costs of obtaining a contract during the periods reported.
Contract Revenue and Other Income
Our contracts with customers often include variable consideration in the form of contingent milestone payments. We include contingent milestone payments in the estimated transaction price when it is probable a significant reversal in the amount of cumulative revenue recognized will not occur. These estimates are based on historical experience, anticipated results and our best judgment at the time. If the contingent milestone payment is based on sales, we apply the royalty recognition constraint and record revenue when the underlying sale has taken place. Significant judgments must be made in determining the transaction price for our sales of intellectual property. Because of the risk that products in development with our partners will not reach development milestones or receive regulatory approval, we generally recognize any contingent payments that would be due to us upon the development milestone or regulatory approval.
Some customer contracts are sublicenses which require that we make payments to an upstream licensor related to license fees, milestones and royalties which we receive from customers. In such cases, we evaluate the determination of gross revenue as a principal versus net revenue as an agent reporting based on each individual agreement.
Other income is primarily related to milestone income received for financial royalty assets that have been fully amortized or where there is no underlying asset recognized on the consolidated balance sheets.
Deferred Revenue
Depending on the terms of the arrangement, we may also defer a portion of the consideration received if we have to satisfy a future obligation. The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets), and customer advances and deposits (contract liabilities) on the consolidated balance sheet. Except for royalty revenue and certain service revenue, we generally receive payment at the point we satisfy our obligation or soon after. Therefore, we do not generally carry a contract asset balance. Any fees billed in advance of being earned are recorded as deferred revenue. During the year ended December 31, 2024, the amount recognized as revenue that was previously deferred at December 31, 2023 was $1.3 million. During the year ended December 31, 2023, the amount recognized as revenue that was previously deferred at December 31, 2022 was $0.1 million.
Disaggregation of Revenue
Royalties for 2024, 2023 and 2022 for continuing operations are reported as below (in thousands):
Year ended December 31,
202420232022
Royalties
Kyprolis$38,377 $35,640 $30,116 
Rylaze 13,743 13,520 8,796 
Filspari12,179 2,655 — 
Evomela8,680 10,212 10,197 
Teriparatide injection 8,221 11,061 15,785 
Vaxneuvance5,184 4,062 1,083 
Other8,945 6,760 6,550 
Revenue from intangible royalty assets95,329 83,910 72,527 
Income from financial royalty assets13,444 1,049 385 
Total royalties$108,773 $84,959 $72,912 
The following table represents disaggregation of Captisol and contract revenue and other income for continuing operations (in thousands):
Year ended December 31,
202420232022
Captisol
Captisol - Core$30,883 $28,372 $16,429 
Captisol - COVID(a)
— — 88,066 
Total Captisol$30,883 $28,372 $104,495 
Contract revenue and other income
Milestone and other$25,533 $17,983 $18,838 
Other income1,944 — — 
Total contract revenue and other income$27,477 $17,983 $18,838 
(a) Captisol - COVID represents revenue on Captisol supplied for use in formulation with remdesivir, an antiviral treatment for COVID-19.
Research and Development Expenses
Research and development expense consists of labor, material, equipment, and allocated facilities costs of our scientific staff who are working pursuant to our collaborative agreements and other research and development projects. Also included in research and development expenses are third-party costs incurred for our research programs including in-licensing costs, contract research organization (“CRO”) costs and costs incurred by other research and development service vendors. We expense these costs as they are incurred. When we make payments for research and development services prior to the services being rendered, we record those amounts as prepaid assets on our consolidated balance sheet and we expense them as the services are provided.
Share-Based Compensation
We incur share-based compensation expense related to restricted stock, ESPP, and stock options.
Restricted stock unit (“RSU”) and performance stock unit (“PSU”) are all considered restricted stock. The fair value of restricted stock is determined by the closing market price of our common stock on the date of grant. We recognize share-based compensation expense based on the fair value on a straight-line basis over the requisite service periods of the awards, taking into consideration of forfeitures as they occur. PSU generally represents a right to receive a certain number of shares of common stock based on the achievement of corporate performance goals and continued employment during the vesting period. At each reporting period, we reassess the probability of the achievement of such corporate performance goals and any expense change resulting from an adjustment in the estimated shares to be released are treated as a cumulative catch-up in the period of adjustment. A limited amount of PSUs contain a market condition dependent upon the Company’s relative and absolute total stockholder return over a three-year period, with a range of 0% to 200% of the target amount granted to be issued under the award. Share-based compensation expense for these PSUs is measured using the Monte-Carlo simulation valuation model and is not adjusted for the achievement, or lack thereof, of the market conditions.
The Black-Scholes-Merton option-pricing model is used to estimate the fair value of stock purchases under our ESPP and stock options granted. The model assumptions include expected volatility, term, dividends, and the risk-free interest rate. We look to historical and implied volatility of our stock to determine the expected volatility. The expected term of an award is based on historical forfeiture experience, exercise activity, and on the terms and conditions of the stock awards. The expected dividend yield is determined to be 0% given that except for 2007, during which we declared a cash dividend on our common stock of $2.50 per share, we have not paid any dividends on our common stock in the past and currently do not expect to pay cash dividends or make any other distributions on common stock in the future. The risk-free interest rate is based upon U.S. Treasury securities with remaining terms similar to the expected term of the share-based awards.
We grant options, RSUs and PSUs to employees and non-employee directors. Non-employee directors are accounted for as employees. Options and RSUs granted to certain non-employee directors typically vest one year from the date of grant. Options granted to employees typically vest 1/8 on the six month anniversary of the date of grant, and 1/48 each month thereafter for forty-two months. RSUs and PSUs granted to employees vest over three years. All option awards generally expire ten years from the date of grant.
Share-based compensation expense for awards to employees and non-employee directors is recognized on a straight-line basis over the vesting period until the last tranche vests.
Income Taxes
The provision for income taxes is computed using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for the expected future tax benefit to be derived from tax loss and credit carryforwards. Deferred tax assets and liabilities are determined using the enacted tax rates in effect for the years in which those tax assets are expected to be realized. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the provision for income taxes in the period that includes the enactment date.
Deferred tax assets are regularly assessed to determine the likelihood they will be recovered from future taxable income. A valuation allowance is established when we believe it is more likely than not the future realization of all or some of a deferred tax asset will not be achieved. In evaluating the ability to recover deferred tax assets within the jurisdiction which they arise we consider all available positive and negative evidence. Factors reviewed include the cumulative pre-tax book income for the past three years, scheduled reversals of deferred tax liabilities, history of earnings and reliable forecasting, projections of pre-tax book income over the foreseeable future, and the impact of any feasible and prudent tax planning strategies.
We recognize the impact of a tax position in our financial statements only if that position is more likely than not of being sustained upon examination by taxing authorities, based on the technical merits of the position. Tax authorities regularly examine our returns in the jurisdictions in which we do business and we regularly assess the tax risk of our return filing positions. Due to the complexity of some of the uncertainties, the ultimate resolution may result in payments that are materially different from our current estimate of the tax liability. These differences, as well as any interest and penalties, will be reflected in the provision for income taxes in the period in which they are determined.
Income (Loss) Per Share
Basic income (loss) per share is calculated by dividing net income (loss) by the weighted-average number of common shares outstanding during the period. Diluted income per share is computed based on the sum of the weighted average number of common shares and potentially dilutive common shares outstanding during the period. Diluted loss per share is computed based on the sum of the weighted average number of common shares outstanding during the period.
Potentially dilutive common shares consist of shares issuable under the 2023 Notes, stock options and restricted stock. Although we paid off the 2023 Notes in May 2023, it would have a dilutive impact when the average market price of our common stock exceeded the maximum conversion price during the year ended December 31, 2023. It is our intent and policy to settle conversions through combination settlement, which essentially involves payment in cash equal to the principal portion and delivery of shares of common stock for the excess of the conversion value over the principal portion. Potentially dilutive common shares from stock options and restricted stock are determined using the average share price for each period under the treasury stock method. In addition, the following amounts are assumed to be used to repurchase shares: proceeds from exercise of stock options and the average amount of unrecognized compensation expense for stock options and restricted stock. In loss periods, basic net loss per share and diluted net loss per share are identical since the effect of otherwise dilutive potential common shares is anti-dilutive and therefore excluded. For additional information, see “Note (11), Stockholders’ Equity”.
In accordance with ASC 260, Earnings per Share, if a company had a discontinuing operation, the company uses income from continuing operations, adjusted for preferred dividends and similar adjustments, as its control number to determine whether potential common shares a dilutive. The following table presents the calculation of weighted average shares used to calculate basic and diluted income (loss) per share (in thousands):
Year Ended December 31,
 202420232022
Weighted average shares outstanding:18,290 17,298 16,868 
Dilutive potential common shares:
   Restricted stock— 85 — 
   Stock options— 255 — 
   2023 Convertible Senior Notes— 119 — 
Shares used to compute diluted income per share18,290 17,757 16,868 
Potentially dilutive shares excluded from calculation due to anti-dilutive effect1,530 4,357 6,241 
Foreign Currency Translation
The Euro is the functional currency of Apeiron and the corresponding financial statements have been translated into U.S. Dollars in accordance with ASC 830-30, Translation of Financial Statements. Assets and liabilities are translated at end-of-period rates while revenues and expenses are translated at average rates in effect during the period in which the activity took
place. Equity is translated at historical rates and the resulting cumulative translation adjustments are included as a component of accumulated other comprehensive income (loss).
Comprehensive Income (Loss)
Comprehensive income (loss) represents net income (loss) adjusted for the change during the periods presented for unrealized gains and losses on available-for-sale debt securities and foreign currency translation adjustments.
Accounting Standards Updates, Recently Adopted
In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. We have adopted the updated accounting guidance in our Annual Report on the Form 10-K for the year ended December 31, 2024. We have updated our segment disclosure (see “Note (1), Basis of Presentation and Summary of Significant Accounting Policies”) including, among other required items, the information on significant segment expenses that are regularly provided to the CODM and included within the reported segment profit or loss measure.
Accounting Standards Not Yet Adopted
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The update requires a public business entity to disclose, on an annual basis, a tabular rate reconciliation using both percentages and currency amounts, broken out into specified categories with certain reconciling items further broken out by nature and jurisdiction to the extent those items exceed a specified threshold. In addition, all entities are required to disclose income taxes paid, net of refunds received disaggregated by federal, state/local, and foreign and by jurisdiction if the amount is at least 5% of total income tax payments, net of refunds received. Adoption of the ASU allows for either the prospective or retrospective application of the amendment and is effective for annual periods beginning after December 15, 2024, with early adoption permitted. We have not yet completed the assessment of the impact of ASU 2023-09 on our consolidated financial statements.
In November 2024, the FASB issued ASU No. 2024-03, Income Statement—Reporting Comprehensive Income (Subtopic 220-40): Expense Disaggregation Disclosures. This update requires entities to disaggregate operating expenses into specific categories, such as salaries and wages, depreciation, and amortization, to provide enhanced transparency into the nature and function of expenses. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, with early adoption permitted. ASU 2024-03 may be applied retrospectively or prospectively. We are currently evaluating the new guidance to determine the impact it may have on our consolidated financial statements and related disclosures.
We do not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material impact on our consolidated financial statements or disclosures.
v3.25.0.1
Agenus Transaction
 12 Months Ended
Dec. 31, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]  
Agenus Transaction Agenus Transaction
On May 29, 2024, we closed the transactions pursuant to the $75 million purchase and sale agreement (the “Agenus Agreement”), dated May 6, 2024, among us and Agenus Inc., Agenus Royalty Fund, LLC, and Agenus Holdings 2024, LLC (collectively, “Agenus”). Under the terms of the Agenus Agreement, we received (i) 18.75% of the licensed royalties and 31.875% of the future licensed milestones paid to Agenus on six-partnered oncology programs, including BMS-986442 (Bristol Myers Squibb), AGEN2373 (Gilead Sciences), INCAGN2385 and INCAGN2390 (Incyte), MK-4830 (Merck), and UGN-301 (UroGen Pharma) (collectively referred as “Agenus Partnered Programs”), and (ii) a synthetic 2.625% royalty on future global net sales of Agenus’ novel immuno-oncology botensilimab in combination with balstilimab (“BOT/BAL”) program, collectively subject to certain events which may adjust the royalty and milestone percentages paid to us. In addition, we received the option to commit an additional $25 million in the same assets on a pro rata basis which expires on June 30, 2025 (“Upsize Option”). We have also agreed to allow Agenus to raise up to an additional $100 million bringing the total syndicated purchase price up to an aggregate of $200 million. As part of the Agenus Agreement, Agenus granted us security over certain assets related to the programs included in the Agenus Agreement, subject to certain customary exceptions.
In connection with entry into the Agenus Agreement, Agenus issued us a 5-year warrant (“Agenus Warrant”) to purchase 867,052 shares of its common stock, at an exercise price equal to $17.30.
We accounted for all Agenus Partnered Programs, Agenus Warrant and Upsize Option as derivative assets. All derivatives, except for Upsize Option, were presented in noncurrent derivative assets line in our consolidated balance sheets. Agenus Partnered Programs were recognized as derivative assets under ASC 815, Derivatives and Hedging, as they have different underlyings (milestone payments and royalties). The commercial milestones and royalties are dependent on the development milestones and the commercial milestone and royalties underlyings are not determined to be predominate. The derivative assets were recorded at fair value as of May 29, 2024, and are marked to fair value at each subsequent reporting period.
The fair value of Agenus Partnered Programs derivative assets is determined as a present value of expected future cash flows adjusted for the level of risk appropriate for a respective program stage. As of Agenus Transaction date, it was $21.3 million. During the three months ended September 30, 2024, certain Agenus partners discontinued development of their partnered programs. These programs may be relicensed at a later date, and Ligand would retain its economic interest upon any relicense activity.
The fair value of Agenus Warrant is determined using a Black-Scholes model. The following assumptions were used as of May 29, 2024, and December 31, 2024, respectively: expected term of 4.0 years and 3.4 years, volatility of 84% and 102%, risk-free rate of 4.7% and 4.3%, Agenus stock price of $15.03 and $2.74.
The fair value of the Upsize Option was determined using the binomial option pricing model under which we assessed and considered the possible upwards and downwards scenarios through the expiration date of the Upsize Option. The fair value of the Upsize Option was written down to zero as of December 31, 2024.
For additional information on the Agenus Partnered Program derivative assets, Agenus Warrant, and Upsize Option, see “Note (8), Fair Value Measurements”.
We accounted for the acquired BOT/BAL rights as a financial royalty asset which is currently put under the non-accrual method as management cannot reliably estimate future cash flows from this program. The amount of BOT/BAL financial royalty asset was determined as a residual value from the $75 million aggregate investment amount, less fair value of all acquired derivative assets as of May 29, 2024. For additional information on the Agenus BOT/BAL rights, see “Note (6), Financial Royalty Assets, net (formerly known as Commercial License Rights)”.
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Acquisitions
 12 Months Ended
Dec. 31, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]  
Acquisitions Acquisitions
Apeiron
On July 15, 2024, we acquired all the outstanding shares of Biologics AG (“Apeiron”), including the royalty rights to Qarziba (dinutuximab beta) for the treatment of high-risk neuroblastoma (the “Apeiron Acquisition”) for $100.5 million base consideration. We funded the Apeiron Acquisition from our available cash on hand.
In addition to base consideration, we would also pay Apeiron shareholders an additional consideration based on future commercial and regulatory events, including up to $28 million if Qarziba royalties exceed certain predetermined thresholds by either 2030 or 2034, and pay additional earn-outs on specific future events, primarily related to Qarziba regulatory approval and commercialization in the USA.
We evaluated this acquisition in accordance with ASC 805, Business Combinations, to discern whether the assets and operations of Apeiron met the definition of a business. We accounted for this transaction as assets acquisition.
We incurred $4.9 million of transaction costs related to the Apeiron Acquisition, which were included in the amount of total purchase consideration. All assets acquired (except for contract assets) and liabilities assumed in the Apeiron Acquisition were recognized at their fair values. Contract assets acquired were recognized on a relative fair value basis.
The amount of purchase consideration was allocated to the acquisition date fair values of acquired assets and assumed liabilities as follows (in thousands):
Cash and cash equivalents$13,437 
Contract assets (financial royalty assets)106,156 
Other assets8,965 
Accounts payable and accrued liabilities(3,740)
Income tax payable(1,276)
Deferred tax liabilities, net(18,109)
Total fair value of net assets acquired$105,433 
Contract assets acquired are accounted for as financial royalty assets, similar to loans receivable and are measured at amortized cost using the prospective effective interest method described in ASC 835-30. The acquired contracts assets include Qarziba and other development phase contract assets.
As Qarziba is a commercial phase program, we are able to reasonably estimate future cash flows and, as such, we recognize income from Qarziba financial royalty assets starting from the Apeiron Acquisition effective date, which is calculated by multiplying the carrying value of the financial royalty asset by the periodic effective interest rate. As described in “Note (1), Basis of Presentation and Significant Accounting Policies”, the effective interest rate is calculated by forecasting the expected cash flows to be received over the life of the asset relative to the initial invested amount. The effective interest rate is recalculated in each reporting period as the differences between expected cash flows and actual cash flows are realized and as
there are changes to expected future cash flows. We account for other Apeiron development phase financial royalty assets on a non-accrual basis as there is a higher level of uncertainty over the related expected cash flows.
For tax purposes this transaction is treated as a stock purchase. As a result, we will not obtain a tax stepped-up basis in Apeiron’s underlying assets and will assume the carryover tax basis. As part of the tax purchase price accounting, deferred tax liabilities of $18.1 million have been recorded to reflect the difference between the book and tax basis of the acquired assets.
We account for the earnout liabilities in the Apeiron Acquisition in accordance with ASC450, Contingencies, and will recognize respective liability when the contingency is resolved, and the liability becomes payable. No earnout liability is recognized as of the acquisition date or as of December 31, 2024.
In conjunction with the Apeiron Acquisition, we have also invested $4.2 million (including $0.2 million transaction costs) in InvIOs Holding AG (“InvIOs”) common shares, a privately held spin-off of Apeiron. This investment was part of an €8 million (approximately $8.8 million) round with other investors which would help finance the research and development of three innovative early-stage immuno-oncology assets. Apeiron has previously outlicensed these assets to InvIOs and is entitled to future royalties and milestone payments.
As the result of this investment, we did not obtain control or significant influence in InvIOs. We determined that common stock of InvIOs did not have a readily determinable fair value and therefore elected the measurement alternative in ASC 321 to subsequently record the investment at cost, less any impairments, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer. When fair value becomes determinable, from observable price changes in orderly transactions, our investment will be marked to fair value.
Novan
On September 27, 2023, we closed the transaction to acquire certain assets of Novan, Inc. (“Novan”) pursuant to the agreement we entered into with Novan on July 17, 2023 for $15 million in cash (which agreement contemplated Novan filing for bankruptcy relief) and provided up to $15 million in debtor-in-possession (“DIP”) financing inclusive of a $3 million bridge loan funded on the same day. Novan filed for Chapter 11 reorganization on July 17, 2023. On September 27, 2023, the bankruptcy court approved our $12.2 million bid to purchase from Novan its lead product candidate berdazimer topical gel, 10.3%, all other assets related to the NITRICIL technology platform and the rights to one commercial stage asset. The remaining commercial assets of Novan will be sold to other parties. The approved $12.2 million bid was credited to the $15 million DIP financing, with the balance of $2.8 million and accrued interest repaid to us.
The acquisition was accounted for as business combination. We recorded $3.1 million of acquisition-related costs for legal, due diligence and other costs in connection with the acquisition within operating expenses in our consolidated statement of operations for the year ended December 31, 2023.
We have finalized purchase accounting for the Novan acquisition. The following table sets forth an allocation of the purchase price to the identifiable tangible and intangible assets acquired and liabilities assumed, with the excess recorded to goodwill (in thousands):
Restricted cash$583 
Property and equipment, net13,054 
Operating lease right-of-use asset3,683 
Other assets137 
Deferred tax asset1,013 
Intangible assets acquired 10,700 
Goodwill3,709 
Deferred revenue(4,508)
Operating lease liabilities(3,683)
Other liabilities(13,700)
Cash paid for Novan, including restricted cash received10,988 
DIP loan fees and interest1,162 
Total consideration $12,150 
None of the goodwill is deductible for tax purposes. Acquired intangible assets of $10.7 million related to core technology. The fair value of the core technology was based on the discounted cash flow method that estimated the present value of the potential royalties, milestones, and collaboration revenue streams derived from the licensing of the related technologies. These projected cash flows were discounted to present value using a discount rate of 29%. The fair value of the core technology is being amortized on a straight-line basis over the estimated useful life of 15 years.
Acquired other liabilities of $13.7 million related to a royalty and milestone payments purchase agreement, entered by Novan in 2019 and assumed as part of the acquisition, which previously provided Novan $25 million of funding used primarily in the clinical development of berdazimer topical gel, 10.3%. Pursuant to the purchase agreement, Novan will pay ongoing quarterly payments, calculated based on an applicable percentage per product of any upfront fees, milestone payments, royalty payments or equivalent payments received by Novan pursuant to any out-license agreement, net of any upfront fees, milestone payments, royalty payments or equivalent payments paid by Novan to third parties pursuant to any agreements under which Novan has in-licensed intellectual property with respect to such products. If Novan decides to commercialize any product on its own following regulatory approval, as opposed to commercializing through an out-license agreement or other third-party arrangement, Novan will be obligated to pay a low single digits royalty on net sales of such products. This contract liability was fair valued based on the discounted cash flow method that estimated the present value of the potential royalties, milestones, and collaboration revenue streams derived from the related programs mentioned above, by applying a discount rate of 14% (revenue risk-adjusted discount rate).
On April 3, 2024, we announced the creation of Pelthos Therapeutics to focus on the commercialization of innovative, safe, and efficacious therapeutic products for patients suffering from conditions with limited treatment options. ZELSUVMI (berdazimer topical gel, 10.3%), its first product, is the FDA-approved prescription medicine for the treatment of the highly transmissible molluscum contagiosum (molluscum) viral skin infection in adults and pediatric patients one year of age and older. ZELSUVMI received a Novel Drug designation from the FDA in January 2024 to treat molluscum viral skin infection. ZELSUVMI was developed using Pelthos' proprietary nitric oxide-based NITRICIL technology platform. The rights to ZELSUVMI and all assets related to the NITRICIL technology platform were acquired from Novan in September 2023 in the Novan acquisition described above.
v3.25.0.1
Sale of Pelican Business and Investment in Primrose Bio
 12 Months Ended
Dec. 31, 2024
Discontinued Operations and Disposal Groups [Abstract]  
Sale of Pelican Business and Investment in Primrose Bio Sale of Pelican Business and Investment in Primrose Bio
On September 18, 2023, we entered into a merger agreement, pursuant to which our subsidiary, Pelican Technology Holdings, Inc. (“Pelican”) became a wholly owned subsidiary of Primrose Bio. Primrose Bio is a private company focused on synthetic biology. Pelican has developed technology related to PET (protein expression technology) and PelicCRM197 (vaccine material), and has property and equipment, as well as leased property in San Diego, CA. As part of the transaction, we received 2,146,957 common shares, 4,278,293 preferred shares and 474,746 restricted shares of Primrose Bio. Simultaneous with the merger, we entered into a Purchase and Sale Agreement with Primrose Bio and contributed $15 million in exchange for 50% of potential development milestones and certain commercial milestones from two contracts previously entered into by Primordial Genetics. In addition, starting January 1, 2025, we will receive 25% of sales revenue of PeliCRM197 above $3 million and 35% of all PeliCRM197 licensing revenue in perpetuity.
We retained contractual relationships utilizing the Pelican Expression Technology, including the commercial royalty rights to Jazz’s Rylaze, Merck’s Vaxneuvance and V116 vaccines, Alvogen’s Teriparatide, Serum Institute of India’s vaccine programs, including Pneumosil and MenFive vaccines, among others.
We determined that the sale of Pelican meets the definition of a deconsolidation of a business. Net assets sold together with allocated goodwill and cash consideration paid were as follows (in thousands):
Property and equipment, net$8,250 
Intangible assets19,895 
Other assets717 
Operating lease right-of-use assets8,693 
Finance lease right-of-use assets20 
Accrued liabilities(630)
Deferred revenue(495)
Long-term operating lease liabilities(8,445)
Other liabilities(74)
Net assets sold27,931 
Allocated goodwill4,132 
Cash consideration paid15,000 
$47,063 

Fair value of the consideration received includes the following (in thousands):
Equity method investment$13,706 
Equity securities32,278 
Derivative assets3,200 
$49,184 
Goodwill allocated to the selling business based on the relative fair value of the Pelican business and Ligand that was written off was $4.1 million, resulting in a $2.1 million gain on sale of Pelican recorded to income (loss) from operations for the year ended December 31, 2023.
Transaction costs of $1.2 million were allocated to the equity method investment and equity securities based on the relative fair value.
As described above, we will receive 25% of sales revenue of PeliCRM197 above $3.0 million and 35% of all PeliCRM197 licensing revenue in perpetuity. The considerations were recognized as contingent consideration under the loss recovery model and they will be measured based on the gain contingency model under ASC 450, Contingencies, and thus, will be recognized as the underlying contingencies are resolved.
In addition, we will receive 50% of potential development milestones and certain commercial milestones from two contracts previously entered into by Primordial Genetics. The considerations were recognized as derivative assets with a fair value of $3.2 million, at the disposition date, which was included in noncurrent derivative assets in our consolidated balance sheets. They are recognized as derivative assets under ASC 815, Derivatives and Hedging, as they have two underlyings (development and commercial milestones) and (i) the commercial milestones are dependent on the development milestones and (ii) the commercial milestone underlying is not determined to be predominate. The derivative assets are recorded at fair value as of September 18, 2023, and will be marketed to fair value at each reporting period going forward. During the year ended December 31, 2024, an adjustment of $(0.1) million was recorded to market the derivative assets to fair value and was included in fair value adjustments to partner program derivatives in our consolidated statement of operations. During the year ended December 31, 2023, an adjustment of $0.3 million was recorded to market the derivative assets to fair value and was included in other non-operating (expense) income, net in our consolidated statement of operations. For additional information, see “Note (8), Fair Value Measurement” and “Note (7), Balance Sheet Account Details”.
Investments in Primrose Bio
We apply the equity method to investments in common stock and to other investments in entities that have risk and reward characteristics that are substantially similar to an investment in the investee’s common stock. Since the preferred stock and restricted share investment in Primrose Bio has a substantive liquidation preference, it is not substantially similar to the common stock investment and is therefore recorded as an equity security under ASC 321, Investments - Equity Securities.
We account for our common stock investment in Primrose Bio under the equity method as we have the ability to exercise significant influence over Primrose Bio's operating and financial results. In applying the equity method, we record the investment at fair value. Our proportionate share of net loss of Primrose Bio is recorded in our consolidated statements of operations. Our equity method investment is reviewed for indicators of impairment at each reporting period and is written down to fair value if there is evidence of a loss in value that is other-than-temporary. In June 2024, Primrose Bio received an equity
investment from an equity firm. In July 2024, Primrose Bio raised additional funds from another equity firm. As a result, we recognized an impairment loss on our equity method investment in the amount of $5.8 million during the year ended December 31, 2024. There was no impairment to our equity method investment during the year ended December 31, 2023. Our share of the net loss of Primrose Bio for the years ended December 31, 2024 and 2023 was $7.0 million and $1.8 million, respectively, which reduced Ligand's equity method investment accordingly. Any income or loss from our equity method investment (including the impairment) is presented in other non-operating (expense) income, net in our consolidated statements of operations.
We determined that the Series A preferred stock and reserve stock investments in Primrose Bio did not have a readily determinable fair value and therefore elected the measurement alternative in ASC 321 to subsequently record the investments at cost, less any impairments, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer. When fair value becomes determinable, from observable price changes in orderly transactions, our investments will be marked to fair value. Our investments in Series A preferred stock and reserve stock have been reduced by $25.8 million during the year ended December 31, 2024 in connection with the above mentioned equity funding received by Primrose Bio in June and July 2024. There were no no observable price changes or impairment to our investments in Series A preferred stock and reserve stock during the year ended December 31, 2023. Any income or loss from our investments in Series A preferred stock and reserve stock (including the impairment) is presented in other non-operating (expense) income, net in our consolidated statements of operations.
Former President and Chief Operating Officer Matt Korenberg served as a board member of Primrose Bio beginning in the fourth quarter of 2023. His employment with Ligand concluded in October 2024, after which Lauren Hay, Vice President of Strategic Planning & Investment Analytics, succeeded him as a board member of Primrose Bio.
Spin-off of OmniAb
On March 23, 2022, we entered into the OmniAb Separation and Distribution Agreement to separate our OmniAb Business and the OmniAb Merger Agreement, pursuant to which Merger Sub would merge with and into OmniAb, with OmniAb continuing as the surviving corporation and wholly owned subsidiary of New OmniAb following the effectiveness of such merger, resulting in New OmniAb’s acquisition of our OmniAb Business, in a Reverse Morris Trust transaction (collectively, the “OmniAb Transactions”).
After the final closing date of the OmniAb Transactions on November 1, 2022, the historical financial results of OmniAb have been reflected in our consolidated financial statements as discontinued operations under GAAP for all periods presented through the date of the OmniAb Distribution. Pursuant to the OmniAb Separation and Distribution Agreement, Ligand contributed to OmniAb cash and certain specific assets and liabilities constituting the OmniAb Business. Pursuant to the OmniAb Distribution, Ligand distributed on a pro rata basis to its stockholders as of October 26, 2022 shares of the common stock of OmniAb representing 100% of Ligand’s interest in OmniAb. Immediately following the OmniAb Distribution, Merger Sub merged with and into OmniAb, with OmniAb continuing as the surviving company in the OmniAb Merger and as a wholly owned subsidiary of New OmniAb. The entire transaction was completed on November 1, 2022, and following the OmniAb Merger, New OmniAb is an independent, publicly traded company whose common stock trades on NASDAQ under the symbol “OABI.” After the OmniAb Distribution, we do not beneficially own any shares of common stock in OmniAb and no longer consolidate OmniAb into our financial results for periods ending after November 1, 2022.
Discontinued operations
In connection with the OmniAb Merger, the Company determined its OmniAb Business qualified for discontinued operations accounting treatment in accordance with ASC 205-20. We recognized a $1.7 million tax provision adjustment related to deferred taxes during the year ended December 31, 2023 that was attributable to the discontinued operations. The following table summarizes revenue and expenses of the discontinued operations for the year ended December 31, 2022 (in thousands):
Year Ended December 31,
2022
Revenues:
Royalties$1,289 
Contract revenue25,275 
Total revenues26,564 
Operating costs and expenses:
Amortization of intangibles10,847 
Research and development38,466 
General and administrative13,383 
Total operating costs and expenses62,696 
Loss from operations(36,132)
Other income (expense):
Gain from short-term investments— 
Interest expense— 
Other income (expense), net554 
Total other expense, net554 
Loss before income tax(35,578)
Income tax benefit7,436 
Net loss$(28,142)
The following table summarizes the significant non-cash items, capital expenditures of the discontinued operations, and financing activities that are included in the consolidated statements of cash flows for the year ended December 31, 2022 (in thousands):
Year Ended December 31,
2022
Operating activities:
Change in fair value of contingent consideration$(554)
Depreciation and amortization13,218 
Stock-based compensation expense9,404 
Investing activities:
Cash paid for acquisition, net of cash acquired
$— 
Purchase of property, plant and equipment(5,572)
Payments to CVR Holders(960)
Financing activities:
Payments to CVR Holders$(1,545)
Supplemental cash flow disclosures:
Purchases of property, plant and equipment included in accounts payable and accrued expenses$2,310 
v3.25.0.1
Spin-off of OmniAb
 12 Months Ended
Dec. 31, 2024
Discontinued Operations and Disposal Groups [Abstract]  
Spin-off of OmniAb Sale of Pelican Business and Investment in Primrose Bio
On September 18, 2023, we entered into a merger agreement, pursuant to which our subsidiary, Pelican Technology Holdings, Inc. (“Pelican”) became a wholly owned subsidiary of Primrose Bio. Primrose Bio is a private company focused on synthetic biology. Pelican has developed technology related to PET (protein expression technology) and PelicCRM197 (vaccine material), and has property and equipment, as well as leased property in San Diego, CA. As part of the transaction, we received 2,146,957 common shares, 4,278,293 preferred shares and 474,746 restricted shares of Primrose Bio. Simultaneous with the merger, we entered into a Purchase and Sale Agreement with Primrose Bio and contributed $15 million in exchange for 50% of potential development milestones and certain commercial milestones from two contracts previously entered into by Primordial Genetics. In addition, starting January 1, 2025, we will receive 25% of sales revenue of PeliCRM197 above $3 million and 35% of all PeliCRM197 licensing revenue in perpetuity.
We retained contractual relationships utilizing the Pelican Expression Technology, including the commercial royalty rights to Jazz’s Rylaze, Merck’s Vaxneuvance and V116 vaccines, Alvogen’s Teriparatide, Serum Institute of India’s vaccine programs, including Pneumosil and MenFive vaccines, among others.
We determined that the sale of Pelican meets the definition of a deconsolidation of a business. Net assets sold together with allocated goodwill and cash consideration paid were as follows (in thousands):
Property and equipment, net$8,250 
Intangible assets19,895 
Other assets717 
Operating lease right-of-use assets8,693 
Finance lease right-of-use assets20 
Accrued liabilities(630)
Deferred revenue(495)
Long-term operating lease liabilities(8,445)
Other liabilities(74)
Net assets sold27,931 
Allocated goodwill4,132 
Cash consideration paid15,000 
$47,063 

Fair value of the consideration received includes the following (in thousands):
Equity method investment$13,706 
Equity securities32,278 
Derivative assets3,200 
$49,184 
Goodwill allocated to the selling business based on the relative fair value of the Pelican business and Ligand that was written off was $4.1 million, resulting in a $2.1 million gain on sale of Pelican recorded to income (loss) from operations for the year ended December 31, 2023.
Transaction costs of $1.2 million were allocated to the equity method investment and equity securities based on the relative fair value.
As described above, we will receive 25% of sales revenue of PeliCRM197 above $3.0 million and 35% of all PeliCRM197 licensing revenue in perpetuity. The considerations were recognized as contingent consideration under the loss recovery model and they will be measured based on the gain contingency model under ASC 450, Contingencies, and thus, will be recognized as the underlying contingencies are resolved.
In addition, we will receive 50% of potential development milestones and certain commercial milestones from two contracts previously entered into by Primordial Genetics. The considerations were recognized as derivative assets with a fair value of $3.2 million, at the disposition date, which was included in noncurrent derivative assets in our consolidated balance sheets. They are recognized as derivative assets under ASC 815, Derivatives and Hedging, as they have two underlyings (development and commercial milestones) and (i) the commercial milestones are dependent on the development milestones and (ii) the commercial milestone underlying is not determined to be predominate. The derivative assets are recorded at fair value as of September 18, 2023, and will be marketed to fair value at each reporting period going forward. During the year ended December 31, 2024, an adjustment of $(0.1) million was recorded to market the derivative assets to fair value and was included in fair value adjustments to partner program derivatives in our consolidated statement of operations. During the year ended December 31, 2023, an adjustment of $0.3 million was recorded to market the derivative assets to fair value and was included in other non-operating (expense) income, net in our consolidated statement of operations. For additional information, see “Note (8), Fair Value Measurement” and “Note (7), Balance Sheet Account Details”.
Investments in Primrose Bio
We apply the equity method to investments in common stock and to other investments in entities that have risk and reward characteristics that are substantially similar to an investment in the investee’s common stock. Since the preferred stock and restricted share investment in Primrose Bio has a substantive liquidation preference, it is not substantially similar to the common stock investment and is therefore recorded as an equity security under ASC 321, Investments - Equity Securities.
We account for our common stock investment in Primrose Bio under the equity method as we have the ability to exercise significant influence over Primrose Bio's operating and financial results. In applying the equity method, we record the investment at fair value. Our proportionate share of net loss of Primrose Bio is recorded in our consolidated statements of operations. Our equity method investment is reviewed for indicators of impairment at each reporting period and is written down to fair value if there is evidence of a loss in value that is other-than-temporary. In June 2024, Primrose Bio received an equity
investment from an equity firm. In July 2024, Primrose Bio raised additional funds from another equity firm. As a result, we recognized an impairment loss on our equity method investment in the amount of $5.8 million during the year ended December 31, 2024. There was no impairment to our equity method investment during the year ended December 31, 2023. Our share of the net loss of Primrose Bio for the years ended December 31, 2024 and 2023 was $7.0 million and $1.8 million, respectively, which reduced Ligand's equity method investment accordingly. Any income or loss from our equity method investment (including the impairment) is presented in other non-operating (expense) income, net in our consolidated statements of operations.
We determined that the Series A preferred stock and reserve stock investments in Primrose Bio did not have a readily determinable fair value and therefore elected the measurement alternative in ASC 321 to subsequently record the investments at cost, less any impairments, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer. When fair value becomes determinable, from observable price changes in orderly transactions, our investments will be marked to fair value. Our investments in Series A preferred stock and reserve stock have been reduced by $25.8 million during the year ended December 31, 2024 in connection with the above mentioned equity funding received by Primrose Bio in June and July 2024. There were no no observable price changes or impairment to our investments in Series A preferred stock and reserve stock during the year ended December 31, 2023. Any income or loss from our investments in Series A preferred stock and reserve stock (including the impairment) is presented in other non-operating (expense) income, net in our consolidated statements of operations.
Former President and Chief Operating Officer Matt Korenberg served as a board member of Primrose Bio beginning in the fourth quarter of 2023. His employment with Ligand concluded in October 2024, after which Lauren Hay, Vice President of Strategic Planning & Investment Analytics, succeeded him as a board member of Primrose Bio.
Spin-off of OmniAb
On March 23, 2022, we entered into the OmniAb Separation and Distribution Agreement to separate our OmniAb Business and the OmniAb Merger Agreement, pursuant to which Merger Sub would merge with and into OmniAb, with OmniAb continuing as the surviving corporation and wholly owned subsidiary of New OmniAb following the effectiveness of such merger, resulting in New OmniAb’s acquisition of our OmniAb Business, in a Reverse Morris Trust transaction (collectively, the “OmniAb Transactions”).
After the final closing date of the OmniAb Transactions on November 1, 2022, the historical financial results of OmniAb have been reflected in our consolidated financial statements as discontinued operations under GAAP for all periods presented through the date of the OmniAb Distribution. Pursuant to the OmniAb Separation and Distribution Agreement, Ligand contributed to OmniAb cash and certain specific assets and liabilities constituting the OmniAb Business. Pursuant to the OmniAb Distribution, Ligand distributed on a pro rata basis to its stockholders as of October 26, 2022 shares of the common stock of OmniAb representing 100% of Ligand’s interest in OmniAb. Immediately following the OmniAb Distribution, Merger Sub merged with and into OmniAb, with OmniAb continuing as the surviving company in the OmniAb Merger and as a wholly owned subsidiary of New OmniAb. The entire transaction was completed on November 1, 2022, and following the OmniAb Merger, New OmniAb is an independent, publicly traded company whose common stock trades on NASDAQ under the symbol “OABI.” After the OmniAb Distribution, we do not beneficially own any shares of common stock in OmniAb and no longer consolidate OmniAb into our financial results for periods ending after November 1, 2022.
Discontinued operations
In connection with the OmniAb Merger, the Company determined its OmniAb Business qualified for discontinued operations accounting treatment in accordance with ASC 205-20. We recognized a $1.7 million tax provision adjustment related to deferred taxes during the year ended December 31, 2023 that was attributable to the discontinued operations. The following table summarizes revenue and expenses of the discontinued operations for the year ended December 31, 2022 (in thousands):
Year Ended December 31,
2022
Revenues:
Royalties$1,289 
Contract revenue25,275 
Total revenues26,564 
Operating costs and expenses:
Amortization of intangibles10,847 
Research and development38,466 
General and administrative13,383 
Total operating costs and expenses62,696 
Loss from operations(36,132)
Other income (expense):
Gain from short-term investments— 
Interest expense— 
Other income (expense), net554 
Total other expense, net554 
Loss before income tax(35,578)
Income tax benefit7,436 
Net loss$(28,142)
The following table summarizes the significant non-cash items, capital expenditures of the discontinued operations, and financing activities that are included in the consolidated statements of cash flows for the year ended December 31, 2022 (in thousands):
Year Ended December 31,
2022
Operating activities:
Change in fair value of contingent consideration$(554)
Depreciation and amortization13,218 
Stock-based compensation expense9,404 
Investing activities:
Cash paid for acquisition, net of cash acquired
$— 
Purchase of property, plant and equipment(5,572)
Payments to CVR Holders(960)
Financing activities:
Payments to CVR Holders$(1,545)
Supplemental cash flow disclosures:
Purchases of property, plant and equipment included in accounts payable and accrued expenses$2,310 
v3.25.0.1
Financial Royalty Assets, net (formerly known as Commercial License Rights)
 12 Months Ended
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Financial Royalty Assets, net (formerly known as Commercial License Rights) Financial Royalty Assets, net (formerly known as Commercial License Rights)
As of December 31, 2024 and 2023, financial royalty assets consist of the following (in thousands):
December 31, 2024December 31, 2023
Gross carrying value(2)
Allowance (1)
Net carrying value (2)
Gross carrying value
Allowance (1)
Net carrying value
Qarziba
$105,329 $(484)$104,845 $— $— $— 
Agenus (Bot/Bal)40,815 (408)40,407 — — — 
Tolerance Therapeutics (Tzield)25,613 (101)25,512 25,810 (101)25,709 
Ensifentrine inventors15,969 (157)15,812 — — — 
Elutia (CorMatrix)9,418 (2,268)7,150 13,304 (7,490)5,814 
InvIOs1,238 (62)1,176 — — — 
Selexis205 (58)147 940 (179)761 
Ovid (Soticlestat)— — — 30,310 (303)30,007 
Total financial royalty assets, net$198,587 $(3,538)$195,049 $70,364 $(8,073)$62,291 
(1) The amounts of allowance include accumulated allowance for changes in expected cash flows and current expected credit losses.
(2) The amounts include $10.0 million current portion of financial royalty assets which represents an estimation for current quarter royalty receipts that are collected during the subsequent quarter. This portion is presented in other current assets on our consolidated balance sheet as of December 31, 2024.
Financial royalty assets represent a portfolio of future milestone and royalty payment rights acquired in the Apeiron Acquisition in July 2024, from Agenus in May 2024, Selexis, S.A. (“Selexis”) in April 2013 and May 2015, CorMatrix Cardiovascular, Inc. (“CorMatrix”) in May 2016, which was later acquired by Aziyo (Aziyo changed its corporate name to Elutia Inc. (“Elutia”) in September 2023) in 2017, Ovid Therapeutics Inc. (“Ovid”) in October 2023, Tolerance Therapeutics, Inc. (“Tolerance Therapeutics”) in November 2023, and from certain ensifentrine inventors in March and August 2024.
During the year ended December 31, 2024, we recorded a $30.3 million impairment loss for Ovid (Soticlestat) financial royalty asset and a $0.3 million impairment loss for Selexis financial royalty asset. During the year ended December 31, 2023, we recorded a $0.9 million impairment loss for Selexis financial royalty asset as a result of reduced programs.
Apeiron Financial Royalty Assets
As discussed in “Note (3), Acquisitions”, we acquired certain financial royalty assets within the Apeiron Acquisition, including Qarziba and certain InvIOs programs, recorded at $104.9 million and $1.3 million, respectively as of Apeiron Acquisition date. As Qarziba is a commercial phase program, we are able to reasonably estimate future cash flows and, as such, we recognized income from Qarziba financial royalty assets starting from the Apeiron Acquisition effective date. We accounted for InvIOs financial royalty assets using the non-accrual method until we are able to reliably estimate future cash flows.
Tzield Agreement
In November 2023, we acquired Tolerance Therapeutics for $20 million in cash. Tolerance Therapeutics is a holding company, owned by the inventors of Tzield (teplizumab), and is owed a royalty of less than 1% on worldwide net sales of Tzield. Tzield is marketed by Sanofi, starting in 2023. For tax purposes this transaction was treated as a stock deal, so there is no step-up in basis and tax attributes. Therefore, during the year ended December 31, 2024, a deferred tax liability (DTL) of $5.5 million was recognized on the book basis and tax basis difference and recorded to the book value of the Tolerance Therapeutics’ financial royalty asset. Due to the early stages of Tzield's commercialization, management has placed the investment on the non-accrual method until we are able to reliably estimate future cash flows.
Ensifentrine Inventors Agreements
In March and August 2024, we acquired future milestone and royalty rights related to ensifentrine from certain ensifentrine inventors for a total of $3.8 million and $13.6 million, respectively. On June 26, 2024, Verona Pharma plc received FDA approval for ensifentrine for the maintenance treatment of patients with chronic obstructive pulmonary disease (“COPD”). During the third quarter of 2024, Verona started commercial sales of ensifentrine (marketed as Ohtuvayre) in the U.S. Due to the early stages of Ohtuvayre's commercialization, management has placed the investment on the non-accrual method until we are able to reliably estimate future cash flows.
Elutia Agreement
In 2016, Ligand entered into a purchase agreement to acquire certain financial royalty assets from CorMatrix. In 2017, CorMatrix sold its marketed products to Elutia where Elutia assumed the Ligand royalty obligation. In 2017, we amended the
terms of the royalty agreement with Elutia where we received $10 million to buydown the royalty rates on the products CorMatrix sold to Elutia (the “CorMatrix Asset Sale”). Per the amended agreement with Elutia, we will receive a 5% royalty, with certain annual minimum payments, on the products Elutia acquired in the CorMatrix Asset Sale and up to $10 million of milestones tied to cumulative net sales of these products. The royalty agreement will terminate on May 31, 2027.
During 2023, due to Elutia's nonpayment of the minimum payments under the amended royalty agreement over several quarters, we placed the Elutia asset on the non-accrual method. In January 2024, we executed an amendment to our agreement with Elutia which will allow us to reliably estimate future cash flows. As such, the Elutia asset was switched from the non-accrual method to the effective interest method during the first quarter of 2024. We further considered the current and expected future economic and market conditions, current company performance and recent payments received from Elutia. During the years ended December 31, 2024 and 2023, we recorded a reduction of $5.2 million and an increase of $3.2 million, respectively, to Elutia allowance of expected credit loss. The credit loss adjustments were included in general and administrative expense in our consolidated statements of operations.
Soticlestat Agreement
In October 2023, we made an investment of $30 million to acquire a 13% portion of the royalties and milestones owed to Ovid Therapeutics related to the potential approval and commercialization of soticlestat.
In June 2024, Takeda announced topline results of the phase 3 clinical trial of soticlestat, narrowly missing its primary endpoint to reduce convulsive seizure frequency compared to placebo in patients with Dravet syndrome, and missing its primary endpoint to reduce major motor drop seizure frequency compared to a placebo in patients with Lennox-Gastaut syndrome. In January 2025, Takeda announced its decision to discontinue its soticlestat program. As a result, in the year ended December 31, 2024, we recognized a full impairment of the soticlestat financial royalty asset.
v3.25.0.1
Balance Sheet Account Details
 12 Months Ended
Dec. 31, 2024
Other Balance Sheet Details [Abstract]  
Balance Sheet Account Details Balance Sheet Account Details
Short-term Investments
Excluding our investments in Viking, the following table summarizes the various investment categories at December 31, 2024 and 2023 (in thousands):
Cost
Gross unrealized
gains
Gross unrealized
losses
Estimated
fair value
December 31, 2024
Short-term investments
U.S. Treasuries$78,442 $19 $(13)$78,448 
Commercial paper23,483 5 (6)23,482 
Certificates of Deposit22,812 12 (4)22,820 
Corporate notes/bonds15,496 21 (8)15,509 
Corporate equity securities9,954 — (6,595)3,359 
$150,187 $57 $(6,626)$143,618 
December 31, 2023
Short-term investments
Bond fund$63,763 $— $(537)$63,226 
Certificates of Deposit17,165 12 (1)17,176 
Corporate notes/bonds14,850 40 (2)14,888 
Commercial paper 11,578 9 (1)11,586 
U.S. Treasuries6,736 18 (3)6,751 
Municipal bonds1,007 — (4)1,003 
Corporate equity securities5,775 — (5,235)540 
$120,874 $79 $(5,783)$115,170 
Gain (loss) from short-term investments on our consolidated statements of operations includes both realized and unrealized gain (loss) from our short-term investments in public equity and warrant securities, and realized gain (loss) from available-for-sale debt securities.
The following table summarizes our available-for-sale debt securities by contractual maturity (in thousands):
December 31, 2024
Amortized CostFair Value
Within one year$127,296 $127,331 
After one year through five years12,937 12,928 
     Total$140,233 $140,259 
The following table summarizes our available-for-sale debt securities in an unrealized loss position (in thousands):
Less than 12 months12 months or greaterTotal
Gross
Unrealized
Losses		Estimated
Fair Value		Gross
Unrealized
Losses		Estimated
Fair Value		Gross
Unrealized
Losses		Estimated
Fair Value
December 31, 2024
Certificates of Deposit$(4)$6,195 $— $— $(4)$6,195 
Corporate notes/bonds(1)866 (7)3,026 (8)3,892 
Commercial paper(6)9,344 — — (6)9,344 
U.S. Treasuries(4)29,965 (9)4,764 (13)34,729 
     Total$(15)$46,370 $(16)$7,790 $(31)$54,160 
December 31, 2023
Certificates of Deposit$(1)$4,175 $— $— $(1)$4,175 
Corporate notes/bonds(1)1,410 (1)1,447 (2)2,857 
Commercial paper(4)10,222 — — (4)10,222 
Municipal bonds(4)1,004 — — (4)1,004 
U.S. Treasuries— 998 (3)1,502 (3)2,500 
     Total$(10)$17,809 $(4)$2,949 $(14)$20,758 

Our investment policy is capital preservation and we only invested in U.S.-dollar denominated investments. We held a total of 45 securities which were in an unrealized loss position with a total of $0.03 million unrealized losses as of December 31, 2024. We believe that we will collect the principal and interest due on our debt securities that have an amortized cost in excess of fair value. The unrealized losses are largely due to changes in interest rates and not to unfavorable changes in the credit quality associated with these securities that impacted our assessment on collectability of principal and interest. In July 2024, we sold certain securities before the recovery of the amortized cost basis to fund the Apeiron Acquisition. Accordingly, we wrote down the amortized cost of $0.05 million during the second quarter of 2024. We do not intend to sell these securities and it is unlikely that we will be required to sell these securities before the recovery of the amortized cost basis as of December 31, 2024. Accordingly, there was no credit loss recognized for the year ended December 31, 2024. There was no credit losses recognized for the year ended December 31, 2023.
Short-term Investments: Investment in Viking
We held 1.0 million shares of Viking common stock as of December 31, 2024, and we account for it as an investment in available-for-sale equity securities, which is measured at fair value, with changes in fair value recognized in net income.
As of December 31, 2024 and December 31, 2023, our investment in Viking was $40.2 million and $32.2 million, respectively, and was included in short-term investments on the consolidated balance sheets. During the year ended December 31, 2024, we sold 0.7 million shares of Viking common stock and recognized a total realized gain of $60.0 million. During the year ended December 31, 2023, we sold 5.0 million shares of Viking common stock and recognized a total realized gain of $44.4 million. There were no sales of Viking common stock during the year ended December 31, 2022.
Property and equipment, net
Property and equipment are stated at cost and consist of the following (in thousands):
December 31,
20242023
Lab and office equipment$6,868 $7,068 
Leasehold improvements10,464 10,363 
Computer equipment and software1,850 716 
Construction in progress4,219 4,115 
23,401 22,262 
Less accumulated depreciation and amortization(8,268)(6,655)
$15,133 $15,607 
Depreciation of equipment is computed using the straight-line method over the estimated useful lives of the assets which ranges from one to nine years. Leasehold improvements are amortized using the straight-line method over their estimated useful lives or their related lease term, whichever is shorter. Depreciation expense of $2.3 million, $2.9 million, and $3.8 million was recognized for the years ended December 31, 2024, 2023, and 2022, respectively, and was included in general and administrative and research and development expenses in our consolidated statements of operations.
Goodwill and intangible assets, net
Goodwill and identifiable intangible assets consist of the following (in thousands):
December 31,
20242023
Indefinite-lived intangible assets
     Goodwill$105,250 $103,370 
Definite-lived intangible assets
     Completed technology39,249 42,911 
          Less: Accumulated amortization(19,710)(20,894)
     Trade name2,642 2,642 
          Less: Accumulated amortization(1,843)(1,710)
     Customer relationships29,600 29,600 
          Less: Accumulated amortization(20,652)(19,161)
     Contractual relationships360,000 360,000 
Less: Accumulated amortization(122,638)(93,782)
Total goodwill and other identifiable intangible assets, net$371,898 $402,976 
A change in a goodwill carrying value for the year ended December 31, 2024, relates to finalization of Novan Acquisition purchase accounting in the first quarter of 2024. Amortization of finite-lived intangible assets is computed using the straight-line method over the estimated useful life of the asset of up to 20 years. Amortization expense of $33.0 million, $33.7 million, and $34.2 million were recognized for the years ended December 31, 2024, 2023, and 2022, respectively. Estimated amortization expense for the years ending December 31, 2025 through 2029 is $32.7 million per year. For each of the years ended December 31, 2024, 2023, and 2022, there was no impairment of intangible assets with finite lives.
Derivative Assets
Derivative assets consist of the following (in thousands):
December 31,
20242023
Primrose mRNA$3,451 $3,531 
Agenus Partner Programs6,326 — 
Agenus Warrant (5 years contractual term)
806 — 
     Total noncurrent derivative assets$10,583 $3,531 
A change in the fair value of Agenus Partner Programs and Primrose mRNA derivative that amounted to $(15.0) million and $(0.1) million, respectively, for the year ended December 31, 2024, was included in fair value adjustments to partner program derivatives in the consolidated statement of operations. A net increase in fair value of Viking Share Collar and Viking Share Put that amounted to $7.1 million for the year ended December 31, 2024, was recognized in gain from short-term investments in the consolidated statements of operations. A change in the fair value of other derivatives that amounted to $(12.1) million for the year ended December 31, 2024, was recognized in other non-operating (expense) income, net in the consolidated statements of operations. We acquired the Primrose mRNA derivative on September 18, 2023 with the sale of Pelican business and investment in Primrose Bio transaction. A change in the fair value of the Primrose mRNA derivative that amounted to $0.3 million during the year ended December 31, 2023 was included in the consolidated statements of operations. We did not have any other derivative instruments during the years ended December 31, 2023 and 2022.
Other Investments
Other investments consist of the following (in thousands):
December 31,
20242023
Equity securities in Primrose Bio$6,712 $32,726 
InvIOs investment4,196 — 
Neuritek warrants— 3,000 
Palvella Series C preferred stock— 1,000 
     Total other investments$10,908 $36,726 
During the third quarter of 2024, we recognized a full impairment for our investment in Neuritek warrants.
On December 13, 2024, Palvella Therapeutics, Inc. (“Palvella”) announced the completion of its previously announced merger with Pieris Pharmaceuticals, Inc. (“Pieris”). The combined company will operate under the name Palvella Therapeutics, Inc., and its shares are expected to begin trading on the Nasdaq Capital Market on December 16, 2024, under the ticker symbol “PVLA”. In conjunction with the transaction, the Series C Preferred Shares we held were converted to common shares using an exchange ratio of approximately 0.3095, converting the 189,112 Series C preferred shares into 58,524 common shares. We account for the Palvella common shares as a short-term investment included in our consolidated balance sheet.
Other Assets and Other Current Assets
Other assets include economic rights related to the 2023 expansion of our strategic partnership with Palvella to accelerate Phase 3 development of Qtorin rapamycin for the treatment of Microcystic Lymphatic Malformations (“Microcystic LM”). According to the terms of the second amendment to our development funding and royalties agreement with Palvella (the “Palvella Second Amendment”), Palvella received an upfront payment of $5 million from Ligand. In return for the upfront payment, among other contractual changes, the tiered royalty payable by Palvella to Ligand was increased to between 8.0% and 9.8% based on annual aggregate worldwide net sales of Qtorin rapamycin. We are not obligated to provide additional funding to Palvella for development or commercialization of Qtorin.
We determined the economic rights related to Palvella should be characterized as a funded research and development arrangement, because the contract designated the funds usage for research and development activities, and thus we account for them in accordance with ASC 730-20, Research and Development Arrangement. We reduce our asset as the funds are expended by Palvella. As of December 31, 2024, of the $5 million upfront funding related to the Palvella Second Amendment, $1.2 million of the funding to Palvella was expended. Our CEO and director, Todd Davis, is a director of Palvella. Mr. Davis recused himself from both board's consideration of the agreement between us and Palvella, including any financial analysis, the terms of the Palvella Second Amendment and the vote to approve the Palvella Second Amendment and the related transactions.
In June 2024, we funded Palvella $2.5 million in exchange for a convertible note with a maturity of three years, which is included in other assets in the consolidated balance sheets. In conjunction with Pavella's merger with Pieris as discussed above, the convertible note automatically converted into Pavella common shares. The $2.6 million principal and interest converted into 184,595 shares, using a conversion price of $13.9965 per share. We account for the Palvella common shares as a short-term investment in our consolidated balance sheet.
Other current assets primarily include $10.0 million current portion of financial royalty assets (disclosed in “Note (6), Financial Royalty Assets, net (formerly known as Commercial License Rights)”), and $4.5 million inventory (raw materials and work in process related to the manufacturing of finished goods) for the preparation of commercial supplies of ZELSUVMI by Pelthos Therapeutics, a wholly owned subsidiary of Ligand. For additional information on ZELSUVMI, see “Note (3), Acquisitions”. Below is a summary of the ZELSUVMI related inventory included in other current assets (in thousands):
December 31,
20242023
Work in process$3,923 $195 
Raw materials603 420 
Total Pelthos inventory in other current assets$4,526 $615 
Accrued liabilities
Accrued liabilities consist of the following (in thousands):
 December 31,
 20242023
Royalties owed to third parties$6,500 $900 
Compensation5,522 4,682 
UK value-added tax5,159 — 
Professional fees4,858 2,394 
Subcontractor1,756 1,756 
Customer deposit 621 621 
Supplier— 303 
Amounts owed to former licensees— 45 
Other3,490 1,766 
Total accrued liabilities$27,906 $12,467 
Contingent liabilities
The following table summarizes roll-forward of contingent liabilities as of December 31, 2024 and 2023 (in thousands):
December 31, 2022
PaymentsFair Value Adjustment
December 31, 2023
PaymentsFair Value Adjustment
December 31, 2024
Cydex$84 $(50)$286 $320 $(200)$263 $383 
Metabasis3,429 — (551)2,878 — 420 3,298 
Total $3,513 $(50)$(265)$3,198 $(200)$683 $3,681 

Other long-term liabilities
Other long-term liabilities consist of the following (in thousands):
 December 31,
 20242023
Novan (Pelthos) contract liability$15,938 $13,700 
Unrecognized tax benefits14,160 14,039 
Other long-term liabilities65 19 
Total other long-term liabilities$30,163 $27,758 
v3.25.0.1
Fair Value Measurement
 12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurement Fair Value Measurement
We measure certain financial assets and liabilities at fair value on a recurring basis. Fair value is a market-based measurement that should be determined using assumptions that market participants would use in pricing an asset or liability. We establish a three-level hierarchy to prioritize the inputs used in measuring fair value. The levels are described in the below with level 1 having the highest priority and level 3 having the lowest:
Level 1 - Observable inputs such as quoted prices in active markets
Level 2 - Inputs other than the quoted prices in active markets that are observable either directly or indirectly
Level 3 - Unobservable inputs in which there is little or no market data, which require the Company to develop its own assumptions
The following table provides a summary of the assets and liabilities that are measured at fair value on a recurring basis as of December 31, 2024 and 2023 (in thousands):
Fair Value Measurements at Reporting Date Using
December 31, 2024
Quoted Prices in
Active Markets
for Identical
Assets
Significant
Other
Observable
Inputs
Significant
Unobservable
Inputs
Total(Level 1)(Level 2)(Level 3)
Assets:
Short-term investments, excluding Viking(1)
$143,618 $81,807 $61,811 $— 
Investment in Viking common stock40,240 40,240 — — 
Derivative assets(2)
10,583 — — 10,583 
     Total assets$194,441 $122,047 $61,811 $10,583 
Liabilities:
Contingent liabilities - CyDex$383 $— $— $383 
Contingent liabilities - Metabasis(3)
3,298 — 3,298 — 
     Total liabilities$3,681 $— $3,298 $383 


Fair Value Measurements at Reporting Date Using
December 31, 2023
Quoted Prices in
Active Markets
for Identical
Assets
Significant
Other
Observable
Inputs
Significant
Unobservable
Inputs
Total(Level 1)(Level 2)(Level 3)
Assets:
Short-term investments, excluding Viking (1)
$115,170 $7,291 $107,879 $— 
Investment in Viking common stock32,185 32,185 — — 
Derivative assets(2)
3,531 — — 3,531 
     Total assets$150,886 $39,476 $107,879 $3,531 
Liabilities:
Contingent liabilities - CyDex$320 $— $— $320 
Contingent liabilities - Metabasis(3)
2,878 — 2,878 — 
     Total liabilities$3,198 $— $2,878 $320 

(1) Excluding our investment in Viking, corporate equity securities, and US government securities, our short-term investments in marketable debt and equity securities are classified as available-for-sale securities based on management's intentions and are at level 2 of the fair value hierarchy, as these investment securities are valued based upon quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Short-term investments in bond funds are valued at their net asset value (NAV) on the last day of the period. We have classified marketable securities with original maturities of greater than one year as short-term investments based upon our ability and intent to use any and all of those marketable securities to satisfy the liquidity needs of our current operations. In addition, we had investment in warrants resulting from Seelos Therapeutics Inc. milestone payments that were settled in shares during the first quarter of 2019 and were at level 3 of the fair value hierarchy, based on Black-Scholes value estimated by management on the last day of the period. This investment in warrants expired in January 2024.
(2) Derivative assets include instruments used for risk-management purposes, and other instruments. Derivative assets which are not used for risk management purposes include: (a) acquired rights in future milestone and royalty payments from Agenus Partnered Programs, (b) Agenus Warrant, (c) Upsize Option, (d) Viking Share Collar (e) and rights to receive from Primrose Bio 50% of milestones on two contracts previously entered into by Primordial Genetics. The considerations were recognized as derivative assets included under current derivative assets and noncurrent derivative assets in our consolidated balance sheet. They are recognized as derivative assets under ASC 815, Derivatives and Hedging. The fair value of the Agenus Partnered Programs and the Primrose Bio derivative assets was determined using a discounted cash flow approach, utilizing the mostly-likely cash flows which considered the probability of success for the underlying clinical programs. The discount rate used contemplates the underlying credit and business risk of the partnered programs. At December 31, 2024, the discount rates used range between 15% and 28%. At December 31, 2023, the discount rate used was 25%. The fair value of the Agenus Warrant was determined using a Black-Scholes-Merton model. The fair value of the Upsize Option was determined using a binomial option pricing model.
(3) In connection with our acquisition of Metabasis in January 2010, we issued Metabasis stockholders four tradable CVRs, one CVR from each of four respective series of CVR, for each Metabasis share. The CVRs entitle Metabasis stockholders to cash payments as frequently as every six months as cash is received by us from proceeds from the sale or partnering of any of the Metabasis drug development programs, among other triggering events. The liability for the CVRs is determined using quoted prices in a market that is not active for the underlying CVR. The carrying amount of the liability may fluctuate
significantly based upon quoted market prices and actual amounts paid under the agreements may be materially different than the carrying amount of the liability. Several of the Metabasis drug development programs have been outlicensed to Viking, including VK2809. VK2809 is a novel selective TR-β agonist with potential in multiple indications, including hypercholesterolemia, dyslipidemia, NASH, and X-ALD. Under the terms of the agreement with Viking, we may be entitled to up to $375 million of development, regulatory and commercial milestones and tiered royalties on potential future sales including a $10 million payment upon initiation of a Phase 3 clinical trial.
A reconciliation of the level 3 financial instruments as of December 31, 2024 is as follows (in thousands):
Assets
Fair value of level 3 financial instruments as of December 31, 2023
$3,531 
Additions to derivative assets35,888 
Fair value adjustments to derivative assets(20,010)
Exercise of derivative assets(8,826)
Fair value of level 3 financial instruments as of December 31, 2024
$10,583 
Liabilities
Fair value of level 3 financial instruments as of December 31, 2023
$320 
Payments to CVR holders and other contingent payments (200)
Fair value adjustments to contingent liabilities263 
Fair value of level 3 financial instruments as of December 31, 2024
$383 

A reconciliation of the level 3 financial instruments as of December 31, 2023 is as follows (in thousands):
Assets
Fair value of level 3 financial instruments as of December 31, 2022
$135 
Fair value adjustments to equity security warrants(135)
Additions to derivative assets3,281 
Fair value adjustments to derivative assets250 
Fair value of level 3 financial instruments as of December 31, 2023
$3,531 
Liabilities
Fair value of level 3 financial instruments as of December 31, 2022
$84 
Payments to CVR holders and other contingency payments(50)
Fair value adjustments to contingent liabilities286 
Fair value of level 3 financial instruments as of December 31, 2023
$320 

Assets Measured on a Non-Recurring Basis
We apply fair value techniques on a non-recurring basis associated with valuing potential impairment losses related to our goodwill, intangible assets with estimated useful lives and long-lived assets.
We evaluate goodwill annually for impairment and whenever circumstances occur indicating that goodwill might be impaired. We determine the fair value of our reporting unit based on a combination of inputs, including the market capitalization of Ligand, as well as Level 3 inputs such as discounted cash flows, which are not observable from the market, directly or indirectly.
We evaluate intangible assets with estimated useful lives whenever circumstances occur indicating that intangible assets may not be recoverable. An impairment evaluation is based on an undiscounted cash flow analysis at the lowest level at which cash flows of the long-lived assets are largely independent of other groups of assets and liabilities.
There was no impairment of our goodwill, intangible assets, or long-lived assets recorded during the years ended December 31, 2024 and 2023. Other than the finance lease equipment discussed in “Note (9), Leases”, there was no impairment of our goodwill, intangible assets, or long-lived assets recorded during the year ended and December 31, 2022.
Fair Value of Financial Instruments
Our cash and cash equivalents, accounts receivable, other current assets, financial royalty assets, accounts payable, accrued liabilities, deferred revenue, current operating lease liabilities, current finance lease liabilities and Novan (Pelthos) other long-term liabilities are financial instruments and are recorded at cost in the consolidated balance sheets. The estimated
fair value of the Novan (Pelthos) other long-term liabilities is $19.1 million compared to a carrying value of $15.9 million. The estimated fair value of the remaining financial instruments approximates their carrying value.
Financial Assets Not Measured at Fair Value
Financial royalty assets are measured and carried on the balance sheet at amortized cost using the effective interest method or on a non-accrual basis. Management calculates the fair value of financial royalty assets using a forecasted royalty receipts. The projected future cash flows derive from royalty payments and milestones, then discounted using appropriate individual discount rates. The fair value of financial royalty assets and other economic rights assets is classified as Level 3 within the fair value hierarchy since it is determined based upon inputs that are both significant and unobservable. The estimated fair value and related carrying values of financial royalty assets as of December 31, 2024 were $196.6 million and $195.0 million, respectively. The estimated fair value and related carrying value of the financial royalty assets as of December 31, 2023 were $75.9 million and $62.3 million, respectively. To determine the fair value of long-term financial royalty assets, we estimated future underlying product sales, applied a probability of technical and regulatory success for development stage programs, estimated a timeline for any development and regulatory milestones, and applied a discount rate based on the level of partner execution and commercialization risk, in the range of 15-30% and 10-45% as of December 31, 2024, and 2023, respectively.
v3.25.0.1
Leases
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Leases Leases
Finance lease
In May 2020 and January 2021, we entered into an agreement and the first amendment with Hovione, our third-party manufacturer, to increase our manufacturing of Captisol, respectively. The agreements are considered to include an embedded finance lease under ASC 842, Leases, as it provides the Company the right to use the underlying equipment to exclusively manufacture Captisol. As of December 31, 2021, we had fully paid consideration of $69.1 million for prepaid inventory and capacity ramp-up fee. We allocated consideration in the agreements between lease and non-lease components using relative standalone prices. Since the inception of the agreements, we have allocated $50.2 million of the consideration paid to the non-lease component which is accounted for as prepaid inventory and being amortized to cost of Captisol based on the usage. The remaining balance of $18.9 million was recognized as a right of use asset.
As of December 31, 2022, given the COVID status, our forecast for COVID-related Captisol had been significantly reduced, which triggered an indicator of impairment of the right of use asset. We performed a recoverability test at the asset group level by comparing the sum of the estimated undiscounted future cash flows attributable to the asset group to its carrying value and identified the asset was impaired. We recorded a $9.8 million of impairment charge based on the fair value of the right of use asset which has been recognized in cost of Captisol in our consolidated statement of operations for the year ended December 31, 2022. As of December 31, 2022, the remaining right of use asset balance was $4.0 million which will be amortized straight-line over the remaining 6 years lease term. During the years ended December 31, 2024 and 2023, no impairment to this asset group was recorded as there were no indicators of impairment. As of December 31, 2024 and 2023, the remaining right of use asset balance is $2.7 million and $3.4 million, respectively.
Operating lease
We lease certain office facilities and equipment primarily under various operating leases. Our operating leases have remaining contractual terms up to eight years, some of which include options to extend the leases for up to five years. Our lease agreements do not contain any material residual value guarantees, material restrictive covenants, or material termination options. Our operating lease costs are primarily related to facility leases for administration offices and research and development facilities.
Lease assets and lease liabilities are recognized at the commencement of an arrangement where it is determined at inception that a lease exists. Lease assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. These assets and liabilities are initially recognized based on the present value of lease payments over the lease term calculated using our incremental borrowing rate generally applicable to the location of the lease asset, unless the implicit rate is readily determinable. Lease assets also include any upfront lease payments made and lease incentives. Lease terms include options to extend or terminate the lease when it is reasonably certain that those options will be exercised.
In addition to base rent, certain of our operating leases require variable payments, such as insurance and common area maintenance. These variable lease costs, other than those dependent upon an index or rate, are expensed when the obligation for those payments is incurred. Leases with an initial term of twelve months or less are not recorded on the consolidated balance sheet, and the expense for these short-term leases and for operating leases is recognized on a straight-line basis over the lease term.
The depreciable life of lease assets and leasehold improvements is limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise.
During the year ended December 31, 2024, we entered into lease agreements for our offices located in Boston, Massachusetts, and Jupiter, Florida, which resulted in a $1.6 million and $0.1 million, respectively, increase in both operating lease assets and operating lease liabilities at lease commencement. During the year ended December 31, 2023, we entered into an amendment to the lease agreement for our office located in San Diego, California, which resulted in a $1.1 million increase in both operating lease assets and operating lease liabilities at lease commencement.
Operating and finance lease assets and liabilities (in thousands) are as follows:
December 31, 2024December 31, 2023
Assets
Operating lease assets$6,907 $6,062 
Finance lease assets2,766 3,393 
Total lease assets$9,673 $9,455 
Liabilities
Current operating lease liabilities$1,266 $403 
Current finance lease liabilities24 7 
1,290 410 
Long-term operating lease liabilities5,815 5,755 
Long-term finance lease liabilities49 19 
Total lease liabilities $7,154 $6,184 

Maturity of operating and finance lease liabilities as of December 31, 2024 are as follows (in thousands):
Maturity DatesOperating LeasesFinance
Leases
2025$1,537 $27 
20261,637 27 
20271,634 18 
20281,560 9 
20291,109 3 
Thereafter2,005 — 
Total lease payments9,482 84 
Less tenant improvement allowance(418)— 
Less imputed interest(1,983)(11)
Present value of lease liabilities$7,081 $73 

As of December 31, 2024, our operating leases had a weighted-average remaining lease term of 5.8 years and a weighted-average discount rate of 7.5%. As of December 31, 2023, our operating leases had a weighted-average remaining lease term of 7.4 years and a weighted-average discount rate of 7.7%. Cash paid for amounts included in the measurement of operating lease liabilities was $1.3 million and $1.4 million, respectively, for the years ended December 31, 2024 and 2023. Operating lease expense was $1.3 million (net of sublease income of $0.1 million) and $1.4 million (net of sublease income of $0.3 million) for the years ended December 31, 2024 and 2023, respectively.
As of December 31, 2024, our finance leases had a weighted-average remaining lease term of 3.3 years and a weighted-average discount rate of 6.6%. As of December 31, 2023, our finance leases had a weighted-average remaining lease term of 3.4 years and a weighted-average discount rate of 6.8%. We excluded the Hovione equipment lease in the calculation of weighted average remaining lease term and weighted average discount rate because the Hovione lease was fully paid off as of December 31, 2021. Cash paid for amounts included in the measurement of these finance lease liabilities was $0.02 million and $0.05 million, respectively, for the years ended December 31, 2024 and 2023. Finance lease expense was $0.5 million and $0.7 million, respectively, for the years ended December 31, 2024 and 2023.
Leases Leases
Finance lease
In May 2020 and January 2021, we entered into an agreement and the first amendment with Hovione, our third-party manufacturer, to increase our manufacturing of Captisol, respectively. The agreements are considered to include an embedded finance lease under ASC 842, Leases, as it provides the Company the right to use the underlying equipment to exclusively manufacture Captisol. As of December 31, 2021, we had fully paid consideration of $69.1 million for prepaid inventory and capacity ramp-up fee. We allocated consideration in the agreements between lease and non-lease components using relative standalone prices. Since the inception of the agreements, we have allocated $50.2 million of the consideration paid to the non-lease component which is accounted for as prepaid inventory and being amortized to cost of Captisol based on the usage. The remaining balance of $18.9 million was recognized as a right of use asset.
As of December 31, 2022, given the COVID status, our forecast for COVID-related Captisol had been significantly reduced, which triggered an indicator of impairment of the right of use asset. We performed a recoverability test at the asset group level by comparing the sum of the estimated undiscounted future cash flows attributable to the asset group to its carrying value and identified the asset was impaired. We recorded a $9.8 million of impairment charge based on the fair value of the right of use asset which has been recognized in cost of Captisol in our consolidated statement of operations for the year ended December 31, 2022. As of December 31, 2022, the remaining right of use asset balance was $4.0 million which will be amortized straight-line over the remaining 6 years lease term. During the years ended December 31, 2024 and 2023, no impairment to this asset group was recorded as there were no indicators of impairment. As of December 31, 2024 and 2023, the remaining right of use asset balance is $2.7 million and $3.4 million, respectively.
Operating lease
We lease certain office facilities and equipment primarily under various operating leases. Our operating leases have remaining contractual terms up to eight years, some of which include options to extend the leases for up to five years. Our lease agreements do not contain any material residual value guarantees, material restrictive covenants, or material termination options. Our operating lease costs are primarily related to facility leases for administration offices and research and development facilities.
Lease assets and lease liabilities are recognized at the commencement of an arrangement where it is determined at inception that a lease exists. Lease assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. These assets and liabilities are initially recognized based on the present value of lease payments over the lease term calculated using our incremental borrowing rate generally applicable to the location of the lease asset, unless the implicit rate is readily determinable. Lease assets also include any upfront lease payments made and lease incentives. Lease terms include options to extend or terminate the lease when it is reasonably certain that those options will be exercised.
In addition to base rent, certain of our operating leases require variable payments, such as insurance and common area maintenance. These variable lease costs, other than those dependent upon an index or rate, are expensed when the obligation for those payments is incurred. Leases with an initial term of twelve months or less are not recorded on the consolidated balance sheet, and the expense for these short-term leases and for operating leases is recognized on a straight-line basis over the lease term.
The depreciable life of lease assets and leasehold improvements is limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise.
During the year ended December 31, 2024, we entered into lease agreements for our offices located in Boston, Massachusetts, and Jupiter, Florida, which resulted in a $1.6 million and $0.1 million, respectively, increase in both operating lease assets and operating lease liabilities at lease commencement. During the year ended December 31, 2023, we entered into an amendment to the lease agreement for our office located in San Diego, California, which resulted in a $1.1 million increase in both operating lease assets and operating lease liabilities at lease commencement.
Operating and finance lease assets and liabilities (in thousands) are as follows:
December 31, 2024December 31, 2023
Assets
Operating lease assets$6,907 $6,062 
Finance lease assets2,766 3,393 
Total lease assets$9,673 $9,455 
Liabilities
Current operating lease liabilities$1,266 $403 
Current finance lease liabilities24 7 
1,290 410 
Long-term operating lease liabilities5,815 5,755 
Long-term finance lease liabilities49 19 
Total lease liabilities $7,154 $6,184 

Maturity of operating and finance lease liabilities as of December 31, 2024 are as follows (in thousands):
Maturity DatesOperating LeasesFinance
Leases
2025$1,537 $27 
20261,637 27 
20271,634 18 
20281,560 9 
20291,109 3 
Thereafter2,005 — 
Total lease payments9,482 84 
Less tenant improvement allowance(418)— 
Less imputed interest(1,983)(11)
Present value of lease liabilities$7,081 $73 

As of December 31, 2024, our operating leases had a weighted-average remaining lease term of 5.8 years and a weighted-average discount rate of 7.5%. As of December 31, 2023, our operating leases had a weighted-average remaining lease term of 7.4 years and a weighted-average discount rate of 7.7%. Cash paid for amounts included in the measurement of operating lease liabilities was $1.3 million and $1.4 million, respectively, for the years ended December 31, 2024 and 2023. Operating lease expense was $1.3 million (net of sublease income of $0.1 million) and $1.4 million (net of sublease income of $0.3 million) for the years ended December 31, 2024 and 2023, respectively.
As of December 31, 2024, our finance leases had a weighted-average remaining lease term of 3.3 years and a weighted-average discount rate of 6.6%. As of December 31, 2023, our finance leases had a weighted-average remaining lease term of 3.4 years and a weighted-average discount rate of 6.8%. We excluded the Hovione equipment lease in the calculation of weighted average remaining lease term and weighted average discount rate because the Hovione lease was fully paid off as of December 31, 2021. Cash paid for amounts included in the measurement of these finance lease liabilities was $0.02 million and $0.05 million, respectively, for the years ended December 31, 2024 and 2023. Finance lease expense was $0.5 million and $0.7 million, respectively, for the years ended December 31, 2024 and 2023.
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Debt
 12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
Debt Debt
0.75% Convertible Senior Notes due 2023
In May 2018, we issued $750 million aggregate principal amount of 2023 Notes, bearing cash interest at a rate of 0.75% per year, payable semi-annually. The net proceeds from the offering, after deducting the initial purchasers' discount and offering expenses, were approximately $733.1 million.
In connection with the issuance of the 2023 Notes, we incurred $16.9 million of issuance costs, which primarily consisted of underwriting, legal and other professional fees and was being amortized to interest expense using the effective interest method over the five years expected life of the 2023 Notes. On May 15, 2023, the 2023 Notes maturity date, we paid the remaining $76.9 million principal amount and $0.3 million accrued interest in cash. The effective interest rate for the year ended December 31, 2023 was 0.5%. During the year ended December 31, 2023, we recognized a total of $0.6 million in interest expense, including $0.4 million in contractual interest expense and $0.2 million in amortized issuance costs.
During the year ended December 31, 2022, we repurchased $266.4 million in principal amount of the 2023 Notes for $261.4 million in cash, including accrued interest of $0.5 million We accounted for the repurchase as a debt extinguishment, which resulted in a gain of $4.2 million reflected in other non-operating (expense) income, net, in our consolidated statement of operations for the year ended December 31, 2022, and a $1.3 million reduction in debt discount.
Convertible Bond Hedge and Warrant Transactions
In conjunction with the 2023 Notes, in May 2018, we entered into convertible bond hedges and sold warrants covering 3,018,327 shares of our common stock to minimize the impact of potential dilution to our common stock and/or offset the cash payments we are required to make in excess of the principal amount upon conversion of the 2023 Notes. The convertible bond hedges have an exercise price of $206.65 per share and are exercisable when and if the 2023 Notes are converted. We paid $140.3 million for these convertible bond hedges. If upon conversion of the 2023 Notes, the price of our common stock is above the exercise price of the convertible bond hedges, the counterparties will deliver shares of common stock and/or cash with an aggregate value approximately equal to the difference between the price of common stock at the conversion date and the exercise price, multiplied by the number of shares of common stock related to the convertible bond hedge transaction being exercised. The convertible bond hedges and warrants described below are separate transactions entered into by us and are not part of the terms of the 2023 Notes. Holders of the 2023 Notes and warrants did not have any rights with respect to the convertible bond hedges.
Concurrently with the convertible bond hedge transactions, we entered into warrant transactions whereby we sold warrants covering 3,018,327 shares of common stock with an exercise price of $315.38 per share, subject to certain adjustments. We received $90.0 million for these warrants. The warrants have various expiration dates ranging from August 15, 2023 to February 6, 2024. The warrants will have a dilutive effect to the extent the market price per share of common stock exceeds the applicable exercise price of the warrants, as measured under the terms of the warrant transactions. The common stock issuable upon exercise of the warrants will be in unregistered shares, and we do not have the obligation and do not intend to file any registration statement with the SEC registering the issuance of the shares under the warrants.
In August 2022, in connection with the repurchases of $227.8 million in principal of the 2023 Notes for $223.7 million in cash, including accrued interest of $0.4 million made during the six months ended June 30, 2022, we entered into Bond Hedge Unwind Agreements with Barclays Bank PLC, Deutsche Bank AG, and Goldman Sachs & Co. LLC to unwind a portion of the convertible note hedges transactions we initially entered into in connection with the issuance of the 2023 Notes.
As of December 31, 2023, there are no warrants that remain outstanding. The warrants expired on February 6, 2024.
Revolving Credit Facility
On October 12, 2023, we entered into a $75 million revolving credit facility (the “Revolving Credit Facility”) with Citibank, N.A. as the Administrative Agent (as defined in the Credit Agreement). We, our material domestic subsidiaries, as Guarantors (as defined in the Credit Agreement), and the Lenders (as defined in the Credit Agreement) entered into a credit agreement (the “Credit Agreement”) with the Administrative Agent, under which the Lenders, the Swingline Lender and the L/C Issuer (each as defined in the Credit Agreement) agreed to make revolving loans, swingline loans and other financial accommodations to us (including the issuance of letters of credit) in an aggregate amount of up to $75 million. Borrowings under the Revolving Credit Facility accrue interest at a rate equal to either Term Secured Overnight Financing Rate (“Term SOFR”) or a specified base rate plus an applicable margin linked to our leverage ratio, ranging from 1.75% to 2.50% per annum for Term SOFR loans and 0.75% to 1.50% per annum for base rate loans. The Revolving Credit Facility is subject to a commitment fee payable on the unused Revolving Credit Facility commitments ranging from 0.30% to 0.45%, depending on our leverage ratio. During the term of the Revolving Credit Facility, we may borrow, repay and re-borrow amounts available under the Revolving Credit Facility, subject to voluntary reductions of the swing line, letter of credit and revolving credit commitments.
Borrowings under the Revolving Credit Facility are secured by certain of our collateral and that of the Guarantors. In specified circumstances, additional guarantors are required to be added to the Credit Agreement. The Credit Agreement contains customary affirmative and negative covenants, including certain financial maintenance covenants, and events of default applicable to us. In the event of violation of the representations, warranties and covenants made in the Credit Agreement, we may not be able to utilize the Revolving Credit Facility or repayment of amounts owed thereunder could be accelerated.
Amendment to Revolving Credit Facility
On July 8, 2024, we entered into the first amendment (the “Amendment”) to the Credit Agreement, which amends the Credit Agreement to, among other things, increase the aggregate revolving credit facility amount from $75 million to $125 million.
As of December 31, 2024, we had $124.4 million in available borrowing under the Revolving Credit Facility, after utilizing $0.6 million for letter of credit. As of December 31, 2023, we had $74.5 million in available borrowing under the Revolving Credit Facility, after utilizing $0.5 million for letter of credit. The maturity date of the Revolving Credit Facility, as amended, is October 12, 2026. As of December 31, 2024 and 2023, there were no events of default or violation of any covenants under our financing obligations.
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Stockholders' Equity
 12 Months Ended
Dec. 31, 2024
Equity [Abstract]  
Stockholders' Equity Stockholders’ Equity
Share-based Compensation Expense
The following table summarizes share-based compensation expense from continuing operations (in thousands):
Year Ended December 31,
202420232022
Share-based compensation expense as a component of:
Research and development expenses$3,544 $6,248 $10,970 
General and administrative expenses37,545 19,495 39,911 
$41,089 $25,743 $50,881 
Conversion and Modification of Equity Awards Outstanding at Separation Date
In connection with the OmniAb Separation on November 1, 2022, under the provisions of the existing plans, we adjusted our outstanding equity awards in accordance with the OmniAb Merger Agreement to preserve the intrinsic value of the awards immediately before and after the OmniAb Distribution. Upon the OmniAb Distribution, employees holding stock options, restricted stock units and performance restricted stock units denominated in pre-OmniAb Distribution Ligand stock received a number of otherwise-similar awards either in post-OmniAb Distribution Ligand stock or in a combination of post-OmniAb Distribution Ligand stock and OmniAb stock based on conversion ratios outlined for each group of employees in the OmniAb Merger Agreement. The equity awards that were granted prior to March 2, 2022 were converted under the shareholder method, wherein employees holding outstanding equity awards received equity awards in both Ligand and OmniAb. For equity awards granted after March 2, 2022, for Ligand employees, the number of awards that were outstanding at the OmniAb Separation were proportionately adjusted into post-OmniAb Distribution Ligand stock to maintain the aggregate intrinsic value of the awards at the date of the OmniAb Separation; for OmniAb employees, the number of awards that were outstanding at the OmniAb Separation were proportionately adjusted into post-OmniAb Distribution OmniAb stock to maintain the aggregate intrinsic value of the awards at the date of the OmniAb Separation. The conversion ratio was determined based on the relative values of Ligand common stock in the “regular way” and “ex-distribution” markets during the five-trading day period prior to the closing of the business combination.
These modified awards otherwise retained substantially the same terms and conditions, including term and vesting provisions. Additionally, we will not incur any future compensation cost related to equity awards held by OmniAb employees and directors. We will incur future compensation cost related to OmniAb equity awards held by our employees.
Stock Plans
In June 2022, our stockholders approved the amendment and restatement of the Ligand Pharmaceuticals Incorporated 2002 Stock Incentive Plan (the “2002 Plan”). The amended and restated 2002 Plan, which is referred to herein as the “Restated Plan” was amended to increase the shares available for issuance by 1.0 million. In June 2024, our stockholders approved the amendment and restatement of the Ligand Pharmaceuticals Incorporated 2002 Stock Incentive Plan, which increased the shares available for issuance by 1.3 million.
On July 29, 2022, our board of directors (the “Board”) approved the Ligand Pharmaceuticals Incorporated 2022 Employment Inducement Plan (the “2022 Inducement Plan”). The terms of the 2022 Inducement Plan are substantially similar
to the terms of the Restated Plan with the exception that incentive stock options may not be issued under the 2022 Inducement Plan and awards under the 2022 Inducement Plan may only be issued to eligible recipients under the applicable Nasdaq Listing Rules. The 2022 Inducement Plan was adopted by the Board without stockholder approval pursuant to Rule 5635(c)(4) of the Nasdaq Listing Rules. The Board has initially reserved 300,000 shares of the Company’s common stock for issuance pursuant to awards granted under the 2022 Inducement Plan.
As of December 31, 2024, there were 1.6 million shares available for future option grants or direct issuance under the Restated Plan and the 2022 Inducement Plan.
Following is a summary of our stock option plan activity and related information:
 
Shares
Weighted
Average
Exercise
Price
Weighted
Average
Remaining
Contractual
Term in
Years
Aggregate
Intrinsic
Value
(In thousands)
Balance at January 1, 20222,199,598 $106.00 6.34$113,302 
Granted863,245 $91.34 
Exercised(34,941)$38.56 
Forfeited(40,069)$78.46 
Balance at October 31, 20222,987,833 $102.92 0$14,835 
Exercisable at October 31, 20221,769,629 $102.38 0$13,722 
Options vested and expected to vest as of October 31, 2022, before the OmniAb Separation and Regrant
2,987,833 $102.92 0$14,835 
Cancellation due to OmniAb Separation, Before Regrant
(2,987,833)
Balance at November 1, 2022, Before Regrant— 
Granted (1)
3,584,760 $60.10 
Exercised(50,449)$30.24 
Forfeited(542,838)$56.20 
Balance at December 31, 20222,991,473 $61.31 6.07$30,477 
Exercisable at December 31, 20221,559,662 $60.83 4.51$17,951 
Options vested and expected to vest as of December 31, 20222,991,473 $61.31 6.07$30,477 
Granted537,432 $72.69 
Exercised(489,076)$45.83 
Forfeited(399,371)$66.61 
Balance at December 31, 20232,640,458 $65.70 5.63$8,784 
Exercisable at December 31, 20231,784,209 $64.90 4.26$7,300 
Options vested and expected to vest as of December 31, 20232,640,458 $65.70 5.63$8,784 
Granted783,064 $86.91 
Exercised(1,080,135)$60.64 
Forfeited(117,114)$74.58 
Balance at December 31, 20242,226,273 $75.14 6.58$71,538 
Exercisable at December 31, 20241,229,294 $72.15 5.02$43,120 
Options vested and expected to vest as of December 31, 20242,226,273 $75.14 6.58$71,538 
(1) Options granted primarily relate to the modifications in connection with the OmniAb Separation which resulted in new stock option grants at the modification date fair value.
The weighted-average grant-date fair value of all stock options granted during 2024, 2023 and 2022 was $37.81, $36.65, and $28.90 per share, respectively. The total intrinsic value of all options exercised during 2024, 2023 and 2022 was approximately $38.6 million, $12.0 million, and $4.6 million, respectively.
Cash received from options exercised, net of fees paid, in 2024, 2023 and 2022 was $65.2 million, $22.2 million and $2.6 million, respectively.
Following is a further breakdown of the options outstanding as of December 31, 2024:
Range of exercise prices
Options
outstanding
Weighted
average
remaining life
in years
Weighted 
average
exercise price
Options
exercisable
Weighted 
average
exercise price
$32.78-$52.84
281,644 5.78$49.42 195,152 $48.02 
$54.81-$63.62
228,498 4.10$58.54 191,316 $58.32 
$64.65-$68.74
312,067 5.12$67.47 245,199 $67.67 
$69.39-$73.76
233,288 7.66$70.78 125,319 $71.02 
$73.92-$75.09
288,134 7.73$74.76 105,797 $74.88 
$78.56-$88.27
155,478 8.57$82.22 32,249 $81.71 
$89.20-$89.20
444,229 8.35$89.20 103,190 $89.20 
$89.86-$103.42
244,385 4.64$98.53 218,106 $98.24 
$104.30-$114.15
28,290 6.73$110.98 12,966 $114.15 
$122.70-$122.70
10,260 9.92$122.70 — $— 
2,226,273 6.58$75.14 1,229,294 $72.15 

The assumptions used for the specified reporting periods and the resulting estimates of weighted-average grant date fair value per share of options granted:
 Year Ended December 31,
 
2024
2023
2022
Risk-free interest rate
3.5%-4.5%
3.7%-4.6%
1.4%-4.3%
Expected volatility
44%-46%
45%-54%
49%-55%
Expected term
4.1 to 4.8 years
4.7 to 5.3 years
2.0 to 6.5 years

As of December 31, 2024, there was $34.0 million of total unrecognized compensation cost related to non-vested stock options under the 2002 Plan. That cost is expected to be recognized over a weighted average period of 2.5 years.
As of December 31, 2024, there was $0.1 million of total unrecognized compensation cost related to non-vested OmniAb stock options received in connection with the OmniAb Transactions described above. That cost is expected to be recognized over a weighted average period of 0.5 years.
Restricted Stock Activity
The following is a summary of our restricted stock activity and related information: 
Shares
Weighted-Average
Grant Date Fair
Value
Outstanding at December 31, 2022348,453 $75.60 
Granted203,752 $83.39 
Vested(181,246)$74.62 
Forfeited(20,054)$65.35 
Outstanding at December 31, 2023350,905 $81.22 
Granted318,588 $85.23 
Vested(167,308)$84.28 
Forfeited(64,313)$77.28 
Outstanding at December 31, 2024437,872 $83.55 
As of December 31, 2024, unrecognized compensation cost related to non-vested stock awards under the 2002 Plan amounted to $19.6 million. That cost is expected to be recognized over a weighted average period of 1.4 years.
Employee Stock Purchase Plan
As of December 31, 2024, 24,493 shares of our common stock are available for future issuance under the Amended Employee Stock Purchase Plan, or ESPP. The ESPP permits eligible employees to purchase up to 1,250 shares of Ligand common stock per calendar year at a discount through payroll deductions. The price at which stock is purchased under the ESPP is equal to 85% of the fair market value of the common stock on the first of a six month offering period or purchase date, whichever is lower. There were 6,308, 5,080 and 8,479 shares issued under the ESPP in 2024, 2023 and 2022, respectively.
Share Repurchases
In April 2023, our Board of Directors has approved a stock repurchase program authorizing, but not requiring, the repurchase of up to $50 million of our common stock from time to time through April 2026. We expect to acquire shares, if at all, primarily through open-market transactions in accordance with all applicable requirements of Rule 10b-18 under the Securities Exchange Act of 1934, as amended. The timing and amount of repurchase transactions will be determined by management based on our evaluation of market conditions, share price, legal requirements and other factors. During the years ended December 31, 2024, 2023 and 2022, we did not repurchase any common stock, respectively.
At-the Market Equity Offering Program
On September 30, 2022, we filed a registration statement on Form S-3 (the “Shelf Registration Statement”), which became automatically effective upon filing, covering the offering of common stock, preferred stock, debt securities, warrants and units.
On September 30, 2022, we also entered into an At-The-Market Equity Offering Sales Agreement (the “Sales Agreement”) with Stifel, Nicolaus & Company, Incorporated (the “Agent”), under which we may, from time to time, sell shares of our common stock having an aggregate offering price of up to $100 million in “at the market” offerings through the Agent (the “ATM Offering”). The Shelf Registration Statement included a prospectus covering the offering, issuance and sale of up to $100 million of our common stock from time to time through the ATM Offering. The shares to be sold under the Sales Agreement may be issued and sold pursuant to the Shelf Registration Statement. During the year ended December 31, 2024, we issued 360,325 shares of common stock in the ATM Offering, generating proceeds of $37.4 million, net of commissions and other transaction costs. During the year ended December 31, 2023 and 2022, we did not issue any shares of common stock in the ATM Offering.
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Commitment and Contingencies: Legal Proceedings
 12 Months Ended
Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitment and Contingencies: Legal Proceedings Commitment and Contingencies: Legal Proceedings
We record an estimate of a loss when the loss is considered probable and estimable. Where a liability is probable and there is a range of estimated loss and no amount in the range is more likely than any other number in the range, we record the minimum estimated liability related to the claim in accordance with ASC 450, Contingencies. As additional information becomes available, we assess the potential liability related to our pending litigation and revises our estimates. Revisions in our estimates of potential liability could materially impact our results of operations.
On October 31, 2019, we received three civil complaints filed in the U.S. District Court for the Northern District of Ohio on behalf of several Indian tribes. The Northern District of Ohio is the Court that the Judicial Panel on Multi-District Litigation (“JPML”) has assigned more than one thousand civil cases which have been designated as a Multi-District Litigation (“MDL”) and captioned In Re: National Prescription Opiate Litigation. The allegations in these complaints focus on the activities of defendants other than the Company and no individualized factual allegations have been advanced against us in any of the three complaints. We reject all claims raised in the complaints and intend to vigorously defend these matters.
On August 22, 2024, CyDex Pharmaceuticals, Inc. filed a Verified Complaint in the Delaware Court of Chancery against Bexson Biomedical, Inc. (“Bexson”), asserting claims for declaratory relief and breach of contract arising out of a Captisol In Vivo Agreement (the “In Vivo Agreement”) between the parties, pursuant to which CyDex provided Bexson with research-grade Captisol and related confidential and proprietary information for a potential new formulation of ketamine being developed by Bexson. CyDex alleges that Bexson breached its obligations under the In Vivo Agreement, including by misusing confidential information and materials provided by CyDex and by using CyDex’s confidential information and materials to file patent applications that purport to cover formulations that are “not ketamine.” CyDex also asserts that Bexson failed to return and destroy Cydex’s confidential information and materials as required by the Agreement. CyDex seeks relief including specific performance of certain co-ownership provisions of the Agreement and disgorgement from Bexson for any benefits obtained in violation of the In Vivo Agreement. On September 27, 2024, Bexson filed a Motion to Dismiss the Verified Complaint. A Verified Amended Complaint was filed by CyDex on November 6, 2024, and a Motion to Dismiss the Verified Amended Complaint was filed by Bexson on January 17, 2025.
From time to time, we may also become subject to other legal proceedings or claims arising in the ordinary course of our business. We currently believe that none of the claims or actions pending against us is likely to have, individually or in the
aggregate, a material adverse effect on our business, financial condition or results of operations. Given the unpredictability inherent in litigation, however, we cannot predict the outcome of these matters.
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Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
For the years ended December 31, 2024, 2023, and 2022, the Company has the following income before income tax from continuing operations (in thousands):
Year Ended December 31,
202420232022
Domestic$(25,855)$62,140 $33,339 
Foreign28,373 1,520 2,672 
Income before income tax from continuing operations2,518 63,660 36,011 
The components of the income tax expense (benefit) for continuing operations are as follows (in thousands):
 Year Ended December 31,
 202420232022
Current expense (benefit):
Federal$18,277 $(1,186)$10,097 
State718 218 193 
Foreign3,355 780 452 
22,350 (188)10,742 
Deferred expense (benefit):
Federal(17,767)9,374 (3,656)
State77 655 34,144 
Foreign1,890 — — 
(15,800)10,029 30,488 
Total income tax expense (benefit)$6,550 $9,841 $41,230 
A reconciliation of income tax expense (benefit) from continuing operations to the amount computed by applying the statutory federal income tax rate to the net income (loss) from continuing operations is summarized as follows (in thousands):
 
 Year Ended December 31,
 202420232022
Tax at federal statutory rate$529 $13,448 $7,562 
Subpart F income5,649 479 853 
Officer compensation3,921 844 5,869 
Foreign tax differential on income/loss of foreign subsidiaries1,115 (38)103 
Share-based compensation602 1,241 1,279 
Provision to return adjustments293 2,200 2,232 
Rate change for changes in federal, foreign or state law111 342 (535)
Contingent liabilities88 (116)15 
Change in uncertain tax positions94 (7,206)(158)
Debt repurchases— — 626 
State, net of federal benefit(85)397 264 
Research and development credits(324)(405)256 
FDII(832)(1,037)(2,395)
Change in valuation allowance(1,638)(1,184)24,799 
Foreign tax credits(3,232)— — 
Other259 876 460 
$6,550 $9,841 $41,230 
Significant components of our deferred tax assets and liabilities as of December 31, 2024 and 2023 are shown below. We assess the positive and negative evidence to determine if sufficient future taxable income will be generated to realize the existing deferred tax assets. Our evaluation of evidence resulted in management concluding that the majority of our deferred tax assets will be realized. However, we maintain a valuation allowance to offset certain net deferred tax assets as management believes realization of such assets are uncertain as of December 31, 2024, 2023 and 2022.
We offset all deferred tax assets and liabilities by jurisdiction, as well as any related valuation allowance, and present them on our consolidated balance sheet as a non-current deferred income tax asset or liability (as applicable). Deferred tax assets (liabilities) are comprised of the following (in thousands):
 December 31,
 20242023
Deferred tax assets:
Net operating loss carryforwards$40,385 $45,702 
Research credit carryforwards24,404 26,611 
Capitalized R&D7,090 4,550 
Stock compensation10,726 11,886 
Other13,733 15,012 
96,338 103,761 
Valuation allowance for deferred tax assets(55,649)(57,699)
Net deferred tax assets40,689 46,062 
Deferred tax liabilities:
Identified intangibles(69,150)(66,966)
     Other(3,991)(10,504)
Net deferred tax liabilities(73,141)(77,470)
Deferred income taxes, net$(32,452)$(31,408)
As of December 31, 2024, we had federal net operating loss carryforwards set to expire through 2037 of $21.4 million and $162.8 million of state net operating loss carryforwards that begin to expire in 2028. We also have $6.2 million of federal research and development credit carryforwards, which expire through 2040. We have $29.5 million of California research and development credit carryforwards that have no expiration date. In addition, we have approximately $98.4 million of non-U.S. net operating loss carryovers and approximately $14.4 million of non-U.S. capital loss carryovers that have no expiration date.
As of December 31, 2023, we had federal net operating loss carryforwards set to expire through 2037 of $48.0 million and $165.1 million of state net operating loss carryforwards that begin to expire in 2028. We also had $8.5 million of federal research and development credit carryforwards, which expire through 2040. We had $29.4 million of California research and development credit carryforwards that have no expiration date. In addition, we had approximately $95.5 million of non-U.S. net operating loss carryovers and approximately $16.5 million of non-U.S. capital loss carryovers that have no expiration date.
Pursuant to Section 382 and 383 of the Internal Revenue Code of 1986, as amended, utilization of our net operating losses and credits may be subject to annual limitations in the event of any significant future changes in its ownership structure. These annual limitations may result in the expiration of net operating losses and credits prior to utilization. The deferred tax assets as of December 31, 2024 are net of any previous limitations due to Section 382 and 383.
We account for income taxes by evaluating a probability threshold that a tax position must meet before a financial statement benefit is recognized. The minimum threshold is a tax position that is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. Our remaining liabilities for uncertain tax positions are presented net of the deferred tax asset balances on the accompanying consolidated balance sheet.
A reconciliation of the amount of unrecognized tax benefits at December 31, 2024, 2023 and 2022 is as follows (in thousands):
December 31,
202420232022
Balance at beginning of year$22,363 $29,096 $29,550 
     Additions based on tax positions related to the current year27 47 58 
     Additions for tax positions of prior years477 3 — 
     Reductions for tax positions of prior years(396)(6,783)(512)
Balance at end of year$22,471 $22,363 $29,096 
Included in the balance of unrecognized tax benefits at December 31, 2024 is $20.7 million of tax benefits that, if recognized would impact the effective rate. There are no positions for which it is reasonably possible that the uncertain tax benefit will significantly increase or decrease within twelve months.
We recognize interest and penalties related to uncertain tax positions in income tax expense. As of December 31, 2024 and December 31, 2023, we recognized an immaterial amount of interest and penalties. We file income tax returns in the United States, various state jurisdictions, Austria, and United Kingdom with varying statutes of limitations. The federal statute of limitation remains open for the 2021 tax year to the present. he United Kingdom statute of limitation remains open for the 2020 tax year to the present. The Austrian statute of limitation remains open for the 2020 tax year to the present. Net operating loss and research credit carryforwards arising prior to these years are also open to examination if and when utilized. The Company's 2019 and 2020 California tax returns are under examination by the California Franchise Tax Board. The Company does not anticipate that the examination will result in a material adjustment to its financial statements. No other income tax returns are currently under examination. We believe our reserve for unrecognized tax benefits and contingent tax issues is adequate with respect to all open years.
v3.25.0.1
Subsequent Event
 12 Months Ended
Dec. 31, 2024
Subsequent Events [Abstract]  
Subsequent Event Subsequent Event
On February 24, 2025, we entered into a Purchase and Sale Agreement (the “Agreement”) with Castle Creek Biosciences, Inc., Castle Creek Biosciences, LLC (collectively, “Castle Creek”) and a syndicate of co-investors for which Ligand acted as representative (collectively, including Ligand, the “Purchasers”), to support Castle Creek’s autologous human fibroblast cell-based gene therapy genetically modified to express COL7, also known as FCX-007 (dabocemagene autoficel) (“D-Fi”) Phase 3 clinical study, its lead candidate for patients with dystrophic epidermolysis bullosa (“DEB”).
Pursuant to the Agreement, we and the other Purchasers obtained, for an aggregate purchase price of $75 million, $50 million of which was paid by Ligand and $25 million of which was paid by the other Purchasers collectively, (i) a high single digit royalty on worldwide sales of D-Fi and (ii) warrants to purchase shares of Castle Creek Biosciences, Inc. Series D-1 Preferred Stock.
In connection with the transaction we also acquired an unsecured subordinated promissory note issued by Castle Creek Biosciences, LLC with an aggregate principal amount of $8.3 million, which is due and payable upon Castle Creek’s receipt of U.S. Food and Drug Administration approval of D-Fi for treatment of DEB and certain other conditions to payment. We paid $1.8 million for the unsecured subordinated promissory note.
v3.25.0.1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Pay vs Performance Disclosure      
Net income (loss) $ (4,032) $ 52,154 $ (33,361)
v3.25.0.1
Insider Trading Arrangements
 3 Months Ended
Dec. 31, 2024
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.25.0.1
Insider Trading Policies and Procedures
 12 Months Ended
Dec. 31, 2024
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.0.1
Cybersecurity Risk Management and Strategy Disclosure
 12 Months Ended
Dec. 31, 2024
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]
We have developed and implemented a cybersecurity risk management program intended to protect the confidentiality, integrity, and availability of our critical systems and information. Our cybersecurity risk management program includes a cybersecurity incident response plan.
We design and assess our program based on the National Institute of Standards and Technology (“NIST”), the International Organization for Standardization (“ISO”) and other applicable industry standards. This does not imply that we
meet any particular technical standards, specifications, or requirements, only that we use the NIST, ISO and other standards as a guide to help us identify, assess, and manage cybersecurity risks relevant to our business.
Our cybersecurity risk management program is integrated into our overall enterprise risk management program, and shares common methodologies, reporting channels and governance processes that apply across the enterprise risk management program to other legal, compliance, strategic, operational, and financial risk areas.
Our cybersecurity risk management program includes:
•risk assessments designed to help identify material cybersecurity risks to our critical systems, information, products, services, and our broader enterprise information technology environment;
•a security team principally responsible for managing (i) our cybersecurity risk assessment processes, (ii) our security controls, and (iii) our response to cybersecurity incidents;
•the use of external service providers, where appropriate, to assess, test or otherwise assist with aspects of our security controls;
•cybersecurity awareness training of our employees, incident response personnel, and senior management;
•a cybersecurity incident response plan that includes procedures for responding to cybersecurity incidents; and
•a third-party risk management process for service providers, suppliers, and vendors.
We have not identified risks from known cybersecurity threats, including as a result of any prior cybersecurity incidents, that have materially affected or are reasonably likely to materially affect us, including our operations, business strategy, results of operations, or financial condition.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block]
Our cybersecurity risk management program is integrated into our overall enterprise risk management program, and shares common methodologies, reporting channels and governance processes that apply across the enterprise risk management program to other legal, compliance, strategic, operational, and financial risk areas.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]
Our Board considers cybersecurity risk as part of its risk oversight function and has delegated to the Audit Committee (the “Committee”) oversight of cybersecurity and other information technology risks. The Committee oversees management’s implementation of our cybersecurity risk management program.
The Committee receives regular reports from management on our cybersecurity risks. In addition, management updates the Committee, as necessary, regarding any material cybersecurity incidents, as well as any incidents with lesser impact potential.
The Committee reports to the full Board regarding its activities, including those related to cybersecurity. The full Board also receives briefings from senior management on our cyber risk management program. Board members receive presentations on cybersecurity topics from senior management, or external experts as part of the Board’s continuing education on topics that impact public companies.
Our senior management team, including the Senior Director, IT and Facilities, is responsible for assessing and managing our material risks from cybersecurity threats. The team has primary responsibility for our overall cybersecurity risk management program and supervises both our internal cybersecurity personnel and our retained external cybersecurity consultants. The Senior Director, IT and Facilities has over 20 years of industry experiences leading and overseeing cybersecurity programs at public and private companies.
Our senior management team supervises efforts to prevent, detect, mitigate, and remediate cybersecurity risks and incidents through various means, which may include briefings from internal security personnel; threat intelligence and other information obtained from governmental, public or private sources, including external consultants engaged by us; and alerts and reports produced by security tools deployed in the information technology environment.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] Our Board considers cybersecurity risk as part of its risk oversight function and has delegated to the Audit Committee (the “Committee”) oversight of cybersecurity and other information technology risks. The Committee oversees management’s implementation of our cybersecurity risk management program.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block]
The Committee reports to the full Board regarding its activities, including those related to cybersecurity. The full Board also receives briefings from senior management on our cyber risk management program. Board members receive presentations on cybersecurity topics from senior management, or external experts as part of the Board’s continuing education on topics that impact public companies.
Cybersecurity Risk Role of Management [Text Block]
Our Board considers cybersecurity risk as part of its risk oversight function and has delegated to the Audit Committee (the “Committee”) oversight of cybersecurity and other information technology risks. The Committee oversees management’s implementation of our cybersecurity risk management program.
The Committee receives regular reports from management on our cybersecurity risks. In addition, management updates the Committee, as necessary, regarding any material cybersecurity incidents, as well as any incidents with lesser impact potential.
The Committee reports to the full Board regarding its activities, including those related to cybersecurity. The full Board also receives briefings from senior management on our cyber risk management program. Board members receive presentations on cybersecurity topics from senior management, or external experts as part of the Board’s continuing education on topics that impact public companies.
Our senior management team, including the Senior Director, IT and Facilities, is responsible for assessing and managing our material risks from cybersecurity threats. The team has primary responsibility for our overall cybersecurity risk management program and supervises both our internal cybersecurity personnel and our retained external cybersecurity consultants. The Senior Director, IT and Facilities has over 20 years of industry experiences leading and overseeing cybersecurity programs at public and private companies.
Our senior management team supervises efforts to prevent, detect, mitigate, and remediate cybersecurity risks and incidents through various means, which may include briefings from internal security personnel; threat intelligence and other information obtained from governmental, public or private sources, including external consultants engaged by us; and alerts and reports produced by security tools deployed in the information technology environment.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] Our Board considers cybersecurity risk as part of its risk oversight function and has delegated to the Audit Committee (the “Committee”) oversight of cybersecurity and other information technology risks. The Committee oversees management’s implementation of our cybersecurity risk management program.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] The Senior Director, IT and Facilities has over 20 years of industry experiences leading and overseeing cybersecurity programs at public and private companies.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] The Committee receives regular reports from management on our cybersecurity risks. In addition, management updates the Committee, as necessary, regarding any material cybersecurity incidents, as well as any incidents with lesser impact potential.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.0.1
Basis of Presentation and Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Business
Business
We are a biopharmaceutical company enabling scientific advancement through supporting the clinical development of high-value medicines. We do this by providing financing, licensing our technologies or both.
Basis of Presentation and Principles of Consolidation
Basis of Presentation and Principles of Consolidation
Our consolidated financial statements have been prepared in accordance with U.S. GAAP and include the accounts of our parent company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.
Segment Information
Segment Information
The Company has one operating and one reportable segment: development and licensing of biopharmaceutical assets. The Company's Chief Operating Decision Maker (“CODM”) is Todd Davis, our Chief Executive Officer. The CODM uses net income (loss) from continuing operations as a single segment profit or loss measure to evaluate our single segment performance, and in deciding whether to reinvest into the existing assets, or to new potential opportunities. Our CODM relies on internal management reporting processes that provide information on segment operating income (loss) for making financial decisions and allocating resources. CODM does not evaluate, manage or measure performance of segments using asset information.
Reclassification
Reclassification
Certain reclassifications have been made to the previously issued audited consolidated financial statements to conform with the current period presentation. Specifically, within the consolidated balance sheet as of December 31, 2023, our commercial license and other economic rights line has been reclassified to long-term portion of financial royalty assets, net, and to other assets, and a portion of other investments has been reclassified from other assets. Moreover, noncurrent derivative assets as of December 31, 2023, have been reclassified from other assets.
In addition, within the consolidated statements of operations for the years ended December 31, 2023 and 2022, royalties have been reclassified to revenue from intangible royalty assets, and a portion of the contract revenue has been reclassified to income from financial royalty assets.
Discontinued operations
Discontinued operations
The Company determined that the spin-off of the OmniAb Business in November 2022 in connection with the OmniAb Transactions met the criteria for classification as a discontinued operation in accordance with ASC Subtopic 205-20, Discontinued Operations (“ASC 205-20”).
Use of Estimates
Use of Estimates
The preparation of the consolidated financial statements in conformity with U.S. GAAP requires the use of estimates and assumptions that affect the amounts reported in the consolidated financial statements and the accompanying notes. Actual results may differ from those estimates.
Acquisitions
Acquisitions
We first determine whether a set of assets acquired constitute a business and should be accounted for as a business combination. If the assets acquired are not a business, we account for the transaction as an asset acquisition. Business combinations are accounted for by using the acquisition method of accounting which requires us to use significant estimates and assumptions, especially with respect to intangible assets. We record the excess consideration over the aggregate fair value of tangible and intangible assets, net of liabilities assumed, as goodwill.
Under the acquisition method of accounting, we recognize separately from goodwill the identifiable assets acquired, the liabilities assumed, including contingent consideration and all contractual contingencies, generally at the acquisition date fair value. Contingent purchase consideration to be settled in cash are remeasured to estimated fair value at each reporting period with the change in fair value recorded in statement of operations. Costs that we incur to complete the business combination such as investment banking, legal and other professional fees are not considered part of consideration and we charge them to general and administrative expense as they incurred.
Should the initial accounting for a business combination be incomplete by the end of a reporting period that falls within the measurement period, we report provisional amounts in our financial statements. During the measurement period, we adjust the provisional amounts recognized at the acquisition date to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date and we record those adjustments to our financial statements in the period of change, if any.
Under the acquisition method of accounting for business combinations, if we identify changes to acquired deferred tax asset valuation allowances or liabilities related to uncertain tax positions during the measurement period and they relate to new information obtained about facts and circumstances that existed as of the acquisition date, those changes are considered a measurement period adjustment and we record the offset to goodwill. We record all other changes to deferred tax asset valuation allowances and liabilities related to uncertain tax positions in current period income tax expense.
Concentrations of Business Risk
Concentrations of Business Risk
Financial instruments that potentially subject us to significant concentrations of credit risk consist primarily of cash equivalents and investments. We invest excess cash principally in United States government debt securities, investment grade corporate debt securities, mutual funds and certificates of deposit. We maintain some cash and cash equivalents balances with financial institutions that are in excess of the Federal Deposit Insurance Corporation insurance limits. We have established guidelines relative to diversification and maturities that maintain safety and liquidity. These guidelines are periodically reviewed and modified to take advantage of trends in yields and interest rates.
Cash Equivalents & Short-term Investments
Cash Equivalents
Cash equivalents consist of highly liquid investments with maturities of three months or less from the date of acquisition.
Short-term Investments
Short-term investments primarily consist of investments in debt and equity securities. We classify our short-term investments as “available-for-sale”. Such investments are carried at fair value, with unrealized gains and losses on debt securities included in the statements of comprehensive income (loss), net of tax, and unrealized gains and losses on equity securities included the consolidated statements of operations. We determine the cost of investments based on the specific identification method. We determine the realized gains or losses on the sale of available-for-sale securities using the specific identification method and include net realized gains and losses as a component of non-operating income and expenses within the consolidated statements of operations.
Debt securities consist of certificates of deposit, corporate debt securities, and securities of government-sponsored entities. Debt securities have effective maturities greater than three months and less than thirty-six months from the date of acquisition. Debt securities available-for-sale in an unrealized loss position are assessed for current expected credit losses. We start by assessing whether we intend to sell the security, or whether it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through earnings. For debt securities available-for-sale that do not meet the aforementioned criteria, we evaluate whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, we consider the extent to which fair value is less than amortized cost, any changes in interest rates, and any changes to the rating of the security by a rating agency, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security is compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income or loss, as applicable.
Equity securities consist of bond funds, investments in privately held companies (non-marketable equity securities), and companies that have completed initial public offerings (marketable equity securities). Bond funds are valued at their publicly quoted net asset value (“NAV”) price on the last day of the period. Our non-marketable equity securities without readily determinable market values are initially measured at cost and adjusted to fair value for observable transactions for identical or similar investments of the same issuer or impairment. Our marketable equity securities are measured at fair value. Equity investments are classified as short-term investments, equity method investment in Primrose Bio, or other investments, based on the nature of the securities and their availability for use in current operations.
Accounts Receivable and Allowance for Credit Losses
Accounts Receivable and Allowance for Credit Losses
Our accounts receivable arise primarily from sales on credit to customers. We establish an allowance for credit losses to present the net amount of accounts receivable expected to be collected. The allowance is determined by using the loss-rate method, which requires an estimation of loss rates based upon historical loss experience adjusted for factors that are relevant to determining the expected collectability of accounts receivable. Some of these factors include macroeconomic conditions that correlate with historical loss experience, delinquency trends, aging behavior of receivables and credit and liquidity quality indicators for industry groups, customer classes or individual customers.
Inventory
Inventory
Inventory, which consists of finished goods (Captisol), is stated at the lower of cost or net realizable value. We determine cost using the specific identification method. We analyze our inventory levels periodically and write down inventory to net realizable value if it has become obsolete, has a cost basis in excess of its expected net realizable value or is in excess of expected requirements.
Property and Equipment
Property and Equipment
Property and equipment are stated at cost, subject to review for impairment, and depreciated over the estimated useful lives of the assets, which generally range from one to nine years, using the straight-line method. Amortization of leasehold improvements is recorded over the shorter of the lease term or estimated useful life of the related asset. Maintenance and repairs are charged to operations as incurred. When assets are sold, or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts and any gain or loss is included in operating income or expense.
For additional information, see “Note (7), Balance Sheet Account Details.”
Goodwill, Intangible Assets and Other Long-Lived Assets
Goodwill, Intangible Assets and Other Long-Lived Assets
Goodwill, which has an indefinite useful life, represents the excess of cost over fair value of net assets acquired. Goodwill is reviewed for impairment at the reporting unit level at least annually during the fourth quarter, or more frequently if an event occurs indicating the potential for impairment. During the goodwill impairment review, we assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than the carrying amount, including goodwill. The qualitative factors include, but are not limited to, macroeconomic conditions, industry and market considerations, and the overall financial performance. If, after assessing the totality of these qualitative factors, we determine that it is not more likely than not that the fair value of our reporting unit is less than the carrying amount, then no additional assessment is deemed necessary. Otherwise, we proceed to perform the quantitative assessment. We will then evaluate goodwill for impairment by comparing the estimated fair value of the reporting unit to its carrying value, including the associated goodwill. To determine the fair value, we generally use a combination of market approach based on Ligand and comparable publicly traded companies in similar lines of businesses and the income approach based on estimated discounted future cash flows. Our cash flow assumptions consider historical and forecasted revenue, operating costs and other relevant factors. We may also elect to bypass the qualitative assessment in a period and elect to proceed to perform the quantitative assessment for the goodwill impairment test. We performed the annual assessment for goodwill impairment at the reporting unit level during the fourth quarter of 2024, noting no impairment.
Our identifiable intangible assets are typically composed of acquired core technologies, licensed technologies, contractual relationships, customer relationships and trade names. The cost of identifiable intangible assets with finite lives is generally amortized on a straight-line basis over the assets’ respective estimated useful lives. We regularly perform reviews to determine if any event has occurred that may indicate that intangible assets with finite useful lives and other long-lived assets are potentially impaired. If indicators of impairment exist, an impairment test is performed to assess the recoverability of the affected assets by determining whether the carrying amount of such assets exceeds the undiscounted expected future cash flows. If the affected assets are not recoverable, we estimate the fair value of the assets and record an impairment loss if the carrying value of the assets exceeds the fair value. Factors that may indicate potential impairment include market conditions, industry and economic trends, changes in regulations, clinical success, historical and forecasted financial results, market capitalization, significant changes in the ability of a particular asset to generate positive cash flows, and the pattern of utilization of a particular asset.
Financial Royalty Assets, net (formerly known as Commercial License Rights)
Financial Royalty Assets, net (formerly known as Commercial License Rights)
Financial royalty assets represent a portfolio of future milestone and royalty payment rights acquired that are passive in nature (i.e., we do not own the intellectual property or have the right to commercialize the underlying products).
Although a financial royalty asset does not have the contractual terms typical of a loan (such as contractual principal and interest), we account for financial royalty assets under ASC 310, Receivables. Our financial royalty assets are classified similar to loans receivable and are measured at amortized cost using the prospective effective interest method described in ASC 835-30 Imputation of Interest.
The effective interest rate is calculated by forecasting the expected cash flows to be received over the life of the asset relative to the initial invested amount. The effective interest rate is recalculated in each reporting period as the difference between expected cash flows and actual cash flows are realized and as there are changes to expected future cash flows.
The gross carrying value of a financial royalty asset is made up of the opening balance, or net purchase price for a new financial royalty asset, which is increased by accrued interest income (except for assets under the non-accrual method) and decreased by cash receipts in the period to arrive at the ending balance.
We evaluate financial royalty assets for recoverability on an individual basis by comparing the effective interest rate at each reporting date to that of the prior period. If the total amount of expected undiscounted cash flows is below the amortized cost basis, we measure and record an allowance for the change in expected cash flows. This allowance is measured as the difference between the financial royalty asset’s amortized cost basis and the net present value of the expected future cash flows, calculated using the original effective interest rate. In a subsequent period, if there is an increase in expected future cash flows, or if actual cash flows are greater than cash flows previously expected, we reduce the previously established cumulative allowance in part or in full.
In addition to the above allowance, we recognize an allowance for current expected credit losses under ASC 326, Financial Instruments – Credit Losses on our financial royalty assets. The credit rating, which is primarily based on publicly available data and updated quarterly, is the primary credit quality indicator used to determine the credit loss provision.
The carrying value of financial royalty assets is presented net of the cumulative allowances for changes in expected future cash flows and expected credit losses. The initial amount and subsequent revisions in allowances for changes in expected future cash flows and expected credit losses are recorded as part of general and administrative expenses on the consolidated statements of operations.
When we are reasonably certain that a part of a financial royalty asset’s net carrying value (or all of it) is not recoverable, we recognize an impairment which is recorded in financial royalty assets impairment on the consolidated statements of operations. To the extent there was an allowance previously recorded for this asset, the amount of such impairment is written off against the allowance at the time that such a determination is made. Any future recoveries from such impairment are recognized when cash is collected in a respective period earnings.
The current portion of financial royalty assets represents an estimation for current quarter royalty receipts which are collected during the subsequent quarter. This portion is presented in other current assets on our consolidated balance sheets, net of the allowance for expected credit losses.
For additional information, see “Note (6), Financial Royalty Assets, net (formerly known as Commercial License Rights)”.
Derivative Assets
Derivative Assets
Derivative assets include instruments used for risk-management purposes, and other instruments. Derivative assets which are not used for risk management purposes, include: (a) acquired rights in future milestone and royalty payments from Agenus Partnered Programs (as defined in “Note (2), Agenus Transaction”), (b) Agenus Warrant (as defined “Note (2), Agenus Transaction”), (c) option to invest up to $25 million to milestone and royalty rights which expires on June 30, 2025 (“Upsize Option”), and (d) rights to receive from Primrose Bio 50% of milestones on two contracts previously entered into by Primordial Genetics.
Equity Method Investment
Equity Method Investment
Investments that we do not consolidate but in which we have significant influence over the operating and financial policies of the investee are classified as equity method investments and are accounted for using the equity method of accounting.
In applying the equity method of accounting, investments are initially recorded at cost and are subsequently adjusted based on our proportionate share of net income or loss of the investee, net of any distributions received from the investee and any impairment.
For additional information, see “Note (4), Sale of Pelican Business and Investment in Primrose Bio”.
Other Investments
Other Investments
Other investments represent our investments in equity securities of third parties in which we do not have control or significant influence. Our equity securities investments do not have a readily determinable or estimable fair value and are measured using the measurement alternative, which is cost less impairment, if any, and adjustments resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer. The amount of such impairment or adjustment recognized during the period is presented in other non-operating (expense) income, net in our consolidated statements of operations. For additional information, see “Note (7), Balance Sheet Account Details.”
Revenue and Other Income
Revenue and Other Income
Our revenue is generated primarily from royalties on sales of products commercialized by our partners, Captisol material sales, income from financial royalty assets, and contract revenue for license fees, technical, regulatory and sales-based milestone payments. Other operating income is primarily related to milestone income received for financial royalty assets that have been fully amortized or where there is no underlying asset recognized on the consolidated balance sheets.
We apply the following five-step model in accordance with ASC 606, Revenue from Contracts with Customers, in order to determine the revenue: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation.
Revenue from Intangible Royalty Assets
We receive royalty revenue from intangible royalty assets on sales by our partners of products covered by patents that we or our partners own under contractual agreements. We do not have future performance obligations under these license arrangements. We generally satisfy our obligation to grant intellectual property rights on the effective date of the contract. However, we apply the royalty recognition constraint required under the guidance for sales-based royalties which requires a royalty to be recorded no sooner than when the underlying sale occurs. Therefore, royalties on sales of products commercialized by our partners are recognized in the quarter the product is sold. Our partners generally report sales information to us on a one quarter lag. Thus, we estimate the expected royalty proceeds based on an analysis of historical experience and interim data provided by our partners including their publicly announced sales. Differences between actual and estimated royalty revenues, which have not been material, are adjusted in the period in which they become known, typically the following quarter.
Income from Financial Royalty Assets
Effective January 1, 2024, we introduced a new line item “income from financial royalty assets”, which was included in “contract revenue” in prior periods. Accordingly, the prior year period amounts have been reclassified to align with the current period presentation.
We recognize income from financial royalty assets when there is a reasonable expectation about the timing and amount of cash flows expected to be collected. Income is calculated by multiplying the carrying value of the financial royalty asset by the periodic effective interest rate.
We account for financial royalty assets related to developmental pipeline or recently commercialized products on a non-accrual basis. Developmental pipeline products are non-commercialized, non-approved products that require FDA or other regulatory approval, and thus have uncertain cash flows. Newly commercialized products typically do not have an established reliable sales pattern, and thus have uncertain cash flows.
Captisol Sales
Revenue from Captisol sales is recognized when control of Captisol material is transferred or intellectual property license rights are granted to our customers in an amount that reflects the consideration we expect to receive from our customers
in exchange for those products or rights. A performance obligation is considered distinct from other obligations in a contract when it provides a benefit to the customer either on its own or together with other resources that are readily available to the customer and is separately identified in the contract. For Captisol material or intellectual property license rights, we consider our performance obligation satisfied once we have transferred control of the product or granted the intellectual property rights, meaning the customer has the ability to use and obtain the benefit of the Captisol material or intellectual property license right. We recognize revenue for satisfied performance obligations only when we determine there are no uncertainties regarding payment terms or transfer of control. Sales tax and other taxes we collect concurrent with revenue-producing activities are excluded from revenue. We have elected to recognize the cost of freight and shipping when control over Captisol material has transferred to the customer as an expense in cost of Captisol in our consolidated statements of operations. We expense incremental costs of obtaining a contract when incurred if the expected amortization period of the asset that we would have recognized is one year or less or the amount is immaterial. We did not incur any incremental costs of obtaining a contract during the periods reported.
Contract Revenue and Other Income
Our contracts with customers often include variable consideration in the form of contingent milestone payments. We include contingent milestone payments in the estimated transaction price when it is probable a significant reversal in the amount of cumulative revenue recognized will not occur. These estimates are based on historical experience, anticipated results and our best judgment at the time. If the contingent milestone payment is based on sales, we apply the royalty recognition constraint and record revenue when the underlying sale has taken place. Significant judgments must be made in determining the transaction price for our sales of intellectual property. Because of the risk that products in development with our partners will not reach development milestones or receive regulatory approval, we generally recognize any contingent payments that would be due to us upon the development milestone or regulatory approval.
Some customer contracts are sublicenses which require that we make payments to an upstream licensor related to license fees, milestones and royalties which we receive from customers. In such cases, we evaluate the determination of gross revenue as a principal versus net revenue as an agent reporting based on each individual agreement.
Other income is primarily related to milestone income received for financial royalty assets that have been fully amortized or where there is no underlying asset recognized on the consolidated balance sheets.
Deferred Revenue
Depending on the terms of the arrangement, we may also defer a portion of the consideration received if we have to satisfy a future obligation. The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets), and customer advances and deposits (contract liabilities) on the consolidated balance sheet. Except for royalty revenue and certain service revenue, we generally receive payment at the point we satisfy our obligation or soon after. Therefore, we do not generally carry a contract asset balance. Any fees billed in advance of being earned are recorded as deferred revenue.
Research and Development Expenses
Research and Development Expenses
Research and development expense consists of labor, material, equipment, and allocated facilities costs of our scientific staff who are working pursuant to our collaborative agreements and other research and development projects. Also included in research and development expenses are third-party costs incurred for our research programs including in-licensing costs, contract research organization (“CRO”) costs and costs incurred by other research and development service vendors. We expense these costs as they are incurred. When we make payments for research and development services prior to the services being rendered, we record those amounts as prepaid assets on our consolidated balance sheet and we expense them as the services are provided.
Share-Based Compensation
Share-Based Compensation
We incur share-based compensation expense related to restricted stock, ESPP, and stock options.
Restricted stock unit (“RSU”) and performance stock unit (“PSU”) are all considered restricted stock. The fair value of restricted stock is determined by the closing market price of our common stock on the date of grant. We recognize share-based compensation expense based on the fair value on a straight-line basis over the requisite service periods of the awards, taking into consideration of forfeitures as they occur. PSU generally represents a right to receive a certain number of shares of common stock based on the achievement of corporate performance goals and continued employment during the vesting period. At each reporting period, we reassess the probability of the achievement of such corporate performance goals and any expense change resulting from an adjustment in the estimated shares to be released are treated as a cumulative catch-up in the period of adjustment. A limited amount of PSUs contain a market condition dependent upon the Company’s relative and absolute total stockholder return over a three-year period, with a range of 0% to 200% of the target amount granted to be issued under the award. Share-based compensation expense for these PSUs is measured using the Monte-Carlo simulation valuation model and is not adjusted for the achievement, or lack thereof, of the market conditions.
The Black-Scholes-Merton option-pricing model is used to estimate the fair value of stock purchases under our ESPP and stock options granted. The model assumptions include expected volatility, term, dividends, and the risk-free interest rate. We look to historical and implied volatility of our stock to determine the expected volatility. The expected term of an award is based on historical forfeiture experience, exercise activity, and on the terms and conditions of the stock awards. The expected dividend yield is determined to be 0% given that except for 2007, during which we declared a cash dividend on our common stock of $2.50 per share, we have not paid any dividends on our common stock in the past and currently do not expect to pay cash dividends or make any other distributions on common stock in the future. The risk-free interest rate is based upon U.S. Treasury securities with remaining terms similar to the expected term of the share-based awards.
We grant options, RSUs and PSUs to employees and non-employee directors. Non-employee directors are accounted for as employees. Options and RSUs granted to certain non-employee directors typically vest one year from the date of grant. Options granted to employees typically vest 1/8 on the six month anniversary of the date of grant, and 1/48 each month thereafter for forty-two months. RSUs and PSUs granted to employees vest over three years. All option awards generally expire ten years from the date of grant.
Share-based compensation expense for awards to employees and non-employee directors is recognized on a straight-line basis over the vesting period until the last tranche vests.
Income Taxes
Income Taxes
The provision for income taxes is computed using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for the expected future tax benefit to be derived from tax loss and credit carryforwards. Deferred tax assets and liabilities are determined using the enacted tax rates in effect for the years in which those tax assets are expected to be realized. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the provision for income taxes in the period that includes the enactment date.
Deferred tax assets are regularly assessed to determine the likelihood they will be recovered from future taxable income. A valuation allowance is established when we believe it is more likely than not the future realization of all or some of a deferred tax asset will not be achieved. In evaluating the ability to recover deferred tax assets within the jurisdiction which they arise we consider all available positive and negative evidence. Factors reviewed include the cumulative pre-tax book income for the past three years, scheduled reversals of deferred tax liabilities, history of earnings and reliable forecasting, projections of pre-tax book income over the foreseeable future, and the impact of any feasible and prudent tax planning strategies.
We recognize the impact of a tax position in our financial statements only if that position is more likely than not of being sustained upon examination by taxing authorities, based on the technical merits of the position. Tax authorities regularly examine our returns in the jurisdictions in which we do business and we regularly assess the tax risk of our return filing positions. Due to the complexity of some of the uncertainties, the ultimate resolution may result in payments that are materially different from our current estimate of the tax liability. These differences, as well as any interest and penalties, will be reflected in the provision for income taxes in the period in which they are determined.
Income (Loss) Per Share
Income (Loss) Per Share
Basic income (loss) per share is calculated by dividing net income (loss) by the weighted-average number of common shares outstanding during the period. Diluted income per share is computed based on the sum of the weighted average number of common shares and potentially dilutive common shares outstanding during the period. Diluted loss per share is computed based on the sum of the weighted average number of common shares outstanding during the period.
Potentially dilutive common shares consist of shares issuable under the 2023 Notes, stock options and restricted stock. Although we paid off the 2023 Notes in May 2023, it would have a dilutive impact when the average market price of our common stock exceeded the maximum conversion price during the year ended December 31, 2023. It is our intent and policy to settle conversions through combination settlement, which essentially involves payment in cash equal to the principal portion and delivery of shares of common stock for the excess of the conversion value over the principal portion. Potentially dilutive common shares from stock options and restricted stock are determined using the average share price for each period under the treasury stock method. In addition, the following amounts are assumed to be used to repurchase shares: proceeds from exercise of stock options and the average amount of unrecognized compensation expense for stock options and restricted stock. In loss periods, basic net loss per share and diluted net loss per share are identical since the effect of otherwise dilutive potential common shares is anti-dilutive and therefore excluded. For additional information, see “Note (11), Stockholders’ Equity”.
In accordance with ASC 260, Earnings per Share, if a company had a discontinuing operation, the company uses income from continuing operations, adjusted for preferred dividends and similar adjustments, as its control number to determine whether potential common shares a dilutive.
Foreign Currency Translation
Foreign Currency Translation
The Euro is the functional currency of Apeiron and the corresponding financial statements have been translated into U.S. Dollars in accordance with ASC 830-30, Translation of Financial Statements. Assets and liabilities are translated at end-of-period rates while revenues and expenses are translated at average rates in effect during the period in which the activity took
place. Equity is translated at historical rates and the resulting cumulative translation adjustments are included as a component of accumulated other comprehensive income (loss).
Comprehensive Income (Loss)
Comprehensive Income (Loss)
Comprehensive income (loss) represents net income (loss) adjusted for the change during the periods presented for unrealized gains and losses on available-for-sale debt securities and foreign currency translation adjustments.
Accounting Standards Updates, Recently Adopted and Not Yet Adopted
Accounting Standards Updates, Recently Adopted
In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. We have adopted the updated accounting guidance in our Annual Report on the Form 10-K for the year ended December 31, 2024. We have updated our segment disclosure (see “Note (1), Basis of Presentation and Summary of Significant Accounting Policies”) including, among other required items, the information on significant segment expenses that are regularly provided to the CODM and included within the reported segment profit or loss measure.
Accounting Standards Not Yet Adopted
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The update requires a public business entity to disclose, on an annual basis, a tabular rate reconciliation using both percentages and currency amounts, broken out into specified categories with certain reconciling items further broken out by nature and jurisdiction to the extent those items exceed a specified threshold. In addition, all entities are required to disclose income taxes paid, net of refunds received disaggregated by federal, state/local, and foreign and by jurisdiction if the amount is at least 5% of total income tax payments, net of refunds received. Adoption of the ASU allows for either the prospective or retrospective application of the amendment and is effective for annual periods beginning after December 15, 2024, with early adoption permitted. We have not yet completed the assessment of the impact of ASU 2023-09 on our consolidated financial statements.
In November 2024, the FASB issued ASU No. 2024-03, Income Statement—Reporting Comprehensive Income (Subtopic 220-40): Expense Disaggregation Disclosures. This update requires entities to disaggregate operating expenses into specific categories, such as salaries and wages, depreciation, and amortization, to provide enhanced transparency into the nature and function of expenses. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, with early adoption permitted. ASU 2024-03 may be applied retrospectively or prospectively. We are currently evaluating the new guidance to determine the impact it may have on our consolidated financial statements and related disclosures.
We do not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material impact on our consolidated financial statements or disclosures.
v3.25.0.1
Basis of Presentation and Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Revenue from Significant Partners
Revenue and other income from significant partners, which is defined as 10% or more of our total revenue, was as follows:
Year ended December 31,
202420232022
Partner A23%33%45%
Partner B12%20%16%
Partner C
<10%
10%
<10%
Schedule of Disaggregation of Revenue
Royalties for 2024, 2023 and 2022 for continuing operations are reported as below (in thousands):
Year ended December 31,
202420232022
Royalties
Kyprolis$38,377 $35,640 $30,116 
Rylaze 13,743 13,520 8,796 
Filspari12,179 2,655 — 
Evomela8,680 10,212 10,197 
Teriparatide injection 8,221 11,061 15,785 
Vaxneuvance5,184 4,062 1,083 
Other8,945 6,760 6,550 
Revenue from intangible royalty assets95,329 83,910 72,527 
Income from financial royalty assets13,444 1,049 385 
Total royalties$108,773 $84,959 $72,912 
The following table represents disaggregation of Captisol and contract revenue and other income for continuing operations (in thousands):
Year ended December 31,
202420232022
Captisol
Captisol - Core$30,883 $28,372 $16,429 
Captisol - COVID(a)
— — 88,066 
Total Captisol$30,883 $28,372 $104,495 
Contract revenue and other income
Milestone and other$25,533 $17,983 $18,838 
Other income1,944 — — 
Total contract revenue and other income$27,477 $17,983 $18,838 
(a) Captisol - COVID represents revenue on Captisol supplied for use in formulation with remdesivir, an antiviral treatment for COVID-19.
Schedule of Computation of Basic and Diluted Net Income (Loss) per Share The following table presents the calculation of weighted average shares used to calculate basic and diluted income (loss) per share (in thousands):
Year Ended December 31,
 202420232022
Weighted average shares outstanding:18,290 17,298 16,868 
Dilutive potential common shares:
   Restricted stock— 85 — 
   Stock options— 255 — 
   2023 Convertible Senior Notes— 119 — 
Shares used to compute diluted income per share18,290 17,757 16,868 
Potentially dilutive shares excluded from calculation due to anti-dilutive effect1,530 4,357 6,241 
Reconciliation of Operating Profit (Loss) from Segments to Consolidated
The information on significant segment expenses that are regularly provided to the CODM, and other segment items included within the reported segment profit or loss measure, is presented in a table below:
Year ended December 31,
202420232022
Total revenues and other income$167,133 $131,314 $196,245 
Share-based compensation(41,089)(25,743)(60,285)
Other segment items:
Amortization of intangibles(32,959)(33,654)(34,237)
Depreciation of property and equipment(2,300)(2,905)(3,841)
Interest income8,055 7,711 2,046 
Interest expense(3,037)(656)(1,799)
Other *(99,835)(22,248)(103,348)
Net income (loss) from continuing operations$(4,032)$53,819 $(5,219)
* Other items for the years ended December 31, 2024, 2023, and 2022, include the amount of other general, administrative, research and development expenses of $56.7 million, $48.7 million, and $42.0 million (net of share-based compensation and depreciation expenses), respectively, and additional income and expense items that are presented in consolidated statements of operations such as financial royalty assets impairment, Fair value adjustments to partner program derivatives, cost of Captisol and other non-operating income and expenses.
v3.25.0.1
Acquisitions (Tables)
 12 Months Ended
Dec. 31, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]  
Schedule of Allocation of Consideration / Recognized Identified Assets Acquired and Liabilities Assumed
The amount of purchase consideration was allocated to the acquisition date fair values of acquired assets and assumed liabilities as follows (in thousands):
Cash and cash equivalents$13,437 
Contract assets (financial royalty assets)106,156 
Other assets8,965 
Accounts payable and accrued liabilities(3,740)
Income tax payable(1,276)
Deferred tax liabilities, net(18,109)
Total fair value of net assets acquired$105,433 
We have finalized purchase accounting for the Novan acquisition. The following table sets forth an allocation of the purchase price to the identifiable tangible and intangible assets acquired and liabilities assumed, with the excess recorded to goodwill (in thousands):
Restricted cash$583 
Property and equipment, net13,054 
Operating lease right-of-use asset3,683 
Other assets137 
Deferred tax asset1,013 
Intangible assets acquired 10,700 
Goodwill3,709 
Deferred revenue(4,508)
Operating lease liabilities(3,683)
Other liabilities(13,700)
Cash paid for Novan, including restricted cash received10,988 
DIP loan fees and interest1,162 
Total consideration $12,150 
v3.25.0.1
Sale of Pelican Business and Investment in Primrose Bio (Tables)
 12 Months Ended
Dec. 31, 2024
Discontinued Operations and Disposal Groups [Abstract]  
Schedule of Carrying Amounts of Major Classes of Assets and Liabilities Related to Assets Held for Sale
We determined that the sale of Pelican meets the definition of a deconsolidation of a business. Net assets sold together with allocated goodwill and cash consideration paid were as follows (in thousands):
Property and equipment, net$8,250 
Intangible assets19,895 
Other assets717 
Operating lease right-of-use assets8,693 
Finance lease right-of-use assets20 
Accrued liabilities(630)
Deferred revenue(495)
Long-term operating lease liabilities(8,445)
Other liabilities(74)
Net assets sold27,931 
Allocated goodwill4,132 
Cash consideration paid15,000 
$47,063 
The following table summarizes revenue and expenses of the discontinued operations for the year ended December 31, 2022 (in thousands):
Year Ended December 31,
2022
Revenues:
Royalties$1,289 
Contract revenue25,275 
Total revenues26,564 
Operating costs and expenses:
Amortization of intangibles10,847 
Research and development38,466 
General and administrative13,383 
Total operating costs and expenses62,696 
Loss from operations(36,132)
Other income (expense):
Gain from short-term investments— 
Interest expense— 
Other income (expense), net554 
Total other expense, net554 
Loss before income tax(35,578)
Income tax benefit7,436 
Net loss$(28,142)
The following table summarizes the significant non-cash items, capital expenditures of the discontinued operations, and financing activities that are included in the consolidated statements of cash flows for the year ended December 31, 2022 (in thousands):
Year Ended December 31,
2022
Operating activities:
Change in fair value of contingent consideration$(554)
Depreciation and amortization13,218 
Stock-based compensation expense9,404 
Investing activities:
Cash paid for acquisition, net of cash acquired
$— 
Purchase of property, plant and equipment(5,572)
Payments to CVR Holders(960)
Financing activities:
Payments to CVR Holders$(1,545)
Supplemental cash flow disclosures:
Purchases of property, plant and equipment included in accounts payable and accrued expenses$2,310 
Schedule of Fair Value of the Consideration
Fair value of the consideration received includes the following (in thousands):
Equity method investment$13,706 
Equity securities32,278 
Derivative assets3,200 
$49,184 
v3.25.0.1
Spin-off of OmniAb (Tables)
 12 Months Ended
Dec. 31, 2024
Discontinued Operations and Disposal Groups [Abstract]  
Schedule of Carrying Amounts of Major Classes of Assets and Liabilities Related to Assets Held for Sale
We determined that the sale of Pelican meets the definition of a deconsolidation of a business. Net assets sold together with allocated goodwill and cash consideration paid were as follows (in thousands):
Property and equipment, net$8,250 
Intangible assets19,895 
Other assets717 
Operating lease right-of-use assets8,693 
Finance lease right-of-use assets20 
Accrued liabilities(630)
Deferred revenue(495)
Long-term operating lease liabilities(8,445)
Other liabilities(74)
Net assets sold27,931 
Allocated goodwill4,132 
Cash consideration paid15,000 
$47,063 
The following table summarizes revenue and expenses of the discontinued operations for the year ended December 31, 2022 (in thousands):
Year Ended December 31,
2022
Revenues:
Royalties$1,289 
Contract revenue25,275 
Total revenues26,564 
Operating costs and expenses:
Amortization of intangibles10,847 
Research and development38,466 
General and administrative13,383 
Total operating costs and expenses62,696 
Loss from operations(36,132)
Other income (expense):
Gain from short-term investments— 
Interest expense— 
Other income (expense), net554 
Total other expense, net554 
Loss before income tax(35,578)
Income tax benefit7,436 
Net loss$(28,142)
The following table summarizes the significant non-cash items, capital expenditures of the discontinued operations, and financing activities that are included in the consolidated statements of cash flows for the year ended December 31, 2022 (in thousands):
Year Ended December 31,
2022
Operating activities:
Change in fair value of contingent consideration$(554)
Depreciation and amortization13,218 
Stock-based compensation expense9,404 
Investing activities:
Cash paid for acquisition, net of cash acquired
$— 
Purchase of property, plant and equipment(5,572)
Payments to CVR Holders(960)
Financing activities:
Payments to CVR Holders$(1,545)
Supplemental cash flow disclosures:
Purchases of property, plant and equipment included in accounts payable and accrued expenses$2,310 
v3.25.0.1
Financial Royalty Assets, net (formerly known as Commercial License Rights) (Tables)
 12 Months Ended
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Financial Royalty Assets
As of December 31, 2024 and 2023, financial royalty assets consist of the following (in thousands):
December 31, 2024December 31, 2023
Gross carrying value(2)
Allowance (1)
Net carrying value (2)
Gross carrying value
Allowance (1)
Net carrying value
Qarziba
$105,329 $(484)$104,845 $— $— $— 
Agenus (Bot/Bal)40,815 (408)40,407 — — — 
Tolerance Therapeutics (Tzield)25,613 (101)25,512 25,810 (101)25,709 
Ensifentrine inventors15,969 (157)15,812 — — — 
Elutia (CorMatrix)9,418 (2,268)7,150 13,304 (7,490)5,814 
InvIOs1,238 (62)1,176 — — — 
Selexis205 (58)147 940 (179)761 
Ovid (Soticlestat)— — — 30,310 (303)30,007 
Total financial royalty assets, net$198,587 $(3,538)$195,049 $70,364 $(8,073)$62,291 
(1) The amounts of allowance include accumulated allowance for changes in expected cash flows and current expected credit losses.
(2) The amounts include $10.0 million current portion of financial royalty assets which represents an estimation for current quarter royalty receipts that are collected during the subsequent quarter. This portion is presented in other current assets on our consolidated balance sheet as of December 31, 2024.
v3.25.0.1
Balance Sheet Account Details (Tables)
 12 Months Ended
Dec. 31, 2024
Other Balance Sheet Details [Abstract]  
Schedule of Investment Categories
Excluding our investments in Viking, the following table summarizes the various investment categories at December 31, 2024 and 2023 (in thousands):
Cost
Gross unrealized
gains
Gross unrealized
losses
Estimated
fair value
December 31, 2024
Short-term investments
U.S. Treasuries$78,442 $19 $(13)$78,448 
Commercial paper23,483 5 (6)23,482 
Certificates of Deposit22,812 12 (4)22,820 
Corporate notes/bonds15,496 21 (8)15,509 
Corporate equity securities9,954 — (6,595)3,359 
$150,187 $57 $(6,626)$143,618 
December 31, 2023
Short-term investments
Bond fund$63,763 $— $(537)$63,226 
Certificates of Deposit17,165 12 (1)17,176 
Corporate notes/bonds14,850 40 (2)14,888 
Commercial paper 11,578 9 (1)11,586 
U.S. Treasuries6,736 18 (3)6,751 
Municipal bonds1,007 — (4)1,003 
Corporate equity securities5,775 — (5,235)540 
$120,874 $79 $(5,783)$115,170 
Schedule of Available-for-Sale Debt Securities by Contractual Maturity
The following table summarizes our available-for-sale debt securities by contractual maturity (in thousands):
December 31, 2024
Amortized CostFair Value
Within one year$127,296 $127,331 
After one year through five years12,937 12,928 
     Total$140,233 $140,259 
Schedule of Available-for-Sale Debt Securities in an Unrealized Loss Position
The following table summarizes our available-for-sale debt securities in an unrealized loss position (in thousands):
Less than 12 months12 months or greaterTotal
Gross
Unrealized
Losses		Estimated
Fair Value		Gross
Unrealized
Losses		Estimated
Fair Value		Gross
Unrealized
Losses		Estimated
Fair Value
December 31, 2024
Certificates of Deposit$(4)$6,195 $— $— $(4)$6,195 
Corporate notes/bonds(1)866 (7)3,026 (8)3,892 
Commercial paper(6)9,344 — — (6)9,344 
U.S. Treasuries(4)29,965 (9)4,764 (13)34,729 
     Total$(15)$46,370 $(16)$7,790 $(31)$54,160 
December 31, 2023
Certificates of Deposit$(1)$4,175 $— $— $(1)$4,175 
Corporate notes/bonds(1)1,410 (1)1,447 (2)2,857 
Commercial paper(4)10,222 — — (4)10,222 
Municipal bonds(4)1,004 — — (4)1,004 
U.S. Treasuries— 998 (3)1,502 (3)2,500 
     Total$(10)$17,809 $(4)$2,949 $(14)$20,758 
Schedule of Property and Equipment
Property and equipment are stated at cost and consist of the following (in thousands):
December 31,
20242023
Lab and office equipment$6,868 $7,068 
Leasehold improvements10,464 10,363 
Computer equipment and software1,850 716 
Construction in progress4,219 4,115 
23,401 22,262 
Less accumulated depreciation and amortization(8,268)(6,655)
$15,133 $15,607 
Schedule of Goodwill and Other Identifiable Intangible Assets
Goodwill and identifiable intangible assets consist of the following (in thousands):
December 31,
20242023
Indefinite-lived intangible assets
     Goodwill$105,250 $103,370 
Definite-lived intangible assets
     Completed technology39,249 42,911 
          Less: Accumulated amortization(19,710)(20,894)
     Trade name2,642 2,642 
          Less: Accumulated amortization(1,843)(1,710)
     Customer relationships29,600 29,600 
          Less: Accumulated amortization(20,652)(19,161)
     Contractual relationships360,000 360,000 
Less: Accumulated amortization(122,638)(93,782)
Total goodwill and other identifiable intangible assets, net$371,898 $402,976 
Schedule of Derivative Assets at Fair Value
Derivative assets consist of the following (in thousands):
December 31,
20242023
Primrose mRNA$3,451 $3,531 
Agenus Partner Programs6,326 — 
Agenus Warrant (5 years contractual term)
806 — 
     Total noncurrent derivative assets$10,583 $3,531 
Summary Investment Holdings
Other investments consist of the following (in thousands):
December 31,
20242023
Equity securities in Primrose Bio$6,712 $32,726 
InvIOs investment4,196 — 
Neuritek warrants— 3,000 
Palvella Series C preferred stock— 1,000 
     Total other investments$10,908 $36,726 
Schedule of Inventory, Current Below is a summary of the ZELSUVMI related inventory included in other current assets (in thousands):
December 31,
20242023
Work in process$3,923 $195 
Raw materials603 420 
Total Pelthos inventory in other current assets$4,526 $615 
Schedule of Accrued Liabilities
Accrued liabilities consist of the following (in thousands):
 December 31,
 20242023
Royalties owed to third parties$6,500 $900 
Compensation5,522 4,682 
UK value-added tax5,159 — 
Professional fees4,858 2,394 
Subcontractor1,756 1,756 
Customer deposit 621 621 
Supplier— 303 
Amounts owed to former licensees— 45 
Other3,490 1,766 
Total accrued liabilities$27,906 $12,467 
Schedule of Contingent Liabilities
The following table summarizes roll-forward of contingent liabilities as of December 31, 2024 and 2023 (in thousands):
December 31, 2022
PaymentsFair Value Adjustment
December 31, 2023
PaymentsFair Value Adjustment
December 31, 2024
Cydex$84 $(50)$286 $320 $(200)$263 $383 
Metabasis3,429 — (551)2,878 — 420 3,298 
Total $3,513 $(50)$(265)$3,198 $(200)$683 $3,681 
Schedule of Other Long Term Liabilities
Other long-term liabilities consist of the following (in thousands):
 December 31,
 20242023
Novan (Pelthos) contract liability$15,938 $13,700 
Unrecognized tax benefits14,160 14,039 
Other long-term liabilities65 19 
Total other long-term liabilities$30,163 $27,758 
v3.25.0.1
Fair Value Measurement (Tables)
 12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Schedule of Assets and Liabilities Measured at Fair Value
The following table provides a summary of the assets and liabilities that are measured at fair value on a recurring basis as of December 31, 2024 and 2023 (in thousands):
Fair Value Measurements at Reporting Date Using
December 31, 2024
Quoted Prices in
Active Markets
for Identical
Assets
Significant
Other
Observable
Inputs
Significant
Unobservable
Inputs
Total(Level 1)(Level 2)(Level 3)
Assets:
Short-term investments, excluding Viking(1)
$143,618 $81,807 $61,811 $— 
Investment in Viking common stock40,240 40,240 — — 
Derivative assets(2)
10,583 — — 10,583 
     Total assets$194,441 $122,047 $61,811 $10,583 
Liabilities:
Contingent liabilities - CyDex$383 $— $— $383 
Contingent liabilities - Metabasis(3)
3,298 — 3,298 — 
     Total liabilities$3,681 $— $3,298 $383 


Fair Value Measurements at Reporting Date Using
December 31, 2023
Quoted Prices in
Active Markets
for Identical
Assets
Significant
Other
Observable
Inputs
Significant
Unobservable
Inputs
Total(Level 1)(Level 2)(Level 3)
Assets:
Short-term investments, excluding Viking (1)
$115,170 $7,291 $107,879 $— 
Investment in Viking common stock32,185 32,185 — — 
Derivative assets(2)
3,531 — — 3,531 
     Total assets$150,886 $39,476 $107,879 $3,531 
Liabilities:
Contingent liabilities - CyDex$320 $— $— $320 
Contingent liabilities - Metabasis(3)
2,878 — 2,878 — 
     Total liabilities$3,198 $— $2,878 $320 

(1) Excluding our investment in Viking, corporate equity securities, and US government securities, our short-term investments in marketable debt and equity securities are classified as available-for-sale securities based on management's intentions and are at level 2 of the fair value hierarchy, as these investment securities are valued based upon quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Short-term investments in bond funds are valued at their net asset value (NAV) on the last day of the period. We have classified marketable securities with original maturities of greater than one year as short-term investments based upon our ability and intent to use any and all of those marketable securities to satisfy the liquidity needs of our current operations. In addition, we had investment in warrants resulting from Seelos Therapeutics Inc. milestone payments that were settled in shares during the first quarter of 2019 and were at level 3 of the fair value hierarchy, based on Black-Scholes value estimated by management on the last day of the period. This investment in warrants expired in January 2024.
(2) Derivative assets include instruments used for risk-management purposes, and other instruments. Derivative assets which are not used for risk management purposes include: (a) acquired rights in future milestone and royalty payments from Agenus Partnered Programs, (b) Agenus Warrant, (c) Upsize Option, (d) Viking Share Collar (e) and rights to receive from Primrose Bio 50% of milestones on two contracts previously entered into by Primordial Genetics. The considerations were recognized as derivative assets included under current derivative assets and noncurrent derivative assets in our consolidated balance sheet. They are recognized as derivative assets under ASC 815, Derivatives and Hedging. The fair value of the Agenus Partnered Programs and the Primrose Bio derivative assets was determined using a discounted cash flow approach, utilizing the mostly-likely cash flows which considered the probability of success for the underlying clinical programs. The discount rate used contemplates the underlying credit and business risk of the partnered programs. At December 31, 2024, the discount rates used range between 15% and 28%. At December 31, 2023, the discount rate used was 25%. The fair value of the Agenus Warrant was determined using a Black-Scholes-Merton model. The fair value of the Upsize Option was determined using a binomial option pricing model.
(3) In connection with our acquisition of Metabasis in January 2010, we issued Metabasis stockholders four tradable CVRs, one CVR from each of four respective series of CVR, for each Metabasis share. The CVRs entitle Metabasis stockholders to cash payments as frequently as every six months as cash is received by us from proceeds from the sale or partnering of any of the Metabasis drug development programs, among other triggering events. The liability for the CVRs is determined using quoted prices in a market that is not active for the underlying CVR. The carrying amount of the liability may fluctuate
significantly based upon quoted market prices and actual amounts paid under the agreements may be materially different than the carrying amount of the liability. Several of the Metabasis drug development programs have been outlicensed to Viking, including VK2809. VK2809 is a novel selective TR-β agonist with potential in multiple indications, including hypercholesterolemia, dyslipidemia, NASH, and X-ALD. Under the terms of the agreement with Viking, we may be entitled to up to $375 million of development, regulatory and commercial milestones and tiered royalties on potential future sales including a $10 million payment upon initiation of a Phase 3 clinical trial.
Schedule of Reconciliation of Level 3 Financial Instruments, Assets
A reconciliation of the level 3 financial instruments as of December 31, 2024 is as follows (in thousands):
Assets
Fair value of level 3 financial instruments as of December 31, 2023
$3,531 
Additions to derivative assets35,888 
Fair value adjustments to derivative assets(20,010)
Exercise of derivative assets(8,826)
Fair value of level 3 financial instruments as of December 31, 2024
$10,583 
Liabilities
Fair value of level 3 financial instruments as of December 31, 2023
$320 
Payments to CVR holders and other contingent payments (200)
Fair value adjustments to contingent liabilities263 
Fair value of level 3 financial instruments as of December 31, 2024
$383 

A reconciliation of the level 3 financial instruments as of December 31, 2023 is as follows (in thousands):
Assets
Fair value of level 3 financial instruments as of December 31, 2022
$135 
Fair value adjustments to equity security warrants(135)
Additions to derivative assets3,281 
Fair value adjustments to derivative assets250 
Fair value of level 3 financial instruments as of December 31, 2023
$3,531 
Liabilities
Fair value of level 3 financial instruments as of December 31, 2022
$84 
Payments to CVR holders and other contingency payments(50)
Fair value adjustments to contingent liabilities286 
Fair value of level 3 financial instruments as of December 31, 2023
$320 
Schedule of Reconciliation of Level 3 Financial Instruments, Liabilities
A reconciliation of the level 3 financial instruments as of December 31, 2024 is as follows (in thousands):
Assets
Fair value of level 3 financial instruments as of December 31, 2023
$3,531 
Additions to derivative assets35,888 
Fair value adjustments to derivative assets(20,010)
Exercise of derivative assets(8,826)
Fair value of level 3 financial instruments as of December 31, 2024
$10,583 
Liabilities
Fair value of level 3 financial instruments as of December 31, 2023
$320 
Payments to CVR holders and other contingent payments (200)
Fair value adjustments to contingent liabilities263 
Fair value of level 3 financial instruments as of December 31, 2024
$383 

A reconciliation of the level 3 financial instruments as of December 31, 2023 is as follows (in thousands):
Assets
Fair value of level 3 financial instruments as of December 31, 2022
$135 
Fair value adjustments to equity security warrants(135)
Additions to derivative assets3,281 
Fair value adjustments to derivative assets250 
Fair value of level 3 financial instruments as of December 31, 2023
$3,531 
Liabilities
Fair value of level 3 financial instruments as of December 31, 2022
$84 
Payments to CVR holders and other contingency payments(50)
Fair value adjustments to contingent liabilities286 
Fair value of level 3 financial instruments as of December 31, 2023
$320 
v3.25.0.1
Leases (Tables)
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Schedule of Operating and Finance Lease Assets and Liabilities
Operating and finance lease assets and liabilities (in thousands) are as follows:
December 31, 2024December 31, 2023
Assets
Operating lease assets$6,907 $6,062 
Finance lease assets2,766 3,393 
Total lease assets$9,673 $9,455 
Liabilities
Current operating lease liabilities$1,266 $403 
Current finance lease liabilities24 7 
1,290 410 
Long-term operating lease liabilities5,815 5,755 
Long-term finance lease liabilities49 19 
Total lease liabilities $7,154 $6,184 
Schedule of Maturity of Operating Lease Liabilities
Maturity of operating and finance lease liabilities as of December 31, 2024 are as follows (in thousands):
Maturity DatesOperating LeasesFinance
Leases
2025$1,537 $27 
20261,637 27 
20271,634 18 
20281,560 9 
20291,109 3 
Thereafter2,005 — 
Total lease payments9,482 84 
Less tenant improvement allowance(418)— 
Less imputed interest(1,983)(11)
Present value of lease liabilities$7,081 $73 
Schedule of Maturity of Finance Lease Liabilities
Maturity of operating and finance lease liabilities as of December 31, 2024 are as follows (in thousands):
Maturity DatesOperating LeasesFinance
Leases
2025$1,537 $27 
20261,637 27 
20271,634 18 
20281,560 9 
20291,109 3 
Thereafter2,005 — 
Total lease payments9,482 84 
Less tenant improvement allowance(418)— 
Less imputed interest(1,983)(11)
Present value of lease liabilities$7,081 $73 
v3.25.0.1
Stockholders' Equity (Tables)
 12 Months Ended
Dec. 31, 2024
Equity [Abstract]  
Schedule of Share-Based Compensation Expense
The following table summarizes share-based compensation expense from continuing operations (in thousands):
Year Ended December 31,
202420232022
Share-based compensation expense as a component of:
Research and development expenses$3,544 $6,248 $10,970 
General and administrative expenses37,545 19,495 39,911 
$41,089 $25,743 $50,881 
Schedule of Stock Option Plan Activity
Following is a summary of our stock option plan activity and related information:
 
Shares
Weighted
Average
Exercise
Price
Weighted
Average
Remaining
Contractual
Term in
Years
Aggregate
Intrinsic
Value
(In thousands)
Balance at January 1, 20222,199,598 $106.00 6.34$113,302 
Granted863,245 $91.34 
Exercised(34,941)$38.56 
Forfeited(40,069)$78.46 
Balance at October 31, 20222,987,833 $102.92 0$14,835 
Exercisable at October 31, 20221,769,629 $102.38 0$13,722 
Options vested and expected to vest as of October 31, 2022, before the OmniAb Separation and Regrant
2,987,833 $102.92 0$14,835 
Cancellation due to OmniAb Separation, Before Regrant
(2,987,833)
Balance at November 1, 2022, Before Regrant— 
Granted (1)
3,584,760 $60.10 
Exercised(50,449)$30.24 
Forfeited(542,838)$56.20 
Balance at December 31, 20222,991,473 $61.31 6.07$30,477 
Exercisable at December 31, 20221,559,662 $60.83 4.51$17,951 
Options vested and expected to vest as of December 31, 20222,991,473 $61.31 6.07$30,477 
Granted537,432 $72.69 
Exercised(489,076)$45.83 
Forfeited(399,371)$66.61 
Balance at December 31, 20232,640,458 $65.70 5.63$8,784 
Exercisable at December 31, 20231,784,209 $64.90 4.26$7,300 
Options vested and expected to vest as of December 31, 20232,640,458 $65.70 5.63$8,784 
Granted783,064 $86.91 
Exercised(1,080,135)$60.64 
Forfeited(117,114)$74.58 
Balance at December 31, 20242,226,273 $75.14 6.58$71,538 
Exercisable at December 31, 20241,229,294 $72.15 5.02$43,120 
Options vested and expected to vest as of December 31, 20242,226,273 $75.14 6.58$71,538 
(1) Options granted primarily relate to the modifications in connection with the OmniAb Separation which resulted in new stock option grants at the modification date fair value.
Schedule of Stock Option Plan Activity by Exercise Price Range
Following is a further breakdown of the options outstanding as of December 31, 2024:
Range of exercise prices
Options
outstanding
Weighted
average
remaining life
in years
Weighted 
average
exercise price
Options
exercisable
Weighted 
average
exercise price
$32.78-$52.84
281,644 5.78$49.42 195,152 $48.02 
$54.81-$63.62
228,498 4.10$58.54 191,316 $58.32 
$64.65-$68.74
312,067 5.12$67.47 245,199 $67.67 
$69.39-$73.76
233,288 7.66$70.78 125,319 $71.02 
$73.92-$75.09
288,134 7.73$74.76 105,797 $74.88 
$78.56-$88.27
155,478 8.57$82.22 32,249 $81.71 
$89.20-$89.20
444,229 8.35$89.20 103,190 $89.20 
$89.86-$103.42
244,385 4.64$98.53 218,106 $98.24 
$104.30-$114.15
28,290 6.73$110.98 12,966 $114.15 
$122.70-$122.70
10,260 9.92$122.70 — $— 
2,226,273 6.58$75.14 1,229,294 $72.15 
Schedule of Stock Option Weighted-Average Assumptions
The assumptions used for the specified reporting periods and the resulting estimates of weighted-average grant date fair value per share of options granted:
 Year Ended December 31,
 
2024
2023
2022
Risk-free interest rate
3.5%-4.5%
3.7%-4.6%
1.4%-4.3%
Expected volatility
44%-46%
45%-54%
49%-55%
Expected term
4.1 to 4.8 years
4.7 to 5.3 years
2.0 to 6.5 years
Schedule of Restricted Stock Activity
The following is a summary of our restricted stock activity and related information: 
Shares
Weighted-Average
Grant Date Fair
Value
Outstanding at December 31, 2022348,453 $75.60 
Granted203,752 $83.39 
Vested(181,246)$74.62 
Forfeited(20,054)$65.35 
Outstanding at December 31, 2023350,905 $81.22 
Granted318,588 $85.23 
Vested(167,308)$84.28 
Forfeited(64,313)$77.28 
Outstanding at December 31, 2024437,872 $83.55 
v3.25.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Benefit
For the years ended December 31, 2024, 2023, and 2022, the Company has the following income before income tax from continuing operations (in thousands):
Year Ended December 31,
202420232022
Domestic$(25,855)$62,140 $33,339 
Foreign28,373 1,520 2,672 
Income before income tax from continuing operations2,518 63,660 36,011 
The components of the income tax expense (benefit) for continuing operations are as follows (in thousands):
 Year Ended December 31,
 202420232022
Current expense (benefit):
Federal$18,277 $(1,186)$10,097 
State718 218 193 
Foreign3,355 780 452 
22,350 (188)10,742 
Deferred expense (benefit):
Federal(17,767)9,374 (3,656)
State77 655 34,144 
Foreign1,890 — — 
(15,800)10,029 30,488 
Total income tax expense (benefit)$6,550 $9,841 $41,230 
Schedule of Effective Income Tax Rate Reconciliation
A reconciliation of income tax expense (benefit) from continuing operations to the amount computed by applying the statutory federal income tax rate to the net income (loss) from continuing operations is summarized as follows (in thousands):
 
 Year Ended December 31,
 202420232022
Tax at federal statutory rate$529 $13,448 $7,562 
Subpart F income5,649 479 853 
Officer compensation3,921 844 5,869 
Foreign tax differential on income/loss of foreign subsidiaries1,115 (38)103 
Share-based compensation602 1,241 1,279 
Provision to return adjustments293 2,200 2,232 
Rate change for changes in federal, foreign or state law111 342 (535)
Contingent liabilities88 (116)15 
Change in uncertain tax positions94 (7,206)(158)
Debt repurchases— — 626 
State, net of federal benefit(85)397 264 
Research and development credits(324)(405)256 
FDII(832)(1,037)(2,395)
Change in valuation allowance(1,638)(1,184)24,799 
Foreign tax credits(3,232)— — 
Other259 876 460 
$6,550 $9,841 $41,230 
Schedule of Deferred Tax Assets and Liabilities Deferred tax assets (liabilities) are comprised of the following (in thousands):
 December 31,
 20242023
Deferred tax assets:
Net operating loss carryforwards$40,385 $45,702 
Research credit carryforwards24,404 26,611 
Capitalized R&D7,090 4,550 
Stock compensation10,726 11,886 
Other13,733 15,012 
96,338 103,761 
Valuation allowance for deferred tax assets(55,649)(57,699)
Net deferred tax assets40,689 46,062 
Deferred tax liabilities:
Identified intangibles(69,150)(66,966)
     Other(3,991)(10,504)
Net deferred tax liabilities(73,141)(77,470)
Deferred income taxes, net$(32,452)$(31,408)
Schedule of Unrecognized Tax Benefits
A reconciliation of the amount of unrecognized tax benefits at December 31, 2024, 2023 and 2022 is as follows (in thousands):
December 31,
202420232022
Balance at beginning of year$22,363 $29,096 $29,550 
     Additions based on tax positions related to the current year27 47 58 
     Additions for tax positions of prior years477 3 — 
     Reductions for tax positions of prior years(396)(6,783)(512)
Balance at end of year$22,471 $22,363 $29,096 
v3.25.0.1
Basis of Presentation and Summary of Significant Accounting Policies - Segment Profit or Loss (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Revenue, Major Customer      
Total revenues and other income $ 167,133 $ 131,314 $ 196,245
Share-based compensation (41,089) (25,743) (60,285)
Other segment items:      
Amortization of intangibles (32,959) (33,654) (34,237)
Depreciation of property and equipment (2,300) (2,900) (3,800)
Interest expense (3,037) (656) (1,799)
Net income (loss) from continuing operations (22,606) 11,942 3,037
Other expense items, net 56,700 48,700 42,000
Development and Licensing of Biopharmaceutical Assets      
Revenue, Major Customer      
Total revenues and other income 167,133 131,314 196,245
Share-based compensation (41,089) (25,743) (60,285)
Other segment items:      
Amortization of intangibles (32,959) (33,654) (34,237)
Depreciation of property and equipment (2,300) (2,905) (3,841)
Interest income 8,055 7,711 2,046
Interest expense (3,037) (656) (1,799)
Other (99,835) (22,248) (103,348)
Net income (loss) from continuing operations $ (4,032) $ 53,819 $ (5,219)
v3.25.0.1
Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Details)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2024
USD ($)
segment
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Dec. 31, 2007
$ / shares
May 29, 2024
USD ($)
Sep. 18, 2023
contract
Jan. 31, 2010
right
Basis of Presentation              
Number of operating segments | segment 1            
Number of reportable segment | segment 1            
Increase (decrease) of allowance for credit loss $ (100) $ 200 $ (300)        
Write-downs related to obsolete inventory 200 200 $ 1,100        
Inventory 14,114 23,969          
Revenue recognized $ 1,300 100          
Dividend declared (in USD per share) | $ / shares       $ 2.50      
Agenus Partnered Program              
Basis of Presentation              
Additional maximum investment         $ 25,000    
Percentage of milestones (as a percent)           50.00%  
Agenus Partnered Program | Primordial Genetics              
Basis of Presentation              
Number of contracts | contract           2  
Dividend yield              
Basis of Presentation              
Measurement input (as a percent) 0            
PSUs              
Basis of Presentation              
Award vesting period (in years) 3 years            
Stock options | 2002 Stock Incentive Plan              
Basis of Presentation              
Award expiration period (in years) 10 years            
Stock options | 2002 Stock Incentive Plan | Vest 1/8 on the six month anniversary of the date of grant              
Basis of Presentation              
Award vesting period (in years) 6 months            
Award vesting right (as a percent) 12.50%            
Stock options | 2002 Stock Incentive Plan | Vest 1/48 each month for forty-two months              
Basis of Presentation              
Award vesting period (in years) 42 months            
Award vesting right (as a percent) 2.08%            
RSUs and PSUs              
Basis of Presentation              
Award vesting period (in years) 3 years            
Metabasis Therapeutics              
Basis of Presentation              
Number of contingent value rights | right             4
Minimum              
Basis of Presentation              
Property and equipment, useful life (in years) 1 year            
Minimum | PSUs              
Basis of Presentation              
Award vesting right (as a percent) 0.00%            
Maximum              
Basis of Presentation              
Property and equipment, useful life (in years) 9 years            
Maximum | PSUs              
Basis of Presentation              
Award vesting right (as a percent) 200.00%            
Captisol              
Basis of Presentation              
Inventory $ 3,100 $ 4,600          
v3.25.0.1
Basis of Presentation and Summary of Significant Accounting Policies - Revenue from Significant Partners (Details) - Customer Concentration Risk - Revenue
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Partner A      
Revenue, Major Customer      
Total revenues (as a percent) 23.00% 33.00% 45.00%
Partner B      
Revenue, Major Customer      
Total revenues (as a percent) 12.00% 20.00% 16.00%
Partner C      
Revenue, Major Customer      
Total revenues (as a percent) 10.00% 10.00% 10.00%
Recordati      
Revenue, Major Customer      
Total revenues (as a percent) 54.00%    
v3.25.0.1
Basis of Presentation and Summary of Significant Accounting Policies - Royalty Revenue (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Disaggregation of Revenue      
Total revenues and other income $ 167,133 $ 131,314 $ 196,245
Royalties      
Disaggregation of Revenue      
Total revenues and other income 108,773 84,959 72,912
Kyprolis      
Disaggregation of Revenue      
Total revenues and other income 38,377 35,640 30,116
Rylaze      
Disaggregation of Revenue      
Total revenues and other income 13,743 13,520 8,796
Filspari      
Disaggregation of Revenue      
Total revenues and other income 12,179 2,655 0
Evomela      
Disaggregation of Revenue      
Total revenues and other income 8,680 10,212 10,197
Teriparatide injection      
Disaggregation of Revenue      
Total revenues and other income 8,221 11,061 15,785
Vaxneuvance      
Disaggregation of Revenue      
Total revenues and other income 5,184 4,062 1,083
Other      
Disaggregation of Revenue      
Total revenues and other income 8,945 6,760 6,550
Revenue from intangible royalty assets      
Disaggregation of Revenue      
Total revenues and other income 95,329 83,910 72,527
Income from financial royalty assets      
Disaggregation of Revenue      
Total revenues and other income 13,444 1,049 385
Captisol      
Disaggregation of Revenue      
Total revenues and other income 30,883 28,372 104,495
Captisol - Core      
Disaggregation of Revenue      
Total revenues and other income 30,883 28,372 16,429
Captisol - COVID      
Disaggregation of Revenue      
Total revenues and other income 0 0 88,066
Contract revenue and other income      
Disaggregation of Revenue      
Total revenues and other income 27,477 17,983 18,838
Milestone and other      
Disaggregation of Revenue      
Total revenues and other income 25,533 17,983 18,838
Other income      
Disaggregation of Revenue      
Total revenues and other income $ 1,944 $ 0 $ 0
v3.25.0.1
Basis of Presentation and Summary of Significant Accounting Policies - Calculation of Earnings per Share (Details) - shares
shares in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Earnings Per Share, Diluted, by Common Class, Including Two Class Method      
Weighted-average common shares outstanding - basic (in shares) 18,290 17,298 16,868
Shares used to compute diluted income per share (in shares) 18,290 17,757 16,868
Potentially dilutive shares excluded from calculation due to anti-dilutive effect (shares) 1,530 4,357 6,241
Restricted stock      
Earnings Per Share, Diluted, by Common Class, Including Two Class Method      
Dilutive potential common shares (in shares) 0 85 0
Stock options      
Earnings Per Share, Diluted, by Common Class, Including Two Class Method      
Dilutive potential common shares (in shares) 0 255 0
Convertible Debt Securities      
Earnings Per Share, Diluted, by Common Class, Including Two Class Method      
Dilutive potential common shares (in shares) 0 119 0
v3.25.0.1
Agenus Transaction (Details)
$ in Thousands
May 29, 2024
USD ($)
$ / shares
shares
Dec. 31, 2024
USD ($)
$ / shares
Dec. 31, 2023
USD ($)
Asset Acquisition [Line Items]      
Royalty assets   $ 195,049 $ 62,291
Agenus, Inc.      
Asset Acquisition [Line Items]      
Royalty assets $ 75,000 $ 40,407 $ 0
Royalties right to receive (as a percent) 18.75%    
Maximum capital sourcing $ 100,000    
Maximum financing royalty asset $ 200,000    
Warrants term (in years) 5 years    
Warrants issued in public offering (in shares) | shares 867,052    
Exercise price of warrants (in USD per share) | $ / shares $ 17.30    
Agenus, Inc. | Expected Term      
Asset Acquisition [Line Items]      
Derivative liability, measurement input 4.0 3.4  
Agenus, Inc. | Option Volatility      
Asset Acquisition [Line Items]      
Derivative liability, measurement input 0.84 1.02  
Agenus, Inc. | Risk Free Interest Rate      
Asset Acquisition [Line Items]      
Derivative liability, measurement input 0.047 0.043  
Agenus, Inc. | Share Price      
Asset Acquisition [Line Items]      
Derivative liability, measurement input | $ / shares 15.03 2.74  
Agenus, Inc. | BMS-986442      
Asset Acquisition [Line Items]      
Future milestones right to receive (as a percent) 31.875%    
Agenus, Inc. | AGEN2373      
Asset Acquisition [Line Items]      
Future milestones right to receive (as a percent) 31.875%    
Agenus, Inc. | INCAGN2385      
Asset Acquisition [Line Items]      
Future milestones right to receive (as a percent) 31.875%    
Agenus, Inc. | INCAGN2390      
Asset Acquisition [Line Items]      
Future milestones right to receive (as a percent) 31.875%    
Agenus, Inc. | MK-4830      
Asset Acquisition [Line Items]      
Future milestones right to receive (as a percent) 31.875%    
Agenus, Inc. | UGN-301      
Asset Acquisition [Line Items]      
Future milestones right to receive (as a percent) 31.875%    
Agenus, Inc. | BOT/BAL      
Asset Acquisition [Line Items]      
Future royalties (as a percent) 2.625%    
Agenus Partnered Program      
Asset Acquisition [Line Items]      
Additional maximum investment $ 25,000    
Fair value of derivative assets $ 21,300    
v3.25.0.1
Acquisitions - Narrative (Details)
€ in Millions
 12 Months Ended
Jul. 15, 2024
USD ($)
Jul. 15, 2024
EUR (€)
Sep. 27, 2023
USD ($)
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Business Acquisition            
Cash paid for InvIOs investment       $ 4,196,000 $ 0 $ 0
Intangible assets           $ 0
InvIOs Holding AG            
Business Acquisition            
Cash paid for InvIOs investment $ 4,200,000          
Equity issuance cost 200,000          
InvIOs Holding AG | Investor            
Business Acquisition            
Cash paid for InvIOs investment 8,800,000 € 8        
APEIRON            
Business Acquisition            
Consideration transferred 100,500,000          
Contingent earn-out payment 28,000,000          
Deferred transaction costs 4,900,000          
Deferred tax liability $ 18,109,000          
Intangible assets       $ 0    
Novan, Inc.            
Business Acquisition            
Consideration transferred     $ 12,150,000      
Cash payments for acquisition     15,000,000      
Liabilities incurred     15,000,000      
Intangible assets     $ 10,700,000   10,700,000  
Acquired (as a percent)     10.30%      
Cash acquired from acquisition     $ 2,800,000      
Acquisition related costs         $ 3,100,000  
Goodwill acquired that is expected to be deductible for tax purposes     $ 0      
Discount rate used to value intangible assets acquired (as a percent)     29.00%      
Weighted-average estimated useful life of finite-lived intangible assets acquired (in years)     15 years      
Other liabilities     $ 13,700,000      
Research and development     $ 25,000,000      
Novan, Inc. | Discount Rate | Valuation Technique, Discounted Cash Flow            
Business Acquisition            
Contingent liability measurement input (as a percent)     0.14      
Novan, Inc. | Core Technology            
Business Acquisition            
Intangible assets     $ 12,200,000      
Novan, Inc. | Bridge Loan            
Business Acquisition            
Liabilities incurred     $ 3,000,000      
v3.25.0.1
Acquisitions - Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Jul. 15, 2024
Dec. 31, 2022
Business Acquisition      
Contract assets (financial royalty assets)     $ 0
APEIRON      
Business Acquisition      
Cash and cash equivalents   $ 13,437  
Contract assets (financial royalty assets) $ 106,156 106,156  
Other assets   8,965  
Accounts payable and accrued liabilities   (3,740)  
Income tax payable   (1,276)  
Deferred tax liabilities, net   (18,109)  
Total fair value of net assets acquired   $ 105,433  
v3.25.0.1
Acquisitions - Assets Acquired and Liabilities Assumed (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 27, 2023
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Business Acquisition        
Intangible assets acquired       $ 0
Goodwill   $ 105,250 $ 103,370 0
Cash paid for Novan, including restricted cash received   $ 0 10,405 $ 0
Novan, Inc.        
Business Acquisition        
Restricted cash $ 583      
Property and equipment, net 13,054      
Operating lease right-of-use asset 3,683      
Other assets 137      
Deferred tax asset 1,013      
Intangible assets acquired 10,700   10,700  
Goodwill 3,709   3,709  
Deferred revenue (4,508)      
Operating lease liabilities (3,683)      
Other liabilities (13,700)      
Cash paid for Novan, including restricted cash received 10,988   $ 10,405  
DIP loan fees and interest 1,162      
Total consideration $ 12,150      
v3.25.0.1
Sale of Pelican Business and Investment in Primrose Bio - Narrative (Details)
 12 Months Ended
Sep. 18, 2023
USD ($)
contract
shares
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Jan. 01, 2025
USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations          
Gain on sale of business   $ 0 $ 2,121,000 $ 0  
Noncurrent derivative assets $ 3,200,000 $ 10,583,000 3,531,000    
Derivative Asset Noncurrent, Statement Of Financial Position, Extensible Enumeration, Not Disclosed Flag   consolidated balance sheets      
Gain (loss) on derivative instruments   $ (20,010,000) 250,000 0  
Losses from equity method investment in Primrose Bio   12,821,000 1,829,000 $ 0  
Primrose Bio          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations          
Impairment of equity method investment   5,800,000 0    
Losses from equity method investment in Primrose Bio   7,000,000 1,800,000    
Decrease in value of investment   (25,800,000)      
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Pelican Technology Holdings, Inc.          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations          
Consideration paid for an interest in potential development milestone 15,000,000        
Goodwill written off     4,100,000    
Gain on sale of business     2,100,000    
Business exit costs $ 1,200,000        
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Pelican Technology Holdings, Inc. | Restricted stock          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations          
Shares received as consideration | shares 474,746        
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Pelican Technology Holdings, Inc. | Common Stock          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations          
Shares received as consideration | shares 2,146,957        
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Pelican Technology Holdings, Inc. | Preferred Stock          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations          
Shares received as consideration | shares 4,278,293        
Primrose Bio          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations          
Consideration paid for an interest in potential development milestone $ 15,000,000        
Noncurrent derivative assets   3,451,000 3,531,000    
Agenus Partnered Program          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations          
Percentage of milestones (as a percent) 50.00%        
Forecast | Primrose Bio | PeliCRM197          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations          
Sales revenue milestone         $ 3,000,000
Forecast | Primrose Bio | PeliCRM197 | Below 3 million          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations          
Interest in sales revenue (as a percent)         25.00%
Forecast | Primrose Bio | PeliCRM197 | Above 3 million          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations          
Interest in sales revenue (as a percent)         35.00%
Primordial Genetics | Agenus Partnered Program          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations          
Number of contracts | contract 2        
Gain (loss) on derivative instruments   $ (100,000) $ 300,000    
v3.25.0.1
Sale of Pelican Business and Investment in Primrose Bio - Net Asset (Details) - Disposal Group, Disposed of by Sale, Not Discontinued Operations - Pelican Technology Holdings, Inc.
$ in Thousands
Sep. 18, 2023
USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations  
Property and equipment, net $ 8,250
Intangible assets 19,895
Other assets 717
Operating lease right-of-use assets 8,693
Finance lease right-of-use assets 20
Accrued liabilities (630)
Deferred revenue (495)
Long-term operating lease liabilities (8,445)
Other liabilities (74)
Net assets sold 27,931
Allocated goodwill 4,132
Cash consideration paid 15,000
Total $ 47,063
v3.25.0.1
Sale of Pelican Business and Investment in Primrose Bio - Fair Value of the Consideration (Details) - Disposal Group, Disposed of by Sale, Not Discontinued Operations - Pelican Technology Holdings, Inc.
$ in Thousands
Sep. 18, 2023
USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations  
Cash consideration paid $ 49,184
Equity method investment  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations  
Cash consideration paid 13,706
Equity securities  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations  
Cash consideration paid 32,278
Derivative assets  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations  
Cash consideration paid $ 3,200
v3.25.0.1
Spin-off of OmniAb - Narrative (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Oct. 26, 2022
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations      
Deferred tax asset adjustment $ 40,689 $ 46,062  
Scenario, Adjustment      
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations      
Deferred tax asset adjustment   $ (1,700)  
Discontinued Operations      
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations      
Percentage of voting interests disposed (as a percent)     1
v3.25.0.1
Spin-off of OmniAb - Schedule of Revenue and Expenses of the Discontinued Operations (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Other income (expense):    
Net loss $ (1,665) $ (28,142)
Discontinued Operations    
Revenues:    
Total revenues   26,564
Operating costs and expenses:    
Amortization of intangibles   10,847
Research and development   38,466
General and administrative   13,383
Total operating costs and expenses   62,696
Loss from operations   (36,132)
Other income (expense):    
Gain from short-term investments   0
Interest expense   0
Other income (expense), net   554
Total other expense, net   554
Loss before income tax   (35,578)
Income tax benefit   7,436
Net loss   (28,142)
Discontinued Operations | Royalties    
Revenues:    
Total revenues   1,289
Discontinued Operations | Contract revenue    
Revenues:    
Total revenues   $ 25,275
v3.25.0.1
Spin-off of OmniAb - Schedule of Non-cash Items and Capital Expenditures of the Discontinued Operations (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Financing activities:      
Payments to CVR Holders $ 0 $ 0 $ (1,545)
Discontinued Operations      
Operating activities:      
Change in fair value of contingent consideration     (554)
Depreciation and amortization     13,218
Stock-based compensation expense     9,404
Investing activities:      
Cash paid for acquisition, net of cash acquired     0
Purchase of property, plant and equipment     (5,572)
Payments to CVR Holders     (960)
Financing activities:      
Payments to CVR Holders     (1,545)
Supplemental cash flow disclosures:      
Purchases of property, plant and equipment included in accounts payable and accrued expenses     $ 2,310
v3.25.0.1
Financial Royalty Assets, net (formerly known as Commercial License Rights) - Schedule of Financial Royalty Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Aug. 31, 2024
May 29, 2024
Mar. 31, 2024
Dec. 31, 2023
Finite-Lived Intangible Assets          
Gross carrying value $ 198,587       $ 70,364
Allowance (3,538)       (8,073)
Net carrying value 195,049       62,291
Financial royalty liability current 10,000        
Qarziba          
Finite-Lived Intangible Assets          
Gross carrying value 105,329       0
Allowance (484)       0
Net carrying value 104,845       0
Agenus (Bot/Bal)          
Finite-Lived Intangible Assets          
Gross carrying value 40,815       0
Allowance (408)       0
Net carrying value 40,407   $ 75,000   0
Tolerance Therapeutics (Tzield)          
Finite-Lived Intangible Assets          
Gross carrying value 25,613       25,810
Allowance (101)       (101)
Net carrying value 25,512       25,709
Ensifentrine inventors          
Finite-Lived Intangible Assets          
Gross carrying value 15,969 $ 13,600   $ 3,800 0
Allowance (157)       0
Net carrying value 15,812       0
Elutia (CorMatrix)          
Finite-Lived Intangible Assets          
Gross carrying value 9,418       13,304
Allowance (2,268)       (7,490)
Net carrying value 7,150       5,814
InvIOs          
Finite-Lived Intangible Assets          
Gross carrying value 1,238       0
Allowance (62)       0
Net carrying value 1,176       0
Selexis          
Finite-Lived Intangible Assets          
Gross carrying value 205       940
Allowance (58)       (179)
Net carrying value 147       761
Ovid (Soticlestat)          
Finite-Lived Intangible Assets          
Gross carrying value 0       30,310
Allowance 0       (303)
Net carrying value $ 0       $ 30,007
v3.25.0.1
Financial Royalty Assets, net (formerly known as Commercial License Rights) - Narrative (Details) - USD ($)
 1 Months Ended 12 Months Ended
May 31, 2017
Nov. 30, 2023
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Aug. 31, 2024
Jul. 15, 2024
Mar. 31, 2024
Oct. 31, 2023
Finite-Lived Intangible Assets                  
Impairment loss of financial royalty assets     $ 30,572,000 $ 924,000 $ 0        
Financial royalty assets         $ 0        
Gross carrying value     198,587,000 70,364,000          
Tolerance Therapeutics (Tzield)                  
Finite-Lived Intangible Assets                  
Cash payments for acquisition   $ 20,000,000              
Product royalty (as a percent)   1.00%              
Deferred tax liability   $ 5,500,000              
APEIRON                  
Finite-Lived Intangible Assets                  
Financial royalty assets     106,156,000       $ 106,156,000    
Deferred tax liability             18,109,000    
InvIOs | APEIRON                  
Finite-Lived Intangible Assets                  
Financial royalty assets             1,300,000    
Qarziba | APEIRON                  
Finite-Lived Intangible Assets                  
Financial royalty assets             $ 104,900,000    
Ovid (Soticlestat)                  
Finite-Lived Intangible Assets                  
Impairment loss of financial royalty assets     30,300,000            
Gross carrying value     0 30,310,000          
Ovid (Soticlestat) | Soticlestat                  
Finite-Lived Intangible Assets                  
Consideration paid for an interest in potential development milestone                 $ 30,000,000
Interest in sales revenue (as a percent)                 13.00%
Selexis                  
Finite-Lived Intangible Assets                  
Impairment loss of financial royalty assets     300,000 900,000          
Gross carrying value     205,000 940,000          
Elutia (CorMatrix)                  
Finite-Lived Intangible Assets                  
Product royalty (as a percent) 5.00%                
Gross carrying value     9,418,000 13,304,000          
Proceeds from royalties received $ 10,000,000                
(Reduction) credit loss adjustment     (5,200,000) 3,200,000          
Elutia (CorMatrix) | Maximum                  
Finite-Lived Intangible Assets                  
Additional royalties receivable under sales-based milestones $ 10,000,000                
Ensifentrine inventors                  
Finite-Lived Intangible Assets                  
Gross carrying value     $ 15,969,000 $ 0   $ 13,600,000   $ 3,800,000  
v3.25.0.1
Balance Sheet Account Details - Investment Categories (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Debt Securities, Available-for-sale    
Cost $ 150,187 $ 120,874
Gross unrealized gains 57 79
Gross unrealized losses (6,626) (5,783)
Estimated fair value 143,618 115,170
U.S. Treasuries    
Debt Securities, Available-for-sale    
Cost 78,442 6,736
Gross unrealized gains 19 18
Gross unrealized losses (13) (3)
Estimated fair value 78,448 6,751
Bond fund    
Debt Securities, Available-for-sale    
Cost   63,763
Gross unrealized gains   0
Gross unrealized losses   (537)
Estimated fair value   63,226
Commercial paper    
Debt Securities, Available-for-sale    
Cost 23,483 11,578
Gross unrealized gains 5 9
Gross unrealized losses (6) (1)
Estimated fair value 23,482 11,586
Certificates of Deposit    
Debt Securities, Available-for-sale    
Cost 22,812 17,165
Gross unrealized gains 12 12
Gross unrealized losses (4) (1)
Estimated fair value 22,820 17,176
Corporate notes/bonds    
Debt Securities, Available-for-sale    
Cost 15,496 14,850
Gross unrealized gains 21 40
Gross unrealized losses (8) (2)
Estimated fair value 15,509 14,888
Corporate equity securities    
Debt Securities, Available-for-sale    
Cost 9,954 5,775
Gross unrealized gains 0 0
Gross unrealized losses (6,595) (5,235)
Estimated fair value $ 3,359 540
Municipal bonds    
Debt Securities, Available-for-sale    
Cost   1,007
Gross unrealized gains   0
Gross unrealized losses   (4)
Estimated fair value   $ 1,003
v3.25.0.1
Balance Sheet Account Details - Available-for-Sale Debt Securities by Contractual Maturity (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
Amortized Cost  
Within one year $ 127,296
After one year through five years 12,937
Total 140,233
Fair Value  
Within one year 127,331
After one year through five years 12,928
Total $ 140,259
v3.25.0.1
Balance Sheet Account Details - Available-for-Sale Debt Securities in an Unrealized Loss Position (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Gross Unrealized Losses    
Less than 12 months $ (15) $ (10)
12 months or greater (16) (4)
Total (31) (14)
Estimated Fair Value    
Less than 12 months 46,370 17,809
12 months or greater 7,790 2,949
Total 54,160 20,758
Certificates of Deposit    
Gross Unrealized Losses    
Less than 12 months (4) (1)
12 months or greater 0 0
Total (4) (1)
Estimated Fair Value    
Less than 12 months 6,195 4,175
12 months or greater 0 0
Total 6,195 4,175
Corporate notes/bonds    
Gross Unrealized Losses    
Less than 12 months (1) (1)
12 months or greater (7) (1)
Total (8) (2)
Estimated Fair Value    
Less than 12 months 866 1,410
12 months or greater 3,026 1,447
Total 3,892 2,857
Commercial paper    
Gross Unrealized Losses    
Less than 12 months (6) (4)
12 months or greater 0 0
Total (6) (4)
Estimated Fair Value    
Less than 12 months 9,344 10,222
12 months or greater 0 0
Total 9,344 10,222
Municipal bonds    
Gross Unrealized Losses    
Less than 12 months   (4)
12 months or greater   0
Total   (4)
Estimated Fair Value    
Less than 12 months   1,004
12 months or greater   0
Total   1,004
U.S. Treasuries    
Gross Unrealized Losses    
Less than 12 months (4) 0
12 months or greater (9) (3)
Total (13) (3)
Estimated Fair Value    
Less than 12 months 29,965 998
12 months or greater 4,764 1,502
Total $ 34,729 $ 2,500
v3.25.0.1
Balance Sheet Account Details - Narrative (Details)
 3 Months Ended 12 Months Ended
Jun. 30, 2024
USD ($)
Dec. 31, 2024
USD ($)
position
$ / shares
shares
Dec. 31, 2023
USD ($)
shares
Dec. 31, 2022
USD ($)
shares
Dec. 16, 2024
shares
Schedule of Investments          
Number of positions in an unrealized loss position | position   45      
Unrealized losses   $ 31,000 $ 14,000    
Amortized cost $ 50,000.00        
Credit losses related to available-for-sale debt securities   0 0    
Investment in Viking common stock   40,200,000 32,200,000    
Gain from short-term investments   75,024,000 46,365,000 $ 28,540,000  
Depreciation expense   2,300,000 2,900,000 3,800,000  
Amortization of intangibles   32,959,000 33,654,000 34,237,000  
Estimated amortization expense for 2025   32,700,000      
Estimated amortization expense for 2026   32,700,000      
Estimated amortization expense for 2027   32,700,000      
Estimated amortization expense for 2028   32,700,000      
Estimated amortization expense for 2029   32,700,000      
Impairment loss of financial royalty assets   0 0 0  
Fair value adjustments to partner program derivatives   $ (15,055,000) $ 0 0  
Preferred stock outstanding (in shares) | shares   0 0    
Received amount expended   $ 21,425,000 $ 24,537,000 $ 36,082,000  
Financial royalty liability current   10,000,000.0      
Vikings          
Schedule of Investments          
Vikings common stock outstanding   1,000,000.0      
Series C Preferred Stock          
Schedule of Investments          
Exchange ratio         0.3095
Preferred stock outstanding (in shares) | shares         189,112
Common Stock          
Schedule of Investments          
Convertible preferred stock (in shares) | shares         58,524
Other Derivatives          
Schedule of Investments          
Fair value adjustments to partner program derivatives   (12,100,000)      
Collars | Vikings          
Schedule of Investments          
Fair value adjustments to partner program derivatives   7,100,000      
Primrose Bio          
Schedule of Investments          
Fair value adjustments to partner program derivatives   (100,000) $ 300,000    
Palvella          
Schedule of Investments          
Convertible note $ 2,500,000        
Convertible note maturity period (in years) 3 years        
Preferred stock shares, amount   $ 2,600,000      
Shares issued upon conversion of preferred stock (in shares) | shares   184,595      
Debt conversion price per share (in USD per share) | $ / shares   $ 13.9965      
Palvella | Royalty Agreements          
Schedule of Investments          
Additional royalties receivable under sales-based milestones   $ 5,000,000      
Received amount expended   1,200,000      
Agenus, Inc. | Partner Programs          
Schedule of Investments          
Fair value adjustments to partner program derivatives   $ (15,000,000.0)      
Viking Therapeutics, Inc.          
Schedule of Investments          
Stock sold of equity method investee (in shares) | shares   700,000 5,000,000.0 0  
Gain from short-term investments   $ 60,000,000.0 $ 44,400,000    
Minimum          
Schedule of Investments          
Property and equipment, useful life (in years)   1 year      
Minimum | Palvella          
Schedule of Investments          
Interest in sales revenue (as a percent)   8.00%      
Maximum          
Schedule of Investments          
Property and equipment, useful life (in years)   9 years      
Finite-lived intangible asset, useful life (in years)   20 years      
Maximum | Palvella          
Schedule of Investments          
Interest in sales revenue (as a percent)   9.80%      
v3.25.0.1
Balance Sheet Account Details - Property and Equipment (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Property, Plant and Equipment    
Property and equipment , gross $ 23,401 $ 22,262
Less accumulated depreciation and amortization (8,268) (6,655)
Property and equipment, net 15,133 15,607
Lab and office equipment    
Property, Plant and Equipment    
Property and equipment , gross 6,868 7,068
Leasehold improvements    
Property, Plant and Equipment    
Property and equipment , gross 10,464 10,363
Computer equipment and software    
Property, Plant and Equipment    
Property and equipment , gross 1,850 716
Construction in progress    
Property, Plant and Equipment    
Property and equipment , gross $ 4,219 $ 4,115
v3.25.0.1
Balance Sheet Account Details - Goodwill and Other Intangible Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Finite-Lived Intangible Assets      
Goodwill $ 105,250 $ 103,370 $ 0
Total goodwill and other identifiable intangible assets, net 371,898 402,976  
Completed technology      
Finite-Lived Intangible Assets      
Definite-lived intangible assets 39,249 42,911  
Less: Accumulated amortization (19,710) (20,894)  
Trade name      
Finite-Lived Intangible Assets      
Definite-lived intangible assets 2,642 2,642  
Less: Accumulated amortization (1,843) (1,710)  
Customer relationships      
Finite-Lived Intangible Assets      
Definite-lived intangible assets 29,600 29,600  
Less: Accumulated amortization (20,652) (19,161)  
Contractual relationships      
Finite-Lived Intangible Assets      
Definite-lived intangible assets 360,000 360,000  
Less: Accumulated amortization $ (122,638) $ (93,782)  
v3.25.0.1
Balance Sheet Account Details - Schedule of Derivative Assets (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Sep. 18, 2023
Derivative [Line Items]      
Total noncurrent derivative assets $ 10,583 $ 3,531 $ 3,200
Primrose Bio      
Derivative [Line Items]      
Total noncurrent derivative assets 3,451 3,531  
Partner Programs | Agenus, Inc.      
Derivative [Line Items]      
Total noncurrent derivative assets 6,326 0  
Equity Option | Agenus, Inc.      
Derivative [Line Items]      
Total noncurrent derivative assets $ 806 $ 0  
Derivative, term of contract (in years) 5 years    
v3.25.0.1
Balance Sheet Account Details - Other Investment (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Sep. 30, 2024
Dec. 31, 2023
Summary of Investment Holdings      
Total other investments $ 10,908 $ 10,908 $ 36,726
Equity Securities | Primrose Bio      
Summary of Investment Holdings      
Total other investments   6,712 32,726
Equity Securities | InvIOs      
Summary of Investment Holdings      
Total other investments   4,196 0
Neuritek warrants      
Summary of Investment Holdings      
Total other investments   0 3,000
Palvella Series C preferred stock      
Summary of Investment Holdings      
Total other investments   $ 0 $ 1,000
v3.25.0.1
Balance Sheet Account Details - Inventory in Other Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Inventory    
Total Pelthos inventory in other current assets $ 14,114 $ 23,969
Zelsuvmi    
Inventory    
Work in process 3,923 195
Raw materials 603 420
Total Pelthos inventory in other current assets $ 4,526 $ 615
v3.25.0.1
Balance Sheet Account Details - Accrued Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Other Balance Sheet Details [Abstract]    
Royalties owed to third parties $ 6,500 $ 900
Compensation 5,522 4,682
UK value-added tax 5,159 0
Professional fees 4,858 2,394
Subcontractor 1,756 1,756
Customer deposit 621 621
Supplier 0 303
Amounts owed to former licensees 0 45
Other 3,490 1,766
Total accrued liabilities $ 27,906 $ 12,467
v3.25.0.1
Balance Sheet Account Details - Contingent Liabilities (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Contingent Liability    
Commercial rights, beginning of period $ 3,198 $ 3,513
Payments (200) (50)
Fair Value Adjustment 683 (265)
Commercial rights, end of period 3,681 3,198
Cydex    
Contingent Liability    
Commercial rights, beginning of period 320 84
Payments (200) (50)
Fair Value Adjustment 263 286
Commercial rights, end of period 383 320
Metabasis    
Contingent Liability    
Commercial rights, beginning of period 2,878 3,429
Payments 0 0
Fair Value Adjustment 420 (551)
Commercial rights, end of period $ 3,298 $ 2,878
v3.25.0.1
Balance Sheet Account Details - Other Long-term Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Other Balance Sheet Details [Abstract]      
Novan (Pelthos) contract liability $ 15,938 $ 13,700  
Unrecognized tax benefits 14,160 14,039  
Other long-term liabilities 65 19  
Total other long-term liabilities $ 30,163 $ 27,758 $ 27,758
v3.25.0.1
Fair Value Measurement - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details)
 1 Months Ended 12 Months Ended
Jan. 31, 2010
cvr
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Sep. 18, 2023
contract
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis        
Derivative Asset Statement Of Financial Position Extensible Enumeration Not Disclosed Flag   Derivative assets(2) Derivative assets(2)  
Number of CVR Series | cvr 4      
Agenus Partnered Program        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis        
Percentage of milestones (as a percent)       50.00%
Agenus Partnered Program | Discount Rate        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis        
Discount rate (as a percent)     0.25  
Primordial Genetics | Agenus Partnered Program        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis        
Number of contracts | contract       2
Transferred over Time | Phase 3 clinical trial        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis        
Gross contract asset   $ 10,000,000    
Maximum | Agenus Partnered Program | Discount Rate        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis        
Discount rate (as a percent)   0.28    
Maximum | Transferred over Time | Development, regulatory, & commercial milestones and tiered royalties        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis        
Investments   $ 375,000,000    
Minimum | Agenus Partnered Program | Discount Rate        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis        
Discount rate (as a percent)   0.15    
Metabasis        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis        
Number of CVRs issued per acquiree share | cvr 4      
Number of CVRs issued from each CVR series | cvr 1      
Frequency of cash payments to CVR holders 6 months      
Level 3        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis        
Total liabilities     $ 320,000  
Recurring        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis        
Investment in Viking common stock   $ 40,240,000 32,185,000  
Derivative asset   10,583,000 3,531,000  
Total assets   194,441,000 150,886,000  
Total liabilities   3,681,000 3,198,000  
Recurring | Short-term investments        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis        
Investments, fair value   143,618,000 115,170,000  
Recurring | Contingent liabilities | CyDex        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis        
Contingent liabilities   383,000 320,000  
Recurring | Contingent liabilities | Metabasis        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis        
Contingent liabilities   3,298,000 2,878,000  
Recurring | Level 1        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis        
Investment in Viking common stock   40,240,000 32,185,000  
Derivative asset   0 0  
Total assets   122,047,000 39,476,000  
Total liabilities   0 0  
Recurring | Level 1 | Short-term investments        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis        
Investments, fair value   81,807,000 7,291,000  
Recurring | Level 1 | Contingent liabilities | CyDex        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis        
Contingent liabilities   0 0  
Recurring | Level 1 | Contingent liabilities | Metabasis        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis        
Contingent liabilities   0 0  
Recurring | Level 2        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis        
Investment in Viking common stock   0 0  
Derivative asset   0 0  
Total assets   61,811,000 107,879,000  
Total liabilities   3,298,000 2,878,000  
Recurring | Level 2 | Short-term investments        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis        
Investments, fair value   61,811,000 107,879,000  
Recurring | Level 2 | Contingent liabilities | CyDex        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis        
Contingent liabilities   0 0  
Recurring | Level 2 | Contingent liabilities | Metabasis        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis        
Contingent liabilities   3,298,000 2,878,000  
Recurring | Level 3        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis        
Investment in Viking common stock   0 0  
Derivative asset   10,583,000 3,531,000  
Total assets   10,583,000 3,531,000  
Total liabilities   383,000    
Recurring | Level 3 | Short-term investments        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis        
Investments, fair value   0 0  
Recurring | Level 3 | Contingent liabilities | CyDex        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis        
Contingent liabilities   383,000 320,000  
Recurring | Level 3 | Contingent liabilities | Metabasis        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis        
Contingent liabilities   $ 0 $ 0  
v3.25.0.1
Fair Value Measurement - Reconciliation of Level 3 Financial Instruments (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Assets    
Beginning balance $ 3,531 $ 135
Additions to derivative assets 35,888 3,281
Fair value adjustments to equity security warrants   (135)
Fair value adjustments to derivative assets (20,010) 250
Exercise of derivative assets (8,826)  
Ending balance $ 10,583 $ 3,531
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Gain from short-term investments Gain from short-term investments
Liabilities    
Beginning balance $ 320 $ 84
Payments to CVR holders and other contingent payments (200) (50)
Fair value adjustments to contingent liabilities 263 286
Ending balance $ 383 $ 320
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Non-Cash Change In Estimated Fair Value Of Contingent Value Rights Non-Cash Change In Estimated Fair Value Of Contingent Value Rights
v3.25.0.1
Fair Value Measurement - Narrative (Details) - USD ($)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis      
Tangible asset impairment charges $ 0 $ 0 $ 0
Goodwill and intangible asset impairment $ 0 $ 0 $ 0
Discount Rate | Minimum      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis      
Financial royalty assets, measurement input (percent) 15.00% 10.00%  
Discount Rate | Maximum      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis      
Financial royalty assets, measurement input (percent)   45.00%  
Estimate of Fair Value      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis      
Other liabilities, fair value disclosure $ 19,100,000    
Financial royalty assets, fair value disclosure 196,600,000 $ 75,900,000  
Reported Value      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis      
Other liabilities, fair value disclosure 15,900,000    
Financial royalty assets, fair value disclosure $ 195,000,000 $ 62,300,000  
v3.25.0.1
Leases - Narrative (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Lessee, Lease, Description        
Finance lease right-of-use assets $ 2,766 $ 3,393    
Increase in operating lease assets   1,100    
Increase in operating lease liability   $ 1,100    
Weighted-average remaining lease term of operating leases 5 years 9 months 18 days 7 years 4 months 24 days    
Weighted-average discount rate of operating leases (as a percent) 7.50% 7.70%    
Operating lease payments $ 1,300 $ 1,400    
Operating lease expense 1,300 1,400    
Sublease income $ 100 $ 300    
Weighted-average remaining lease term of finance leases 3 years 3 months 18 days 3 years 4 months 24 days    
Weighted-average discount rate of finance leases (as a percent) 6.60% 6.80%    
Cash paid for amounts included in finance lease liabilities $ 20 $ 50    
Finance lease expense 500 700    
Office in Boston, Massachusetts        
Lessee, Lease, Description        
Increase in operating lease assets 1,600      
Increase in operating lease liability 1,600      
Office in Jupiter, Florida        
Lessee, Lease, Description        
Increase in operating lease assets 100      
Increase in operating lease liability $ 100      
Maximum        
Lessee, Lease, Description        
Remaining lease term of operating leases 8 years      
Renewal term 5 years      
Captisol        
Lessee, Lease, Description        
Consideration paid to date       $ 69,100
Portion of consideration allocated to inventory       50,200
Right-of-use asset recognized       $ 18,900
Finance lease, impairment charges     $ 9,800  
Finance lease right-of-use assets $ 2,700 3,400 $ 4,000  
Remaining lease term of finance leases     6 years  
Asset impairment charges $ 0 $ 0    
v3.25.0.1
Leases - Operating and Finance Lease Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Assets    
Operating lease assets $ 6,907 $ 6,062
Finance lease assets 2,766 3,393
Total lease assets 9,673 9,455
Current liabilities:    
Current operating lease liabilities 1,266 403
Current finance lease liabilities 24 7
Current lease liabilities 1,290 410
Noncurrent liabilities:    
Long-term operating lease liabilities 5,815 5,755
Long-term finance lease liabilities 49 19
Total lease liabilities $ 7,154 $ 6,184
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] Other Liabilities, Noncurrent Other Liabilities, Noncurrent
v3.25.0.1
Leases - Maturities of Operating and Finance Lease Liabilities (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
Operating Leases  
2025 $ 1,537
2026 1,637
2027 1,634
2028 1,560
2029 1,109
Thereafter 2,005
Total lease payments 9,482
Less tenant improvement allowance (418)
Less imputed interest (1,983)
Present value of lease liabilities 7,081
Finance Leases  
2025 27
2026 27
2027 18
2028 9
2029 3
Thereafter 0
Total lease payments 84
Less tenant improvement allowance 0
Less imputed interest (11)
Present value of lease liabilities $ 73
v3.25.0.1
Debt - Narrative (Details) - USD ($)
 1 Months Ended 6 Months Ended 12 Months Ended
Oct. 12, 2023
May 15, 2023
Aug. 31, 2022
May 31, 2018
Jun. 30, 2022
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Jul. 08, 2024
Debt Instrument [Line Items]                  
Repayments of long-term debt           $ 0 $ 76,854,000 $ 260,949,000  
Loss (gain) on extinguishment of debt           0 0 4,192,000  
Revolving Credit Facility                  
Debt Instrument [Line Items]                  
Maximum borrowing capacity $ 75,000,000               $ 125,000,000
Revolving Credit Facility | Minimum                  
Debt Instrument [Line Items]                  
Line of credit facility, interest rate (as a percent) 0.30%                
Revolving Credit Facility | Minimum | Secured Overnight Financing Rate (SOFR)                  
Debt Instrument [Line Items]                  
Interest rate (as a percent) 1.75%                
Revolving Credit Facility | Minimum | Base Rate                  
Debt Instrument [Line Items]                  
Interest rate (as a percent) 0.75%                
Revolving Credit Facility | Maximum                  
Debt Instrument [Line Items]                  
Line of credit facility, interest rate (as a percent) 0.45%                
Revolving Credit Facility | Maximum | Secured Overnight Financing Rate (SOFR)                  
Debt Instrument [Line Items]                  
Interest rate (as a percent) 2.50%                
Revolving Credit Facility | Maximum | Base Rate                  
Debt Instrument [Line Items]                  
Interest rate (as a percent) 1.50%                
Line of Credit | Revolving Credit Facility                  
Debt Instrument [Line Items]                  
Available borrowing           124,400,000 74,500,000    
Letters of credit outstanding           $ 600,000 $ 500,000    
2023 Convertible Senior Notes | Convertible Notes                  
Debt Instrument [Line Items]                  
Interest on debt instrument (as a percent)       0.75%          
Principal amount of 2023 notes outstanding       $ 750,000,000          
Net proceeds from debt issuance       733,100,000          
Debt issuance costs       $ 16,900,000          
Term of debt instrument (in years)       5 years          
Repayments of long-term debt   $ 76,900,000              
Accrued interest portion of repurchased amount of debt instrument   $ 300,000     $ 400,000     500,000  
Effective rate (as a percent)             0.50%    
Interest expense             $ 600,000    
Contractual interest expense             400,000    
Amortization issuance costs             $ 200,000    
Repurchased amount of debt instrument               266,400,000  
Repayments of notes               261,400,000  
Loss (gain) on extinguishment of debt               4,200,000  
Reduction in debt discount               $ 1,300,000  
Warrants issued in public offering (in shares)       3,018,327          
Debt conversion price per share (in USD per share)       $ 206.65          
Payments for convertible bond hedges       $ 140,300,000          
Exercise price of warrants (in USD per share)       $ 315.38          
Warrant derivative       $ 90,000,000.0          
2023 Convertible Senior Notes | Convertible Notes | Notes Repurchased During Current Period, Two                  
Debt Instrument [Line Items]                  
Repayments of notes     $ 223,700,000            
Repurchased amount     $ 227,800,000            
v3.25.0.1
Stockholders' Equity - Share-Based Compensation (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award      
Share-based compensation expense $ 41,089 $ 25,743 $ 50,881
Research and development expenses      
Share-based Compensation Arrangement by Share-based Payment Award      
Share-based compensation expense 3,544 6,248 10,970
General and administrative expenses      
Share-based Compensation Arrangement by Share-based Payment Award      
Share-based compensation expense $ 37,545 $ 19,495 $ 39,911
v3.25.0.1
Stockholders' Equity - Narrative (Details) - USD ($)
 1 Months Ended 12 Months Ended
Jun. 30, 2024
Jun. 30, 2022
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Apr. 30, 2023
Sep. 30, 2022
Jul. 29, 2022
Share-based Compensation Arrangement by Share-based Payment Award                
Weighted-average grant date fair value per share of stock options (in USD per share)     $ 37.81 $ 36.65 $ 28.90      
Intrinsic value of options exercised     $ 38,600,000 $ 12,000,000.0 $ 4,600,000      
Corporate Share Repurchase                
Stock repurchase program, authorized amount           $ 50,000,000    
Shares repurchased in period     $ 0 0 0      
At-The-Market Equity Offering                
Corporate Share Repurchase                
Sale of stock, authorized offering amount             $ 100,000,000  
Sale of common stock (in shares)     360,325          
Common stock aggregate offering price     $ 37,400,000          
Stock options                
Share-based Compensation Arrangement by Share-based Payment Award                
Cash received from options exercised     65,200,000 $ 22,200,000 $ 2,600,000      
2002 Stock Incentive Plan                
Share-based Compensation Arrangement by Share-based Payment Award                
Number of shares authorized (in shares)               300,000
Unrecognized compensation cost     $ 34,000,000.0          
Weighted-average period in which cost is expected to be recognized (in years)     2 years 6 months          
2002 Stock Incentive Plan | Stock options                
Share-based Compensation Arrangement by Share-based Payment Award                
Increase the number of shares under the 2002 Stock Incentive Plan (in shares) 1,300,000 1,000,000.0            
Shares available for future option grants (in shares)     1,600,000          
2002 Stock Incentive Plan | Restricted stock                
Share-based Compensation Arrangement by Share-based Payment Award                
Weighted-average period in which cost is expected to be recognized (in years)     1 year 4 months 24 days          
Unrecognized compensation cost, restricted stock     $ 19,600,000          
Omniab Separation                
Share-based Compensation Arrangement by Share-based Payment Award                
Unrecognized compensation cost     $ 100,000          
Weighted-average period in which cost is expected to be recognized (in years)     6 months          
Amended ESPP                
Share-based Compensation Arrangement by Share-based Payment Award                
Shares available for future option grants (in shares)     24,493          
Employee Stock Purchase Plan                
Shares allowed to purchase in employee stock purchase plan per employee (in shares)     1,250          
Proportion of fair market value of common stock at which stock is purchased under ESPP (as a percent)     85.00%          
Initial offering period     6 months          
Common stock issued under amended ESSP (in shares)     6,308 5,080 8,479      
v3.25.0.1
Stockholders' Equity - Stock Option Plan Activity (Details) - USD ($)
$ / shares in Units, $ in Thousands
 2 Months Ended 10 Months Ended 12 Months Ended
Nov. 01, 2022
Dec. 31, 2022
Oct. 31, 2022
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2021
Shares            
Balance at beginning of period (in shares) 2,987,833   2,199,598 2,640,458 2,991,473  
Granted (in shares)   3,584,760 863,245 783,064 537,432  
Exercised (in shares)   (50,449) (34,941) (1,080,135) (489,076)  
Forfeited (in shares) (2,987,833) (542,838) (40,069) (117,114) (399,371)  
Balance at end of period (in shares)   2,991,473 2,987,833 2,226,273 2,640,458 2,199,598
Exercisable at end of period (in shares) 0 1,559,662 1,769,629 1,229,294 1,784,209  
Options vested and expected to vest at end of period (in shares)   2,991,473 2,987,833 2,226,273 2,640,458  
Weighted Average Exercise Price            
Balance at beginning of period (in USD per share) $ 102.92   $ 106.00 $ 65.70 $ 61.31  
Granted (in USD per share)   $ 60.10 91.34 86.91 72.69  
Exercised (in USD per share)   30.24 38.56 60.64 45.83  
Forfeited (in USD per share)   56.20 78.46 74.58 66.61  
Balance at end of period (in USD per share)   61.31 102.92 75.14 65.70 $ 106.00
Exercisable at end of period (in USD per share)   60.83 102.38 72.15 64.90  
Options vested and expected to vest at end of period (in USD per share)   $ 61.31 $ 102.92 $ 75.14 $ 65.70  
Weighted Average Remaining Contractual Term in Years   6 years 25 days 0 years 6 years 6 months 29 days 5 years 7 months 17 days 6 years 4 months 2 days
Weighted average remaining contractual term, exercisable (in years)   4 years 6 months 3 days 0 years 5 years 7 days 4 years 3 months 3 days  
Weighted average remaining contractual term, vested and expected to vest (in years)   6 years 25 days 0 years 6 years 6 months 29 days 5 years 7 months 17 days  
Aggregate Intrinsic Value (In thousands)   $ 30,477 $ 14,835 $ 71,538 $ 8,784 $ 113,302
Aggregate intrinsic value, exercisable   17,951 13,722 43,120 7,300  
Aggregate intrinsic value, vested and expected to vest   $ 30,477 $ 14,835 $ 71,538 $ 8,784  
v3.25.0.1
Stockholders' Equity - Breakdown of Options Outstanding (Details)
 12 Months Ended
Dec. 31, 2024
$ / shares
shares
Share-based Compensation Arrangement by Share-based Payment Award  
Options outstanding (in shares) | shares 2,226,273
Weighted average remaining life in years 6 years 6 months 29 days
Weighted average exercise price (in USD per share) $ 75.14
Options exercisable (in shares) | shares 1,229,294
Weighted average exercise price (in USD per share) $ 72.15
$32.78-$52.84  
Share-based Compensation Arrangement by Share-based Payment Award  
Lower range of exercise prices (in USD per share) 32.78
Upper range of exercise prices (in USD per share) $ 52.84
Options outstanding (in shares) | shares 281,644
Weighted average remaining life in years 5 years 9 months 10 days
Weighted average exercise price (in USD per share) $ 49.42
Options exercisable (in shares) | shares 195,152
Weighted average exercise price (in USD per share) $ 48.02
$54.81-$63.62  
Share-based Compensation Arrangement by Share-based Payment Award  
Lower range of exercise prices (in USD per share) 54.81
Upper range of exercise prices (in USD per share) $ 63.62
Options outstanding (in shares) | shares 228,498
Weighted average remaining life in years 4 years 1 month 6 days
Weighted average exercise price (in USD per share) $ 58.54
Options exercisable (in shares) | shares 191,316
Weighted average exercise price (in USD per share) $ 58.32
$64.65-$68.74  
Share-based Compensation Arrangement by Share-based Payment Award  
Lower range of exercise prices (in USD per share) 64.65
Upper range of exercise prices (in USD per share) $ 68.74
Options outstanding (in shares) | shares 312,067
Weighted average remaining life in years 5 years 1 month 13 days
Weighted average exercise price (in USD per share) $ 67.47
Options exercisable (in shares) | shares 245,199
Weighted average exercise price (in USD per share) $ 67.67
$69.39-$73.76  
Share-based Compensation Arrangement by Share-based Payment Award  
Lower range of exercise prices (in USD per share) 69.39
Upper range of exercise prices (in USD per share) $ 73.76
Options outstanding (in shares) | shares 233,288
Weighted average remaining life in years 7 years 7 months 28 days
Weighted average exercise price (in USD per share) $ 70.78
Options exercisable (in shares) | shares 125,319
Weighted average exercise price (in USD per share) $ 71.02
$73.92-$75.09  
Share-based Compensation Arrangement by Share-based Payment Award  
Lower range of exercise prices (in USD per share) 73.92
Upper range of exercise prices (in USD per share) $ 75.09
Options outstanding (in shares) | shares 288,134
Weighted average remaining life in years 7 years 8 months 23 days
Weighted average exercise price (in USD per share) $ 74.76
Options exercisable (in shares) | shares 105,797
Weighted average exercise price (in USD per share) $ 74.88
$78.56-$88.27  
Share-based Compensation Arrangement by Share-based Payment Award  
Lower range of exercise prices (in USD per share) 78.56
Upper range of exercise prices (in USD per share) $ 88.27
Options outstanding (in shares) | shares 155,478
Weighted average remaining life in years 8 years 6 months 25 days
Weighted average exercise price (in USD per share) $ 82.22
Options exercisable (in shares) | shares 32,249
Weighted average exercise price (in USD per share) $ 81.71
89.2  
Share-based Compensation Arrangement by Share-based Payment Award  
Lower range of exercise prices (in USD per share) 89.20
Upper range of exercise prices (in USD per share) $ 89.20
Options outstanding (in shares) | shares 444,229
Weighted average remaining life in years 8 years 4 months 6 days
Weighted average exercise price (in USD per share) $ 89.20
Options exercisable (in shares) | shares 103,190
Weighted average exercise price (in USD per share) $ 89.20
$89.86-$103.42  
Share-based Compensation Arrangement by Share-based Payment Award  
Lower range of exercise prices (in USD per share) 89.86
Upper range of exercise prices (in USD per share) $ 103.42
Options outstanding (in shares) | shares 244,385
Weighted average remaining life in years 4 years 7 months 20 days
Weighted average exercise price (in USD per share) $ 98.53
Options exercisable (in shares) | shares 218,106
Weighted average exercise price (in USD per share) $ 98.24
$104.30-$114.15  
Share-based Compensation Arrangement by Share-based Payment Award  
Lower range of exercise prices (in USD per share) 104.30
Upper range of exercise prices (in USD per share) $ 114.15
Options outstanding (in shares) | shares 28,290
Weighted average remaining life in years 6 years 8 months 23 days
Weighted average exercise price (in USD per share) $ 110.98
Options exercisable (in shares) | shares 12,966
Weighted average exercise price (in USD per share) $ 114.15
$122.70-$122.70  
Share-based Compensation Arrangement by Share-based Payment Award  
Lower range of exercise prices (in USD per share) 122.70
Upper range of exercise prices (in USD per share) $ 122.70
Options outstanding (in shares) | shares 10,260
Weighted average remaining life in years 9 years 11 months 1 day
Weighted average exercise price (in USD per share) $ 122.70
Options exercisable (in shares) | shares 0
Weighted average exercise price (in USD per share) $ 0
v3.25.0.1
Stockholders' Equity - Assumptions (Details)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Minimum      
Share-based Compensation Arrangement by Share-based Payment Award      
Risk-free interest rate (as a percent) 3.50% 3.70% 1.40%
Expected volatility (as a percent) 44.00% 45.00% 49.00%
Expected term (in years) 4 years 1 month 6 days 4 years 8 months 12 days 2 years
Maximum      
Share-based Compensation Arrangement by Share-based Payment Award      
Risk-free interest rate (as a percent) 4.50% 4.60% 4.30%
Expected volatility (as a percent) 46.00% 54.00% 55.00%
Expected term (in years) 4 years 9 months 18 days 5 years 3 months 18 days 6 years 6 months
v3.25.0.1
Stockholders' Equity - Restricted Stock Activity (Details) - Restricted stock - $ / shares
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Shares    
Outstanding at beginning of period (in shares) 350,905 348,453
Granted (in shares) 318,588 203,752
Vested (in shares) (167,308) (181,246)
Forfeited (in shares) (64,313) (20,054)
Outstanding at end of period (in shares) 437,872 350,905
Weighted-Average Grant Date Fair Value    
Outstanding at beginning of period (in USD per share) $ 81.22 $ 75.60
Granted (in USD per share) 85.23 83.39
Vested (in USD per share) 84.28 74.62
Forfeited (in USD per share) 77.28 65.35
Outstanding at end of period (in USD per share) $ 83.55 $ 81.22
v3.25.0.1
Commitment and Contingencies: Legal Proceedings - Narrative (Details)
Oct. 31, 2019
complaint
US District Court for the Northern District of Ohio  
Loss Contingencies  
Number of civil complaints filed against entity 3
v3.25.0.1
Income Taxes - Income Before Income Tax From Continuing Operations (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Tax Contingency [Line Items]      
Income before income tax from continuing operations $ 2,518 $ 63,660 $ 36,011
Domestic      
Income Tax Contingency [Line Items]      
Income before income tax from continuing operations (25,855) 62,140 33,339
Foreign      
Income Tax Contingency [Line Items]      
Income before income tax from continuing operations $ 28,373 $ 1,520 $ 2,672
v3.25.0.1
Income Taxes - Components of Income Tax Expense (Benefit) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Current expense (benefit):      
Federal $ 18,277 $ (1,186) $ 10,097
State 718 218 193
Foreign 3,355 780 452
Total current expense (benefit) 22,350 (188) 10,742
Deferred expense (benefit):      
Federal (17,767) 9,374 (3,656)
State 77 655 34,144
Foreign 1,890 0 0
Total deferred expense (benefit) (15,800) 10,029 30,488
Total income tax expense (benefit) $ 6,550 $ 9,841 $ 41,230
v3.25.0.1
Income Taxes - Reconciliation of Income Tax Expense (Benefit) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation      
Tax at federal statutory rate $ 529 $ 13,448 $ 7,562
Subpart F income 5,649 479 853
Officer compensation 3,921 844 5,869
Foreign tax differential on income/loss of foreign subsidiaries 1,115 (38) 103
Share-based compensation 602 1,241 1,279
Provision to return adjustments 293 2,200 2,232
Rate change for changes in federal, foreign or state law 111 342 (535)
Contingent liabilities 88 (116) 15
Change in uncertain tax positions 94 (7,206) (158)
Debt repurchases 0 0 626
State, net of federal benefit (85) 397 264
Research and development credits (324) (405) 256
FDII (832) (1,037) (2,395)
Change in valuation allowance (1,638) (1,184) 24,799
Foreign tax credits (3,232) 0 0
Other 259 876 460
Total income tax expense (benefit) $ 6,550 $ 9,841 $ 41,230
v3.25.0.1
Income Taxes - Narrative (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Operating Loss Carryforwards    
Unrecognized tax benefits that would impact effective tax rate $ 20.7  
Research Tax Credit Carryforward    
Operating Loss Carryforwards    
Tax credit carryforward 6.2 $ 8.5
Internal Revenue Service (IRS)    
Operating Loss Carryforwards    
Operating loss carryforward 21.4 48.0
State and Local Jurisdiction    
Operating Loss Carryforwards    
Operating loss carryforward 162.8 165.1
State and Local Jurisdiction | California and New Jersey Research Tax Credit Carryforward    
Operating Loss Carryforwards    
Tax credit carryforward 29.5 29.4
Foreign    
Operating Loss Carryforwards    
Operating loss carryforward 98.4 95.5
Foreign | Capital Loss Carryforward    
Operating Loss Carryforwards    
Tax credit carryforward $ 14.4 $ 16.5
v3.25.0.1
Income Taxes - Deferred Taxes (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Deferred tax assets:    
Net operating loss carryforwards $ 40,385 $ 45,702
Research credit carryforwards 24,404 26,611
Capitalized R&D 7,090 4,550
Stock compensation 10,726 11,886
Other 13,733 15,012
Deferred tax assets 96,338 103,761
Valuation allowance for deferred tax assets (55,649) (57,699)
Net deferred tax assets 40,689 46,062
Deferred tax liabilities:    
Identified intangibles (69,150) (66,966)
Other (3,991) (10,504)
Net deferred tax liabilities (73,141) (77,470)
Deferred income taxes, net $ (32,452) $ (31,408)
v3.25.0.1
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Unrecognized Tax Benefits      
Balance at beginning of year $ 22,363 $ 29,096 $ 29,550
Additions based on tax positions related to the current year 27 47 58
Additions for tax positions of prior years 477 3 0
Reductions for tax positions of prior years (396) (6,783) (512)
Balance at end of year $ 22,471 $ 22,363 $ 29,096
v3.25.0.1
Subsequent Event (Details) - USD ($)
$ in Thousands
 12 Months Ended
Feb. 24, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Subsequent Event        
Payments to acquire notes   $ 2,500 $ 0 $ 0
Subsequent Event        
Subsequent Event        
Receivable with imputed interest $ 8,300      
Payments to acquire notes 1,800      
Subsequent Event | FCX-007        
Subsequent Event        
Payments to acquire productive asset 50,000      
Subsequent Event | Purchasers | FCX-007        
Subsequent Event        
Payments to acquire productive asset 75,000      
Subsequent Event | Other Purchasers | FCX-007        
Subsequent Event        
Payments to acquire productive asset $ 25,000