HALOZYME THERAPEUTICS, INC., 10-K filed on 2/17/2026
Annual Report
v3.25.4
Cover - USD ($)
shares in Thousands, $ in Billions
 12 Months Ended
Dec. 31, 2025
Feb. 10, 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 001-32335    
Entity Registrant Name HALOZYME THERAPEUTICS, INC.    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 88-0488686    
Entity Address, Address Line One 12390 El Camino Real    
Entity Address, City or Town San Diego    
Entity Address, State or Province CA    
Entity Address, Postal Zip Code 92130    
City Area Code 858    
Local Phone Number 794-8889    
Title of 12(b) Security Common Stock, $0.001 Par Value    
Trading Symbol HALO    
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     $ 4.5
Entity Common Stock, Shares Outstanding   118,017  
Entity Central Index Key 0001159036    
Amendment Flag false    
Document Fiscal Year Focus 2025    
Document Fiscal Period Focus FY    
v3.25.4
Audit Information
 12 Months Ended
Dec. 31, 2025
Auditor 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 $ 133,820 $ 115,850
Marketable securities, available-for-sale 9,000 480,224
Accounts receivable, net and contract assets 441,273 308,455
Inventories 176,475 141,860
Prepaid expenses and other current assets 64,639 38,951
Total current assets 825,207 1,085,340
Property and equipment, net 82,137 75,035
Prepaid expenses and other assets 53,551 80,596
Goodwill 580,360 416,821
Intangible assets, net 981,467 401,830
Deferred tax assets, net 0 3,855
Restricted cash 2,601 0
Total assets 2,525,323 2,063,477
Current liabilities    
Accounts payable 20,899 10,249
Accrued expenses 156,193 128,851
Total current liabilities 177,092 139,100
Long-term debt, net 2,142,630 1,505,798
Other long-term liabilities 113,863 54,758
Deferred tax liabilities, net 42,924 0
Total liabilities 2,476,509 1,699,656
Commitments and contingencies (Note 11)
Stockholders’ equity    
Preferred stock - $0.001 par value; 20,000 shares authorized; no shares issued and outstanding 0 0
Common stock - $0.001 par value; 300,000 shares authorized; 117,782 and 123,138 shares issued and outstanding as of December 31, 2025 and 2024, respectively 118 123
Additional paid-in capital 12,002 0
Accumulated other comprehensive (loss) income (18,092) 3,829
Retained earnings 54,786 359,869
Total stockholders’ equity 48,814 363,821
Total liabilities and stockholders’ equity $ 2,525,323 $ 2,063,477
v3.25.4
Consolidated Balance Sheets (Parenthetical) - $ / shares
Dec. 31, 2025
Dec. 31, 2024
Statement of Financial Position [Abstract]    
Preferred stock, par value (usd per share) $ 0.001 $ 0.001
Preferred stock authorized (in shares) 20,000,000 20,000,000
Preferred stock issued (in shares) 0 0
Preferred stock outstanding (in shares) 0 0
Common stock, par value (usd per share) $ 0.001 $ 0.001
Common stock authorized (in shares) 300,000,000 300,000,000
Common stock issued (in shares) 117,782,000 123,138,000
Common stock outstanding (in shares) 117,782,000 123,138,000
v3.25.4
Consolidated Statements of Income - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Revenues      
Total revenues $ 1,396,611 $ 1,015,324 $ 829,253
Operating expenses      
Cost of sales 228,774 159,417 192,361
Amortization of intangibles 76,662 71,049 73,773
Research and development 81,490 79,048 76,363
Selling, general and administrative 207,092 154,335 149,182
Impairment of intangible asset 48,700 0 0
Acquired in-process research and development expense 284,887 0 0
Total operating expenses 927,605 463,849 491,679
Operating income 469,006 551,475 337,574
Other income (expense)      
Investment and other income, net 21,472 23,752 16,317
Inducement expense related to convertible notes (5,477) 0 0
Contingent liability fair value measurement gain 0 0 13,200
Interest expense (18,126) (18,095) (18,762)
Income before income tax expense 466,875 557,132 348,329
Income tax expense 149,986 113,041 66,735
Net income $ 316,889 $ 444,091 $ 281,594
Earnings per share      
Basic (usd per share) $ 2.64 $ 3.50 $ 2.13
Diluted (usd per share) $ 2.56 $ 3.43 $ 2.10
Weighted average common shares outstanding      
Basic (in shares) 119,840 126,827 131,927
Diluted (in shares) 123,904 129,424 134,197
Royalties      
Revenues      
Total revenues $ 867,840 $ 570,991 $ 447,865
Product sales, net      
Revenues      
Total revenues 376,444 303,492 300,854
Revenues under collaborative agreements      
Revenues      
Total revenues $ 152,327 $ 140,841 $ 80,534
v3.25.4
Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Statement of Comprehensive Income [Abstract]      
Net income $ 316,889 $ 444,091 $ 281,594
Other comprehensive income      
Unrealized gain (loss) on marketable securities, net 202 (358) 1,097
Foreign currency translation adjustment 15 (4) 24
Unrealized gain on foreign currency 0 0 3
Unrealized (loss) gain on derivative instruments, net (28,640) 14,693 (9,406)
Realized loss (gain) on derivative instruments, net 6,502 (1,224) (74)
Comprehensive income $ 294,968 $ 457,198 $ 273,238
v3.25.4
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Operating activities      
Net income $ 316,889 $ 444,091 $ 281,594
Adjustments to reconcile net income to net cash provided by operating activities:      
Share-based compensation 51,565 43,385 36,620
Depreciation and amortization 11,389 10,263 11,083
Amortization of intangible assets 76,662 71,049 73,773
Amortization of debt discount 7,506 7,350 7,304
Accretion of premium on marketable securities, net (3,296) (10,918) (6,319)
Realized gain on marketable securities (171) (7) 0
Loss on disposal of equipment 2,621 1,529 611
Contingent liability fair value measurement adjustment 0 0 (13,200)
Lease payments recognized (deferred) 951 1,067 1,270
Induced conversion expense related to 2027 and 2028 Convertible Notes 5,477 0 0
Deferred income taxes 634 532 34,506
Acquired in-process research and development expense 284,887 0 0
Impairment of intangible asset 48,700 0 0
Changes in operating assets and liabilities      
Accounts receivable, net and other contract assets (128,063) (74,245) (3,339)
Inventories 2,554 (67,381) (26,884)
Prepaid expenses and other assets (32,958) 5,356 4,098
Accounts payable and accrued expenses 6,211 46,993 (12,546)
Net cash provided by operating activities 651,558 479,064 388,571
Investing activities      
Purchases of marketable securities (247,355) (647,601) (292,911)
Proceeds from sales and maturities of marketable securities 722,248 395,574 211,296
Acquisition of business, net of cash acquired (725,965) 0 0
Acquisition of in-process research and development, net of cash acquired (287,771) 0 0
Purchases of property and equipment (6,970) (10,696) (15,294)
Net cash used in investing activities (545,813) (262,723) (96,909)
Financing activities      
Payment for the induced conversion of 2027 and 2028 Convertible Notes (5,477) 0 0
Payment of debt issuance cost (4,938) 0 0
Repurchase of common stock (342,372) (250,000) (402,383)
Proceeds from issuance of common stock under equity incentive plans, net of taxes paid related to net share settlement 21,829 31,139 7,879
Net cash used in financing activities (85,174) (218,861) (407,987)
Net increase (decrease) in cash, cash equivalents and restricted cash 20,571 (2,520) (116,325)
Cash, cash equivalents and restricted cash at beginning of period 115,850 118,370 234,695
Cash, cash equivalents and restricted cash at end of period 136,421 115,850 118,370
Reconciliation of cash, cash equivalents and restricted cash to the consolidated balance sheets      
Cash and cash equivalents 133,820 115,850 118,370
Restricted cash 2,601 0 0
Total cash, cash equivalents and restricted cash 136,421 115,850 118,370
Supplemental disclosure of cash flow information      
Interest paid 11,429 10,565 11,410
Income taxes paid, net 134,641 80,618 31,756
Supplemental disclosure of non-cash investing and financing activities      
Amounts accrued for purchases of property and equipment 902 280 25
Right-of-use assets obtained in exchange for lease obligation 410 3,078 2,572
Common stock issued for conversion of 2024 Convertible Notes 0 0 125
2024 Convertible Notes      
Financing activities      
Repayments of Convertible Notes 0 0 (13,483)
2027 Convertible Notes      
Financing activities      
Repayments of Convertible Notes (595,425) 0 0
Premium on repayment of Convertible Notes settled in cash (78,132) 0 0
2028 Convertible Notes      
Financing activities      
Repayments of Convertible Notes (250,001) 0 0
Premium on repayment of Convertible Notes settled in cash (89,833) 0 0
2031 Convertible Notes      
Financing activities      
Proceeds from Convertible Debt 735,000 0 0
Purchase of capped calls on 2031 Convertible Notes (104,025) 0 0
2032 Convertible Notes      
Financing activities      
Proceeds from Convertible Debt 735,000 0 0
Purchase of capped calls on 2031 Convertible Notes $ (106,800) $ 0 $ 0
v3.25.4
Consolidated Statements of Stockholders' Equity - USD ($)
shares in Thousands, $ in Thousands
Total
2031 Convertible Notes
2032 Convertible Notes
2027 Convertible Notes
2028 Convertible Notes
Common Stock
Additional Paid-In Capital
Additional Paid-In Capital
2027 Convertible Notes
Additional Paid-In Capital
2028 Convertible Notes
Accumulated Other Comprehensive Income (Loss)
Retained Earnings
Retained Earnings
2031 Convertible Notes
Retained Earnings
2032 Convertible Notes
Retained Earnings
2027 Convertible Notes
Retained Earnings
2028 Convertible Notes
Beginning Balance, shares outstanding (in shares) at Dec. 31, 2022           135,154                  
Beginning Balance at Dec. 31, 2022 $ 169,798         $ 135 $ 27,368     $ (922) $ 143,217        
Increase (Decrease) in Stockholders' Equity [Roll Forward]                              
Share-based compensation expense 36,620           36,620                
Issuance of common stock for the induced conversion of 2024 Convertible Notes (in shares)           289                  
Issuance of common stock for the induced conversion of 2024 Convertible Notes (126)           (126)                
Issuance of common stock pursuant to exercise of stock options and vesting of restricted stock and performance stock units, net and shares issued under the ESPP plan (in shares)           945                  
Issuance of common stock pursuant to exercise of stock options and vesting of restricted stock and performance stock units, net and shares issued under the ESPP plan 7,879         $ 2 7,877                
Repurchase of common stock (in shares)           (9,618)                  
Repurchase of common stock (403,601)         $ (10) (69,330)       (334,261)        
Other comprehensive (loss) income (8,356)                 (8,356)          
Net income 281,594                   281,594        
Ending Balance, shares outstanding (in shares) at Dec. 31, 2023           126,770                  
Ending Balance at Dec. 31, 2023 83,808         $ 127 2,409     (9,278) 90,550        
Increase (Decrease) in Stockholders' Equity [Roll Forward]                              
Share-based compensation expense 43,385           43,385                
Issuance of common stock pursuant to exercise of stock options and vesting of restricted stock and performance stock units, net and shares issued under the ESPP plan (in shares)           1,615                  
Issuance of common stock pursuant to exercise of stock options and vesting of restricted stock and performance stock units, net and shares issued under the ESPP plan 31,139         $ 1 31,138                
Repurchase of common stock (in shares)           (5,247)                  
Repurchase of common stock (251,709)         $ (5) (76,932)       (174,772)        
Other comprehensive (loss) income 13,107                 13,107          
Net income 444,091                   444,091        
Ending Balance, shares outstanding (in shares) at Dec. 31, 2024           123,138                  
Ending Balance at Dec. 31, 2024 363,821         $ 123 0     3,829 359,869        
Increase (Decrease) in Stockholders' Equity [Roll Forward]                              
Share-based compensation expense 51,565           51,565                
Issuance of common stock pursuant to exercise of stock options and vesting of restricted stock and performance stock units, net and shares issued under the ESPP plan (in shares)           1,640                  
Issuance of common stock pursuant to exercise of stock options and vesting of restricted stock and performance stock units, net and shares issued under the ESPP plan 21,829         $ 2 21,827                
Purchase of 2031 and 2032 capped call transactions, net   $ (80,930) $ (83,089)                 $ (80,930) $ (83,089)    
Premium on repayment Convertible Notes settled in cash and acceleration of debt discount       $ (81,564) $ (92,975)     $ (3,432) $ (29,357)         $ (78,132) $ (63,618)
Repurchase of common stock (in shares)           (6,996)                  
Repurchase of common stock (344,811)         $ (7) (28,601)       (316,203)        
Other comprehensive (loss) income (21,921)                 (21,921)          
Net income 316,889                   316,889        
Ending Balance, shares outstanding (in shares) at Dec. 31, 2025           117,782                  
Ending Balance at Dec. 31, 2025 $ 48,814         $ 118 $ 12,002     $ (18,092) $ 54,786        
v3.25.4
Organization and Business
 12 Months Ended
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization and Business Organization and Business
Halozyme Therapeutics, Inc. is a biopharmaceutical company advancing disruptive solutions to improve patient experiences and outcomes for emerging and established therapies.
As the innovators of ENHANZE® drug delivery technology (“ENHANZE”) with our proprietary enzyme, rHuPH20, our commercially validated solution is used to facilitate the subcutaneous (“SC”) delivery of injected drugs and fluids, with the goal of improving the patient experience with rapid SC delivery and reduced treatment burden. We license our technology to biopharmaceutical companies to collaboratively develop products that combine ENHANZE with our partners’ proprietary compounds. We are also developing partner products with Hypercon™ drug delivery technology (“Hypercon technology”) and developing Surf Bio’s drug delivery technology to expand the breadth of our drug delivery technology portfolio. Hypercon technology is an innovative microparticle technology that we expect will set a new standard in hyperconcentration of drugs and biologics by reducing the injection volume for the same dosage and expanding opportunities for at-home and health care provider administration. The Surf Bio hyperconcentration technology is being developed to create high antibody and biologic concentrations of up to 500 mg/mL, for delivery in a single auto-injector shot for at-home or in a health care provider’s office use. We also develop, manufacture and commercialize, for ourselves or with our partners, drug-device combination products using our advanced auto-injector technologies that are designed to provide commercial or functional advantages such as improved convenience, reliability and tolerability, and enhanced patient comfort and adherence.
Our ENHANZE partners’ approved products and product candidates are based on rHuPH20, our patented recombinant human hyaluronidase enzyme. rHuPH20 works by breaking down hyaluronan, a naturally occurring carbohydrate that is a major component of the extracellular matrix of the SC space. This temporarily reduces the barrier to bulk fluid flow allowing for improved and more rapid SC delivery of high dose, high volume injectable biologics, such as monoclonal antibodies and other large therapeutic molecules, as well as small molecules and fluids. We refer to the application of rHuPH20 to facilitate the delivery of other drugs or fluids as ENHANZE. We license our ENHANZE technology to form collaborations with biopharmaceutical companies that develop and/or market drugs requiring or benefiting from injection via the SC route of administration. In the development of proprietary intravenous (“IV”) drugs combined with our ENHANZE technology, data have been generated supporting the potential for ENHANZE to reduce patient treatment burden, as a result of shorter duration of SC administration with ENHANZE compared to IV administration. ENHANZE may enable fixed-dose SC dosing compared to weight-based dosing typically required for IV administration, extend the dosing interval for drugs that are already administered subcutaneously and potentially allow for lower rates of infusion-related reactions. ENHANZE may enable more flexible treatment options such as home administration by a healthcare professional or potentially the patient or caregiver. Lastly, certain proprietary drugs co-formulated with ENHANZE have been granted additional exclusivity, extending the patent life of the product beyond the patent expiry of the proprietary IV drug.
We currently have ENHANZE collaborations and licensing agreements with F. Hoffmann-La Roche, Ltd. and Hoffmann-La Roche, Inc. (“Roche”), Takeda Pharmaceuticals International AG and Baxalta US Inc. (“Takeda”), Pfizer Inc. (“Pfizer”), Janssen Biotech, Inc. (“Janssen”), AbbVie, Inc. (“AbbVie”), Eli Lilly and Company (“Lilly”), Bristol-Myers Squibb Company (“BMS”), argenx BVBA (“argenx”), ViiV Healthcare (the global specialist HIV Company majority owned by GlaxoSmithKline) (“ViiV”), Chugai Pharmaceutical Co., Ltd. (“Chugai”), Acumen Pharmaceuticals, Inc. (“Acumen”), Merus N.V. (“Merus”) and Skye Bioscience, Inc. (“Skye Bioscience”). In addition to receiving upfront licensing fees from our ENHANZE collaborations, we are entitled to receive event and sales-based milestone payments, revenues from the sale of bulk rHuPH20 and royalties from commercial sales of approved partner products co-formulated with ENHANZE. We currently earn royalties from the sales of ten commercial products including sales of five commercial products from the Roche collaboration, two commercial products from the Janssen collaboration and one commercial product from each of the Takeda, argenx and BMS collaborations.
Through our recent acquisition of Elektrofi, Inc. (“Elektrofi”), subsequently renamed Halozyme Hypercon, Inc. (“Hypercon”), we have Hypercon collaboration and license agreements with Janssen, Lilly, and argenx. In addition to receiving upfront license fees from our Hypercon collaborations, we are entitled to receive event and sales-based milestone payments and royalties from commercial sales for approved partner products co-formulated with Hypercon.
We have commercialized auto-injector products with Teva Pharmaceutical Industries, Ltd. (“Teva”). We have development programs including our auto-injectors with McDermott Laboratories Limited, an affiliate of Viatris Inc. (“Viatris”).
Our commercial portfolio of proprietary products includes Hylenex®, utilizing rHuPH20, and XYOSTED®, utilizing our auto-injector technology.
Except where specifically noted or the context otherwise requires, references to “Halozyme,” “the Company,” “we,” “our,” and “us” in these notes to our consolidated financial statements refer to Halozyme Therapeutics, Inc. and each of its directly and indirectly wholly owned subsidiaries as disclosed in Note 2, Summary of Significant Accounting Policies.
v3.25.4
Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
Basis of Presentation
The consolidated financial statements include the accounts of Halozyme Therapeutics, Inc. and our wholly owned subsidiaries, Halozyme, Inc., Antares Pharma, Inc., Antares Pharma, Inc.’s two wholly owned Swiss subsidiaries, Antares Pharma IPL AG and Antares Pharma GmbH, Halozyme Hypercon, Inc., Halozyme Hypercon Inc.’s wholly-owned subsidiary, Elektrofi Security Corp., and Halozyme Surf Bio, Inc. All intercompany accounts and transactions have been eliminated.
Use of Estimates
The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires us to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and accompanying notes. On an ongoing basis, we evaluate our estimates and judgments, which are based on historical and anticipated results and trends and on various other assumptions that we believe to be reasonable under the circumstances. By their nature, estimates are subject to an inherent degree of uncertainty and, as such, actual results may differ from our estimates.
Cash Equivalents and Marketable Securities
Cash equivalents consist of highly liquid investments, readily convertible to cash, which mature within 90 days or less from the date of purchase. As of December 31, 2025, our cash and cash equivalents consisted of money market funds, bank certificate of deposits and demand deposits at commercial banks.
Marketable securities are investments with original maturities of more than 90 days from the date of purchase that are specifically identified to fund current operations. Marketable securities are considered available-for-sale. These investments are classified as current assets, even though the stated maturity date may be one year or more beyond the current balance sheet date which reflects management’s intention to use the proceeds from the sale of these investments to fund our operations, as necessary. Such available-for-sale investments are carried at fair value with unrealized gains and losses recorded in other comprehensive income and included as a separate component of stockholders’ equity. The cost of marketable securities is adjusted for amortization of premiums or accretion of discounts to maturity, and such amortization or accretion is included in investment and other income, net in our consolidated statements of income. We use the specific identification method for calculating realized gains and losses on marketable securities sold. None of the realized gains and losses and declines in value that were judged to be as a result of credit loss on marketable securities, if any, are included in investment and other income, net in our consolidated statements of income.
Restricted Cash
Under the terms of the leases of our facilities and other agreements, we are required to maintain letters of credit as security deposits during the terms of such leases. At December 31, 2025, restricted cash of $2.6 million was pledged as collateral for the letters of credit and other agreements.
Fair Value of Financial Instruments
The authoritative guidance for fair value measurements establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.
Our financial instruments include cash equivalents, available-for-sale marketable securities, accounts receivable, prepaid expenses and other assets, accounts payable, accrued expenses, long-term debt and contingent liability. Fair value estimates of these instruments are made at a specific point in time based on relevant market information. These estimates may be subjective in nature and involve uncertainties and matters of significant judgment and therefore, cannot be determined with precision. The carrying amount of cash equivalents, accounts receivable, prepaid expenses and other assets, accounts payable and accrued expenses are generally considered to be representative of their respective fair values because of the short-term nature of those instruments.
As of December 31, 2025, our available-for-sale marketable securities consisted of U.S. Treasury securities, and were measured at fair value using Level 1. Level 2 financial instruments are valued using market prices on less active markets and proprietary pricing valuation models with observable inputs, including interest rates, yield curves, maturity dates, issue dates, settlement dates, reported trades, broker-dealer quotes, issue spreads, benchmark securities or other market related data. We obtain the fair value of Level 2 investments from our investment manager, who obtains these fair values from a third-party pricing source. We validate the fair values of Level 2 financial instruments provided by our investment manager by comparing these fair values to a third-party pricing source.
Concentrations of Credit Risk, Sources of Supply and Significant Customers
We are subject to credit risk from our portfolio of cash equivalents and marketable securities. These investments were made in accordance with our investment policy which specifies the categories, allocations, and ratings of securities we may consider for investment. The primary objective of our investment activities is to preserve principal while at the same time maximizing the income we receive without significantly increasing risk. We maintain our cash and cash equivalent balances with four major commercial banks and marketable securities with two other financial institution. Deposits held with the financial institutions exceed the amount of insurance provided on such deposits. We are exposed to credit risk in the event of a default by the financial institutions holding our cash, cash equivalents and marketable securities to the extent recorded on the consolidated balance sheets.
We are also subject to credit risk from our accounts receivable related to our product sales and revenues under our license and collaborative agreements. We have license and collaborative agreements with pharmaceutical companies under which we receive payments for royalties, license fees, milestone payments for specific achievements designated in the collaborative agreements, reimbursements of research and development services, and supply of bulk formulation of rHuPH20 and auto-injector devices. In addition, we sell proprietary products in the United States (“U.S.”) to a limited number of established wholesale distributors in the pharmaceutical industry. Credit is extended based on an evaluation of the customer’s financial condition, and collateral is not required. Management monitors our exposure to accounts receivable by periodically evaluating the collectability of the accounts receivable based on a variety of factors including the length of time the receivables are past due, the financial health of the customer and historical experience. Based upon the review of these factors, we recorded no significant allowance for doubtful accounts as of December 31, 2025 and 2024. Approximately 69% of the accounts receivable balance as of December 31, 2025 represents amounts due from Janssen, Roche and argenx. Approximately 60% of the accounts receivable balance as of December 31, 2024 represents amounts due from Janssen and Roche.
The following table indicates the percentage of total revenues in excess of 10% with any single customer:
Year Ended December 31,
202520242023
Partner A
41%41%44%
Partner B
17%17%19%
Partner C
16%9%7%
Partner D
6%8%10%
We attribute revenues under collaborative agreements, including royalties, to the individual countries where the customer is headquartered. We attribute revenues from product sales to the individual countries to which the product is shipped. Worldwide revenues from external customers are summarized by geographic location in the following table (in thousands):
Year Ended December 31,
202520242023
United States$822,975 $690,461 $587,196 
Switzerland276,414 212,391 149,024 
Belgium217,516 84,005 58,354 
Japan46,372 18,939 15,096 
All other foreign33,334 9,528 19,583 
Total revenues$1,396,611 $1,015,324 $829,253 
Accounts Receivable, net and Contract Assets
Accounts receivable is recorded at the invoiced amount and is non-interest bearing. Accounts receivable is recorded net of estimated prompt pay discounts, distribution fees and chargebacks. Contract assets are recorded when revenue is earned but an invoice has not been issued for payment. Contract assets relate to development milestones deemed probable of receipt for intellectual property licenses granted to partners in prior periods and for goods or services when control has transferred to the customer, and corresponding revenue is recognized but is not yet billable to the customer in accordance with the terms of the contract.
Inventories
Inventories are stated at lower of cost or net realizable value. Cost is determined on a first-in, first-out basis. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Inventories are reviewed periodically for potential excess, dated or obsolete status. We evaluate the carrying value of inventories on a regular basis, taking into account such factors as historical and anticipated future sales compared to quantities on hand, the price we expect to obtain for products in their respective markets compared with historical cost and the remaining shelf life of goods on hand.
Leases
We have entered into operating leases primarily for real estate and automobiles. These leases have contractual terms which range from three years to twelve years. We determine if an arrangement contains a lease at inception. Right of use (“ROU”) assets and liabilities resulting from operating leases are included in property and equipment, accrued expenses and other long-term liabilities on our consolidated balance sheets. Operating lease ROU assets and liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the discount rate to calculate the present value of future payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. Our leases often include options to extend or terminate the lease. These options are included in the lease term when it is reasonably certain that we will exercise that option. Short-term leases with an initial term of 12 months or less are not recorded on our consolidated balance sheet. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term.
We have lease agreements with lease and non-lease components, which are generally accounted for separately. For certain leases, such as automobiles, we account for the lease and non-lease components as a single lease component.
Property and Equipment, Net
Property and equipment, which includes internal-use software and leasehold improvements, are recorded at cost, less accumulated depreciation and amortization. Equipment and internal-use software are depreciated using the straight-line method over its estimated useful life ranging from three years to ten years and leasehold improvements are amortized using the straight-line method over the estimated useful life of the asset or the lease term, whichever is shorter.
Impairment of Long-Lived Assets
We account for long-lived assets in accordance with authoritative guidance for impairment or disposal of long-lived assets. Long-lived assets are reviewed for events or changes in circumstances, which indicate their carrying value may not be recoverable.
Comprehensive Income
Comprehensive income is defined as the change in equity during the period from transactions and other events and circumstances from non-owner sources.
Convertible Notes
The 2024 Convertible Notes, the 2027 Convertible Notes, the 2028 Convertible Notes, the 2031 Convertible Notes and the 2032 Convertible Notes (collectively, the “Convertible Notes”) are accounted for in accordance with authoritative guidance for debt and derivatives. We evaluate all the embedded conversion options contained in the Convertible Notes to determine if there are embedded features that require bifurcation as a derivative as required by U.S. GAAP. Based on our analysis, we account for each of our Convertible Notes as single units of accounting, a liability, because we concluded that the conversion features do not require bifurcation as a derivative under embedded derivative authoritative guidance.
Cash Flow Hedges - Currency Risks
We utilize a cash flow hedging program to mitigate foreign currency exchange risk associated with forecasted royalty revenue denominated in Swiss francs. Under the program, we can hedge these forecasted royalties up to a maximum of four years into the future. We hedge these cash flow exposures to reduce the risk of our earnings and cash flows being adversely affected by fluctuations in exchange rates.
In accordance with the hedge accounting treatment, all hedging relationships are formally documented at the inception of the hedge and are highly effective in offsetting changes to future cash flows on hedged transactions. Both at inception of the hedge and on an ongoing basis, we assess whether the foreign currency forward contracts are highly effective in offsetting changes in cash flows of hedged items on a prospective and retrospective basis. If we determine a (i) foreign currency forward contract is not highly effective as a cash flow hedge, (ii) foreign currency forward contract has ceased to be a highly effective hedge or (iii) forecasted transaction is no longer probable of occurring, we would discontinue hedge accounting treatment prospectively. We measure effectiveness based on the change in fair value of the forward currency forward contract and the fair value of the hypothetical foreign currency forward contract with terms that match the critical terms of the risk being hedged. No portion of our foreign currency forward contracts were excluded from the assessment of hedge effectiveness. As of December 31, 2025, all hedges were determined to be highly effective.
The assets or liabilities associated with our hedging contracts are recorded at fair market value in prepaid expense and other current assets, prepaid expenses and other assets, accrued expenses, or other long-term liabilities, respectively, in our consolidated balance sheets. Gains and losses related to changes in the fair market value of these hedging contracts are recorded as a component of accumulated other comprehensive income (loss) (“AOCI”) within stockholder’s equity in our consolidated balance sheets and reclassified to royalty revenue in our consolidated statements of income in the same period as the recognition of the underlying hedged transaction. In the event the underlying forecasted transaction does not occur, or it becomes probable that it will not occur, within the defined hedge period, we reclassify the gains or losses on the related cash flow hedge from AOCI to royalties revenue in our consolidated statements of income. Settlements from the cash flow hedge are included in operating activities on the consolidated statements of cash flows. Since the fair market value of these hedging contracts is derived from current market rates, the hedging contracts are classified as derivative financial instruments. We do not use derivatives for speculative or trading purposes. As of December 31, 2025, the amount expected to be recognized as a net loss out of AOCI into our consolidated statements of income during the next 12 months is $7.7 million.
Business Combinations
Under the acquisition method of accounting, we allocate the fair value of the total consideration transferred to the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values on the date of acquisition. These valuations require us to make 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. Costs incurred to complete a business combination, such as legal and other professional fees, are expensed as incurred.
If the initial accounting for a business combination is 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. We record these adjustments to the provisional amounts with a corresponding offset to goodwill. Any adjustments identified after the measurement period are recorded in our consolidated statements of income.
Asset Acquisitions
We evaluate acquisitions of assets and other similar transactions to assess whether the transaction should be accounted for as a business combination or asset acquisition by first applying a test to determine if substantially all of the fair value of the gross assets acquired is concentrated into a single identifiable asset or group of similar identifiable assets. If the test is met, we account for the transaction as an asset acquisition by recognizing net assets based on the consideration paid, which includes transaction costs, on a relative fair value basis. In an asset acquisition where the cost allocated to acquire in-process research and development (“IPR&D”) has no alternative future use, we immediately recognize the cost of the acquired IPR&D on our consolidated statements of income. In an asset acquisition, contingent consideration is not recognized as of the acquisition date but instead is recognized as part of the cost of the assets acquired at the time the consideration is paid.
Goodwill, Intangible Assets and Other Long-Lived Asset
Assets acquired, including intangible assets and IPR&D, and liabilities assumed are measured at fair value as of the acquisition date. Goodwill, which has an indefinite useful life, represents the excess of cost over fair value of the net assets acquired. Intangible assets acquired in a business combination that are used for IPR&D activities are considered indefinite lived until the completion or abandonment of the associated research and development efforts. Upon reaching the end of the relevant
research and development project (i.e., upon commercialization), the IPR&D asset is amortized over its estimated useful life. If the relevant research and development project is abandoned, the IPR&D asset is expensed in the period of abandonment.
Goodwill and indefinite-lived intangible assets are not amortized; however, they are reviewed for impairment at least annually during the second quarter, or more frequently if an event occurs indicating the potential for impairment. Goodwill and indefinite-lived intangible assets are considered to be impaired if the carrying value of the reporting unit or indefinite-lived intangible asset exceeds its respective fair value.
We perform our goodwill impairment analysis at the reporting unit level, which is one level below our reporting and operating segment structure. We assign goodwill to reporting units at the time of acquisition. During the goodwill impairment review, we assess qualitative factors to determine whether it is more likely than not that the fair values of our 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 our 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 amounts, then no additional assessment is deemed necessary. Otherwise, we proceed to compare the estimated fair value of the reporting unit with the carrying value, including goodwill. If the carrying amount of the reporting unit exceeds the fair value, we record an impairment loss based on the difference. We may elect to bypass the qualitative assessment in a period and proceed to perform the quantitative goodwill impairment test.
During the indefinite-lived intangible asset impairment review, we may elect to start by performing a qualitative assessment. The qualitative factors include, but are not limited to, macroeconomic conditions, industry and market considerations, cost factors, asset-specific commercial and regulatory developments and changes to key personnel or strategy. If the qualitative assessment indicates that it is not more likely than not that the fair value of the indefinite-lived intangible asset exceeds its carrying amount, we compare the estimated fair value of the indefinite-lived intangible asset with its carrying value. Determining fair value requires the exercise of judgment about product pricing, market assumptions, discount rates, and the amount and timing of expected future cash flows. If the carrying value of the indefinite-lived intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess.
Our identifiable intangible assets with finite useful lives are typically comprised of acquired device technologies and product rights. 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 perform regular reviews to determine if any event has occurred that may indicate intangible assets with finite useful lives and other long-lived assets are potentially impaired. If indicators of impairment exist, an impairment test is performed to assess the recoverability of the affected assets by determining whether the carrying amount of such assets exceeds the undiscounted expected future cash flows. If the affected assets are not recoverable, we estimate the fair value of the assets and record an impairment loss if the carrying value of the assets exceeds the fair value. Factors that may indicate potential impairment include a significant decline in our stock price and market capitalization compared to the net book value, significant changes in the ability of a particular asset to generate positive cash flows for our strategic business objectives, and the pattern of utilization of a particular asset.
Revenue Recognition
We generate revenues from payments received (i) as royalties from licensing our ENHANZE technology and other royalty arrangements, (ii) under collaborative agreements and (iii) from sales of our proprietary and partnered products. We recognize revenue when we transfer promised goods or services to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. To determine revenue recognition for contracts with customers, we perform the following five steps: (i) identify the promised goods or services in the contract; (ii) identify the performance obligations in the contract, including whether they are distinct in the context of the contract; (iii) determine the transaction price, including the constraint on variable consideration; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) we satisfy the performance obligations.
ENHANZE and Device Royalties
Under the terms of our ENHANZE collaboration and license agreements, our partners will pay us royalties at an on average mid-single digit percent rate of their sales if products under the collaboration are commercialized. All amounts owed to us are noncancelable after the underlying triggering event occurs, and nonrefundable once paid. Unless terminated earlier in accordance with its terms, collaborations generally continue in effect until the last to expire royalty payment term, as determined on a product by product and country by country basis, with each royalty term starting on the first commercial sale of that product and ending the later of: (i) a specified period or term set forth in the agreement or (ii) expiration of the last to expire of the valid claims of our patents covering rHuPH20 or other specified patents developed under the collaboration which valid claim covers a product developed under the collaboration. In general, when there are no valid claims of a specified patent developed under the collaboration covering the product in a given country, the royalty rate is reduced for those sales in that country upon the expiration of our patents covering rHuPH20. Janssen’s patents covering DARZALEX SC do not impact the timing for this royalty reduction. Partners may terminate the agreement prior to expiration for any reason in its entirety or on a target-by-target basis generally upon 90 days prior written notice to us. Upon any such termination, the license granted to partners (in total or with respect to the terminated target, as applicable) will terminate provided; however, that in the event of expiration of the agreement (as opposed to a termination), the on-going licenses granted may become perpetual, non-exclusive and fully paid. Sales-based milestones and royalties are recognized in the period the underlying sales or milestones occur. We do not receive final royalty reports from our ENHANZE partners until after we complete our financial statements for a prior quarter. Therefore, we recognize revenue based on estimates of the royalty earned, which are based on internal estimates and available preliminary reports provided by our partners. We will record adjustments in the following quarter, if necessary, when final royalty reports are received. To date, we have not recorded any material adjustments.
We also earn royalties in connection with several of our licenses granted under license and development arrangements with our device partners. These royalties are based upon a percentage of commercial sales of partnered products with rates ranging from mid-single digits to low double digits and are tiered based on levels of net sales. These sales-based royalties, for which the license was deemed the predominant element to which the royalties relate, are estimated and recognized in the period in which the partners’ commercial sales occur. The royalties are generally reported and payable to us within 45 to 60 days after the end of the period in which the commercial sales are made. We base our estimates of royalties earned on actual sales information from our partners when available or estimated prescription sales from external sources and estimated net selling price. We will record adjustments in the following quarter, if necessary, when final royalty reports are received. To date, we have not recorded any material adjustments.
Revenue under ENHANZE and Device Collaborative Agreements
ENHANZE Collaboration and License Agreements
Under these agreements, we grant the collaboration partner a worldwide license to develop and commercialize products using our ENHANZE technology to combine our patented rHuPH20 enzyme with their proprietary biologics directed at up to a specified number of targets. Targets are usually licensed on an exclusive, global basis. Targets selected subsequent to inception of the arrangement generally require payment of an additional license fee. The collaboration partner is responsible for all development, manufacturing, clinical, regulatory, sales and marketing costs for any products developed under the agreement. We are responsible for supply of bulk rHuPH20 based on the collaboration partner’s purchase orders, and may also be separately engaged to perform research and development services. While these collaboration agreements are similar in that they originate from the same framework, each one is the result of an arms-length negotiation and thus may vary from one to the other.
We generally collect an upfront license payment from collaboration partners, and are also entitled to receive event-based payments subject to collaboration partners’ achievement of specified development, regulatory and sales-based milestones. In several agreements, collaboration partners pay us annual fees to maintain their exclusive license rights if they are unable to
advance product development to specified stages. We earn separate fees for bulk rHuPH20 supplies and research and development services.
Although these agreements are in form identified as collaborative agreements, we concluded for accounting purposes they represent contracts with customers and are not subject to accounting literature on collaborative arrangements. This is because we grant to partners licenses to our intellectual property and provide supply of bulk rHuPH20 and research and development services which are all outputs of our ongoing activities, in exchange for respective consideration. Under these collaborative agreements, our partners lead development of assets, and we do not share in significant financial risks of their development or commercialization activities. Accordingly, we concluded our collaborative agreements are appropriately accounted for pursuant to U.S. GAAP.
Under all of our ENHANZE collaborative agreements, we have identified licenses to use functional intellectual property as the only performance obligation. The intellectual property underlying the license is our proprietary ENHANZE technology which represents application of rHuPH20 to facilitate delivery of drugs. Each of the licenses grants the partners rights to use our intellectual property as it exists and is identified on the effective date of the license, because there is no ongoing development of the ENHANZE technology required. Therefore, we recognize revenue from licenses at the point when the license becomes effective and the partner has received access to our intellectual property, usually at the inception of the agreement.
When partners can select additional targets to add to the licenses granted, we consider these rights to be options. We evaluate whether such options contain material rights, i.e., have exercise prices that are discounted compared to what we would charge for a similar license to a new partner. The exercise price of these options includes a combination of the target selection fees, event-based milestone payments and royalties. When these amounts in aggregate are not offered at a discount that exceeds discounts available to other customers, we conclude the option does not contain a material right, and we consider grants of additional licensing rights upon option exercises to be separate contracts (target selection contracts).
Generally, we provide indemnification and protection of licensed intellectual property for our customers. These provisions are part of assurance that the licenses meet the agreements’ representations and are not obligations to provide goods or services.
We also fulfill purchase orders for supply of bulk rHuPH20 and perform research and development services pursuant to project authorization forms for our partners, which represent separate contracts. In addition to our licenses, we price our supply of bulk rHuPH20 and research and development services at our regular selling prices, called standalone selling prices (“SSP”). Therefore, our partners do not have material rights to order these items at prices not reflective of SSP. Refer to the discussion below regarding recognition of revenue for these separate contracts.
Transaction price for a contract represents the amount to which we are entitled in exchange for providing goods and services to the customer. Transaction price does not include amounts subject to uncertainties unless it is probable that there will be no significant reversal of revenue when the uncertainty is resolved. Apart from the upfront license payment (or target selection fees in the target selection contracts), all other fees we may earn under our collaborative agreements are subject to significant uncertainties of product development. Achievement of many of the event-based development and regulatory milestones may not be probable until such milestones are actually achieved. This generally relates to milestones such as obtaining marketing authorization approvals. With respect to other development milestones, e.g., dosing of a first patient in a clinical trial, achievement could be considered probable prior to its actual occurrence, based on the progress towards commencement of the trial. In order to evaluate progress towards commencement of a trial, we assess the status of activities leading up to our partner’s initiation of a trial such as feedback received from the applicable regulatory authorities, completion of investigational new drug or equivalent filings, readiness and availability of drug, readiness of study sites and our partner’s commitment of resources to the program. We do not include any amounts subject to uncertainties in the transaction price until it is probable that the amount will not result in a significant reversal of revenue in the future. At the end of each reporting period, we re-evaluate the probability of achievement of such milestones and any related constraint, and if necessary, adjust our estimate of the overall transaction price.
When target exchange rights are held by partners, and the amounts attributed to these rights are not refundable, they are included in the transaction price. However, they are recorded as deferred revenues because we have a potential performance obligation to provide a new target upon an exchange right being exercised. These amounts are recognized in revenue when the right of exchange expires or is exercised.
Because our agreements have one type of performance obligation (licenses) which are typically all transferred at the same time at agreement inception, allocation of transaction price often is not required. However, allocation is required when licenses for some of the individual targets are subject to rights of exchange, because revenue associated with these targets cannot be recognized. When allocation is needed, we perform an allocation of the upfront amount based on relative SSP of licenses for individual targets. We determine license SSP using an income-based valuation approach utilizing risk-adjusted discounted cash flow projections of the estimated return a licensor would receive where applicable, or an alternative valuation method such as indicative value from historical transactions. When amounts subject to uncertainties, such as milestones and royalties, are
included in the transaction price, we attribute them to the specific individual target licenses which generate such milestone or royalty amounts.
We also estimate SSP of bulk rHuPH20 and research and development services, to determine that our partners do not have material rights to order them at discounted prices. For supplies of bulk rHuPH20, because we effectively act as a contract manufacturer to our partners, we estimate and charge SSP based on the typical contract manufacturer margins consistent with all of our partners. We determine SSP of research and development services based on a fully-burdened labor rate. Our rates are comparable to those we observe in other collaborative agreements. We also have a history of charging similar rates to all of our partners.
Upfront amounts allocated to licenses to individual targets are recognized as revenue when the license is transferred to the partner, as discussed above, if the license is not subject to exchange rights, or when the exchange right expires or is exercised. Development milestones and other fees are recognized in revenue when they are included in the transaction price, because by that time, we have already transferred the related license to the partner.
In contracts to provide research and development services, such services represent the only performance obligation. The fees are charged based on hours worked by our employees and the fixed contractual rate per hour, plus third-party pass-through costs, on a monthly basis. We recognize revenues as the related services are performed based on the amounts billed, as the partner consumes the benefit of research and development work simultaneously as we perform these services, and the amounts billed reflect the value of these services to the customer.
Hypercon Technology Collaboration and Licensing Agreements
As a part of the acquisition of Elektrofi Inc, we acquired in-process collaboration and license agreements with collaboration partners who are attempting to formulate Hypercon technology with their existing drugs to develop an additional administrative option. The collaboration partner is responsible for all development, manufacturing, clinical, regulatory, sales and marketing costs for any products developed under the agreement; however, the agreement also includes Hypercon performing certain research and development (“R&D”) services to support the collaboration partner in their efforts. We assessed the nature of the promised goods and services in the contract which includes the license of the Hypercon technology representing a functional license of intellectual property to our customers, R&D services, and manufacturing technology transfer. These promises are not capable of being distinct performance obligations at this time due to the exclusive proprietary know-how and certain regulatory requirements associated with the manufacturing of the product. The collaboration partner simultaneously receives and consumes the benefits of the combined performance obligations as data is generated to support regulatory approval submissions. A significant component of the cost of R&D relates to our clinical trial research consultants, who are assisting with the monitor of the Hypercon technology to ensure the successful combination of the Hypercon technology with the collaboration partner’s drug.
The agreements include milestone payments, royalties, and an initial upfront payment. This upfront payment was received from the collaboration partner upon inception of the agreement and recorded as deferred revenue to be recognized as we perform certain R&D services to support the collaboration partner in their efforts to successful combine Hypercon technology with previously developed products. While the services are being provided, we allocate a portion of each deferred payment to the individual drug targets. Revenue is then recognized based upon the expected costs to complete as a percentage of the budget. These agreements are designed in a way that the R&D services are being completed in partnership with the collaboration partner at the approximate costs; therefore, the deferred revenue is being recognized as the work is completed for each partner’s drug. We may incur additional expenses outside of the R&D contract which are invoiced and recognized separately from the upfront payment. Deferred revenue associated with a target that has not been identified or no work has been performed is classified as other long-term liabilities on the consolidated balance sheets. Deferred revenue for expenses expected to be incurred within the next 12 months are classified as accrued expenses on the consolidated balance sheets.
Device License, Development and Supply Arrangements
We have several license, development and supply arrangements with pharmaceutical partners, under which we grant a license to our device technology and provide research and development services that often involve multiple performance obligations and highly-customized deliverables. For such arrangements, we identify each of the promised goods and services within the contract and the distinct performance obligations at inception of the contract and allocate consideration to each performance obligation based on relative SSP, which is generally determined based on the expected cost plus mark-up.
If the contract includes an enforceable right to payment for performance completed to date and performance obligations are satisfied over time, we recognize revenue over the development period using either the input or output method depending on which is most appropriate given the nature of the distinct deliverable. For other contracts that do not contain an enforceable right to payment for performance completed to date, revenue is recognized when control of the product is transferred to the customer. Factors that may indicate transfer of control has occurred include the transfer of legal title, transfer of physical
possession, the customer has obtained the significant risks and rewards of ownership of the assets, and we have a present right to payment.
Our payment terms for development contracts may include an upfront payment equal to a percentage of the total contract value with the remaining portion to be billed upon completion and transfer of the individual deliverables or satisfaction of the individual performance obligations. We record a contract liability for cash received in advance of performance, which is presented as deferred revenue within accrued expense and other long-term liabilities in our consolidated balance sheets and recognized as revenue in our consolidated statements of income when the associated performance obligations have been satisfied.
License fees and milestones received in exchange for the grant of a license to our functional intellectual property, such as patented technology and know-how in connection with a partnered development arrangement, are generally recognized at inception of the arrangement, or over the development period depending on the facts and circumstances, as the license is generally not distinct from the non-licensed goods or services to be provided under the contract. Milestone payments that are contingent upon the occurrence of future events are evaluated and recorded at the most likely amount, and to the extent that it is probable that a significant reversal of revenue will not occur when the associated uncertainty is resolved.
Refer to Note 5, Revenue, for further discussion on our collaborative arrangements.
Product Sales, Net
Proprietary Product Sales
Our commercial portfolio of proprietary products includes XYOSTED and Hylenex recombinant which we sell primarily to wholesale pharmaceutical distributors and specialty pharmacies, who sell the products to hospitals, retail chain drug stores and other end-user customers. Sales to wholesalers are made pursuant to purchase orders subject to the terms of a master agreement, and delivery of individual packages of products represents performance obligations under each purchase order. We use contract manufacturers to produce our proprietary products and third-party logistics vendors to process and fulfill orders. We concluded we are the principal in the sales to wholesalers because we control access to services rendered by both vendors and direct their activities. We have no obligations to wholesalers to generate pull-through sales.
Revenue is recognized when control has transferred to the customer, which is typically upon delivery, at the net selling price, which reflects the variable consideration for which reserves and sales allowances are established for estimated returns, wholesale distribution fees, prompt payment discounts, government rebates and chargebacks, plan rebate arrangements and patient discount and support programs. We recognize revenue from product sales and related cost of sales upon product delivery to the wholesaler location. At that time, the wholesalers take control of the product as they take title, bear the risk of loss of ownership, and have an enforceable obligation to pay us. They also have the ability to direct sales of product to their customers on terms and at prices they negotiate. Although wholesalers have product return rights, we do not believe they have a significant incentive to return the product to us.
The determination of certain reserves and sales allowances requires us to make a number of judgments and estimates to reflect our best estimate of the transaction price and the amount of consideration to which we believe we would be ultimately entitled to receive. The expected value is determined based on unit sales data, contractual terms with customers and third-party payers, historical and estimated future percentage of rebates incurred on sales, historical and future insurance plan billings, any new or anticipated changes in programs or regulations that would impact the amount of the actual rebates, customer purchasing patterns, product expiration dates and levels of inventory in the distribution channel. The estimated amounts of credit for product returns, chargebacks, distribution fees, prompt payment discounts, rebates and customer co-pay support programs are included in accrued expenses and accounts receivable, net in our consolidated balance sheets upon recognition of revenue from product sales. We monitor actual product returns, chargebacks, discounts and fees subsequent to the sale. If these amounts differ from our estimates, we make adjustments to these allowances, which are applied to increase or reduce product sales revenue and earnings in the period of adjustment.
Selling prices initially billed to wholesalers are subject to discounts for prompt payment and subsequent chargebacks when wholesalers sell our products at negotiated discounted prices to members of certain group purchasing organizations, pharmacy benefit managers and government programs. We also pay quarterly distribution fees to certain wholesalers for inventory reporting and chargeback processing, and to pharmacy benefit managers and group purchasing organizations as administrative fees for services and for access to their members. We concluded the benefits received in exchange for these fees are not distinct from our sales of our products, and accordingly we apply these amounts to reduce revenues. Wholesalers also have rights to return unsold product nearing or past the expiration date. Because of the shelf life of our products and our lengthy return period, there may be a significant period of time between when the product is shipped and when we issue credits on returned product.
We estimate the transaction price when we receive each purchase order taking into account the expected reductions of the selling price initially billed to the wholesaler arising from all of the above factors. We have compiled historical experience and data to estimate future returns and chargebacks of our products and the impact of the other discounts and fees we pay. When estimating these adjustments to the transaction price, we reduce it sufficiently to be able to assert that it is probable that there will be no significant reversal of revenue when the ultimate adjustment amounts are known.
Each purchase order contains only one type of product, and is usually shipped to the wholesaler in a single shipment. Therefore, allocation of the transaction price to individual packages is not required.
In connection with the orders placed by wholesalers, we incur costs such as commissions to our sales representatives. However, as revenue from product sales is recognized upon delivery to the wholesaler, which occurs shortly after we receive a purchase order, we do not capitalize these commissions and other costs, based on application of the practical expedient allowed within the applicable guidance.
Partnered Product Sales
Bulk rHuPH20
We sell bulk rHuPH20 to partners for use in research and development and, subsequent to receiving marketing approval, we sell it for use in collaboration commercial products. Sales are made pursuant to purchase orders subject to the terms of the collaborative agreement or a supply agreement, and delivery of units of bulk rHuPH20 represent performance obligations under each purchase order. We provide a standard warranty that the product conforms to specifications. We use contract manufacturers to produce bulk rHuPH20 and have concluded we are the principal in the sales to partners. The transaction price for each purchase order of bulk rHuPH20 is fixed based on the cost of production plus a contractual markup, and is not subject to adjustments. Allocation of the transaction price to individual quantities of the product is usually not required because each order contains only one type of product.
We recognize revenue from the sale of bulk rHuPH20 as product sales and related cost of sales upon transfer of title to our partners. At that time, the partners take control of the product, bear the risk of loss of ownership, and have an enforceable obligation to pay us.
Devices
We are party to several license, development, supply and distribution arrangements with pharmaceutical partners, under which we produce and are the exclusive supplier of certain products, devices and/or components. We recognize revenue from the sale of certain products, devices and/or components as product sales and related costs of sales at the point in time in which control is transferred to the customer, which is typically upon shipment of the goods to our partner. Sales terms and pricing are governed by the respective supply and distribution agreements, and there is generally no right of return. We provide a standard warranty that the product conforms to specifications. We use contract manufacturers to produce certain products, devices and/or components, and have concluded we are the principal in the sales to partners. Revenue is recognized at the transaction price, which includes the contractual per unit selling price. Allocation of the transaction price to individual quantities of the product is usually not required because each order contains only one type of product.
Cost of Sales
Cost of sales consists primarily of raw materials, third-party manufacturing costs, fill and finish costs, freight costs, internal costs and manufacturing overhead associated with the production of proprietary and partnered products. Cost of sales also consists of the write-down of excess, dated and obsolete inventories and the write-off of inventories that do not meet certain product specifications, if any.
Research and Development Expenses
Research and development expenses include salaries and benefits, allocation of facilities and other overhead expenses, research related manufacturing services, contract services, and other outside expenses related to manufacturing, preclinical and regulatory activities and our partner development platforms. Research and development expenses are charged to operating expenses as incurred when these expenditures relate to our research and development efforts and have no alternative future uses.
We are obligated to make upfront payments upon execution of certain research and development agreements. Advance payments, including nonrefundable amounts, for goods or services that will be used or rendered for future research and development activities are deferred. Such amounts are recognized as expense as the related goods are delivered or the related services are performed or such time when we do not expect the goods to be delivered or services to be performed.
Share-Based Compensation
We record compensation expense associated with stock options, restricted stock units (“RSUs”), performance stock units (“PSUs”) and shares issued under our employee stock purchase plan (“ESPP”) in accordance with the authoritative guidance for share-based compensation. The cost of employee services received in exchange for an award of an equity instrument is measured at the grant date, based on the estimated fair value of the award, and is recognized as expense on a straight-line basis over the requisite service period of the award. Share-based compensation expense for an award with a performance condition is recognized when the achievement of such performance condition is determined to be probable. If the outcome of such performance condition is not determined to be probable or is not met, no compensation expense is recognized and any previously recognized compensation expense is reversed. Forfeitures are recognized as a reduction of share-based compensation expense as they occur.
Income Taxes
We provide for income taxes using the liability method. Under this method, deferred income tax assets and liabilities are determined based on the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases at each reporting period. We measure deferred tax assets and liabilities using enacted tax rates for the year in which the differences are expected to reverse. Significant judgment is required by management to determine our provision for income taxes, our deferred tax assets and liabilities, and any associated valuation allowances recorded against our net deferred tax assets. Deferred tax assets (“DTA”) and other tax benefits are recorded when they are more likely than not to be realized. On a quarterly basis, we assess the need for valuation allowance on our DTAs, weighing all positive and negative evidence, to assess if it is more-likely-than-not that some or all of our DTAs will be realized.
On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into law. The OBBBA addresses key provisions of the 2017 Tax Cuts and Jobs Act including the immediate expensing of domestic research and development expenditures and 100% bonus depreciation on qualified property. The impacts of the OBBBA are reflected in our consolidated statements of operations for the year ended December 31, 2025, of which there was no material impact to our income tax expense. As of December 31, 2025, certain provisions of the OBBBA will change the timing of cash tax payments in the current fiscal year and future periods.
Segment Information
We generate revenues from payments received (i) as royalties from licensing our ENHANZE technology and other royalty arrangements, (ii) under collaborative agreements with our partners and (iii) from sales of our proprietary and partnered products. There are no intra-entity sales or transfers. We operate our business in one operating segment, which includes all activities related to the research, development and commercialization of our proprietary enzymes, devices, Hypercon technology, and the Surf Bio technology. This operating segment also includes revenues and expenses related to (i) research and development and manufacturing activities conducted under our collaborative agreements with third parties, (ii) product sales of proprietary and partnered products and (iii) associated selling, general and administrative expenses.
The chief operating decision-maker (“CODM”), our Chief Executive Officer, reviews the operating results on an aggregate basis and manages the operations as a single operating segment. The CODM assesses the segment’s performance and decides how to allocate resources based on consolidated net income that is reported in our consolidated statements of income. The measure of segment assets is reported on the consolidated balance sheets as total consolidated assets. The significant expense categories regularly provided to the CODM include cost of sales, research and development, amortization of intangibles, and selling, general and administrative expenses. These expense categories are reported as separate line items in our consolidated statements of income.
Adoption and Pending Adoption of Recent Accounting Pronouncements
The following table provides a brief description of recently issued accounting standards, those adopted in the current period and those not yet adopted:
StandardDescriptionEffective Date
Adoption Method
Effect on the Financial
Statements or Other Significant Matters
In September 2025, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2025-06, Intangibles–Goodwill and Other Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software
The new guidance includes amendments to clarify and modernize the accounting for costs related to internal-use software, including removing all references to project stages and clarifying thresholds used to begin capitalizing internal-use software development costs.
Annual periods beginning after December 15, 2027 (our 2028 Form 10-K), and interim reporting periods within those annual reporting periods (our Q1 2027 Form 10-Q) – Early adoption is permitted.
Prospective, Retrospective or Modified Transition Approach
We early adopted the new guidance in the interim period ended September 30, 2025, on a prospective basis. The adoption did not have a material impact on our consolidated financial statements or financial statement disclosures.
In November 2024, the FASB issued ASU 2024-04, Debt–Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments
The new guidance includes amendments to clarify the requirements for determining whether certain early settlements of convertible debt instruments should be accounted for as an induced conversion or extinguishment.
Annual periods beginning after December 15, 2025 (our 2026 Form 10-K), and interim reporting periods within those annual reporting periods (our Q1 2026 Form 10-Q) – Early adoption is permitted.
Prospective or Retrospective
We early adopted the new guidance on January 1, 2025, on a prospective basis. The adoption did not have a material impact on our consolidated financial statements or financial statement disclosures.
In November 2024, the FASB issued ASU 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses
The new guidance is intended to enhance expense disclosures by requiring disaggregation of certain expenses included in the consolidated statements of income into specified expense categories in the notes to the consolidated financial statements.
Annual periods beginning after December 15, 2026 (our 2027 Form 10-K), and interim reporting periods beginning after December 15, 2027 (our Q1 2028 Form 10-Q) – Early adoption is permitted.
Prospective or RetrospectiveWe are currently evaluating the impact of the standard on our consolidated financial statements and related disclosures.
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures
The new guidance includes amendments that further enhance income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction.
Annual periods beginning after December 15, 2024 (our 2025 Form 10-K) – Early adoption is permitted.
Prospective or Retrospective
We adopted the new guidance on January 1, 2025, on a retrospective basis. The adoption did not have a material effect on our consolidated financial statements, but resulted in expanded financial statement disclosures.
v3.25.4
Business Combination
 12 Months Ended
Dec. 31, 2025
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
Business Combination Business Combinations
Elektrofi, Inc.
On November 18, 2025, we acquired all outstanding equity interests of Elektrofi, Inc. according to the terms and conditions of the Agreement and Plan of Merger dated as of September 30, 2025 (the “Elektrofi Merger Agreement”). Elektrofi is a biopharmaceutical company with an innovative microparticle technology that has been demonstrated in non-clinical testing to enable hyperconcentration of drugs and biologics and reduce the injection volume for the same dosage, potentially expanding opportunities for at-home and health care provider administration. We acquired Elektrofi as a part of our strategy to expand our drug delivery technology offerings.
Hypercon technology is an innovative microparticle technology that has been demonstrated in non-clinical testing to enable hyperconcentration of drugs and biologics and reduce the injection volume for the same dosage, potentially expanding opportunities for at-home and health care provider administration.
The total purchase consideration of Elektrofi was $810.4 million. Each share of Elektrofi common stock issued and outstanding was converted into the right to receive $28.80 per share in cash without interest, less any applicable withholding taxes (“Merger Consideration”). Additionally, in connection with the transaction, $56.5 million was paid to Elektrofi option holders for options granted and outstanding as of November 18, 2025 under the Elektrofi 2015 Equity Compensation Plan. Other components of purchase consideration included an estimated fair value of contingent consideration of $23.0 million related to future milestone payments, and cash paid at closing to settle seller transaction costs of $18.4 million paid by us on behalf of Elektrofi.
The acquisition of Elektrofi was funded by cash on hand and rollover equity. We recognized transaction costs of $13.7 million in the year ended December 31, 2025. These costs are reported in selling, general and administrative expenses in our consolidated statements of income. Transaction costs include, but are not limited to, investment banker, advisory, legal, and other professional fees.
Purchase Consideration
The total purchase consideration was comprised of the following (in thousands):
Cash consideration payments to stockholders and option holders as of November 18, 2025
$787,392 
Estimated fair value of contingent consideration23,000 
Total purchase consideration
$810,392 
Fair Value of Assets Acquired and Liabilities Assumed
The acquisition of Elektrofi has been accounted for using the acquisition method of accounting in accordance with ASC 805, Business Combinations, with Halozyme treated as the accounting acquirer, which requires, among other things, that the assets acquired and liabilities assumed be recognized at their fair value on the acquisition date. Acquisition accounting is dependent upon certain valuations and other studies that have yet to commence or progress to a stage where there is sufficient information for a definitive measurement. The process for estimating the fair values of identifiable intangible assets and certain tangible assets and assumed liabilities requires the use of judgment in determining the appropriate assumptions and estimates.
The table below presents the preliminary estimated fair values of assets acquired and liabilities assumed on the acquisition date based on valuations and management estimates. Fair value estimates are based on a complex series of judgments about future events and uncertainties and rely heavily on estimates and assumptions. The judgments used to determine the estimated fair value assigned to each class of assets acquired and liabilities assumed, as well as asset lives, can materially impact our results of operations. We are still finalizing the allocation of the purchase price, therefore, the fair value estimates assigned to intangible assets, goodwill and the related tax impacts of the acquisition, among other items, are subject to change as additional information is received to complete our analysis and certain tax returns are finalized. As a result, the preliminary estimates may be revised during the measurement period. These differences could change the value of the intangible assets acquired, the contingent liability assumed, and the tax impacts related to the acquisition and could have a material impact on our results of operations and financial position.
(in thousands)
Fair Value
Assets acquired
Cash and cash equivalents$84,427 
Accounts receivable, net4,755 
Prepaid expenses and other current assets879 
Total current assets90,061 
Property and equipment, net7,338 
Operating lease right-of-use assets8,441 
Goodwill (1)
163,539 
Intangible assets705,000 
Other assets182 
Total assets acquired
$974,561 
Liabilities assumed
Accounts payable(929)
Accrued expenses and other current liabilities(26,803)
Deferred revenue, current(5,674)
Operating lease liabilities, current(3,440)
Other current liabilities(51)
Total current liabilities(36,897)
Deferred revenue, net of current portion(19,974)
Operating lease liabilities, net of current portion(4,484)
Other liabilities (2)
(102,816)
Total liabilities assumed$(164,171)
Net assets acquired810,392 
Less cash acquired(84,427)
Total purchase price, net of cash acquired$725,965 
(1)    Goodwill is the excess of the consideration transferred over the net assets recognized and represents the expected synergies of the combined operations and the assembled workforce acquired in the acquisition. Goodwill recognized as a result of the acquisition is not expected to be deductible for tax purposes.
(2)    Includes $102.8 million of deferred tax liabilities.
Identifiable Intangible Assets
The estimated fair value of the Hypercon developed technology platform asset was prepared using the replacement cost method which calculates present-day cost of replacing that asset with a similar asset in a similar condition. The estimated fair value of customer relationship assets were prepared using the multi-period excess earnings method which calculates the present value of the incremental after-tax cash flows attributable solely to each customer relationship. The estimated fair value of the trade name asset was prepared using the relief from royalty method which calculates the value of the trade name based on royalties that would be paid if licensed by a third party. The estimated useful lives are based on forecasted periods of benefit for each intangible asset. Useful lives and preliminary values are presented in the table below.
Amount (in thousands)
Useful life (years)
Hypercon developed technology platform
$230,000 15
Customer relationships
470,000 15
Trade name
5,000 15
Estimated fair value of intangible assets acquired
$705,000 
Surf Bio, Inc.
On December 22, 2025, we acquired all outstanding equity interests of Surf Bio, Inc. according to the terms and conditions of the Agreement and Plan of Merger dated as of December 18, 2025 (the “Surf Bio Merger Agreement”). Surf Bio is a preclinical biopharmaceutical company that is transforming how antibodies and biologics are delivered to patients. We acquired Surf Bio as a part of our strategy to expand our drug delivery technology offerings.
The total purchase consideration of Surf Bio was $305.0 million to selling shareholders, inclusive of $10.2 million in transaction expenses. We acquired $6.4 million in cash and restricted cash, of which $4.3 million was used to fund seller payments and transaction expenses. An incremental $100.0 million in consideration is contingent to the sellers in the form of milestone payments which are dependent on the occurrence of future events.
The acquisition of Surf Bio was not considered a business combination as Surf Bio did not meet the definition of a business under ASC 805-10, Business Combinations. Rather, the asset purchase transaction was accounted for under the authoritative guidance for asset acquisitions within ASC 805-50, whereby the underlying asset was deemed an IPR&D asset with no alternative future use. We allocated the cost of the acquisition, or $294.2 million, among the assets acquired based on the relative fair value of such assets. The $294.2 million consisted of $294.8 million in consideration paid to the sellers, plus $10.2 million of transaction expenses, less $10.8 million in accelerated stock-based compensation expense. The acquired assets’ value is predominately concentrated in the IPR&D asset. In accordance with ASC 805-50, the fair value allocated to the IPR&D asset, or $284.9 million, was recorded in the consolidated statements of income in the year ended December 31, 2025. The fair value of other assets acquired and liabilities assumed were capitalized to the consolidated balance sheet. The $100.0 million in contingent consideration will be recognized in the future when and if milestones are met (i.e., when the contingent consideration is paid or payable) and does not meet the definition of a derivative.
v3.25.4
Fair Value Measurement
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurement Fair Value Measurement
Available-for-sale marketable securities consisted of the following (in thousands):
December 31, 2025
Amortized CostGross Unrealized GainsGross Unrealized LossesEstimated Fair Value
U.S. treasury securities
$9,002 $— $(2)$9,000 
Total marketable securities, available-for-sale$9,002 $— $(2)$9,000 
December 31, 2024
Amortized CostGross Unrealized GainsGross Unrealized LossesEstimated Fair Value
Asset-backed securities$251 $— $— $251 
Corporate debt securities102,632 150 (207)102,575 
U.S. treasury securities
367,700 442 (572)367,570 
Agency bonds9,844 — (16)9,828 
Total marketable securities, available-for-sale$480,427 $592 $(795)$480,224 
As of December 31, 2025, all available-for-sale marketable securities with a fair market value of $9.0 million were in an immaterial gross unrealized loss position. Based on our review of these marketable securities, we believe none of the unrealized loss is as a result of a credit loss as of December 31, 2025 because we do not intend to sell these securities and it is not more-likely-than-not that we will be required to sell these securities before the recovery of their amortized cost basis.
The estimated fair value of our contractual maturities of available-for-sale debt securities were as follows (in thousands):
December 31, 2025December 31, 2024
Due within one year$9,000 $314,978 
Due after one year but within five years (1)
— 165,246 
Total estimated fair value of available-for-sale securities
$9,000 $480,224 
(1)    These investments are classified as current assets which reflects management’s intention to use the proceeds from the sale of these investments to fund operations, as necessary.
The following table summarizes, by major security type, our cash equivalents and available-for-sale marketable securities measured at fair value on a recurring basis and are categorized using the fair value hierarchy (in thousands):
December 31, 2025December 31, 2024
Level 1Level 2
Total Estimated Fair Value
Level 1Level 2
Total Estimated Fair Value
Assets
Cash equivalents
Money market funds$175 $— $175 $55,182 $— $55,182 
Available-for-sale marketable
securities
Asset-backed securities— — — — 251 251 
Corporate debt securities— — — — 102,575 102,575 
U.S. treasury securities
9,000 — 9,000 367,570 — 367,570 
Agency bonds— — — 9,828 — 9,828 
Derivative instruments
Currency hedging contracts (1)
— — — — 4,006 4,006 
Total assets measured at fair value
$9,175 $— $9,175 $432,580 $106,832 $539,412 
Liabilities
Derivative instruments
Currency hedging contracts (1)
$— $22,891 $22,891 $— $17 $17 
(1)    Based on observable market transactions of spot currency rates, forward currency rates or equivalently-termed instruments. Carrying amounts of the financial assets and liabilities are equal to the fair value. As of December 31, 2025, the derivative liabilities recorded within accrued expenses and other long-term liabilities in our consolidated balance sheets were $7.7 million and $15.1 million, respectively. As of December 31, 2024, the derivative assets recorded within prepaid expenses and other current assets and prepaid expenses and other assets in our consolidated balance sheets were $2.4 million and $1.6 million, respectively. The derivative liabilities recorded within other long-term liabilities in our consolidated balance sheets as of December 31, 2024 were not material.
We had no available-for-sale securities that were classified within Level 3 as of December 31, 2025 and 2024.
A contingent liability was assumed as part of the Antares acquisition related to TLANDO. The acquisition date fair value was measured using the income approach, specifically the probability weighted expected return method for the development milestone payments and the option pricing methodology using the Monte Carlo simulation for commercial milestone payments and royalty payments. Estimates and assumptions used in the Monte Carlo simulation include forecasted revenues, cost of debt, risk free rate, weighted average cost of capital, revenue market price risk and revenue volatility. Estimates and assumptions used in the income approach include the probability of achieving certain milestones and a discount rate. These unobservable inputs represent a Level 3 measurement because they are supported by little or no market activity and reflect our own assumptions in measuring fair value. Changes in the fair value subsequent to the acquisition date is recognized in our consolidated statements of income. In September 2023, we provided Lipocine notice of termination of the TLANDO license agreement effective January 31, 2024. Based on the fair value remeasurement performed, we recognized a gain on change in fair value of the contingent liability of $13.2 million for the twelve months ended December 31, 2023 in our consolidated statements of income.
A contingent liability with a preliminary value of $23.0 million was assumed as part of the Elektrofi acquisition related to future milestone payments. The acquisition date fair value of contingent consideration was measured using the income
approach, specifically the probability weighted expected return method for the development milestone payments. The fair value of the contingent liability will be remeasured quarterly. Estimates and assumptions used in the valuation include probability of achieving certain milestones, the expected timing of achieving these milestones, and a discount rate. These unobservable inputs represent a Level 3 measurement because they are supported by little or no market activity and reflect our own assumptions in measuring fair value. Changes in the fair value subsequent to the acquisition date will be recognized in our consolidated statements of income.
v3.25.4
Revenue
 12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
Our disaggregated revenues were as follows (in thousands):
Year Ended December 31,
202520242023
Royalties$867,840 $570,991 $447,865 
Product sales, net
Proprietary product sales
194,608 166,620 130,834 
Bulk rHuPH20 sales
133,023 86,334 115,442 
Device partnered product sales
48,813 50,538 54,578 
Total product sales, net376,444 303,492 300,854 
Revenues under collaborative agreements
Upfront license and target nomination fees
18,471 27,000 2,000 
Event-based development and regulatory milestones and other fees
47,000 72,500 69,000 
Sales-based milestones
70,000 30,000 — 
Device licensing and development revenue
16,856 11,341 9,534 
Total revenues under collaborative agreements152,327 140,841 80,534 
Total revenues
$1,396,611 $1,015,324 $829,253 
During the year ended December 31, 2025, we recognized revenue related to licenses granted to partners in prior periods in the amount of $984.8 million. This amount represents royalties and sales milestone earned in the current period, in addition to $47.0 million of variable consideration in the contracts where uncertainties were resolved and the development milestones are expected to be achieved or were achieved. We also recognized revenue of $2.0 million during the year ended December 31, 2025 that had been included in accrued expenses and other long-term liabilities in our consolidated balance sheets as of December 31, 2024.
Accounts receivable, net, other contract assets and deferred revenues (contract liabilities) from contracts with customers, including partners, consisted of the following (in thousands):
December 31, 2025December 31, 2024
Accounts receivable, net$426,273 $288,204 
Other contract assets15,000 20,251 
Deferred revenues35,482 10,343 
As of December 31, 2025, the amounts included in the transaction price of our contracts with customers, including collaboration partners, and allocated to goods and services not yet provided were $325.0 million, of which $289.5 million relates to unfulfilled product purchase orders and $35.5 million has been collected and is reported as other long-term liabilities in our consolidated balance sheets. The unfulfilled product purchase orders are estimated to be delivered by the end of 2027. Of the total deferred revenues of $35.5 million, $6.8 million is expected to be used by our customers within the next 12 months.
We recognized contract assets of $15.0 million as of December 31, 2025, which related to development milestones deemed probable of receipt for intellectual property licenses granted to partners in prior periods and for goods or services when control has transferred to the customer, and corresponding revenue is recognized but is not yet billable to the customer in accordance with the terms of the contract.
v3.25.4
Certain Balance Sheet Items
 12 Months Ended
Dec. 31, 2025
Balance Sheet Related Disclosures [Abstract]  
Certain Balance Sheet Items Certain Balance Sheet Items
Accounts receivable, net and contract assets consisted of the following (in thousands):
December 31,
2025		December 31,
2024
Product sales to partners$69,832 $37,599 
Revenues under collaborative agreements40,020 29,452 
Royalty payments259,298 164,348 
Other product sales65,117 65,542 
Other receivable1,612 — 
Contract assets15,000 20,251 
Total accounts receivable and contract assets
450,879 317,192 
Allowance for distribution fees and discounts(9,606)(8,737)
Total accounts receivable, net and contract assets
$441,273 $308,455 
Inventories consisted of the following (in thousands):
December 31,
2025		December 31,
2024
Raw materials$21,869 $24,015 
Work-in-process30,920 30,169 
Finished goods144,454 142,944 
Total inventories
197,243 197,128 
Less long-term portion(1)
(20,768)(55,268)
Total inventories, current
$176,475 $141,860 
(1)    Long-term portion of inventories represents inventory expected to remain on hand beyond one year and therefore is included in prepaid expenses and other assets in the consolidated balance sheets.
Prepaid expenses and other assets consisted of the following (in thousands):
December 31,
2025		December 31,
2024
Prepaid manufacturing expenses$71,925 $36,317 
Other prepaid expenses14,563 10,562 
Long-term inventories
20,768 55,268 
Other assets10,934 17,400 
Total prepaid expenses and other assets
118,190 119,547 
Less long-term portion
(53,551)(80,596)
Total prepaid expenses and other assets, current
$64,639 $38,951 
Prepaid manufacturing expenses include raw materials, slot reservation fees and other amounts paid to contract manufacturing organizations. Such amounts are reclassified to work-in-process inventory as materials are used or the contract manufacturing organization services are complete.
Property and equipment, net consisted of the following (in thousands):
December 31,
2025		December 31,
2024
Research equipment$18,305 $9,811 
Manufacturing equipment41,863 39,760 
Computer and office equipment8,034 7,955 
Internal-use software
1,878 1,755 
Leasehold improvements7,521 7,012 
Subtotal
77,601 66,293 
Accumulated depreciation and amortization(33,159)(25,429)
Subtotal44,442 40,864 
Right of use of assets37,695 34,171 
Total property and equipment, net
$82,137 $75,035 
Depreciation and amortization expense was approximately $11.4 million, $10.3 million, and $11.1 million, inclusive of ROU asset amortization of $6.5 million, $5.7 million and $5.5 million for the years ended December 31, 2025, 2024 and 2023, respectively.
Accrued expenses consisted of the following (in thousands):
December 31,
2025		December 31,
2024
Accrued compensation and payroll taxes$28,621 $24,400 
Accrued outsourced manufacturing expenses11,775 16,682 
Taxes payable
44,148 30,995 
Product returns and sales allowance46,594 54,588 
Other accrued expenses104,349 26,239 
Lease liability34,569 30,705 
Total accrued expenses
270,056 183,609 
Less long-term portion(113,863)(54,758)
Total accrued expenses, current
$156,193 $128,851 
Expense associated with the accretion of the lease liabilities was approximately $2.2 million, $2.2 million and $2.5 million for the twelve months ended December 31, 2025, 2024 and 2023, respectively. Total lease expense for the twelve months ended December 31, 2025, 2024 and 2023 was $8.7 million, $7.9 million and $8.0 million, respectively.
Cash paid for amounts related to leases for the twelve months ended December 31, 2025, 2024 and 2023 was $7.7 million, $6.9 million and $6.7 million, respectively.
v3.25.4
Goodwill and Intangible Assets, net
 12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets, net Goodwill and Intangible Assets, net
Goodwill
A summary of the activity impacting goodwill is presented below (in thousands):
Balance as of December 31, 2024
$416,821 
Goodwill acquired
163,539 
Balance as of December 31, 2025
$580,360 
Intangible Assets, net
Our acquired intangible assets are amortized using the straight-line method over their estimated useful lives of seven to fifteen years. The following table shows the cost, accumulated amortization and weighted average useful life in years for our acquired intangible assets as of December 31, 2025 (in thousands).
Weighted Average Useful Life (in years)
Gross Carrying ValueAccumulated AmortizationNet Carrying Value
Auto-injector technology platform
7$402,000 $207,021 $194,979 
XYOSTED proprietary product10136,200 49,098 87,102 
Hypercon developed technology platform
15230,000 1,831 228,169 
Customer relationships
15470,000 3,743 466,257 
Trade name
155,000 40 4,960 
Total intangible assets, net(1)
$1,243,200 $261,733 $981,467 
(1)    An impairment charge of $48.7 million was recognized during the year ended December 31, 2025 resulting in the full impairment of the ATRS-1902 IPR&D intangible asset. The impairment charge resulted from a strategic decision to discontinue the development of ATRS-1902 due to strategic initiatives executed in the quarter ended December 31, 2025.
The following table shows the cost, accumulated amortization and weighted average useful life in years for our acquired intangible assets as of December 31, 2024 (in thousands).
Weighted Average Useful Life (in years)
Gross Carrying ValueAccumulated AmortizationNet Carrying Value
Auto-injector technology platform
7$402,000 $149,592 $252,408 
XYOSTED proprietary product10136,200 35,478 100,722 
Total infinite-lived intangible assets, net
$538,200 $185,070 $353,130 
ATRS-1902 (IPR&D)
Indefinite
48,700 
Total intangible assets, net
$401,830 
Estimated future annual amortization of finite-lived intangible assets is shown in the following table (in thousands). Actual amortization expense to be reported in future periods could differ from these estimates as a result of acquisitions, divestitures, and asset impairments, among other factors.
Year
Amortization Expense
2026
$118,049 
2027
118,049 
2028
118,049 
2029
83,314 
2030
60,620 
Thereafter483,386 
Total$981,467 
v3.25.4
Long-Term Debt, Net
 12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Long-Term Debt, Net Long-Term Debt, Net
0.875% Convertible Notes due 2032
In November 2025, we completed the sale of $750.0 million in aggregate principal amount of 0.875% Convertible Senior Notes due 2032 (the “2032 Convertible Notes”). The net proceeds from the issuance of the 2032 Convertible Notes, after deducting the initial purchasers’ fee of $15.0 million, was approximately $735.0 million. We also incurred additional debt issuance costs totaling $0.5 million. Debt issuance costs and the initial purchasers’ fee are presented as a debt discount.
The 2032 Convertible Notes pay interest semi-annually in arrears on May 15th and November 15th of each year at an annual rate of 0.875%. The 2032 Convertible Notes are general unsecured obligations and rank senior in right of payment to all indebtedness that is expressly subordinated in right of payment to the 2032 Convertible Notes, rank equally in right of payment with all existing and future liabilities that are not so subordinated, are effectively junior to any secured indebtedness to the extent of the value of the assets securing such indebtedness, and are structurally subordinated to all indebtedness and other liabilities (including trade payables) of our current or future subsidiaries. The 2032 Convertible Notes have a maturity date of November 15, 2032.
Holders may convert their 2032 Convertible Notes at their option only in the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on March 31, 2026, if the last reported sale price per share of common stock exceeds 130% of the conversion price for each of at least 20 trading days during the 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter; (2) during the five consecutive business days immediately after any five consecutive trading day period (such five consecutive trading day period, the “measurement period”) in which the trading price per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price per share of our common stock on such trading day and the conversion rate on such trading day; (3) upon the occurrence of certain corporate events or distributions on our common stock, as described in the indenture for the 2032 Convertible Notes; (4) if we call such notes for redemption; and (5) at any time from, and including, May 15, 2032, until the close of business on the second scheduled trading day immediately before the maturity date. As of December 31, 2025, the 2032 Convertible Notes were not convertible.
Upon conversion, we will pay cash for the settlement of principal, and for the premium, if applicable, we will pay cash, deliver shares of common stock or a combination of cash and shares of common stock, at our election. The initial conversion rate for the 2032 Convertible Notes is 11.4683 shares of common stock per $1,000 in principal amount of 2032 Convertible Notes, equivalent to a conversion price of approximately $87.20 per share of our common stock. The conversion rate is subject to adjustment in some events but will not be adjusted for any accrued or unpaid interest.
As of December 31, 2025, we were in compliance with all covenants.
2032 Capped Call Transactions
In connection with the offering of the 2032 Convertible Notes, we entered into capped call transactions with certain counterparties (the “2032 Capped Call Transactions”). The 2032 Capped Call Transactions are expected generally to reduce potential dilution to holders of our common stock upon conversion of the 2032 Convertible Notes or at our election (subject to certain conditions) offset any cash payments we are required to make in excess of the principal amount of such converted 2032 Convertible Notes. The cap price of the 2032 Capped Call Transactions is initially $136.78 per share of common stock, representing a premium of 100% above the last reported sale price of $68.30 per share of common stock on November 5, 2025, and is subject to certain adjustments under the terms of the 2032 Capped Call Transactions. As of December 31, 2025, no 2032 Capped Call Transactions had been exercised.
Pursuant to their terms, the 2032 Capped Call Transactions qualify for classification within stockholders’ equity in our consolidated balance sheets, and their fair value is not remeasured and adjusted as long as they continue to qualify for stockholders’ equity classification. We paid approximately $106.8 million for the 2032 Capped Call Transactions, including applicable transaction costs, which was recorded as a reduction to additional paid-in capital in our consolidated balance sheets. The 2032 Capped Call Transactions are separate transactions entered into by us with certain counterparties, are not part of the terms of the 2032 Convertible Notes, and do not affect any holder’s rights under the 2032 Convertible Notes. Holders of the 2032 Convertible Notes do not have any rights with respect to the 2032 Capped Call Transactions.
0.00% Convertible Notes due 2031
In November 2025, we completed the sale of $750.0 million in aggregate principal amount of 0.00% Convertible Senior Notes due 2031 (the “2031 Convertible Notes”). The net proceeds from the issuance of the 2031 Convertible Notes, after deducting the initial purchasers’ fee of $15.0 million, was approximately $735.0 million. We also incurred additional debt issuance costs totaling $0.5 million. Debt issuance costs and the initial purchasers’ fee are presented as a debt discount.
The 2031 Convertible Notes will not bear regular interest and the principal amount of the 2031 Convertible Notes will not accrete. The 2031 Convertible Notes are general unsecured obligations and rank senior in right of payment to all indebtedness that is expressly subordinated in right of payment to the 2031 Convertible Notes, rank equally in right of payment with all existing and future liabilities that are not so subordinated, are effectively junior to any secured indebtedness to the extent of the value of the assets securing such indebtedness and are structurally subordinated to all indebtedness and other liabilities (including trade payables) of our current or future subsidiaries. The 2031 Convertible Notes have a maturity date of February 15, 2031.
Holders may convert their 2031 Convertible Notes at their option only in the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on March 31, 2026, if the last reported sale price per share of common stock exceeds 130% of the conversion price for each of at least 20 trading days during the 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter; (2) during the five consecutive business days immediately after any five consecutive trading day period (such five consecutive trading day period, the “measurement period”) in which the trading price per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price per share of our common stock on such trading day and the conversion rate on such trading day; (3) upon the occurrence of certain corporate events or distributions on our common stock, as described in the indenture for the 2031 Convertible Notes; (4) if we call such notes for redemption; and (5) at any time from, and including, August 15, 2030, until the close of business on the scheduled trading day immediately before the maturity date. As of December 31, 2025, the 2031 Convertible Notes were not convertible.
Upon conversion, we will pay cash for the settlement of principal and for the premium, if applicable, we will pay cash, deliver shares of common stock or a combination of cash and shares of common stock, at our election. The initial conversion rate for the 2031 Convertible Notes is 11.4683 shares of common stock per $1,000 in principal amount of 2031 Convertible Notes, equivalent to a conversion price of approximately $87.20 per share of our common stock. The conversion rate is subject to adjustment.
As of December 31, 2025, we were in compliance with all covenants.
2031 Capped Call Transactions
In connection with the offering of the 2031 Convertible Notes, we entered into capped call transactions with certain counterparties (the “2031 Capped Call Transactions”). The 2031 Capped Call Transactions are expected generally to reduce potential dilution to holders of our common stock upon conversion of the 2031 Convertible Notes or at our election (subject to certain conditions) offset any cash payments we are required to make in excess of the principal amount of such converted 2031 Convertible Notes. The cap price of the 2031 Capped Call Transactions is initially $136.78 per share of common stock, representing a premium of 100% above the last reported sale price of $68.30 per share of common stock on November 5, 2025, and is subject to certain adjustments under the terms of the 2031 Capped Call Transactions. As of December 31, 2025, no 2031 Capped Call Transactions had been exercised.
Pursuant to their terms, the 2031 Capped Call Transactions qualify for classification within stockholders’ equity in our consolidated balance sheets, and their fair value is not remeasured and adjusted as long as they continue to qualify for stockholders’ equity classification. We paid approximately $104.0 million for the 2031 Capped Call Transactions, including applicable transaction costs, which was recorded as a reduction to additional paid-in capital in our consolidated balance sheets. The 2031 Capped Call Transactions are separate transactions entered into by us with certain counterparties, are not part of the terms of the 2031 Convertible Notes, and do not affect any holder’s rights under the 2031 Convertible Notes. Holders of the 2031 Convertible Notes do not have any rights with respect to the 2031 Capped Call Transactions.
1.00% Convertible Notes due 2028
In August 2022, we completed the sale of $720.0 million in aggregate principal amount of 1.00% Convertible Senior Notes due 2028 (the “2028 Convertible Notes”). The net proceeds from the issuance of the 2028 Convertible Notes, after deducting the initial purchasers’ fee of $18.0 million, was approximately $702.0 million. We also incurred additional debt issuance costs totaling $1.0 million. Debt issuance costs and the initial purchasers’ fee are presented as a debt discount.
The 2028 Convertible Notes pay interest semi-annually in arrears on February 15th and August 15th of each year at an annual rate of 1.00%. The 2028 Convertible Notes are general unsecured obligations and rank senior in right of payment to all indebtedness that is expressly subordinated in right of payment to the 2028 Convertible Notes, rank equally in right of payment with all existing and future liabilities that are not so subordinated, are effectively junior to any secured indebtedness to the extent of the value of the assets securing such indebtedness, and are structurally subordinated to all indebtedness and other liabilities (including trade payables) of our current or future subsidiaries. The 2028 Convertible Notes have a maturity date of August 15, 2028.
Holders may convert their 2028 Convertible Notes at their option only in the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on December 31, 2022, if the last reported sale price per share of common stock exceeds 130% of the conversion price for each of at least 20 trading days during the 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter; (2) during the five consecutive business days immediately after any five consecutive trading day period (such five consecutive trading day period, the “measurement period”) in which the trading price per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price per share of our common stock on such trading day and the conversion rate on such trading day; (3) upon the occurrence of certain corporate events or distributions on our common stock, as described in the indenture for the 2028 Convertible Notes; (4) if we call such notes for redemption; and (5) at any time from, and including, February 15, 2028 until the close of business on the second scheduled trading day immediately before the maturity date. As of December 31, 2025, the 2028 Convertible Notes were not convertible.
Upon conversion, we will pay cash for the settlement of principal, and for the premium, if applicable, we will pay cash, deliver shares of common stock or a combination of cash and shares of common stock, at our election. The initial conversion rate for the 2028 Convertible Notes is 17.8517 shares of common stock per $1,000 in principal amount of 2028 Convertible Notes, equivalent to a conversion price of approximately $56.02 per share of our common stock. The conversion rate is subject to adjustment in some events but will not be adjusted for any accrued or unpaid interest.
In connection with the offering of the 2032 Convertible Notes and 2031 Convertible Notes, we used a portion of the net proceeds of the offering to enter into privately negotiated agreement with certain holder of its outstanding 2028 Convertible Notes to repurchase their 2028 Convertible Notes for cash. In connection with the repurchases, we paid approximately $342.9 million in cash, which included a premium, inducement expense and accrued interest.
As of December 31, 2025, we were in compliance with all covenants.
2028 Capped Call Transactions
In connection with the offering of the 2028 Convertible Notes, we entered into capped call transactions with certain counterparties (the “2028 Capped Call Transactions”). The 2028 Capped Call Transactions are expected generally to reduce potential dilution to holders of our common stock upon conversion of the 2028 Convertible Notes or at our election (subject to certain conditions) offset any cash payments we are required to make in excess of the principal amount of such converted 2028 Convertible Notes. The cap price of the 2028 Capped Call Transactions is initially $75.4075 per share of common stock, representing a premium of 75% above the last reported sale price of $43.09 per share of common stock on August 15, 2022, and is subject to certain adjustments under the terms of the 2028 Capped Call Transactions. As of December 31, 2025, no 2028 Capped Call Transactions had been exercised.
Pursuant to their terms, the 2028 Capped Call Transactions qualify for classification within stockholders’ equity in our consolidated balance sheets, and their fair value is not remeasured and adjusted as long as they continue to qualify for stockholders’ equity classification. We paid approximately $69.1 million for the 2028 Capped Call Transactions, including applicable transaction costs, which was recorded as a reduction to additional paid-in capital in our consolidated balance sheets. The 2028 Capped Call Transactions are separate transactions entered into by us with certain counterparties, are not part of the terms of the 2028 Convertible Notes, and do not affect any holder’s rights under the 2028 Convertible Notes. Holders of the 2028 Convertible Notes do not have any rights with respect to the 2028 Capped Call Transactions.
0.25% Convertible Notes due 2027
In March 2021, we completed the sale of $805.0 million in aggregate principal amount of 0.25% Convertible Senior Notes due 2027 (the “2027 Convertible Notes”). The net proceeds from the issuance of the 2027 Convertible Notes, after deducting the initial purchasers’ fee of $20.1 million, was approximately $784.9 million. We also incurred additional debt issuance costs totaling $0.4 million. Debt issuance costs and the initial purchasers’ fee are presented as a debt discount.
The 2027 Convertible Notes pay interest semi-annually in arrears on March 1st and September 1st of each year at an annual rate of 0.25%. The 2027 Convertible Notes are general unsecured obligations and rank senior in right of payment to all indebtedness that is expressly subordinated in right of payment to the 2027 Convertible Notes, rank equally in right of payment with all existing and future liabilities that are not so subordinated, are effectively junior to any secured indebtedness to the extent of the value of the assets securing such indebtedness and are structurally subordinated to all indebtedness and other liabilities (including trade payables) of our current or future subsidiaries. The 2027 Convertible Notes have a maturity date of March 1, 2027.
Holders may convert their 2027 Convertible Notes at their option only in the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on June 30, 2021, if the last reported sale price per share of common stock exceeds 130% of the conversion price for each of at least 20 trading days during the 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter; (2) during the five consecutive business days immediately after any five consecutive trading day period (such five consecutive trading day period, the “measurement period”) in which the trading price per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price per share of our common stock on such trading day and the conversion rate on such trading day; (3) upon the occurrence of certain corporate events or distributions on our common stock, as described in the indenture for the 2027 Convertible Notes; (4) if we call such notes for redemption; and (5) at any time from, and including, September 1, 2026 until the close of business on the scheduled trading day immediately before the maturity date. As of December 31, 2025, the 2027 Convertible Notes were not convertible.
Upon conversion, we will pay cash for the settlement of principal and for the premium, if applicable, we will pay cash, deliver shares of common stock or a combination of cash and shares of common stock, at our election. The initial conversion rate for the 2027 Convertible Notes is 12.9576 shares of common stock per $1,000 in principal amount of 2027 Convertible Notes, equivalent to a conversion price of approximately $77.17 per share of our common stock. The conversion rate is subject to adjustment.
In connection with the offering of the 2032 Convertible Notes and 2031 Convertible Notes, we used a portion of the net proceeds of the offering to enter into privately negotiated agreement with certain holder of its outstanding 2027 Convertible Notes to repurchase their 2027 Convertible Notes for cash. In connection with the repurchases, we paid approximately $676.8 million in cash, which included a premium, inducement expense and accrued interest.
As of December 31, 2025, we were in compliance with all covenants.
1.25% Convertible Notes due 2024
In November 2019, we completed the sale of $460.0 million in aggregate principal amount of 1.25% Convertible Senior Notes due 2024 (the “2024 Convertible Notes”). The net proceeds from the issuance of the 2024 Convertible Notes, after deducting the initial purchasers’ fee of $12.7 million, was approximately $447.3 million. We also incurred debt issuance cost totaling $0.3 million. Debt issuance costs and the initial purchasers’ fee were presented as a debt discount.
In January 2021, we notified the note holders of our irrevocable election to settle the principal of the 2024 Convertible Notes in cash and for the premium, to deliver shares of common stock. The conversion rate for the 2024 Convertible Notes was 41.9208 shares of common stock per $1,000 in principal amount of 2024 Convertible Notes, equivalent to a conversion price of approximately $23.85 per share of our common stock. The conversion rate was subject to adjustment.
In January 2023, we issued a notice for the redemption of 2024 Convertible Notes. Holders of the notes could convert their notes at any time prior to the close of the business day prior to the redemption date. In March 2023, holders of the notes elected to convert the 2024 Convertible Notes in full. In connection with the conversion, we paid approximately $13.5 million in cash which included principal and accrued interest, and issued 288,886 shares of our common stock representing the intrinsic value based on the contractual conversion rate.
Net Carrying Amounts of our Convertible Notes
The carrying amount and fair value of our Convertible Notes were as follows (in thousands).
December 31,
2025		December 31,
2024
Principal amount
2027 Convertible Notes$209,575 $805,000 
2028 Convertible Notes469,999 720,000 
2031 Convertible Notes
750,000 — 
2032 Convertible Notes
750,000 — 
Total principal amount
$2,179,574 $1,525,000 
Unamortized debt discount
2027 Convertible Notes$(1,058)$(7,518)
2028 Convertible Notes(5,561)(11,684)
2031 Convertible Notes
(15,108)— 
2032 Convertible Notes
(15,217)— 
Total unamortized debt discount$(36,944)$(19,202)
Carrying amount
2027 Convertible Notes$208,517 $797,482 
2028 Convertible Notes464,438 708,316 
2031 Convertible Notes
734,892 — 
2032 Convertible Notes
734,783 — 
Total carrying amount$2,142,630 $1,505,798 
Fair value based on trading levels (Level 2)
2027 Convertible Notes$229,736 $769,218 
2028 Convertible Notes624,690 779,882 
2031 Convertible Notes
755,655 — 
2032 Convertible Notes
764,213 — 
Total fair value of outstanding notes$2,374,294 $1,549,100 
The following table summarizes the components of interest expense and the effective interest rates for each of our Convertible Notes (in thousands).
Year Ended December 31,
202520242023
Coupon interest
2024 Convertible Notes$— $— $36 
2027 Convertible Notes1,810 2,013 2,013 
2028 Convertible Notes6,860 7,200 7,200 
2032 Convertible Notes
893 — — 
Total coupon interest
$9,563 $9,213 $9,249 
Amortization of debt discount
2024 Convertible Notes$— $— $24 
2027 Convertible Notes3,029 3,432 3,409 
2028 Convertible Notes2,980 3,118 3,073 
2031 Convertible Notes
397 — — 
2032 Convertible Notes
289 — — 
Total amortization of debt discount$6,695 $6,550 $6,506 
Interest expense
2024 Convertible Notes$— $— $60 
2027 Convertible Notes4,839 5,445 5,422 
2028 Convertible Notes9,840 10,318 10,273 
2031 Convertible Notes
397 — — 
2032 Convertible Notes
1,182 — — 
Total interest expense$16,258 $15,763 $15,755 
Effective interest rates
2027 Convertible Notes0.7 %0.7 %0.7 %
2028 Convertible Notes1.5 %1.5 %1.5 %
2031 Convertible Notes
0.4 %— %— %
2032 Convertible Notes
1.2 %— %— %
Revolving Credit and Term Loan Facilities
In May 2022, we entered into a credit agreement, which was subsequently amended (i) in August 2022 (the “First Amendment”), (ii) in March 2023 (the “Second Amendment”) and (iii) in November 2025 (the “Third Amendment”) with Bank of America, N.A., as Administrative Agent, Swing Line Lender and an L/C Issuer, and the other lenders and L/C Issuers party thereto (the credit agreement as amended by the First Amendment, the Second Amendment and the Third Amendment, the “2022 Credit Agreement”), evidencing a credit facility (the “2022 Facility”) that provides for a $750 million revolving credit facility (the “Amended Revolving Credit Facility”). The Amended Revolving Credit Facility will mature on the earlier of (a) November 5, 2030 and (b) the Springing Revolver Maturity Date (as defined in the 2022 Credit Agreement), unless the Amended Revolving Credit Facility is extended prior to such date in accordance with the 2022 Credit Agreement.
Borrowings under the Amended Revolving Credit Facility bear interest at a rate equal to an applicable margin plus: (a) the applicable Term SOFR (as defined in the Credit Agreement) rate, or (b) a base rate determined by reference to the highest of (1) the federal funds effective rate plus 0.50%, (2) the Bank of America prime rate, (3) the Term SOFR rate for an interest period of one month plus 1.00%, and (4) 1.00%. The applicable margin for the Amended Revolving Credit Facility ranges, based on our consolidated total net leverage ratio, from 0.25% to 1.25% in the case of base rate loans and from 1.25% to 2.25% in the case of Term SOFR rate loans. In addition to paying interest on the outstanding principal under the Amended Revolving Credit
Facility, we will pay (i) a commitment fee in respect of the unutilized commitments thereunder and (ii) customary letter of credit fees and agency fees.
The margin for the 2022 Facility ranges, based on our consolidated total net leverage ratio, from 0.25% to 1.25% in the case of base rate loans and from 1.25% to 2.25% in the case of Term SOFR rate loans. In addition to paying interest on the outstanding principal under the 2022 Facility, we will pay (i) a commitment fee in respect of the unutilized commitments thereunder and (ii) customary letter of credit fees and agency fees. The commitment fees range from 0.15% to 0.35% per annum based on our consolidated net leverage ratio.
As of December 31, 2025, the Revolving Credit Facility was undrawn. We incurred a total of $7.3 million in third-party costs related to the 2022 Credit Agreement which are recorded as debt issuance cost within prepaid expenses and other assets in our consolidated balance sheets. As of December 31, 2025, the unamortized debt issuance cost related to the revolving credit facility was $4.6 million.

Future maturities and interest payments of long-term debt as of December 31, 2025, are as follows (in thousands):
2026$11,841 
2027221,099 
2028481,261 
20296,563 
20306,563 
Thereafter1,513,125 
Total minimum payments2,240,452 
Less amount representing coupon interest(60,878)
Gross balance of long-term debt2,179,574 
Less unamortized debt discount(36,944)
Carrying value of long-term debt2,142,630 
Less current portion of long-term debt— 
Long-term debt, less current portion and unamortized debt discount$2,142,630 
v3.25.4
Stockholders' Equity
 12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Stockholders' Equity Stockholders’ Equity
Share-based Compensation
We currently grant stock options, RSUs and PSUs under our Amended and Restated 2021 Stock Plan (“2021 Stock Plan”), which was approved by the stockholders on May 5, 2021 and provides for the grant of up to 17.8 million shares of common stock to selected employees, consultants and non-employee members of our Board of Directors as stock options, stock appreciation rights, RSUs and PSUs. Awards are subject to terms and conditions established by the Compensation Committee of our Board of Directors. During the year ended December 31, 2025, we granted share-based awards under the 2021 Stock Plan. As of December 31, 2025, 6.9 million shares were subject to outstanding awards and 8.1 million shares were available for future grants of share-based awards.
The following table summarizes share-based compensation expense included in our consolidated statements of income related to share-based awards excluding the acceleration of Elektrofi and Surf Bio equity awards (in thousands):
Year Ended December 31,
 202520242023
Research and development$14,555 $12,985 $13,345 
Selling, general and administrative37,010 30,400 23,275 
Total share-based compensation expense
$51,565 $43,385 $36,620 
Share-based compensation expense by type of share-based award was as follows (in thousands):
Year Ended December 31,
 202520242023
Stock options$15,650 $16,078 $16,351 
RSUs, PSUs and ESPP
35,915 27,307 20,269 
Total share-based compensation expense
$51,565 $43,385 $36,620 
Total unrecognized estimated compensation cost by type of award and the weighted-average remaining requisite service period over which such expense is expected to be recognized as of December 31, 2025 (in thousands, unless otherwise noted):
December 31, 2025
 Unrecognized
Expense
Remaining
Weighted-Average
Recognition Period
( in years)
Stock options$31,516 2.25
RSUs56,647 2.47
PSUs23,426 1.95
ESPP270 0.34
ESPP. In February 2021, our Board of Directors approved our 2021 ESPP and our stockholders approved the plan in May 2021. The 2021 ESPP enables eligible employees to purchase shares of our common stock at the end of each offering period at a price equal to 85% of the fair market value of the shares on the first business day or the last business day of the offering period, whichever is lower. Share purchases are funded through payroll deduction of at least 1% and up to 15% of an employee’s compensation for each payroll period, and no employee may purchase shares under the 2021 ESPP that exceeds $25,000 worth of our common stock for a calendar year. As of December 31, 2025, 2,516,896 shares were available for future purchase. The offering period is generally for a six-month period and the first offering period commenced on June 16, 2021. Offering periods shall commence on or about the sixteenth day of June and December of each year and end on or about the fifteenth day of the next December and June, respectively, occurring thereafter. During the twelve months ended December 31, 2025, 42,698 shares were issued pursuant to the 2021 ESPP.
Stock Options. Options granted under the 2021 Stock Plan must have an exercise price equal to at least 100% of the fair market value of our common stock on the date of grant. The options generally have a maximum contractual term of ten years and vest at the rate of one-fourth of the shares on the first anniversary of the date of grant and 1/48 of the shares monthly thereafter. Certain option awards provide for accelerated vesting if there is a change in control (as defined in the 2021 Stock Plan).
A summary of our stock option award activity as of and for the year ended December 31, 2025 is as follows: 
Shares
Underlying
Stock Options		Weighted
Average Exercise
Price per Share
Weighted
Average
Remaining
Contractual
Term (in years)
Aggregate
Intrinsic
Value (in millions)
Outstanding as of December 31, 2024
5,476,206 $31.83 
Granted781,657 46.71 
Exercised(1,122,386)24.91 
Canceled/forfeited(276,344)44.62 
Outstanding as of December 31, 2025
4,859,133 35.10 5.90$70.5 
Vested and expected to vest as of December 31, 2025
4,859,133 35.10 5.9070.5 
Exercisable as of December 31, 2025
3,371,956 $30.87 4.82$58.5 
The weighted average grant date fair value of options granted during the years ended December 31, 2025, 2024 and 2023 was $29.52 per share, $17.75 per share and $17.72 per share, respectively. The total intrinsic value of options exercised during the years ended December 31, 2025, 2024 and 2023 was approximately $46.3 million, $31.4 million and $13.7 million, respectively. Cash received from stock option exercises for the years ended December 31, 2025, 2024 and 2023 was approximately $28.0 million, $32.7 million and $10.0 million, respectively.
The exercise price of stock options granted is equal to the closing price of the common stock on the date of grant. The fair value of each option award is estimated on the date of grant using the Black-Scholes-Merton option pricing model (“Black-Scholes Model”). Expected volatility is based on historical volatility of our common stock. The expected term of options granted is based on analyses of historical employee termination rates and option exercises. The risk-free interest rate is based on the U.S. Treasury yield for a period consistent with the expected term of the option in effect at the time of the grant. The dividend yield assumption is based on the expectation of no future dividend payments. The assumptions used in the Black-Scholes Model were as follows:
Year Ended December 31,
 202520242023
Expected volatility
39.68 - 42.14%
40.01 - 42.13%
39.68 - 40.82%
Average expected term (in years)4.85.04.8
Risk-free interest rate
3.67 - 4.34%
3.65 - 4.70%
3.37 - 4.72%
Expected dividend yield— — — 
Restricted Stock Units. A RSU is a promise by us to issue a share of our common stock upon vesting of the unit. RSUs will generally vest at the rate of one-fourth of the shares on each anniversary of the date of grant.
The following table summarizes our RSU activity during the year ended December 31, 2025:
Number of
Shares		Weighted
Average
Grant Date
Fair Value
Weighted
Average
Remaining
Contractual
Term (in years)
Aggregate
Intrinsic
Value (in millions)
Outstanding as of December 31, 2024
1,398,776 $42.43 
Granted772,787 60.04 
Vested(459,420)42.53 
Forfeited(190,237)47.59 
Outstanding as of December 31, 2025
1,521,906 $50.69 1.33$72.8 
The estimated fair value of the RSUs was based on the closing market value of our common stock on the date of grant. The total grant date fair value of RSUs vested during the years ended December 31, 2025, 2024 and 2023 was approximately $19.5 million, $15.5 million and $12.9 million, respectively. The fair value of RSUs vested during the years ended December 31, 2025, 2024 and 2023 was approximately $26.8 million, $16.5 million and $18.3 million, respectively.
Performance Stock Units. A PSU is a promise by us to issue a share of our common stock upon achievement of a specific performance condition.
The following table summarizes our PSU activity during the year ended December 31, 2025:
Number of
Shares		Weighted
Average
Grant Date
Fair Value
Outstanding as of December 31, 2024
482,403 $46.64 
Granted442,868 49.05 
Vested(154,032)41.79 
Forfeited(55,096)53.70 
Outstanding as of December 31, 2025
716,143 $48.63 
The estimated fair value of the PSUs was based on the closing market value of our common stock on the date of grant. The fair value of PSUs vested during the years ended December 31, 2025, 2024 and 2023 was $9.0 million, $1.6 million and $0.2 million, respectively.
Share Repurchases
In December 2021, our Board of Directors authorized a capital return program to repurchase up to $750.0 million of our outstanding common stock over a three-year period which we completed in June 2024. A total of 19.1 million shares were repurchased over the three-year period at an average price per share of $39.31.
In February 2024, our Board of Directors authorized a new capital return program to repurchase up to $750.0 million of our outstanding common stock. In December 2024, we entered into an Accelerated Share Repurchase (“ASR”) agreement with Bank of America, N.A. to repurchase $250.0 million of our outstanding common stock. Pursuant to the agreement, at the inception of the ASR, we paid $250.0 million to Bank of America, N.A. and took initial delivery of 4.2 million shares, representing approximately 80 percent of the total shares to be repurchased under the ASR agreement measured based on the closing price of our common stock on the transaction trade date. In March 2025, we finalized the ASR transaction resulting in a total repurchase of 4.7 million shares at an average price of $53.95 per share.
In May 2025, we announced a second $250.0 million share repurchase under the $750.0 million approved program from February 2024. The second $250.0 million share repurchase was completed in June 2025, resulting in a total purchase of 4.8 million shares at an average price of $52.09 per share.
In June 2025, we initiated the third $250.0 million share repurchase tranche under the $750.0 million approved program from February 2024. As of December 31, 2025, $92.3 million has been used to repurchase approximately 1.7 million shares at an average price of $52.89 per share.
We had the following share repurchase activity under the approved share repurchase program (in thousands, except share and per share amounts):
2025
Total Number of Shares Purchased
Weighted-Average Price Paid Per Share
Total Cost
First quarter(1)
452,453 $53.95 $24,410 
Second quarter(2)
5,818,338 52.16 303,490 
Third quarter(2)
725,514 53.59 38,882 
Fourth quarter
— — — 
6,996,305 $52.42 $366,782 
(1) The shares we repurchased during the first quarter are part of the ASR initiated in December 2024.
(2) Included in the total cost of shares purchased is a commission fee of $0.02 per share.
All shares repurchased under our capital return programs have been retired and have resumed their status of authorized and unissued shares.
v3.25.4
Earnings per share
 12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Earnings per share Earnings per share
Basic earnings per share is computed by dividing net income for the period by the weighted average number of common shares outstanding during the period, without consideration for common stock equivalents. Outstanding stock options, unvested RSUs, unvested PSUs, common shares expected to be issued under our ESPP and the Convertible Notes are considered common stock equivalents and are only included in the calculation of diluted earnings per common share when net income is reported and their effect is dilutive.
Potentially dilutive common shares issuable upon vesting of stock options, RSUs and PSUs are determined using the average share price for each period under the treasury stock method. Potentially dilutive common shares issuable upon conversion of the Convertible Notes are determined using the if-converted method. Since we have committed to settle the principal amount of the Convertible Notes in cash upon conversion only, the number of shares for the conversion spread will be included as a dilutive common stock equivalent.
A reconciliation of the numerators and the denominators of the basic and diluted earnings per share computations is as follows (in thousands, except per share amounts):
Year Ended December 31,
 202520242023
Numerator
Net income$316,889 $444,091 $281,594 
Denominator
Weighted average common shares outstanding for basic earnings per share
119,840 126,827 131,927 
Dilutive potential common stock outstanding
Stock options
2,077 1,827 1,824 
RSUs, PSUs and ESPP
969 696 388 
Convertible Notes1,018 74 58 
Weighted average common shares outstanding for diluted earnings per share
123,904 129,424 134,197 
Earnings per share
Basic$2.64 $3.50 $2.13 
Diluted$2.56 $3.43 $2.10 
Shares which have been excluded from the calculation of diluted earnings per common share because their effect was anti-dilutive include the following (shares in millions):
Year Ended December 31,
 202520242023
Anti-dilutive securities(1)
24.6 26.1 27.8 
(1)    The anti-dilutive securities include outstanding stock options, unvested RSUs, unvested PSUs, common shares expected to be issued under our ESPP and Convertible Notes.
v3.25.4
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Operating Leases
Our properties consist of leased office, laboratory, warehouse and assembly facilities. Our administrative offices and research facilities are located in San Diego, California. We also lease a building in Minnetonka, Minnesota consisting of office, assembly operations, and warehousing space, two leased buildings in Boston, Massachusetts consisting of office and lab space and have a small leased administrative office in Ewing, New Jersey. We lease an aggregate of approximately 196,000 square feet of space. We pay a pro rata share of operating costs, insurance costs, utilities and real property taxes. Additionally, we lease certain office equipment and vehicles under operating leases. Total rent expense was approximately $9.4 million, $8.6 million and $9.3 million for the years ended December 31, 2025, 2024 and 2023, respectively.
Approximate annual future minimum operating lease payments as of December 31, 2025 are as follows (in thousands): 
Year
Operating
Leases
2026$11,277 
20279,005 
20287,857 
20296,271 
20305,334 
Thereafter747 
Total minimum lease payments40,491 
Less imputed interest(5,922)
Total$34,569 
The weighted-average remaining lease term of our operating leases is approximately 4.16 years.
Legal Contingencies
From time to time, we may be involved in disputes, including litigation, relating to claims arising out of operations in the normal course of our business. Any of these claims could subject us to costly legal expenses and, while we generally believe that we have adequate insurance to cover many different types of liabilities, our insurance carriers may deny coverage or our policy limits may be inadequate to fully satisfy any damage awards or settlements. If this were to happen, the payment of any such awards could have a material adverse effect on our consolidated statements of income and balance sheets. Additionally, any such claims, whether or not successful, could damage our reputation and business. We currently are not a party to any legal proceedings, the adverse outcome of which, in our opinion, individually or in the aggregate, would have a material adverse effect on our consolidated statements of income or balance sheets.
v3.25.4
Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Total income before income tax expense summarized by region was as follows (in thousands):
Year Ended December 31,
202520242023
United States$467,527 $557,852 $348,828 
Foreign(652)(720)(499)
Income before income tax expense
$466,875 $557,132 $348,329 
Significant components of our net deferred tax assets (liabilities) were as follows (in thousands).
December 31,
20252024
Deferred tax assets
Net operating loss carryforwards$60,853 $20,736 
Capped call transactions
46,806 — 
Research and development and credits
22,308 17,868 
Share-based compensation9,960 6,567 
ASC 842 lease liability7,927 7,126 
Capitalized research expense5,370 30,253 
Inventory related reserves19,691 19,867 
Other, net16,949 4,206 
Total deferred tax assets189,864 106,623 
Valuation allowance for deferred tax assets(878)(2,363)
Deferred tax assets, net of valuation allowance188,986 104,260 
Deferred tax liabilities
Non-deductible book amortization (217,883)(89,247)
ASC 842 right of use asset(8,589)(7,882)
Other, net(5,438)(3,276)
Total deferred tax liabilities(231,910)(100,405)
Net deferred tax (liabilities) asset
$(42,924)$3,855 
A valuation allowance of $0.9 million and $2.4 million has been established to offset the net DTAs as of December 31, 2025 and 2024, respectively, as realization of such assets is uncertain.
On a periodic basis, we reassess the valuation allowance of our DTAs, weighing all positive and negative evidence, to assess if it is more-likely-than-not that some or all our DTAs will be realized. After assessing both positive and negative evidence, we determined that it was more likely than not that our DTAs would be realized except for certain deferred tax assets associated with net operating losses in foreign jurisdictions where we do not expect benefit.
Income tax expense (benefit) was comprised of the following components (in thousands):
Year Ended December 31,
202520242023
Current - federal$137,708 $98,139 $24,963 
Current - state16,741 13,762 5,717 
Deferred - federal(4,769)1,815 34,037 
Deferred - state306 (675)2,018 
Total income tax expense
$149,986 $113,041 $66,735 
The provision for income taxes on earnings subject to income taxes differs from the statutory federal income tax rate due to the following (dollars in thousands):
Year Ended December 31,
202520242023
DollarPercentDollarPercentDollarPercent
U.S. federal statutory tax expense and rate
$98,044 21.00 %$116,998 21.00 %$73,254 21.00 %
State and local income taxes, net of federal income tax effect(1)
13,252 2.84 %10,963 1.97 %4,134 1.19 %
Foreign tax effects
137 0.03 %151 0.03 %105 0.03 %
Effect of cross-border tax laws
Foreign-derived intangible income
(22,921)(4.91)%(19,644)(3.53)%(11,989)(3.44)%
Tax credits
Research and development tax credits
(1,840)(0.39)%(1,457)(0.27)%(4,394)(1.26)%
Changes in valuation allowances
(1,498)(0.32)%96 0.02 %
Nontaxable or non-deductible items
Non-deductible acquired IPR&D
59,826 12.81 %— — %— — %
Other
5,458 1.17 %1,942 0.35 %2,605 0.75 %
Changes in unrecognized tax benefits
655 0.14 %2,610 0.47 %455 0.13 %
Other adjustments
(1,127)(0.24)%1,382 0.25 %2,565 0.73 %
Income tax expense and effective income tax rate
$149,986 32.13 %$113,041 20.29 %$66,735 19.13 %
(1) State taxes in NY, NJ, MN, PA, CA and MA made up the majority (greater than 50%) of the tax effect in this category.
As of December 31, 2025, our unrecognized tax benefit and uncertain tax positions were $26.9 million, of which $25.7 million will impact the effective tax rate when resolved. Interest and/or penalties related to uncertain income tax positions are recognized by us as a component of income tax expense. For the years ended December 31, 2025, 2024 and 2023, we recognized an immaterial amount of interest and penalties.
The following table summarizes the activity related to our unrecognized tax benefits (in thousands):
Year Ended December 31,
202520242023
Gross unrecognized tax benefits, beginning of period
$24,519 $21,918 $19,482 
Increases in tax positions for current year
702 612 791 
Increases in tax positions for prior years
244 2,181 1,645 
Increases in tax positions related to business acquisition
1,418 — — 
Decreases in tax positions for prior years and lapse in statute of limitations
(18)(192)— 
Gross unrecognized tax benefits, end of period$26,865 $24,519 $21,918 
As of December 31, 2025, we had U.S. federal, California, Massachusetts and other state net operating loss carryforwards of approximately $145.6 million, $236.5 million, $139.2 million and $60.6 million, respectively. The U.S. federal net operating loss will carry forward indefinitely until utilized. State net operating losses will begin to expire in 2029 unless previously utilized.
As of December 31, 2025, we had U.S. federal, California and Massachusetts research and development tax credit carryforwards of approximately $4.9 million, $25.1 million and $2.5 million, respectively. The U.S. federal research and development tax credits will begin to expire in 2040 unless previously utilized. The California research and development tax credits will carry forward indefinitely until utilized. The Massachusetts research and development tax credits will begin to expire in 2036 unless previously utilized.
Pursuant to Internal Revenue Code Section 382, the annual use of the net operating loss carryforwards and research and development tax credits could be limited by any greater than 50% ownership change during any three-year testing period. As a result of any such ownership change, portions of our net operating loss carryforwards and research and development tax credits are subject to annual limitations. We completed an updated Section 382 analysis regarding the limitation of the net operating losses and research and development credits as of the acquisition of Antares and Elektrofi. Based upon the analysis, we determined that ownership changes occurred in prior years; however, the annual limitations on net operating loss and research and development tax credit carryforwards will not have a material impact on the future utilization of such carryforwards.
We do not provide for U.S. income taxes on the undistributed earnings of our foreign subsidiary as it is our intention to utilize those earnings in the foreign operations for an indefinite period of time. As of December 31, 2025 and 2024, there were no undistributed earnings in foreign subsidiaries.
We are subject to taxation in the U.S. and in various state and foreign jurisdictions. Our tax years for 2008 and forward are subject to examination by the U.S. federal and state tax authorities due to the carryforward of unutilized net operating losses and research and development credits.
Income taxes paid, net of refunds, are as following (in thousands):
Year Ended December 31,
202520242023
U.S. Federal
$119,100 $65,000 $22,621 
State
Pennsylvania(1)
— — 3,320 
All other states
15,541 15,618 5,815 
Total income taxes paid, net of refunds
$134,641 $80,618 $31,756 
(1)    Jurisdiction in which income taxes paid, net of refunds, exceeded 5% of the total income taxes paid, net of refunds. The amount of income taxes paid, net of refunds, during the years ended December 31, 2024 and December 31, 2025 did not meet the 5% disaggregation threshold, and therefore, is included in “All other states.”
v3.25.4
Employee Savings Plan
 12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Employee Savings Plan Employee Savings Plan
We have an employee savings plan pursuant to Section 401(k) of the Internal Revenue Code. All employees are eligible to participate, provided they meet the requirements of the plan. We are not required to make matching contributions under the plan. However, we voluntarily contributed to the plan approximately $3.6 million, $3.3 million and $3.3 million for the years ended December 31, 2025, 2024 and 2023, respectively.
v3.25.4
Schedule II - Valuation and Qualifying Accounts
 12 Months Ended
Dec. 31, 2025
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]  
Schedule II - Valuation and Qualifying Accounts
Schedule II - Valuation and Qualifying Accounts
(in thousands)
Balance at Beginning of PeriodAcquiredAdditionsDeductionsBalance at End of Period
For the year ended December 31, 2025
Accounts receivable allowances (1)
$8,737 $— $64,702 $(63,833)$9,606 
For the year ended December 31, 2024
Accounts receivable allowances (1)
$6,747 $— $54,090 $(52,100)$8,737 
For the year ended December 31, 2023
Accounts receivable allowances (1)
$1,914 $— $49,596 $(44,763)$6,747 
(1)Allowances are for chargebacks, prompt payment discounts and distribution fees related to proprietary product sales.
v3.25.4
Insider Trading Arrangements
 3 Months Ended
Dec. 31, 2025
shares
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement
During the three months ended December 31, 2025, the following officers adopted or terminated a Rule 10b5-1 trading arrangement (as such terms are defined pursuant to Item 408 of Regulation S-K) as noted in the table below.
Trading Arrangement
Name and Title
Action
Date
Rule 10b5-1*
Non-Rule 10b5-1**
Total Shares To Be Sold
Expiration Date
Helen Torley
Adoption
12/3/2025
X
700,0007/30/2027
President and Chief Executive Officer
Nicole LaBrosse
Termination
12/2/2025
X
17,110
***
Terminated
Senior Vice President and Chief Financial Officer
*    Contract, instruction or written plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act.
** Non-Rule 10b5-1 trading arrangement as defined in Item 408(c) of Regulation S-K under the Exchange Act.
*** Includes restricted stock units less the amount of shares that will be withheld to satisfy the payment of tax withholding obligations due upon vesting.
Non-Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Terminated false
Helen Torley [Member]  
Trading Arrangements, by Individual  
Name Helen Torley
Title President and Chief Executive Officer
Rule 10b5-1 Arrangement Adopted true
Adoption Date 12/3/2025
Expiration Date 7/30/2027
Arrangement Duration 604 days
Aggregate Available 700,000
Nicole LaBrosse [Member]  
Trading Arrangements, by Individual  
Name Nicole LaBrosse
Title Senior Vice President and Chief Financial Officer
Rule 10b5-1 Arrangement Terminated true
Termination Date 12/2/2025
Aggregate Available 17,110
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]
The IRP provides our management and information technology personnel with processes and procedures for assessing, identifying, managing and escalating material risks from cybersecurity threats which have been integrated into our overall risk management processes. For example, our enterprise risk management processes involve the identification of events that may arise in the course of operating our business and the potential impact of such events on our business. We have identified and prioritized cybersecurity events as requiring increased managerial focus and urgency in actions taken to mitigate cybersecurity risks due to the potential impact such events could have on our business. Although the risks from cybersecurity threats have not materially affected our business strategy, results of operations or financial condition, it is possible that a cybersecurity incident resulting in a serious compromise of our IT Systems or a demand for payment to restore our IT Systems, could have a material adverse effect on us by negatively impacting our ability to operate our business effectively and by diverting the attention of our management and other resources, including financial resources, to address the cybersecurity incident. Despite our efforts to mitigate the risks associated with cybersecurity threats, we cannot eliminate all such risks or provide assurance that we have not experienced undetected cybersecurity incidents. For additional information about these risks, see Part I, Item 1A, “Risk Factors” in this Annual Report on Form 10-K.
In connection with our processes for assessing, identifying and managing risk from cybersecurity, we engage various third parties to assist in managing these processes including:
•Outside cybersecurity legal counsel to assist in updating our IRP and for consultation and coordination with other third parties in the event of a cyber incident;
•Cybersecurity vendors that would perform various investigation services in the event of a cyber incident including assisting in determining the type of attack and impact to our information technology network, maintaining cybersecurity vigilance and assisting with the recovery and restoration of any impacted IT System services;
•Cybersecurity experts who would, in the event of a cybersecurity incident, assist with validation of the incident; and
•Vendors that would provide breach response services such as communications, notification to third parties and credit monitoring.
In addition to our IRP, we have also implemented processes to oversee and identify risks from cybersecurity threats associated with our use of third-party service providers. For example, where appropriate, we seek to negotiate contractual terms with certain third-party service providers that impose obligations on such service providers with the goal of protecting our confidential information.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block]
The IRP provides our management and information technology personnel with processes and procedures for assessing, identifying, managing and escalating material risks from cybersecurity threats which have been integrated into our overall risk management processes. For example, our enterprise risk management processes involve the identification of events that may arise in the course of operating our business and the potential impact of such events on our business. We have identified and prioritized cybersecurity events as requiring increased managerial focus and urgency in actions taken to mitigate cybersecurity risks due to the potential impact such events could have on our business. Although the risks from cybersecurity threats have not materially affected our business strategy, results of operations or financial condition, it is possible that a cybersecurity incident resulting in a serious compromise of our IT Systems or a demand for payment to restore our IT Systems, could have a material adverse effect on us by negatively impacting our ability to operate our business effectively and by diverting the attention of our management and other resources, including financial resources, to address the cybersecurity incident. Despite our efforts to mitigate the risks associated with cybersecurity threats, we cannot eliminate all such risks or provide assurance that we have not experienced undetected cybersecurity incidents. For additional information about these risks, see Part I, Item 1A, “Risk Factors” in this Annual Report on Form 10-K.
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 Incident Response Team has the primary responsibility of assessing and managing risks from cybersecurity threats and implementing the various stages of our IRP set forth above. The Incident Response Team is comprised of the following IT Systems management personnel and members of senior management:
•Chief Information Officer (“CIO”) – Our CIO has over 25 years of information technology experience across a wide range of industry sectors including life sciences, medical device, pharmaceutical, real estate and software development with responsibility in cybersecurity, data analytics and GenAI implementations for the last 10 years, and 20 years of business continuity planning and disaster recovery planning and execution. Our CIO has oversight of our cybersecurity strategy and building out our cybersecurity capabilities and infrastructure in response to the growing threat from potential cyber security incidents on our IT Systems. Our CIO is also responsible for the integration of our cybersecurity management into our overall enterprise risk management strategy;
•Senior Director, Information Technology (“IT Security Director”) – Our IT Security Director has over 25 years of extensive experience in IT Operations and cybersecurity, with previous experience in the defense, financial services, and life sciences industries. Our IT Security Director holds a master’s degree in cybersecurity and brings in-depth expertise across modern cybersecurity domains, including cloud security, data privacy, threat intelligence, vulnerability management, identity and access management, incident response, and security operations. In this role, the IT Security Director leads the organization’s cybersecurity efforts under the guidance of the CIO, advancing and maturing our cybersecurity program across all critical domains;
•Senior Vice President, Chief Legal Officer – Our Chief Legal Officer oversees our enterprise risk management strategy and serves as the executive management representative on our Incident Response Team; and
•Vice President, Business Continuity and Sustainable Operations (“VP Business Continuity”) – Our VP Business Continuity has responsibility for overseeing our Business Continuity Plan which incorporates our IRP. Our VP Business Continuity has over 15 years leading the business continuity programs for various companies and has training on ISO 22301 (the Business Continuity ISO Standard).
Under its committee charter, the Audit Committee of the Board of Directors (the “Audit Committee”) is responsible for discussing with senior management our policies with respect to risk assessment and risk management and for discussing with management our financial risk exposures and the steps management has taken to monitor and control such exposures. In particular, the Audit Committee oversees our cybersecurity strategy designed to identify, assess and mitigate cybersecurity risks, and reviews our cybersecurity and other information technology risks, controls and procedures, and receives periodic updates from management on cybersecurity regarding the adequacy and effectiveness of our cybersecurity measures. In fulfilling this oversight responsibility, the Audit Committee receives a periodic update of our cybersecurity strategy. Included in this review is a thorough discussion of the risks from cybersecurity threats including the potential impact of such threats to our operations. Specifically, with respect to cybersecurity risks, Incident Response Team members report to the Audit Committee on the (i) potential impact of the risk to the business, (ii) our current capabilities in managing such risks, (iii) the urgency for action in managing such risks and (iv) the outlook for a potential impact on us as a result of the risk. The Audit Committee also receives reports from members of the Incident Response Team on our mitigation efforts to address cybersecurity risks.
We have also instituted a separate process for communicating with the Audit Committee regarding any risks from an actual cybersecurity threat in the event we are the target of a specific cybersecurity incident. As part of our response to such an incident, members of the Incident Response Team would provide an initial awareness communication of the incident to our Chief Financial Officer then to the Chief Executive Officer who would in turn inform the Chairman of our Board of Directors (“Board Chair”) and the Chair of the Audit Committee (“Audit Committee Chair”). Following an initial assessment of the incident by senior management and IT Systems personnel, we would provide a follow-up communication to the Board Chair and Audit Committee Chair and determine whether further escalation to the full Board of Directors is warranted.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block]
Under its committee charter, the Audit Committee of the Board of Directors (the “Audit Committee”) is responsible for discussing with senior management our policies with respect to risk assessment and risk management and for discussing with management our financial risk exposures and the steps management has taken to monitor and control such exposures. In particular, the Audit Committee oversees our cybersecurity strategy designed to identify, assess and mitigate cybersecurity risks, and reviews our cybersecurity and other information technology risks, controls and procedures, and receives periodic updates from management on cybersecurity regarding the adequacy and effectiveness of our cybersecurity measures. In fulfilling this oversight responsibility, the Audit Committee receives a periodic update of our cybersecurity strategy. Included in this review is a thorough discussion of the risks from cybersecurity threats including the potential impact of such threats to our operations. Specifically, with respect to cybersecurity risks, Incident Response Team members report to the Audit Committee on the (i) potential impact of the risk to the business, (ii) our current capabilities in managing such risks, (iii) the urgency for action in managing such risks and (iv) the outlook for a potential impact on us as a result of the risk. The Audit Committee also receives reports from members of the Incident Response Team on our mitigation efforts to address cybersecurity risks.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] In fulfilling this oversight responsibility, the Audit Committee receives a periodic update of our cybersecurity strategy. Included in this review is a thorough discussion of the risks from cybersecurity threats including the potential impact of such threats to our operations. Specifically, with respect to cybersecurity risks, Incident Response Team members report to the Audit Committee on the (i) potential impact of the risk to the business, (ii) our current capabilities in managing such risks, (iii) the urgency for action in managing such risks and (iv) the outlook for a potential impact on us as a result of the risk. The Audit Committee also receives reports from members of the Incident Response Team on our mitigation efforts to address cybersecurity risks.
Cybersecurity Risk Role of Management [Text Block] Chief Information Officer (“CIO”) – Our CIO has over 25 years of information technology experience across a wide range of industry sectors including life sciences, medical device, pharmaceutical, real estate and software development with responsibility in cybersecurity, data analytics and GenAI implementations for the last 10 years, and 20 years of business continuity planning and disaster recovery planning and execution. Our CIO has oversight of our cybersecurity strategy and building out our cybersecurity capabilities and infrastructure in response to the growing threat from potential cyber security incidents on our IT Systems. Our CIO is also responsible for the integration of our cybersecurity management into our overall enterprise risk management strategy;
•Senior Director, Information Technology (“IT Security Director”) – Our IT Security Director has over 25 years of extensive experience in IT Operations and cybersecurity, with previous experience in the defense, financial services, and life sciences industries. Our IT Security Director holds a master’s degree in cybersecurity and brings in-depth expertise across modern cybersecurity domains, including cloud security, data privacy, threat intelligence, vulnerability management, identity and access management, incident response, and security operations. In this role, the IT Security Director leads the organization’s cybersecurity efforts under the guidance of the CIO, advancing and maturing our cybersecurity program across all critical domains;
•Senior Vice President, Chief Legal Officer – Our Chief Legal Officer oversees our enterprise risk management strategy and serves as the executive management representative on our Incident Response Team; and
•Vice President, Business Continuity and Sustainable Operations (“VP Business Continuity”) – Our VP Business Continuity has responsibility for overseeing our Business Continuity Plan which incorporates our IRP. Our VP Business Continuity has over 15 years leading the business continuity programs for various companies and has training on ISO 22301 (the Business Continuity ISO Standard).
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block]
Under its committee charter, the Audit Committee of the Board of Directors (the “Audit Committee”) is responsible for discussing with senior management our policies with respect to risk assessment and risk management and for discussing with management our financial risk exposures and the steps management has taken to monitor and control such exposures. In particular, the Audit Committee oversees our cybersecurity strategy designed to identify, assess and mitigate cybersecurity risks, and reviews our cybersecurity and other information technology risks, controls and procedures, and receives periodic updates from management on cybersecurity regarding the adequacy and effectiveness of our cybersecurity measures. In fulfilling this oversight responsibility, the Audit Committee receives a periodic update of our cybersecurity strategy. Included in this review is a thorough discussion of the risks from cybersecurity threats including the potential impact of such threats to our operations. Specifically, with respect to cybersecurity risks, Incident Response Team members report to the Audit Committee on the (i) potential impact of the risk to the business, (ii) our current capabilities in managing such risks, (iii) the urgency for action in managing such risks and (iv) the outlook for a potential impact on us as a result of the risk. The Audit Committee also receives reports from members of the Incident Response Team on our mitigation efforts to address cybersecurity risks.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] Chief Information Officer (“CIO”) – Our CIO has over 25 years of information technology experience across a wide range of industry sectors including life sciences, medical device, pharmaceutical, real estate and software development with responsibility in cybersecurity, data analytics and GenAI implementations for the last 10 years, and 20 years of business continuity planning and disaster recovery planning and execution. Our CIO has oversight of our cybersecurity strategy and building out our cybersecurity capabilities and infrastructure in response to the growing threat from potential cyber security incidents on our IT Systems. Our CIO is also responsible for the integration of our cybersecurity management into our overall enterprise risk management strategy;
•Senior Director, Information Technology (“IT Security Director”) – Our IT Security Director has over 25 years of extensive experience in IT Operations and cybersecurity, with previous experience in the defense, financial services, and life sciences industries. Our IT Security Director holds a master’s degree in cybersecurity and brings in-depth expertise across modern cybersecurity domains, including cloud security, data privacy, threat intelligence, vulnerability management, identity and access management, incident response, and security operations. In this role, the IT Security Director leads the organization’s cybersecurity efforts under the guidance of the CIO, advancing and maturing our cybersecurity program across all critical domains;
•Senior Vice President, Chief Legal Officer – Our Chief Legal Officer oversees our enterprise risk management strategy and serves as the executive management representative on our Incident Response Team; and
•Vice President, Business Continuity and Sustainable Operations (“VP Business Continuity”) – Our VP Business Continuity has responsibility for overseeing our Business Continuity Plan which incorporates our IRP. Our VP Business Continuity has over 15 years leading the business continuity programs for various companies and has training on ISO 22301 (the Business Continuity ISO Standard).
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block]
We have also instituted a separate process for communicating with the Audit Committee regarding any risks from an actual cybersecurity threat in the event we are the target of a specific cybersecurity incident. As part of our response to such an incident, members of the Incident Response Team would provide an initial awareness communication of the incident to our Chief Financial Officer then to the Chief Executive Officer who would in turn inform the Chairman of our Board of Directors (“Board Chair”) and the Chair of the Audit Committee (“Audit Committee Chair”). Following an initial assessment of the incident by senior management and IT Systems personnel, we would provide a follow-up communication to the Board Chair and Audit Committee Chair and determine whether further escalation to the full Board of Directors is warranted.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.4
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation
The consolidated financial statements include the accounts of Halozyme Therapeutics, Inc. and our wholly owned subsidiaries, Halozyme, Inc., Antares Pharma, Inc., Antares Pharma, Inc.’s two wholly owned Swiss subsidiaries, Antares Pharma IPL AG and Antares Pharma GmbH, Halozyme Hypercon, Inc., Halozyme Hypercon Inc.’s wholly-owned subsidiary, Elektrofi Security Corp., and Halozyme Surf Bio, Inc. All intercompany accounts and transactions have been eliminated.
Use of Estimates
Use of Estimates
The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires us to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and accompanying notes. On an ongoing basis, we evaluate our estimates and judgments, which are based on historical and anticipated results and trends and on various other assumptions that we believe to be reasonable under the circumstances. By their nature, estimates are subject to an inherent degree of uncertainty and, as such, actual results may differ from our estimates.
Cash Equivalents
Cash Equivalents and Marketable Securities
Cash equivalents consist of highly liquid investments, readily convertible to cash, which mature within 90 days or less from the date of purchase. As of December 31, 2025, our cash and cash equivalents consisted of money market funds, bank certificate of deposits and demand deposits at commercial banks.
Marketable Securities
Marketable securities are investments with original maturities of more than 90 days from the date of purchase that are specifically identified to fund current operations. Marketable securities are considered available-for-sale. These investments are classified as current assets, even though the stated maturity date may be one year or more beyond the current balance sheet date which reflects management’s intention to use the proceeds from the sale of these investments to fund our operations, as necessary. Such available-for-sale investments are carried at fair value with unrealized gains and losses recorded in other comprehensive income and included as a separate component of stockholders’ equity. The cost of marketable securities is adjusted for amortization of premiums or accretion of discounts to maturity, and such amortization or accretion is included in investment and other income, net in our consolidated statements of income. We use the specific identification method for calculating realized gains and losses on marketable securities sold. None of the realized gains and losses and declines in value that were judged to be as a result of credit loss on marketable securities, if any, are included in investment and other income, net in our consolidated statements of income.
Restricted Cash
Restricted Cash
Under the terms of the leases of our facilities and other agreements, we are required to maintain letters of credit as security deposits during the terms of such leases. At December 31, 2025, restricted cash of $2.6 million was pledged as collateral for the letters of credit and other agreements.
Fair Value of Financial Instruments
Fair Value of Financial Instruments
The authoritative guidance for fair value measurements establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.
Our financial instruments include cash equivalents, available-for-sale marketable securities, accounts receivable, prepaid expenses and other assets, accounts payable, accrued expenses, long-term debt and contingent liability. Fair value estimates of these instruments are made at a specific point in time based on relevant market information. These estimates may be subjective in nature and involve uncertainties and matters of significant judgment and therefore, cannot be determined with precision. The carrying amount of cash equivalents, accounts receivable, prepaid expenses and other assets, accounts payable and accrued expenses are generally considered to be representative of their respective fair values because of the short-term nature of those instruments.
As of December 31, 2025, our available-for-sale marketable securities consisted of U.S. Treasury securities, and were measured at fair value using Level 1. Level 2 financial instruments are valued using market prices on less active markets and proprietary pricing valuation models with observable inputs, including interest rates, yield curves, maturity dates, issue dates, settlement dates, reported trades, broker-dealer quotes, issue spreads, benchmark securities or other market related data. We obtain the fair value of Level 2 investments from our investment manager, who obtains these fair values from a third-party pricing source. We validate the fair values of Level 2 financial instruments provided by our investment manager by comparing these fair values to a third-party pricing source.
Concentration of Credit Risk, Sources of Supply and Significant Customers
Concentrations of Credit Risk, Sources of Supply and Significant Customers
We are subject to credit risk from our portfolio of cash equivalents and marketable securities. These investments were made in accordance with our investment policy which specifies the categories, allocations, and ratings of securities we may consider for investment. The primary objective of our investment activities is to preserve principal while at the same time maximizing the income we receive without significantly increasing risk. We maintain our cash and cash equivalent balances with four major commercial banks and marketable securities with two other financial institution. Deposits held with the financial institutions exceed the amount of insurance provided on such deposits. We are exposed to credit risk in the event of a default by the financial institutions holding our cash, cash equivalents and marketable securities to the extent recorded on the consolidated balance sheets.
We are also subject to credit risk from our accounts receivable related to our product sales and revenues under our license and collaborative agreements. We have license and collaborative agreements with pharmaceutical companies under which we receive payments for royalties, license fees, milestone payments for specific achievements designated in the collaborative agreements, reimbursements of research and development services, and supply of bulk formulation of rHuPH20 and auto-injector devices. In addition, we sell proprietary products in the United States (“U.S.”) to a limited number of established wholesale distributors in the pharmaceutical industry. Credit is extended based on an evaluation of the customer’s financial condition, and collateral is not required. Management monitors our exposure to accounts receivable by periodically evaluating the collectability of the accounts receivable based on a variety of factors including the length of time the receivables are past due, the financial health of the customer and historical experience. Based upon the review of these factors, we recorded no significant allowance for doubtful accounts as of December 31, 2025 and 2024. Approximately 69% of the accounts receivable balance as of December 31, 2025 represents amounts due from Janssen, Roche and argenx. Approximately 60% of the accounts receivable balance as of December 31, 2024 represents amounts due from Janssen and Roche.
Accounts Receivable, net and Contract Assets
Accounts Receivable, net and Contract Assets
Accounts receivable is recorded at the invoiced amount and is non-interest bearing. Accounts receivable is recorded net of estimated prompt pay discounts, distribution fees and chargebacks. Contract assets are recorded when revenue is earned but an invoice has not been issued for payment. Contract assets relate to development milestones deemed probable of receipt for intellectual property licenses granted to partners in prior periods and for goods or services when control has transferred to the customer, and corresponding revenue is recognized but is not yet billable to the customer in accordance with the terms of the contract.
Inventories
Inventories
Inventories are stated at lower of cost or net realizable value. Cost is determined on a first-in, first-out basis. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Inventories are reviewed periodically for potential excess, dated or obsolete status. We evaluate the carrying value of inventories on a regular basis, taking into account such factors as historical and anticipated future sales compared to quantities on hand, the price we expect to obtain for products in their respective markets compared with historical cost and the remaining shelf life of goods on hand.
Leases
Leases
We have entered into operating leases primarily for real estate and automobiles. These leases have contractual terms which range from three years to twelve years. We determine if an arrangement contains a lease at inception. Right of use (“ROU”) assets and liabilities resulting from operating leases are included in property and equipment, accrued expenses and other long-term liabilities on our consolidated balance sheets. Operating lease ROU assets and liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the discount rate to calculate the present value of future payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. Our leases often include options to extend or terminate the lease. These options are included in the lease term when it is reasonably certain that we will exercise that option. Short-term leases with an initial term of 12 months or less are not recorded on our consolidated balance sheet. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term.
We have lease agreements with lease and non-lease components, which are generally accounted for separately. For certain leases, such as automobiles, we account for the lease and non-lease components as a single lease component.
Property and Equipment, Net
Property and Equipment, Net
Property and equipment, which includes internal-use software and leasehold improvements, are recorded at cost, less accumulated depreciation and amortization. Equipment and internal-use software are depreciated using the straight-line method over its estimated useful life ranging from three years to ten years and leasehold improvements are amortized using the straight-line method over the estimated useful life of the asset or the lease term, whichever is shorter.
Impairment of Long-Lived Assets
Impairment of Long-Lived Assets
We account for long-lived assets in accordance with authoritative guidance for impairment or disposal of long-lived assets. Long-lived assets are reviewed for events or changes in circumstances, which indicate their carrying value may not be recoverable.
Comprehensive Income
Comprehensive Income
Comprehensive income is defined as the change in equity during the period from transactions and other events and circumstances from non-owner sources.
Convertible Notes
Convertible Notes
The 2024 Convertible Notes, the 2027 Convertible Notes, the 2028 Convertible Notes, the 2031 Convertible Notes and the 2032 Convertible Notes (collectively, the “Convertible Notes”) are accounted for in accordance with authoritative guidance for debt and derivatives. We evaluate all the embedded conversion options contained in the Convertible Notes to determine if there are embedded features that require bifurcation as a derivative as required by U.S. GAAP. Based on our analysis, we account for each of our Convertible Notes as single units of accounting, a liability, because we concluded that the conversion features do not require bifurcation as a derivative under embedded derivative authoritative guidance.
Cash Flow Hedges - Currency Risks
Cash Flow Hedges - Currency Risks
We utilize a cash flow hedging program to mitigate foreign currency exchange risk associated with forecasted royalty revenue denominated in Swiss francs. Under the program, we can hedge these forecasted royalties up to a maximum of four years into the future. We hedge these cash flow exposures to reduce the risk of our earnings and cash flows being adversely affected by fluctuations in exchange rates.
In accordance with the hedge accounting treatment, all hedging relationships are formally documented at the inception of the hedge and are highly effective in offsetting changes to future cash flows on hedged transactions. Both at inception of the hedge and on an ongoing basis, we assess whether the foreign currency forward contracts are highly effective in offsetting changes in cash flows of hedged items on a prospective and retrospective basis. If we determine a (i) foreign currency forward contract is not highly effective as a cash flow hedge, (ii) foreign currency forward contract has ceased to be a highly effective hedge or (iii) forecasted transaction is no longer probable of occurring, we would discontinue hedge accounting treatment prospectively. We measure effectiveness based on the change in fair value of the forward currency forward contract and the fair value of the hypothetical foreign currency forward contract with terms that match the critical terms of the risk being hedged. No portion of our foreign currency forward contracts were excluded from the assessment of hedge effectiveness. As of December 31, 2025, all hedges were determined to be highly effective.
The assets or liabilities associated with our hedging contracts are recorded at fair market value in prepaid expense and other current assets, prepaid expenses and other assets, accrued expenses, or other long-term liabilities, respectively, in our consolidated balance sheets. Gains and losses related to changes in the fair market value of these hedging contracts are recorded as a component of accumulated other comprehensive income (loss) (“AOCI”) within stockholder’s equity in our consolidated balance sheets and reclassified to royalty revenue in our consolidated statements of income in the same period as the recognition of the underlying hedged transaction. In the event the underlying forecasted transaction does not occur, or it becomes probable that it will not occur, within the defined hedge period, we reclassify the gains or losses on the related cash flow hedge from AOCI to royalties revenue in our consolidated statements of income. Settlements from the cash flow hedge are included in operating activities on the consolidated statements of cash flows. Since the fair market value of these hedging contracts is derived from current market rates, the hedging contracts are classified as derivative financial instruments. We do not use derivatives for speculative or trading purposes. As of December 31, 2025, the amount expected to be recognized as a net loss out of AOCI into our consolidated statements of income during the next 12 months is $7.7 million.
Business Combinations
Business Combinations
Under the acquisition method of accounting, we allocate the fair value of the total consideration transferred to the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values on the date of acquisition. These valuations require us to make 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. Costs incurred to complete a business combination, such as legal and other professional fees, are expensed as incurred.
If the initial accounting for a business combination is 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. We record these adjustments to the provisional amounts with a corresponding offset to goodwill. Any adjustments identified after the measurement period are recorded in our consolidated statements of income.
Asset Acquisitions
We evaluate acquisitions of assets and other similar transactions to assess whether the transaction should be accounted for as a business combination or asset acquisition by first applying a test to determine if substantially all of the fair value of the gross assets acquired is concentrated into a single identifiable asset or group of similar identifiable assets. If the test is met, we account for the transaction as an asset acquisition by recognizing net assets based on the consideration paid, which includes transaction costs, on a relative fair value basis. In an asset acquisition where the cost allocated to acquire in-process research and development (“IPR&D”) has no alternative future use, we immediately recognize the cost of the acquired IPR&D on our consolidated statements of income. In an asset acquisition, contingent consideration is not recognized as of the acquisition date but instead is recognized as part of the cost of the assets acquired at the time the consideration is paid.
Goodwill and Intangible Assets
Goodwill, Intangible Assets and Other Long-Lived Asset
Assets acquired, including intangible assets and IPR&D, and liabilities assumed are measured at fair value as of the acquisition date. Goodwill, which has an indefinite useful life, represents the excess of cost over fair value of the net assets acquired. Intangible assets acquired in a business combination that are used for IPR&D activities are considered indefinite lived until the completion or abandonment of the associated research and development efforts. Upon reaching the end of the relevant
research and development project (i.e., upon commercialization), the IPR&D asset is amortized over its estimated useful life. If the relevant research and development project is abandoned, the IPR&D asset is expensed in the period of abandonment.
Goodwill and indefinite-lived intangible assets are not amortized; however, they are reviewed for impairment at least annually during the second quarter, or more frequently if an event occurs indicating the potential for impairment. Goodwill and indefinite-lived intangible assets are considered to be impaired if the carrying value of the reporting unit or indefinite-lived intangible asset exceeds its respective fair value.
We perform our goodwill impairment analysis at the reporting unit level, which is one level below our reporting and operating segment structure. We assign goodwill to reporting units at the time of acquisition. During the goodwill impairment review, we assess qualitative factors to determine whether it is more likely than not that the fair values of our 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 our 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 amounts, then no additional assessment is deemed necessary. Otherwise, we proceed to compare the estimated fair value of the reporting unit with the carrying value, including goodwill. If the carrying amount of the reporting unit exceeds the fair value, we record an impairment loss based on the difference. We may elect to bypass the qualitative assessment in a period and proceed to perform the quantitative goodwill impairment test.
During the indefinite-lived intangible asset impairment review, we may elect to start by performing a qualitative assessment. The qualitative factors include, but are not limited to, macroeconomic conditions, industry and market considerations, cost factors, asset-specific commercial and regulatory developments and changes to key personnel or strategy. If the qualitative assessment indicates that it is not more likely than not that the fair value of the indefinite-lived intangible asset exceeds its carrying amount, we compare the estimated fair value of the indefinite-lived intangible asset with its carrying value. Determining fair value requires the exercise of judgment about product pricing, market assumptions, discount rates, and the amount and timing of expected future cash flows. If the carrying value of the indefinite-lived intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess.
Our identifiable intangible assets with finite useful lives are typically comprised of acquired device technologies and product rights. The cost of identifiable intangible assets with finite lives is generally amortized on a straight-line basis over the assets’ respective estimated useful lives.
Intangible Assets and Other Long-Lived Asset
We perform regular reviews to determine if any event has occurred that may indicate intangible assets with finite useful lives and other long-lived assets are potentially impaired. If indicators of impairment exist, an impairment test is performed to assess the recoverability of the affected assets by determining whether the carrying amount of such assets exceeds the undiscounted expected future cash flows. If the affected assets are not recoverable, we estimate the fair value of the assets and record an impairment loss if the carrying value of the assets exceeds the fair value. Factors that may indicate potential impairment include a significant decline in our stock price and market capitalization compared to the net book value, significant changes in the ability of a particular asset to generate positive cash flows for our strategic business objectives, and the pattern of utilization of a particular asset.
Revenue Recognition
Revenue Recognition
We generate revenues from payments received (i) as royalties from licensing our ENHANZE technology and other royalty arrangements, (ii) under collaborative agreements and (iii) from sales of our proprietary and partnered products. We recognize revenue when we transfer promised goods or services to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. To determine revenue recognition for contracts with customers, we perform the following five steps: (i) identify the promised goods or services in the contract; (ii) identify the performance obligations in the contract, including whether they are distinct in the context of the contract; (iii) determine the transaction price, including the constraint on variable consideration; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) we satisfy the performance obligations.
ENHANZE and Device Royalties
Under the terms of our ENHANZE collaboration and license agreements, our partners will pay us royalties at an on average mid-single digit percent rate of their sales if products under the collaboration are commercialized. All amounts owed to us are noncancelable after the underlying triggering event occurs, and nonrefundable once paid. Unless terminated earlier in accordance with its terms, collaborations generally continue in effect until the last to expire royalty payment term, as determined on a product by product and country by country basis, with each royalty term starting on the first commercial sale of that product and ending the later of: (i) a specified period or term set forth in the agreement or (ii) expiration of the last to expire of the valid claims of our patents covering rHuPH20 or other specified patents developed under the collaboration which valid claim covers a product developed under the collaboration. In general, when there are no valid claims of a specified patent developed under the collaboration covering the product in a given country, the royalty rate is reduced for those sales in that country upon the expiration of our patents covering rHuPH20. Janssen’s patents covering DARZALEX SC do not impact the timing for this royalty reduction. Partners may terminate the agreement prior to expiration for any reason in its entirety or on a target-by-target basis generally upon 90 days prior written notice to us. Upon any such termination, the license granted to partners (in total or with respect to the terminated target, as applicable) will terminate provided; however, that in the event of expiration of the agreement (as opposed to a termination), the on-going licenses granted may become perpetual, non-exclusive and fully paid. Sales-based milestones and royalties are recognized in the period the underlying sales or milestones occur. We do not receive final royalty reports from our ENHANZE partners until after we complete our financial statements for a prior quarter. Therefore, we recognize revenue based on estimates of the royalty earned, which are based on internal estimates and available preliminary reports provided by our partners. We will record adjustments in the following quarter, if necessary, when final royalty reports are received. To date, we have not recorded any material adjustments.
We also earn royalties in connection with several of our licenses granted under license and development arrangements with our device partners. These royalties are based upon a percentage of commercial sales of partnered products with rates ranging from mid-single digits to low double digits and are tiered based on levels of net sales. These sales-based royalties, for which the license was deemed the predominant element to which the royalties relate, are estimated and recognized in the period in which the partners’ commercial sales occur. The royalties are generally reported and payable to us within 45 to 60 days after the end of the period in which the commercial sales are made. We base our estimates of royalties earned on actual sales information from our partners when available or estimated prescription sales from external sources and estimated net selling price. We will record adjustments in the following quarter, if necessary, when final royalty reports are received. To date, we have not recorded any material adjustments.
Revenue under ENHANZE and Device Collaborative Agreements
ENHANZE Collaboration and License Agreements
Under these agreements, we grant the collaboration partner a worldwide license to develop and commercialize products using our ENHANZE technology to combine our patented rHuPH20 enzyme with their proprietary biologics directed at up to a specified number of targets. Targets are usually licensed on an exclusive, global basis. Targets selected subsequent to inception of the arrangement generally require payment of an additional license fee. The collaboration partner is responsible for all development, manufacturing, clinical, regulatory, sales and marketing costs for any products developed under the agreement. We are responsible for supply of bulk rHuPH20 based on the collaboration partner’s purchase orders, and may also be separately engaged to perform research and development services. While these collaboration agreements are similar in that they originate from the same framework, each one is the result of an arms-length negotiation and thus may vary from one to the other.
We generally collect an upfront license payment from collaboration partners, and are also entitled to receive event-based payments subject to collaboration partners’ achievement of specified development, regulatory and sales-based milestones. In several agreements, collaboration partners pay us annual fees to maintain their exclusive license rights if they are unable to
advance product development to specified stages. We earn separate fees for bulk rHuPH20 supplies and research and development services.
Although these agreements are in form identified as collaborative agreements, we concluded for accounting purposes they represent contracts with customers and are not subject to accounting literature on collaborative arrangements. This is because we grant to partners licenses to our intellectual property and provide supply of bulk rHuPH20 and research and development services which are all outputs of our ongoing activities, in exchange for respective consideration. Under these collaborative agreements, our partners lead development of assets, and we do not share in significant financial risks of their development or commercialization activities. Accordingly, we concluded our collaborative agreements are appropriately accounted for pursuant to U.S. GAAP.
Under all of our ENHANZE collaborative agreements, we have identified licenses to use functional intellectual property as the only performance obligation. The intellectual property underlying the license is our proprietary ENHANZE technology which represents application of rHuPH20 to facilitate delivery of drugs. Each of the licenses grants the partners rights to use our intellectual property as it exists and is identified on the effective date of the license, because there is no ongoing development of the ENHANZE technology required. Therefore, we recognize revenue from licenses at the point when the license becomes effective and the partner has received access to our intellectual property, usually at the inception of the agreement.
When partners can select additional targets to add to the licenses granted, we consider these rights to be options. We evaluate whether such options contain material rights, i.e., have exercise prices that are discounted compared to what we would charge for a similar license to a new partner. The exercise price of these options includes a combination of the target selection fees, event-based milestone payments and royalties. When these amounts in aggregate are not offered at a discount that exceeds discounts available to other customers, we conclude the option does not contain a material right, and we consider grants of additional licensing rights upon option exercises to be separate contracts (target selection contracts).
Generally, we provide indemnification and protection of licensed intellectual property for our customers. These provisions are part of assurance that the licenses meet the agreements’ representations and are not obligations to provide goods or services.
We also fulfill purchase orders for supply of bulk rHuPH20 and perform research and development services pursuant to project authorization forms for our partners, which represent separate contracts. In addition to our licenses, we price our supply of bulk rHuPH20 and research and development services at our regular selling prices, called standalone selling prices (“SSP”). Therefore, our partners do not have material rights to order these items at prices not reflective of SSP. Refer to the discussion below regarding recognition of revenue for these separate contracts.
Transaction price for a contract represents the amount to which we are entitled in exchange for providing goods and services to the customer. Transaction price does not include amounts subject to uncertainties unless it is probable that there will be no significant reversal of revenue when the uncertainty is resolved. Apart from the upfront license payment (or target selection fees in the target selection contracts), all other fees we may earn under our collaborative agreements are subject to significant uncertainties of product development. Achievement of many of the event-based development and regulatory milestones may not be probable until such milestones are actually achieved. This generally relates to milestones such as obtaining marketing authorization approvals. With respect to other development milestones, e.g., dosing of a first patient in a clinical trial, achievement could be considered probable prior to its actual occurrence, based on the progress towards commencement of the trial. In order to evaluate progress towards commencement of a trial, we assess the status of activities leading up to our partner’s initiation of a trial such as feedback received from the applicable regulatory authorities, completion of investigational new drug or equivalent filings, readiness and availability of drug, readiness of study sites and our partner’s commitment of resources to the program. We do not include any amounts subject to uncertainties in the transaction price until it is probable that the amount will not result in a significant reversal of revenue in the future. At the end of each reporting period, we re-evaluate the probability of achievement of such milestones and any related constraint, and if necessary, adjust our estimate of the overall transaction price.
When target exchange rights are held by partners, and the amounts attributed to these rights are not refundable, they are included in the transaction price. However, they are recorded as deferred revenues because we have a potential performance obligation to provide a new target upon an exchange right being exercised. These amounts are recognized in revenue when the right of exchange expires or is exercised.
Because our agreements have one type of performance obligation (licenses) which are typically all transferred at the same time at agreement inception, allocation of transaction price often is not required. However, allocation is required when licenses for some of the individual targets are subject to rights of exchange, because revenue associated with these targets cannot be recognized. When allocation is needed, we perform an allocation of the upfront amount based on relative SSP of licenses for individual targets. We determine license SSP using an income-based valuation approach utilizing risk-adjusted discounted cash flow projections of the estimated return a licensor would receive where applicable, or an alternative valuation method such as indicative value from historical transactions. When amounts subject to uncertainties, such as milestones and royalties, are
included in the transaction price, we attribute them to the specific individual target licenses which generate such milestone or royalty amounts.
We also estimate SSP of bulk rHuPH20 and research and development services, to determine that our partners do not have material rights to order them at discounted prices. For supplies of bulk rHuPH20, because we effectively act as a contract manufacturer to our partners, we estimate and charge SSP based on the typical contract manufacturer margins consistent with all of our partners. We determine SSP of research and development services based on a fully-burdened labor rate. Our rates are comparable to those we observe in other collaborative agreements. We also have a history of charging similar rates to all of our partners.
Upfront amounts allocated to licenses to individual targets are recognized as revenue when the license is transferred to the partner, as discussed above, if the license is not subject to exchange rights, or when the exchange right expires or is exercised. Development milestones and other fees are recognized in revenue when they are included in the transaction price, because by that time, we have already transferred the related license to the partner.
In contracts to provide research and development services, such services represent the only performance obligation. The fees are charged based on hours worked by our employees and the fixed contractual rate per hour, plus third-party pass-through costs, on a monthly basis. We recognize revenues as the related services are performed based on the amounts billed, as the partner consumes the benefit of research and development work simultaneously as we perform these services, and the amounts billed reflect the value of these services to the customer.
Hypercon Technology Collaboration and Licensing Agreements
As a part of the acquisition of Elektrofi Inc, we acquired in-process collaboration and license agreements with collaboration partners who are attempting to formulate Hypercon technology with their existing drugs to develop an additional administrative option. The collaboration partner is responsible for all development, manufacturing, clinical, regulatory, sales and marketing costs for any products developed under the agreement; however, the agreement also includes Hypercon performing certain research and development (“R&D”) services to support the collaboration partner in their efforts. We assessed the nature of the promised goods and services in the contract which includes the license of the Hypercon technology representing a functional license of intellectual property to our customers, R&D services, and manufacturing technology transfer. These promises are not capable of being distinct performance obligations at this time due to the exclusive proprietary know-how and certain regulatory requirements associated with the manufacturing of the product. The collaboration partner simultaneously receives and consumes the benefits of the combined performance obligations as data is generated to support regulatory approval submissions. A significant component of the cost of R&D relates to our clinical trial research consultants, who are assisting with the monitor of the Hypercon technology to ensure the successful combination of the Hypercon technology with the collaboration partner’s drug.
The agreements include milestone payments, royalties, and an initial upfront payment. This upfront payment was received from the collaboration partner upon inception of the agreement and recorded as deferred revenue to be recognized as we perform certain R&D services to support the collaboration partner in their efforts to successful combine Hypercon technology with previously developed products. While the services are being provided, we allocate a portion of each deferred payment to the individual drug targets. Revenue is then recognized based upon the expected costs to complete as a percentage of the budget. These agreements are designed in a way that the R&D services are being completed in partnership with the collaboration partner at the approximate costs; therefore, the deferred revenue is being recognized as the work is completed for each partner’s drug. We may incur additional expenses outside of the R&D contract which are invoiced and recognized separately from the upfront payment. Deferred revenue associated with a target that has not been identified or no work has been performed is classified as other long-term liabilities on the consolidated balance sheets. Deferred revenue for expenses expected to be incurred within the next 12 months are classified as accrued expenses on the consolidated balance sheets.
Device License, Development and Supply Arrangements
We have several license, development and supply arrangements with pharmaceutical partners, under which we grant a license to our device technology and provide research and development services that often involve multiple performance obligations and highly-customized deliverables. For such arrangements, we identify each of the promised goods and services within the contract and the distinct performance obligations at inception of the contract and allocate consideration to each performance obligation based on relative SSP, which is generally determined based on the expected cost plus mark-up.
If the contract includes an enforceable right to payment for performance completed to date and performance obligations are satisfied over time, we recognize revenue over the development period using either the input or output method depending on which is most appropriate given the nature of the distinct deliverable. For other contracts that do not contain an enforceable right to payment for performance completed to date, revenue is recognized when control of the product is transferred to the customer. Factors that may indicate transfer of control has occurred include the transfer of legal title, transfer of physical
possession, the customer has obtained the significant risks and rewards of ownership of the assets, and we have a present right to payment.
Our payment terms for development contracts may include an upfront payment equal to a percentage of the total contract value with the remaining portion to be billed upon completion and transfer of the individual deliverables or satisfaction of the individual performance obligations. We record a contract liability for cash received in advance of performance, which is presented as deferred revenue within accrued expense and other long-term liabilities in our consolidated balance sheets and recognized as revenue in our consolidated statements of income when the associated performance obligations have been satisfied.
License fees and milestones received in exchange for the grant of a license to our functional intellectual property, such as patented technology and know-how in connection with a partnered development arrangement, are generally recognized at inception of the arrangement, or over the development period depending on the facts and circumstances, as the license is generally not distinct from the non-licensed goods or services to be provided under the contract. Milestone payments that are contingent upon the occurrence of future events are evaluated and recorded at the most likely amount, and to the extent that it is probable that a significant reversal of revenue will not occur when the associated uncertainty is resolved.
Refer to Note 5, Revenue, for further discussion on our collaborative arrangements.
Product Sales, Net
Proprietary Product Sales
Our commercial portfolio of proprietary products includes XYOSTED and Hylenex recombinant which we sell primarily to wholesale pharmaceutical distributors and specialty pharmacies, who sell the products to hospitals, retail chain drug stores and other end-user customers. Sales to wholesalers are made pursuant to purchase orders subject to the terms of a master agreement, and delivery of individual packages of products represents performance obligations under each purchase order. We use contract manufacturers to produce our proprietary products and third-party logistics vendors to process and fulfill orders. We concluded we are the principal in the sales to wholesalers because we control access to services rendered by both vendors and direct their activities. We have no obligations to wholesalers to generate pull-through sales.
Revenue is recognized when control has transferred to the customer, which is typically upon delivery, at the net selling price, which reflects the variable consideration for which reserves and sales allowances are established for estimated returns, wholesale distribution fees, prompt payment discounts, government rebates and chargebacks, plan rebate arrangements and patient discount and support programs. We recognize revenue from product sales and related cost of sales upon product delivery to the wholesaler location. At that time, the wholesalers take control of the product as they take title, bear the risk of loss of ownership, and have an enforceable obligation to pay us. They also have the ability to direct sales of product to their customers on terms and at prices they negotiate. Although wholesalers have product return rights, we do not believe they have a significant incentive to return the product to us.
The determination of certain reserves and sales allowances requires us to make a number of judgments and estimates to reflect our best estimate of the transaction price and the amount of consideration to which we believe we would be ultimately entitled to receive. The expected value is determined based on unit sales data, contractual terms with customers and third-party payers, historical and estimated future percentage of rebates incurred on sales, historical and future insurance plan billings, any new or anticipated changes in programs or regulations that would impact the amount of the actual rebates, customer purchasing patterns, product expiration dates and levels of inventory in the distribution channel. The estimated amounts of credit for product returns, chargebacks, distribution fees, prompt payment discounts, rebates and customer co-pay support programs are included in accrued expenses and accounts receivable, net in our consolidated balance sheets upon recognition of revenue from product sales. We monitor actual product returns, chargebacks, discounts and fees subsequent to the sale. If these amounts differ from our estimates, we make adjustments to these allowances, which are applied to increase or reduce product sales revenue and earnings in the period of adjustment.
Selling prices initially billed to wholesalers are subject to discounts for prompt payment and subsequent chargebacks when wholesalers sell our products at negotiated discounted prices to members of certain group purchasing organizations, pharmacy benefit managers and government programs. We also pay quarterly distribution fees to certain wholesalers for inventory reporting and chargeback processing, and to pharmacy benefit managers and group purchasing organizations as administrative fees for services and for access to their members. We concluded the benefits received in exchange for these fees are not distinct from our sales of our products, and accordingly we apply these amounts to reduce revenues. Wholesalers also have rights to return unsold product nearing or past the expiration date. Because of the shelf life of our products and our lengthy return period, there may be a significant period of time between when the product is shipped and when we issue credits on returned product.
We estimate the transaction price when we receive each purchase order taking into account the expected reductions of the selling price initially billed to the wholesaler arising from all of the above factors. We have compiled historical experience and data to estimate future returns and chargebacks of our products and the impact of the other discounts and fees we pay. When estimating these adjustments to the transaction price, we reduce it sufficiently to be able to assert that it is probable that there will be no significant reversal of revenue when the ultimate adjustment amounts are known.
Each purchase order contains only one type of product, and is usually shipped to the wholesaler in a single shipment. Therefore, allocation of the transaction price to individual packages is not required.
In connection with the orders placed by wholesalers, we incur costs such as commissions to our sales representatives. However, as revenue from product sales is recognized upon delivery to the wholesaler, which occurs shortly after we receive a purchase order, we do not capitalize these commissions and other costs, based on application of the practical expedient allowed within the applicable guidance.
Partnered Product Sales
Bulk rHuPH20
We sell bulk rHuPH20 to partners for use in research and development and, subsequent to receiving marketing approval, we sell it for use in collaboration commercial products. Sales are made pursuant to purchase orders subject to the terms of the collaborative agreement or a supply agreement, and delivery of units of bulk rHuPH20 represent performance obligations under each purchase order. We provide a standard warranty that the product conforms to specifications. We use contract manufacturers to produce bulk rHuPH20 and have concluded we are the principal in the sales to partners. The transaction price for each purchase order of bulk rHuPH20 is fixed based on the cost of production plus a contractual markup, and is not subject to adjustments. Allocation of the transaction price to individual quantities of the product is usually not required because each order contains only one type of product.
We recognize revenue from the sale of bulk rHuPH20 as product sales and related cost of sales upon transfer of title to our partners. At that time, the partners take control of the product, bear the risk of loss of ownership, and have an enforceable obligation to pay us.
Devices
We are party to several license, development, supply and distribution arrangements with pharmaceutical partners, under which we produce and are the exclusive supplier of certain products, devices and/or components. We recognize revenue from the sale of certain products, devices and/or components as product sales and related costs of sales at the point in time in which control is transferred to the customer, which is typically upon shipment of the goods to our partner. Sales terms and pricing are governed by the respective supply and distribution agreements, and there is generally no right of return. We provide a standard warranty that the product conforms to specifications. We use contract manufacturers to produce certain products, devices and/or components, and have concluded we are the principal in the sales to partners. Revenue is recognized at the transaction price, which includes the contractual per unit selling price. Allocation of the transaction price to individual quantities of the product is usually not required because each order contains only one type of product.
Cost of Sales
Cost of Sales
Cost of sales consists primarily of raw materials, third-party manufacturing costs, fill and finish costs, freight costs, internal costs and manufacturing overhead associated with the production of proprietary and partnered products. Cost of sales also consists of the write-down of excess, dated and obsolete inventories and the write-off of inventories that do not meet certain product specifications, if any.
Research and Development Expenses
Research and Development Expenses
Research and development expenses include salaries and benefits, allocation of facilities and other overhead expenses, research related manufacturing services, contract services, and other outside expenses related to manufacturing, preclinical and regulatory activities and our partner development platforms. Research and development expenses are charged to operating expenses as incurred when these expenditures relate to our research and development efforts and have no alternative future uses.
We are obligated to make upfront payments upon execution of certain research and development agreements. Advance payments, including nonrefundable amounts, for goods or services that will be used or rendered for future research and development activities are deferred. Such amounts are recognized as expense as the related goods are delivered or the related services are performed or such time when we do not expect the goods to be delivered or services to be performed.
Share-Based Compensation
Share-Based Compensation
We record compensation expense associated with stock options, restricted stock units (“RSUs”), performance stock units (“PSUs”) and shares issued under our employee stock purchase plan (“ESPP”) in accordance with the authoritative guidance for share-based compensation. The cost of employee services received in exchange for an award of an equity instrument is measured at the grant date, based on the estimated fair value of the award, and is recognized as expense on a straight-line basis over the requisite service period of the award. Share-based compensation expense for an award with a performance condition is recognized when the achievement of such performance condition is determined to be probable. If the outcome of such performance condition is not determined to be probable or is not met, no compensation expense is recognized and any previously recognized compensation expense is reversed. Forfeitures are recognized as a reduction of share-based compensation expense as they occur.
Income Taxes
Income Taxes
We provide for income taxes using the liability method. Under this method, deferred income tax assets and liabilities are determined based on the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases at each reporting period. We measure deferred tax assets and liabilities using enacted tax rates for the year in which the differences are expected to reverse. Significant judgment is required by management to determine our provision for income taxes, our deferred tax assets and liabilities, and any associated valuation allowances recorded against our net deferred tax assets. Deferred tax assets (“DTA”) and other tax benefits are recorded when they are more likely than not to be realized. On a quarterly basis, we assess the need for valuation allowance on our DTAs, weighing all positive and negative evidence, to assess if it is more-likely-than-not that some or all of our DTAs will be realized.
On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into law. The OBBBA addresses key provisions of the 2017 Tax Cuts and Jobs Act including the immediate expensing of domestic research and development expenditures and 100% bonus depreciation on qualified property. The impacts of the OBBBA are reflected in our consolidated statements of operations for the year ended December 31, 2025, of which there was no material impact to our income tax expense. As of December 31, 2025, certain provisions of the OBBBA will change the timing of cash tax payments in the current fiscal year and future periods.
Segment Information
Segment Information
We generate revenues from payments received (i) as royalties from licensing our ENHANZE technology and other royalty arrangements, (ii) under collaborative agreements with our partners and (iii) from sales of our proprietary and partnered products. There are no intra-entity sales or transfers. We operate our business in one operating segment, which includes all activities related to the research, development and commercialization of our proprietary enzymes, devices, Hypercon technology, and the Surf Bio technology. This operating segment also includes revenues and expenses related to (i) research and development and manufacturing activities conducted under our collaborative agreements with third parties, (ii) product sales of proprietary and partnered products and (iii) associated selling, general and administrative expenses.
The chief operating decision-maker (“CODM”), our Chief Executive Officer, reviews the operating results on an aggregate basis and manages the operations as a single operating segment. The CODM assesses the segment’s performance and decides how to allocate resources based on consolidated net income that is reported in our consolidated statements of income. The measure of segment assets is reported on the consolidated balance sheets as total consolidated assets. The significant expense categories regularly provided to the CODM include cost of sales, research and development, amortization of intangibles, and selling, general and administrative expenses. These expense categories are reported as separate line items in our consolidated statements of income.
Adoption and Pending Adoption of Recent Accounting Pronouncements
Adoption and Pending Adoption of Recent Accounting Pronouncements
The following table provides a brief description of recently issued accounting standards, those adopted in the current period and those not yet adopted:
StandardDescriptionEffective Date
Adoption Method
Effect on the Financial
Statements or Other Significant Matters
In September 2025, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2025-06, Intangibles–Goodwill and Other Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software
The new guidance includes amendments to clarify and modernize the accounting for costs related to internal-use software, including removing all references to project stages and clarifying thresholds used to begin capitalizing internal-use software development costs.
Annual periods beginning after December 15, 2027 (our 2028 Form 10-K), and interim reporting periods within those annual reporting periods (our Q1 2027 Form 10-Q) – Early adoption is permitted.
Prospective, Retrospective or Modified Transition Approach
We early adopted the new guidance in the interim period ended September 30, 2025, on a prospective basis. The adoption did not have a material impact on our consolidated financial statements or financial statement disclosures.
In November 2024, the FASB issued ASU 2024-04, Debt–Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments
The new guidance includes amendments to clarify the requirements for determining whether certain early settlements of convertible debt instruments should be accounted for as an induced conversion or extinguishment.
Annual periods beginning after December 15, 2025 (our 2026 Form 10-K), and interim reporting periods within those annual reporting periods (our Q1 2026 Form 10-Q) – Early adoption is permitted.
Prospective or Retrospective
We early adopted the new guidance on January 1, 2025, on a prospective basis. The adoption did not have a material impact on our consolidated financial statements or financial statement disclosures.
In November 2024, the FASB issued ASU 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses
The new guidance is intended to enhance expense disclosures by requiring disaggregation of certain expenses included in the consolidated statements of income into specified expense categories in the notes to the consolidated financial statements.
Annual periods beginning after December 15, 2026 (our 2027 Form 10-K), and interim reporting periods beginning after December 15, 2027 (our Q1 2028 Form 10-Q) – Early adoption is permitted.
Prospective or RetrospectiveWe are currently evaluating the impact of the standard on our consolidated financial statements and related disclosures.
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures
The new guidance includes amendments that further enhance income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction.
Annual periods beginning after December 15, 2024 (our 2025 Form 10-K) – Early adoption is permitted.
Prospective or Retrospective
We adopted the new guidance on January 1, 2025, on a retrospective basis. The adoption did not have a material effect on our consolidated financial statements, but resulted in expanded financial statement disclosures.
v3.25.4
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Schedule of Concentration of Risk, by Risk Factor
The following table indicates the percentage of total revenues in excess of 10% with any single customer:
Year Ended December 31,
202520242023
Partner A
41%41%44%
Partner B
17%17%19%
Partner C
16%9%7%
Partner D
6%8%10%
We attribute revenues under collaborative agreements, including royalties, to the individual countries where the customer is headquartered. We attribute revenues from product sales to the individual countries to which the product is shipped. Worldwide revenues from external customers are summarized by geographic location in the following table (in thousands):
Year Ended December 31,
202520242023
United States$822,975 $690,461 $587,196 
Switzerland276,414 212,391 149,024 
Belgium217,516 84,005 58,354 
Japan46,372 18,939 15,096 
All other foreign33,334 9,528 19,583 
Total revenues$1,396,611 $1,015,324 $829,253 
v3.25.4
Business Combination (Tables)
 12 Months Ended
Dec. 31, 2025
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
Schedule of Total Purchase Price Consideration
The total purchase consideration was comprised of the following (in thousands):
Cash consideration payments to stockholders and option holders as of November 18, 2025
$787,392 
Estimated fair value of contingent consideration23,000 
Total purchase consideration
$810,392 
Business Combination, Recognized Asset Acquired and Liability Assumed The judgments used to determine the estimated fair value assigned to each class of assets acquired and liabilities assumed, as well as asset lives, can materially impact our results of operations. We are still finalizing the allocation of the purchase price, therefore, the fair value estimates assigned to intangible assets, goodwill and the related tax impacts of the acquisition, among other items, are subject to change as additional information is received to complete our analysis and certain tax returns are finalized. As a result, the preliminary estimates may be revised during the measurement period. These differences could change the value of the intangible assets acquired, the contingent liability assumed, and the tax impacts related to the acquisition and could have a material impact on our results of operations and financial position.
(in thousands)
Fair Value
Assets acquired
Cash and cash equivalents$84,427 
Accounts receivable, net4,755 
Prepaid expenses and other current assets879 
Total current assets90,061 
Property and equipment, net7,338 
Operating lease right-of-use assets8,441 
Goodwill (1)
163,539 
Intangible assets705,000 
Other assets182 
Total assets acquired
$974,561 
Liabilities assumed
Accounts payable(929)
Accrued expenses and other current liabilities(26,803)
Deferred revenue, current(5,674)
Operating lease liabilities, current(3,440)
Other current liabilities(51)
Total current liabilities(36,897)
Deferred revenue, net of current portion(19,974)
Operating lease liabilities, net of current portion(4,484)
Other liabilities (2)
(102,816)
Total liabilities assumed$(164,171)
Net assets acquired810,392 
Less cash acquired(84,427)
Total purchase price, net of cash acquired$725,965 
(1)    Goodwill is the excess of the consideration transferred over the net assets recognized and represents the expected synergies of the combined operations and the assembled workforce acquired in the acquisition. Goodwill recognized as a result of the acquisition is not expected to be deductible for tax purposes.
(2)    Includes $102.8 million of deferred tax liabilities.
Schedule of Acquired Finite-Lived Intangible Assets by Major Class Useful lives and preliminary values are presented in the table below.
Amount (in thousands)
Useful life (years)
Hypercon developed technology platform
$230,000 15
Customer relationships
470,000 15
Trade name
5,000 15
Estimated fair value of intangible assets acquired
$705,000 
v3.25.4
Fair Value Measurement (Tables)
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Schedule of Available-for-Sale Marketable Securities
Available-for-sale marketable securities consisted of the following (in thousands):
December 31, 2025
Amortized CostGross Unrealized GainsGross Unrealized LossesEstimated Fair Value
U.S. treasury securities
$9,002 $— $(2)$9,000 
Total marketable securities, available-for-sale$9,002 $— $(2)$9,000 
December 31, 2024
Amortized CostGross Unrealized GainsGross Unrealized LossesEstimated Fair Value
Asset-backed securities$251 $— $— $251 
Corporate debt securities102,632 150 (207)102,575 
U.S. treasury securities
367,700 442 (572)367,570 
Agency bonds9,844 — (16)9,828 
Total marketable securities, available-for-sale$480,427 $592 $(795)$480,224 
Schedule of Contractual Maturities of Available-for-Sale Debt Securities
The estimated fair value of our contractual maturities of available-for-sale debt securities were as follows (in thousands):
December 31, 2025December 31, 2024
Due within one year$9,000 $314,978 
Due after one year but within five years (1)
— 165,246 
Total estimated fair value of available-for-sale securities
$9,000 $480,224 
(1)    These investments are classified as current assets which reflects management’s intention to use the proceeds from the sale of these investments to fund operations, as necessary.
Schedule of Assets Measured at Fair Value on a Recurring Basis
The following table summarizes, by major security type, our cash equivalents and available-for-sale marketable securities measured at fair value on a recurring basis and are categorized using the fair value hierarchy (in thousands):
December 31, 2025December 31, 2024
Level 1Level 2
Total Estimated Fair Value
Level 1Level 2
Total Estimated Fair Value
Assets
Cash equivalents
Money market funds$175 $— $175 $55,182 $— $55,182 
Available-for-sale marketable
securities
Asset-backed securities— — — — 251 251 
Corporate debt securities— — — — 102,575 102,575 
U.S. treasury securities
9,000 — 9,000 367,570 — 367,570 
Agency bonds— — — 9,828 — 9,828 
Derivative instruments
Currency hedging contracts (1)
— — — — 4,006 4,006 
Total assets measured at fair value
$9,175 $— $9,175 $432,580 $106,832 $539,412 
Liabilities
Derivative instruments
Currency hedging contracts (1)
$— $22,891 $22,891 $— $17 $17 
(1)    Based on observable market transactions of spot currency rates, forward currency rates or equivalently-termed instruments. Carrying amounts of the financial assets and liabilities are equal to the fair value. As of December 31, 2025, the derivative liabilities recorded within accrued expenses and other long-term liabilities in our consolidated balance sheets were $7.7 million and $15.1 million, respectively. As of December 31, 2024, the derivative assets recorded within prepaid expenses and other current assets and prepaid expenses and other assets in our consolidated balance sheets were $2.4 million and $1.6 million, respectively. The derivative liabilities recorded within other long-term liabilities in our consolidated balance sheets as of December 31, 2024 were not material.
v3.25.4
Revenue (Tables)
 12 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
Schedule of Disaggregation of Revenue
Our disaggregated revenues were as follows (in thousands):
Year Ended December 31,
202520242023
Royalties$867,840 $570,991 $447,865 
Product sales, net
Proprietary product sales
194,608 166,620 130,834 
Bulk rHuPH20 sales
133,023 86,334 115,442 
Device partnered product sales
48,813 50,538 54,578 
Total product sales, net376,444 303,492 300,854 
Revenues under collaborative agreements
Upfront license and target nomination fees
18,471 27,000 2,000 
Event-based development and regulatory milestones and other fees
47,000 72,500 69,000 
Sales-based milestones
70,000 30,000 — 
Device licensing and development revenue
16,856 11,341 9,534 
Total revenues under collaborative agreements152,327 140,841 80,534 
Total revenues
$1,396,611 $1,015,324 $829,253 
Schedule of Accounts Receivable, Other Contract Assets and Contract Liabilities
Accounts receivable, net, other contract assets and deferred revenues (contract liabilities) from contracts with customers, including partners, consisted of the following (in thousands):
December 31, 2025December 31, 2024
Accounts receivable, net$426,273 $288,204 
Other contract assets15,000 20,251 
Deferred revenues35,482 10,343 
v3.25.4
Certain Balance Sheet Items (Tables)
 12 Months Ended
Dec. 31, 2025
Balance Sheet Related Disclosures [Abstract]  
Schedule of Accounts Receivable, Net and Contract Assets
Accounts receivable, net and contract assets consisted of the following (in thousands):
December 31,
2025		December 31,
2024
Product sales to partners$69,832 $37,599 
Revenues under collaborative agreements40,020 29,452 
Royalty payments259,298 164,348 
Other product sales65,117 65,542 
Other receivable1,612 — 
Contract assets15,000 20,251 
Total accounts receivable and contract assets
450,879 317,192 
Allowance for distribution fees and discounts(9,606)(8,737)
Total accounts receivable, net and contract assets
$441,273 $308,455 
Schedule of Inventories
Inventories consisted of the following (in thousands):
December 31,
2025		December 31,
2024
Raw materials$21,869 $24,015 
Work-in-process30,920 30,169 
Finished goods144,454 142,944 
Total inventories
197,243 197,128 
Less long-term portion(1)
(20,768)(55,268)
Total inventories, current
$176,475 $141,860 
(1)    Long-term portion of inventories represents inventory expected to remain on hand beyond one year and therefore is included in prepaid expenses and other assets in the consolidated balance sheets.
Schedule of Prepaid Expenses and Other Assets
Prepaid expenses and other assets consisted of the following (in thousands):
December 31,
2025		December 31,
2024
Prepaid manufacturing expenses$71,925 $36,317 
Other prepaid expenses14,563 10,562 
Long-term inventories
20,768 55,268 
Other assets10,934 17,400 
Total prepaid expenses and other assets
118,190 119,547 
Less long-term portion
(53,551)(80,596)
Total prepaid expenses and other assets, current
$64,639 $38,951 
Schedule of Property and Equipment
Property and equipment, net consisted of the following (in thousands):
December 31,
2025		December 31,
2024
Research equipment$18,305 $9,811 
Manufacturing equipment41,863 39,760 
Computer and office equipment8,034 7,955 
Internal-use software
1,878 1,755 
Leasehold improvements7,521 7,012 
Subtotal
77,601 66,293 
Accumulated depreciation and amortization(33,159)(25,429)
Subtotal44,442 40,864 
Right of use of assets37,695 34,171 
Total property and equipment, net
$82,137 $75,035 
Schedule of Accrued Expenses
Accrued expenses consisted of the following (in thousands):
December 31,
2025		December 31,
2024
Accrued compensation and payroll taxes$28,621 $24,400 
Accrued outsourced manufacturing expenses11,775 16,682 
Taxes payable
44,148 30,995 
Product returns and sales allowance46,594 54,588 
Other accrued expenses104,349 26,239 
Lease liability34,569 30,705 
Total accrued expenses
270,056 183,609 
Less long-term portion(113,863)(54,758)
Total accrued expenses, current
$156,193 $128,851 
v3.25.4
Goodwill and Intangible Assets, net (Tables)
 12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill
A summary of the activity impacting goodwill is presented below (in thousands):
Balance as of December 31, 2024
$416,821 
Goodwill acquired
163,539 
Balance as of December 31, 2025
$580,360 
Schedule of Finite-Lived Intangible Assets Accumulated Amortization and Weighted Average Useful Lives The following table shows the cost, accumulated amortization and weighted average useful life in years for our acquired intangible assets as of December 31, 2025 (in thousands).
Weighted Average Useful Life (in years)
Gross Carrying ValueAccumulated AmortizationNet Carrying Value
Auto-injector technology platform
7$402,000 $207,021 $194,979 
XYOSTED proprietary product10136,200 49,098 87,102 
Hypercon developed technology platform
15230,000 1,831 228,169 
Customer relationships
15470,000 3,743 466,257 
Trade name
155,000 40 4,960 
Total intangible assets, net(1)
$1,243,200 $261,733 $981,467 
(1)    An impairment charge of $48.7 million was recognized during the year ended December 31, 2025 resulting in the full impairment of the ATRS-1902 IPR&D intangible asset. The impairment charge resulted from a strategic decision to discontinue the development of ATRS-1902 due to strategic initiatives executed in the quarter ended December 31, 2025.
The following table shows the cost, accumulated amortization and weighted average useful life in years for our acquired intangible assets as of December 31, 2024 (in thousands).
Weighted Average Useful Life (in years)
Gross Carrying ValueAccumulated AmortizationNet Carrying Value
Auto-injector technology platform
7$402,000 $149,592 $252,408 
XYOSTED proprietary product10136,200 35,478 100,722 
Total infinite-lived intangible assets, net
$538,200 $185,070 $353,130 
ATRS-1902 (IPR&D)
Indefinite
48,700 
Total intangible assets, net
$401,830 
Schedule of Indefinite-Lived Intangible Assets The following table shows the cost, accumulated amortization and weighted average useful life in years for our acquired intangible assets as of December 31, 2025 (in thousands).
Weighted Average Useful Life (in years)
Gross Carrying ValueAccumulated AmortizationNet Carrying Value
Auto-injector technology platform
7$402,000 $207,021 $194,979 
XYOSTED proprietary product10136,200 49,098 87,102 
Hypercon developed technology platform
15230,000 1,831 228,169 
Customer relationships
15470,000 3,743 466,257 
Trade name
155,000 40 4,960 
Total intangible assets, net(1)
$1,243,200 $261,733 $981,467 
(1)    An impairment charge of $48.7 million was recognized during the year ended December 31, 2025 resulting in the full impairment of the ATRS-1902 IPR&D intangible asset. The impairment charge resulted from a strategic decision to discontinue the development of ATRS-1902 due to strategic initiatives executed in the quarter ended December 31, 2025.
The following table shows the cost, accumulated amortization and weighted average useful life in years for our acquired intangible assets as of December 31, 2024 (in thousands).
Weighted Average Useful Life (in years)
Gross Carrying ValueAccumulated AmortizationNet Carrying Value
Auto-injector technology platform
7$402,000 $149,592 $252,408 
XYOSTED proprietary product10136,200 35,478 100,722 
Total infinite-lived intangible assets, net
$538,200 $185,070 $353,130 
ATRS-1902 (IPR&D)
Indefinite
48,700 
Total intangible assets, net
$401,830 
Schedule of Finite-Lived Intangible Assets, Estimated Future Amortization Expense
Estimated future annual amortization of finite-lived intangible assets is shown in the following table (in thousands). Actual amortization expense to be reported in future periods could differ from these estimates as a result of acquisitions, divestitures, and asset impairments, among other factors.
Year
Amortization Expense
2026
$118,049 
2027
118,049 
2028
118,049 
2029
83,314 
2030
60,620 
Thereafter483,386 
Total$981,467 
v3.25.4
Long-Term Debt, Net (Tables)
 12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Schedule of Carrying Values and Fair Values of Convertible Notes
The carrying amount and fair value of our Convertible Notes were as follows (in thousands).
December 31,
2025		December 31,
2024
Principal amount
2027 Convertible Notes$209,575 $805,000 
2028 Convertible Notes469,999 720,000 
2031 Convertible Notes
750,000 — 
2032 Convertible Notes
750,000 — 
Total principal amount
$2,179,574 $1,525,000 
Unamortized debt discount
2027 Convertible Notes$(1,058)$(7,518)
2028 Convertible Notes(5,561)(11,684)
2031 Convertible Notes
(15,108)— 
2032 Convertible Notes
(15,217)— 
Total unamortized debt discount$(36,944)$(19,202)
Carrying amount
2027 Convertible Notes$208,517 $797,482 
2028 Convertible Notes464,438 708,316 
2031 Convertible Notes
734,892 — 
2032 Convertible Notes
734,783 — 
Total carrying amount$2,142,630 $1,505,798 
Fair value based on trading levels (Level 2)
2027 Convertible Notes$229,736 $769,218 
2028 Convertible Notes624,690 779,882 
2031 Convertible Notes
755,655 — 
2032 Convertible Notes
764,213 — 
Total fair value of outstanding notes$2,374,294 $1,549,100 
Schedule of Interest Income and Interest Expense Disclosure
The following table summarizes the components of interest expense and the effective interest rates for each of our Convertible Notes (in thousands).
Year Ended December 31,
202520242023
Coupon interest
2024 Convertible Notes$— $— $36 
2027 Convertible Notes1,810 2,013 2,013 
2028 Convertible Notes6,860 7,200 7,200 
2032 Convertible Notes
893 — — 
Total coupon interest
$9,563 $9,213 $9,249 
Amortization of debt discount
2024 Convertible Notes$— $— $24 
2027 Convertible Notes3,029 3,432 3,409 
2028 Convertible Notes2,980 3,118 3,073 
2031 Convertible Notes
397 — — 
2032 Convertible Notes
289 — — 
Total amortization of debt discount$6,695 $6,550 $6,506 
Interest expense
2024 Convertible Notes$— $— $60 
2027 Convertible Notes4,839 5,445 5,422 
2028 Convertible Notes9,840 10,318 10,273 
2031 Convertible Notes
397 — — 
2032 Convertible Notes
1,182 — — 
Total interest expense$16,258 $15,763 $15,755 
Effective interest rates
2027 Convertible Notes0.7 %0.7 %0.7 %
2028 Convertible Notes1.5 %1.5 %1.5 %
2031 Convertible Notes
0.4 %— %— %
2032 Convertible Notes
1.2 %— %— %
Schedule of Future Maturities Interest Payments of Long-term Debt
Future maturities and interest payments of long-term debt as of December 31, 2025, are as follows (in thousands):
2026$11,841 
2027221,099 
2028481,261 
20296,563 
20306,563 
Thereafter1,513,125 
Total minimum payments2,240,452 
Less amount representing coupon interest(60,878)
Gross balance of long-term debt2,179,574 
Less unamortized debt discount(36,944)
Carrying value of long-term debt2,142,630 
Less current portion of long-term debt— 
Long-term debt, less current portion and unamortized debt discount$2,142,630 
v3.25.4
Stockholders' Equity (Tables)
 12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Schedule of Share-Based Compensation Expense
The following table summarizes share-based compensation expense included in our consolidated statements of income related to share-based awards excluding the acceleration of Elektrofi and Surf Bio equity awards (in thousands):
Year Ended December 31,
 202520242023
Research and development$14,555 $12,985 $13,345 
Selling, general and administrative37,010 30,400 23,275 
Total share-based compensation expense
$51,565 $43,385 $36,620 
Schedule of Share-Based Compensation Expense by Type
Share-based compensation expense by type of share-based award was as follows (in thousands):
Year Ended December 31,
 202520242023
Stock options$15,650 $16,078 $16,351 
RSUs, PSUs and ESPP
35,915 27,307 20,269 
Total share-based compensation expense
$51,565 $43,385 $36,620 
Schedule of Total Unrecognized Estimated Compensation Cost by Type of Award and Weighted Average Remaining Requisite Service Period
Total unrecognized estimated compensation cost by type of award and the weighted-average remaining requisite service period over which such expense is expected to be recognized as of December 31, 2025 (in thousands, unless otherwise noted):
December 31, 2025
 Unrecognized
Expense
Remaining
Weighted-Average
Recognition Period
( in years)
Stock options$31,516 2.25
RSUs56,647 2.47
PSUs23,426 1.95
ESPP270 0.34
Schedule of Stock Option Award Activity
A summary of our stock option award activity as of and for the year ended December 31, 2025 is as follows: 
Shares
Underlying
Stock Options		Weighted
Average Exercise
Price per Share
Weighted
Average
Remaining
Contractual
Term (in years)
Aggregate
Intrinsic
Value (in millions)
Outstanding as of December 31, 2024
5,476,206 $31.83 
Granted781,657 46.71 
Exercised(1,122,386)24.91 
Canceled/forfeited(276,344)44.62 
Outstanding as of December 31, 2025
4,859,133 35.10 5.90$70.5 
Vested and expected to vest as of December 31, 2025
4,859,133 35.10 5.9070.5 
Exercisable as of December 31, 2025
3,371,956 $30.87 4.82$58.5 
Schedule of Valuation Assumptions The assumptions used in the Black-Scholes Model were as follows:
Year Ended December 31,
 202520242023
Expected volatility
39.68 - 42.14%
40.01 - 42.13%
39.68 - 40.82%
Average expected term (in years)4.85.04.8
Risk-free interest rate
3.67 - 4.34%
3.65 - 4.70%
3.37 - 4.72%
Expected dividend yield— — — 
Schedule of RSU Activity
The following table summarizes our RSU activity during the year ended December 31, 2025:
Number of
Shares		Weighted
Average
Grant Date
Fair Value
Weighted
Average
Remaining
Contractual
Term (in years)
Aggregate
Intrinsic
Value (in millions)
Outstanding as of December 31, 2024
1,398,776 $42.43 
Granted772,787 60.04 
Vested(459,420)42.53 
Forfeited(190,237)47.59 
Outstanding as of December 31, 2025
1,521,906 $50.69 1.33$72.8 
Schedule of PSU Activity
The following table summarizes our PSU activity during the year ended December 31, 2025:
Number of
Shares		Weighted
Average
Grant Date
Fair Value
Outstanding as of December 31, 2024
482,403 $46.64 
Granted442,868 49.05 
Vested(154,032)41.79 
Forfeited(55,096)53.70 
Outstanding as of December 31, 2025
716,143 $48.63 
Schedule of Repurchase Agreements
We had the following share repurchase activity under the approved share repurchase program (in thousands, except share and per share amounts):
2025
Total Number of Shares Purchased
Weighted-Average Price Paid Per Share
Total Cost
First quarter(1)
452,453 $53.95 $24,410 
Second quarter(2)
5,818,338 52.16 303,490 
Third quarter(2)
725,514 53.59 38,882 
Fourth quarter
— — — 
6,996,305 $52.42 $366,782 
(1) The shares we repurchased during the first quarter are part of the ASR initiated in December 2024.
(2) Included in the total cost of shares purchased is a commission fee of $0.02 per share.
v3.25.4
Earnings per share (Tables)
 12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted A reconciliation of the numerators and the denominators of the basic and diluted earnings per share computations is as follows (in thousands, except per share amounts):
Year Ended December 31,
 202520242023
Numerator
Net income$316,889 $444,091 $281,594 
Denominator
Weighted average common shares outstanding for basic earnings per share
119,840 126,827 131,927 
Dilutive potential common stock outstanding
Stock options
2,077 1,827 1,824 
RSUs, PSUs and ESPP
969 696 388 
Convertible Notes1,018 74 58 
Weighted average common shares outstanding for diluted earnings per share
123,904 129,424 134,197 
Earnings per share
Basic$2.64 $3.50 $2.13 
Diluted$2.56 $3.43 $2.10 
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share
Shares which have been excluded from the calculation of diluted earnings per common share because their effect was anti-dilutive include the following (shares in millions):
Year Ended December 31,
 202520242023
Anti-dilutive securities(1)
24.6 26.1 27.8 
(1)    The anti-dilutive securities include outstanding stock options, unvested RSUs, unvested PSUs, common shares expected to be issued under our ESPP and Convertible Notes.
v3.25.4
Commitments and Contingencies (Tables)
 12 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Future Minimum Operating Lease Payments
Approximate annual future minimum operating lease payments as of December 31, 2025 are as follows (in thousands): 
Year
Operating
Leases
2026$11,277 
20279,005 
20287,857 
20296,271 
20305,334 
Thereafter747 
Total minimum lease payments40,491 
Less imputed interest(5,922)
Total$34,569 
v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Income Before Income Tax (Expense) Summarized by Region
Total income before income tax expense summarized by region was as follows (in thousands):
Year Ended December 31,
202520242023
United States$467,527 $557,852 $348,828 
Foreign(652)(720)(499)
Income before income tax expense
$466,875 $557,132 $348,329 
Schedule of Components of Deferred Tax Assets and Liabilities
Significant components of our net deferred tax assets (liabilities) were as follows (in thousands).
December 31,
20252024
Deferred tax assets
Net operating loss carryforwards$60,853 $20,736 
Capped call transactions
46,806 — 
Research and development and credits
22,308 17,868 
Share-based compensation9,960 6,567 
ASC 842 lease liability7,927 7,126 
Capitalized research expense5,370 30,253 
Inventory related reserves19,691 19,867 
Other, net16,949 4,206 
Total deferred tax assets189,864 106,623 
Valuation allowance for deferred tax assets(878)(2,363)
Deferred tax assets, net of valuation allowance188,986 104,260 
Deferred tax liabilities
Non-deductible book amortization (217,883)(89,247)
ASC 842 right of use asset(8,589)(7,882)
Other, net(5,438)(3,276)
Total deferred tax liabilities(231,910)(100,405)
Net deferred tax (liabilities) asset
$(42,924)$3,855 
Schedule of Components of Income Tax Expense (Benefit)
Income tax expense (benefit) was comprised of the following components (in thousands):
Year Ended December 31,
202520242023
Current - federal$137,708 $98,139 $24,963 
Current - state16,741 13,762 5,717 
Deferred - federal(4,769)1,815 34,037 
Deferred - state306 (675)2,018 
Total income tax expense
$149,986 $113,041 $66,735 
Schedule of Reconciliation of Provision for Income Taxes to Federal Income Tax Rate
The provision for income taxes on earnings subject to income taxes differs from the statutory federal income tax rate due to the following (dollars in thousands):
Year Ended December 31,
202520242023
DollarPercentDollarPercentDollarPercent
U.S. federal statutory tax expense and rate
$98,044 21.00 %$116,998 21.00 %$73,254 21.00 %
State and local income taxes, net of federal income tax effect(1)
13,252 2.84 %10,963 1.97 %4,134 1.19 %
Foreign tax effects
137 0.03 %151 0.03 %105 0.03 %
Effect of cross-border tax laws
Foreign-derived intangible income
(22,921)(4.91)%(19,644)(3.53)%(11,989)(3.44)%
Tax credits
Research and development tax credits
(1,840)(0.39)%(1,457)(0.27)%(4,394)(1.26)%
Changes in valuation allowances
(1,498)(0.32)%96 0.02 %
Nontaxable or non-deductible items
Non-deductible acquired IPR&D
59,826 12.81 %— — %— — %
Other
5,458 1.17 %1,942 0.35 %2,605 0.75 %
Changes in unrecognized tax benefits
655 0.14 %2,610 0.47 %455 0.13 %
Other adjustments
(1,127)(0.24)%1,382 0.25 %2,565 0.73 %
Income tax expense and effective income tax rate
$149,986 32.13 %$113,041 20.29 %$66,735 19.13 %
(1) State taxes in NY, NJ, MN, PA, CA and MA made up the majority (greater than 50%) of the tax effect in this category.
Schedule of Unrecognized Tax Benefits
The following table summarizes the activity related to our unrecognized tax benefits (in thousands):
Year Ended December 31,
202520242023
Gross unrecognized tax benefits, beginning of period
$24,519 $21,918 $19,482 
Increases in tax positions for current year
702 612 791 
Increases in tax positions for prior years
244 2,181 1,645 
Increases in tax positions related to business acquisition
1,418 — — 
Decreases in tax positions for prior years and lapse in statute of limitations
(18)(192)— 
Gross unrecognized tax benefits, end of period$26,865 $24,519 $21,918 
Schedule of Cash Flow, Supplemental Disclosures
Income taxes paid, net of refunds, are as following (in thousands):
Year Ended December 31,
202520242023
U.S. Federal
$119,100 $65,000 $22,621 
State
Pennsylvania(1)
— — 3,320 
All other states
15,541 15,618 5,815 
Total income taxes paid, net of refunds
$134,641 $80,618 $31,756 
(1)    Jurisdiction in which income taxes paid, net of refunds, exceeded 5% of the total income taxes paid, net of refunds. The amount of income taxes paid, net of refunds, during the years ended December 31, 2024 and December 31, 2025 did not meet the 5% disaggregation threshold, and therefore, is included in “All other states.”
v3.25.4
Organization and Business (Details)
 12 Months Ended
Dec. 31, 2025
product
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]  
Royalties received, number of products sold 10
Roche  
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]  
Royalties received, number of products sold 5
Takeda  
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]  
Royalties received, number of products sold 1
Janssen  
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]  
Royalties received, number of products sold 2
Argenx  
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]  
Royalties received, number of products sold 1
BMS  
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]  
Royalties received, number of products sold 1
v3.25.4
Summary of Significant Accounting Policies - Restricted Cash (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Accounting Policies [Abstract]      
Restricted cash $ 2,601 $ 0 $ 0
v3.25.4
Summary of Significant Accounting Policies - Concentrations of Credit Risk (Details)
 12 Months Ended
Dec. 31, 2025
USD ($)
bank
financialInstitution
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Concentration Risk [Line Items]      
Commercial banks where cash and cash equivalents are maintained | bank 4    
Financial institutions where marketable securities are maintained | financialInstitution 2    
Accounts receivable, allowance for credit loss $ 0 $ 0  
Total revenues 1,396,611,000 1,015,324,000 $ 829,253,000
Geographic Concentration Risk      
Concentration Risk [Line Items]      
Total revenues 1,396,611,000 1,015,324,000 829,253,000
United States | Geographic Concentration Risk      
Concentration Risk [Line Items]      
Total revenues 822,975,000 690,461,000 587,196,000
Switzerland | Geographic Concentration Risk      
Concentration Risk [Line Items]      
Total revenues 276,414,000 212,391,000 149,024,000
Belgium | Geographic Concentration Risk      
Concentration Risk [Line Items]      
Total revenues 217,516,000 84,005,000 58,354,000
Japan | Geographic Concentration Risk      
Concentration Risk [Line Items]      
Total revenues 46,372,000 18,939,000 15,096,000
All other foreign | Geographic Concentration Risk      
Concentration Risk [Line Items]      
Total revenues $ 33,334,000 $ 9,528,000 $ 19,583,000
Janssen and Roche | Accounts Receivable | Customer Concentration Risk      
Concentration Risk [Line Items]      
Concentration risk, percentage (instant date) 69.00%    
Janssen, Roche and Teva      
Concentration Risk [Line Items]      
Concentration risk, percentage (instant date)   60.00%  
Partner A | Sales | Customer Concentration Risk      
Concentration Risk [Line Items]      
Concentration risk, percentage 41.00% 41.00% 44.00%
Partner B | Sales | Customer Concentration Risk      
Concentration Risk [Line Items]      
Concentration risk, percentage 17.00% 17.00% 19.00%
Partner C | Sales | Customer Concentration Risk      
Concentration Risk [Line Items]      
Concentration risk, percentage 16.00% 9.00% 7.00%
Partner D | Sales | Customer Concentration Risk      
Concentration Risk [Line Items]      
Concentration risk, percentage 6.00% 8.00% 10.00%
v3.25.4
Summary of Significant Accounting Policies - Leases (Details)
Dec. 31, 2025
Minimum  
Lessee, Lease, Description [Line Items]  
Operating lease, term of contract (years) 3 years
Maximum  
Lessee, Lease, Description [Line Items]  
Operating lease, term of contract (years) 12 years
v3.25.4
Summary of Significant Accounting Policies - Property and Equipment, Net (Details)
Dec. 31, 2025
Minimum  
Property, Plant and Equipment [Line Items]  
Property, plant and equipment, useful lives (years) 3 years
Maximum  
Property, Plant and Equipment [Line Items]  
Property, plant and equipment, useful lives (years) 10 years
v3.25.4
Summary of Significant Accounting Policies - Cash Flow Hedges - Currency Risks (Details) - USD ($)
$ in Millions
 3 Months Ended
Jun. 30, 2024
Dec. 31, 2025
Derivative [Line Items]    
Foreign currency cash flow hedge gain (loss) to be reclassified during next 12 months   $ (7.7)
Cash Flow Hedging | Currency hedging contracts    
Derivative [Line Items]    
Derivative, contract term (years) 4 years  
v3.25.4
Summary of Significant Accounting Policies - Revenue Recognition (Details)
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Period of contract termination by written notice 90 days
v3.25.4
Summary of Significant Accounting Policies - Segment Information (Details)
 12 Months Ended
Dec. 31, 2025
segment
Accounting Policies [Abstract]  
Number of operating segments 1
v3.25.4
Business Combination - Narrative (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 22, 2025
Nov. 18, 2025
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Business Combination [Line Items]          
Acquired in-process research and development expense     $ 284,887 $ 0 $ 0
Surf Bio, Inc          
Business Combination [Line Items]          
Asset acquisition, consideration transferred $ 294,200        
Asset acquisition, consideration transferred including transaction costs 305,000        
Cash acquired from asset acquisition 6,400        
Asset acquisition, consideration transferred, transaction cost 10,200        
Cash acquired from asset acquisition, used to fund seller payments and transaction expenses. 4,300        
Asset acquisition, consideration transferred, contingent consideration 100,000        
Payments to acquire productive assets 294,800        
Asset acquisition, reduction to consideration transferred, for accelerated stock-based compensation expense 10,800        
Acquired in-process research and development expense $ 284,900        
Elektrofi, Inc          
Business Combination [Line Items]          
Purchase consideration   $ 810,392      
Consideration transferred, cash paid per acquiree share (usd per share)   $ 28.80      
Payments to acquire businesses, options granted and outstanding   $ 56,500      
Estimated fair value of contingent consideration   23,000      
Consideration for seller transaction costs paid   $ 18,400      
Transaction costs     $ 13,700    
v3.25.4
Business Combination - Total Purchase Consideration (Details) - Elektrofi, Inc
$ in Thousands
Nov. 18, 2025
USD ($)
Business Combination [Line Items]  
Cash consideration payments to stockholders and option holders as of November 18, 2025 $ 787,392
Estimated fair value of contingent consideration 23,000
Total purchase consideration $ 810,392
v3.25.4
Business Combination - Assets Acquired and Liabilities Assumed (Details) - USD ($)
$ in Thousands
 12 Months Ended
Nov. 18, 2025
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Assets acquired        
Goodwill   $ 580,360 $ 416,821  
Liabilities assumed        
Total purchase price, net of cash acquired   $ 725,965 $ 0 $ 0
Elektrofi, Inc        
Assets acquired        
Cash and cash equivalents $ 84,427      
Accounts receivable, net 4,755      
Prepaid expenses and other current assets 879      
Total current assets 90,061      
Property and equipment, net 7,338      
Operating lease right-of-use assets 8,441      
Goodwill 163,539      
Intangible assets 705,000      
Other assets 182      
Total assets acquired 974,561      
Liabilities assumed        
Accounts payable (929)      
Accrued expenses and other current liabilities (26,803)      
Deferred revenue, current (5,674)      
Operating lease liabilities, current (3,440)      
Other current liabilities (51)      
Total current liabilities (36,897)      
Deferred revenue, net of current portion (19,974)      
Operating lease liabilities, net of current portion (4,484)      
Other liabilities (102,816)      
Total liabilities assumed (164,171)      
Net assets acquired 810,392      
Less cash acquired (84,427)      
Total purchase price, net of cash acquired 725,965      
Deferred revenue, net of current portion $ 102,800      
v3.25.4
Business Combination - Intangible Assets Acquired (Details) - Elektrofi, Inc
$ in Thousands
Nov. 18, 2025
USD ($)
Business Combination [Line Items]  
Estimated fair value of intangible assets acquired $ 705,000
Hypercon developed technology platform  
Business Combination [Line Items]  
Estimated fair value of intangible assets acquired $ 230,000
Useful life (years) 15 years
Customer relationships  
Business Combination [Line Items]  
Estimated fair value of intangible assets acquired $ 470,000
Useful life (years) 15 years
Trade name  
Business Combination [Line Items]  
Estimated fair value of intangible assets acquired $ 5,000
Useful life (years) 15 years
v3.25.4
Fair Value Measurement - Available-for-Sale Securities (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Schedule of Available-for-sale Securities    
Amortized Cost $ 9,002 $ 480,427
Gross Unrealized Gains 0 592
Gross Unrealized Losses (2) (795)
Estimated Fair Value 9,000 480,224
U.S. treasury securities    
Schedule of Available-for-sale Securities    
Amortized Cost 9,002 367,700
Gross Unrealized Gains 0 442
Gross Unrealized Losses (2) (572)
Estimated Fair Value 9,000 367,570
Asset-backed securities    
Schedule of Available-for-sale Securities    
Amortized Cost   251
Gross Unrealized Gains   0
Gross Unrealized Losses   0
Estimated Fair Value 0 251
Corporate debt securities    
Schedule of Available-for-sale Securities    
Amortized Cost   102,632
Gross Unrealized Gains   150
Gross Unrealized Losses   (207)
Estimated Fair Value 0 102,575
Agency bonds    
Schedule of Available-for-sale Securities    
Amortized Cost   9,844
Gross Unrealized Gains   0
Gross Unrealized Losses   (16)
Estimated Fair Value $ 0 $ 9,828
v3.25.4
Fair Value Measurement - Narrative (Details) - USD ($)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Nov. 18, 2025
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]        
Fair market value of gross unrealized loss position $ 9,000,000      
Unrealized loss position of debt securities 2,000 $ 795,000    
Credit loss 0      
Available-for-sale marketable securities 9,000,000 480,224,000    
Contingent liability fair value measurement gain 0 0 $ 13,200,000  
Antares Pharma, Inc        
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]        
Contingent liability fair value measurement gain     $ 13,200,000  
Elektrofi Acquisition        
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]        
Business combination, contingent consideration, liability       $ 23,000,000
Level 3        
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]        
Available-for-sale marketable securities $ 0 $ 0    
v3.25.4
Fair Value Measurement - Maturities (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Fair Value Disclosures [Abstract]    
Due within one year $ 9,000 $ 314,978
Due after one year but within five years 0 165,246
Total estimated fair value of available-for-sale securities $ 9,000 $ 480,224
v3.25.4
Fair Value Measurement - Major Security of Fair Value Measured on a Recurring Basis (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Assets    
Available-for-sale marketable securities $ 9,000 $ 480,224
Total assets measured at fair value 9,175 539,412
Liabilities    
Derivative liability, current 7,700  
Derivative liability, noncurrent $ 15,100 0
Derivative asset, current   2,400
Derivative asset, noncurrent   $ 1,600
Derivative Liability, Current, Statement of Financial Position [Extensible Enumeration] Total accrued expenses, current  
Derivative Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] Other long-term liabilities  
Derivative Asset, Current, Statement of Financial Position [Extensible Enumeration]   Total prepaid expenses and other assets, current
Derivative Asset, Noncurrent, Statement of Financial Position [Extensible Enumeration]   Prepaid Expense and Other Assets, Noncurrent
Currency hedging contracts    
Assets    
Derivative instruments $ 0 $ 4,006
Liabilities    
Derivative instruments 22,891 17
Level 1    
Assets    
Total assets measured at fair value 9,175 432,580
Level 1 | Currency hedging contracts    
Assets    
Derivative instruments 0 0
Liabilities    
Derivative instruments 0 0
Level 2    
Assets    
Total assets measured at fair value 0 106,832
Level 2 | Currency hedging contracts    
Assets    
Derivative instruments 0 4,006
Liabilities    
Derivative instruments 22,891 17
Asset-backed securities    
Assets    
Available-for-sale marketable securities 0 251
Asset-backed securities | Level 1    
Assets    
Available-for-sale marketable securities 0 0
Asset-backed securities | Level 2    
Assets    
Available-for-sale marketable securities 0 251
Corporate debt securities    
Assets    
Available-for-sale marketable securities 0 102,575
Corporate debt securities | Level 1    
Assets    
Available-for-sale marketable securities 0 0
Corporate debt securities | Level 2    
Assets    
Available-for-sale marketable securities 0 102,575
U.S. treasury securities    
Assets    
Available-for-sale marketable securities 9,000 367,570
U.S. treasury securities | Level 1    
Assets    
Available-for-sale marketable securities 9,000 367,570
U.S. treasury securities | Level 2    
Assets    
Available-for-sale marketable securities 0 0
Agency bonds    
Assets    
Available-for-sale marketable securities 0 9,828
Agency bonds | Level 1    
Assets    
Available-for-sale marketable securities 0 9,828
Agency bonds | Level 2    
Assets    
Available-for-sale marketable securities 0 0
Money market funds    
Assets    
Cash equivalents 175 55,182
Money market funds | Level 1    
Assets    
Cash equivalents 175 55,182
Money market funds | Level 2    
Assets    
Cash equivalents $ 0 $ 0
v3.25.4
Revenue - Disaggregation of Revenue (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Disaggregation of Revenue [Line Items]      
Total revenues $ 1,396,611 $ 1,015,324 $ 829,253
Royalties      
Disaggregation of Revenue [Line Items]      
Total revenues 867,840 570,991 447,865
Product sales, net      
Disaggregation of Revenue [Line Items]      
Total revenues 376,444 303,492 300,854
Proprietary product sales      
Disaggregation of Revenue [Line Items]      
Total revenues 194,608 166,620 130,834
Bulk rHuPH20 sales      
Disaggregation of Revenue [Line Items]      
Total revenues 133,023 86,334 115,442
Device partnered product sales      
Disaggregation of Revenue [Line Items]      
Total revenues 48,813 50,538 54,578
Revenues under collaborative agreements      
Disaggregation of Revenue [Line Items]      
Total revenues 152,327 140,841 80,534
Upfront license and target nomination fees      
Disaggregation of Revenue [Line Items]      
Total revenues 18,471 27,000 2,000
Event-based development and regulatory milestones and other fees      
Disaggregation of Revenue [Line Items]      
Total revenues 47,000 72,500 69,000
Sales-based milestones      
Disaggregation of Revenue [Line Items]      
Total revenues 70,000 30,000 0
Device licensing and development revenue      
Disaggregation of Revenue [Line Items]      
Total revenues $ 16,856 $ 11,341 $ 9,534
v3.25.4
Revenue - Narrative (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Disaggregation of Revenue [Line Items]    
Revenue recognized variable consideration and other uncertainties satisfied $ 47,000  
Revenue recognized previously included in deferred revenue 2,000  
Deferred revenues 35,482 $ 10,343
Contract assets 15,000 $ 20,251
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01    
Disaggregation of Revenue [Line Items]    
Revenue, remaining performance obligation $ 6,800  
Deferred revenue, remaining performance obligation, expected timing 12 months  
Other collaborators    
Disaggregation of Revenue [Line Items]    
Revenue, remaining performance obligation $ 325,000  
License fees and event-based payments    
Disaggregation of Revenue [Line Items]    
Revenue recognized from prior periods 984,800  
Product sales, net    
Disaggregation of Revenue [Line Items]    
Revenue remaining performance obligations, related to unfulfilled product purchase orders $ 289,500  
v3.25.4
Revenue - Accounts Receivable, Other Contract Assets and Contract Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]    
Accounts receivable, net $ 426,273 $ 288,204
Other contract assets 15,000 20,251
Deferred revenues $ 35,482 $ 10,343
v3.25.4
Certain Balance Sheet Items - Accounts Receivable, Net and Contract Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Contract assets $ 15,000 $ 20,251
Total accounts receivable and contract assets 450,879 317,192
Allowance for distribution fees and discounts (9,606) (8,737)
Total accounts receivable, net and contract assets 441,273 308,455
Product sales to partners    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Accounts Receivable, before Allowance for Credit Loss, Current 69,832 37,599
Revenues under collaborative agreements    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Accounts Receivable, before Allowance for Credit Loss, Current 40,020 29,452
Royalty payments    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Accounts Receivable, before Allowance for Credit Loss, Current 259,298 164,348
Other product sales    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Accounts Receivable, before Allowance for Credit Loss, Current 65,117 65,542
Other receivable    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Accounts Receivable, before Allowance for Credit Loss, Current $ 1,612 $ 0
v3.25.4
Certain Balance Sheet Items - Inventories (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Balance Sheet Related Disclosures [Abstract]    
Raw materials $ 21,869 $ 24,015
Work-in-process 30,920 30,169
Finished goods 144,454 142,944
Total inventories 197,243 197,128
Less long-term portion (20,768) (55,268)
Total inventories, current $ 176,475 $ 141,860
v3.25.4
Certain Balance Sheet Items - Prepaid Expenses and Other Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Balance Sheet Related Disclosures [Abstract]    
Prepaid manufacturing expenses $ 71,925 $ 36,317
Other prepaid expenses 14,563 10,562
Long-term inventories 20,768 55,268
Other assets 10,934 17,400
Total prepaid expenses and other assets 118,190 119,547
Less long-term portion (53,551) (80,596)
Total prepaid expenses and other assets, current $ 64,639 $ 38,951
v3.25.4
Certain Balance Sheet Items - Property and Equipment (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Property and equipment, gross $ 77,601 $ 66,293
Accumulated depreciation and amortization (33,159) (25,429)
Subtotal 44,442 40,864
Operating lease right-of-use assets 37,695 34,171
Total property and equipment, net $ 82,137 $ 75,035
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Total property and equipment, net Total property and equipment, net
Research equipment    
Property and equipment, gross $ 18,305 $ 9,811
Manufacturing equipment    
Property and equipment, gross 41,863 39,760
Computer and office equipment    
Property and equipment, gross 8,034 7,955
Internal-use software    
Property and equipment, gross 1,878 1,755
Leasehold improvements    
Property and equipment, gross $ 7,521 $ 7,012
v3.25.4
Certain Balance Sheet Items - Narrative (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Balance Sheet Related Disclosures [Abstract]      
Depreciation and amortization $ 11,389 $ 10,263 $ 11,083
Right-of-use asset amortization 6,500 5,700 5,500
Operating lease, accretion of liability 2,200 2,200 2,500
Operating lease, cost 8,700 7,900 8,000
Operating lease payments $ 7,700 $ 6,900 $ 6,700
v3.25.4
Certain Balance Sheet Items - Accrued Expenses (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Summary of Accrued Expenses    
Accrued compensation and payroll taxes $ 28,621 $ 24,400
Accrued outsourced manufacturing expenses 11,775 16,682
Taxes payable 44,148 30,995
Product returns and sales allowance 46,594 54,588
Other accrued expenses 104,349 26,239
Lease liability 34,569 30,705
Total accrued expenses 270,056 183,609
Less long-term portion (113,863) (54,758)
Total accrued expenses, current $ 156,193 $ 128,851
Operating Lease, Liability, Statement of Financial Position [Extensible List] Total accrued expenses, current Total accrued expenses, current
v3.25.4
Goodwill and Intangible Assets, net - Goodwill (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
USD ($)
Goodwill [Roll Forward]  
Balance as of December 31, 2024 $ 416,821
Goodwill acquired 163,539
Balance as of December 31, 2025 $ 580,360
v3.25.4
Goodwill and Intangible Assets, net - Narrative (Details)
 12 Months Ended
Dec. 31, 2025
Minimum  
Goodwill [Line Items]  
Weighted Average Useful Life (in years) 7 years
Maximum  
Goodwill [Line Items]  
Weighted Average Useful Life (in years) 15 years
v3.25.4
Goodwill and Intangible Assets, net - Intangible Assets (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]      
Gross Carrying Value $ 1,243,200 $ 538,200  
Accumulated Amortization 261,733 185,070  
Net Carrying Value - finite intangible assets 981,467 353,130  
ATRS-1902 (IPR&D)   48,700  
Intangible assets, net 981,467 401,830  
Impairment of intangible asset $ 48,700 $ 0 $ 0
Auto-injector technology platform      
Finite-Lived Intangible Assets [Line Items]      
Weighted Average Useful Life (in years) 7 years 7 years  
Gross Carrying Value $ 402,000 $ 402,000  
Accumulated Amortization 207,021 149,592  
Net Carrying Value - finite intangible assets $ 194,979 $ 252,408  
XYOSTED proprietary product      
Finite-Lived Intangible Assets [Line Items]      
Weighted Average Useful Life (in years) 10 years 10 years  
Gross Carrying Value $ 136,200 $ 136,200  
Accumulated Amortization 49,098 35,478  
Net Carrying Value - finite intangible assets $ 87,102 $ 100,722  
Hypercon developed technology platform      
Finite-Lived Intangible Assets [Line Items]      
Weighted Average Useful Life (in years) 15 years    
Gross Carrying Value $ 230,000    
Accumulated Amortization 1,831    
Net Carrying Value - finite intangible assets $ 228,169    
Customer relationships      
Finite-Lived Intangible Assets [Line Items]      
Weighted Average Useful Life (in years) 15 years    
Gross Carrying Value $ 470,000    
Accumulated Amortization 3,743    
Net Carrying Value - finite intangible assets $ 466,257    
Trade name      
Finite-Lived Intangible Assets [Line Items]      
Weighted Average Useful Life (in years) 15 years    
Gross Carrying Value $ 5,000    
Accumulated Amortization 40    
Net Carrying Value - finite intangible assets $ 4,960    
v3.25.4
Goodwill and Intangible Assets, net - Future Amortization (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]    
2026 $ 118,049  
2027 118,049  
2028 118,049  
2029 83,314  
2030 60,620  
Thereafter 483,386  
Total $ 981,467 $ 353,130
v3.25.4
Long-Term Debt, Net - Narrative (Details)
 1 Months Ended 12 Months Ended
Nov. 30, 2025
USD ($)
trading_day
businessDay
$ / shares
Mar. 31, 2023
USD ($)
shares
Aug. 31, 2022
USD ($)
trading_day
businessDay
$ / shares
Mar. 31, 2021
USD ($)
trading_day
collaborator
$ / shares
Jan. 31, 2021
$ / shares
Nov. 30, 2019
USD ($)
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Aug. 15, 2022
$ / shares
Debt Instrument [Line Items]                    
Total principal amount             $ 2,179,574,000 $ 1,525,000,000    
Debt issuance costs             4,938,000 0 $ 0  
Payment for capped calls     $ 69,100,000              
2032 Convertible Notes                    
Debt Instrument [Line Items]                    
Total principal amount             750,000,000 0    
Proceeds from Convertible Debt             735,000,000 0 0  
Cap call transaction, cap price per share (usd per share) | $ / shares $ 136.78                  
Sale of stock premium over last reported sale price, percentage 100.00%                  
Sale of stock, price per share (usd per share) | $ / shares $ 68.30                  
Payment for capped calls $ 106,800,000           106,800,000 0 0  
2032 Convertible Notes | Convertible Debt                    
Debt Instrument [Line Items]                    
Interest rate, stated percentage 0.875%                  
Total principal amount $ 750,000,000                  
Lender fee 15,000,000                  
Proceeds from Convertible Debt 735,000,000                  
Debt issuance costs $ 500,000                  
Conversion rate 0.0114683                  
Debt, convertible, conversion price (usd per share) | $ / shares $ 87.20                  
2032 Convertible Notes | Convertible Debt | Period One                    
Debt Instrument [Line Items]                    
Convertible, threshold percentage of stock price trigger 130.00%                  
Convertible, threshold trading days | trading_day 20                  
Convertible, threshold consecutive trading days | trading_day 30                  
2032 Convertible Notes | Convertible Debt | Period Two                    
Debt Instrument [Line Items]                    
Convertible, threshold percentage of stock price trigger 98.00%                  
Convertible, threshold consecutive trading days | trading_day 5                  
Convertible, threshold consecutive business days | businessDay 5                  
2031 Convertible Notes                    
Debt Instrument [Line Items]                    
Total principal amount             750,000,000 0    
Proceeds from Convertible Debt             735,000,000 0 0  
Cap call transaction, cap price per share (usd per share) | $ / shares $ 136.78                  
Sale of stock premium over last reported sale price, percentage 100.00%                  
Sale of stock, price per share (usd per share) | $ / shares $ 68.30                  
Payment for capped calls $ 104,000,000           104,025,000 0 0  
2031 Convertible Notes | Convertible Debt                    
Debt Instrument [Line Items]                    
Interest rate, stated percentage 0.00%                  
Total principal amount $ 750,000,000                  
Lender fee 15,000,000                  
Proceeds from Convertible Debt 735,000,000                  
Debt issuance costs $ 500,000                  
Conversion rate 0.0114683                  
Debt, convertible, conversion price (usd per share) | $ / shares $ 87.20                  
2031 Convertible Notes | Convertible Debt | Period One                    
Debt Instrument [Line Items]                    
Convertible, threshold percentage of stock price trigger 130.00%                  
Convertible, threshold trading days | trading_day 20                  
Convertible, threshold consecutive trading days | trading_day 30                  
2031 Convertible Notes | Convertible Debt | Period Two                    
Debt Instrument [Line Items]                    
Convertible, threshold percentage of stock price trigger 98.00%                  
Convertible, threshold consecutive trading days | trading_day 5                  
Convertible, threshold consecutive business days | businessDay 5                  
2028 Convertible Notes                    
Debt Instrument [Line Items]                    
Total principal amount             469,999,000 720,000,000    
Cap call transaction, cap price per share (usd per share) | $ / shares     $ 75.4075              
Sale of stock premium over last reported sale price, percentage     75.00%              
Sale of stock, price per share (usd per share) | $ / shares                   $ 43.09
Repayments of convertible debt     $ 342,900,000       250,001,000 0 0  
2028 Convertible Notes | Convertible Debt                    
Debt Instrument [Line Items]                    
Interest rate, stated percentage     1.00%              
Total principal amount     $ 720,000,000              
Lender fee     18,000,000              
Proceeds from Convertible Debt     702,000,000              
Debt issuance costs     $ 1,000,000              
Conversion rate     0.0178517              
Debt, convertible, conversion price (usd per share) | $ / shares     $ 56.02              
2028 Convertible Notes | Convertible Debt | Period One                    
Debt Instrument [Line Items]                    
Convertible, threshold percentage of stock price trigger     130.00%              
Convertible, threshold trading days | trading_day     20              
Convertible, threshold consecutive trading days | trading_day     30              
2028 Convertible Notes | Convertible Debt | Period Two                    
Debt Instrument [Line Items]                    
Convertible, threshold percentage of stock price trigger     98.00%              
Convertible, threshold consecutive trading days | trading_day     5              
Convertible, threshold consecutive business days | businessDay     5              
2027 Convertible Notes                    
Debt Instrument [Line Items]                    
Total principal amount             209,575,000 805,000,000    
Proceeds from Convertible Debt       $ 784,900,000            
Repayments of convertible debt     $ 676,800,000       595,425,000 $ 0 $ 0  
2027 Convertible Notes | Convertible Debt                    
Debt Instrument [Line Items]                    
Interest rate, stated percentage       0.25%            
Total principal amount       $ 805,000,000            
Lender fee       20,100,000            
Debt issuance costs       $ 400,000            
Conversion rate       0.0129576            
Debt, convertible, conversion price (usd per share) | $ / shares       $ 77.17            
2027 Convertible Notes | Convertible Debt | Period One                    
Debt Instrument [Line Items]                    
Convertible, threshold percentage of stock price trigger       130.00%            
Convertible, threshold trading days | trading_day       20            
Convertible, threshold consecutive trading days | trading_day       30            
Convertible, threshold consecutive business days | collaborator       5            
2027 Convertible Notes | Convertible Debt | Period Two                    
Debt Instrument [Line Items]                    
Convertible, threshold percentage of stock price trigger       98.00%            
Convertible, threshold consecutive trading days | trading_day       5            
2024 Convertible Notes | Convertible Debt                    
Debt Instrument [Line Items]                    
Interest rate, stated percentage           1.25%        
Total principal amount           $ 460,000,000.0        
Lender fee           12,700,000        
Proceeds from Convertible Debt           447,300,000        
Debt issuance costs           $ 300,000        
Conversion rate         0.0419208          
Debt, convertible, conversion price (usd per share) | $ / shares         $ 23.85          
Amount paid for conversion of debt instrument   $ 13,500,000                
Stock issued for conversion of debt instrument (in shares) | shares   288,886                
Credit Agreement | Revolving Credit Facility                    
Debt Instrument [Line Items]                    
Credit facility, maximum borrowing capacity $ 750,000,000                  
Debt issuance cost             7,300,000      
Credit Agreement | Revolving Credit Facility | Maximum                    
Debt Instrument [Line Items]                    
Commitment fee percentage 0.35%                  
Credit Agreement | Revolving Credit Facility | Minimum                    
Debt Instrument [Line Items]                    
Commitment fee percentage 0.15%                  
Credit Agreement | Revolving Credit Facility | Fed Funds Rate                    
Debt Instrument [Line Items]                    
Basis spread on variable rate 0.50%                  
Credit Agreement | Revolving Credit Facility | SOFR                    
Debt Instrument [Line Items]                    
Basis spread on variable rate 1.00%                  
Credit Agreement | Revolving Credit Facility | SOFR | Maximum                    
Debt Instrument [Line Items]                    
Basis spread on variable rate 2.25%                  
Credit Agreement | Revolving Credit Facility | SOFR | Maximum | Variable Rate Component Two                    
Debt Instrument [Line Items]                    
Basis spread on variable rate 2.25%                  
Credit Agreement | Revolving Credit Facility | SOFR | Minimum                    
Debt Instrument [Line Items]                    
Basis spread on variable rate 1.25%                  
Credit Agreement | Revolving Credit Facility | SOFR | Minimum | Variable Rate Component Two                    
Debt Instrument [Line Items]                    
Basis spread on variable rate 1.25%                  
Credit Agreement | Revolving Credit Facility | Base Rate | Maximum                    
Debt Instrument [Line Items]                    
Basis spread on variable rate 1.25%                  
Credit Agreement | Revolving Credit Facility | Base Rate | Minimum                    
Debt Instrument [Line Items]                    
Basis spread on variable rate 0.25%                  
Credit Agreement | Term Loan Facility                    
Debt Instrument [Line Items]                    
Unamortized debt issuance cost             $ 4,600,000      
v3.25.4
Long-Term Debt, Net - Carrying Amount of Convertible Notes (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Debt Instrument [Line Items]    
Total principal amount $ 2,179,574 $ 1,525,000
Total unamortized debt discount (36,944) (19,202)
Total carrying amount 2,142,630 1,505,798
Total fair value of outstanding notes 2,374,294 1,549,100
2027 Convertible Notes    
Debt Instrument [Line Items]    
Total principal amount 209,575 805,000
Total unamortized debt discount (1,058) (7,518)
Total carrying amount 208,517 797,482
Total fair value of outstanding notes 229,736 769,218
2028 Convertible Notes    
Debt Instrument [Line Items]    
Total principal amount 469,999 720,000
Total unamortized debt discount (5,561) (11,684)
Total carrying amount 464,438 708,316
Total fair value of outstanding notes 624,690 779,882
2031 Convertible Notes    
Debt Instrument [Line Items]    
Total principal amount 750,000 0
Total unamortized debt discount (15,108) 0
Total carrying amount 734,892 0
Total fair value of outstanding notes 755,655 0
2032 Convertible Notes    
Debt Instrument [Line Items]    
Total principal amount 750,000 0
Total unamortized debt discount (15,217) 0
Total carrying amount 734,783 0
Total fair value of outstanding notes $ 764,213 $ 0
v3.25.4
Long-Term Debt, Net - Components of Interest Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Debt Instrument [Line Items]      
Total amortization of debt discount $ 7,506 $ 7,350 $ 7,304
Convertible Debt      
Debt Instrument [Line Items]      
Total coupon interest 9,563 9,213 9,249
Total amortization of debt discount 6,695 6,550 6,506
Total interest expense 16,258 15,763 15,755
2024 Convertible Notes | Convertible Debt      
Debt Instrument [Line Items]      
Total coupon interest 0 0 36
Total amortization of debt discount 0 0 24
Total interest expense 0 0 60
2027 Convertible Notes | Convertible Debt      
Debt Instrument [Line Items]      
Total coupon interest 1,810 2,013 2,013
Total amortization of debt discount 3,029 3,432 3,409
Total interest expense $ 4,839 $ 5,445 $ 5,422
Effective interest rates 0.70% 0.70% 0.70%
2028 Convertible Notes      
Debt Instrument [Line Items]      
Effective interest rates   1.50% 1.50%
2028 Convertible Notes | Convertible Debt      
Debt Instrument [Line Items]      
Total coupon interest $ 6,860 $ 7,200 $ 7,200
Total amortization of debt discount 2,980 3,118 3,073
Total interest expense $ 9,840 $ 10,318 $ 10,273
Effective interest rates 1.50%    
2031 Convertible Notes      
Debt Instrument [Line Items]      
Effective interest rates   0.00% 0.00%
2031 Convertible Notes | Convertible Debt      
Debt Instrument [Line Items]      
Total amortization of debt discount $ 397 $ 0 $ 0
Total interest expense $ 397 $ 0 $ 0
Effective interest rates 0.40%    
2032 Convertible Notes      
Debt Instrument [Line Items]      
Effective interest rates   0.00% 0.00%
2032 Convertible Notes | Convertible Debt      
Debt Instrument [Line Items]      
Total coupon interest $ 893 $ 0 $ 0
Total amortization of debt discount 289 0 0
Total interest expense $ 1,182 $ 0 $ 0
Effective interest rates 1.20%    
v3.25.4
Long-Term Debt, Net - Future Maturities and Interest Payments (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Debt Disclosure [Abstract]    
2026 $ 11,841  
2027 221,099  
2028 481,261  
2029 6,563  
2030 6,563  
Thereafter 1,513,125  
Total minimum payments 2,240,452  
Less amount representing coupon interest (60,878)  
Gross balance of long-term debt 2,179,574  
Less unamortized debt discount (36,944) $ (19,202)
Carrying value of long-term debt 2,142,630 1,505,798
Less current portion of long-term debt 0  
Long-term debt, less current portion and unamortized debt discount $ 2,142,630 $ 1,505,798
v3.25.4
Stockholders' Equity - Narrative (Details) - USD ($)
$ / shares in Units, $ in Thousands
 1 Months Ended 2 Months Ended 7 Months Ended 12 Months Ended 31 Months Ended
Mar. 31, 2025
Dec. 31, 2024
Dec. 31, 2021
Feb. 28, 2021
Jun. 30, 2025
Dec. 31, 2025
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Jun. 30, 2024
May 31, 2025
Feb. 29, 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Capital return program, authorized amount     $ 750,000                  
Capital return program, purchase period (years)     3 years                  
Repurchase of common stock             $ 344,811 $ 251,709 $ 403,601      
2021 Share Repurchase Program                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Capital return program, purchase period (years)                   3 years    
Shares repurchased (in shares)                   19,100,000    
Weighted Average Price Paid Per Share (usd per share)                   $ 39.31    
2024 Capital Return Program                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Capital return program, authorized amount                       $ 750,000
ASR Agreement                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Shares repurchased (in shares) 4,700,000 4,200,000                    
ASR agreement, amount   $ 250,000                    
Accelerated share repurchases (payment)   $ 250,000           250,000        
Percentage of shares to be repurchased   80.00%                    
ASR , final price per share (in usd per share) $ 53.95                      
2024 Capital Return Program -Tranche Two                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Capital return program, authorized amount                     $ 250,000  
Shares repurchased (in shares)         4,800,000              
Weighted Average Price Paid Per Share (usd per share)         $ 52.09              
2024 Capital Return Program -Tranche Three                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Capital return program, authorized amount         $ 250,000              
Shares repurchased (in shares)           1,700,000            
Weighted Average Price Paid Per Share (usd per share)           $ 52.89            
Repurchase of common stock           $ 92,300            
Cliff Vesting, First Anniversary                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Award vesting rights, percentage             25.00%          
Monthly Vesting, after One Year                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Award vesting rights, percentage             2.08%          
RSUs                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Vested in period, fair value             $ 19,500 15,500 12,900      
Aggregate intrinsic value, vested             $ 26,800 16,500 18,300      
RSUs | Cliff Vesting, First Anniversary                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Award vesting rights, percentage             25.00%          
PSUs                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Aggregate intrinsic value, vested             $ 9,000 $ 1,600 $ 200      
Amended and Restated 2021 Stock Plan                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Shares authorized (in shares)           17,800,000 17,800,000          
Shares subject to outstanding awards (in shares)           6,900,000 6,900,000          
Shares reserved for future issuance (in shares)           8,100,000 8,100,000          
Amended and Restated 2021 Stock Plan | Stock options                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Options, exercise price, share price percent             100.00%          
Options, outstanding, initial contractual term (years)             10 years          
Options, granted weighted average grant date fair value (usd per share)             $ 29.52 $ 17.75 $ 17.72      
Options, exercised, intrinsic value             $ 46,300 $ 31,400 $ 13,700      
Proceeds from options exercised             $ 28,000 $ 32,700 $ 10,000      
2021 ESPP Plan                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Shares available for grant (in shares)           2,516,896 2,516,896          
2021 ESPP Plan | ESPP                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Purchase price percent       85.00%                
Share purchases, employee payroll deduction percent minimum       1.00%                
Share purchases, employee payroll deduction maximum percent       15.00%                
Employee purchase maximum amount       $ 25                
Purchase period       6 months                
Shares issued (in shares)             42,698          
v3.25.4
Stockholders' Equity - Share-based Compensation Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total share-based compensation expense $ 51,565 $ 43,385 $ 36,620
Stock options      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total share-based compensation expense 15,650 16,078 16,351
RSUs, PSUs and ESPP      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total share-based compensation expense 35,915 27,307 20,269
Research and development      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total share-based compensation expense 14,555 12,985 13,345
Selling, general and administrative      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total share-based compensation expense $ 37,010 $ 30,400 $ 23,275
v3.25.4
Stockholders' Equity - Total Unrecognized Estimated Compensation Cost (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
USD ($)
Stock options  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized Expense $ 31,516
Remaining Weighted-Average Recognition Period ( in years) 2 years 3 months
RSUs  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized Expense $ 56,647
Remaining Weighted-Average Recognition Period ( in years) 2 years 5 months 19 days
PSUs  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized Expense $ 23,426
Remaining Weighted-Average Recognition Period ( in years) 1 year 11 months 12 days
ESPP  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized Expense $ 270
Remaining Weighted-Average Recognition Period ( in years) 4 months 2 days
v3.25.4
Stockholders' Equity - Options (Details)
$ / shares in Units, $ in Millions
 12 Months Ended
Dec. 31, 2025
USD ($)
$ / shares
shares
Shares Underlying Stock Options  
Outstanding, Beginning (in shares) | shares 5,476,206
Grants (in shares) | shares 781,657
Exercised (in shares) | shares (1,122,386)
Canceled/forfeitures (in shares) | shares (276,344)
Outstanding, Ending (in shares) | shares 4,859,133
Vested and expected to vest, End of period (in shares) | shares 4,859,133
Exercisable, End of period (in shares) | shares 3,371,956
Weighted Average Exercise Price per Share  
Outstanding, Beginning (usd per share) | $ / shares $ 31.83
Granted (usd per share) | $ / shares 46.71
Exercised (usd per share) | $ / shares 24.91
Canceled/forfeited (usd per share) | $ / shares 44.62
Outstanding, Ending (usd per share) | $ / shares 35.10
Vested and expected to vest, Ending weighted average exercise price (usd per share) | $ / shares 35.10
Exercisable, Ending weighted average exercise price (usd per share) | $ / shares $ 30.87
Weighted Average Remaining Contractual Term (in years)  
Outstanding, End of period 5 years 10 months 24 days
Vested and expected to vest, End of period 5 years 10 months 24 days
Exercisable, End of period 4 years 9 months 25 days
Aggregate Intrinsic Value  
Outstanding, End of period | $ $ 70.5
Vested and expected to vest, End of period | $ 70.5
Exercisable, End of period | $ $ 58.5
v3.25.4
Stockholders' Equity - Valuation (Details)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Schedule of Share-based Compensation Arrangements Valuation Inputs [Line Items]      
Average expected term (in years) 4 years 9 months 18 days 5 years 4 years 9 months 18 days
Risk free interest rate, minimum 3.67% 3.65% 3.37%
Risk free interest rate, maximum 4.34% 4.70% 4.72%
Expected dividend yield 0.00% 0.00% 0.00%
Minimum      
Schedule of Share-based Compensation Arrangements Valuation Inputs [Line Items]      
Expected volatility 39.68% 40.01% 39.68%
Maximum      
Schedule of Share-based Compensation Arrangements Valuation Inputs [Line Items]      
Expected volatility 42.14% 42.13% 40.82%
v3.25.4
Stockholders' Equity - Restricted Stock Units (Details) - RSUs
$ / shares in Units, $ in Millions
 12 Months Ended
Dec. 31, 2025
USD ($)
$ / shares
shares
Number of Shares  
Outstanding, Beginning (in shares) | shares 1,398,776
Granted (in shares) | shares 772,787
Vested (in shares) | shares (459,420)
Forfeited (in shares) | shares (190,237)
Outstanding, Ending (in shares) | shares 1,521,906
Weighted Average Grant Date Fair Value  
Outstanding, Beginning (usd per share) | $ / shares $ 42.43
Granted (usd per share) | $ / shares 60.04
Vested (usd per share) | $ / shares 42.53
Forfeited (usd per share) | $ / shares 47.59
Outstanding, Ending (usd per share) | $ / shares $ 50.69
Weighted Average Remaining Contractual Term (in years) 1 year 3 months 29 days
Aggregate Intrinsic Value | $ $ 72.8
v3.25.4
Stockholders' Equity - Performance Stock Units (Details) - PSUs
 12 Months Ended
Dec. 31, 2025
$ / shares
shares
Number of Shares  
Outstanding, Beginning (in shares) | shares 482,403
Granted (in shares) | shares 442,868
Vested (in shares) | shares (154,032)
Forfeited (in shares) | shares (55,096)
Outstanding, Ending (in shares) | shares 716,143
Weighted Average Grant Date Fair Value  
Outstanding, Beginning (usd per share) | $ / shares $ 46.64
Granted (usd per share) | $ / shares 49.05
Vested (usd per share) | $ / shares 41.79
Forfeited (usd per share) | $ / shares 53.70
Outstanding, Ending (usd per share) | $ / shares $ 48.63
v3.25.4
Stockholders' Equity - Share Repurchase Programs (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2025
Sep. 30, 2025
Jun. 30, 2025
Mar. 31, 2025
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share Repurchase Program [Line Items]              
Total Cost         $ 344,811 $ 251,709 $ 403,601
Shares acquired, commission fees, cost per share (in dollars per share) $ 0.02 $ 0.02 $ 0.02        
Share Repurchase Program              
Share Repurchase Program [Line Items]              
Total Number of Shares Purchased (in shares) 0 725,514 5,818,338 452,453 6,996,305    
Weighted Average Price Paid Per Share (usd per share) $ 0 $ 53.59 $ 52.16 $ 53.95 $ 52.42    
Total Cost $ 0 $ 38,882 $ 303,490 $ 24,410 $ 366,782    
v3.25.4
Earnings per share - Basic and Diluted Income Per Common Share Computation (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Numerator      
Net income $ 316,889 $ 444,091 $ 281,594
Denominator      
Weighted average common shares outstanding for basic earnings per share (in shares) 119,840 126,827 131,927
Dilutive potential common stock outstanding      
Weighted average common shares outstanding for diluted net earnings per share (in shares) 123,904 129,424 134,197
Earnings per share      
Earnings per share - basic (usd per share) $ 2.64 $ 3.50 $ 2.13
Earnings per share - diluted (usd per share) $ 2.56 $ 3.43 $ 2.10
Convertible Notes      
Dilutive potential common stock outstanding      
Dilutive potential common stock outstanding (in shares) 1,018 74 58
Stock options      
Dilutive potential common stock outstanding      
Dilutive potential common stock outstanding (in shares) 2,077 1,827 1,824
RSUs, PSUs and ESPP      
Dilutive potential common stock outstanding      
Dilutive potential common stock outstanding (in shares) 969 696 388
v3.25.4
Earnings per share - Shares Excluded from the Calculation of Diluted Net Income Per Common Share (Details) - shares
shares in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Earnings Per Share [Abstract]      
Anti-dilutive securities (in shares) 24.6 26.1 27.8
v3.25.4
Commitments and Contingencies - Narrative (Details)
ft² in Thousands, $ in Millions
 12 Months Ended
Dec. 31, 2025
USD ($)
ft²
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Commitments and Contingencies Disclosure [Abstract]      
Leased space | ft² 196    
Operating lease, expense | $ $ 9.4 $ 8.6 $ 9.3
Weighted average remaining lease term (years) 4 years 1 month 28 days    
v3.25.4
Commitments and Contingencies - Annual Future Minimum Lease Payments (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]    
2026 $ 11,277  
2027 9,005  
2028 7,857  
2029 6,271  
2030 5,334  
Thereafter 747  
Total minimum lease payments 40,491  
Less imputed interest (5,922)  
Total $ 34,569 $ 30,705
v3.25.4
Income Taxes - Income Before Income Tax (Expense) Summarized by Region (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]      
United States $ 467,527 $ 557,852 $ 348,828
Foreign (652) (720) (499)
Income before income tax expense $ 466,875 $ 557,132 $ 348,329
v3.25.4
Income Taxes - Components of Deferred Tax Assets (Liabilities) (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Deferred tax assets    
Net operating loss carryforwards $ 60,853 $ 20,736
Capped call transactions 46,806 0
Research and development and credits 22,308 17,868
Share-based compensation 9,960 6,567
ASC 842 lease liability 7,927 7,126
Capitalized research expense 5,370 30,253
Inventory related reserves 19,691 19,867
Other, net 16,949 4,206
Total deferred tax assets 189,864 106,623
Valuation allowance for deferred tax assets (878) (2,363)
Deferred tax assets, net of valuation allowance 188,986 104,260
Deferred tax liabilities    
Non-deductible book amortization (217,883) (89,247)
ASC 842 right of use asset (8,589) (7,882)
Other, net (5,438) (3,276)
Total deferred tax liabilities (231,910) (100,405)
Net deferred tax (liabilities) asset $ (42,924)  
Net deferred tax (liabilities) asset   $ 3,855
v3.25.4
Income Taxes - Narrative (Details) - USD ($)
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Tax Credit Carryforward [Line Items]        
Valuation allowance for deferred tax assets $ 878,000 $ 2,363,000    
Unrecognized tax benefits 26,865,000 24,519,000 $ 21,918,000 $ 19,482,000
Unrecognized tax benefits that would impact effective tax rate 25,700,000      
Undistributed foreign earnings 0 $ 0    
United States        
Tax Credit Carryforward [Line Items]        
Operating loss carryforwards 145,600,000      
United States | Research Tax Credit Carryforward        
Tax Credit Carryforward [Line Items]        
Tax credit carryforwards 4,900,000      
California        
Tax Credit Carryforward [Line Items]        
Operating loss carryforwards 236,500,000      
California | Research Tax Credit Carryforward        
Tax Credit Carryforward [Line Items]        
Tax credit carryforwards 25,100,000      
Massachusetts        
Tax Credit Carryforward [Line Items]        
Operating loss carryforwards 139,200,000      
Other        
Tax Credit Carryforward [Line Items]        
Operating loss carryforwards 60,600,000      
Other | Research Tax Credit Carryforward        
Tax Credit Carryforward [Line Items]        
Tax credit carryforwards $ 2,500,000      
v3.25.4
Income Taxes - Income Tax Expense (Benefit) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]      
Current - federal $ 137,708 $ 98,139 $ 24,963
Current - state 16,741 13,762 5,717
Deferred - federal (4,769) 1,815 34,037
Deferred - state 306 (675) 2,018
Total income tax expense $ 149,986 $ 113,041 $ 66,735
v3.25.4
Income Taxes - Income Tax Reconciliation Provision for Income Taxes to Federal Income Tax Rate (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dollar      
U.S. federal statutory tax expense and rate $ 98,044 $ 116,998 $ 73,254
State and local income taxes, net of federal income tax effect 13,252 10,963 4,134
Foreign tax effects 137 151 105
Foreign-derived intangible income (22,921) (19,644) (11,989)
Research and development tax credits (1,840) (1,457) (4,394)
Changes in valuation allowances (1,498) 96
Non-deductible acquired IPR&D 59,826 0 0
Other 5,458 1,942 2,605
Changes in unrecognized tax benefits 655 2,610 455
Other adjustments (1,127) 1,382 2,565
Total income tax expense $ 149,986 $ 113,041 $ 66,735
Percent      
U.S. federal statutory tax expense and rate 21.00% 21.00% 21.00%
State and local income taxes, net of federal income tax effect 2.84% 1.97% 1.19%
Foreign tax effects 0.03% 0.03% 0.03%
Nontaxable or non-deductible items (4.91%) (3.53%) (3.44%)
Research and development tax credits (0.39%) (0.27%) (1.26%)
Changes in valuation allowances (0.32%) 0.02%
Non-deductible acquired IPR&D 12.81% 0.00% 0.00%
Other 1.17% 0.35% 0.75%
Changes in unrecognized tax benefits 0.14% 0.47% 0.13%
Other adjustments (0.24%) 0.25% 0.73%
Income tax expense and effective income tax rate 32.13% 20.29% 19.13%
v3.25.4
Income Taxes - Unrecognized Tax Benefit (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Unrecognized Tax Benefits [Roll Forward]      
Gross unrecognized tax benefits, beginning of period $ 24,519 $ 21,918 $ 19,482
Increases in tax positions for current year 702 612 791
Increases in tax positions for prior years 244 2,181 1,645
Increases in tax positions related to business acquisition 1,418 0 0
Decreases in tax positions for prior years and lapse in statute of limitations (18) (192) 0
Gross unrecognized tax benefits, end of period $ 26,865 $ 24,519 $ 21,918
v3.25.4
Income Taxes - Schedule of Cash Flow, Supplemental Disclosures (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Effective Income Tax Rate Reconciliation [Line Items]      
Federal $ 119,100 $ 65,000 $ 22,621
Total 134,641 80,618 31,756
PENNSYLVANIA      
Effective Income Tax Rate Reconciliation [Line Items]      
State 0 0 3,320
All other states      
Effective Income Tax Rate Reconciliation [Line Items]      
State $ 15,541 $ 15,618 $ 5,815
v3.25.4
Employee Savings Plan - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Retirement Benefits [Abstract]      
Employer contribution amount $ 3.6 $ 3.3 $ 3.3
v3.25.4
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Accounts receivable allowance, beginning balance $ 8,737 $ 6,747 $ 1,914
Acquired 0 0 0
Additions 64,702 54,090 49,596
Deductions (63,833) (52,100) (44,763)
Accounts receivable allowance, ending balance $ 9,606 $ 8,737 $ 6,747