LIGAND PHARMACEUTICALS INC, 10-K filed on 2/27/2026
Annual Report
v3.25.4
Cover - USD ($)
$ in Billions
 12 Months Ended
Dec. 31, 2025
Feb. 24, 2026
Jun. 30, 2025
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2025    
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 $0.001 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     $ 1.6
Entity Common Stock, Shares Outstanding   19,941,141  
Documents Incorporated by Reference
Portions of the Proxy Statement for the Registrant’s 2026 Annual Meeting of Stockholders to be filed with the Commission within 120 days of December 31, 2025 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 2025    
Document Fiscal Period Focus FY    
Entity Central Index Key 0000886163    
v3.25.4
Audit Information
 12 Months Ended
Dec. 31, 2025
Audit Information [Abstract]  
Auditor Name Ernst & Young LLP
Auditor Location San Diego, California
Auditor Firm ID 42
v3.25.4
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Current assets:    
Cash and cash equivalents $ 174,927 $ 72,307
Short-term investments 558,594 183,858
Accounts receivable, net 59,601 38,376
Inventory 9,126 14,114
Short-term portion of financial royalty assets 22,792 10,025
Income taxes receivable 1,446 4,073
Other current assets 5,785 8,806
Total current assets 832,271 331,559
Intangible assets, net 225,438 266,648
Goodwill 101,541 105,250
Long-term portion of financial royalty assets, net 196,877 185,024
Noncurrent derivative assets 15,632 10,583
Equity method investments 46,500 0
Other investments 121,451 10,908
Deferred income taxes, net 8,345 72
Other assets 12,582 31,730
Total assets 1,560,637 941,774
Current liabilities:    
Accounts payable 3,238 5,233
Accrued liabilities 31,453 27,906
Income tax payable 1,239 1,199
Current contingent liabilities 287 206
Current operating lease liabilities 1,095 1,266
Other current liabilities 135 1,302
Total current liabilities 37,447 37,112
Long-term deferred revenue 0 2,246
Long-term contingent liabilities 2,934 3,475
Long-term operating lease liabilities 4,204 5,815
2030 Convertible Senior Notes, net 446,192 0
Deferred income taxes, net 36,019 32,524
Other long-term liabilities 16,629 30,163
Total liabilities 543,425 111,335
Commitments and contingencies
Stockholders’ equity:    
Preferred stock, $0.001 par value; 5,000 shares authorized; zero issued and outstanding at December 31, 2025 and 2024 0 0
Common stock, $0.001 par value; 60,000 shares authorized; 19,774 and 19,106 shares issued and outstanding at December 31, 2025 and 2024, respectively 20 20
Additional paid-in capital 400,649 337,377
Accumulated other comprehensive income (loss) 8,455 (5,942)
Retained earnings 608,088 498,984
Total stockholders’ equity 1,017,212 830,439
Total liabilities and stockholders’ equity $ 1,560,637 $ 941,774
v3.25.4
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares
shares in Thousands
Dec. 31, 2025
Dec. 31, 2024
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) 19,774 19,106
Common stock outstanding (in shares) 19,774 19,106
v3.25.4
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Revenue and income:      
Total revenue and income $ 268,087 $ 167,133 $ 131,314
Operating costs and expenses:      
Cost of Captisol 14,549 11,074 10,512
Amortization of intangibles 32,708 32,959 33,654
Research and development 81,182 21,425 24,537
General and administrative 92,449 78,654 52,790
Financial royalty assets impairment 6,197 30,572 0
Fair value adjustments to partner program derivatives 0 15,055 0
Total operating costs and expenses 227,085 189,739 121,493
Gain on sale of Pelican 0 0 (2,121)
Operating income (loss) from continuing operations 41,002 (22,606) 11,942
Non-operating income and expenses:      
Gain from short-term investments 18,433 75,024 46,365
Gain (loss) from change in fair value of equity method investments and other investments 90,670 (34,601) 0
Interest income 13,659 8,055 7,711
Interest expense (4,715) (3,037) (656)
Other non-operating expense, net (89) (20,317) (1,702)
Total non-operating income, net 117,958 25,124 51,718
Income before income tax from continuing operations 158,960 2,518 63,660
Income tax expense (34,507) (6,550) (9,841)
Net income (loss) from continuing operations 124,453 (4,032) 53,819
Net loss from discontinued operations     (1,665)
Net income (loss): $ 124,453 $ (4,032) $ 52,154
Basic net income (loss) from continuing operations (in USD per share) $ 6.44 $ (0.22) $ 3.11
Basic net loss from discontinued operations (in USD per share) 0 0 (0.10)
Basic net income (loss) per share (in USD per share) $ 6.44 $ (0.22) $ 3.02
Shares used in basic per share calculation (in shares) 19,338 18,290 17,298
Diluted net income (loss) from continuing operations (in USD per share) $ 6.13 $ (0.22) $ 3.03
Diluted net loss from discontinued operations (in USD per share) 0 0 (0.09)
Diluted net income (loss) per share (in USD per share) $ 6.13 $ (0.22) $ 2.94
Shares used in diluted per share calculation (in shares) 20,294 18,290 17,757
Royalties      
Revenue and income:      
Total revenue and income $ 161,001 $ 108,773 $ 84,959
Revenue from intangible royalty assets      
Revenue and income:      
Total revenue and income 132,534 95,329 83,910
Income from financial royalty assets      
Revenue and income:      
Total revenue and income 28,467 13,444 1,049
Captisol      
Revenue and income:      
Total revenue and income 40,213 30,883 28,372
Contract revenue and income      
Revenue and income:      
Total revenue and income $ 66,873 $ 27,477 $ 17,983
v3.25.4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Statement of Comprehensive Income [Abstract]      
Net income (loss) $ 124,453 $ (4,032) $ 52,154
Unrealized net gain on available-for-sale securities, net of tax 181 45 167
Foreign currency translation adjustment, net of tax 14,216 (5,170) 0
Comprehensive income (loss) $ 138,850 $ (9,157) $ 52,321
v3.25.4
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($)
shares in Thousands, $ in Thousands
Total
Cumulative Effect, Period of Adoption, Adjustment
Common Stock
Additional paid-in capital
Accumulated other comprehensive income (loss)
Retained earnings
Retained earnings
Cumulative Effect, Period of Adoption, Adjustment
Balance at beginning of period (in shares) at Dec. 31, 2022     16,951        
Balance at beginning of period at Dec. 31, 2022 $ 597,485   $ 17 $ 147,590 $ (984) $ 450,862  
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Issuance of common stock under employee stock compensation plans, net of shares withheld for payroll taxes (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 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         52,154  
Balance at end of period (in shares) at Dec. 31, 2023     17,556        
Balance at end of period at Dec. 31, 2023 700,913   $ 18 198,696 (817) 503,016  
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Issuance of common stock under employee stock compensation plans, net of shares withheld for payroll taxes (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 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 (in shares) at Dec. 31, 2024 19,106   19,106        
Balance at end of period at Dec. 31, 2024 $ 830,439 $ (349) $ 20 337,377 (5,942) 498,984 $ (349)
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Issuance of common stock under employee stock compensation plans, net of shares withheld for payroll taxes (in shares)     770        
Issuance of common stock under employee stock compensation plans, net of shares withheld for payroll taxes 37,902   $ 0 37,902      
Share repurchase in connection to the 2030 Notes (Note 9) (in shares)     (102)        
Share repurchase in connection to the 2030 Notes (Note 9) (15,000)         (15,000)  
2030 Notes hedge and warrant transactions, net of tax (Note 9) (21,479)     (21,479)      
Share-based compensation 46,849     46,849      
Unrealized net gain on available-for-sale securities, net of tax 181       181    
Foreign currency translation adjustment, net of tax 14,216       14,216    
Net income (loss) $ 124,453         124,453  
Balance at end of period (in shares) at Dec. 31, 2025 19,774   19,774        
Balance at end of period at Dec. 31, 2025 $ 1,017,212   $ 20 $ 400,649 $ 8,455 $ 608,088  
v3.25.4
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Cash flows from operating activities:      
Net income (loss) $ 124,453 $ (4,032) $ 52,154
Adjustments to reconcile net income (loss) to net cash provided by operating activities:      
Gain on sale of Pelican 0 0 (2,121)
Change in estimated fair value of contingent liabilities 860 683 (265)
Depreciation of fixed assets and amortization of intangible assets 33,775 35,239 36,521
Gain from short-term investments (18,433) (67,901) (46,365)
(Gain) loss from change in fair value of equity method investments and other investments (90,670) 34,601 0
Loss from equity method investment in Primrose Bio 0 7,008 1,829
Gain on Pelthos Transaction (53,072) 0 0
Accretion of premium on short-term investments, net (4,958) (1,331) (1,318)
Amortization of debt discount and issuance fees 1,273 486 240
Loss (gain) on derivative instruments (1,022) 20,010 (250)
Non-cash income from financial royalty assets (8,620) (5,467) (878)
CECL adjustment to financial royalty assets (922) (4,315) 3,595
Impairment loss of financial royalty assets 6,197 30,572 924
Lease amortization expense 1,942 2,126 1,735
Share-based compensation 46,849 41,089 25,743
Deferred income taxes, net 22,684 (15,800) 11,696
Other 1,688 4,723 739
Changes in operating assets and liabilities, net of acquisition:      
Accounts receivable, net (21,737) (6,459) (2,601)
Inventory 4,988 9,619 (10,870)
Other economic rights 0 0 (5,000)
Accounts payable and accrued liabilities 5,882 13,903 (4,704)
Income taxes receivable and payable 2,667 2,310 (1,781)
Deferred revenue (578) (1,308) 419
Other assets and liabilities (3,887) 1,291 (9,865)
Net cash provided by operating activities 49,359 97,047 49,577
Cash flows from investing activities:      
Acquisition of financial royalty assets (10,862) (17,819) (50,328)
Acquisition of royalty receivables (813) 0 0
Proceeds from financial royalty assets 10,261 7,429 418
Purchases of derivatives (13,792) 0 0
Purchases of property and equipment (452) (1,821) (3,521)
Purchases of short-term investments (726,713) (226,384) (126,764)
Proceeds from sale of short-term investments 159,584 229,367 148,765
Proceeds from maturity of short-term investments 217,700 33,131 45,402
Cash outflow on deconsolidation of LNHC, Inc. (8,085) 0 0
Cash paid for investment in Primrose Bio 0 (998) (15,249)
Cash paid for other investments (3,847) (2,500) 0
Cash paid for Novan acquisition, net of restricted cash received 0 0 (10,405)
Cash paid for the Agenus Transaction 0 (75,000) 0
Cash paid for Apeiron Acquisition, net of cash received 0 (91,996) 0
Cash paid for InvIOs investment (303) (4,196) 0
Net proceeds from Viking Share Collar and Viking Share Put 0 7,123 0
Net cash used in investing activities (377,322) (143,664) (11,682)
Cash flows from financing activities:      
Gross proceeds from issuance of 2030 Convertible Senior Notes 460,000 0 0
Debt discount and payment of debt issuance cost (15,528) (426) (949)
Purchase of 2030 Convertible Senior Notes hedge (113,250) 0 0
Proceeds from issuance of warrants 67,390 0 0
Repurchase of common stock (15,000) 0 0
Proceeds from common stock issuance, net of commissions and fees 0 37,140 0
Repayment of 2023 Notes at maturity 0 0 (76,854)
Payments under finance lease obligations (27) (25) (45)
Payments to CVR holders (174) 0 0
Net proceeds from stock option exercises and ESPP 47,501 65,588 22,448
Taxes paid related to net share settlement of equity awards (9,599) (5,136) (4,547)
Proceeds from Pelthos investors bridge loans 6,910 0 0
Net cash provided by (used) in financing activities 428,223 97,141 (59,947)
Effect of exchange rate changes on cash and cash equivalents 2,360 (1,171) 0
Net increase (decrease) in cash and cash equivalents 102,620 49,353 (22,052)
Cash and cash equivalents at beginning of year 72,307 22,954 45,006
Cash and cash equivalents at end of year 174,927 72,307 22,954
Supplemental disclosure of cash flow information      
Interest paid 321 263 288
Taxes paid 7,802 19,206 8,770
Acquisitions:      
Goodwill 101,541 105,250  
Net cash paid for acquisitions 0 0 10,405
Supplemental schedule of non-cash investing and financing activities:      
Pelthos shares received in exchange for LNHC, Inc. business 44,092 0 0
Pelthos shares received for Ligand bridge loan cancellation 12,732 0 0
Accrued Primrose transaction costs 0 0 998
Addition of right-of-use assets and lease liabilities 2,315 1,769 0
Accrued royalty from financial royalty assets 0 0 52
Accrued purchases of financial royalty assets 0 0 347
Accrued debt issuance costs 0 42 41
Accrued fixed asset purchases 215 71 0
Unrealized gain (loss) on available-for-sale investments, net of tax $ 181 45 167
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
v3.25.4
Basis of Presentation and Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2025
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,
202520242023
Total revenue and income$268,087 $167,133 $131,314 
Share-based compensation(46,849)(41,089)(25,743)
Other segment items:
Amortization of intangibles(32,708)(32,959)(33,654)
Depreciation of property and equipment(991)(2,300)(2,905)
Interest income13,659 8,055 7,711 
Interest expense(4,715)(3,037)(656)
Other *(72,030)(99,835)(22,248)
Net income (loss) from continuing operations$124,453 $(4,032)$53,819 
* Other items for the years ended December 31, 2025, 2024, and 2023, include the amount of other general, administrative, research and development expenses of $125.8 million, $56.7 million, and $48.7 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, 2024, a portion of other current assets has been reclassified to short-term portion of financial royalty assets, and prepaid expenses have been combined within other current assets. Also, property and equipment and lease right-of-use assets have been combined within other assets.
In addition, within the consolidated statement of operations for the year ended December 31, 2024, a portion of other non-operating expense, net, has been reclassified to gain (loss) from change in fair value of equity method investments and other investments.
Within the consolidated statement of cash flows for the year ended December 31, 2024, a portion of losses from equity method investment in Primrose Bio, a portion of other, and fair value adjustment to Primrose Bio securities investments have been reclassified to (gain) loss from change in fair value of equity-method investments and other investments.
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”). We recognized a $1.7 million tax provision adjustment related to deferred taxes in the first quarter of 2023 that was attributable to the discontinued 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, commercial paper 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 income from significant partners, which is defined as 10% or more of our total revenue and income, were as follows:
Year ended December 31,
202520242023
Partner A22%23%33%
Partner B17%12%20%
Partner C
12%
<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.
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 in 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 twenty-five 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 investments in companies that have completed initial public offerings (marketable equity securities). Our marketable equity securities are measured at fair value.
For additional information, see Note 7, Balance Sheet Account Details.
Accounts Receivable and Allowance for Credit Losses
Our accounts receivable primarily relate to (1) 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, (2) any contractual license fees, technical, regulatory and sales-based milestones related to such products, and (3) Captisol material sales.
Our partners generally report sales information to us on a one quarter lag. Thus, we estimate the expected royalty and 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.
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, 2025, 2024 and 2023, we considered the current and expected future economic and market conditions and concluded an increase of $0.4 million, a decrease of $0.2 million, and an increase of $0.3 million in the aggregate of general and specific 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, 2025, 2024 and 2023, we recorded an obsolete inventory charge of $0.0 million, $0.2 million and $0.2 million, respectively. In addition to finished goods, as of December 31, 2025 and 2024, inventory included prepayments of $2.1 million and $3.1 million, respectively, to our supplier for Captisol.
Goodwill and Intangible 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 2025, 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 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 any indicators of impairment for the finite-lived intangibles at December 31, 2025.
For additional information, see Note 7, Balance Sheet Account Details.
Financial Royalty Assets, net
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 as 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 effective interest rate is lower for the current period than the prior period, and if the gross cash flows have declined (expected and collected), we record provision expense for the change in expected cash flows. The provision 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 prior period’s 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 short-term portion of financial royalty assets represents an estimation for current quarter royalty receipts which are normally collected during the subsequent quarter, and, as applicable, also includes previous periods royalty receipts that haven't yet been collected.
For additional information, see Note 6, Financial Royalty Assets, net.
Derivative Assets
As of December 31, 2025, all our derivative assets are warrants and options which are not used for risk management purposes. For additional information, see Note 3, Investment Transactions.
As a result of our early adoption of ASU 2025-07, Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606) (“ASU 2025-07”), certain assets previously accounted for as derivatives have been qualified for a new derivative scope exception introduced by ASU 2025-07, and are now accounted for as financial royalty assets with January 1, 2025 being the effective date of ASU 2025-07 adoption. Such assets include (1) our rights in future milestone and royalty payments from Agenus Partnered Programs (as defined in Note 3, Investment Transactions), (2) rights to receive from Primrose Bio 50% of milestone payments on two contracts previously entered into by Primordial Genetics (“Primrose mRNA”), and (3) Castle Creek Milestone (as defined in Note 3, Investment Transactions).
In May 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 in October 2024. In the fourth quarter of 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 7, Balance Sheet Account Details and Note 8, Fair Value Measurements.
Equity Method Investments
The Company accounts for investments in entities over which it has significant influence (generally defined as ownership interest of 20% or more) using the equity method of accounting. Under this method, the investment is initially recorded at cost and subsequently adjusted for the Company’s share of the investee’s earnings or losses and any dividends received, unless the fair value option under ASC 825-10 is elected. Such selection is made on an instrument-by-instrument basis and is irrevocable.
Equity method investments the Company elected a fair value option for are measured at fair value with changes in fair value recognized in earnings each reporting period and presented in gain (loss) from change in fair value of equity method investments and other investments in our consolidated statements of operations. The Company elected the fair value option for the equity method investment in Pelthos. The election was made to simplify the accounting and reporting process, as Pelthos is a publicly traded entity with readily available market price.
Equity method investments the Company did not elect a fair value option for are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Any impairment of equity method investments is presented in gain (loss) from change in fair value of equity method investments and other investments in our consolidated statements of operations. Our equity method investments are reviewed for indicators of impairment at each reporting period and are written down to fair value if there is evidence of a loss in value that is other-than-temporary. The Company did not elect a fair value option for the equity method 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 that do not have a readily determinable or estimable fair value are measured using the measurement alternative in accordance with ASC 321, 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 gain (loss) from change in fair value of equity method investments and other investments in our consolidated statements of operations. The change in fair value for other investments (including those due to impairment) recognized during the period is presented in gain (loss) from change in fair value of equity method investments and other investments in our consolidated statements of operations.
Contingent Liabilities
In connection with the acquisition of CyDex in January 2011, we recorded a contingent liability for amounts probable to be 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, net, in our consolidated statements of operations. For additional information, see Note 7, Balance Sheet Account Details and Note 8, Fair Value Measurements.
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 sheets. 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, 2025, the amount recognized as revenue that was previously deferred at December 31, 2024 was $0.6 million. During the year ended December 31, 2024, the amount recognized as revenue that was previously deferred at December 31, 2023 was $1.3 million.
Revenue and Income
Our revenue and income is generated primarily from royalties on sales of products commercialized by our partners, Captisol material sales, income from financial royalty assets, contract revenue for license fees, technical, regulatory and sales-based milestone payments, and other income resulting from other royalty transactions.
For all revenue transactions, 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
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. 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
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.
Income
Operating income includes milestone and royalty income received from other royalty transactions and transactions involving our intellectual property including, R&D funding arrangements, dispositions and the related contingent consideration.
Income for the year ended December 31, 2025 is primarily related to the $53.1 million income from the disposition of Ligand’s wholly owned subsidiary, LNHC, Inc. in connection with the Pelthos Transaction (as defined below). For additional information on the Pelthos Transaction, see Note 2, Pelthos Transaction.
Disaggregation of Revenue and Income
The following table represents disaggregation of royalties for the years ended December 31, 2025, 2024 and 2023 (in thousands):
Year ended December 31,
202520242023
Royalties
Kyprolis$35,534 $38,377 $35,640 
Filspari31,971 12,179 2,655 
Rylaze 13,350 13,743 13,520 
Capvaxive10,059 626 — 
Ohtuvayre9,760 833 — 
Teriparatide injection 8,148 8,221 11,061 
Vaxneuvance7,403 5,184 4,062 
Evomela5,943 8,680 10,212 
Other10,366 7,486 6,760 
Revenue from intangible royalty assets132,534 95,329 83,910 
Qarziba23,739 11,120 — 
Other4,728 2,324 1,049 
Income from financial royalty assets28,467 13,444 1,049 
Total royalties$161,001 $108,773 $84,959 
The following table represents disaggregation of Captisol and contract revenue and income for the years ended December 31, 2025, 2024 and 2023 (in thousands):
Year ended December 31,
202520242023
Captisol$40,213 $30,883 $28,372 
Contract revenue and income
Income from Pelthos Transaction$53,072 $— $— 
Contract revenue6,813 25,533 17,983 
Income6,988 1,944 — 
Total contract revenue and income$66,873 $27,477 $17,983 
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 sheets and we expense them as the services are provided.
Research and Development Funding Expense
We enter into transactions where we agree to fund a portion of the research and development (“R&D”) performed by our partners for products undergoing late-stage clinical trials in exchange for future royalties or milestones if the products are successfully developed and commercialized. In accordance with ASC 730, Research and Development, we account for the funded amounts as R&D expense when we have the ability to obtain the results of the R&D, the transfer of financial risk is genuine and substantive and, at the time of entering into the transaction, it is not yet probable that the product will receive regulatory approval. If these conditions are not met, we may record the funded amounts as a financial royalty asset. We may fund R&D upfront or over time as the underlying products undergo clinical trials.
Royalties earned on successfully commercialized products generated from R&D arrangements are recognized as revenue from intangible royalty assets in the same period in which the sale of the commercialized product occurs. Fixed or milestone payments receivable based on the achievement of contractual criteria for products arising out of our R&D arrangements are recognized as contract revenue and income in the period that the milestone threshold is met.
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 number 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.
Net Income (Loss) Per Share
Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net 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 net 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 2030 Notes, warrants in connection with the 2030 Notes, the 2023 Notes, stock options and restricted stock. The 2030 Notes are considered to be Instrument C where, upon conversion, the Company must satisfy the accreted value of the debt instrument in cash and may choose to satisfy the conversion spread in cash, shares, or a combination of cash and shares. The dilutive effect of Instrument C is limited to the conversion premium, which is reflected in the calculation of diluted earnings per share as if it were a freestanding written call option on the issuer’s shares. 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.
We paid off the 2023 Notes in May 2023, but they had a dilutive impact during the year ended December 31, 2023 because the average market price of our common stock exceeded the maximum conversion price. It was 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 are dilutive. The following table presents the calculation of weighted average shares used to calculate basic and diluted net income (loss) per share (in thousands):
Year Ended December 31,
 202520242023
Weighted average shares outstanding:19,338 18,290 17,298 
Dilutive potential common shares:
Restricted stock311 — 85 
Stock options645 — 255 
2023 Convertible Senior Notes— — 119 
Shares used to compute diluted income per share20,294 18,290 17,757 
Potentially dilutive shares excluded from calculation due to anti-dilutive effect3,194 1,530 4,357 
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 September 2025, the FASB issued ASU 2025-07, Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606). The update provides a derivative scope refinement and scope clarification for share-based noncash consideration from a customer in a revenue contract. Adoption of the amendment allows for either the prospective or modified retrospective application and is effective for annual periods beginning after December 15, 2026, with early adoption permitted.
We early adopted this standard using the modified retrospective method for the derivative scope refinement with the effective date of January 1, 2025, and the adoption has some impact on our financial condition and results of operations. The key change of this update applicable for Ligand is related to additional derivative scope exception for contracts with
underlyings based on obtaining regulatory approval or achieving a product development milestone. The assessment of our derivatives existing before the adoption date concluded that the Agenus Partnered Programs and the Primrose mRNA derivative assets met the scope exception of this amendment. Such assets were derecognized from derivative assets and recognized within the financial royalty assets, net, starting from January 1, 2025. A carrying value of such financial royalty assets was determined as unamortized cost basis less impairment recognized for certain Agenus Partnered Programs as of January 1, 2025. The Castle Creek milestone derivative acquired in February 2025 also met the scope exception of ASU 2025-07 and is now included in the balance of financial royalty assets, net, in the amount of its purchase price on the acquisition date. Refer to Note 3, Investment Transactions and Note 6, Financial Royalty Assets, net, for more information on these derivatives.
Financial royalty assets are assessed periodically for current expected credit losses (“CECL”). The CECL assessment on the derivatives reclassified to financial royalty assets acquired before the adoption date were recorded to retained earnings. The CECL adjustments made to financial royalty assets after the adoption date were recorded to general and administration in the consolidated statement of operations for the year ended December 31, 2025.
The scope clarification for share-based noncash consideration from a customer in a revenue contract is not applicable to us as we have not received any noncash consideration from our customers related to revenue contracts. Thus, we adopted this update effective on September 30, 2025 on a prospective method.
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 adopted this ASU prospectively in our Annual Report on the Form 10-K for the year ended December 31, 2025 and it impacted only our disclosures, with no impacts to our financial condition or results of operations. For additional information, see Note 13, Income Taxes.
Accounting Standards Not Yet Adopted
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.
v3.25.4
Pelthos Transaction
 12 Months Ended
Dec. 31, 2025
Discontinued Operations and Disposal Groups [Abstract]  
Pelthos Transaction Pelthos Transaction
In July 2025, we closed our definitive merger agreement to combine Ligand’s wholly owned subsidiary LNHC, Inc., the holding company for the Pelthos Therapeutics business, with CHRO Merger Sub Inc., a wholly owned subsidiary of Channel Therapeutics Corporation (“Channel”). Upon the effectiveness of the merger LNHC, Inc. became a wholly owned subsidiary of Channel, and Channel changed its name to “Pelthos Therapeutics Inc.” (“Pelthos”) and began trading on the NYSE American exchange under the ticker PTHS. We received shares of Pelthos’ common stock in connection with the merger. The merger was supported by approximately $50 million in equity private placement capital raised from a group of strategic investors (including Ligand) led by Murchinson Ltd. (“Investor Group”).
Ligand invested $18 million and the other members of the Investor Group invested $32 million in Pelthos in exchange for shares of Pelthos’ Series A convertible preferred stock. Out of the $18.0 million invested by Ligand, $12.7 million was invested by us prior to the closing of the Pelthos Transaction in the form of an intercompany loan. In connection with the closing of the Pelthos Transaction this intercompany loan was cancelled, and we contributed the remaining balance of $5.3 million to Pelthos. The transactions described herein are collectively referred to as the “Pelthos Transaction”). As of December 31, 2025, we own approximately 48% of Pelthos’ outstanding shares of common stock, and approximately 60% of Pelthos outstanding shares of Series A convertible preferred stock. Our ownership interest of Pelthos’ common stock is capped at 49.9% pursuant to the terms of the definitive agreements for the Pelthos Transaction.
Our CEO and director, Todd Davis, was also a director on Channel’s board of directors. Mr. Davis did not participate in and recused himself from both boards’ consideration and approval of the Pelthos Transaction, which was in the case of the Company approved by an authorized special transaction committee of the Board. Upon the consummation of the Pelthos
Transaction, Mr. Davis and Richard Baxter (our Senior Vice President of Investment Operations) were appointed to Pelthos’ board of directors.
As LNHC, Inc. has the input, process and output elements defined in ASC 805, Business Combinations, we concluded the sale qualifies as a sale of business, and as such, as of July 1, 2025, we derecognized all assets and liabilities of LNHC, Inc and did not include its operations for the third quarter of 2025 in our consolidated statement of operations for the year ended December 31, 2025. Pelthos is considered a related party to Ligand due to Ligand’s significant equity interest and ongoing contractual arrangements, although Ligand does not control Pelthos and is not the primary beneficiary under ASC 810.
Ligand received shares of Pelthos common stock and Series A convertible preferred stock in connection with the Pelthos Transaction. We assessed Ligand’s consolidation requirements for these investments under ASC 810, Consolidation, and concluded that Ligand is not required to consolidate Pelthos.
We recorded Pelthos Series A convertible preferred shares and Pelthos common shares in other investments and equity method investments, respectively, within our consolidated balance sheet, and elected to subsequently measure them using the fair value option, with the change in fair value for these investments being recorded to gain (loss) from change in fair value of equity method investments and other investments in our consolidated statements of operations. Ligand was restricted from engaging in any transactions involving Pelthos common stock during the lock‑out period between July 1, 2025 and December 31, 2025.
Pelthos Series A
convertible preferred shares
Pelthos common
shares
Total
Fair value on July 1, 2025
$43,192 $18,900 $62,092 
Change in fair value
63,070 27,600 90,670 
Fair value on December 31, 2025
$106,262 $46,500 $152,762 
As a result of the Pelthos Transaction, on July 1, 2025, Ligand recognized income in the amount of $53.1 million which was recorded to contract revenue and income in our consolidated statement of operations for the year ended December 31, 2025. The amount of income from Pelthos Transaction represents the excess of the fair value of 1) our investment in Pelthos Series A convertible preferred shares and Pelthos common shares ($62.1 million in total); 2) the carrying amount of LNHC, Inc. assets and liabilities as of July 1, 2025, the date of sale; and 3) $5.3 million cash consideration paid to Pelthos. For the year ended December 31, 2025, Ligand recognized $4.6 million transaction cost related to Pelthos Transaction which are recorded in general and administrative expenses on our consolidated statement of operations.
Net assets sold, and cash consideration paid were as follows (in thousands):
July 1, 2025
Cash and cash equivalents
$2,817 
Accounts receivable, net
48 
Other current assets
7,910 
Property and equipment, net
11,091 
Intangible assets, net
8,501 
Goodwill
3,709 
Operating lease right-of-use assets
3,625 
Other assets
4,812 
Accounts payable
(993)
Accrued liabilities
(3,894)
Deferred revenue
(2,835)
Operating lease liabilities
(3,566)
Short-term bridge loans(6,963)
Deferred income taxes, net
(3,069)
Other long-term liabilities
(17,441)
Net assets sold
3,752 
Cash consideration paid5,268 
Net assets sold and cash consideration paid
$9,020 
Fair value of the consideration received included the following (in thousands):
Equity method investment (common shares)$18,900 
Other investment (Series A convertible preferred shares)43,192 
Total consideration received
62,092 
Net assets sold and cash consideration paid
9,020 
Gain from Pelthos Transaction
$53,072 
On July 10, 2025, Pelthos commercially launched Zelsuvmi. Ligand earned a $5 million milestone payment from Pelthos following the commercial launch of Zelsuvmi which was recorded in contract revenue and income in our consolidated statement of operations for the year ended December 31, 2025. We are also entitled to a 13% royalty on worldwide sales of Zelsuvmi, excluding Japan, and up to an additional $5 million in commercial sales milestones.
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. 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. We determined that the sale of Pelican met the definition of a deconsolidation of a business.
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.
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 initially included in noncurrent derivative assets in our consolidated balance sheet as of December 31, 2024. They were recognized as derivative assets under ASC 815, Derivatives and Hedging, as they have two underlying 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 were recorded at fair value as of September 18, 2023, and have been subsequently marketed to fair value at each reporting period. 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, net, in our consolidated statement of operations.
As discussed in Note 1, Basis of Presentation and Summary of Significant Accounting Policies, as a result of our early adoption of ASU 2025-07, Primrose mRNA has been qualified for a new derivative scope exception introduced by ASU 2025-07, and is now accounted for as a financial royalty asset with January 1, 2025 being the effective date of ASU 2025-07 adoption. For additional information, see Note 7, Balance Sheet Account Details and Note 8, Fair Value Measurements.
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 shares and restricted shares investments in Primrose Bio have a substantive liquidation preference, they are not substantially similar to the common shares investment and are therefore recorded as equity securities under ASC 321, Investments - Equity Securities.
We account for our common shares 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.
During 2024, Primrose Bio received equity investments from third parties. Based on this information, we recognized an impairment loss on our equity method investment in Primrose Bio in the amount of $5.8 million during the year ended December 31, 2024, which was presented in gain (loss) from change in fair value of equity method investments and other investments in our consolidated statement of operations for the year ended December 31, 2024. There was no impairment to our equity method investment in Primrose Bio during the years ended December 31, 2025 and 2023.
Our proportionate 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 in Primrose Bio accordingly. Our proportionate share of the net income or loss of Primrose Bio is presented in other non-operating expense, net, in our consolidated statements of operations. We resume recognition of our proportionate share of earnings only after the cumulative unrecognized losses have been recovered.
As of December 31, 2024, equity method investment in Primrose Bio had been written down to zero, and we are not required to fund further losses from Primrose Bio. Primrose Bio further generated losses for the year ended December 31, 2025, but since we do not record our proportionate share of the investee’s losses beyond the zero basis, the carrying value of our equity method investment in Primrose Bio remained at zero as of December 31, 2025.
We have no outstanding advances, guarantees, or commitment to fund Primrose Bio’s losses; therefore, our proportionate share of net loss of Primrose Bio for the year ended December 31, 2025 was not recorded. Ligand owned 31.5% and 31.4% of the equity of Primrose Bio as of December 31, 2025 and 2024, respectively.
We determined that the Series A preferred shares and restricted shares 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 shares and restricted shares were 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 observable price changes or impairment to our investments in Series A preferred shares and restricted shares during the years ended December 31, 2025, and 2023. The change in fair value of our investments in Series A preferred shares and restricted shares (including the impairment) is presented in gain
(loss) from change in fair value of equity-method investments and other investments 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.
v3.25.4
Investment Transactions
 12 Months Ended
Dec. 31, 2025
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
Investment Transactions Investment Transactions
LeonaBio (formerly known as Athira Pharma) Transaction: Q4 2025
On December 18, 2025, we invested $1 million to acquire common stock, Series A and Series B common warrants of LeonaBio. We accounted for the common stock as equity securities under ASC 321, Investments - Equity Securities, and will mark it to fair value at each subsequent reporting period, because we do not have a significant influence over the investee and LeonaBio is a publicly traded company. We accounted for the Series A and B common warrants (LeonaBio Warrants) as derivative assets under ASC 815, Derivatives and Hedging, recognizing them at fair value as of the transaction date and marking to fair value at each subsequent reporting period. The LeonaBio Warrants are presented in noncurrent derivative assets line in our consolidated balance sheet. Out of the $1.0 million LeonaBio transaction price, $0.7 million was assigned to the common stock, $0.1 million was assigned to the Series A warrants, and $0.2 million was assigned to the Series B warrants.
Pelthos Convertible Notes Transaction: Q4 2025
On November 6, 2025, Ligand and other investors, for an aggregate purchase price of $18 million ($9 million of which was paid by Ligand), obtained on a proportional basis: (a) Pelthos private convertible notes (“Pelthos Convertible Notes”), (b) low single-digit royalty rights on U.S. net sales of Pelthos’ Xepi (“Xepi rights”), and (c) milestone rights, and low single-digit royalty rights on Zelsuvmi net sales in Japan by Sato Pharmaceuticals Co, Ltd., if Zelsuvmi is approved in Japan (“Sato rights”).
The Pelthos Convertible Notes has a principal amount of $18 million (to all investors) and is secured obligations of Pelthos and bears interest at a rate of 8.5% per annum, payable quarterly in arrears or capitalized and payable at maturity (at Pelthos discretion). The Pelthos Notes will mature on November 6, 2027, unless earlier repurchased, redeemed or converted into shares of Pelthos common stock in accordance with their terms at conversion price of $29.73. Ligand’s ownership interest of Pelthos’ common stock is capped at 49.9%.
We identified four units of account related to this transaction, (1) host debt, (2) embedded conversion option, (3) Xepi rights, and (4) Sato rights. Out of the $9 million Pelthos convertible notes transaction price and the $0.3 million transaction costs recognized as of the transaction closing date, $4.8 million was assigned to the embedded conversion option at its fair value as of the transaction date, and the remaining amount was assigned between the host debt ($3.8 million), Xepi rights ($0.5 million), and Sato rights ($0.2 million) based on their relative fair value.
The bifurcated embedded conversion option is accounted for as a derivative asset under ASC 815, Derivatives and Hedging, recognizing it at fair value as of the transaction date and marking it to fair value at each subsequent reporting period. The fair value of the embedded conversion option is determined using a Black-Scholes model with the following assumptions as of November 6, 2025, and December 31, 2025, respectively: expected term of 2.0 years and 1.9 years, volatility of 60.0% (as of both dates), risk-free rate of 3.6% and 3.5%, and Pelthos stock price of $37.00 and $31.00. We recognized a mark-to-market loss of $1.4 million for the stub period between November 6, 2025 and December 31, 2025.
We accounted for the convertible note as a receivable under ASC 310, Receivables, and is included in other investments in our consolidated balance sheet. For the period from November 6, 2025, to December 31, 2025, we recognized $0.1 million of coupon interest earned (which was capitalized into principal amount at Pelthos’ decision), and $0.2 million of debt discount amortization. We accounted for the Xepi and Sato rights as financial royalty assets (loan receivables) under ASC 310, Receivables, and they are currently put under the non-accrual method as management cannot reliably estimate future cash flows from these programs.
Arecor Transaction: Q3 2025
On September 24, 2025, we invested $7 million to purchase economic rights from Arecor Limited (“Arecor”), with an additional $1 million in deferred consideration payable in two equal parts at the six- and twelve-month anniversaries of the transaction closing date. The transaction was accounted for as an asset acquisition.
In connection with the transaction, Ligand received the economic rights in two partner programs: 1) a single-digit royalty on global net sales of AT220, an Arestat®-enhanced biosimilar product marketed by a global pharmaceutical company; and 2) potential annual technology access fees and milestones from AT292 (efdoralprin alfa/SAR447537/INBRX-101), a partnered program with Sanofi.
We accounted for the right to future royalties and rights as financial royalty assets (loan receivables) under ASC 310, Receivables. The AT220 financial royalty asset is placed on the accrual method as this drug is commercially available. We also receive the right to collect on royalties not yet received by Arecor and those are recorded as a receivable in other current assets in our consolidated balance sheet. The AT292 financial royalty asset is currently put under the non-accrual method as this drug is still under development and management cannot reliably estimate future cash flows from this program.
In addition to the economic rights, Ligand received warrants to purchase 1,002,739 ordinary shares of Arecor Therapeutics Plc, exercisable over a ten-year period (“Arecor Warrant”). We accounted for the Arecor Warrant as derivative assets under ASC 815, Derivatives and Hedging, recognizing them at fair value as of the transaction date and marking them to fair value at each subsequent reporting period. Arecor Warrant is presented in noncurrent derivative assets line in our consolidated balance sheet. The fair value of the Arecor Warrant is determined using a Black-Scholes model with the following assumptions as of September 24, 2025, and December 31, 2025, respectively: expected term of 10.0 years and 9.7 years, volatility of 32% and 33%, risk-free rate of 4.7% and 4.6%, and Arecor stock price of $0.73 and $0.81.
Out of the $7 million Arecor transaction price and the $1 million of deferred consideration recognized as of the transaction closing date, $0.5 million was assigned to the Arecor Warrant, $4.8 million and $1.9 million were assigned to AT220 and AT292 financial royalty assets, respectively, and $0.8 million was assigned to the AT220 receivable.
We are also obligated to pay up to $3 million in contingent consideration tied to commercial milestones in the AT292 partnered program. We accounted for this contingent consideration in accordance with ASC 450, Contingencies, and will recognize respective liability when the contingency is resolved, and the liability becomes payable. No contingent consideration was recognized as of the acquisition date or as of December 31, 2025.
Orchestra Transaction: Q3 2025
On July 31, 2025, Ligand entered into a definitive agreement to invest up to $40 million to fund Orchestra BioMed's late-stage partnered cardiology programs, consisting of a $20 million cash payment paid at closing and an additional $5 million to purchase shares of Orchestra’s common stock in an equity private placement at the price of $2.75 per share. Ligand also agreed to fund an additional $15 million, subject to certain conditions precedent, at the nine-month anniversary of the transaction closing date. In exchange, Ligand received a low double-digit royalty on the first $100 million of Orchestra's annual revenues related to AVIM therapy and Virtue SAB programs in all indications. Ligand will also earn a mid-single-digit royalty on Orchestra's annual revenues exceeding $100 million related to AVIM therapy in the uncontrolled hypertension and increased cardiovascular risk indication and Virtue SAB in coronary artery disease indications. We also received warrants to purchase shares of Orchestra’s common stock (“Orchestra Warrant”). The transaction closed on August 4, 2025.
The $5 million equity private placement is included in our short-term investments and subsequently marked to market during each reporting period. Of the remaining $20 million, $2.3 million was assigned to the Orchestra Warrant derivative asset and $17.8 million was assigned to the research and development funding arrangement and recognized in research and development expenses for the year ended December 31, 2025.
The Orchestra Warrant is presented in the noncurrent derivative assets line in our consolidated balance sheet. The derivative asset was recorded at fair value as of August 4, 2025, and is marked to fair value at each subsequent reporting period. The fair value of the Orchestra Warrant was determined using a Black-Scholes model with the following assumptions as of August 4, 2025, and December 31, 2025, respectively: expected term of 10.0 years and 9.6 years, volatility of 73% and 72%, risk-free rate of 4.4% and 4.2%, and Orchestra stock price of $2.68 and $4.15.
We accounted for the acquired royalty rights as a research and development funding arrangement under ASC 730-20, Research and Development Arrangements, because (a) Orchestra is contractually required to use Ligand’s capital for the execution of the Phase 3 clinical study for AVIM Therapy, and (b) the repayment of Ligand funding solely depends on the research and development results having future economic benefits. As Ligand will not be controlling or actively involved in the ongoing research and development efforts, this amount was expensed in the period of funding.
Castle Creek Transaction: Q1 2025
On February 24, 2025, we entered into a Purchase and Sale Agreement (the “Castle Creek Investment” transaction) 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. D-Fi is Castle Creek’s lead candidate for patients with dystrophic epidermolysis bullosa (“DEB”).
Pursuant to the Castle Creek Investment transaction, Ligand 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) on a proportional basis: (a) a high single digit royalty on worldwide sales of D-Fi; and (b) the Warrant to purchase shares of Castle Creek’s Series D-1 Preferred Stock, exercisable until February 24, 2035 (“Castle Creek Warrant”). As part of the Agreement, Castle Creek granted the Purchasers a security interest in certain assets related to the programs included in the Agreement, subject to certain customary exceptions.
In connection with the Castle Creek Investment transaction, on February 24, 2025, we acquired a portion of unsecured subordinated promissory notes (with an aggregate principal amount of $8.3 million payable upon FDA approval of D-Fi) from a Castle Creek related party for $1.8 million (“Milestone Buyout”). Management concluded that the individual prices of these two transactions (Castle Creek Investment and Milestone Buyout) reflect the fair value of the related assets acquired on a standalone basis.
We accounted for the Milestone Buyout transaction as a financial royalty asset. We further identified two units of account in the Castle Creek Investment transaction: (1) the Castle Creek Warrant, accounted for as a derivative asset; and (2) D-Fi royalty rights accounted for as a research and development funding arrangement under ASC 730-20, Research and Development Arrangements, because (a) Castle Creek is contractually required to use Ligand’s capital for the execution of the Phase 3 clinical study for D-Fi and (b) the repayment of Ligand funding solely depends on the research and development results having future economic benefits. Out of the $50.1 million Castle Creek Investment transaction price, including transaction costs, $5.8 million was assigned to the Castle Creek Warrant (based on their estimated fair value as of the effective date), with the remaining amount of $44.3 million being assigned to D-Fi royalty rights, and recognized in research and development expenses for the period (as Ligand will not be controlling or actively involved in the ongoing research and development efforts).
The Castle Creek Warrant derivative is presented in the noncurrent derivative assets line in our consolidated balance sheet. The Castle Creek Warrant was recorded at fair value as of February 24, 2025, and is marked to fair value at each subsequent reporting period. The fair value of the Castle Creek Warrant was determined using a Black-Scholes model with the following assumptions as of February 24, 2025, and December 31, 2025, respectively: expected term of 3.5 years and 2.7 years, volatility of 110% and 110%, and risk-free rate of 4.2% and 3.5%.
Agenus Transaction: Q2 2024
On May 29, 2024, we closed the transactions (the “Agenus Transaction”) 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), 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 expired 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 five-year warrant (“Agenus Warrant”) to purchase 867,052 shares of its common stock, at an exercise price equal to $17.30.
We initially accounted for all Agenus Partnered Programs as derivative assets. We reclassified them to financial royalty assets effective January 1, 2025 with the adoption of ASU 2025-07. The assets are currently put under the non-accrual method as management cannot reliably estimate future cash flows from these programs.
We accounted for the Agenus Warrant and Upsize Option as derivative assets, presented in noncurrent derivative assets line in our consolidated balance sheets. 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 the Agenus Warrant is determined using a Black-Scholes model. The following assumptions were used as of December 31, 2025 and December 31, 2024, respectively: expected term of 3.4 years and 3.4 years, volatility of 97% and 102%, risk-free rate of 3.6% and 4.3%, Agenus stock price of $3.14 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 and it further expired on June 30, 2025.
For additional information on the Agenus Warrant and Upsize Option, see Note 8, Fair Value Measurements. For additional information on the Agenus Partnered Program financial royalty asset, see Note 6, Financial Royalty Assets, net.
We initially accounted for all Agenus Partnered Programs as derivative assets. We reclassified them to financial royalty assets effective January 1, 2025 with the adoption of ASU 2025-07. The assets are currently put under the non-accrual method as management cannot reliably estimate future cash flows from these programs. 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 Agenus Partner Programs, Agenus Warrant and Upsize Option as of May 29, 2024. For additional information on the Agenus BOT/BAL rights, see Note 6, Financial Royalty Assets, net.
v3.25.4
Acquisitions
 12 Months Ended
Dec. 31, 2025
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
Acquisitions Acquisitions
Apeiron Acquisition
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 an asset 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 assigned 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 was recognized as of December 31, 2025 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 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 over 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 Acquisition
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 and on September 27, 2023, the bankruptcy court approved our $12.2 million bid to purchase Novan's 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 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.
On April 3, 2024, we announced the creation of our Pelthos Therapeutics business, operated through our wholly owned subsidiary LNHC, Inc., 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 first 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 a proprietary nitric oxide-based NITRICIL technology platform. The rights to Zelsuvmi and all assets related to the NITRICIL technology platform were acquired by LNHC from Novan in September 2023 in the Novan acquisition described above.
In July 2025, LNHC, Inc. merged with and into CHRO Merger Sub Inc., a wholly owned subsidiary of Channel, and became a wholly owned subsidiary of Channel. The combined company now operates under the name Pelthos Therapeutics Inc. See Note 2, Pelthos Transaction for additional information.
v3.25.4
Sale of Pelican Business and Investment in Primrose Bio
 12 Months Ended
Dec. 31, 2025
Discontinued Operations and Disposal Groups [Abstract]  
Sale of Pelican Business and Investment in Primrose Bio Pelthos Transaction
In July 2025, we closed our definitive merger agreement to combine Ligand’s wholly owned subsidiary LNHC, Inc., the holding company for the Pelthos Therapeutics business, with CHRO Merger Sub Inc., a wholly owned subsidiary of Channel Therapeutics Corporation (“Channel”). Upon the effectiveness of the merger LNHC, Inc. became a wholly owned subsidiary of Channel, and Channel changed its name to “Pelthos Therapeutics Inc.” (“Pelthos”) and began trading on the NYSE American exchange under the ticker PTHS. We received shares of Pelthos’ common stock in connection with the merger. The merger was supported by approximately $50 million in equity private placement capital raised from a group of strategic investors (including Ligand) led by Murchinson Ltd. (“Investor Group”).
Ligand invested $18 million and the other members of the Investor Group invested $32 million in Pelthos in exchange for shares of Pelthos’ Series A convertible preferred stock. Out of the $18.0 million invested by Ligand, $12.7 million was invested by us prior to the closing of the Pelthos Transaction in the form of an intercompany loan. In connection with the closing of the Pelthos Transaction this intercompany loan was cancelled, and we contributed the remaining balance of $5.3 million to Pelthos. The transactions described herein are collectively referred to as the “Pelthos Transaction”). As of December 31, 2025, we own approximately 48% of Pelthos’ outstanding shares of common stock, and approximately 60% of Pelthos outstanding shares of Series A convertible preferred stock. Our ownership interest of Pelthos’ common stock is capped at 49.9% pursuant to the terms of the definitive agreements for the Pelthos Transaction.
Our CEO and director, Todd Davis, was also a director on Channel’s board of directors. Mr. Davis did not participate in and recused himself from both boards’ consideration and approval of the Pelthos Transaction, which was in the case of the Company approved by an authorized special transaction committee of the Board. Upon the consummation of the Pelthos
Transaction, Mr. Davis and Richard Baxter (our Senior Vice President of Investment Operations) were appointed to Pelthos’ board of directors.
As LNHC, Inc. has the input, process and output elements defined in ASC 805, Business Combinations, we concluded the sale qualifies as a sale of business, and as such, as of July 1, 2025, we derecognized all assets and liabilities of LNHC, Inc and did not include its operations for the third quarter of 2025 in our consolidated statement of operations for the year ended December 31, 2025. Pelthos is considered a related party to Ligand due to Ligand’s significant equity interest and ongoing contractual arrangements, although Ligand does not control Pelthos and is not the primary beneficiary under ASC 810.
Ligand received shares of Pelthos common stock and Series A convertible preferred stock in connection with the Pelthos Transaction. We assessed Ligand’s consolidation requirements for these investments under ASC 810, Consolidation, and concluded that Ligand is not required to consolidate Pelthos.
We recorded Pelthos Series A convertible preferred shares and Pelthos common shares in other investments and equity method investments, respectively, within our consolidated balance sheet, and elected to subsequently measure them using the fair value option, with the change in fair value for these investments being recorded to gain (loss) from change in fair value of equity method investments and other investments in our consolidated statements of operations. Ligand was restricted from engaging in any transactions involving Pelthos common stock during the lock‑out period between July 1, 2025 and December 31, 2025.
Pelthos Series A
convertible preferred shares
Pelthos common
shares
Total
Fair value on July 1, 2025
$43,192 $18,900 $62,092 
Change in fair value
63,070 27,600 90,670 
Fair value on December 31, 2025
$106,262 $46,500 $152,762 
As a result of the Pelthos Transaction, on July 1, 2025, Ligand recognized income in the amount of $53.1 million which was recorded to contract revenue and income in our consolidated statement of operations for the year ended December 31, 2025. The amount of income from Pelthos Transaction represents the excess of the fair value of 1) our investment in Pelthos Series A convertible preferred shares and Pelthos common shares ($62.1 million in total); 2) the carrying amount of LNHC, Inc. assets and liabilities as of July 1, 2025, the date of sale; and 3) $5.3 million cash consideration paid to Pelthos. For the year ended December 31, 2025, Ligand recognized $4.6 million transaction cost related to Pelthos Transaction which are recorded in general and administrative expenses on our consolidated statement of operations.
Net assets sold, and cash consideration paid were as follows (in thousands):
July 1, 2025
Cash and cash equivalents
$2,817 
Accounts receivable, net
48 
Other current assets
7,910 
Property and equipment, net
11,091 
Intangible assets, net
8,501 
Goodwill
3,709 
Operating lease right-of-use assets
3,625 
Other assets
4,812 
Accounts payable
(993)
Accrued liabilities
(3,894)
Deferred revenue
(2,835)
Operating lease liabilities
(3,566)
Short-term bridge loans(6,963)
Deferred income taxes, net
(3,069)
Other long-term liabilities
(17,441)
Net assets sold
3,752 
Cash consideration paid5,268 
Net assets sold and cash consideration paid
$9,020 
Fair value of the consideration received included the following (in thousands):
Equity method investment (common shares)$18,900 
Other investment (Series A convertible preferred shares)43,192 
Total consideration received
62,092 
Net assets sold and cash consideration paid
9,020 
Gain from Pelthos Transaction
$53,072 
On July 10, 2025, Pelthos commercially launched Zelsuvmi. Ligand earned a $5 million milestone payment from Pelthos following the commercial launch of Zelsuvmi which was recorded in contract revenue and income in our consolidated statement of operations for the year ended December 31, 2025. We are also entitled to a 13% royalty on worldwide sales of Zelsuvmi, excluding Japan, and up to an additional $5 million in commercial sales milestones.
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. 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. We determined that the sale of Pelican met the definition of a deconsolidation of a business.
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.
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 initially included in noncurrent derivative assets in our consolidated balance sheet as of December 31, 2024. They were recognized as derivative assets under ASC 815, Derivatives and Hedging, as they have two underlying 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 were recorded at fair value as of September 18, 2023, and have been subsequently marketed to fair value at each reporting period. 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, net, in our consolidated statement of operations.
As discussed in Note 1, Basis of Presentation and Summary of Significant Accounting Policies, as a result of our early adoption of ASU 2025-07, Primrose mRNA has been qualified for a new derivative scope exception introduced by ASU 2025-07, and is now accounted for as a financial royalty asset with January 1, 2025 being the effective date of ASU 2025-07 adoption. For additional information, see Note 7, Balance Sheet Account Details and Note 8, Fair Value Measurements.
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 shares and restricted shares investments in Primrose Bio have a substantive liquidation preference, they are not substantially similar to the common shares investment and are therefore recorded as equity securities under ASC 321, Investments - Equity Securities.
We account for our common shares 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.
During 2024, Primrose Bio received equity investments from third parties. Based on this information, we recognized an impairment loss on our equity method investment in Primrose Bio in the amount of $5.8 million during the year ended December 31, 2024, which was presented in gain (loss) from change in fair value of equity method investments and other investments in our consolidated statement of operations for the year ended December 31, 2024. There was no impairment to our equity method investment in Primrose Bio during the years ended December 31, 2025 and 2023.
Our proportionate 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 in Primrose Bio accordingly. Our proportionate share of the net income or loss of Primrose Bio is presented in other non-operating expense, net, in our consolidated statements of operations. We resume recognition of our proportionate share of earnings only after the cumulative unrecognized losses have been recovered.
As of December 31, 2024, equity method investment in Primrose Bio had been written down to zero, and we are not required to fund further losses from Primrose Bio. Primrose Bio further generated losses for the year ended December 31, 2025, but since we do not record our proportionate share of the investee’s losses beyond the zero basis, the carrying value of our equity method investment in Primrose Bio remained at zero as of December 31, 2025.
We have no outstanding advances, guarantees, or commitment to fund Primrose Bio’s losses; therefore, our proportionate share of net loss of Primrose Bio for the year ended December 31, 2025 was not recorded. Ligand owned 31.5% and 31.4% of the equity of Primrose Bio as of December 31, 2025 and 2024, respectively.
We determined that the Series A preferred shares and restricted shares 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 shares and restricted shares were 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 observable price changes or impairment to our investments in Series A preferred shares and restricted shares during the years ended December 31, 2025, and 2023. The change in fair value of our investments in Series A preferred shares and restricted shares (including the impairment) is presented in gain
(loss) from change in fair value of equity-method investments and other investments 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.
v3.25.4
Financial Royalty Assets, net
 12 Months Ended
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Financial Royalty Assets, net Financial Royalty Assets, net
As of December 31, 2025 and 2024, financial royalty assets consist of the following (in thousands):
December 31, 2025December 31, 2024
Gross carrying value(2)
Allowance (1)
Net carrying value (2)
Gross carrying value
Allowance (1)
Net carrying value
Qarziba
$118,593 $(498)$118,095 $105,329 $(484)$104,845 
Agenus Bot/Bal40,815 (408)40,407 40,815 (408)40,407 
Tolerance Therapeutics (Tzield)25,257 (98)25,159 25,613 (101)25,512 
Ohtuvayre inventors16,921 (151)16,770 15,969 (157)15,812 
Elutia (CorMatrix)6,607 (1,107)5,500 9,418 (2,268)7,150 
AT220 (Tyenne)5,132 (132)5,000 — — — 
Primrose mRNA3,281 (98)3,183 — — — 
Others5,769 (214)5,555 1,443 (120)1,323 
Total financial royalty assets, net$222,375 $(2,706)$219,669 $198,587 $(3,538)$195,049 
(1) The amounts of allowance include accumulated allowance for changes in expected cash flows and current expected credit losses.
(2) The amounts include current portion of financial royalty assets which represents an estimation for current quarter royalty receipts that are to be collected during the subsequent quarter. The current portion of financial royalty assets amounted to $22.8 million and $10.0 million were presented in a separate line on our consolidated balance sheets as of December 31, 2025 and December 31, 2024, respectively.
Financial royalty assets represent future economic rights acquired by Ligand in various transactions. As discussed in Note 1, Basis of Presentation and Summary of Significant Accounting Policies, with the early adoption of ASU 2025-07, certain economic rights in partner programs that were previously accounted for as derivative assets (Primrose mRNA, Agenus partner programs, and Castle Creek milestone) are now accounted for as financial royalty assets.
There was $6.2 million impairment loss for the year ended December 31, 2025 related to Agenus partner programs. 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 Programs
As discussed in Note 4, 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 the 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 account for InvIOs financial royalty assets using the non-accrual method until we are able to reliably estimate future cash flows.
Agenus Programs
As discussed in Note 3, Investment Transactions, we acquired a synthetic royalty on future global net sales of Agenus’ novel immuno-oncology botensilimab in combination with balstilimab (“Bot/Bal”) program, which was accounted for as a financial royalty asset.
In addition to Bot/Bal, we acquired economic rights in certain partner programs (including UGN-301 with Urogen). We initially accounted for such economic rights as derivative assets, but reclassified them to financial royalty assets on January 1, 2025 with the adoption of ASU 2025-07. Refer to Note 1, Basis of Presentation and Summary of Significant Accounting Policies, for additional information related to the adoption of ASU 2025-07. As of December 31, 2025, we recognized a full impairment of all Agenus partner programs, including UGN-301 which was returned to Agenus by Urogen in the fourth quarter of 2025.
Tzield
In November 2023, we acquired Tolerance Therapeutics for $20 million in cash. Tolerance Therapeutics was 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, a deferred tax liability of $5.5 million was recognized in 2024 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 this financial royalty asset on the non-accrual method until we are able to reliably estimate future cash flows.
Ohtuvayre Inventors
In March 2024, August 2024 and January 2025, we acquired future milestone and royalty rights related to Ohtuvayre from certain Ohtuvayre inventors for a total of $3.8 million, $13.6 million and $1.8 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. Verona was further acquired by Merck on October 7, 2025. We started our recognition of income from Ohtuvayre inventors financial royalty assets from October 1, 2025, as we believe at this point of Ohtuvayre commercialization, management can reliably estimate future cash flows.
Elutia
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 (formerly known as Aziyo Biologics, Inc.) 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.
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. In May 2025, we executed a second amendment to our agreement with Elutia where we received $2.3 million of Elutia common stock in lieu of cash payment, which was recorded to short-term investments in our consolidated balance sheet. We further considered the current and expected future economic and market conditions, current company performance and recent payments received from Elutia. In October 2025, we executed a third amendment to our agreement with Elutia in connection with Elutia’s sale of its BioEnvelope business, including the EluPro™ and CanGaroo® bioenvelopes, to Boston Scientific Corporation, which did not materially alter our current and expected future economic expectations regarding our partnership with Elutia.
During the years ended December 31, 2025, 2024 and 2023, respectively, we recorded a reduction of $1.2 million, a reduction of $5.2 million and an increase of $3.2 million to Elutia allowance of expected credit loss. The credit loss adjustments were included in general and administrative expense in our consolidated statements of operations.
Arecor Programs
As discussed in Note 3, Investment Transactions, we acquired certain financial royalty assets within the Arecor Transaction, including AT220 (Tyenne) and AT292 programs, recorded at $4.8 million and $1.9 million, respectively, as of the Arecor Transaction closing date. As AT220 is a commercial phase program, we are able to reasonably estimate future cash flows for this financial royalty asset and, as such, we recognize income from the AT220 financial royalty assets starting from the Arecor Transaction closing date. We account for the AT292 financial royalty asset using the non-accrual method until we are able to reliably estimate future cash flows.
Primrose mRNA
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. 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. A portion of the consideration was initially recognized as a derivative asset and adjusted to fair value each reporting period. Upon the adoption of ASU 2025-07, we reclassified the fair value of this asset to a financial royalty asset as of January 1, 2025. The asset is currently put under the non-accrual method as management cannot reliably estimate future cash flows from this program. Refer to Note 1, Basis of Presentation and Summary of Significant Accounting Policies, for additional information related to the adoption of ASU 2025-07.
Soticlestat
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.
v3.25.4
Balance Sheet Account Details
 12 Months Ended
Dec. 31, 2025
Other Balance Sheet Details [Abstract]  
Balance Sheet Account Details Balance Sheet Account Details
Short-term Investments
The following table summarizes the various categories of our short-term investments at December 31, 2025 and 2024 (in thousands):
Cost
Gross unrealized
gains
Gross unrealized
losses
Estimated
fair value
December 31, 2025
U.S. Government Agencies$175,780 $89 $(38)$175,831 
Corporate notes/bonds124,249 98 (52)124,295 
U.S. Treasuries113,055 137 (4)113,188 
Commercial paper74,473 21 (8)74,486 
Corporate equity securities15,733 58,852 (3,791)70,794 
Total short-term investments$503,290 $59,197 $(3,893)$558,594 
December 31, 2024
U.S. Treasuries$78,442 $19 $(13)$78,448 
Corporate equity securities11,386 38,808 (6,595)43,599 
Commercial paper 23,483 5 (6)23,482 
Certificates of Deposit22,812 12 (4)22,820 
Corporate notes/bonds15,496 21 (8)15,509 
Total short-term investments$151,619 $38,865 $(6,626)$183,858 
Gain from short-term investments in 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, 2025
Amortized CostFair Value
Within one year$295,974 $296,093 
After one year through five years191,583 191,707 
     Total$487,557 $487,800 
The following table summarizes our available-for-sale debt securities in an unrealized loss position (in thousands):
Less than 12 months12 months or greaterTotal
Gross
Unrealized
Losses		Estimated
Fair Value		Gross
Unrealized
Losses		Estimated
Fair Value		Gross
Unrealized
Losses		Estimated
Fair Value
December 31, 2025
Corporate notes/bonds$(14)$16,395 $(38)$49,311 $(52)$65,706 
Commercial paper(8)24,071 — — (8)24,071 
U.S. Government Agencies(5)26,554 (33)40,744 (38)67,298 
U.S. Treasuries(4)9,466 — — (4)9,466 
     Total$(31)$76,486 $(71)$90,055 $(102)$166,541 
December 31, 2024
Certificates of Deposit$(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 
Our investment policy is capital preservation and we only invested in U.S.-dollar denominated investments. We held a total of 68 securities which were in an unrealized loss position with a total of $0.1 million unrealized losses as of December 31, 2025. 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, 2025. Accordingly, there was no credit loss recognized for the year ended December 31, 2025. There was no credit loss recognized for the years ended December 31, 2024 and 2023.
We held 1.0 million shares of Viking common stock as of December 31, 2025, 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 gain from short-term investments in our consolidated statements of operations. As of December 31, 2025 and December 31, 2024, our investment in Viking common stock was $35.2 million and $40.2 million, respectively, and was included in short-term investments in our 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 was no sale of Viking common stock during the year ended December 31, 2025.
Goodwill and Intangible Assets, Net
Goodwill and identifiable intangible assets consist of the following (in thousands):
December 31,
20252024
Indefinite-lived intangible assets
Goodwill$101,541 $105,250 
Definite-lived intangible assets
Completed technology29,619 39,249 
Less: Accumulated amortization(20,809)(19,710)
Trade name2,642 2,642 
Less: Accumulated amortization(1,976)(1,843)
Customer relationships29,600 29,600 
Less: Accumulated amortization(22,144)(20,652)
Contractual relationships360,000 360,000 
Less: Accumulated amortization(151,494)(122,638)
Total definite lived intangible assets225,438 266,648 
Total goodwill and other identifiable intangible assets, net$326,979 $371,898 
The change in goodwill carrying value for the year ended December 31, 2025 relates to the derecognition of all assets and liabilities of LNHC, Inc. in connection with the Pelthos Transaction which closed in the third quarter of 2025. 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 $32.7 million, $33.0 million, and $33.7 million were recognized for the years ended December 31, 2025, 2024, and 2023, respectively. The estimated amortization expense for the years ending December 31, 2026 through 2030 is as follows (in thousands):
Year ended December 31, Amount
2026$32,387 
2027$32,266 
2028$31,660 
2029$31,660 
2030$30,435 
For each of the years ended December 31, 2025, 2024, and 2023, there was no impairment of intangible assets with finite lives.
Derivative Assets
Derivative assets consist of the following (in thousands):
December 31,
20252024
Castle Creek Warrant$4,989 $— 
Orchestra Warrant3,799 — 
Pelthos Conversion Option3,432 — 
Agenus Warrant1,322 806 
LeonaBio Warrants (Series A and Series B)1,461 — 
Arecor Warrant629 — 
Agenus Partner Programs$— 6,326 
Primrose mRNA— 3,451 
Total noncurrent derivative assets$15,632 $10,583 
A change in the fair value of warrants that amounted to $1.0 million for the year ended December 31, 2025 was included in other non-operating expense, net, in the consolidated statement of operations, which included $1.5 million for the
Orchestra Warrants, $1.2 million for the LeonaBio Warrants, $0.5 million for Agenus Warrants, and $0.1 million for the Arecor Warrants, partially offset by $(1.5) million for the Pelthos Conversion Option and $(0.8) million for Castle Creek Warrants.
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 statement 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, net, in the consolidated statement of operations. 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 recognized in other non-operating expense, net, in the consolidated statement of operations.
Other Investments
Other investments consist of the following (in thousands):
December 31,
20252024
Pelthos Series A Preferred Shares$106,262 $— 
Equity securities in Primrose Bio6,531 6,712 
InvIOs investment4,500 4,196 
Pelthos loan receivable 4,158 — 
Total other investments$121,451 $10,908 
During 2025, we recognized fair value adjustments of $63.1 million to out Pelthos Series A preferred shares, which was included in gain (loss) from change in fair value of equity method investments and other investments in our consolidated statement of operations. During 2024, we recognized fair value adjustments of $25.8 million and impairments of $5.8 million to our equity securities in Primrose Bio, and we recognized a full impairment of $3.0 million for our investment in Neuritek warrants, which was included in gain (loss) from change in fair value of equity method investments and other investments in our consolidated statement of operations.
Other Assets
Other assets consist of the following (in thousands):
December 31,
20252024
Property and Equipment, Net
$3,571 $15,133 
Right-of-use assets7,223 9,673 
Other1,788 6,924 
$12,582 $31,730 
Property and Equipment, Net
Property and equipment are stated at cost and consist of the following (in thousands):
December 31,
20252024
Lab and office equipment$4,472 $6,868 
Leasehold improvements2,518 10,464 
Computer equipment and software608 1,850 
Solar equipment2,551 — 
Construction in progress— 4,219 
10,149 23,401 
Less: accumulated depreciation and amortization(6,578)(8,268)
$3,571 $15,133 
Depreciation of equipment is computed using the straight-line method over the estimated useful lives of the assets which ranges from two to 25 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 $1.0 million, $2.3 million, and $2.9 million was recognized for the years ended December 31, 2025, 2024, and 2023, respectively, and was included in general and administrative and research and development expenses in our consolidated statements of operations.
Refer to Note 10, Leases, for more information on the right-of-use asset balance.
Accrued Liabilities
Accrued liabilities consist of the following (in thousands):
 December 31,
 20252024
Royalties owed to third parties$16,202 $6,500 
Compensation6,388 5,522 
Professional fees1,997 4,858 
Subcontractor1,756 1,756 
Value-added tax1,753 5,159 
Accrued interest1,307 — 
Customer deposit 621 621 
Other1,429 3,490 
Total accrued liabilities$31,453 $27,906 
Contingent liabilities
The following table summarizes the roll-forward of contingent liabilities as of December 31, 2025 and 2024 (in thousands):
December 31, 2023
PaymentsFair Value Adjustment
December 31, 2024
PaymentsFair Value Adjustment
December 31, 2025
Cydex$320 $(200)$263 $383 $(50)$62 $395 
Metabasis2,878 — 420 3,298 (1,270)798 2,826 
Total $3,198 $(200)$683 $3,681 $(1,320)$860 $3,221 
Other Long-term Liabilities
Other long-term liabilities consist of the following (in thousands):
 December 31,
 20252024
Pelthos contract liability$— $15,938 
Unrecognized tax benefits16,588 14,160 
Other long-term liabilities41 65 
Total other long-term liabilities$16,629 $30,163 
v3.25.4
Fair Value Measurements
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
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, 2025 and 2024 (in thousands):
Fair Value Measurements at Reporting Date Using
December 31, 2025
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(1)
$558,594 $183,982 $374,612 $— 
Pelthos Series A Preferred Shares106,262 106,262 — — 
Pelthos Common Shares46,500 46,500 — — 
Derivative assets(2)
15,632 — 10,643 4,989 
Total assets$726,988 $336,744 $385,255 $4,989 
Liabilities:
Contingent liabilities - CyDex$395 $— $— $395 
Contingent liabilities - Metabasis(3)
2,826 — 2,826 — 
Total liabilities$3,221 $— $2,826 $395 

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(1)
$183,858 $122,047 $61,811 $— 
Derivative assets(2)
10,583 — 806 9,777 
Total assets$194,441 $122,047 $62,617 $9,777 
Liabilities:
Contingent liabilities - CyDex$383 $— $— $383 
Contingent liabilities - Metabasis(3)
3,298 — 3,298 — 
Total liabilities$3,681 $— $3,298 $383 
(1) Excluding our investment in 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. 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 or all of those marketable securities to satisfy the liquidity needs of our current operations.
(2) The fair value of all derivative assets, except for Agenus Partnered Programs and Primrose mRNA derivative, was determined using a Black-Scholes model. Note that as of December 31, 2024, the derivative assets balance included Agenus Partnered Programs and Primrose mRNA derivative, which were reclassified to financial royalty assets as of January 1, 2025 due to the adoption of ASU 2025-07. Refer to Note 1, Basis of Presentation and Summary of Significant Accounting Policies, for information related to ASU 2025-07 adoption. As of December 31, 2024, 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 contemplated the underlying credit and business risk of the partnered programs. At December 31, 2024, the discount rates used ranged between 15% and 28%.
(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, 2025 is as follows (in thousands):
Assets
Fair value of level 3 financial instruments as of December 31, 2024
$9,777 
ASU 2025-07 adoption (Note 1)(9,777)
Additions to derivative assets5,787 
Fair value adjustments to derivative assets(798)
Fair value of level 3 financial instruments as of December 31, 2025
$4,989 
Liabilities
Fair value of level 3 financial instruments as of December 31, 2024
$383 
Payments to CVR holders and other contingent payments (50)
Fair value adjustments to contingent liabilities62 
Fair value of level 3 financial instruments as of December 31, 2025
$395 

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 assets27,950 
Fair value adjustments to derivative assets(12,878)
Exercise of derivative assets(8,826)
Fair value of level 3 financial instruments as of December 31, 2024
$9,777 
Liabilities
Fair value of level 3 financial instruments as of December 31, 2023
$320 
Payments to CVR holders and other contingency payments(200)
Fair value adjustments to contingent liabilities263 
Fair value of level 3 financial instruments as of December 31, 2024
$383 
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 and long-lived assets for impairment whenever circumstances occur indicating that intangible assets or long-lived 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 intangible assets and long-lived assets are largely independent of other groups of assets and liabilities.
There was no impairment of our goodwill, intangible assets with estimated useful lives, or long-lived assets recorded during the years ended December 31, 2025, 2024 and 2023.
Fair Value of Financial Instruments
Our cash and cash equivalents, accounts receivable, other current assets, accounts payable, accrued liabilities, deferred revenue, current operating lease liabilities, current finance lease liabilities and Novan (Pelthos) contract liability are financial instruments and are recorded at cost in the consolidated balance sheets. As of December 31, 2024, the estimated fair value of the Novan (Pelthos) contract liability was $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 consolidated balance sheets 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, 2025 were $294.9 million and $219.7 million, respectively. The estimated fair value and related carrying value of the financial royalty assets as of December 31, 2024 were $196.6 million and $195.0 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 13%-35% and 15%-30% as of December 31, 2025 and 2024, respectively. Weighted average discount rate (weighted by relative fair value) was 17% and 19% as of December 31, 2025 and 2024, respectively.
v3.25.4
Debt
 12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Debt Debt
0.75% Convertible Senior Notes due 2030
In August 2025, we issued $460 million aggregate principal amount of 0.75% convertible senior notes due 2030 (the “2030 Notes”). The aggregate principal includes the purchase of an additional $60 million aggregate principal amount of notes by the initial purchasers pursuant to the full exercise of the initial purchasers’ option to purchase additional notes. The net proceeds from the offering were approximately $445.1 million, after deducting the initial purchasers’ discount and commissions, and debt issuance cost.
The 2030 Notes are general senior, unsecured obligations of Ligand and accrue interest payable semiannually in arrears on April 1 and October 1 of each year, beginning on April 1, 2026. The 2030 Notes will mature on October 1, 2030, unless earlier converted, redeemed or repurchased. Upon conversion, we will pay cash up to the aggregate principal amount of the 2030 Notes to be converted and pay or deliver, as the case may be, cash, shares of common stock, or a combination of cash and shares of common stock, at our election, in respect of the remainder, if any, of our conversion obligation in excess of the aggregate principal amount of the 2030 Notes being converted, in the manner and subject to the terms and conditions provided in the Indenture entered into in connection with the 2030 Notes issuance (the “Indenture”).
Holders may convert their 2030 Notes at their option prior to July 1, 2030, under certain circumstances, and at any time on or after July 1, 2030, until the second scheduled trading day immediately preceding the maturity date. The initial conversion rate is 5.1338 shares of our common stock per $1,000 principal amount of the 2030 Notes (equivalent to an initial conversion price of approximately $194.79 per share), subject to adjustment upon the occurrence of certain events. The maximum conversion rate, subject to adjustment, is 6.8022 per $1,000 principal amount of the 2030 Notes which represents a conversion price of approximately $147.01.
The 2030 Notes are not redeemable by us prior to October 6, 2028. On or after that date, and prior to the 51st scheduled trading day immediately preceding the maturity date for the 2030 Notes, we may redeem for cash all or part of the 2030 Notes if the last reported sale price of our common stock has been at least 130% of the conversion price for at least 20 trading days during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which we provide notice of redemption.
Holders may require us to repurchase all or a portion of their notes for cash at 100% of the principal amount plus accrued and unpaid interest to, but excluding, the purchase date upon the occurrence of a “Fundamental Change” (as defined in the Indenture).
We account for the 2030 Notes in accordance with ASC 470-20, Debt with Conversion and Other Options. At issuance, we evaluated the terms of the 2030 Notes and determined that the embedded conversion feature does not require separate accounting as a derivative. The 2030 Notes are recorded as a single liability measured at amortized cost. Interest expense includes a portion recognized at the stated coupon rate, and amortization of any debt discount and issuance costs, as discussed below.
In connection with the issuance of the 2030 Notes in August 2025, we incurred $14.9 million of debt discount and issuance costs, which primarily consisted of underwriting, legal and other professional fees. These costs are netted with the total debt liability and are amortized to interest expense using the effective interest method over the five-year expected life of the 2030 Notes. Annual effective interest rate, including coupon portion was 1.4% as of December 31, 2025. During the year ended December 31, 2025, we recognized a total of $2.4 million in interest expense which included $1.3 million in coupon expense and $1.1 million in amortized issuance costs.
The Indenture contains customary covenants and events of default, including payment defaults, certain bankruptcy events, and failure to comply with other covenants, subject to applicable grace periods. As of December 31, 2025, there were no events of default or violation of any covenants under the Indenture.
The following table summarizes information about the 2030 Notes (in thousands).
December 31, 2025
Principal amount of the Notes outstanding$460,000 
Unamortized discount (including unamortized debt issuance cost)(13,808)
Total long-term portion of notes payable$446,192 
Fair value of convertible senior notes outstanding (Level 2)$539,419 
Convertible Note Hedge and Warrant Transactions Related to the 2030 Notes
In connection with the pricing of the 2030 Notes and the initial purchasers’ exercise of their overallotment option to purchase additional notes, in August 2025, we entered into convertible note hedge transactions with certain of the initial purchasers of the 2030 Notes or their affiliates and certain other financial institutions (the “option counterparties”), to reduce the potential dilution to holders of our common stock upon conversion of the 2030 Notes and/or offset any cash payments we may be required to make in excess of the principal amount upon conversion of the 2030 Notes. The convertible note hedges have an exercise price of $194.79 per share and are exercisable when and if the 2030 Notes are converted. If upon conversion of the 2030 Notes, the price of our common stock is above the exercise price of the convertible note hedges, the option 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 note hedges being exercised.
The convertible note hedge transaction is classified as an equity instrument and is not accounted for as a derivative under ASC 815, as it meets the criteria for equity classification. We paid $113.3 million for these convertible note hedges, which was recorded as a reduction to additional paid-in capital in accordance with ASC 815-40. The convertible note hedge is not remeasured at fair value subsequent to initial recognition.
We also entered into warrant transactions with the option counterparties in connection with the pricing of the 2030 Notes and the initial purchasers’ exercise of their option to purchase additional notes, pursuant to which we issued warrants to purchase 2,361,548 shares of common stock (the “warrants”) to such option counterparties. The warrant transactions could separately have a dilutive effect on our common stock to the extent that the market price per share of our common stock exceeds the strike price of the warrants. The strike price of the warrants will initially be $294.02 per share, subject to certain adjustments under the terms of the warrants. We received $67.4 million for these warrants. The warrants have various expiration dates ranging from January 2, 2031 to May 27, 2031. 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 has not been registered under the Securities Act, and we do not have an obligation and do not intend to file any registration statement with the SEC registering the issuance of the shares under the warrants.
The convertible note hedges and warrants described above are separate transactions entered into by us and are not part of the terms of the 2030 Notes. Holders of the 2030 Notes and warrants will not have any rights with respect to the convertible note hedges.
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.
Convertible Bond Hedge and Warrant Transactions Related to 2023 Notes
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. 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.
Amendments to Revolving Credit Facility
On July 8, 2024, we entered into the first 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.
In connection with the offering of the 2030 Notes, on August 11, 2025, we entered into the second amendment to the Credit Agreement, to permit, among other things, certain cash settlement payments on the 2030 Notes, subject to customary conditions set forth therein. On September 12, 2025, we entered into the third amendment to the Credit Agreement to, among other things, extend the maturity date to September 12, 2028 and modify the minimum consolidated EBITDA (as defined in the Credit Agreement) covenant to require us to maintain not less than $55 million of consolidated EBITDA (as defined in the Credit Agreement) for the trailing four-quarter period ended September 30, 2025 and each trailing four-quarter period ending thereafter.
As of December 31, 2025 and 2024, we had $124.4 million in available borrowing under the Revolving Credit Facility, after utilizing $0.6 million for letter of credit. The maturity date of the Revolving Credit Facility, as amended, is September 12, 2028. As of December 31, 2025 and 2024, there were no events of default or violation of any covenants under the Revolving Credit Facility.
v3.25.4
Leases
 12 Months Ended
Dec. 31, 2025
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 assigned consideration in the agreements between lease and non-lease components using relative standalone prices. Since the inception of the agreements, we have assigned $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.
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, 2025, 2024 and 2023, no impairment to this asset group was recorded as there were no indicators of impairment. As of December 31, 2025 and 2024, the remaining right of use asset balance is $2.0 million and $2.7 million, respectively.
Operating Lease
We lease certain administration office facilities, research and development facilities and equipment primarily under various operating leases. Our operating leases have remaining contractual terms up to seven years, some of which include options to extend the leases for up to five years. 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, including upfront lease payments made and lease incentives, calculated using our incremental borrowing rate generally applicable to the location of the lease asset, unless the implicit rate is readily determinable. 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 sheets, 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.
Operating and finance lease assets and liabilities (in thousands) are as follows:
December 31, 2025December 31, 2024
Lease assets
Operating lease assets$5,152 $6,907 
Finance lease assets2,071 2,766 
Total lease assets$7,223 $9,673 
Lease liabilities
Current operating lease liabilities$1,095 $1,266 
Current finance lease liabilities24 24 
1,119 1,290 
Long-term operating lease liabilities4,204 5,815 
Long-term finance lease liabilities26 49 
Total lease liabilities $5,349 $7,154 
Maturity of operating and finance lease liabilities as of December 31, 2025 are as follows (in thousands):
Maturity DatesOperating LeasesFinance Leases
2026$1,142 $27 
20271,214 18 
20281,124 9 
2029886 2 
2030836 — 
Thereafter1,249 — 
Total lease payments6,451 56 
Less tenant improvement allowance— — 
Less imputed interest(1,150)(6)
Present value of lease liabilities$5,301 $50 
As of December 31, 2025, our operating leases had a weighted-average remaining lease term of 5.5 years and a weighted-average discount rate of 6.8%. 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%. Cash paid for amounts included in the measurement of operating lease liabilities was $1.1 million, $1.3 million and $1.4 million, respectively, for the years ended December 31, 2025, 2024 and 2023. Operating lease expense was $0.9 million (net of sublease income of $0.2 million), $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, 2025, 2024 and 2023, respectively.
As of December 31, 2025, our finance leases had a weighted-average remaining lease term of 2.4 years and a weighted-average discount rate of 6.6%. 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%. 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, $0.02 million and $0.05 million, respectively, for the years ended December 31, 2025, 2024 and 2023. Finance lease expense was $0.7 million, $0.5 million and $0.7 million, respectively, for the years ended December 31, 2025, 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 assigned consideration in the agreements between lease and non-lease components using relative standalone prices. Since the inception of the agreements, we have assigned $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.
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, 2025, 2024 and 2023, no impairment to this asset group was recorded as there were no indicators of impairment. As of December 31, 2025 and 2024, the remaining right of use asset balance is $2.0 million and $2.7 million, respectively.
Operating Lease
We lease certain administration office facilities, research and development facilities and equipment primarily under various operating leases. Our operating leases have remaining contractual terms up to seven years, some of which include options to extend the leases for up to five years. 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, including upfront lease payments made and lease incentives, calculated using our incremental borrowing rate generally applicable to the location of the lease asset, unless the implicit rate is readily determinable. 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 sheets, 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.
Operating and finance lease assets and liabilities (in thousands) are as follows:
December 31, 2025December 31, 2024
Lease assets
Operating lease assets$5,152 $6,907 
Finance lease assets2,071 2,766 
Total lease assets$7,223 $9,673 
Lease liabilities
Current operating lease liabilities$1,095 $1,266 
Current finance lease liabilities24 24 
1,119 1,290 
Long-term operating lease liabilities4,204 5,815 
Long-term finance lease liabilities26 49 
Total lease liabilities $5,349 $7,154 
Maturity of operating and finance lease liabilities as of December 31, 2025 are as follows (in thousands):
Maturity DatesOperating LeasesFinance Leases
2026$1,142 $27 
20271,214 18 
20281,124 9 
2029886 2 
2030836 — 
Thereafter1,249 — 
Total lease payments6,451 56 
Less tenant improvement allowance— — 
Less imputed interest(1,150)(6)
Present value of lease liabilities$5,301 $50 
As of December 31, 2025, our operating leases had a weighted-average remaining lease term of 5.5 years and a weighted-average discount rate of 6.8%. 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%. Cash paid for amounts included in the measurement of operating lease liabilities was $1.1 million, $1.3 million and $1.4 million, respectively, for the years ended December 31, 2025, 2024 and 2023. Operating lease expense was $0.9 million (net of sublease income of $0.2 million), $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, 2025, 2024 and 2023, respectively.
As of December 31, 2025, our finance leases had a weighted-average remaining lease term of 2.4 years and a weighted-average discount rate of 6.6%. 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%. 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, $0.02 million and $0.05 million, respectively, for the years ended December 31, 2025, 2024 and 2023. Finance lease expense was $0.7 million, $0.5 million and $0.7 million, respectively, for the years ended December 31, 2025, 2024 and 2023.
v3.25.4
Stockholders' Equity
 12 Months Ended
Dec. 31, 2025
Equity [Abstract]  
Stockholders' Equity Stockholders’ Equity
Share-based Compensation Expense
The following table summarizes share-based compensation expense recorded as components of research and development expenses and general and administrative expenses for the periods indicated (in thousands):
Year Ended December 31,
202520242023
Share-based compensation expense as a component of:
Research and development expenses$4,287 $3,544 $6,248 
General and administrative expenses42,562 37,545 19,495 
$46,849 $41,089 $25,743 
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, 2025, there were 0.9 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, 20232,991,473 $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 
Granted468,876 $114.59 
Exercised(635,820)$74.04 
Forfeited(58,318)$83.99 
Balance at December 31, 20252,001,011 $84.48 7.39$209,288 
Exercisable at December 31, 20251,070,597 $75.32 6.47$121,777 
Options vested and expected to vest as of December 31, 20252,001,011 $84.48 7.39$209,288 
The weighted-average grant-date fair value of all stock options granted during 2025, 2024 and 2023 was $47.17, $37.81, and $36.65 per share, respectively. The total intrinsic value of all options exercised during 2025, 2024 and 2023 was approximately $44.6 million, $38.6 million, and $12.0 million, respectively.
Cash received from options exercised, net of fees paid, in 2025, 2024 and 2023 was $47.1 million, $65.2 million and $22.2 million, respectively.
Following is a further breakdown of the options outstanding as of December 31, 2025:
Range of exercise prices
Options
outstanding
Weighted
average
remaining life
in years
Weighted 
average
exercise price
Options
exercisable
Weighted 
average
exercise price
$39.79-$55.75
213,920 5.78$51.04 194,031 $50.88 
$55.98-$67.03
204,845 6.23$64.38 149,821 $64.37 
$67.24-$69.70
215,407 5.55$69.22 182,407 $69.14 
$70.04-$75.09
301,023 7.47$74.23 171,605 $74.34 
$78.56-$88.27
128,209 8.24$82.20 73,576 $81.26 
$89.20-$89.20
352,850 8.16$89.20 131,697 $89.20 
$89.86-$114.76
175,215 6.45$103.79 99,224 $102.26 
$115.26-$115.26
387,782 9.17$115.26 65,670 $115.26 
$122.70-$122.70
10,260 8.92$122.70 2,566 $122.70 
$132.72-$132.72
11,500 9.58$132.72 — $— 
2,001,011 7.39$84.48 1,070,597 $75.32 
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,
 
2025
2024
2023
Risk-free interest rate
3.7%-4.3%
3.5%-4.5%
3.7%-4.6%
Expected volatility
40%-46%
44%-46%
45%-54%
Expected term
4.0 to 4.9 years
4.1 to 4.8 years
4.7 to 5.3 years
As of December 31, 2025, there was $36.1 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 2.2 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, 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 
Granted231,761 $106.95 
Vested(208,153)$75.97 
Forfeited(5,933)$87.97 
Outstanding at December 31, 2025455,547 $98.86 
As of December 31, 2025, unrecognized compensation cost related to non-vested stock awards under the 2002 Plan amounted to $22.4 million. That cost is expected to be recognized over a weighted average period of 1.3 years.
Employee Stock Purchase Plan
As of December 31, 2025, 19,657 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 4,836, 6,308 and 5,080 shares issued under the ESPP in 2025, 2024 and 2023, 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, 2025, 2024 and 2023, we did not repurchase any shares of common stock under the stock repurchase program, respectively.
In connection with the issuance of the 2030 Notes in August 2025, Ligand used approximately $15 million of the net proceeds from the offering to repurchase 102,034 shares of Ligand’s common stock at a price of $147.01 per share. Refer to Note 9, Debt for information on the 2030 Notes offering.
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 were able to sell, 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. As of the date hereof, the Shelf Registration Statement is no longer effective and the ATM Offering has expired. 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 years ended December 31, 2025 and 2023, we did not issue any shares of common stock in the ATM Offering.
v3.25.4
Commitment and Contingencies: Legal Proceedings
 12 Months Ended
Dec. 31, 2025
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 revise 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 In Vivo Agreement. CyDex seeks relief including specific performance of certain co-ownership provisions of the In Vivo 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. On May 23, 2025, Bexson withdrew its pending Motion to Dismiss and filed a Verified Counterclaim, Answer, and Affirmative Defenses. On July 17, 2025, CyDex and Bexson agreed to a joint stipulation for a schedule on judgment on the pleadings, providing for briefing to be complete by November 17, 2025. CyDex filed its reply to Bexson’s counterclaim on July 23, 2025. On August 22, 2025, Bexson filed its opening brief in support of its motion for judgment on the pleadings. On September 25, 2025, CyDex filed its partial cross-motion for judgment on the pleadings and opposition to Bexson’s motion, and on October 27, 2025 Bexson filed its combined answering brief in opposition to CyDex’s motion and reply in support of its motion. CyDex filed a reply brief on November 17, 2025. Oral argument on the pending motions for judgment on the pleadings is scheduled to occur on April 22, 2026.
On July 18, 2025, CyDex received a letter (the “Notice Letter”) from PH Health Limited (“PH Health”), a wholly-owned indirect subsidiary of Endo, Inc., stating that PH Health had submitted to the FDA an Abbreviated New Drug Application (“ANDA”) referencing New Drug Application No. 022235, owned by Baxter Healthcare Corp. (“Baxter”) for Captisol®-enabled Nexterone® (amiodarone hydrochloride, 150 mg/100 mL, premixed for injection). In its Notice Letter, PH Health stated that its ANDA includes a certification under 21 U.S.C. § 355(j)(2)(A)(vii)(IV) that, in PH Health’s opinion, CyDex’s U.S. Patent No. 7,635,773 (“the ’773 patent”) is invalid, unenforceable and/or will not be infringed by Par Heath’s ANDA product. The Notice Letter included an explanation intended to support PH Health’s position that its ANDA product would not infringe the ’773 patent but did not include detailed explanations regarding invalidity or unenforceability. On August 29, 2025, during the 45 day period for filing a lawsuit pursuant to the Hatch-Waxman Act, Baxter and CyDex filed a lawsuit in the United States District Court for the Distinct of New Jersey against Par Health Ltd., Par Health USA, Endo USA, Inc., Endo Operations Limited, and Endo, Inc., asserting that the ANDA filing infringed the ’773 patent. See Case No. 3:25-cv-15120-MCA. An Answer was filed on October 27, 2025. Discovery has started but a trial date has not yet been set.
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 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.
v3.25.4
Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
For the years ended December 31, 2025, 2024, and 2023, the Company had the following income before income tax from continuing operations (in thousands):
Year Ended December 31,
202520242023
Domestic$126,428 $(25,855)$62,140 
Foreign32,532 28,373 1,520 
Income before income tax from continuing operations$158,960 $2,518 $63,660 
The components of the income tax expense (benefit) for continuing operations are as follows (in thousands):
 Year Ended December 31,
 202520242023
Current expense (benefit):
Federal$8,725 $18,277 $(1,186)
State280 718 218 
Foreign3,612 3,355 780 
Total current expense (benefit)12,617 22,350 (188)
Deferred expense (benefit):
Federal27,538 (17,767)9,374 
State574 77 655 
Foreign(6,222)1,890 — 
Total deferred expense (benefit)21,890 (15,800)10,029 
Total income tax expense (benefit)$34,507 $6,550 $9,841 
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, 2025
AmountPercent
Income taxes expense at statutory federal rate$33,457 21.00 %
State and local taxes, net of federal income tax effect(1)
646 0.41 %
Foreign tax effects
United Kingdom
Other390 0.24 %
Changes in valuation allowance(9,389)(5.89)%
Austria
Other(518)(0.33)%
India
Withholding Tax1,115 0.70 %
Effect of cross-border tax laws
Subpart F, net6,063 3.81 %
Foreign derived intangible income(314)(0.20)%
Tax credits
Foreign tax credits(1,115)(0.70)%
Solar tax credit(650)(0.41)%
R&D credit(134)(0.08)%
Changes in valuation allowance3,683 2.31 %
Nontaxable or nondeductible items
Section 162(m) officer’s compensation5,468 3.43 %
Equity compensation(4,373)(2.74)%
Permanent Items - Other(137)(0.09)%
Changes in unrecognized tax benefits(4)— %
Other319 0.20 %
Provision for income taxes$34,507 21.66 %
(1) The states that contribute to the majority (greater than 50%) of the tax effect in this category include Pennsylvania and Kansas for 2025.
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,
20242023
Tax at statutory federal rate$529 $13,448 
Subpart F income5,649 479 
Officer compensation3,921 844 
Foreign tax differential on income/loss of foreign subsidiaries1,115 (38)
Share-based compensation602 1,241 
Provision to return adjustments293 2,200 
Rate change for changes in federal, foreign or state law111 342 
Contingent liabilities88 (116)
Change in uncertain tax positions94 (7,206)
State, net of federal benefit(85)397 
Research and development credits(324)(405)
FDII(832)(1,037)
Change in valuation allowance(1,638)(1,184)
Foreign tax credits(3,232)— 
Other259 876 
Total$6,550 $9,841 
The amount of cash taxes paid are as follows (in thousands):
 Year Ended December 31,
 2025
Federal$3,660 
State204 
Foreign3,938 
Income taxes, net of amounts refunded$7,802 
In 2025, the only jurisdiction with cash taxes paid that equaled or exceeded 5% of total income taxes paid were Federal, UK, and Austria.
We have determined that our foreign earnings are not indefinitely reinvested and have properly accrued for the tax impacts.
Significant components of our deferred tax assets and liabilities as of December 31, 2025 and 2024 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, 2025, 2024 and 2023. The valuation allowance decreased by $7.3 million in 2025 due to a partial release of valuation allowance in the United Kingdom offset by a one time recording of a federal and state valuation allowance recognized in connection with the disposition of LNHC Inc. The valuation allowance decreased by $1.6 million in 2024 and decreased by $1.2 million in 2023.
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,
 20252024
Deferred tax assets:
Net operating loss carryforwards$32,514 $40,385 
2030 Notes original issue discount22,814 — 
Research credit carryforwards19,223 24,404 
Stock compensation11,570 10,726 
Financial royalty assets12,879 — 
Capitalized R&D— 7,090 
Other7,775 13,733 
106,775 96,338 
Valuation allowance for deferred tax assets(48,331)(55,649)
Net deferred tax assets58,444 40,689 
Deferred tax liabilities:
Identified intangibles(45,781)(69,150)
Mark-to-market(38,226)— 
     Other(2,111)(3,991)
Net deferred tax liabilities(86,118)(73,141)
Deferred income taxes, net$(27,674)$(32,452)
As of December 31, 2025, we had federal net operating loss carryforwards set to expire through 2037 of $4.3 million and $162.1 million of state net operating loss carryforwards that begin to expire in 2028. We have $24.3 million of California research and development credit carryforwards that have no expiration date. In addition, we had approximately $81.1 million of non-U.S. net operating loss carryovers and approximately $14.5 million of non-U.S. capital loss carryovers that have no expiration date.
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 had $6.2 million of federal research and development credit carryforwards, which expire through 2040. We had $29.5 million of California research and development credit carryforwards that have no expiration date. In addition, we had 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.
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, 2025 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, 2025, 2024 and 2023 is as follows (in thousands):
December 31,
202520242023
Balance at beginning of year$22,471 $22,363 $29,096 
Additions based on tax positions related to the current year5,342 27 47 
Additions for tax positions of prior years192 477 3 
Reductions for tax positions of prior years(361)(396)(6,783)
Balance at end of year$27,644 $22,471 $22,363 
Included in the balance of unrecognized tax benefits at December 31, 2025 is $20.6 million of tax benefits that, if recognized would impact the effective rate.
We recognize interest and penalties related to uncertain tax positions in income tax expense. As of December 31, 2025 and December 31, 2024, 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 2022 tax year to the present. The state income tax returns generally remain open for the 2021 tax year through the present. The United Kingdom statute of limitation remains open for the 2021 tax year to the present. The Austrian statute of limitation remains open for the 2021 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.
v3.25.4
Insider Trading Arrangements
 3 Months Ended
Dec. 31, 2025
shares
Trading Arrangements, by Individual  
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
Andrew Reardon [Member]  
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement
On November 24, 2025, Andrew Reardon, our Chief Legal Officer, adopted a 10b5-1 trading arrangement that is designed to be in effect until September 2, 2026 with respect to the sale of up to 30,000 shares of the Company’s common stock all of which underlie stock options held by Mr. Reardon. Through the date of this report, Mr. Reardon has not sold any shares under the plan.
Name Andrew Reardon
Title Chief Legal Officer
Rule 10b5-1 Arrangement Adopted true
Adoption Date November 24, 2025
Expiration Date September 2, 2026
Arrangement Duration 282 days
Aggregate Available 30,000
Octavio Espinoza [Member]  
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement
On November 19, 2025, Octavio Espinoza, our Chief Financial Officer, adopted a 10b5-1 trading arrangement that is designed to be in effect until July 31, 2026 with respect to the sale of up to 5,130 shares of the Company’s common stock all of which underlie stock options that number of shares of the Company’s common stock issued upon settlement of certain stock awards held by Mr. Espinoza minus any shares sold or withheld to cover the applicable tax payments. Through the date of this report, Mr. Espinoza has not sold any shares under the plan.
Each of the aforementioned trading arrangements is intended to satisfy the affirmative defense of Rule 10b5-1(c).
Name Octavio Espinoza
Title Chief Financial Officer
Rule 10b5-1 Arrangement Adopted true
Adoption Date November 19, 2025
Expiration Date July 31, 2026
Arrangement Duration 254 days
Aggregate Available 5,130
v3.25.4
Insider Trading Policies and Procedures
 12 Months Ended
Dec. 31, 2025
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.4
Cybersecurity Risk Management and Strategy Disclosure
 12 Months Ended
Dec. 31, 2025
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
v3.25.4
Basis of Presentation and Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2025
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, 2024, a portion of other current assets has been reclassified to short-term portion of financial royalty assets, and prepaid expenses have been combined within other current assets. Also, property and equipment and lease right-of-use assets have been combined within other assets.
In addition, within the consolidated statement of operations for the year ended December 31, 2024, a portion of other non-operating expense, net, has been reclassified to gain (loss) from change in fair value of equity method investments and other investments.
Within the consolidated statement of cash flows for the year ended December 31, 2024, a portion of losses from equity method investment in Primrose Bio, a portion of other, and fair value adjustment to Primrose Bio securities investments have been reclassified to (gain) loss from change in fair value of equity-method investments and other investments.
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, commercial paper 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 in 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 twenty-five 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 investments in companies that have completed initial public offerings (marketable equity securities). Our marketable equity securities are measured at fair value.
Accounts Receivable and Allowance for Credit Losses
Accounts Receivable and Allowance for Credit Losses
Our accounts receivable primarily relate to (1) 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, (2) any contractual license fees, technical, regulatory and sales-based milestones related to such products, and (3) Captisol material sales.
Our partners generally report sales information to us on a one quarter lag. Thus, we estimate the expected royalty and 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.
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.
Goodwill and Intangible Assets
Goodwill and Intangible 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 2025, 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 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
Financial Royalty Assets, net
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 as 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 effective interest rate is lower for the current period than the prior period, and if the gross cash flows have declined (expected and collected), we record provision expense for the change in expected cash flows. The provision 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 prior period’s 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 short-term portion of financial royalty assets represents an estimation for current quarter royalty receipts which are normally collected during the subsequent quarter, and, as applicable, also includes previous periods royalty receipts that haven't yet been collected.
Derivative Assets
Derivative Assets
As of December 31, 2025, all our derivative assets are warrants and options which are not used for risk management purposes. For additional information, see Note 3, Investment Transactions.
As a result of our early adoption of ASU 2025-07, Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606) (“ASU 2025-07”), certain assets previously accounted for as derivatives have been qualified for a new derivative scope exception introduced by ASU 2025-07, and are now accounted for as financial royalty assets with January 1, 2025 being the effective date of ASU 2025-07 adoption. Such assets include (1) our rights in future milestone and royalty payments from Agenus Partnered Programs (as defined in Note 3, Investment Transactions), (2) rights to receive from Primrose Bio 50% of milestone payments on two contracts previously entered into by Primordial Genetics (“Primrose mRNA”), and (3) Castle Creek Milestone (as defined in Note 3, Investment Transactions).
Equity Method Investment
Equity Method Investments
The Company accounts for investments in entities over which it has significant influence (generally defined as ownership interest of 20% or more) using the equity method of accounting. Under this method, the investment is initially recorded at cost and subsequently adjusted for the Company’s share of the investee’s earnings or losses and any dividends received, unless the fair value option under ASC 825-10 is elected. Such selection is made on an instrument-by-instrument basis and is irrevocable.
Equity method investments the Company elected a fair value option for are measured at fair value with changes in fair value recognized in earnings each reporting period and presented in gain (loss) from change in fair value of equity method investments and other investments in our consolidated statements of operations. The Company elected the fair value option for the equity method investment in Pelthos. The election was made to simplify the accounting and reporting process, as Pelthos is a publicly traded entity with readily available market price.
Equity method investments the Company did not elect a fair value option for are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Any impairment of equity method investments is presented in gain (loss) from change in fair value of equity method investments and other investments in our consolidated statements of operations. Our equity method investments are reviewed for indicators of impairment at each reporting period and are written down to fair value if there is evidence of a loss in value that is other-than-temporary. The Company did not elect a fair value option for the equity method 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 that do not have a readily determinable or estimable fair value are measured using the measurement alternative in accordance with ASC 321, 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 gain (loss) from change in fair value of equity method investments and other investments in our consolidated statements of operations. The change in fair value for other investments (including those due to impairment) recognized during the period is presented in gain (loss) from change in fair value of equity method investments and other investments in our consolidated statements of operations.
Revenue and Income
Revenue and Income
Our revenue and income is generated primarily from royalties on sales of products commercialized by our partners, Captisol material sales, income from financial royalty assets, contract revenue for license fees, technical, regulatory and sales-based milestone payments, and other income resulting from other royalty transactions.
For all revenue transactions, 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
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. 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
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.
Income
Operating income includes milestone and royalty income received from other royalty transactions and transactions involving our intellectual property including, R&D funding arrangements, dispositions and the related contingent consideration.
Income for the year ended December 31, 2025 is primarily related to the $53.1 million income from the disposition of Ligand’s wholly owned subsidiary, LNHC, Inc. in connection with the Pelthos Transaction (as defined below). For additional information on the Pelthos Transaction, see Note 2, Pelthos Transaction.
Research and Development Funding Expense
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 sheets and we expense them as the services are provided.
Research and Development Funding Expense
We enter into transactions where we agree to fund a portion of the research and development (“R&D”) performed by our partners for products undergoing late-stage clinical trials in exchange for future royalties or milestones if the products are successfully developed and commercialized. In accordance with ASC 730, Research and Development, we account for the funded amounts as R&D expense when we have the ability to obtain the results of the R&D, the transfer of financial risk is genuine and substantive and, at the time of entering into the transaction, it is not yet probable that the product will receive regulatory approval. If these conditions are not met, we may record the funded amounts as a financial royalty asset. We may fund R&D upfront or over time as the underlying products undergo clinical trials.
Royalties earned on successfully commercialized products generated from R&D arrangements are recognized as revenue from intangible royalty assets in the same period in which the sale of the commercialized product occurs. Fixed or milestone payments receivable based on the achievement of contractual criteria for products arising out of our R&D arrangements are recognized as contract revenue and income in the period that the milestone threshold is met.
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 number 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.
Net Income (Loss) Per Share
Net Income (Loss) Per Share
Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net 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 net 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 2030 Notes, warrants in connection with the 2030 Notes, the 2023 Notes, stock options and restricted stock. The 2030 Notes are considered to be Instrument C where, upon conversion, the Company must satisfy the accreted value of the debt instrument in cash and may choose to satisfy the conversion spread in cash, shares, or a combination of cash and shares. The dilutive effect of Instrument C is limited to the conversion premium, which is reflected in the calculation of diluted earnings per share as if it were a freestanding written call option on the issuer’s shares. 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.
We paid off the 2023 Notes in May 2023, but they had a dilutive impact during the year ended December 31, 2023 because the average market price of our common stock exceeded the maximum conversion price. It was 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 are 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 September 2025, the FASB issued ASU 2025-07, Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606). The update provides a derivative scope refinement and scope clarification for share-based noncash consideration from a customer in a revenue contract. Adoption of the amendment allows for either the prospective or modified retrospective application and is effective for annual periods beginning after December 15, 2026, with early adoption permitted.
We early adopted this standard using the modified retrospective method for the derivative scope refinement with the effective date of January 1, 2025, and the adoption has some impact on our financial condition and results of operations. The key change of this update applicable for Ligand is related to additional derivative scope exception for contracts with
underlyings based on obtaining regulatory approval or achieving a product development milestone. The assessment of our derivatives existing before the adoption date concluded that the Agenus Partnered Programs and the Primrose mRNA derivative assets met the scope exception of this amendment. Such assets were derecognized from derivative assets and recognized within the financial royalty assets, net, starting from January 1, 2025. A carrying value of such financial royalty assets was determined as unamortized cost basis less impairment recognized for certain Agenus Partnered Programs as of January 1, 2025. The Castle Creek milestone derivative acquired in February 2025 also met the scope exception of ASU 2025-07 and is now included in the balance of financial royalty assets, net, in the amount of its purchase price on the acquisition date. Refer to Note 3, Investment Transactions and Note 6, Financial Royalty Assets, net, for more information on these derivatives.
Financial royalty assets are assessed periodically for current expected credit losses (“CECL”). The CECL assessment on the derivatives reclassified to financial royalty assets acquired before the adoption date were recorded to retained earnings. The CECL adjustments made to financial royalty assets after the adoption date were recorded to general and administration in the consolidated statement of operations for the year ended December 31, 2025.
The scope clarification for share-based noncash consideration from a customer in a revenue contract is not applicable to us as we have not received any noncash consideration from our customers related to revenue contracts. Thus, we adopted this update effective on September 30, 2025 on a prospective method.
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 adopted this ASU prospectively in our Annual Report on the Form 10-K for the year ended December 31, 2025 and it impacted only our disclosures, with no impacts to our financial condition or results of operations. For additional information, see Note 13, Income Taxes.
Accounting Standards Not Yet Adopted
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.
v3.25.4
Basis of Presentation and Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedules of 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,
202520242023
Total revenue and income$268,087 $167,133 $131,314 
Share-based compensation(46,849)(41,089)(25,743)
Other segment items:
Amortization of intangibles(32,708)(32,959)(33,654)
Depreciation of property and equipment(991)(2,300)(2,905)
Interest income13,659 8,055 7,711 
Interest expense(4,715)(3,037)(656)
Other *(72,030)(99,835)(22,248)
Net income (loss) from continuing operations$124,453 $(4,032)$53,819 
* Other items for the years ended December 31, 2025, 2024, and 2023, include the amount of other general, administrative, research and development expenses of $125.8 million, $56.7 million, and $48.7 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.
Schedule of Revenue from Significant Partners
Revenue and income from significant partners, which is defined as 10% or more of our total revenue and income, were as follows:
Year ended December 31,
202520242023
Partner A22%23%33%
Partner B17%12%20%
Partner C
12%
<10%
10%
Schedule of Disaggregation of Revenue
The following table represents disaggregation of royalties for the years ended December 31, 2025, 2024 and 2023 (in thousands):
Year ended December 31,
202520242023
Royalties
Kyprolis$35,534 $38,377 $35,640 
Filspari31,971 12,179 2,655 
Rylaze 13,350 13,743 13,520 
Capvaxive10,059 626 — 
Ohtuvayre9,760 833 — 
Teriparatide injection 8,148 8,221 11,061 
Vaxneuvance7,403 5,184 4,062 
Evomela5,943 8,680 10,212 
Other10,366 7,486 6,760 
Revenue from intangible royalty assets132,534 95,329 83,910 
Qarziba23,739 11,120 — 
Other4,728 2,324 1,049 
Income from financial royalty assets28,467 13,444 1,049 
Total royalties$161,001 $108,773 $84,959 
The following table represents disaggregation of Captisol and contract revenue and income for the years ended December 31, 2025, 2024 and 2023 (in thousands):
Year ended December 31,
202520242023
Captisol$40,213 $30,883 $28,372 
Contract revenue and income
Income from Pelthos Transaction$53,072 $— $— 
Contract revenue6,813 25,533 17,983 
Income6,988 1,944 — 
Total contract revenue and income$66,873 $27,477 $17,983 
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 net income (loss) per share (in thousands):
Year Ended December 31,
 202520242023
Weighted average shares outstanding:19,338 18,290 17,298 
Dilutive potential common shares:
Restricted stock311 — 85 
Stock options645 — 255 
2023 Convertible Senior Notes— — 119 
Shares used to compute diluted income per share20,294 18,290 17,757 
Potentially dilutive shares excluded from calculation due to anti-dilutive effect3,194 1,530 4,357 
v3.25.4
Pelthos Transaction (Tables)
 12 Months Ended
Dec. 31, 2025
Discontinued Operations and Disposal Groups [Abstract]  
Schedule of Equity Method Investments
Pelthos Series A
convertible preferred shares
Pelthos common
shares
Total
Fair value on July 1, 2025
$43,192 $18,900 $62,092 
Change in fair value
63,070 27,600 90,670 
Fair value on December 31, 2025
$106,262 $46,500 $152,762 
Schedule of Carrying Amounts of Major Classes of Assets and Liabilities Related to Assets Held for Sale
Net assets sold, and cash consideration paid were as follows (in thousands):
July 1, 2025
Cash and cash equivalents
$2,817 
Accounts receivable, net
48 
Other current assets
7,910 
Property and equipment, net
11,091 
Intangible assets, net
8,501 
Goodwill
3,709 
Operating lease right-of-use assets
3,625 
Other assets
4,812 
Accounts payable
(993)
Accrued liabilities
(3,894)
Deferred revenue
(2,835)
Operating lease liabilities
(3,566)
Short-term bridge loans(6,963)
Deferred income taxes, net
(3,069)
Other long-term liabilities
(17,441)
Net assets sold
3,752 
Cash consideration paid5,268 
Net assets sold and cash consideration paid
$9,020 
Schedule of Fair value of the consideration received
Fair value of the consideration received included the following (in thousands):
Equity method investment (common shares)$18,900 
Other investment (Series A convertible preferred shares)43,192 
Total consideration received
62,092 
Net assets sold and cash consideration paid
9,020 
Gain from Pelthos Transaction
$53,072 
v3.25.4
Acquisitions (Tables)
 12 Months Ended
Dec. 31, 2025
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
Schedule of Allocation of Consideration / Recognized Identified Assets Acquired and Liabilities Assumed
The amount of purchase consideration was assigned 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 
v3.25.4
Financial Royalty Assets, net (Tables)
 12 Months Ended
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Financial Royalty Assets
As of December 31, 2025 and 2024, financial royalty assets consist of the following (in thousands):
December 31, 2025December 31, 2024
Gross carrying value(2)
Allowance (1)
Net carrying value (2)
Gross carrying value
Allowance (1)
Net carrying value
Qarziba
$118,593 $(498)$118,095 $105,329 $(484)$104,845 
Agenus Bot/Bal40,815 (408)40,407 40,815 (408)40,407 
Tolerance Therapeutics (Tzield)25,257 (98)25,159 25,613 (101)25,512 
Ohtuvayre inventors16,921 (151)16,770 15,969 (157)15,812 
Elutia (CorMatrix)6,607 (1,107)5,500 9,418 (2,268)7,150 
AT220 (Tyenne)5,132 (132)5,000 — — — 
Primrose mRNA3,281 (98)3,183 — — — 
Others5,769 (214)5,555 1,443 (120)1,323 
Total financial royalty assets, net$222,375 $(2,706)$219,669 $198,587 $(3,538)$195,049 
(1) The amounts of allowance include accumulated allowance for changes in expected cash flows and current expected credit losses.
(2) The amounts include current portion of financial royalty assets which represents an estimation for current quarter royalty receipts that are to be collected during the subsequent quarter. The current portion of financial royalty assets amounted to $22.8 million and $10.0 million were presented in a separate line on our consolidated balance sheets as of December 31, 2025 and December 31, 2024, respectively.
v3.25.4
Balance Sheet Account Details (Tables)
 12 Months Ended
Dec. 31, 2025
Other Balance Sheet Details [Abstract]  
Schedule of Investment Categories
The following table summarizes the various categories of our short-term investments at December 31, 2025 and 2024 (in thousands):
Cost
Gross unrealized
gains
Gross unrealized
losses
Estimated
fair value
December 31, 2025
U.S. Government Agencies$175,780 $89 $(38)$175,831 
Corporate notes/bonds124,249 98 (52)124,295 
U.S. Treasuries113,055 137 (4)113,188 
Commercial paper74,473 21 (8)74,486 
Corporate equity securities15,733 58,852 (3,791)70,794 
Total short-term investments$503,290 $59,197 $(3,893)$558,594 
December 31, 2024
U.S. Treasuries$78,442 $19 $(13)$78,448 
Corporate equity securities11,386 38,808 (6,595)43,599 
Commercial paper 23,483 5 (6)23,482 
Certificates of Deposit22,812 12 (4)22,820 
Corporate notes/bonds15,496 21 (8)15,509 
Total short-term investments$151,619 $38,865 $(6,626)$183,858 
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, 2025
Amortized CostFair Value
Within one year$295,974 $296,093 
After one year through five years191,583 191,707 
     Total$487,557 $487,800 
Schedule of Available-for-Sale Debt Securities in an Unrealized Loss Position
The following table summarizes our available-for-sale debt securities in an unrealized loss position (in thousands):
Less than 12 months12 months or greaterTotal
Gross
Unrealized
Losses		Estimated
Fair Value		Gross
Unrealized
Losses		Estimated
Fair Value		Gross
Unrealized
Losses		Estimated
Fair Value
December 31, 2025
Corporate notes/bonds$(14)$16,395 $(38)$49,311 $(52)$65,706 
Commercial paper(8)24,071 — — (8)24,071 
U.S. Government Agencies(5)26,554 (33)40,744 (38)67,298 
U.S. Treasuries(4)9,466 — — (4)9,466 
     Total$(31)$76,486 $(71)$90,055 $(102)$166,541 
December 31, 2024
Certificates of Deposit$(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 
Schedule of Goodwill and Other Identifiable Intangible Assets
Goodwill and identifiable intangible assets consist of the following (in thousands):
December 31,
20252024
Indefinite-lived intangible assets
Goodwill$101,541 $105,250 
Definite-lived intangible assets
Completed technology29,619 39,249 
Less: Accumulated amortization(20,809)(19,710)
Trade name2,642 2,642 
Less: Accumulated amortization(1,976)(1,843)
Customer relationships29,600 29,600 
Less: Accumulated amortization(22,144)(20,652)
Contractual relationships360,000 360,000 
Less: Accumulated amortization(151,494)(122,638)
Total definite lived intangible assets225,438 266,648 
Total goodwill and other identifiable intangible assets, net$326,979 $371,898 
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense The estimated amortization expense for the years ending December 31, 2026 through 2030 is as follows (in thousands):
Year ended December 31, Amount
2026$32,387 
2027$32,266 
2028$31,660 
2029$31,660 
2030$30,435 
Schedule of Derivative Assets at Fair Value
Derivative assets consist of the following (in thousands):
December 31,
20252024
Castle Creek Warrant$4,989 $— 
Orchestra Warrant3,799 — 
Pelthos Conversion Option3,432 — 
Agenus Warrant1,322 806 
LeonaBio Warrants (Series A and Series B)1,461 — 
Arecor Warrant629 — 
Agenus Partner Programs$— 6,326 
Primrose mRNA— 3,451 
Total noncurrent derivative assets$15,632 $10,583 
Schedule of Other Investments
Other investments consist of the following (in thousands):
December 31,
20252024
Pelthos Series A Preferred Shares$106,262 $— 
Equity securities in Primrose Bio6,531 6,712 
InvIOs investment4,500 4,196 
Pelthos loan receivable 4,158 — 
Total other investments$121,451 $10,908 
Schedule of Other Assets
Other assets consist of the following (in thousands):
December 31,
20252024
Property and Equipment, Net
$3,571 $15,133 
Right-of-use assets7,223 9,673 
Other1,788 6,924 
$12,582 $31,730 
Schedule of Property and Equipment
Property and equipment are stated at cost and consist of the following (in thousands):
December 31,
20252024
Lab and office equipment$4,472 $6,868 
Leasehold improvements2,518 10,464 
Computer equipment and software608 1,850 
Solar equipment2,551 — 
Construction in progress— 4,219 
10,149 23,401 
Less: accumulated depreciation and amortization(6,578)(8,268)
$3,571 $15,133 
Schedule of Accrued Liabilities
Accrued liabilities consist of the following (in thousands):
 December 31,
 20252024
Royalties owed to third parties$16,202 $6,500 
Compensation6,388 5,522 
Professional fees1,997 4,858 
Subcontractor1,756 1,756 
Value-added tax1,753 5,159 
Accrued interest1,307 — 
Customer deposit 621 621 
Other1,429 3,490 
Total accrued liabilities$31,453 $27,906 
Schedule of Contingent Liabilities
The following table summarizes the roll-forward of contingent liabilities as of December 31, 2025 and 2024 (in thousands):
December 31, 2023
PaymentsFair Value Adjustment
December 31, 2024
PaymentsFair Value Adjustment
December 31, 2025
Cydex$320 $(200)$263 $383 $(50)$62 $395 
Metabasis2,878 — 420 3,298 (1,270)798 2,826 
Total $3,198 $(200)$683 $3,681 $(1,320)$860 $3,221 
Schedule of Other Long Term Liabilities
Other long-term liabilities consist of the following (in thousands):
 December 31,
 20252024
Pelthos contract liability$— $15,938 
Unrecognized tax benefits16,588 14,160 
Other long-term liabilities41 65 
Total other long-term liabilities$16,629 $30,163 
v3.25.4
Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2025
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, 2025 and 2024 (in thousands):
Fair Value Measurements at Reporting Date Using
December 31, 2025
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(1)
$558,594 $183,982 $374,612 $— 
Pelthos Series A Preferred Shares106,262 106,262 — — 
Pelthos Common Shares46,500 46,500 — — 
Derivative assets(2)
15,632 — 10,643 4,989 
Total assets$726,988 $336,744 $385,255 $4,989 
Liabilities:
Contingent liabilities - CyDex$395 $— $— $395 
Contingent liabilities - Metabasis(3)
2,826 — 2,826 — 
Total liabilities$3,221 $— $2,826 $395 

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(1)
$183,858 $122,047 $61,811 $— 
Derivative assets(2)
10,583 — 806 9,777 
Total assets$194,441 $122,047 $62,617 $9,777 
Liabilities:
Contingent liabilities - CyDex$383 $— $— $383 
Contingent liabilities - Metabasis(3)
3,298 — 3,298 — 
Total liabilities$3,681 $— $3,298 $383 
(1) Excluding our investment in 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. 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 or all of those marketable securities to satisfy the liquidity needs of our current operations.
(2) The fair value of all derivative assets, except for Agenus Partnered Programs and Primrose mRNA derivative, was determined using a Black-Scholes model. Note that as of December 31, 2024, the derivative assets balance included Agenus Partnered Programs and Primrose mRNA derivative, which were reclassified to financial royalty assets as of January 1, 2025 due to the adoption of ASU 2025-07. Refer to Note 1, Basis of Presentation and Summary of Significant Accounting Policies, for information related to ASU 2025-07 adoption. As of December 31, 2024, 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 contemplated the underlying credit and business risk of the partnered programs. At December 31, 2024, the discount rates used ranged between 15% and 28%.
(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, 2025 is as follows (in thousands):
Assets
Fair value of level 3 financial instruments as of December 31, 2024
$9,777 
ASU 2025-07 adoption (Note 1)(9,777)
Additions to derivative assets5,787 
Fair value adjustments to derivative assets(798)
Fair value of level 3 financial instruments as of December 31, 2025
$4,989 
Liabilities
Fair value of level 3 financial instruments as of December 31, 2024
$383 
Payments to CVR holders and other contingent payments (50)
Fair value adjustments to contingent liabilities62 
Fair value of level 3 financial instruments as of December 31, 2025
$395 

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 assets27,950 
Fair value adjustments to derivative assets(12,878)
Exercise of derivative assets(8,826)
Fair value of level 3 financial instruments as of December 31, 2024
$9,777 
Liabilities
Fair value of level 3 financial instruments as of December 31, 2023
$320 
Payments to CVR holders and other contingency payments(200)
Fair value adjustments to contingent liabilities263 
Fair value of level 3 financial instruments as of December 31, 2024
$383 
Schedule of Reconciliation of Level 3 Financial Instruments, Liabilities
A reconciliation of the level 3 financial instruments as of December 31, 2025 is as follows (in thousands):
Assets
Fair value of level 3 financial instruments as of December 31, 2024
$9,777 
ASU 2025-07 adoption (Note 1)(9,777)
Additions to derivative assets5,787 
Fair value adjustments to derivative assets(798)
Fair value of level 3 financial instruments as of December 31, 2025
$4,989 
Liabilities
Fair value of level 3 financial instruments as of December 31, 2024
$383 
Payments to CVR holders and other contingent payments (50)
Fair value adjustments to contingent liabilities62 
Fair value of level 3 financial instruments as of December 31, 2025
$395 

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 assets27,950 
Fair value adjustments to derivative assets(12,878)
Exercise of derivative assets(8,826)
Fair value of level 3 financial instruments as of December 31, 2024
$9,777 
Liabilities
Fair value of level 3 financial instruments as of December 31, 2023
$320 
Payments to CVR holders and other contingency payments(200)
Fair value adjustments to contingent liabilities263 
Fair value of level 3 financial instruments as of December 31, 2024
$383 
v3.25.4
Debt (Tables)
 12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Schedule of Equity and Liability Components of the Convertible Senior Notes
The following table summarizes information about the 2030 Notes (in thousands).
December 31, 2025
Principal amount of the Notes outstanding$460,000 
Unamortized discount (including unamortized debt issuance cost)(13,808)
Total long-term portion of notes payable$446,192 
Fair value of convertible senior notes outstanding (Level 2)$539,419 
v3.25.4
Leases (Tables)
 12 Months Ended
Dec. 31, 2025
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, 2025December 31, 2024
Lease assets
Operating lease assets$5,152 $6,907 
Finance lease assets2,071 2,766 
Total lease assets$7,223 $9,673 
Lease liabilities
Current operating lease liabilities$1,095 $1,266 
Current finance lease liabilities24 24 
1,119 1,290 
Long-term operating lease liabilities4,204 5,815 
Long-term finance lease liabilities26 49 
Total lease liabilities $5,349 $7,154 
Schedule of Maturity of Operating Lease Liabilities
Maturity of operating and finance lease liabilities as of December 31, 2025 are as follows (in thousands):
Maturity DatesOperating LeasesFinance Leases
2026$1,142 $27 
20271,214 18 
20281,124 9 
2029886 2 
2030836 — 
Thereafter1,249 — 
Total lease payments6,451 56 
Less tenant improvement allowance— — 
Less imputed interest(1,150)(6)
Present value of lease liabilities$5,301 $50 
Schedule of Maturity of Finance Lease Liabilities
Maturity of operating and finance lease liabilities as of December 31, 2025 are as follows (in thousands):
Maturity DatesOperating LeasesFinance Leases
2026$1,142 $27 
20271,214 18 
20281,124 9 
2029886 2 
2030836 — 
Thereafter1,249 — 
Total lease payments6,451 56 
Less tenant improvement allowance— — 
Less imputed interest(1,150)(6)
Present value of lease liabilities$5,301 $50 
v3.25.4
Stockholders' Equity (Tables)
 12 Months Ended
Dec. 31, 2025
Equity [Abstract]  
Schedule of Share-Based Compensation Expense The following table summarizes share-based compensation expense recorded as components of research and development expenses and general and administrative expenses for the periods indicated (in thousands):
Year Ended December 31,
202520242023
Share-based compensation expense as a component of:
Research and development expenses$4,287 $3,544 $6,248 
General and administrative expenses42,562 37,545 19,495 
$46,849 $41,089 $25,743 
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, 20232,991,473 $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 
Granted468,876 $114.59 
Exercised(635,820)$74.04 
Forfeited(58,318)$83.99 
Balance at December 31, 20252,001,011 $84.48 7.39$209,288 
Exercisable at December 31, 20251,070,597 $75.32 6.47$121,777 
Options vested and expected to vest as of December 31, 20252,001,011 $84.48 7.39$209,288 
Schedule of Stock Option Plan Activity by Exercise Price Range
Following is a further breakdown of the options outstanding as of December 31, 2025:
Range of exercise prices
Options
outstanding
Weighted
average
remaining life
in years
Weighted 
average
exercise price
Options
exercisable
Weighted 
average
exercise price
$39.79-$55.75
213,920 5.78$51.04 194,031 $50.88 
$55.98-$67.03
204,845 6.23$64.38 149,821 $64.37 
$67.24-$69.70
215,407 5.55$69.22 182,407 $69.14 
$70.04-$75.09
301,023 7.47$74.23 171,605 $74.34 
$78.56-$88.27
128,209 8.24$82.20 73,576 $81.26 
$89.20-$89.20
352,850 8.16$89.20 131,697 $89.20 
$89.86-$114.76
175,215 6.45$103.79 99,224 $102.26 
$115.26-$115.26
387,782 9.17$115.26 65,670 $115.26 
$122.70-$122.70
10,260 8.92$122.70 2,566 $122.70 
$132.72-$132.72
11,500 9.58$132.72 — $— 
2,001,011 7.39$84.48 1,070,597 $75.32 
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,
 
2025
2024
2023
Risk-free interest rate
3.7%-4.3%
3.5%-4.5%
3.7%-4.6%
Expected volatility
40%-46%
44%-46%
45%-54%
Expected term
4.0 to 4.9 years
4.1 to 4.8 years
4.7 to 5.3 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, 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 
Granted231,761 $106.95 
Vested(208,153)$75.97 
Forfeited(5,933)$87.97 
Outstanding at December 31, 2025455,547 $98.86 
v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Benefit
For the years ended December 31, 2025, 2024, and 2023, the Company had the following income before income tax from continuing operations (in thousands):
Year Ended December 31,
202520242023
Domestic$126,428 $(25,855)$62,140 
Foreign32,532 28,373 1,520 
Income before income tax from continuing operations$158,960 $2,518 $63,660 
The components of the income tax expense (benefit) for continuing operations are as follows (in thousands):
 Year Ended December 31,
 202520242023
Current expense (benefit):
Federal$8,725 $18,277 $(1,186)
State280 718 218 
Foreign3,612 3,355 780 
Total current expense (benefit)12,617 22,350 (188)
Deferred expense (benefit):
Federal27,538 (17,767)9,374 
State574 77 655 
Foreign(6,222)1,890 — 
Total deferred expense (benefit)21,890 (15,800)10,029 
Total income tax expense (benefit)$34,507 $6,550 $9,841 
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, 2025
AmountPercent
Income taxes expense at statutory federal rate$33,457 21.00 %
State and local taxes, net of federal income tax effect(1)
646 0.41 %
Foreign tax effects
United Kingdom
Other390 0.24 %
Changes in valuation allowance(9,389)(5.89)%
Austria
Other(518)(0.33)%
India
Withholding Tax1,115 0.70 %
Effect of cross-border tax laws
Subpart F, net6,063 3.81 %
Foreign derived intangible income(314)(0.20)%
Tax credits
Foreign tax credits(1,115)(0.70)%
Solar tax credit(650)(0.41)%
R&D credit(134)(0.08)%
Changes in valuation allowance3,683 2.31 %
Nontaxable or nondeductible items
Section 162(m) officer’s compensation5,468 3.43 %
Equity compensation(4,373)(2.74)%
Permanent Items - Other(137)(0.09)%
Changes in unrecognized tax benefits(4)— %
Other319 0.20 %
Provision for income taxes$34,507 21.66 %
(1) The states that contribute to the majority (greater than 50%) of the tax effect in this category include Pennsylvania and Kansas for 2025.
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,
20242023
Tax at statutory federal rate$529 $13,448 
Subpart F income5,649 479 
Officer compensation3,921 844 
Foreign tax differential on income/loss of foreign subsidiaries1,115 (38)
Share-based compensation602 1,241 
Provision to return adjustments293 2,200 
Rate change for changes in federal, foreign or state law111 342 
Contingent liabilities88 (116)
Change in uncertain tax positions94 (7,206)
State, net of federal benefit(85)397 
Research and development credits(324)(405)
FDII(832)(1,037)
Change in valuation allowance(1,638)(1,184)
Foreign tax credits(3,232)— 
Other259 876 
Total$6,550 $9,841 
Schedule of Income Taxes Paid, Net
The amount of cash taxes paid are as follows (in thousands):
 Year Ended December 31,
 2025
Federal$3,660 
State204 
Foreign3,938 
Income taxes, net of amounts refunded$7,802 
Schedule of Deferred Tax Assets and Liabilities Deferred tax assets (liabilities) are comprised of the following (in thousands):
 December 31,
 20252024
Deferred tax assets:
Net operating loss carryforwards$32,514 $40,385 
2030 Notes original issue discount22,814 — 
Research credit carryforwards19,223 24,404 
Stock compensation11,570 10,726 
Financial royalty assets12,879 — 
Capitalized R&D— 7,090 
Other7,775 13,733 
106,775 96,338 
Valuation allowance for deferred tax assets(48,331)(55,649)
Net deferred tax assets58,444 40,689 
Deferred tax liabilities:
Identified intangibles(45,781)(69,150)
Mark-to-market(38,226)— 
     Other(2,111)(3,991)
Net deferred tax liabilities(86,118)(73,141)
Deferred income taxes, net$(27,674)$(32,452)
Schedule of Unrecognized Tax Benefits
A reconciliation of the amount of unrecognized tax benefits at December 31, 2025, 2024 and 2023 is as follows (in thousands):
December 31,
202520242023
Balance at beginning of year$22,471 $22,363 $29,096 
Additions based on tax positions related to the current year5,342 27 47 
Additions for tax positions of prior years192 477 3 
Reductions for tax positions of prior years(361)(396)(6,783)
Balance at end of year$27,644 $22,471 $22,363 
v3.25.4
Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Details)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2025
USD ($)
contract
segment
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Dec. 31, 2007
$ / shares
Mar. 31, 2023
USD ($)
Jan. 31, 2010
right
Property, Plant and Equipment            
Number of operating segments | segment 1          
Number of reportable segment | segment 1          
Deferred tax asset adjustment $ 58,444 $ 40,689        
Increase (decrease) of allowance for credit loss 400 (200) $ 300      
Write-downs related to obsolete inventory 0 200 200      
Inventory 9,126 14,114        
Revenue recognized   600 1,300      
Gain on sale of business 0 0 $ 2,121      
Dividend declared (in USD per share) | $ / shares       $ 2.50    
LNHC, Inc            
Property, Plant and Equipment            
Gain on sale of business $ 53,100          
Dividend yield            
Property, Plant and Equipment            
Measurement input (as a percent) 0          
PSUs            
Property, Plant and Equipment            
Share-based compensation arrangement by share-based payment award, award requisite service period 3 years          
Stock options | 2002 Stock Incentive Plan            
Property, Plant and Equipment            
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            
Property, Plant and Equipment            
Award vesting period (in years) 6 months          
Stock options | 2002 Stock Incentive Plan | Vest 1/48 each month for forty-two months            
Property, Plant and Equipment            
Award vesting period (in years) 42 months          
RSUs and PSUs            
Property, Plant and Equipment            
Award vesting period (in years) 3 years          
Metabasis Therapeutics            
Property, Plant and Equipment            
Number of contingent value rights | right           4
Agenus Partnered Program | Primordial Genetics            
Property, Plant and Equipment            
Number of contracts | contract 2          
Minimum | PSUs            
Property, Plant and Equipment            
Share-based compensation, achievement of performance criteria, payout range, percent 0.00%          
Maximum | PSUs            
Property, Plant and Equipment            
Share-based compensation, achievement of performance criteria, payout range, percent 200.00%          
Captisol            
Property, Plant and Equipment            
Inventory $ 2,100 $ 3,100        
Primrose Bio            
Property, Plant and Equipment            
Percentage of milestones (as a percent) 50.00%          
Scenario, Adjustment            
Property, Plant and Equipment            
Deferred tax asset adjustment         $ (1,700)  
v3.25.4
Basis of Presentation and Summary of Significant Accounting Policies - Segment Profit or Loss (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Revenue, Major Customer      
Total revenue and income $ 268,087 $ 167,133 $ 131,314
Share-based compensation (46,849) (41,089) (25,743)
Other segment items:      
Amortization of intangibles (32,708) (32,959) (33,654)
Depreciation of property and equipment (1,000) (2,300) (2,900)
Interest expense (4,715) (3,037) (656)
Net income (loss) from continuing operations 41,002 (22,606) 11,942
Other expense items, net 125,800 56,700 48,700
Development and Licensing of Biopharmaceutical Assets      
Revenue, Major Customer      
Total revenue and income 268,087 167,133 131,314
Share-based compensation (46,849) (41,089) (25,743)
Other segment items:      
Amortization of intangibles (32,708) (32,959) (33,654)
Depreciation of property and equipment (991) (2,300) (2,905)
Interest income 13,659 8,055 7,711
Interest expense (4,715) (3,037) (656)
Other (72,030) (99,835) (22,248)
Net income (loss) from continuing operations $ 124,453 $ (4,032) $ 53,819
v3.25.4
Basis of Presentation and Summary of Significant Accounting Policies - Revenue from Significant Partners (Details) - Customer Concentration Risk - Revenue
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Partner A      
Revenue, Major Customer      
Total revenues (as a percent) 22.00% 23.00% 33.00%
Partner B      
Revenue, Major Customer      
Total revenues (as a percent) 17.00% 12.00% 20.00%
Partner C      
Revenue, Major Customer      
Total revenues (as a percent) 12.00% 10.00% 10.00%
v3.25.4
Basis of Presentation and Summary of Significant Accounting Policies - Royalty Revenue (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Disaggregation of Revenue      
Total revenue and income $ 268,087 $ 167,133 $ 131,314
Royalties      
Disaggregation of Revenue      
Total revenue and income 161,001 108,773 84,959
Revenue from intangible royalty assets      
Disaggregation of Revenue      
Total revenue and income 132,534 95,329 83,910
Kyprolis      
Disaggregation of Revenue      
Total revenue and income 35,534 38,377 35,640
Filspari      
Disaggregation of Revenue      
Total revenue and income 31,971 12,179 2,655
Rylaze      
Disaggregation of Revenue      
Total revenue and income 13,350 13,743 13,520
Capvaxive      
Disaggregation of Revenue      
Total revenue and income 10,059 626 0
Ohtuvayre      
Disaggregation of Revenue      
Total revenue and income 9,760 833 0
Teriparatide injection      
Disaggregation of Revenue      
Total revenue and income 8,148 8,221 11,061
Vaxneuvance      
Disaggregation of Revenue      
Total revenue and income 7,403 5,184 4,062
Evomela      
Disaggregation of Revenue      
Total revenue and income 5,943 8,680 10,212
Other      
Disaggregation of Revenue      
Total revenue and income 10,366 7,486 6,760
Income from financial royalty assets      
Disaggregation of Revenue      
Total revenue and income 28,467 13,444 1,049
Qarziba      
Disaggregation of Revenue      
Total revenue and income 23,739 11,120 0
Other      
Disaggregation of Revenue      
Total revenue and income 4,728 2,324 1,049
Captisol      
Disaggregation of Revenue      
Total revenue and income 40,213 30,883 28,372
Contract revenue and income      
Disaggregation of Revenue      
Total revenue and income 66,873 27,477 17,983
Income from Pelthos Transaction      
Disaggregation of Revenue      
Total revenue and income 53,072 0 0
Contract revenue      
Disaggregation of Revenue      
Total revenue and income 6,813 25,533 17,983
Income      
Disaggregation of Revenue      
Total revenue and income $ 6,988 $ 1,944 $ 0
v3.25.4
Basis of Presentation and Summary of Significant Accounting Policies - Calculation of Earnings per Share (Details) - shares
shares in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2024
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Earnings Per Share, Diluted, by Common Class, Including Two Class Method        
Weighted-average common shares outstanding - basic (in shares)   19,338 18,290 17,298
Shares used to compute diluted income per share (in shares)   20,294 18,290 17,757
Potentially dilutive shares excluded from calculation due to anti-dilutive effect (shares)   3,194 1,530 4,357
Restricted stock        
Earnings Per Share, Diluted, by Common Class, Including Two Class Method        
Dilutive potential common shares (in shares) 311 0 85  
Stock options        
Earnings Per Share, Diluted, by Common Class, Including Two Class Method        
Dilutive potential common shares (in shares) 645 0 255  
Convertible Debt Securities        
Earnings Per Share, Diluted, by Common Class, Including Two Class Method        
Dilutive potential common shares (in shares)   0 0 119
v3.25.4
Pelthos Transaction - Narrative (Details) - USD ($)
$ in Thousands
 1 Months Ended 12 Months Ended
Jul. 10, 2025
Jul. 01, 2025
Jul. 31, 2025
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Jun. 30, 2025
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations              
Equity method investments       $ 46,500 $ 0    
Total revenue and income       268,087 167,133 $ 131,314  
Contract revenue and income              
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations              
Total revenue and income       66,873 $ 27,477 $ 17,983  
Pelthos              
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations              
Equity method investments             $ 12,700
Settlement of related party debt   $ 5,300 $ 5,300        
Investments       152,762     62,092
Pelthos | Common Stock              
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations              
Equity method investments       $ 46,500     $ 18,900
Equity method investment, ownership percentage       48.00%      
Equity method investment, maximum ownership percentage       49.90%      
Pelthos | Series A Convertible Preferred Stock              
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations              
Equity method investment, ownership percentage       60.00%      
Pelthos | Corporate equity securities              
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations              
Investments       $ 62,100      
Pelthos | Contract revenue and income              
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations              
Total revenue and income   $ 53,100          
Pelthos | Zelsuvmi              
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations              
Sales revenue milestone $ 5,000            
Product royalty rate 13.00%            
Additional royalties receivable under sales-based milestones $ 5,000            
Private Placement              
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations              
Common stock aggregate offering price     18,000        
Private Placement | Investor Group              
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations              
Common stock aggregate offering price     32,000        
Co-venturer | Private Placement | Investor Group              
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations              
Common stock aggregate offering price     $ 50,000        
Pelthos              
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations              
Acquisition cost       $ 4,600      
v3.25.4
Pelthos Transaction - Schedule of Investments (Details)
$ in Thousands
 6 Months Ended
Dec. 31, 2025
USD ($)
Investments  
Fair value on December 31, 2025 $ 121,451
Fair value on December 31, 2025 46,500
Pelthos  
Investments  
Fair value on July 1, 2025 12,700
Fair value on July 1, 2025 62,092
Change in fair value for the three months ended December 31, 2025 90,670
Fair value on December 31, 2025 152,762
Preferred Class A | Pelthos  
Investments  
Change in fair value for the three months ended December 31, 2025 63,070
Preferred Class A | Pelthos | Fair Value Option, Other Eligible Items  
Investments  
Fair value on July 1, 2025 43,192
Fair value on December 31, 2025 106,262
Common Stock | Pelthos  
Investments  
Fair value on July 1, 2025 18,900
Change in fair value for the three months ended December 31, 2025 27,600
Fair value on December 31, 2025 $ 46,500
v3.25.4
Pelthos Transaction - Schedule of Carrying Amounts of Major Classes of Assets and Liabilities Related to Assets Held for Sale (Details) - Discontinued Operations, Held-for-Sale - Pelthos
$ in Thousands
Jul. 01, 2025
USD ($)
Disposal Group, Including Discontinued Operation, Assets [Abstract]  
Cash and cash equivalents $ 2,817
Accounts receivable, net 48
Other current assets 7,910
Property and equipment, net 11,091
Intangible assets, net 8,501
Goodwill 3,709
Operating lease right-of-use assets 3,625
Other assets 4,812
Accounts payable (993)
Accrued liabilities (3,894)
Deferred revenue (2,835)
Operating lease liabilities (3,566)
Short-term bridge loans (6,963)
Deferred income taxes, net (3,069)
Other long-term liabilities (17,441)
Net assets sold 3,752
Cash consideration paid 5,268
Net assets sold and cash consideration paid $ 9,020
v3.25.4
Pelthos Transaction - Fair Value of the Consideration (Details) - Pelthos - Disposal Group, Disposed of by Sale, Not Discontinued Operations
$ in Thousands
Jul. 01, 2025
USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations  
Total consideration received $ 62,092
Net assets sold and cash consideration paid 9,020
Gain from Pelthos Transaction 53,072
Equity method investment (common shares)  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations  
Disposal group, including discontinued operation, non-cash-consideration 18,900
Other investment (Series A convertible preferred shares)  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations  
Disposal group, including discontinued operation, non-cash-consideration $ 43,192
v3.25.4
Investment Transactions (Details)
$ / shares in Units, $ in Thousands
 2 Months Ended 12 Months Ended
Dec. 31, 2025
USD ($)
$ / shares
Dec. 18, 2025
USD ($)
Nov. 06, 2025
USD ($)
$ / shares
Sep. 24, 2025
USD ($)
installment
shares
Aug. 04, 2025
USD ($)
$ / shares
Feb. 24, 2025
USD ($)
$ / shares
May 29, 2024
USD ($)
$ / shares
shares
Dec. 31, 2025
USD ($)
$ / shares
Dec. 31, 2025
USD ($)
$ / shares
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Jul. 31, 2025
USD ($)
Asset Acquisition                        
Interest receivable $ 100             $ 100 $ 100      
Cash paid for InvIOs investment                 303 $ 4,196 $ 0  
Net carrying value $ 219,669             $ 219,669 $ 219,669 $ 195,049    
Orchestra BioMed                        
Asset Acquisition                        
Other commitment, investment amount, maximum                       $ 40,000
Investment amount, at closing         $ 20,000              
Investment amount, to be funded         15,000              
Orchestra BioMed | Hurdle One                        
Asset Acquisition                        
Contracted royalty revenue         100,000              
Orchestra BioMed | Hurdle Two                        
Asset Acquisition                        
Contracted royalty revenue         100,000              
Option Volatility | Minimum                        
Asset Acquisition                        
Warrant measurement input (as a percent)       0.32                
Option Volatility | Maximum                        
Asset Acquisition                        
Warrant measurement input (as a percent)       0.33                
Risk Free Interest Rate | Minimum                        
Asset Acquisition                        
Warrant measurement input (as a percent)       0.047                
Risk Free Interest Rate | Maximum                        
Asset Acquisition                        
Warrant measurement input (as a percent)       0.046                
Agenus Bot/Bal                        
Asset Acquisition                        
Warrants issued in public offering (in shares) | shares             867,052          
Warrants term (in years)             5 years          
Net carrying value             $ 75,000          
Royalties right to receive (as a percent)             18.75%          
Maximum capital sourcing             $ 100,000          
Maximum financing royalty asset             $ 200,000          
Exercise price of warrants (in USD per share) | $ / shares             $ 17.30          
Agenus Bot/Bal | Expected Term                        
Asset Acquisition                        
Warrant measurement input (as a percent) 3.4           3.4 3.4 3.4      
Agenus Bot/Bal | Option Volatility                        
Asset Acquisition                        
Warrant measurement input (as a percent) 1.02           0.97 1.02 1.02      
Agenus Bot/Bal | Risk Free Interest Rate                        
Asset Acquisition                        
Warrant measurement input (as a percent) 0.043           0.036 0.043 0.043      
Agenus Bot/Bal | Share Price                        
Asset Acquisition                        
Warrant measurement input (as a percent) | $ / shares 2.74           3.14 2.74 2.74      
Agenus Partnered Program                        
Asset Acquisition                        
Additional maximum investment             $ 25,000          
INCAGN2390 | Agenus Bot/Bal                        
Asset Acquisition                        
Future milestones right to receive (as a percent)             31.875%          
AGEN2373 | Agenus Bot/Bal                        
Asset Acquisition                        
Future milestones right to receive (as a percent)             31.875%          
INCAGN2385 | Agenus Bot/Bal                        
Asset Acquisition                        
Future milestones right to receive (as a percent)             31.875%          
UGN-301 | Agenus Bot/Bal                        
Asset Acquisition                        
Future milestones right to receive (as a percent)             31.875%          
MK-4830 | Agenus Bot/Bal                        
Asset Acquisition                        
Future milestones right to receive (as a percent)             31.875%          
BMS-986442 | Agenus Bot/Bal                        
Asset Acquisition                        
Future milestones right to receive (as a percent)             31.875%          
BOT/BAL | Agenus Bot/Bal                        
Asset Acquisition                        
Future royalties (as a percent)             2.625%          
Pelthos                        
Asset Acquisition                        
Amortization of debt discount (premium)               $ 200        
LeonaBio                        
Asset Acquisition                        
Payments to acquire common stock and warrants   $ 1,000                    
Pelthos Convertible Notes                        
Asset Acquisition                        
Payments to acquire loan     $ 9,000                  
Effective interest rate (percent)     8.50%                  
Loan receivable, conversion price | $ / shares     $ 29.73                  
Accounts receivable, issuance cost     $ 300                  
Embedded conversion option, value     4,800                  
Convertible receivable, value     $ 3,800                  
Mark-to-market loss               $ 1,400        
Pelthos Convertible Notes | Pelthos | Notes Receivable | Expected Term                        
Asset Acquisition                        
Derivative liability, measurement input 1.9   2.0         1.9 1.9      
Pelthos Convertible Notes | Pelthos | Notes Receivable | Option Volatility                        
Asset Acquisition                        
Derivative liability, measurement input     0.600                  
Pelthos Convertible Notes | Pelthos | Notes Receivable | Risk Free Interest Rate                        
Asset Acquisition                        
Derivative liability, measurement input 0.035   0.036         0.035 0.035      
Pelthos Convertible Notes | Pelthos | Notes Receivable | Share Price                        
Asset Acquisition                        
Derivative liability, measurement input 31.00   37.00         31.00 31.00      
Pelthos Convertible Notes | Xepi                        
Asset Acquisition                        
Embedded conversion option, value     $ 500                  
Pelthos Convertible Notes | Sato                        
Asset Acquisition                        
Embedded conversion option, value     200                  
Pelthos Convertible Notes | Purchasers                        
Asset Acquisition                        
Payments to acquire loan     $ 18,000                  
Orchestra BioMed                        
Asset Acquisition                        
Cash paid for InvIOs investment         $ 5,000              
Sale of stock price (in dollars per share) | $ / shares         $ 2.75              
Orchestra Warrant                        
Asset Acquisition                        
Payments for repurchase of warrants         $ 2,300              
Recognized research and development expense                 $ 17,800      
Castle Creek Investment                        
Asset Acquisition                        
Payments to acquire productive asset           $ 50,000     50,100      
Payments for repurchase of warrants                 5,800      
Recognized research and development expense                 $ 44,300      
Receivable with imputed interest           8,300            
Cash paid for Palvella notes receivable           1,800            
Castle Creek Investment | Purchasers                        
Asset Acquisition                        
Payments to acquire productive asset           75,000            
Castle Creek Investment | Other Purchasers                        
Asset Acquisition                        
Payments to acquire productive asset           $ 25,000            
Series A Warrants                        
Asset Acquisition                        
Equity issuance cost $ 100                      
Leaona Bio Series B Warrants                        
Asset Acquisition                        
Equity issuance cost $ 200                      
Acecor Warrants                        
Asset Acquisition                        
Warrants issued in public offering (in shares) | shares       1,002,739                
Warrants term (in years) 9 years 8 months 12 days     10 years       9 years 8 months 12 days 9 years 8 months 12 days      
Payments for repurchase of warrants       $ 500                
Acecor Warrants | Risk Free Interest Rate | Minimum                        
Asset Acquisition                        
Warrant measurement input (as a percent)       0.73                
Acecor Warrants | Risk Free Interest Rate | Maximum                        
Asset Acquisition                        
Warrant measurement input (as a percent)       0.81                
Orchestra Warrant                        
Asset Acquisition                        
Warrants term (in years) 9 years 7 months 6 days       10 years     9 years 7 months 6 days 9 years 7 months 6 days      
Orchestra Warrant | Option Volatility | Minimum                        
Asset Acquisition                        
Warrant measurement input (as a percent)         0.73              
Orchestra Warrant | Option Volatility | Maximum                        
Asset Acquisition                        
Warrant measurement input (as a percent)         0.72              
Orchestra Warrant | Risk Free Interest Rate                        
Asset Acquisition                        
Warrant measurement input (as a percent) 0.042       0.044     0.042 0.042      
Orchestra Warrant | Share Price | Orchestra BioMed                        
Asset Acquisition                        
Warrant measurement input (as a percent) | $ / shares 4.15       2.68     4.15 4.15      
Castle Creek Warrant                        
Asset Acquisition                        
Warrants term (in years) 2 years 8 months 12 days         3 years 6 months   2 years 8 months 12 days 2 years 8 months 12 days      
Castle Creek Warrant | Option Volatility                        
Asset Acquisition                        
Warrant measurement input (as a percent) 1.10         1.10   1.10 1.10      
Castle Creek Warrant | Share Price                        
Asset Acquisition                        
Warrant measurement input (as a percent) | $ / shares 0.035         0.042   0.035 0.035      
Common Stock                        
Asset Acquisition                        
Equity issuance cost $ 700                      
LeonaBio                        
Asset Acquisition                        
Equity issuance cost $ 1,000                      
Arecor Limited                        
Asset Acquisition                        
Asset acquisition, consideration transferred       $ 7,000                
Asset acquisition, deferred consideration payable       $ 1,000                
Asset acquisition, deferred consideration, number of installments | installment       2                
Asset acquisition financial royalty assets       $ 800                
Arecor Limited | (AT220) Financial Royalty                        
Asset Acquisition                        
Asset acquisition financial royalty assets       4,800                
Arecor Limited | (AT229) Financial Royalty                        
Asset Acquisition                        
Asset acquisition financial royalty assets       1,900                
Payment for contingent consideration liability, investing activities       $ 3,000                
v3.25.4
Acquisitions - Narrative (Details)
$ in Thousands, € in Millions
 12 Months Ended
Jul. 15, 2024
USD ($)
Jul. 15, 2024
EUR (€)
Sep. 27, 2023
USD ($)
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Apr. 03, 2024
Business Combination              
Cash paid for InvIOs investment       $ 303 $ 4,196 $ 0  
InvIOs Holding AG              
Business Combination              
Cash paid for InvIOs investment $ 4,200            
Equity issuance cost 200            
InvIOs Holding AG | Investor              
Business Combination              
Cash paid for InvIOs investment 8,800 € 8          
APEIRON              
Business Combination              
Consideration transferred 100,500            
Contingent earn-out payment 28,000            
Deferred transaction costs 4,900            
Deferred tax liability $ 18,109            
Intangible assets         $ 0    
Novan, Inc.              
Business Combination              
Cash payments for acquisition     $ 15,000        
Liabilities incurred     15,000        
Intangible assets           10,700  
Acquired (as a percent)             10.30%
Cash acquired from acquisition     2,800        
Acquisition related costs           $ 3,100  
Novan, Inc. | Core Technology              
Business Combination              
Intangible assets     12,200        
Novan, Inc. | Bridge Loan              
Business Combination              
Liabilities incurred     $ 3,000        
v3.25.4
Acquisitions - Fair Values of Assets Acquired and Liabilities Assumed (Details) - APEIRON - USD ($)
$ in Thousands
Dec. 31, 2024
Jul. 15, 2024
Business Combination    
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
v3.25.4
Sale of Pelican Business and Investment in Primrose Bio (Details)
 12 Months Ended
Sep. 18, 2023
USD ($)
shares
Dec. 31, 2025
USD ($)
contract
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Jan. 01, 2025
USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations          
Noncurrent derivative assets $ 3,200,000 $ 15,632,000 $ 10,583,000    
Derivative asset noncurrent, statement of financial position, extensible enumeration, not disclosed flag     consolidated balance sheet as of December 31, 2024    
Gain (loss) on derivative instruments   1,022,000 $ (20,010,000) $ 250,000  
Losses from equity method investment in Primrose Bio   0 7,008,000 1,829,000  
Primrose Bio          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations          
Impairment of equity method investment   $ 0 5,800,000 0  
Losses from equity method investment in Primrose Bio     $ 7,000,000.0 1,800,000  
Equity method investment, ownership percentage   31.50% 31.40%    
Decrease in value of investment   $ (25,800,000)      
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          
Cash consideration paid $ 15,000,000        
Primrose Bio | PeliCRM197          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations          
Sales revenue milestone         $ 3,000,000
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%
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  
v3.25.4
Financial Royalty Assets, net - Schedule of Financial Royalty Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Finite-Lived Intangible Assets    
Gross carrying value $ 222,375 $ 198,587
Allowance (2,706) (3,538)
Net carrying value 219,669 195,049
Financial royalty liability current 22,800 10,000
Qarziba    
Finite-Lived Intangible Assets    
Gross carrying value 118,593 105,329
Allowance (498) (484)
Net carrying value 118,095 104,845
Agenus Bot/Bal    
Finite-Lived Intangible Assets    
Gross carrying value 40,815 40,815
Allowance (408) (408)
Net carrying value 40,407 40,407
Tolerance Therapeutics (Tzield)    
Finite-Lived Intangible Assets    
Gross carrying value 25,257 25,613
Allowance (98) (101)
Net carrying value 25,159 25,512
Ohtuvayre inventors    
Finite-Lived Intangible Assets    
Gross carrying value 16,921 15,969
Allowance (151) (157)
Net carrying value 16,770 15,812
Elutia (CorMatrix)    
Finite-Lived Intangible Assets    
Gross carrying value 6,607 9,418
Allowance (1,107) (2,268)
Net carrying value 5,500 7,150
AT220 (Tyenne)    
Finite-Lived Intangible Assets    
Gross carrying value 5,132 0
Allowance (132) 0
Net carrying value 5,000 0
Primrose mRNA    
Finite-Lived Intangible Assets    
Gross carrying value 3,281 0
Allowance (98) 0
Net carrying value 3,183 0
Others    
Finite-Lived Intangible Assets    
Gross carrying value 5,769 1,443
Allowance (214) (120)
Net carrying value $ 5,555 $ 1,323
v3.25.4
Financial Royalty Assets, net - Narrative (Details)
 1 Months Ended 12 Months Ended
May 31, 2017
USD ($)
Nov. 30, 2023
USD ($)
Dec. 31, 2025
USD ($)
contract
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Sep. 24, 2025
USD ($)
May 31, 2025
USD ($)
Jan. 31, 2025
USD ($)
Aug. 31, 2024
USD ($)
Jul. 15, 2024
USD ($)
Mar. 31, 2024
USD ($)
Oct. 31, 2023
USD ($)
Sep. 18, 2023
USD ($)
Finite-Lived Intangible Assets                          
Impairment loss of financial royalty assets     $ 6,197,000 $ 30,572,000 $ 924,000                
Gross carrying value     222,375,000 198,587,000                  
Arecor Limited                          
Finite-Lived Intangible Assets                          
Asset acquisition financial royalty assets           $ 800,000              
Ohtuvayre inventors                          
Finite-Lived Intangible Assets                          
Gross carrying value               $ 1,800,000 $ 13,600,000   $ 3,800,000    
Elutia (CorMatrix)                          
Finite-Lived Intangible Assets                          
(Reduction) credit loss adjustment     $ (1,200,000) (5,200,000) 3,200,000                
Primrose Bio                          
Finite-Lived Intangible Assets                          
Cash consideration paid                         $ 15,000,000
Agenus Partnered Program | Primordial Genetics                          
Finite-Lived Intangible Assets                          
Number of contracts | contract     2                    
APEIRON                          
Finite-Lived Intangible Assets                          
Financial royalty assets       106,156,000           $ 106,156,000      
Deferred tax liability                   18,109,000      
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                      
Primrose mRNA                          
Finite-Lived Intangible Assets                          
Impairment loss of financial royalty assets       30,300,000                  
Selexis                          
Finite-Lived Intangible Assets                          
Impairment loss of financial royalty assets       300,000 $ 900,000                
Qarziba                          
Finite-Lived Intangible Assets                          
Gross carrying value     $ 118,593,000 105,329,000                  
Qarziba | APEIRON                          
Finite-Lived Intangible Assets                          
Financial royalty assets                   104,900,000      
AT220 (Tyenne) | APEIRON                          
Finite-Lived Intangible Assets                          
Financial royalty assets                   $ 1,300,000      
Elutia (CorMatrix)                          
Finite-Lived Intangible Assets                          
Product royalty (as a percent) 5.00%                        
Gross carrying value     $ 6,607,000 $ 9,418,000                  
Proceeds from royalties received $ 10,000,000                        
Proceeds from common stock in lieu of cash payment             $ 2,300,000            
Elutia (CorMatrix) | Maximum                          
Finite-Lived Intangible Assets                          
Additional royalties receivable under sales-based milestones $ 10,000,000                        
(AT220) Financial Royalty | Arecor Limited                          
Finite-Lived Intangible Assets                          
Asset acquisition financial royalty assets           4,800,000              
(AT229) Financial Royalty | Arecor Limited                          
Finite-Lived Intangible Assets                          
Asset acquisition financial royalty assets           $ 1,900,000              
Primrose Bio                          
Finite-Lived Intangible Assets                          
Percentage of milestones (as a percent)     50.00%                    
Soticlestat | Primrose mRNA                          
Finite-Lived Intangible Assets                          
Cash consideration paid                       $ 30,000,000  
Interest in sales revenue (as a percent)                       13.00%  
v3.25.4
Balance Sheet Account Details - Investment Categories (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Debt Securities, Available-for-sale    
Cost $ 503,290 $ 151,619
Gross unrealized gains 59,197 38,865
Gross unrealized losses (3,893) (6,626)
Estimated fair value 558,594 183,858
U.S. Government Agencies    
Debt Securities, Available-for-sale    
Cost 175,780  
Gross unrealized gains 89  
Gross unrealized losses (38)  
Estimated fair value 175,831  
Corporate notes/bonds    
Debt Securities, Available-for-sale    
Cost 124,249 15,496
Gross unrealized gains 98 21
Gross unrealized losses (52) (8)
Estimated fair value 124,295 15,509
U.S. Treasuries    
Debt Securities, Available-for-sale    
Cost 113,055 78,442
Gross unrealized gains 137 19
Gross unrealized losses (4) (13)
Estimated fair value 113,188 78,448
Commercial paper    
Debt Securities, Available-for-sale    
Cost 74,473 23,483
Gross unrealized gains 21 5
Gross unrealized losses (8) (6)
Estimated fair value 74,486 23,482
Certificates of Deposit    
Debt Securities, Available-for-sale    
Cost   22,812
Gross unrealized gains   12
Gross unrealized losses   (4)
Estimated fair value   22,820
Corporate equity securities    
Debt Securities, Available-for-sale    
Cost 15,733 11,386
Gross unrealized gains 58,852 38,808
Gross unrealized losses (3,791) (6,595)
Estimated fair value $ 70,794 $ 43,599
v3.25.4
Balance Sheet Account Details - Available-for-Sale Debt Securities by Contractual Maturity (Details)
$ in Thousands
Dec. 31, 2025
USD ($)
Amortized Cost  
Within one year $ 295,974
After one year through five years 191,583
Total 487,557
Fair Value  
Within one year 296,093
After one year through five years 191,707
Total $ 487,800
v3.25.4
Balance Sheet Account Details - Available-for-Sale Debt Securities in an Unrealized Loss Position (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Gross Unrealized Losses    
Less than 12 months $ (31) $ (15)
12 months or greater (71) (16)
Total (102) (31)
Estimated Fair Value    
Less than 12 months 76,486 46,370
12 months or greater 90,055 7,790
Total 166,541 54,160
Certificates of Deposit    
Gross Unrealized Losses    
Less than 12 months   (4)
12 months or greater   0
Total   (4)
Estimated Fair Value    
Less than 12 months   6,195
12 months or greater   0
Total   6,195
Corporate notes/bonds    
Gross Unrealized Losses    
Less than 12 months (14) (1)
12 months or greater (38) (7)
Total (52) (8)
Estimated Fair Value    
Less than 12 months 16,395 866
12 months or greater 49,311 3,026
Total 65,706 3,892
Commercial paper    
Gross Unrealized Losses    
Less than 12 months (8) (6)
12 months or greater 0 0
Total (8) (6)
Estimated Fair Value    
Less than 12 months 24,071 9,344
12 months or greater 0 0
Total 24,071 9,344
U.S. Government Agencies    
Gross Unrealized Losses    
Less than 12 months (5)  
12 months or greater (33)  
Total (38)  
Estimated Fair Value    
Less than 12 months 26,554  
12 months or greater 40,744  
Total 67,298  
U.S. Treasuries    
Gross Unrealized Losses    
Less than 12 months (4) (4)
12 months or greater 0 (9)
Total (4) (13)
Estimated Fair Value    
Less than 12 months 9,466 29,965
12 months or greater 0 4,764
Total $ 9,466 $ 34,729
v3.25.4
Balance Sheet Account Details - Narrative (Details)
shares in Millions
 3 Months Ended 12 Months Ended
Jun. 30, 2024
USD ($)
Dec. 31, 2025
USD ($)
position
shares
Dec. 31, 2024
USD ($)
shares
Dec. 31, 2023
USD ($)
shares
Schedule of Investments        
Number of positions in an unrealized loss position | position   68    
Debt securities, available-for-sale, unrealized loss position, accumulated loss   $ (102,000) $ (31,000)  
Amortized cost $ 50,000.00      
Credit losses related to available-for-sale debt securities   0 0 $ 0
Investment in Viking common stock   35,200,000 40,200,000  
Gain from short-term investments   18,433,000 75,024,000 46,365,000
Amortization of intangibles   32,708,000 32,959,000 33,654,000
Impairment loss of financial royalty assets   0 0 0
Fair value adjustments to partner program derivatives   0 (15,055,000) 0
Depreciation of property and equipment   1,000,000.0 2,300,000 2,900,000
Warrant [Member]        
Schedule of Investments        
Fair value adjustments to partner program derivatives   1,000,000.0    
Primrose Bio        
Schedule of Investments        
Fair value adjustments in investment     25,800,000  
Impairment of equity investments     5,800,000  
Neuritek        
Schedule of Investments        
Impairment of equity investments     3,000,000.0  
Primrose Bio        
Schedule of Investments        
Fair value adjustments to partner program derivatives     (100,000) $ 300,000
Castle Creek Warrant        
Schedule of Investments        
Fair value adjustments to partner program derivatives   (800,000)    
Orchestra Warrant        
Schedule of Investments        
Fair value adjustments to partner program derivatives   1,500,000    
Pelthos Conversion Option        
Schedule of Investments        
Fair value adjustments to partner program derivatives   (1,500,000)    
Agenus Warrant        
Schedule of Investments        
Fair value adjustments to partner program derivatives   500,000    
LeonaBio Warrants (Series A and Series B)        
Schedule of Investments        
Fair value adjustments to partner program derivatives   1,200,000    
Arecor Warrant        
Schedule of Investments        
Fair value adjustments to partner program derivatives   $ 100,000    
Partner Programs | Agenus Bot/Bal        
Schedule of Investments        
Fair value adjustments to partner program derivatives     (15,000,000.0)  
Other Derivatives        
Schedule of Investments        
Fair value adjustments to partner program derivatives     $ (12,100,000)  
Maximum        
Schedule of Investments        
Finite-lived intangible asset, useful life   20 years    
Property and equipment, useful life (in years)   25 years    
Minimum        
Schedule of Investments        
Property and equipment, useful life (in years)   2 years    
Viking Therapeutics, Inc.        
Schedule of Investments        
Stock sold of equity method investee (in shares) | shares   0.0 0.7 5.0
Gain from short-term investments     $ 60,000,000.0 $ 44,400,000
Vikings        
Schedule of Investments        
Vikings common stock outstanding   $ 1,000,000.0    
Vikings | Collars        
Schedule of Investments        
Fair value adjustments to partner program derivatives     $ 7,100,000  
Pelthos Series A Preferred Shares        
Schedule of Investments        
Fair value adjustments in investment   $ 63,100,000    
v3.25.4
Balance Sheet Account Details - Goodwill and Other Intangible Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Finite-Lived Intangible Assets    
Goodwill $ 101,541 $ 105,250
Finite-Lived Intangible Assets, Net, Total 225,438 266,648
Total goodwill and other identifiable intangible assets, net 326,979 371,898
Completed technology    
Finite-Lived Intangible Assets    
Definite-lived intangible assets 29,619 39,249
Less: Accumulated amortization (20,809) (19,710)
Trade name    
Finite-Lived Intangible Assets    
Definite-lived intangible assets 2,642 2,642
Less: Accumulated amortization (1,976) (1,843)
Customer relationships    
Finite-Lived Intangible Assets    
Definite-lived intangible assets 29,600 29,600
Less: Accumulated amortization (22,144) (20,652)
Contractual relationships    
Finite-Lived Intangible Assets    
Definite-lived intangible assets 360,000 360,000
Less: Accumulated amortization $ (151,494) $ (122,638)
v3.25.4
Balance Sheet Account Details - Schedule of Estimated Amortization Expense (Details)
$ in Thousands
Dec. 31, 2025
USD ($)
Other Balance Sheet Details [Abstract]  
2026 $ 32,387
2027 32,266
2028 31,660
2029 31,660
2030 $ 30,435
v3.25.4
Balance Sheet Account Details - Schedule of Derivative Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Sep. 18, 2023
Derivative [Line Items]      
Total noncurrent derivative assets $ 15,632 $ 10,583 $ 3,200
Castle Creek Warrant      
Derivative [Line Items]      
Total noncurrent derivative assets 4,989 0  
Orchestra Warrant      
Derivative [Line Items]      
Total noncurrent derivative assets 3,799 0  
Pelthos Conversion Option      
Derivative [Line Items]      
Total noncurrent derivative assets 3,432 0  
Agenus Warrant      
Derivative [Line Items]      
Total noncurrent derivative assets 1,322 806  
LeonaBio Warrants (Series A and Series B)      
Derivative [Line Items]      
Total noncurrent derivative assets 1,461 0  
Arecor Warrant      
Derivative [Line Items]      
Total noncurrent derivative assets 629  
Agenus Partner Programs      
Derivative [Line Items]      
Total noncurrent derivative assets 0 6,326  
Primrose mRNA      
Derivative [Line Items]      
Total noncurrent derivative assets $ 0 $ 3,451  
v3.25.4
Balance Sheet Account Details - Other Investment (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Summary of Investment Holdings    
Total other investments $ 121,451 $ 10,908
AT220 (Tyenne)    
Summary of Investment Holdings    
Total other investments 4,500 4,196
Pelthos loan receivable    
Summary of Investment Holdings    
Total other investments 4,158 0
Preferred Stock    
Summary of Investment Holdings    
Total other investments 106,262 0
Equity Securities | Primrose Bio    
Summary of Investment Holdings    
Total other investments $ 6,531 $ 6,712
v3.25.4
Balance Sheet Account Details - Other Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Property and Equipment, Net $ 3,571 $ 15,133
Right-of-use assets 7,223 9,673
Other 1,788 6,924
Other assets $ 12,582 $ 31,730
v3.25.4
Balance Sheet Account Details - Property and Equipment (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Property, Plant and Equipment    
Property and equipment , gross $ 10,149 $ 23,401
Less: accumulated depreciation and amortization (6,578) (8,268)
Property and equipment, net 3,571 15,133
Lab and office equipment    
Property, Plant and Equipment    
Property and equipment , gross 4,472 6,868
Leasehold improvements    
Property, Plant and Equipment    
Property and equipment , gross 2,518 10,464
Computer equipment and software    
Property, Plant and Equipment    
Property and equipment , gross 608 1,850
Solar equipment    
Property, Plant and Equipment    
Property and equipment , gross 2,551 0
Construction in progress    
Property, Plant and Equipment    
Property and equipment , gross $ 0 $ 4,219
v3.25.4
Balance Sheet Account Details - Accrued Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Other Balance Sheet Details [Abstract]    
Royalties owed to third parties $ 16,202 $ 6,500
Compensation 6,388 5,522
Professional fees 1,997 4,858
Subcontractor 1,756 1,756
Value-added tax 1,753 5,159
Accrued interest 1,307 0
Customer deposit 621 621
Other 1,429 3,490
Total accrued liabilities $ 31,453 $ 27,906
v3.25.4
Balance Sheet Account Details - Contingent Liabilities (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Contingent Liability    
Commercial rights, beginning of period $ 3,681 $ 3,198
Payments (1,320) (200)
Fair Value Adjustment 860 683
Commercial rights, end of period 3,221 3,681
Cydex    
Contingent Liability    
Commercial rights, beginning of period 383 320
Payments (50) (200)
Fair Value Adjustment 62 263
Commercial rights, end of period 395 383
Metabasis    
Contingent Liability    
Commercial rights, beginning of period 3,298 2,878
Payments (1,270) 0
Fair Value Adjustment 798 420
Commercial rights, end of period $ 2,826 $ 3,298
v3.25.4
Balance Sheet Account Details - Other Long-term Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Other Balance Sheet Details [Abstract]    
Pelthos contract liability $ 0 $ 15,938
Unrecognized tax benefits 16,588 14,160
Other long-term liabilities 41 65
Total other long-term liabilities $ 16,629 $ 30,163
v3.25.4
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details)
 1 Months Ended 12 Months Ended
Jan. 31, 2010
cvr
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Assets:      
Pelthos Common Shares   $ 46,500,000  
Derivative asset   15,632,000 $ 10,583,000
Total assets   $ 726,988,000 $ 194,441,000
Derivative Asset Statement Of Financial Position Extensible Enumeration Not Disclosed Flag   Derivative assets(2) Derivative assets(2)
Liabilities:      
Total liabilities   $ 3,221,000 $ 3,681,000
Number of CVR Series | cvr 4    
Transferred over Time | Phase 3 clinical trial      
Liabilities:      
Gross contract asset   $ 10,000,000  
Minimum | Agenus Partnered Program | Discount Rate      
Liabilities:      
Discount rate (as a percent)   0.15  
Maximum | Agenus Partnered Program | Discount Rate      
Liabilities:      
Discount rate (as a percent)   0.28  
Maximum | Transferred over Time | Development, regulatory, & commercial milestones and tiered royalties      
Liabilities:      
Investments   $ 375,000,000  
Metabasis      
Liabilities:      
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    
Short-term investments      
Assets:      
Investments, fair value   558,594,000 183,858,000
Preferred Stock      
Assets:      
Investments, fair value   0  
Contingent liabilities | CyDex      
Liabilities:      
Contingent liabilities   395,000 383,000
Contingent liabilities | Metabasis      
Liabilities:      
Contingent liabilities   2,826,000 3,298,000
(Level 1)      
Assets:      
Pelthos Common Shares   46,500,000  
Derivative asset   0 0
Total assets   336,744,000 122,047,000
Liabilities:      
Total liabilities   0 0
(Level 1) | Short-term investments      
Assets:      
Investments, fair value   183,982,000 122,047,000
(Level 1) | Preferred Stock      
Assets:      
Investments, fair value   106,262,000  
(Level 1) | Contingent liabilities | CyDex      
Liabilities:      
Contingent liabilities   0 0
(Level 1) | Contingent liabilities | Metabasis      
Liabilities:      
Contingent liabilities   0 0
(Level 2)      
Assets:      
Pelthos Common Shares   0  
Derivative asset   10,643,000 806,000
Total assets   385,255,000 62,617,000
Liabilities:      
Total liabilities   2,826,000 3,298,000
(Level 2) | Short-term investments      
Assets:      
Investments, fair value   374,612,000 61,811,000
(Level 2) | Preferred Stock      
Assets:      
Investments, fair value   106,262,000  
(Level 2) | Contingent liabilities | CyDex      
Liabilities:      
Contingent liabilities   0 0
(Level 2) | Contingent liabilities | Metabasis      
Liabilities:      
Contingent liabilities   2,826,000 3,298,000
(Level 3)      
Assets:      
Pelthos Common Shares   0  
Derivative asset   4,989,000 9,777,000
Total assets   4,989,000 9,777,000
Liabilities:      
Total liabilities   395,000 383,000
(Level 3) | Short-term investments      
Assets:      
Investments, fair value   0 0
(Level 3) | Preferred Stock      
Assets:      
Investments, fair value   0  
(Level 3) | Contingent liabilities | CyDex      
Liabilities:      
Contingent liabilities   395,000 383,000
(Level 3) | Contingent liabilities | Metabasis      
Liabilities:      
Contingent liabilities   $ 0 $ 0
v3.25.4
Fair Value Measurements - Reconciliation of Level 3 Financial Instruments (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Assets    
Beginning balance $ 9,777 $ 3,531
Additions to derivative assets 5,787 27,950
Fair value adjustments to derivative assets (798) (12,878)
Exercise of derivative assets   (8,826)
Ending balance $ 4,989 9,777
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income Flag Gain from short-term investments  
Liabilities    
Beginning balance $ 383 320
Payments to CVR holders and other contingent payments (50) (200)
Fair value adjustments to contingent liabilities 62 263
Ending balance $ 395 $ 383
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income Flag Non-Cash Change In Estimated Fair Value Of Contingent Value Rights Non-Cash Change In Estimated Fair Value Of Contingent Value Rights
Cumulative Effect, Period of Adoption, Adjustment    
Assets    
Beginning balance $ (9,777)  
Ending balance   $ (9,777)
v3.25.4
Fair Value Measurements - Narrative (Details) - USD ($)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
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) 13.00% 15.00%  
Discount Rate | Maximum      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis      
Financial royalty assets, measurement input (percent) 35.00% 30.00%  
Discount Rate | Weighted Average      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis      
Financial royalty assets, measurement input (percent) 17.00% 19.00%  
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 $ 294,900,000 196,600,000  
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 $ 219,700,000 $ 195,000,000.0  
v3.25.4
Debt - Narrative (Details)
 1 Months Ended 12 Months Ended
Aug. 14, 2025
USD ($)
position
$ / shares
shares
Oct. 12, 2023
USD ($)
May 15, 2023
USD ($)
Aug. 31, 2025
USD ($)
$ / shares
May 31, 2018
USD ($)
$ / shares
shares
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Sep. 12, 2025
USD ($)
Jul. 08, 2024
USD ($)
Debt Instrument [Line Items]                    
Proceeds from issuance of warrants           $ 67,390,000 $ 0 $ 0    
Repayments of long-term debt           0 $ 0 $ 76,854,000    
Revolving Credit Facility                    
Debt Instrument [Line Items]                    
Maximum borrowing capacity   $ 75,000,000               $ 125,000,000
Debt covenant, minimum consolidated EBITDA                 $ 55,000,000  
Convertible Note Hedge and Warrant                    
Debt Instrument [Line Items]                    
Exercise price of warrants (in USD per share) | $ / shares $ 194.79                  
Initial Purchaser Warrants                    
Debt Instrument [Line Items]                    
Warrants issued in public offering (in shares) | shares 2,361,548                  
Minimum | Revolving Credit Facility                    
Debt Instrument [Line Items]                    
Line of credit facility, interest rate (as a percent)   0.30%                
Minimum | Revolving Credit Facility | Secured Overnight Financing Rate (SOFR)                    
Debt Instrument [Line Items]                    
Interest rate (as a percent)   1.75%                
Minimum | Revolving Credit Facility | Base Rate                    
Debt Instrument [Line Items]                    
Interest rate (as a percent)   0.75%                
Maximum | Revolving Credit Facility                    
Debt Instrument [Line Items]                    
Line of credit facility, interest rate (as a percent)   0.45%                
Maximum | Revolving Credit Facility | Secured Overnight Financing Rate (SOFR)                    
Debt Instrument [Line Items]                    
Interest rate (as a percent)   2.50%                
Maximum | Revolving Credit Facility | Base Rate                    
Debt Instrument [Line Items]                    
Interest rate (as a percent)   1.50%                
Convertible Notes                    
Debt Instrument [Line Items]                    
Repayments of convertible debt $ 113,300,000                  
Line of Credit | Revolving Credit Facility                    
Debt Instrument [Line Items]                    
Available borrowing           124,400,000        
Letters of credit outstanding           600,000        
Convertible Senior Notes due 2030 | Convertible Notes                    
Debt Instrument [Line Items]                    
Interest on debt instrument (as a percent)       0.75%            
Principal amount of 2023 notes outstanding       $ 460,000,000            
Net proceeds from debt issuance       445,100,000            
Proceeds from issuance of warrants       $ 67,400,000            
Debt instrument, convertible, conversion ratio 0.0051338                  
Debt conversion price per share (in USD per share) | $ / shares $ 194.79                  
Debt issuance costs, net           14,900,000        
Effective rate (as a percent) 1.40%                  
Interest expense           2,400,000        
Contractual interest expense           1,300,000        
Amortization issuance costs           $ 1,100,000        
Exercise price of warrants (in USD per share) | $ / shares       $ 294.02            
Convertible Senior Notes due 2030 | Convertible Notes | Debt Instrument, Redemption, Period One                    
Debt Instrument [Line Items]                    
Debt instrument, convertible, threshold percentage of stock price trigger 130.00%                  
Debt instrument, convertible, threshold trading days | position 20                  
Debt instrument, convertible, threshold consecutive trading days | position 30                  
Convertible Senior Notes due 2030 | Convertible Notes | Maximum                    
Debt Instrument [Line Items]                    
Debt instrument, convertible, conversion ratio 0.0068022                  
Debt conversion price per share (in USD per share) | $ / shares $ 147.01                  
Convertible Senior Notes due 2030 - Initial Purchase Option | Convertible Notes                    
Debt Instrument [Line Items]                    
Principal amount of 2023 notes outstanding       $ 60,000,000            
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 conversion price per share (in USD per share) | $ / shares         $ 206.65          
Effective rate (as a percent)               0.50%    
Interest expense               $ 600,000    
Contractual interest expense               400,000    
Amortization issuance costs               $ 200,000    
Exercise price of warrants (in USD per share) | $ / shares         $ 315.38          
Warrants issued in public offering (in shares) | shares         3,018,327          
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              
Payments for convertible bond hedges         $ 140,300,000          
Warrant derivative         $ 90,000,000.0          
v3.25.4
Debt - Convertible Debt Schedule (Details) - Convertible Notes - Convertible Senior Notes due 2030
$ in Thousands
Dec. 31, 2025
USD ($)
Notes Payable, Current and Noncurrent [Abstract]  
Principal amount of the Notes outstanding $ 460,000
Unamortized discount (including unamortized debt issuance cost) (13,808)
Total long-term portion of notes payable 446,192
Fair value of convertible senior notes outstanding (Level 2) $ 539,419
v3.25.4
Leases - Narrative (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Lessee, Lease, Description          
Finance lease assets $ 2,071 $ 2,766      
Weighted-average remaining lease term of operating leases 5 years 6 months 5 years 9 months 18 days      
Weighted-average discount rate of operating leases (as a percent) 6.80% 7.50%      
Operating lease payments $ 1,100 $ 1,300 $ 1,400    
Operating lease expense 900 1,300 1,400    
Sublease income $ 200 $ 100 300    
Weighted-average remaining lease term of finance leases 2 years 4 months 24 days 3 years 3 months 18 days      
Weighted-average discount rate of finance leases (as a percent) 6.60% 6.60%      
Cash paid for amounts included in finance lease liabilities $ 20 $ 20 50    
Finance lease expense $ 700 500 700    
Maximum          
Lessee, Lease, Description          
Remaining lease term of operating leases 7 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 assets $ 2,000 2,700   $ 4,000  
Remaining lease term of finance leases       6 years  
Asset impairment charges $ 0 $ 0 $ 0    
v3.25.4
Leases - Operating and Finance Lease Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Lease assets    
Operating lease assets $ 5,152 $ 6,907
Finance lease assets $ 2,071 $ 2,766
Finance Lease, Right-of-Use Asset, Statement of Financial Position Flag Other Assets, Current Other Assets, Current
Total lease assets $ 7,223 $ 9,673
Current liabilities:    
Current operating lease liabilities 1,095 1,266
Current finance lease liabilities $ 24 $ 24
Finance Lease, Liability, Current, Statement of Financial Position Flag Other current liabilities Other current liabilities
Current lease liabilities $ 1,119 $ 1,290
Noncurrent liabilities:    
Long-term operating lease liabilities 4,204 5,815
Long-term finance lease liabilities $ 26 $ 49
Finance Lease, Liability, Noncurrent, Statement of Financial Position Flag Other Liabilities, Noncurrent Other Liabilities, Noncurrent
Total lease liabilities $ 5,349 $ 7,154
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Other Assets, Noncurrent Other Assets, Noncurrent
v3.25.4
Leases - Maturities of Operating and Finance Lease Liabilities (Details)
$ in Thousands
Dec. 31, 2025
USD ($)
Operating Leases  
2026 $ 1,142
2027 1,214
2028 1,124
2029 886
2030 836
Thereafter 1,249
Total lease payments 6,451
Less tenant improvement allowance 0
Less imputed interest (1,150)
Present value of lease liabilities 5,301
Finance Leases  
2026 27
2027 18
2028 9
2029 2
2030 0
Thereafter 0
Total lease payments 56
Less tenant improvement allowance 0
Less imputed interest (6)
Present value of lease liabilities $ 50
v3.25.4
Stockholders' Equity - Share-Based Compensation (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award      
Share-based compensation expense $ 46,849 $ 41,089 $ 25,743
Research and development expenses      
Share-based Compensation Arrangement by Share-based Payment Award      
Share-based compensation expense 4,287 3,544 6,248
General and administrative expenses      
Share-based Compensation Arrangement by Share-based Payment Award      
Share-based compensation expense $ 42,562 $ 37,545 $ 19,495
v3.25.4
Stockholders' Equity - Narrative (Details) - USD ($)
 1 Months Ended 12 Months Ended
Aug. 14, 2025
Jun. 30, 2024
Jun. 30, 2022
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
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)       $ 47.17 $ 37.81 $ 36.65      
Intrinsic value of options exercised       $ 44,600,000 $ 38,600,000 $ 12,000,000.0      
Corporate Share Repurchase                  
Stock repurchase program, authorized amount             $ 50,000,000    
Repurchase of common stock       $ 15,000,000 0 0      
Common Stock                  
Corporate Share Repurchase                  
Repurchase of common stock $ 15,000,000                
Stock repurchased during period (in shares) 102,034                
Shares acquired, average cost (in dollars per share) $ 147.01                
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       47,100,000 $ 65,200,000 $ 22,200,000      
2002 Stock Incentive Plan                  
Share-based Compensation Arrangement by Share-based Payment Award                  
Number of shares authorized (in shares)                 300,000
Unrecognized compensation cost       $ 36,100,000          
Weighted-average period in which cost is expected to be recognized (in years)       2 years 2 months 12 days          
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)       900,000          
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 3 months 18 days          
Unrecognized compensation cost, restricted stock       $ 22,400,000          
Amended ESPP                  
Share-based Compensation Arrangement by Share-based Payment Award                  
Shares available for future option grants (in shares)       19,657          
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)       4,836 6,308 5,080      
v3.25.4
Stockholders' Equity - Stock Option Plan Activity (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Shares        
Balance at beginning of period (in shares) 2,226,273 2,640,458 2,991,473  
Granted (in shares) 468,876 783,064 537,432  
Exercised (in shares) (635,820) (1,080,135) (489,076)  
Forfeited (in shares) (58,318) (117,114) (399,371)  
Balance at end of period (in shares) 2,001,011 2,226,273 2,640,458 2,991,473
Exercisable at end of period (in shares) 1,070,597 1,229,294 1,784,209  
Options vested and expected to vest at end of period (in shares) 2,001,011 2,226,273 2,640,458  
Weighted Average Exercise Price        
Balance at beginning of period (in USD per share) $ 75.14 $ 65.70 $ 61.31  
Granted (in USD per share) 114.59 86.91 72.69  
Exercised (in USD per share) 74.04 60.64 45.83  
Forfeited (in USD per share) 83.99 74.58 66.61  
Balance at end of period (in USD per share) 84.48 75.14 65.70 $ 61.31
Exercisable at end of period (in USD per share) 75.32 72.15 64.90  
Options vested and expected to vest at end of period (in USD per share) $ 84.48 $ 75.14 $ 65.70  
Weighted Average Remaining Contractual Term in Years 7 years 4 months 20 days 6 years 6 months 29 days 5 years 7 months 17 days 6 years 25 days
Weighted average remaining contractual term, exercisable (in years) 6 years 5 months 19 days 5 years 7 days 4 years 3 months 3 days  
Weighted average remaining contractual term, vested and expected to vest (in years) 7 years 4 months 20 days 6 years 6 months 29 days 5 years 7 months 17 days  
Aggregate Intrinsic Value (In thousands) $ 209,288 $ 71,538 $ 8,784 $ 30,477
Aggregate intrinsic value, exercisable 121,777 43,120 7,300  
Aggregate intrinsic value, vested and expected to vest $ 209,288 $ 71,538 $ 8,784  
v3.25.4
Stockholders' Equity - Breakdown of Options Outstanding (Details)
 12 Months Ended
Dec. 31, 2025
$ / shares
shares
Share-based Compensation Arrangement by Share-based Payment Award  
Options outstanding (in shares) | shares 2,001,011
Weighted average remaining life in years 7 years 4 months 20 days
Weighted average exercise price (in USD per share) $ 84.48
Options exercisable (in shares) | shares 1,070,597
Weighted average exercise price (in USD per share) $ 75.32
$39.79-$55.75  
Share-based Compensation Arrangement by Share-based Payment Award  
Lower range of exercise prices (in USD per share) 39.79
Upper range of exercise prices (in USD per share) $ 55.75
Options outstanding (in shares) | shares 213,920
Weighted average remaining life in years 5 years 9 months 10 days
Weighted average exercise price (in USD per share) $ 51.04
Options exercisable (in shares) | shares 194,031
Weighted average exercise price (in USD per share) $ 50.88
$55.98-$67.03  
Share-based Compensation Arrangement by Share-based Payment Award  
Lower range of exercise prices (in USD per share) 55.98
Upper range of exercise prices (in USD per share) $ 67.03
Options outstanding (in shares) | shares 204,845
Weighted average remaining life in years 6 years 2 months 23 days
Weighted average exercise price (in USD per share) $ 64.38
Options exercisable (in shares) | shares 149,821
Weighted average exercise price (in USD per share) $ 64.37
$67.24-$69.70  
Share-based Compensation Arrangement by Share-based Payment Award  
Lower range of exercise prices (in USD per share) 67.24
Upper range of exercise prices (in USD per share) $ 69.70
Options outstanding (in shares) | shares 215,407
Weighted average remaining life in years 5 years 6 months 18 days
Weighted average exercise price (in USD per share) $ 69.22
Options exercisable (in shares) | shares 182,407
Weighted average exercise price (in USD per share) $ 69.14
$70.04-$75.09  
Share-based Compensation Arrangement by Share-based Payment Award  
Lower range of exercise prices (in USD per share) 70.04
Upper range of exercise prices (in USD per share) $ 75.09
Options outstanding (in shares) | shares 301,023
Weighted average remaining life in years 7 years 5 months 19 days
Weighted average exercise price (in USD per share) $ 74.23
Options exercisable (in shares) | shares 171,605
Weighted average exercise price (in USD per share) $ 74.34
$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 128,209
Weighted average remaining life in years 8 years 2 months 26 days
Weighted average exercise price (in USD per share) $ 82.20
Options exercisable (in shares) | shares 73,576
Weighted average exercise price (in USD per share) $ 81.26
$89.20-$89.20  
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 352,850
Weighted average remaining life in years 8 years 1 month 28 days
Weighted average exercise price (in USD per share) $ 89.20
Options exercisable (in shares) | shares 131,697
Weighted average exercise price (in USD per share) $ 89.20
89.86  
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) $ 114.76
Options outstanding (in shares) | shares 175,215
Weighted average remaining life in years 6 years 5 months 12 days
Weighted average exercise price (in USD per share) $ 103.79
Options exercisable (in shares) | shares 99,224
Weighted average exercise price (in USD per share) $ 102.26
$115.26-$115.26  
Share-based Compensation Arrangement by Share-based Payment Award  
Lower range of exercise prices (in USD per share) 115.26
Upper range of exercise prices (in USD per share) $ 115.26
Options outstanding (in shares) | shares 387,782
Weighted average remaining life in years 9 years 2 months 1 day
Weighted average exercise price (in USD per share) $ 115.26
Options exercisable (in shares) | shares 65,670
Weighted average exercise price (in USD per share) $ 115.26
$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 8 years 11 months 1 day
Weighted average exercise price (in USD per share) $ 122.70
Options exercisable (in shares) | shares 2,566
Weighted average exercise price (in USD per share) $ 122.70
$132.72-$132.72  
Share-based Compensation Arrangement by Share-based Payment Award  
Lower range of exercise prices (in USD per share) 132.72
Upper range of exercise prices (in USD per share) $ 132.72
Options outstanding (in shares) | shares 11,500
Weighted average remaining life in years 9 years 6 months 29 days
Weighted average exercise price (in USD per share) $ 132.72
Options exercisable (in shares) | shares 0
Weighted average exercise price (in USD per share) $ 0
v3.25.4
Stockholders' Equity - Assumptions (Details)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Minimum      
Share-based Compensation Arrangement by Share-based Payment Award      
Risk-free interest rate (as a percent) 3.70% 3.50% 3.70%
Expected volatility (as a percent) 40.00% 44.00% 45.00%
Expected term (in years) 4 years 4 years 1 month 6 days 4 years 8 months 12 days
Maximum      
Share-based Compensation Arrangement by Share-based Payment Award      
Risk-free interest rate (as a percent) 4.30% 4.50% 4.60%
Expected volatility (as a percent) 46.00% 46.00% 54.00%
Expected term (in years) 4 years 10 months 24 days 4 years 9 months 18 days 5 years 3 months 18 days
v3.25.4
Stockholders' Equity - Restricted Stock Activity (Details) - Restricted stock - $ / shares
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Shares    
Outstanding at beginning of period (in shares) 437,872 350,905
Granted (in shares) 231,761 318,588
Vested (in shares) (208,153) (167,308)
Forfeited (in shares) (5,933) (64,313)
Outstanding at end of period (in shares) 455,547 437,872
Weighted-Average Grant Date Fair Value    
Outstanding at beginning of period (in USD per share) $ 83.55 $ 81.22
Granted (in USD per share) 106.95 85.23
Vested (in USD per share) 75.97 84.28
Forfeited (in USD per share) 87.97 77.28
Outstanding at end of period (in USD per share) $ 98.86 $ 83.55
v3.25.4
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
v3.25.4
Income Taxes - Income Before Income Tax From Continuing Operations (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]      
Domestic $ 126,428 $ (25,855) $ 62,140
Foreign 32,532 28,373 1,520
Income before income tax from continuing operations $ 158,960 $ 2,518 $ 63,660
v3.25.4
Income Taxes - Components of Income Tax Expense (Benefit) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Current expense (benefit):      
Federal $ 8,725 $ 18,277 $ (1,186)
State 280 718 218
Foreign 3,612 3,355 780
Total current expense (benefit) 12,617 22,350 (188)
Deferred expense (benefit):      
Federal 27,538 (17,767) 9,374
State 574 77 655
Foreign (6,222) 1,890 0
Total deferred expense (benefit) 21,890 (15,800) 10,029
Total income tax expense (benefit) $ 34,507 $ 6,550 $ 9,841
v3.25.4
Income Taxes - Reconciliation of Income Tax Expense (Benefit) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Amount      
Income taxes expense at statutory federal rate $ 33,457 $ 529 $ 13,448
State and local taxes, net of federal income tax effect 646    
Foreign tax effects   1,115 (38)
Other   259 876
Changes in valuation allowance 3,683 (1,638) (1,184)
Section 162(m) officer’s compensation 5,468    
Effect of cross-border tax laws      
Subpart F, net 6,063 5,649 479
Tax credits      
Foreign tax credits (1,115) (3,232) 0
Solar tax credit (650)    
R&D credit (134) (324) (405)
Nontaxable or nondeductible items      
Section 162(m) officer’s compensation   602 1,241
Equity compensation (4,373) 3,921 844
Permanent Items - Other (137)    
Changes in unrecognized tax benefits (4)    
Provision to return adjustments   293 2,200
Rate change for changes in federal, foreign or state law   111 342
Contingent liabilities   88 (116)
Change in uncertain tax positions   94 (7,206)
State, net of federal benefit   (85) 397
FDII (314) (832) (1,037)
Total income tax expense (benefit) $ 34,507 $ 6,550 $ 9,841
Percent      
Income taxes expense at statutory federal rate 21.00%    
State and local taxes, net of federal income tax effect 0.41%    
Changes in valuation allowance 2.31%    
Effect of cross-border tax laws      
Subpart F, net 3.81%    
Foreign derived intangible income (0.20%)    
Tax credits      
Foreign tax credits (0.70%)    
Solar tax credit (0.41%)    
R&D credit (0.08%)    
Nontaxable or nondeductible items      
Section 162(m) officer’s compensation 3.43%    
Equity compensation (2.74%)    
Permanent Items - Other (0.09%)    
Changes in unrecognized tax benefits 0.00%    
Provision for income taxes 21.66%    
UNITED KINGDOM      
Amount      
Other $ 390    
Changes in valuation allowance $ (9,389)    
Percent      
Other 0.24%    
Changes in valuation allowance (5.89%)    
AUSTRIA      
Amount      
Other $ (518)    
Percent      
Other (0.33%)    
INDIA      
Amount      
Withholding Tax $ 1,115    
Percent      
Withholding Tax 0.70%    
UNITED STATES      
Amount      
Other $ 319    
Percent      
Other 0.20%    
v3.25.4
Income Taxes - Cash Taxes Paid (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
USD ($)
Income Tax Disclosure [Abstract]  
Federal $ 3,660
State 204
Foreign 3,938
Income taxes, net of amounts refunded $ 7,802
v3.25.4
Income Taxes - Deferred Taxes (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Deferred tax assets:    
Net operating loss carryforwards $ 32,514 $ 40,385
2030 Notes original issue discount 22,814 0
Research credit carryforwards 19,223 24,404
Stock compensation 11,570 10,726
Financial royalty assets 12,879 0
Capitalized R&D 0 7,090
Other 7,775 13,733
Deferred tax assets 106,775 96,338
Valuation allowance for deferred tax assets (48,331) (55,649)
Net deferred tax assets 58,444 40,689
Deferred tax liabilities:    
Identified intangibles (45,781) (69,150)
Mark-to-market (38,226) 0
Other (2,111) (3,991)
Net deferred tax liabilities (86,118) (73,141)
Deferred income taxes, net $ (27,674) $ (32,452)
v3.25.4
Income Taxes - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Operating Loss Carryforwards      
Decrease in valuation allowance $ 7.3 $ 1.6 $ 1.2
Unrecognized tax benefits that would impact effective tax rate 20.6    
Research Tax Credit Carryforward      
Operating Loss Carryforwards      
Tax credit carryforward   6.2  
Internal Revenue Service (IRS)      
Operating Loss Carryforwards      
Operating loss carryforward 4.3 21.4  
State and Local Jurisdiction      
Operating Loss Carryforwards      
Operating loss carryforward 162.1 162.8  
State and Local Jurisdiction | California and New Jersey Research Tax Credit Carryforward      
Operating Loss Carryforwards      
Tax credit carryforward 24.3 29.5  
Foreign      
Operating Loss Carryforwards      
Operating loss carryforward 81.1 98.4  
Foreign | Capital Loss Carryforward      
Operating Loss Carryforwards      
Tax credit carryforward $ 14.5 $ 14.4  
v3.25.4
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Unrecognized Tax Benefits      
Balance at beginning of year $ 22,471 $ 22,363 $ 29,096
Additions based on tax positions related to the current year 5,342 27 47
Additions for tax positions of prior years 192 477 3
Reductions for tax positions of prior years (361) (396) (6,783)
Balance at end of year $ 27,644 $ 22,471 $ 22,363