Consolidated Balance Sheets (Parenthetical) - $ / shares |
Dec. 31, 2025 |
Dec. 31, 2024 |
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| Preferred Stock | ||
| Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
| Preferred stock, shares authorized (in shares) | 75,000,000 | 75,000,000 |
| Preferred stock, shares issued (in shares) | 0 | 0 |
| Preferred stock, shares outstanding (in shares) | 0 | 0 |
| Common Stock | ||
| Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
| Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
| Common stock, shares issued (in shares) | 163,058,316 | 160,205,899 |
| Common stock, shares outstanding (in shares) | 163,058,316 | 160,205,899 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
12 Months Ended | |
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Dec. 31, 2025 |
Dec. 31, 2024 |
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| Net income | ||
| Net income | $ 24,017 | $ 880 |
| Other comprehensive income (loss), net of tax: | ||
| Currency translation adjustment | (2,754) | 2,901 |
| Defined benefit pension plan | 771 | 1,053 |
| Total other comprehensive income (loss), net of tax | (1,983) | 3,954 |
| Comprehensive income | $ 22,034 | $ 4,834 |
Nature of Business |
12 Months Ended |
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Dec. 31, 2025 | |
| Disclosure Text Block | |
| Nature of Business | Ironwood Pharmaceuticals, Inc. Notes to Consolidated Financial Statements 1. Nature of Business Ironwood Pharmaceuticals, Inc. (“Ironwood” or the “Company”) is a biotechnology company developing and commercializing life-changing therapies for people living with gastrointestinal (“GI”) and rare diseases. The Company is focused on the development and commercialization of innovative product opportunities in areas of significant unmet need, leveraging its demonstrated expertise and capabilities in GI and rare diseases. LINZESS® (linaclotide), the Company’s commercial product, is the first product approved by the United States Food and Drug Administration (the “U.S. FDA”) in a class of GI medicines called guanylate cyclase type C agonists (“GC-C agonists”) and is indicated, in the U.S., for the treatment of irritable bowel syndrome with constipation (“IBS-C”) in adults and pediatric patients 7 years of age and older, chronic idiopathic constipation (“CIC”) in adults, and functional constipation (“FC”) in pediatric patients ages 6-17 years-old. LINZESS is also available for the treatment of adults with IBS-C or CIC in Mexico, adults with IBS-C or chronic constipation in Japan, and adults with IBS-C in China. Linaclotide is available under the trademarked name CONSTELLA® for the treatment of adults with IBS-C or CIC and pediatric patients ages 6-17 years old with FC in Canada, and to adults with IBS-C in certain European countries. The Company has strategic partnerships with leading pharmaceutical companies to support the development and commercialization of linaclotide throughout the world. The Company and its partner, AbbVie Inc. (together with its affiliates, “AbbVie”), began commercializing LINZESS in the U.S. in December 2012. Under the Company’s collaboration for North America with AbbVie, total net sales of LINZESS in the U.S., as recorded by AbbVie, are reduced by commercial costs incurred by each party, and the resulting amount is shared equally between the Company and AbbVie. Additionally, development costs are shared equally between the Company and AbbVie. Outside of the U.S., the Company earns royalties as a percentage of net sales of products containing linaclotide as an active ingredient by the Company’s collaboration partners. AbbVie has an exclusive license from the Company to develop and commercialize linaclotide in all countries other than China (including Hong Kong and Macau), Japan and the countries and territories of North America (the “AbbVie License Territory”). In addition, AbbVie has exclusive rights to commercialize linaclotide in Canada as CONSTELLA and in Mexico as LINZESS. Astellas Pharma Inc. (“Astellas”), the Company’s partner in Japan, has an exclusive license to develop, manufacture, and commercialize linaclotide in Japan. AstraZeneca AB (together with its affiliates) (“AstraZeneca”), the Company’s partner in China, has the exclusive right to develop, manufacture, and commercialize products containing linaclotide in China (including Hong Kong and Macau) (the “AstraZeneca License Territory”). Through the acquisition of VectivBio Holding AG (“VectivBio”) in June 2023 (the “VectivBio Acquisition”), the Company is advancing apraglutide, a next-generation, synthetic peptide long-acting analog of glucagon-like peptide-2, developed for short bowel syndrome (“SBS”) patients who are dependent on parenteral support (“PS”). The Company was incorporated in Delaware on January 5, 1998 as Microbia, Inc. On April 7, 2008, the Company changed its name to Ironwood Pharmaceuticals, Inc. To date, the Company has dedicated a majority of its activities to the research, development and commercialization of linaclotide, as well as to other research and development programs, including apraglutide.
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Summary of Significant Accounting Policies |
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Dec. 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Principles of Consolidation The accompanying consolidated financial statements as of December 31, 2025 include the accounts of Ironwood, its wholly-owned subsidiaries, Ironwood Pharmaceuticals Securities Corporation, Ironwood Pharmaceuticals GmbH, VectivBio AG, and GlyPharma Therapeutic Inc. (“GlyPharma”). All intercompany transactions and balances are eliminated in consolidation. Segment Information Operating segments are components of an enterprise for which separate financial information is available and is evaluated regularly by the Company’s chief operating decision-maker in deciding how to allocate resources and in assessing performance. The Company currently operates in one reportable business segment – human therapeutics. The Company’s reportable business segment is more fully described in Note 16, Segment Reporting, to these consolidated financial statements. Use of Estimates The preparation of consolidated financial statements in accordance with U.S. generally accepted accounting principles requires the Company’s management to make estimates and judgments that may affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the amounts of revenues and expenses during the reported periods. On an ongoing basis, the Company’s management evaluates its estimates, judgments and methodologies. Estimates and assumptions in the consolidated financial statements include those related to revenue recognition; accounts receivable; useful lives of long-lived assets; impairment of long-lived assets, including goodwill; valuation procedures for right-of-use assets and operating lease liabilities; income taxes, including uncertain tax positions and the valuation allowance for deferred tax assets; research and development expenses; contingencies; defined benefit pension liabilities and certain investment fund assets; and share-based compensation. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results may differ materially from these estimates under different assumptions or conditions. Changes in estimates are reflected in reported results in the period in which they become known. Cash and Cash Equivalents The Company considers all highly liquid investment instruments with a remaining maturity when purchased of three months or less to be cash equivalents. Investments qualifying as cash equivalents primarily consist of money market funds, U.S. Treasury securities, and commercial paper. The carrying amount of cash equivalents approximates fair value. The amount of cash equivalents included in cash and cash equivalents was $184.3 million and $55.0 million as of December 31, 2025 and 2024, respectively. Concentrations of Suppliers The Company relies on its collaboration partners and their suppliers to manufacture linaclotide API, linaclotide finished drug product, and finished goods. If any of the Company’s collaboration partners and their suppliers were to limit or terminate production or otherwise fail to meet the quality or delivery requirements needed to satisfy the supply commitments, the process of locating and qualifying alternate sources could require up to several months, during which time production could be delayed. Such delays could have a material adverse effect on the Company’s business, financial position and results of operations. Accounts Receivable The Company makes judgments as to its ability to collect outstanding receivables and provides an allowance for credit losses when collection becomes doubtful. Provisions are made based upon a specific review of all significant outstanding invoices and the overall quality and age of those invoices not specifically reviewed. The Company’s receivables relate primarily to amounts reimbursed under its collaboration, license, and other agreements. The Company believes that credit risks associated with these partners are not significant. The Company reviews the need for an allowance for credit losses for its receivables based on various factors including payment history and historical bad debt experience. The Company had no allowance for credit losses as of December 31, 2025 or 2024. Concentrations of Credit Risk Financial instruments that subject the Company to credit risk primarily consist of cash and cash equivalents, restricted cash, and accounts receivable. The Company maintains its cash and cash equivalent balances with high-quality financial institutions and the Company believes that such funds are subject to minimal credit risk. The Company has adopted an investment policy which limits the amounts the Company may invest in certain types of investments, and requires all investments held by the Company to be at least A- rated, thereby reducing credit risk exposure. Accounts receivable primarily consists of amounts due under the linaclotide collaboration agreement with AbbVie for North America (Note 4). The Company does not obtain collateral for its accounts receivable. The percentages of revenue recognized from significant collaborative partners of the Company in the years ended December 31, 2025 and 2024 and the account receivable balances, net of any payables due, as of December 31, 2025 and 2024 are included in the following table:
Property and Equipment Property and equipment, including leasehold improvements, are recorded at cost, and are depreciated when placed into service using the straight-line method based on their estimated useful lives as follows:
Included in property and equipment are certain costs of software obtained for internal use. Costs incurred during the preliminary project stage are expensed as incurred, while costs incurred during the application development stage are capitalized and amortized over the estimated useful life of the software. The Company also capitalizes costs related to specific upgrades and enhancements when it is probable the expenditures will result in additional functionality. Maintenance and training costs related to software obtained for internal use are expensed as incurred. Leasehold improvements are amortized over the shorter of the estimated useful life of the asset or the lease term. Costs for capital assets not yet placed into service have been capitalized as construction in process, and will be depreciated in accordance with the above guidelines once placed into service. Maintenance and repair costs are expensed as incurred. Intangible Assets Intangible assets are comprised of the assembled workforce acquired in the VectivBio Acquisition and are amortized on a straight-line basis over an estimated useful life of five years. Impairment of Long-Lived Assets The Company regularly reviews the carrying amount of its long-lived assets to determine whether indicators of impairment may exist, which warrant adjustments to carrying values or estimated useful lives. If indications of impairment exist, projected future undiscounted cash flows associated with the asset are compared to the carrying amount to determine whether the asset’s value is recoverable. If the carrying value of the asset exceeds such projected undiscounted cash flows, the asset will be written down to its estimated fair value. Income Taxes The Company provides for income taxes under the asset and liability method. Deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates in effect when the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to reflect the uncertainty associated with their ultimate realization. The Company accounts for uncertain tax positions recognized in the consolidated financial statements in accordance with the provisions of Accounting Standards Codification (“ASC”) Topic 740, Income Taxes, by prescribing a more-likely-than-not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. When uncertain tax positions exist, the Company recognizes the tax benefit of tax positions to the extent that the benefit will more likely than not be realized. The determination as to whether the tax benefit will more likely than not be realized is based upon the technical merits of the tax position as well as consideration of the available facts and circumstances. The Company evaluates uncertain tax positions on a quarterly basis and adjusts the level of the liability to reflect any subsequent changes in the relevant facts surrounding the uncertain positions. Any changes to these estimates, based on the actual results obtained and/or a change in assumptions, could impact the Company’s income tax provision in future periods. Interest and penalty charges, if any, related to unrecognized tax benefits are classified as income tax expense in the Company’s consolidated statements of income. Financing Costs Financing costs include costs directly attributable to the Company’s offerings of its equity securities and its debt financings. Costs attributable to equity offerings are charged as a reduction to stockholders’ equity against the proceeds of the offering once the offering is completed. Costs attributable to debt financings are deferred and amortized to interest expense over the term of the debt using the effective interest method. In accordance with ASC Topic 835, Interest, the Company presents on its balance sheet unamortized debt issuance costs related to convertible notes as a direct deduction from the associated debt liability and unamortized debt issuance costs related to revolving credit arrangements as other assets. Leases The Company’s lease portfolio for the year ended December 31, 2025 included: office leases for its current headquarters location and other locations, vehicle leases, and leases for computer and office equipment. The Company determines if an arrangement is a lease at the inception of the contract and determines the classification of its leases at lease commencement. The asset component of the Company’s operating leases is recorded as operating lease right-of-use assets, and the liability component is recorded as current portion of operating lease liabilities and operating lease liabilities, net of current portion in the Company’s consolidated balance sheets. As of December 31, 2025, the Company did not record any finance leases. Right-of-use assets and operating lease liabilities are recognized based on the present value of lease payments over the lease term at the lease commencement date. The lease term used to measure the right-of-use asset and operating lease liability may include options to extend the lease when it is reasonably certain that the Company will exercise the option. The Company accounts for lease components and non-lease components together as a single lease component for the asset class of right-of-use real estate assets. The Company uses an incremental borrowing rate based on the information available at lease commencement in determining the present value of lease payments, if an implicit rate of return is not readily determinable. Operating lease right-of-use assets are adjusted for prepaid rent, initial direct costs, and lease incentives. Right-of-use assets and operating lease liabilities are remeasured upon reassessment events and modifications to leases using the present value of remaining lease payments and estimated incremental borrowing rate at the time of remeasurement, as applicable. Operating lease cost is recognized on a straight-line basis over the lease term, and includes amounts related to short-term leases. The Company has elected to not recognize lease terms with a term of twelve months or less on its balance sheet for all classes of underlying asset types. The Company recognizes variable lease payments as operating expenses in the period in which the obligation for those payments is incurred. Variable lease payments primarily include common area maintenance, utilities, real estate taxes, insurance, and other operating costs that are passed on from the lessor in proportion to the space leased by the Company. Derivative Assets and Liabilities In August 2019, the Company issued 0.75% Convertible Senior Notes due 2024 (the “2024 Convertible Notes”) and 1.50% Convertible Senior Notes due 2026 (the “2026 Convertible Notes”). In connection with the issuance of the 2024 Convertible Notes and the 2026 Convertible Notes, the Company entered into the Capped Calls (as defined in Note 9, Debt, below). The Capped Calls cover the same number of shares of Class A Common Stock that initially underlie the 2024 Convertible Notes and the 2026 Convertible Notes (subject to anti-dilution and certain other adjustments). These instruments meet the conditions outlined in ASC Topic 815, Derivatives and Hedging (“ASC 815”) to be classified in stockholders’ equity (deficit) and are not subsequently remeasured as long as the conditions for equity classification continue to be met. The Capped Calls related to the 2024 Convertible Notes expired unexercised upon maturity of the 2024 Convertible Notes in June 2024. Revenue Recognition The Company’s revenues are generated primarily through collaborative arrangements and license agreements related to the research and development and commercialization of linaclotide. The terms of the collaborative research and development, license, co-promotion and other agreements contain multiple performance obligations which may include (i) licenses, (ii) research and development activities, including participation on joint steering committees, (iii) the manufacture of finished drug product, API, or development materials for a partner, which are reimbursed at a contractually determined rate, and (iv) education or co-promotion activities by the Company’s clinical sales specialists. Non-refundable payments to the Company under these agreements may include (i) up-front license fees, (ii) payments for research and development activities, (iii) payments for the manufacture of finished drug product, API, or development materials, (iv) payments based upon the achievement of certain milestones, (v) payments for sales detailing, promotional support services and medical education initiatives, and (vi) royalties on product sales. The Company receives its share of the net profits or bears its share of the net losses from the sale of linaclotide in the U.S. through its collaboration agreement with AbbVie for North America. The Company has adopted a policy to recognize revenue net of tax withholdings, as applicable. Collaboration, License, and Other Commercial Agreements Upon licensing intellectual property to a customer, the Company determines if the license is distinct from the other performance obligations identified in the arrangement. The Company recognizes revenues from the transaction price, including non-refundable, up-front fees allocated to the license when the license is transferred to the customer if the license has distinct benefit to the customer. For licenses that are combined with other promises, the Company assesses the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time. For performance obligations that are satisfied over time, the Company evaluates the measure of progress each reporting period and, if necessary, adjusts the measure of performance and related revenue recognition. The Company’s license and collaboration agreements include milestone payments, such as development and other milestones. The Company evaluates whether the milestones are considered probable of being reached and estimates the amount to be included in the transaction price using the most likely amount method at the inception of the agreement. If it is probable that a significant revenue reversal would not occur, the associated milestone value is included in the transaction price. Milestone payments that are not within the control of the Company, such as regulatory approvals, are not considered probable of being achieved until those approvals are received. The transaction price is then allocated to each performance obligation on a relative standalone selling price basis, for which the Company recognizes revenue as or when the performance obligations under the contract are satisfied. The Company re-evaluates the probability of achievement of such milestones and any related constraint at each reporting period, and any adjustments are recorded on a cumulative catch-up basis. Agreements that include the supply of active pharmaceutical ingredient (“API”) or drug product for either clinical development or commercial supply at the customer’s discretion are generally considered as options. The Company assesses if these options provide a material right to its partner, and if so, they are accounted for as separate performance obligations. If the Company is entitled to additional payments when the customer exercises these options, any additional payments are recorded as revenue when the customer obtains control of the goods, which is typically upon shipment for sales of API and finished drug product. For agreements that include sales-based royalties, including milestone payments based on the level of sales, and the license is deemed to be the predominant item to which the royalties relate, the Company recognizes revenue when the related sales occur in accordance with the sales-based royalty exception. Net Profit or Net Loss Sharing In accordance with ASC Topic 808, Collaborative Arrangements (“ASC 808”), the Company considers the nature and contractual terms of the arrangement and the nature of the Company’s business operations to determine the classification of payments under the Company’s collaboration agreements. While ASC 808 provides guidance on classification, the standard is silent on matters of separation, initial measurement, and recognition. Therefore, the Company applies the separation, initial measurement, and recognition principles of ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”), as applicable. The Company’s collaborative arrangements revenues generated from sales of LINZESS in the U.S. are considered akin to sales-based royalties. In accordance with the sales-based royalty exception, the Company recognizes its share of the pre-tax commercial net profit or net loss generated from the sales of LINZESS in the U.S. in the period the product sales are earned, as reported by AbbVie, and related cost of goods sold and selling, general and administrative expenses as incurred by the Company and AbbVie. These amounts are partially determined based on amounts provided by AbbVie and involve the use of estimates and judgments, such as product sales allowances and accruals related to prompt payment discounts, chargebacks, governmental and contractual rebates, wholesaler fees, product returns, and co-payment assistance costs, which could be adjusted based on actual results in the future. The Company is highly dependent on AbbVie for timely and accurate information regarding net revenues from sales of LINZESS in the U.S. in accordance with both ASC 808 and ASC 606, and the related costs, in order to accurately report its results of operations. If the Company does not receive timely and accurate information or incorrectly estimates activity levels associated with the collaboration at a given point in time, the Company could be required to record adjustments in future periods. In accordance with ASC 606-10-55, Principal Agent Considerations, the Company records revenue transactions as net product revenue in its consolidated statements of income if it is deemed the principal in the transaction, which includes being the primary obligor, retaining inventory risk, and control over pricing. Given that the Company is not the primary obligor and does not have the inventory risks in the collaboration agreement with AbbVie for North America, it records its share of the net profits or net losses from the sales of LINZESS in the U.S. on a net basis and presents the settlement payments to and from AbbVie as collaboration expense or collaborative arrangements revenue, as applicable. The Company and AbbVie settle the cost sharing quarterly such that the Company’s statements of income reflect 50% of the pre-tax net profit or loss generated from sales of LINZESS in the U.S. Other The Company’s deferred revenue balance consists of advance billings and payments received from collaboration partners in excess of revenue recognized. Research and Development Costs The Company generally expenses research and development costs to operations as incurred. The Company capitalizes nonrefundable advance payments made by the Company for research and development activities and defers expense recognition until the related goods are received or the related services are performed. Research and development expenses are comprised of costs incurred in performing research and development activities, including salary, benefits, share-based compensation, and other employee-related expenses; laboratory supplies and other direct expenses; facilities expenses; overhead expenses; third-party contractual costs relating to nonclinical studies and clinical trial activities and related contract manufacturing expenses, development of manufacturing processes and regulatory registration of third-party manufacturing facilities; licensing fees for the Company’s product candidates; and other outside expenses. The Company has certain collaboration agreements pursuant to which it shares or has shared research and development expenses related to linaclotide. The Company records expenses incurred under such linaclotide collaboration arrangements as research and development expense. Under the Company’s collaboration agreement with AbbVie for North America, the Company is reimbursed for certain research and development expenses and nets these reimbursements against its research and development expenses as incurred. Research and development expense includes up-front payment, non-contingent payment, and milestone payment obligations under certain collaboration arrangements. Expense is recognized when the obligation is determined to be probable. Restructuring Expenses Restructuring expenses are comprised primarily of costs associated with exit and disposal activities in accordance with ASC Topic 420, Exit or Disposal Cost Obligations, and ASC Topic 712, Compensation – Nonretirement Postemployment Benefits, and include one-time termination benefits and contract-related costs. Such costs are based on estimates of fair value in the period liabilities are incurred. The Company evaluates and adjusts these costs for changes in circumstances as additional information becomes available. Selling, General and Administrative Expenses The Company expenses selling, general and administrative costs to operations as incurred. Selling, general and administrative expenses consist primarily of compensation, benefits and other employee-related expenses for personnel in the Company’s administrative, finance, legal, information technology, business development, commercial, sales, marketing, communications and human resource functions. Other costs include legal costs of pursuing patent protection of the Company’s intellectual property, general and administrative related facility costs, insurance costs and professional fees for accounting, tax, consulting, legal and other services. The Company includes AbbVie’s selling, general and administrative cost-sharing payments in the calculation of the net profits and net losses from the sale of LINZESS in the U.S. and presents the net payment to or from AbbVie as collaboration expense or collaborative arrangements revenue, respectively. Defined Benefit Pension Obligations Pension benefits earned during the year, as well as interest on projected benefit obligations (“PBO”), are accrued. Service costs are recognized within research and development expenses or selling, general and administrative expenses, depending on the function of the plan participant. All other components of net period costs are recognized within other income (expense), net. Prior service costs and credits resulting from changes in plan benefits are recognized in other comprehensive income (loss) in the period in which they occur and then amortized to net periodic benefit costs generally over the average remaining service period of the active participants. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized in other comprehensive income (loss) in the period in which they occur. To the extent such gains and losses exceed 10% of the PBO or the estimated fair value of plan assets, the excess is amortized into net periodic benefit costs, generally over the average remaining service period of the active participants. The Company recognizes a pension plan’s funded status as either an asset or liability in its consolidated balance sheets. Share-Based Compensation Expense The Company grants awards under its share-based compensation programs, including stock awards, restricted stock awards (“RSAs”), restricted stock units (“RSUs”) (including both time-based and performance-based RSUs), stock options, and shares issued under the Company’s employee stock purchase plan (“ESPP”). Share-based compensation is recognized as expense in the consolidated statements of income based on the grant date fair value over the requisite service period, net of estimated forfeitures. The Company estimates forfeitures over the requisite service period using historical forfeiture activity and records share-based compensation expense only for those awards that are expected to vest. The Company estimates the fair value of stock options using the Black-Scholes option-pricing model, which requires the use of subjective assumptions including volatility and expected term, among others. The fair value of stock awards, RSAs, and RSUs is based on the market value of the Company’s Class A Common Stock on the date of grant, with the exception of performance-based RSUs with market conditions, which are measured using the Monte Carlo simulation method on the date of grant (Note 12). Discounted stock purchases under the Company’s ESPP are valued on the first date of the offering period using the Black-Scholes option-pricing model to compute the fair value of the lookback provision plus the purchase discount. For awards that vest based on service conditions and market conditions, the Company uses a straight-line method to recognize compensation expense over the respective service period. For awards that contain performance conditions, the Company determines the appropriate amount to expense at each reporting date based on the anticipated achievement of performance targets, which requires judgement, including forecasting the achievement of future specified targets. At the date performance conditions are determined to be probable of achievement, the Company records a cumulative expense catch-up, with remaining expense amortized over the remaining service period. Throughout the performance period, the Company re-assesses the estimated performance and updates the number of performance-based awards that it believes will ultimately vest. Discounted stock purchases under the Company’s ESPP are recognized over the offering period. Compensation expense related to modified awards is measured based on the fair value for the awards as of the modification date. Any incremental compensation expense arising from the excess of the fair value of the awards on the modification date compared to the fair value of the awards immediately before the modification date is recognized at the modification date or ratably over the requisite remaining service period, as appropriate. While the assumptions used to calculate and account for share-based compensation awards represent management’s best estimates, these estimates involve inherent uncertainties and the application of management’s judgment. As a result, if revisions are made to the Company’s underlying assumptions and estimates, the Company’s share-based compensation expense could vary significantly from period to period. Patent Costs Legal and other fees related to patents are charged to selling, general and administrative expenses as incurred. Net Income (Loss) Per Share Basic net income (loss) per common share is computed by dividing the net income by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share reflects the potential dilution beyond common shares for basic net income (loss) per share that could occur if securities or other contracts to issue common shares were exercised, converted into common shares, or resulted in the issuance of common shares that would have shared in the Company’s earnings. Foreign Currency Translation For subsidiaries with a different functional currency than the U.S. dollar, assets and liabilities are translated at the exchange rates as of the balance sheet date and income and expense items are translated at the average exchange rates for the reporting period. Adjustments resulting from the translation of the financial statements of foreign subsidiaries are recorded in accumulated comprehensive income (loss), a separate component of stockholders’ deficit. Comprehensive Income (Loss) Comprehensive income (loss) is comprised of net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) includes foreign currency translation adjustments and certain changes in the fair value of pension plan assets and projected benefit obligation attributed to the Company’s defined benefit pension plans. Accumulated other comprehensive income (loss) is presented as a separate component of stockholders’ deficit. Subsequent Events The Company considers events or transactions that have occurred after the balance sheet date of December 31, 2025, but prior to the filing of the financial statements with the Securities and Exchange Commission (“SEC”) to provide additional evidence relative to certain estimates or to identify matters that require additional recognition or disclosure. Subsequent events have been evaluated through the filing of the financial statements accompanying this Annual Report on Form 10-K. New Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (the “FASB”) or other standard setting bodies that are adopted by the Company as of the specified effective date. Except as set forth below, the Company did not adopt any new accounting pronouncements during the year ended December 31, 2025 that had a material effect on its consolidated financial statements. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). The guidance in ASU 2023-09 improves the transparency of annual income tax disclosures by requiring greater disaggregation of information in the rate reconciliation and income taxes paid disaggregated by jurisdiction. The standard is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. Upon adoption, ASU 2023-09 may be applied prospectively or retrospectively. The Company adopted ASU 2023-09 during the year ended December 31, 2025, on a basis. The expanded disclosures are included in the consolidated financial statements (Note 13). In November 2024, the FASB issued ASU No. 2024-03, Disaggregation of Income Statement Expenses (“ASU 2024-03”). The guidance in ASU 2024-03 requires new financial statement disclosures in tabular format, disaggregating information about prescribed categories underlying any relevant income statement expense captions. The standard is effective for fiscal years beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. Upon adoption, ASU 2024-03 may be applied prospectively or retrospectively. The Company is currently evaluating the impact that the adoption of ASU 2024-03 may have on its disclosures in its consolidated financial statements. In November 2024, the FASB issued ASU No. 2024-04, Debt—Debt with Conversion and Other Options (Subtopic 470-20) (“ASU 2024-04”). The guidance in ASU 2024-04 clarifies the requirements related to accounting for the settlement of a debt instrument as an induced conversion. The standard is effective for fiscal years beginning after December 15, 2025, and interim periods within fiscal years beginning after December 15, 2025, with early adoption permitted as of the beginning of a reporting period if the entity has also adopted ASU 2020-06 for that period. The Company is currently evaluating the impact that the adoption of ASU 2024-04 may have on its disclosures in its consolidated financial statements. In July 2025, the FASB issued ASU No. 2025-05, Measurement of Credit Losses for Accounts Receivable and Contract Assets (“ASU 2025-05”). The guidance in ASU 2025-05 amends ASC Topic 326, Financial Instruments—Credit Losses, to provide a practical expedient to simplify estimating expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under ASC Topic 606, Revenue from Contracts with Customers. The practical expedient, if elected, allows entities to assume that current conditions as of the balance sheet date do not change for the remaining life of the asset. The standard is effective for annual fiscal years beginning after December 15, 2025 and interim periods within fiscal years beginning after December 15, 2025, with early adoption permitted. Entities that elect the practical expedient should apply the guidance prospectively. The Company is currently evaluating the impact that the adoption of ASU 2025-05 may have on its consolidated financial statements. In September 2025, the FASB issued ASU No. 2025-06, Targeted Improvements to the Accounting for Internal-Use Software (“ASU 2025-06”). The guidance in ASU 2025-06 amends certain aspects of the accounting for and disclosure of software costs under ASC Subtopic 350-40, Internal Use Software. The standard is effective for fiscal years beginning after December 15, 2027 and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. Entities may elect to apply the guidance prospectively, retrospectively, or through a modified prospective transition method. The Company is currently evaluating the impact that the adoption of ASU 2025-06 may have on its consolidated financial statements. In September 2025, the FASB issued ASU No. 2025-07, Derivatives Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue Contract (“ASU 2025-07”). The guidance in ASU 2025-07 expands the scope exceptions within ASC Topic 815, Derivatives and Hedging, to include certain nonexchange-traded contracts with underlyings that are based on operations or activities specific to one of the parties to the contract, including research and development funding arrangements. The standard is effective for annual fiscal years beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2026, with early adoption permitted. Entities should apply the amendments either prospectively for contracts entered into on or after the date of adoption or on a modified retrospective basis through a cumulative-effect adjustment to the opening balance of retained earnings for contracts that exist as of the beginning of the annual reporting period of adoption. The Company is currently evaluating the impact that the adoption of ASU 2025-07 may have on its consolidated financial statements. In December 2025, the FASB issued ASU No. 2025-11, Narrow-Scope Improvements (“ASU 2025-11”). The guidance in ASU 2025-11 amends ASC Topic 270, Interim Reporting, to provide clarity on the current interim reporting requirements as well as requires entities to disclose events since the end of the last annual reporting period that have a material impact on the entity through the addition of the disclosure principle. The standard is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted. Upon adoption, ASU 2025-11 may be applied prospectively or retrospectively. The Company is currently evaluating the impact that the adoption of ASU 2025-11 may have on its consolidated financial statements. In December 2025, the FASB issued ASU No. 2025-12, Codification Improvements (“ASU 2025-12”). The guidance in ASU 2025-12 provides incremental improvements to accounting standards for a broad range of topics. The standard is effective for annual fiscal years beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2026, with early adoption permitted. Upon adoption, ASU 2025-12 may be applied prospectively or retrospectively on an issue-by-issue basis. The Company is currently evaluating the impact that the adoption of ASU 2025-12 may have on its consolidated financial statements. Other recent accounting pronouncements issued, but not yet effective, are not expected to be applicable to the Company or have a material effect on the consolidated financial statements upon future adoption.
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Net Income (Loss) Per Share |
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| Net Loss Per Share | 3. Net Income Per Share The following table sets forth the computation of basic and diluted net income per common share (in thousands, except per share amounts):
The dilutive impact of the convertible senior notes is determined using the if-converted method. Under the if-converted method, the convertible senior notes are assumed to be converted into common stock at the beginning of the period (or at the time of issuance, if later). Interest charges are deducted from the numerator, unless the principal amount of the convertible instruments is required to be paid in cash. The dilutive impact of all other types of dilutive securities is determined using the treasury stock method. On December 15, 2025, the Company elected to settle conversions of the 2026 Convertible Notes through cash payment equal to the principal value and shares of Class A Common Stock for the conversion premium, if any (Note 9). Accordingly, interest expense is added to the numerator and the calculated spread is added to the denominator only for the period the 2026 Convertible Notes were outstanding prior to the settlement method election, to the extent an assumed conversion is dilutive. Interest expense was excluded from the numerator and there was no calculated spread added to the denominator because an assumed conversion would be anti-dilutive. The outstanding securities set forth in the following table have been excluded from the computation of diluted weighted average shares outstanding, as applicable, as their effect would be anti-dilutive (in thousands):
There was no dilutive impact of the 2024 Convertible Notes for the year ended December 31, 2024 because the Company had elected prior to the beginning of the period to settle the conversion of 2024 Convertible Notes, if any, with a combination settlement of a cash payment equal to the principal value of converted notes and shares of Class A Common Stock equal to the conversion value in excess of the principal value, if any (Note 9). Accordingly, interest expense was removed from the numerator and there was no calculated spread added to the denominator because the average market price of the Company’s Class A Common Stock during the period was not in excess of the conversion price.
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| Collaboration, License, and Other Agreements | 4. Collaboration, License, and Other Agreements The Company has linaclotide collaboration agreements with AbbVie for North America and AstraZeneca for China (including Hong Kong and Macau), as well as linaclotide license agreements with Astellas for Japan and with AbbVie for the AbbVie License Territory. The following table provides amounts included in the Company’s consolidated statements of income as collaborative arrangements revenue attributable to transactions from these and other agreements (in thousands):
Accounts receivable, net, included $46.7 million and $81.9 million primarily related to collaborative arrangements revenue, collectively, as of December 31, 2025 and 2024, respectively. Accounts receivable, net, included $46.2 million and $81.3 million due from the Company’s partner, AbbVie, net of $2.7 million and $3.1 million of accounts payable, as of December 31, 2025 and 2024, respectively. The Company routinely assesses the creditworthiness of its license and collaboration partners. The Company did not experience any material losses related to receivables from its license or collaboration partners during the years ended December 31, 2025 or 2024. Linaclotide Agreements Collaboration Agreement for North America with AbbVie In September 2007, the Company entered into a collaboration agreement with AbbVie to develop and commercialize linaclotide for the treatment of IBS-C, CIC, and other GI conditions in North America. Under the terms of this collaboration agreement, the Company received an upfront licensing fee, equity investment, and development and regulatory milestones, and shares equally with AbbVie all development costs as well as net profits or losses from the development and sale of linaclotide in the U.S. In addition, the Company receives royalties in the mid-teens percent based on net sales in Canada and Mexico. AbbVie is solely responsible for the further development, regulatory approval and commercialization of linaclotide in those countries and funding any costs. During the years ended December 31, 2025 and 2024, the Company incurred $7.5 million and $7.4 million, respectively, in total research and development expenses under the linaclotide collaboration for North America. As a result of the research and development cost-sharing provisions of the linaclotide collaboration for North America, the Company incurred $5.0 million and $8.6 million in incremental research and development costs during the years ended December 31, 2025 and 2024, respectively, to reflect the obligations of each party under the collaboration to bear 50% of the development costs incurred. The Company and AbbVie began commercializing LINZESS in the U.S. in December 2012. The Company receives 50% of the net profits and bears 50% of the net losses from the commercial sale of LINZESS in the U.S. Net profits or net losses consist of net sales of LINZESS to third-party customers and sublicense income in the U.S. less the cost of goods sold as well as selling, general and administrative expenses. LINZESS net sales are calculated and recorded by AbbVie and may include gross sales net of discounts, rebates, allowances, sales taxes, freight and insurance charges, and other applicable deductions. The Company evaluated its linaclotide collaboration arrangement for North America and concluded that all development-period performance obligations had been satisfied as of September 2012. The Company has determined that there are three remaining commercial-period performance obligations, which include the sales detailing of LINZESS, participation in the joint commercialization committee, and approved additional trials. The consideration remaining includes cost reimbursements in the U.S. and net profit and loss sharing payments based on net sales in the U.S. Additionally, the Company receives royalties in the mid-teens percent based on net sales in Canada and Mexico. Royalties and net profit and loss sharing payments will be recorded as collaborative arrangements revenue or expense in the period earned, as these payments relate predominantly to the license granted to AbbVie. The Company records royalty revenue in the period earned based on royalty reports from its partner, if available, or based on the projected sales and historical trends. The cost reimbursements received from AbbVie during the commercialization period will be recognized as earned in accordance with the right-to-invoice practical expedient, as the Company’s right to consideration corresponds directly with the value of the services transferred during the commercialization period. Under the Company’s linaclotide collaboration agreement for North America, LINZESS net sales are calculated and recorded by AbbVie and include gross sales net of discounts, rebates, allowances, sales taxes, freight and insurance charges, and other applicable deductions, as noted above. These amounts include the use of estimates and judgments, which could be adjusted based on actual results in the future. The Company records its share of the net profits or net losses from the sales of LINZESS in the U.S. less commercial expenses on a net basis, and presents the settlement payments to and from AbbVie as collaboration expense or collaborative arrangements revenue, as applicable. This treatment is in accordance with the Company’s revenue recognition policy, given that the Company is not the primary obligor and does not have the inventory risks in the collaboration agreement with AbbVie for North America. The Company relies on AbbVie to provide accurate and complete information related to net sales of LINZESS in accordance with U.S. generally accepted accounting principles in order to calculate its settlement payments to and from AbbVie and record collaboration expense or collaborative arrangements revenue, as applicable. During the year ended December 31, 2024, the Company recognized a $43.0 million reduction to collaboration revenue, as a result of changes in estimates of sales reserves and allowances associated with governmental and contractual rebates. Excluding the changes in estimates, net income per share – basic and net income per share – diluted would have been $0.21 and $0.19, respectively, for the year ended December 31, 2024. The following table summarizes collaborative arrangements revenue from the linaclotide collaboration agreement for North America during the years ended December 31, 2025 and 2024 as follows (in thousands):
The Company incurred $4.4 million and $39.3 million in total selling, general and administrative costs related to the sale of LINZESS in the U.S. in accordance with the cost-sharing arrangement with AbbVie for the years ended December 31, 2025 and 2024, respectively. In May 2014, CONSTELLA® became commercially available in Canada and, in June 2014, LINZESS became commercially available in Mexico. The Company records royalties on sales of CONSTELLA in Canada and LINZESS in Mexico in the period earned. The Company recognized $3.0 million and $2.8 million of combined royalty revenues from Canada and Mexico during the years ended December 31, 2025 and 2024, respectively. License Agreement with AbbVie (All countries other than the countries and territories of North America, China (including Hong Kong and Macau), and Japan) The Company has a license agreement with AbbVie to develop, manufacture and commercialize linaclotide in (i) Europe, and (ii) all other countries other than China (including Hong Kong and Macau), Japan, and the countries and territories of North America, or collectively the “Expanded Territory”, for the treatment of IBS-C, CIC and other GI conditions. Under the license agreement, as amended, AbbVie is obligated to pay the Company, (i) royalties based on sales volume in Europe in the upper-teens percent, and (ii) on a country-by-country and product-by-product basis in the Expanded Territory, a royalty as a percentage of net sales of products containing linaclotide as an active ingredient in the upper-single digits for five years following the first commercial sale of a linaclotide product in a country, and in the low-double digits thereafter. The royalty rate for products in Europe and the Expanded Territory will decrease, on a country-by-country basis, to the lower-single digits, or cease entirely, following the occurrence of certain events. The license agreement also contains certain sales-based milestones and commercial launch milestones, which could total up to $42.5 million. The Company recognized $3.6 million and $3.2 million of royalty revenue during the years ended December 31, 2025 and 2024, respectively. License Agreement for Japan with Astellas The Company has a license agreement with Astellas to develop, manufacture, and commercialize linaclotide for the treatment of IBS-C, CIC and other GI conditions in Japan. Under the license agreement, as amended, Astellas is required to pay royalties to the Company at rates beginning in the mid-single digit percent and escalating to low-double-digit percent, based on aggregate annual net sales in Japan of products containing linaclotide as an active ingredient. These royalty payments are subject to reduction following the expiration of certain licensed patents and the occurrence of generic competition in Japan. During the years ended December 31, 2025 and 2024, the Company recognized $1.7 million and $1.7 million of royalty revenue, respectively. Collaboration Agreement for China (including Hong Kong and Macau) with AstraZeneca The Company has a collaboration agreement with AstraZeneca under which AstraZeneca has the exclusive right to develop, manufacture and commercialize products containing linaclotide in the AstraZeneca License Territory. Under the collaboration agreement, AstraZeneca is required to pay tiered royalties to the Company at rates beginning in the mid-single-digit percent and increasing up to twenty percent based on the aggregate annual net sales of products containing linaclotide in the AstraZeneca License Territory. In addition, AstraZeneca may be required to make milestone payments totaling up to $90.0 million contingent on the achievement of certain sales targets. During the years ended December 31, 2025 and 2024, the Company recognized $0.3 million and $0.4 million of royalty revenue, respectively. Apraglutide Agreements Development and Commercialization Agreement with AKP In March 2022, VectivBio entered into a development and commercialization agreement with Asahi Kasei Pharma Corporation (“AKP”) in which VectivBio granted an exclusive license to AKP, with the right to sublicense in multiple tiers, to develop, commercialize and exploit products derived from apraglutide in Japan. Pursuant to the terms of the development and commercialization agreement with AKP, VectivBio received an upfront payment of JPY 3,000 million ($24.6 million at date of agreement) and development-related payments of JPY 1,600 million in the aggregate ($13.1 million at date of agreement), and is eligible to receive development milestones of JPY 1,000 million ($8.2 million at date of agreement) and up to JPY 19,000 million ($155.8 million at date of agreement) of commercial and sales-based milestone payments. VectivBio is also eligible to receive payments in the commercial period for manufacturing supply equal to cost-plus manufacturing mark-up and tiered royalties of up to a mid-double-digit percentage on product sales continuing until the later of (i) expiration of regulatory exclusivity in Japan, or (ii) expiration of the last valid patent claim that provides exclusivity to apraglutide in Japan (the “Royalty Term”). The development and commercialization agreement will terminate upon the expiration of the Royalty Term. The Company identified two performance obligations consisting of the (i) exclusive license for the development and commercialization of apraglutide in Japan and (ii) development activities for conducting global trials and sharing of associated development data necessary for obtaining and maintaining regulatory approval in Japan. Each performance obligation was capable of being distinct and distinct in the context of the contract. The initial transaction price was allocated to each performance obligation on a relative standalone selling price basis. The Company assessed that it provided a right to use the license as the license exists (in terms of form and functionality) at the point in time at which it is granted and therefore, was satisfied at the inception of the arrangement. The development activities are being recognized over time as the Company performs development activities related to the global trials. The Company recognizes revenue associated with the development activities using an input method, according to the costs incurred, which in management’s judgment, is the best measure of progress towards satisfying the performance obligation. Under the sales-or-usage-based royalty exception, revenue related to sales-based milestone payments and royalty payments will be recognized as the underlying sales occur. Prior to the VectivBio Acquisition, VectivBio had received the upfront payment of JPY 3,000 million ($24.6 million at date of agreement), development-related payments of JPY 1,100 million ($9.0 million at date of agreement), and development milestones of JPY 500 million ($4.1 million at date of agreement). Upon the acquisition of VectivBio on June 29, 2023, the Company assumed a contract liability for deferred revenue related to the development-related payments at its fair value of $4.3 million. In April 2024, VectivBio received the final development-related payment of JPY 500 million ($4.1 million at date of agreement). During the second quarter of 2025, the Company recorded a $2.9 million reduction to cumulative collaborative arrangements revenue due to an increase in estimated development costs in connection with the confirmatory Phase III clinical trial needed to seek U.S. FDA approval for apraglutide. The Company recognized a net reduction of revenue in the amount of $1.9 million during the year ended December 31, 2025, related to development activities. The Company recognized $2.2 million of revenue during the year ended December 31, 2024. As of December 31, 2025, current deferred revenue of $1.1 million and non-current deferred revenue of $5.3 million is reported within accrued expenses and other current liabilities and other liabilities, respectively, on the consolidated balance sheets. Deferred revenue related to development activities is expected to be recognized over the course of the development activities, which are anticipated to be substantially complete by 2030. License Agreement with Ferring In August 2012, as subsequently amended and restated in December 2016, GlyPharma entered into an exclusive licensing agreement with Ferring International Center S.A. (“Ferring”), pursuant to which Ferring granted GlyPharma an exclusive, worldwide, sublicensable license under certain patent rights and know-how controlled by Ferring relating to apraglutide and certain know-how controlled by Ferring relating to specified alternate drug compounds, to research, develop, manufacture, make, have made, import, export, use, sell, distribute, promote, advertise, dispose of or offer to sell (i) products containing apraglutide whose manufacture, use or sale is covered by a valid claim of the licensed patents, or licensed products and (ii) products, containing a specified alternate drug compound, or alternate drug products. In April 2021, the license agreement was transferred and assigned to VectivBio AG, a subsidiary of VectivBio. Under the license agreement, as partial consideration for the rights Ferring granted to it, VectivBio AG is required to pay Ferring a high single-digit percentage royalty on worldwide annual net sales of licensed products and alternate drug products until, on a country-by-country basis and licensed product-by-licensed product or alternate drug product-by-alternate drug product basis, as applicable, the date on which the manufacture, use or sale of such licensed product or alternate drug product, as applicable, ceases to be covered by a valid claim of a patent within the licensed patents in such a country. GlyPharma was also required to issue Ferring a certain number of warrants and Class A preferred shares pursuant to a shareholders’ agreement. The equity obligations under the license agreement have been fully performed by GlyPharma. The Company is also obligated to pay Ferring a specified percentage of the annual consideration VectivBio AG or its affiliates, including the Company, received in connection with sales of licensed product or alternate drug product by any third parties to which VectivBio AG or its affiliates, including the Company, grant a sublicense of any of the rights licensed to VectivBio AG by Ferring under this license agreement. Such percentage is in the high single digits for sales of both licensed products and alternate drug products, and such payments are owed for the duration of the royalty term for licensed products or alternate drug products, as applicable. On October 2, 2025, Ferring filed a complaint against VectivBio AG, for trade secret misappropriation and correction of patent inventorship and ownership in the U.S. District Court in the Eastern District of Texas. On December 18, 2025, the Company and Ferring entered into an agreement to settle the claims for $12.5 million and amended the terms of the licensing agreement to require VectivBio AG to pay a low single-digit percentage royalty from the end of the seventh year from such first commercial sale through the date on which such licensed product ceases to be covered by a valid claim of a patent. In connection with the settlement, the Company recorded a charge of $12.5 million as selling, general, and administrative expense in the consolidated statements of income during the year ended December 31, 2025. VectivBio AG paid $7.5 million in December 2025 and is obligated to pay the remaining $5.0 million on or by December 31, 2026, subject to accelerated payment in certain circumstances. As of December 31, 2025, the remaining obligation of $5.0 million is recorded in accrued expenses and other liabilities in the consolidated balance sheet. Other Collaboration and License Agreements Collaboration and License Option Agreement with COUR In November 2021, the Company entered into the collaboration and license option agreement (the “COUR Collaboration Agreement”) with COUR Pharmaceutical Development Company, Inc. (“COUR”), pursuant to which the Company was granted an option (the “Option”) to acquire an exclusive license to research, develop, manufacture and commercialize, in the U.S., products containing CNP-104 for the treatment of PBC. COUR has initiated a Phase II clinical study to evaluate the safety, tolerability, and pharmacodynamic effects and efficacy of CNP-104 in PBC patients. After reviewing the data from the clinical study for CNP-104, the Company had the right to exercise the Option and pay COUR $35.0 million in exchange for the license, subject to the Company’s right to apply a credit against such payment as described below. In April 2023, the Company and COUR executed an amendment to the COUR Collaboration Agreement, in which the Company agreed to pay a one-time, non-refundable, upfront payment of $6.0 million to COUR in exchange for the right to apply a credit of $6.6 million against future amounts due to COUR in connection with the exercise of the Option, commercial milestones, or royalties. In connection with such payment, COUR also granted the Company a right of first negotiation over certain additional potential research and development programs. The $6.0 million payment was recognized as research and development expense in the second quarter of 2023. In the third quarter of 2024, the Company received from COUR the topline data from COUR’s Phase II clinical study for the treatment of PBC. In September 2024, the Company notified COUR of its decision not to exercise the option to acquire an exclusive license to CNP-104. As a result, the collaboration and license option agreement between the Company and COUR has terminated, and the Company retains no rights and has no obligations related to CNP-104.
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| Fair Value of Financial Instruments | 5. Fair Value of Financial Instruments The tables below present information about the Company’s assets and liabilities that are measured at fair value on a recurring basis as of December 31, 2025 and 2024 and indicate the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. In general, fair values determined by Level 1 inputs utilize observable inputs such as quoted prices in active markets for identical assets or liabilities. Fair values determined by Level 2 inputs utilize data points that are either directly or indirectly observable, such as quoted prices for similar instruments in active markets, interest rates and yield curves. Fair values determined by Level 3 inputs utilize unobservable data points in which there is little or no market data, which require the Company to develop its own assumptions for the asset or liability. The Company’s investment portfolio may include fixed income securities that do not always trade on a daily basis. As a result, the pricing services used by the Company apply other available information as applicable through processes such as benchmark yields, benchmarking of like securities, sector groupings and matrix pricing to prepare valuations. In addition, model processes are used to assess interest rate impact and develop prepayment scenarios. These models take into consideration relevant credit information, perceived market movements, sector news and economic events. The inputs into these models may include benchmark yields, reported trades, broker-dealer quotes, issuer spreads and other relevant data. The Company validates the prices provided by its third-party pricing services by obtaining market values from other pricing sources and analyzing pricing data in certain instances. The Company periodically invests in certain reverse repurchase agreements, which are collateralized by Government Securities and Obligations for an amount not less than 102% of their principal amount. The Company does not record an asset or liability for the collateral as the Company is not permitted to sell or re-pledge the collateral. The collateral has at least the prevailing credit rating of U.S. Government Treasuries and Agencies. The Company uses a third-party custodian to manage the exchange of funds and ensure the collateral received is maintained at 102% of the reverse repurchase agreements principal amount on a daily basis. The following tables present the assets the Company has measured at fair value on a recurring basis (in thousands):
Cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable, accrued research and development costs, accrued expenses and other current liabilities and current portion of operating lease obligations as of December 31, 2025 and 2024 are carried at amounts that approximate fair value due to their short-term maturities. Convertible Senior Notes In August 2019, the Company issued $200.0 million aggregate principal amount of its 2026 Convertible Notes (Note 9). The fair value of the 2026 Convertible Notes, which differs from their carrying value, is influenced by interest rates, the price of the Company’s Class A Common Stock and the volatility thereof, and the prices for the 2026 Convertible Notes observed in market trading, which are Level 2 inputs. The estimated fair value of the 2026 Convertible Notes was $189.3 million and $186.6 million as of December 31, 2025 and 2024, respectively. Capped Calls with Respect to 2026 Convertible Notes In connection with the issuance of the 2026 Convertible Notes, the Company entered into the Capped Calls (as defined in Note 9, Debt, below) with certain financial institutions. The Capped Calls cover 14,933,740 shares of Class A Common Stock (subject to anti-dilution and certain other adjustments), which is the same number of shares of Class A Common Stock that initially underlie the 2026 Convertible Notes. The Capped Calls have an initial strike price of approximately $13.39 per share, which corresponds to the initial conversion price of the 2026 Convertible Notes, and have a cap price of approximately $17.05 per share (Note 9). The strike price and cap price are subject to anti-dilution adjustments generally similar to those applicable to the 2026 Convertible Notes. These instruments meet the conditions outlined in ASC 815, to be classified in stockholders’ equity and are not subsequently remeasured as long as the conditions for equity classification continue to be met (Note 9). Revolving Credit Agreement Outstanding borrowings under the revolving credit facility (Note 9) are carried at amounts that approximate fair value based on their nature, terms, credit spreads, and variable interest rates, which are Level 3 inputs.
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| Leases | 6. Leases The Company’s lease portfolio for the year ended December 31, 2025 included: an office lease for its current headquarters location and other locations, vehicle leases, and leases for computer and office equipment. The Company’s headquarters office lease and vehicle leases require letters of credit totaling $0.6 million to secure the Company’s obligations under the lease agreements. The letters of credit are maintained under a subfacility of the revolving credit agreement (Note 9). Lease cost is recognized on a straight-line basis over the lease term. The components of lease cost for the years ended December 31, 2025 and 2024 are as follows (in thousands):
Supplemental information related to leases for the periods reported is as follows:
Summer Street Lease In June 2019, the Company entered into a non-cancelable operating lease (the “Summer Street Lease”) for approximately 39,000 square feet of office space on the 23rd floor of 100 Summer Street, Boston, Massachusetts, which has been the Company’s headquarters since October 2019. The Summer Street Lease terminates on June 11, 2030 and includes a 2% annual rent escalation, free rent periods, a tenant improvement allowance, and an option to extend the term of the lease for an additional five years at a market base rental rate. The extension option is not included in the lease term used for the measurement of the lease, as it is not reasonably certain to be exercised. The lease expense, inclusive of the escalating rent payments and lease incentives, is recognized on a straight-line basis over the lease term. As of lease commencement, the Company recorded a right-of-use asset and a lease liability using an incremental borrowing rate of 5.8%. As of December 31, 2025, the balances of the right-of-use asset and operating lease liability were $9.3 million and $13.1 million, respectively. As of December 31, 2024, the balances of the right-of-use asset and operating lease liability were $11.0 million and $15.5 million, respectively. Lease costs recorded during each of the years ended December 31, 2025 and 2024 were $2.5 million. Future minimum lease payments under the Summer Street Lease as of December 31, 2025 are as follows (in thousands):
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| Property and Equipment | 7. Property and Equipment Property and equipment, net consisted of the following (in thousands):
Depreciation expense of property and equipment was $1.1 million and $1.2 million for the years ended December 31, 2025 and 2024, respectively.
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| Accrued Expenses and Other Current Liabilities | 8. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following (in thousands):
As of December 31, 2025 and 2024, other accrued expenses were comprised primarily of $9.4 million and $4.3 million of uninvoiced vendor liabilities, respectively.
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| Debt | 9. Debt 0.75% Convertible Senior Notes due 2024 and 1.50% Convertible Senior Notes due 2026 In August 2019, the Company issued $200.0 million aggregate principal amount of the 2024 Convertible Notes and $200.0 million aggregate principal amount of the 2026 Convertible Notes, pursuant to separate indentures (each an “Indenture” and together the “Indentures”), between the Company and U.S. Bank National Association, as trustee (the “Trustee”). The Company received net proceeds of $391.0 million from the sale of the 2024 Convertible Notes and 2026 Convertible Notes, after deducting fees and expenses of $9.0 million. The Company used $25.2 million of the net proceeds from the sale of the 2024 Convertible Notes and 2026 Convertible Notes to pay the cost of the Capped Calls, as described below. In June 2024, the Company repaid the $200.0 million aggregate principal amount of the 2024 Convertible Notes upon maturity. The 2024 Convertible Notes bore cash interest at the annual rate of 0.75% payable on June 15 and December 15 of each year. No conversions were exercised by holders of the 2024 Convertible Notes. The 2026 Convertible Notes bear cash interest at the annual rate of 1.50%, payable on June 15 and December 15 of each year. The 2026 Convertible Notes will mature on June 15, 2026, unless earlier converted or repurchased. The initial conversion rate for the 2026 Convertible Notes is 74.6687 shares of Class A Common Stock (subject to adjustment as provided for in the Indenture) per $1,000 principal amount of the 2026 Convertible Notes, which is equal to an initial conversion price of approximately $13.39 per share. The Company held the option to determine the settlement method for conversions of the 2026 Convertible Notes through payment or delivery, as the case may be, of cash, shares of the Company’s Class A Common Stock, or a combination of cash and shares of Class A Common Stock (subject to, and in accordance with, the settlement provisions of the applicable Indenture). The Company has elected to settle conversion of the 2026 Convertible Notes through cash payment equal to the principal value and shares of Class A Common Stock for the conversion premium, if any. Holders of the 2026 Convertible Notes had the right to convert their 2026 Convertible Notes at their option at any time prior to the close of business on the business day immediately preceding December 15, 2025 upon the occurrence of certain circumstances and no such conversions occurred. On or after December 15, 2025, until the close of business on the second scheduled trading day immediately preceding June 15, 2026, holders may convert their 2026 Convertible Notes, in multiples of $1,000 principal amount, at the option of the holder. Upon the occurrence of fundamental changes, as described in the Indenture, prior to the maturity date of the 2026 Convertible Notes, holders of such notes may require the Company to repurchase for cash all or a portion of their notes at a repurchase price equal to 100% of the principal amount of the notes to be repurchased, plus accrued and unpaid interest. If a make-whole fundamental change, as described in the Indenture, occurs and a holder elects to convert its notes in connection with such make-whole fundamental change, such holder may be entitled to an increase in the conversion rate as described in the Indenture. The Indenture does not contain any financial covenants or restrict the Company’s ability to repurchase the Company’s securities, pay dividends or make restricted payments in the event of a transaction that substantially increases the Company’s level of indebtedness. The Indenture provides for customary events of default. In the case of an event of default arising from specified events of bankruptcy or insolvency, all outstanding notes will become due and payable immediately without further action or notice. If any other event of default under the Indenture occurs or is continuing, the Trustee or holders of at least 25% in aggregate principal amount of the then outstanding notes may declare the principal amount of such notes to be immediately due and payable. The Company accounts for convertible debt instruments as a single liability measured at amortized cost. The Company’s outstanding balance for the 2026 Convertible Notes consisted of the following (in thousands):
The outstanding balance of the 2026 Convertible Notes is classified as a current liability and non-current liability as of December 31, 2025 and December 31, 2024, respectively. In connection with the issuance of the 2026 Convertible Notes, the Company incurred $4.5 million of debt issuance costs, which primarily consisted of initial purchaser’s discounts and legal and other professional fees. The debt issuance costs are reflected as a reduction in the carrying value of the 2026 Convertible Notes and recorded as interest expense over the life of the 2026 Convertible Notes. The Company determined the expected life of the 2026 Convertible Notes was equal to its approximately seven-year term. The effective annual interest rate of the 2026 Convertible Notes for the period from the date of issuance through December 31, 2025 was 1.9%. The effective annual interest rate is computed using the contractual interest and the amortization of debt issuance costs. The following table sets forth total interest expense recognized related to convertible senior notes (in thousands):
Capped Calls with Respect to 2024 Convertible Notes and 2026 Convertible Notes To minimize the impact of potential dilution to the Company’s Class A common stockholders upon conversion of the 2024 Convertible Notes and the 2026 Convertible Notes, the Company separately entered into the capped call transactions in August 2019 (the “Capped Calls”) in connection with the issuance of the 2024 Convertible Notes and the 2026 Convertible Notes. The Company paid the counterparties $25.2 million to enter into the Capped Calls, of which $25.0 million related to the premium payments and $0.2 million related to transaction costs. These instruments meet the conditions outlined in ASC 815 to be classified in stockholders’ equity and are not subsequently remeasured as long as the conditions for equity classification continue to be met. The Capped Calls in connection with the issuance of the 2024 Convertible Notes, which covered 14,933,740 shares of Class A Common Stock, terminated unexercised upon expiry in June 2024. The Capped Calls in connection with the 2026 Convertible Notes have an initial strike price of approximately $13.39 per share, which corresponds to the initial conversion price of the 2026 Convertible Notes and is subject to anti-dilution adjustments generally similar to those applicable to the 2026 Convertible Notes. The Capped Calls have a cap price of approximately $17.05 per share, subject to certain adjustments. The Capped Calls cover 14,933,740 shares of Class A Common Stock (subject to anti-dilution and certain other adjustments), which is the same number of shares of Class A Common Stock that initially underlie the 2026 Convertible Notes. Holders of the 2026 Convertible Notes do not have any rights with respect to the Capped Calls. The Capped Calls are expected generally to reduce the potential dilution to the Class A Common Stock upon conversion of the 2026 Convertible Notes in the event that the market price per share of Class A Common Stock is greater than the strike price of the Capped Calls as adjusted pursuant to the anti-dilution adjustments. If, however, the market price per share of Class A Common Stock exceeds the cap price of the Capped Calls, there would nevertheless be dilution upon conversion of the 2026 Convertible Notes to the extent that such market price exceeds the cap price of the Capped Calls. Revolving Credit Facility In May 2023, in connection with the VectivBio Acquisition, the Company entered into a credit agreement with Wells Fargo Bank, N.A., as administrative agent (in such capacity, the “Agent”), collateral agent, a letter of credit issuer and a lender, and the other agents, lenders and letter of credit issuers parties thereto (collectively, the “Lenders”). In September 2024, the Company, the Agent and the Lenders entered into the first amendment to the revolving credit agreement (as amended from time to time, the “Revolving Credit Agreement”) to, among other things, increase the borrowing capacity from $500.0 million to $550.0 million, extend the maturity date, and increase the Company’s permitted maximum consolidated secured net leverage ratio. The Revolving Credit Agreement provides for a $550.0 million secured revolving credit facility (the "Revolving Credit Facility”), which includes a $10.0 million letter of credit subfacility, and loans made thereunder will mature on the earliest to occur of (i) December 31, 2028 or (ii) the date that is 91 days prior to the stated maturity date of the Company’s existing convertible notes then outstanding, unless, in the case of clause (ii), the Company’s minimum liquidity equals or exceeds certain agreed levels. At the Company’s election, borrowings under the Revolving Credit Agreement will bear interest at a rate equal to (a) Adjusted Term Secured Overnight Financing Rate (“Adjusted Term SOFR”) (as defined in Revolving Credit Agreement) plus the applicable rate (ranging from 1.75% to 3.00%) or (b) the highest of (1) the weighted average overnight Federal funds rate, as published by the Federal Reserve Bank of New York, plus one half of , (2) the prime lending rate or (3) the one-month Adjusted Term SOFR plus 1.0% in effect from time to time plus the applicable rate (ranging from 0.75% to 2.00%). The applicable rates are based on the Company’s consolidated secured net leverage ratio (as defined under the Revolving Credit Facility) at the time of the applicable borrowing. The Company pays a quarterly commitment fee of 0.30% to 0.425% on the daily amount by which the commitments under the Revolving Credit Agreement exceed the outstanding loans and letters of credit. The loans and other obligations under the Revolving Credit Agreement are secured by substantially all of the Company’s personal property, including a pledge of all the capital stock of subsidiaries held directly by the Company or any subsidiary that guarantees the Revolving Credit Agreement following the closing date (which pledge, in the case of any foreign subsidiary, is limited to 65% of the voting stock), subject to certain customary exceptions and limitations. The Revolving Credit Agreement generally prohibits any other liens on the assets of the Company and its restricted subsidiaries, subject to certain exceptions as described in the Revolving Credit Agreement. Under the terms of the Revolving Credit Agreement, the Company will be able to request an increase in the commitments or the addition of a term loan secured by a pari passu lien on the collateral of up to an additional amount equal to the greater of $200.0 million and 100% of the trailing twelve-month Consolidated Adjusted EBITDA (as defined in the Revolving Credit Agreement) upon satisfaction of customary conditions, including receipt of commitments from either new lenders or increased commitments from existing lenders. The Revolving Credit Agreement contains certain customary covenants applicable to the Company and its Restricted Subsidiaries (as defined in the Revolving Credit Agreement). The Company is required to maintain a maximum consolidated secured net leverage ratio of 3.50 to 1.00 until the end of the final quarter of 2025 (the “Initial Period”), (ii) 3.25 to 1.00 until the end of the first quarter of 2026 (the “Interim Period”) and (iii) 3.00 to 1.00 thereafter, and a minimum interest coverage ratio of 3.00 to 1.00, in each case at the end of each fiscal quarter. The Revolving Credit Agreement allows the Company to elect to increase the permitted maximum consolidated secured net leverage ratio to (i) 4.00 to 1.00 during the Initial Period, (ii) 3.75 to 1.00 during the Interim Period and (iii) 3.50 to 1.00 thereafter, in each case for up to four fiscal quarters in the event it consummates an acquisition for consideration in excess of $50.0 million, subject to certain limitations on how often this election can be made. As of December 31, 2025, the Company was in compliance with all covenants under the Revolving Credit Agreement. In connection with the initial execution of the Revolving Credit Agreement during the second quarter of 2023 and the amendment executed in the third quarter of 2024, the Company incurred $2.9 million and $2.2 million of debt issuance costs, respectively, which consisted primarily of lender fees. The debt issuance costs are classified as other assets and are amortized on a straight-line basis over the term of the Revolving Credit Agreement. The Company had unamortized capitalized debt issuance costs of $2.9 million and $3.9 million as of December 31, 2025 and 2024, respectively. The outstanding principal balance on the Revolving Credit Facility was $385.0 million as of December 31, 2025 and 2024. The following table sets forth total interest expense recognized related to Revolving Credit Agreement (in thousands):
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| Commitments and Contingencies | 10. Commitments and Contingencies Commitments with AbbVie The Company and AbbVie are jointly obligated to make minimum purchases of linaclotide API for the territories covered by the Company’s collaboration with AbbVie for North America. Currently, AbbVie fulfills all such minimum purchase commitments. Under the collaboration agreement with AbbVie for North America, the Company shares all development and commercialization costs related to linaclotide in the U.S. with AbbVie. The actual amounts that the Company pays to AbbVie or that AbbVie pays to the Company will depend on numerous factors outside of the Company’s control, including the success of certain clinical development efforts with respect to linaclotide, the content and timing of decisions made by the regulators, the reimbursement and competitive landscape around linaclotide and the Company’s other product candidates, and other factors. Other Funding Commitments As of December 31, 2025, the Company has ongoing studies in various pre-clinical and clinical trial stages. The Company’s most significant clinical trial expenditures are to contract research organizations and contract manufacturing organizations. These contracts are generally cancellable, with notice, at the Company’s option and do not have any significant cancellation penalties. The has into a supply for , which certain purchase . The future minimum purchase commitments under this agreement range from $1.0 million to $3.9 million per year through 2030. Guarantees As permitted under Delaware law, the Company indemnifies its directors and certain of its officers for certain events or occurrences while such director or officer is, or was, serving at the Company’s request in such capacity. The maximum potential amount of future payments the Company could be required to make is unlimited; however, the Company has directors’ and officers’ insurance coverage that is intended to limit its exposure and enable it to recover a portion of any future amounts paid. The Company enters into certain agreements with other parties in the ordinary course of business that contain indemnification provisions. These typically include agreements with business partners, contractors, landlords, clinical sites and customers. Under these provisions, the Company generally indemnifies and holds harmless the indemnified party for losses suffered or incurred by the indemnified party as a result of the Company’s activities. These indemnification provisions generally survive termination of the underlying agreements. The maximum potential amount of future payments the Company could be required to make under these indemnification provisions is unlimited. However, to date the Company has not incurred material costs to defend lawsuits or settle claims related to these indemnification provisions. As a result, the estimated fair value of these obligations is minimal. Accordingly, the Company did not have any liabilities recorded for these obligations as of December 31, 2025 and 2024. Litigation From time to time, the Company is involved in various legal proceedings and claims, either asserted or unasserted, which arise in the ordinary course of business. While the outcome of these other claims cannot be predicted with certainty, management does not believe that the outcome of any of these ongoing legal matters, individually and in aggregate, will have a material adverse effect on the Company’s consolidated financial statements. For details regarding the Ferring legal matter, refer to Note 4, Collaboration, License and Other Agreements. |
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| Stockholders' Equity | 11. Stockholders’ Equity Preferred Stock The Company’s preferred stock may be issued from time to time in one or more series, with each such series to consist of such number of shares and to have such terms as adopted by the board of directors. Authority is given to the board of directors to determine and fix such voting powers, full or limited, or no voting powers, and such designations, preferences and relative participating, optional or other special rights, and qualifications, limitation or restrictions thereof, including without limitation, dividend rights, conversion rights, redemption privileges and liquidation preferences. Common Stock The Company has one class of common stock (“Class A Common Stock”). Class A Common Stock is entitled to one vote per share. The Company has reserved, out of its authorized but unissued shares of Class A Common Stock, sufficient shares to effect the conversion of the 2026 Convertible Notes pursuant to the terms thereof (Note 9). The Company’s stockholders are entitled to dividends if and when declared by the board of directors. |
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| Employee Stock Benefit Plans | 12. Employee Stock Benefit Plans The Company has several share-based compensation plans under which stock options, RSAs, RSUs, and other share-based awards are available for grant to employees, officers, directors and consultants of the Company. The following table summarizes share-based compensation expense by award type (in thousands):
The following table summarizes the share-based compensation expense reflected in the consolidated statements of income (in thousands):
Restructuring expenses include modifications to share-based awards held by employees impacted by certain workforce reductions (Note 15). Stock Benefit Plans As of December 31, 2025, the Company has the following active stock benefit plans pursuant to which awards are currently outstanding: the Amended and Restated 2019 Equity Incentive Plan (the “A&R 2019 Equity Plan”), the 2019 Equity Incentive Plan (the “2019 Equity Plan”), the Amended and Restated 2010 Employee Stock Purchase Plan (the “2010 Purchase Plan”) and the Amended and Restated 2010 Employee, Director, and Consultant Equity Incentive Plan (the “2010 Equity Plan”). As of December 31, 2025, there were 9,920,123 shares available for future grant under the A&R 2019 Equity Plan and the 2010 Purchase Plan. A&R 2019 Equity Plan During 2023, the Company’s stockholders approved the A&R 2019 Equity Plan under which stock options, RSAs, RSUs, and other stock-based awards may be granted to employees, officers, directors, or consultants of the Company. Under the A&R 2019 Equity Plan, 6,000,000 shares of Class A Common Stock were initially reserved for issuance. Subsequent to the approval of the A&R 2019 Equity Plan, shares available for grant under the 2019 Equity Plan are made available for grant under the A&R 2019 Equity Plan and awards that are returned to the A&R 2019 Equity Plan, 2019 Equity Plan and 2010 Equity Plan as a result of their expiration, cancellation, termination or repurchase are automatically made available for future grant under the A&R 2019 Equity Plan. As of December 31, 2025, 6,185,663 shares were available for future grant under the A&R 2019 Equity Plan. 2019 Equity Plan During 2019, the Company’s stockholders approved the 2019 Equity Plan under which stock options, RSAs, RSUs, and other stock-based awards may be granted to employees, officers, directors, or consultants of the Company. Under the 2019 Equity Plan, 10,000,000 shares of Class A Common Stock were initially reserved for issuance. Prior to the approval of the A&R 2019 Equity Plan, awards that were returned to the 2010 Equity Plan as a result of their expiration, cancellation, termination or repurchase were automatically made available for issuance under the 2019 Equity Plan and awards that expired, cancelled, terminated, or were repurchased under the 2019 Equity Plan were no longer available for future grant. As of December 31, 2025, there were no shares available for future grant under the 2019 Equity Plan. 2010 Purchase Plan During 2010, the Company’s stockholders approved the 2010 Purchase Plan, which gives eligible employees the right to purchase shares of common stock at the lower of 85% of the fair market value on the first or last day of an offering period. Each offering period is six months. There were 400,000 shares of common stock initially reserved for issuance pursuant to the 2010 Purchase Plan. The number of shares available for future grant under the 2010 Purchase Plan may be increased on the first day of each fiscal year by an amount equal to the lesser of: (i) 1,000,000 shares, (ii) 1% of the Class A shares of common stock outstanding on the last day of the immediately preceding fiscal year, or (iii) such lesser number of shares as is determined by the board of directors. As of December 31, 2025, there were 3,734,460 shares available for future grant under the 2010 Purchase Plan. 2010 Equity Plan The 2010 Equity Plan provided for the granting of stock options, RSAs, RSUs, and other share-based awards to employees, officers, directors, consultants, or advisors of the Company. As of December 31, 2025, there were no shares available for future grant under the 2010 Equity Plan. Restricted Stock Awards RSAs are granted to non-employee members of the board of directors under restricted stock agreements in accordance with the terms of the Company’s equity plans and the Company’s non-employee director compensation policy, effective May 2019. Annual restricted stock grants to each non-employee member of the board of directors vest in full on the date immediately preceding the next annual meeting of stockholders, provided the individual continues to serve on the Company’s board of directors through each vest date. Initial restricted stock grants to new non-employee members of the board of directors vest annually over a three-year period from the date of grant provided the individual continues to serve on the Company’s board of directors through each vest date. A summary of restricted stock activity for the year ended December 31, 2025 is presented below:
The weighted-average grant date fair value per share of RSAs granted during the years ended December 31, 2025 and 2024, was $0.80 and $5.70, respectively. The total fair value of RSAs that vested during the years ended December 31, 2025 and 2024 was $0.1 million and $1.0 million, respectively. Restricted Stock Units RSUs granted under the Company’s equity plans represent the right to receive one share of the Company’s Class A Common Stock pursuant to the terms of the applicable award agreement. Shares of the Company’s Class A Common Stock are delivered to the employee upon vesting, subject to payment of applicable withholding taxes. Time-based RSUs Time-based RSUs generally vest over a -to-four-year period on the approximate anniversary of the date of grant until fully vested, provided the individual remains in continuous service with the Company through each vesting date. The fair value of all time-based RSUs is based on the market value of the Company's Class A Common Stock on the date of grant. Compensation expense, including the effect of estimated forfeitures, is recognized over the applicable service period. A summary of time-based RSU activity for the year ended December 31, 2025 is as follows:
The weighted-average grant date fair value per share of time-based RSUs granted during the years ended December 31, 2025 and 2024 was $1.65 and $11.53, respectively. The total fair value of time-based RSUs that vested during the years ended December 31, 2025 and 2024 was $3.6 million and $22.0 million, respectively. Performance-based RSUs Performance-based RSUs (“PSUs”) are granted to certain executives. PSUs currently outstanding vest upon the achievement of specified performance criteria over a three-year performance period, generally subject to the executive remaining in continuous service with the Company through the applicable vesting dates. The performance criteria applicable to the PSUs granted in 2025 consisted of relative total shareholder return goals (the “Relative TSR PSUs”). The performance criteria applicable to the PSUs granted in 2024 consisted of an equal weighting of (i) Relative TSR PSUs and (ii) achieving specified stock price targets (the “Absolute TSR PSUs”). The Relative TSR PSUs and Absolute TSR PSUs are valued using the Monte Carlo simulation method on the date of grant. The weighted average assumptions used to estimate the fair value of Relative TSR PSUs and Absolute TSR PSUs were as follows for the years ended December 31, 2025 and 2024:
A summary of PSU activity for the year ended December 31, 2025 is as follows:
The weighted-average grant date fair value per share of PSUs granted during the years ended December 31, 2025 and 2024 was $0.17 and $14.91, respectively. The total fair value of PSUs that vested during the years ended December 31, 2025 and 2024 was $1.0 million and $9.8 million, respectively. Stock Options Stock options granted under the Company’s equity plans represent the right to purchase one share of the Company’s Class A Common Stock pursuant to the terms of the applicable award agreement. Shares of the Company's Class A Common Stock are delivered to the employee upon exercise, subject to payment of applicable withholding taxes. The Company ceased granting stock options during the year ended December 31, 2020. Stock options previously granted under the Company’s equity plans generally have a ten-year term and vest over a period of four years, provided the individual continues to serve at the Company through the vesting dates. Options granted under all equity plans are exercisable at a price per share not less than the fair market value of the underlying common stock on the date of grant. The estimated fair value of options, including the effect of estimated forfeitures, is recognized over the requisite service period, which is typically the vesting period of each option. The following table summarizes stock option activity under the Company’s share-based compensation plans:
The total intrinsic value of options exercised during the year ended December 31, 2024 was $2.0 million. The intrinsic value was calculated as the difference between the fair value of the Company’s Class A Common Stock at the date of exercise and the exercise price of the option issued. The following table sets forth the Company's unrecognized share-based compensation expense, net of estimated forfeitures, as of December 31, 2025, by type of award and the weighted-average period over which that expense is expected to be recognized:
The total unrecognized share-based compensation cost will be adjusted for future changes in estimated forfeitures.
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| Income Taxes | 13. Income Taxes The Company is subject to U.S. federal, state, and foreign income taxes. The components of income before income taxes during the years ended on December 31, 2025 and 2024 consisted of the following (in thousands):
The components of the provision for (benefit from) income taxes during the years ended December 31, 2025 and 2024 consisted of the following (in thousands):
During the year ended December 31, 2025, the Company recorded income tax expense of $46.0 million, comprised of non-cash tax expense of $40.9 million and cash tax expense of $5.1 million, primarily for state income taxes in certain states in which state taxable income exceeded available net operating losses. During the year ended December 31, 2024, the Company recorded income tax expense of $64.3 million, comprised of non-cash tax expense of $57.8 million and cash tax expense of $6.5 million for state income taxes in certain states in which state taxable income exceeded available net operating losses. Due to the Company’s ability to utilize its net operating losses to offset federal taxable income and taxable income in many states, the majority of the Company’s tax provision is a non-cash tax expense until the Company’s net operating losses have been fully utilized. A reconciliation of income taxes computed using the U.S. federal statutory rate of 21% to that reflected in the consolidated statements of income, after the adoption of ASU 2023-09, is as follows (in thousands, except percentages):
(1) State taxes in California, Colorado, Florda, Illinois, Massachusetts, New Jersey, New York, New York City and Pennsylvania comprised the majority of the tax effect in this category.
A reconciliation of income taxes computed using the U.S. federal statutory rate of 21% to that reflected in the consolidated statements of income, prior to the adoption of ASU 2023-09, is as follows (in thousands):
The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities. These differences are measured using the enacted statutory tax rates that are expected to be in effect for the years in which differences are expected to reverse. Deferred tax assets and liabilities were determined based on the difference between financial statement and tax bases using enacted tax rates in effect for the year in which the differences are expected to reverse.
On a periodic basis, the Company reassesses the valuation allowance on its deferred income tax assets, weighing positive and negative evidence to assess the recoverability of the deferred tax assets. As of December 31, 2025 and 2024, the Company maintained a valuation allowance of $126.3 million and $106.3 million, respectively, on deferred tax assets not expected to be realized, related primarily to deferred tax assets acquired in the VectivBio Acquisition comprised primarily of net operating loss carryforwards in Switzerland, as well as certain state net operating losses and state tax credits that are expected to expire prior to utilization. The valuation allowance increased by $20.0 million during the year ended December 31, 2025, primarily to offset foreign net operating losses incurred in Switzerland. The valuation allowance increased by $20.6 million during the year ended December 31, 2024 primarily to offset the foreign net operating losses incurred in Switzerland, to offset certain state net operating losses that are expected to expire prior to utilization, and to offset certain US tax credits that are expected to expire prior to utilization. Subject to the limitations described below, as of December 31, 2025, the Company had federal net operating loss carryforwards of $190.3 million, of which $60.6 million is subject to expiration between 2036 and 2037 and $129.6 million may be carried forward indefinitely. As of December 31, 2025, the Company had state net operating loss carryforwards of $286.5 million to offset future state taxable income, which is subject to expiration at various dates through 2040. The Company also had tax credit carryforwards of $59.7 million as of December 31, 2025 to offset future federal and state income taxes, which is subject to expiration at various dates through 2045. The Company had foreign net operating loss carryforwards of $798.6 million, which are subject to expiration at various dates through 2032. Utilization of federal and state net operating loss carryforwards and research and development credit carryforwards may be subject to a substantial annual limitation due to ownership change limitations that could occur in the future in accordance with Section 382 of the Internal Revenue Code of 1986 (“IRC Section 382”) and with Section 383 of the Internal Revenue Code of 1986, as well as similar state provisions. These ownership changes may limit the amount of net operating loss carryforwards and research and development credit carryforwards that can be utilized annually to offset future taxable income and taxes, respectively. In general, an ownership change, as defined by IRC Section 382, results from transactions increasing the ownership of certain stockholders or public groups in the stock of a corporation by more than 50 percentage points over a three-year period. The following table summarizes the changes in the Company’s unrecognized income tax benefits for the years ended December 31, 2025 and 2024 (in thousands):
The Company had gross unrecognized tax benefits of $11.9 million and $11.6 million as of December 31, 2025 and 2024, respectively. Of the $11.9 million of total unrecognized tax benefits as of December 31, 2025, $7.8 million would, if recognized, affect the Company’s effective tax rate, and the remaining amount would not affect the Company’s effective tax rate, as it relates to a temporary timing difference. Reserves for uncertain tax positions of $13.1 million and $11.8 million are recorded in other liabilities on the Company’s consolidated balance sheets as of December 31, 2025 and 2024, respectively. The Company recognizes interest and penalties, if any, related to uncertain tax positions in income tax expense. The Company recognized $0.9 million and $0.8 million of interest and penalties related to uncertain tax positions during the years ended December 31, 2025 and 2024, respectively. As of December 31, 2025 and 2024, $6.0 million and $5.1 million of interest and penalties have been accrued, respectively. The statute of limitations for assessment by the Internal Revenue Service (“IRS”) and state tax authorities is open for tax years ended December 31, 2022 through the present, although net operating losses generated from years prior to 2022 could be subject to examination and adjustments to the extent utilized in future years. There are currently no federal or state income tax audits in progress. The statute of limitations for assessment for foreign jurisdictions is open for tax years ended December 31, 2021 through the present. The Company made the following income tax payments (net of refunds received) during the year ended December 31, 2025 (in thousands):
* The amount of income taxes paid during the year does not meet the 5% disaggregation threshold.
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| Retirement Plans | 14. Retirement Plans Defined Contribution Retirement Plans The Ironwood Pharmaceuticals, Inc. 401(k) Savings Plan is a defined contribution plan in the form of a qualified 401(k) plan in which substantially all employees are eligible to participate upon employment. Subject to certain IRS limits, eligible employees may elect to contribute from 1% to 100% of their compensation. Company contributions to the plan are at the sole discretion of the Company. During the years ended December 31, 2025 and 2024, the Company provided a matching contribution equal to the greater of: (a) 100% of employee contributions on the first 3% of eligible compensation and 50% of employee contributions on the next 3% of eligible compensation; or (b) 75% of the first $10,000 of employee contributions. During the years ended December 31, 2025 and 2024, the Company recorded $1.2 million and $2.4 million of expense, respectively, related to its 401(k) company match. Defined Benefit Retirement Plans The Company maintains a defined benefit plan for employees in Switzerland, as required by local laws. The pension plan provides employees retirement benefits and risk insurance for death and disability. The contributions of employers and employees in general are defined in percentages of the insured’s salary. The retirement pension is calculated based on the old-age credit balance on retirement multiplied by the fixed conversion rate. The employee has the option to withdraw the capital on demand. As is customary with Switzerland pension plans, the assets of the plan are invested in a collective fund with multiple employers. The Company has no investment authority over the assets of the plan, which are held and invested by a Switzerland-based financial services provider. The investment strategy of the Swiss Plan is managed by an independent asset manager with the objective of achieving a consistent long-term return which will provide sufficient funding for future pension obligations while limiting risk. The Company updates the estimates used to measure employee benefit obligations in the fourth quarter and upon a remeasurement event to reflect the updated actuarial assumptions. The defined benefit plan in Switzerland is comprised of a basic plan as of December 31, 2025 and 2024. During each of the years ended December 31, 2025 and 2024, the Company recognized service cost expense in the amount of $1.0 million. Additionally, during the year ended December 31, 2024, the Company recognized a $2.1 million due to terminations, which reduced net periodic pension cost. During the year ended December 31, 2025, the Company recognized an increase in accumulated other comprehensive income of $0.8 million, primarily due to actuarial gains. During the year ended December 31, 2024, the Company recognized decrease in accumulated other comprehensive income of $1.1 million, primarily due to the amortization of previously unrecognized actuarial losses. During the year ended December 31, 2025, employer contributions and employee contributions were $0.7 million and $0.7 million, respectively, and benefits paid, inclusive of settlements, and net of deposits from pension plan assets totaled $6.8 million. During the year ended December 31, 2024, employer contributions and employee contributions were $0.8 million and $0.8 million, respectively, and benefits paid, inclusive of settlements, and net of deposits from pension plan assets totaled $18.1 million. The estimates benefit from to to from $0.8 million to $1.2 million per year, and from and to be $4.6 million. As of December 31, 2025, the total fair value of pension plan assets was $13.0 million and the fair value of projected benefit obligations was $15.5 million, resulting in a net liability status of $2.5 million recorded as other liabilities. As of December 31, 2024, the total fair value of pension plan assets was $15.7 million and the fair value of projected benefit obligations was $18.5 million, resulting in a net liability status of $2.8 million recorded as other liabilities. The discount rate used in determining the projected benefit obligation as of December 31, 2025 and 2024 were 1.30% and 1.00%, respectively. The accumulated benefit obligation was $15.0 million and $17.9 million as of December 31, 2025 and 2024, respectively. The pension plan assets are predominantly comprised of Level 2 assets in the fair value hierarchy, primarily consisting of fixed income, equities and real estate, except for certain mortgage-backed securities valued at $1.8 million and $1.9 million as of December 31, 2025 and 2024, respectively, which are Level 3 assets in the fair value hierarchy. |
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| Workforce Reduction and Restructuring | 15. Workforce Reductions and Restructuring In June 2023, the Company commenced the elimination of certain positions in connection with the VectivBio Acquisition. The majority of the eliminations were substantially completed during the year ended December 31, 2023. The Company recorded $0.2 million and $2.6 million of restructuring expenses, which are primarily comprised of employee severance, benefits and related costs, during the year ended December 31, 2025 and 2024, respectively. In January 2025, following an analysis of its strategy and core business needs, and in an effort to streamline focus and support the continued development of the Company’s pipeline, the Company commenced a reduction in the Company’s workforce of approximately 50%, primarily consisting of field-based sales employees. The reduction in workforce was substantially completed during the first quarter of 2025. During the year ended December 31, 2025, the Company recorded $17.6 million of restructuring expenses, primarily comprised of severance, benefits, and related costs. In August 2025, the Company eliminated certain positions supporting apraglutide commercialization efforts, in consideration of delays in development timelines. The reduction in workforce was comprised of 10 positions and was completed during the third quarter of 2025. During the year ended December 31, 2025, the Company recorded $2.4 million of restructuring expenses, primarily comprised of severance, benefits, and related costs. The following table summarizes the accrued liabilities activity recorded in connection with the reductions in workforce and related restructuring activities during the year ended December 31, 2025 and 2024, respectively (in thousands):
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Segment Reporting |
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Dec. 31, 2025 | |
| Disclosure Text Block | |
| Segment Reporting | 16. Segment Reporting The Company operates in one reportable business segment—human therapeutics. The human therapeutics segment revenues are generated primarily through collaborative arrangements and license agreements related to research and development and commercialization of linaclotide. The accounting policies of the human therapeutics segment are the same as those described in the summary of significant accounting policies. The Company has identified the Chief Executive Officer and the Chief Financial Officer as the chief operating decision-maker (“CODM”). The CODM uses consolidated net income (loss) to understand and evaluate the Company’s operating performance and trends, to prepare and approve the annual budget, and to develop short-term and long-term operating plans. Revenues, costs and expenses, other income (expense), and income tax expense are provided to the CODM as presented in the statement of income (loss). Total assets are not reviewed by the CODM when evaluating the segment’s performance. |
Selected Quarterly Financial Data (Unaudited) |
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| Selected Quarterly Financial Data (Unaudited) | 17. Selected Quarterly Financial Data (Unaudited) The following table contains quarterly financial information for the years ended December 31, 2025 and 2024. The Company believes that the following information reflects all normal recurring adjustments necessary for a fair presentation of the information for the periods presented. The operating results for any quarter are not necessarily indicative of results for any future period.
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Pay vs Performance Disclosure - USD ($) $ in Thousands |
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| Net Income (Loss) | $ (2,276) | $ 40,080 | $ 23,599 | $ (37,386) | $ 2,256 | $ 3,646 | $ (860) | $ (4,162) | $ 24,017 | $ 880 |
Insider Trading Arrangements |
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Dec. 31, 2025 | |
| Trading Arrangements, by Individual | |
| Rule 10b5-1 Arrangement Adopted | false |
| Non-Rule 10b5-1 Arrangement Adopted | false |
| Rule 10b5-1 Arrangement Terminated | false |
| Non-Rule 10b5-1 Arrangement Terminated | false |
Insider Trading Policies and Procedures |
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Dec. 31, 2025 | |
| Insider Trading Policies and Procedures [Line Items] | |
| Insider Trading Policies and Procedures Adopted | true |
Cybersecurity Risk Management and Strategy Disclosure |
12 Months Ended |
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Dec. 31, 2025 | |
| Cybersecurity Risk Management, Strategy, and Governance [Line Items] | |
| Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block] | We have a multilayered framework for assessing, identifying, detecting and responding to reasonably foreseeable cybersecurity risks and threats. To protect our information technology, or IT, systems from cybersecurity threats, we use various security tools that help prevent, identify, escalate, investigate, resolve and recover from identified vulnerabilities and security incidents in a timely manner. In the event of a material change to our systems or operations, we would conduct an assessment of the internal and external threats to the security, confidentiality, integrity, and availability of our data and systems, along with other material risks to our operations. We leverage third-party security services for audit, benchmarking, and improvement and use various tools and methodologies to manage cybersecurity risks that are tested regularly, including a cybersecurity assessment guided by the National Institute of Standards and Technology cybersecurity framework and ongoing security awareness training. We oversee third-party service providers by conducting vendor diligence upon onboarding and ongoing monitoring. Vendors are assessed for risk based on the nature of their digital footprint, company profile, domain name services health, internet protocol reputation, external access threats and social engineering landscapes. Based on that assessment, we conduct diligence that may include completing security questionnaires, onsite evaluation, and scans or other technical evaluations. We also monitor and evaluate our cybersecurity posture and performance on an ongoing basis through regular vulnerability scans, simulated phishing tests, penetration tests, and threat intelligence feeds. The results of these assessments are reported to the Audit Committee of the Board of Directors. We have developed an incident response plan designed to coordinate the activities that we and our third-party service providers take to prepare to respond and recover from cybersecurity incidents, which include processes to triage, assess severity, investigate, escalate, contain, and remediate an incident, as well as to comply with potentially applicable legal obligations and mitigate any reputational damage. |
| Cybersecurity Risk Management Processes Integrated [Flag] | true |
| Cybersecurity Risk Management Processes Integrated [Text Block] | We have a multilayered framework for assessing, identifying, detecting and responding to reasonably foreseeable cybersecurity risks and threats. To protect our information technology, or IT, systems from cybersecurity threats, we use various security tools that help prevent, identify, escalate, investigate, resolve and recover from identified vulnerabilities and security incidents in a timely manner. In the event of a material change to our systems or operations, we would conduct an assessment of the internal and external threats to the security, confidentiality, integrity, and availability of our data and systems, along with other material risks to our operations. We leverage third-party security services for audit, benchmarking, and improvement and use various tools and methodologies to manage cybersecurity risks that are tested regularly, including a cybersecurity assessment guided by the National Institute of Standards and Technology cybersecurity framework and ongoing security awareness training. We oversee third-party service providers by conducting vendor diligence upon onboarding and ongoing monitoring. Vendors are assessed for risk based on the nature of their digital footprint, company profile, domain name services health, internet protocol reputation, external access threats and social engineering landscapes. Based on that assessment, we conduct diligence that may include completing security questionnaires, onsite evaluation, and scans or other technical evaluations. We also monitor and evaluate our cybersecurity posture and performance on an ongoing basis through regular vulnerability scans, simulated phishing tests, penetration tests, and threat intelligence feeds. The results of these assessments are reported to the Audit Committee of the Board of Directors. We have developed an incident response plan designed to coordinate the activities that we and our third-party service providers take to prepare to respond and recover from cybersecurity incidents, which include processes to triage, assess severity, investigate, escalate, contain, and remediate an incident, as well as to comply with potentially applicable legal obligations and mitigate any reputational damage. |
| 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] | The Company’s Senior Vice President, Corporate Controller & Chief Accounting Officer is responsible for managerial oversight of our cybersecurity program and reporting on cybersecurity matters to the Audit Committee of the Board of Directors and management. Our Senior Vice President, Corporate Controller & Chief Accounting Officer oversees the cybersecurity team, which include members of our internal IT department and is also supported by third-party service providers. Our Board of Directors is responsible for overseeing our enterprise risk management activities in general, and each of our Board committees assists the Board in the role of risk oversight. The Audit Committee of the Board of Directors oversees our cybersecurity risk and receives regular reports, with a minimum frequency of once per year, from our Senior Vice President, Corporate Controller & Chief Accounting Officer on various cybersecurity matters, including risk assessments, mitigation strategies, areas of emerging risks, incidents and industry trends, and other areas of importance. Promptly after becoming aware of a material cybersecurity incident affecting our IT systems or data, the Audit Committee would work with management to formulate a mitigation plan and review compliance with such plan, as well as to ensure compliance with any external regulatory or disclosure requirements, including any disclosures of material cybersecurity breaches.
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| Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] | Audit Committee of the Board of Directors |
| Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] | Our Board of Directors is responsible for overseeing our enterprise risk management activities in general, and each of our Board committees assists the Board in the role of risk oversight. The Audit Committee of the Board of Directors oversees our cybersecurity risk and receives regular reports, with a minimum frequency of once per year, from our Senior Vice President, Corporate Controller & Chief Accounting Officer on various cybersecurity matters, including risk assessments, mitigation strategies, areas of emerging risks, incidents and industry trends, and other areas of importance. Promptly after becoming aware of a material cybersecurity incident affecting our IT systems or data, the Audit Committee would work with management to formulate a mitigation plan and review compliance with such plan, as well as to ensure compliance with any external regulatory or disclosure requirements, including any disclosures of material cybersecurity breaches. |
| Cybersecurity Risk Role of Management [Text Block] | The Company’s Senior Vice President, Corporate Controller & Chief Accounting Officer is responsible for managerial oversight of our cybersecurity program and reporting on cybersecurity matters to the Audit Committee of the Board of Directors and management. Our Senior Vice President, Corporate Controller & Chief Accounting Officer oversees the cybersecurity team, which include members of our internal IT department and is also supported by third-party service providers. Our Board of Directors is responsible for overseeing our enterprise risk management activities in general, and each of our Board committees assists the Board in the role of risk oversight. The Audit Committee of the Board of Directors oversees our cybersecurity risk and receives regular reports, with a minimum frequency of once per year, from our Senior Vice President, Corporate Controller & Chief Accounting Officer on various cybersecurity matters, including risk assessments, mitigation strategies, areas of emerging risks, incidents and industry trends, and other areas of importance. Promptly after becoming aware of a material cybersecurity incident affecting our IT systems or data, the Audit Committee would work with management to formulate a mitigation plan and review compliance with such plan, as well as to ensure compliance with any external regulatory or disclosure requirements, including any disclosures of material cybersecurity breaches.
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| Cybersecurity Risk Management Positions or Committees Responsible [Flag] | true |
| Cybersecurity Risk Management Positions or Committees Responsible [Text Block] | Senior Vice President, Corporate Controller & Chief Accounting Officer |
| Cybersecurity Risk Management Expertise of Management Responsible [Text Block] | The Company’s Senior Vice President, Corporate Controller & Chief Accounting Officer is responsible for managerial oversight of our cybersecurity program and reporting on cybersecurity matters to the Audit Committee of the Board of Directors and management. Our Senior Vice President, Corporate Controller & Chief Accounting Officer oversees the cybersecurity team, which include members of our internal IT department and is also supported by third-party service providers. |
| Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] | Our Board of Directors is responsible for overseeing our enterprise risk management activities in general, and each of our Board committees assists the Board in the role of risk oversight. The Audit Committee of the Board of Directors oversees our cybersecurity risk and receives regular reports, with a minimum frequency of once per year, from our Senior Vice President, Corporate Controller & Chief Accounting Officer on various cybersecurity matters, including risk assessments, mitigation strategies, areas of emerging risks, incidents and industry trends, and other areas of importance. Promptly after becoming aware of a material cybersecurity incident affecting our IT systems or data, the Audit Committee would work with management to formulate a mitigation plan and review compliance with such plan, as well as to ensure compliance with any external regulatory or disclosure requirements, including any disclosures of material cybersecurity breaches.
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| Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] | true |
Summary of Significant Accounting Policies (Policies) |
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| Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements as of December 31, 2025 include the accounts of Ironwood, its wholly-owned subsidiaries, Ironwood Pharmaceuticals Securities Corporation, Ironwood Pharmaceuticals GmbH, VectivBio AG, and GlyPharma Therapeutic Inc. (“GlyPharma”). All intercompany transactions and balances are eliminated in consolidation. |
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| Segment Information | Segment Information Operating segments are components of an enterprise for which separate financial information is available and is evaluated regularly by the Company’s chief operating decision-maker in deciding how to allocate resources and in assessing performance. The Company currently operates in one reportable business segment – human therapeutics. The Company’s reportable business segment is more fully described in Note 16, Segment Reporting, to these consolidated financial statements. |
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| Use of Estimates | Use of Estimates The preparation of consolidated financial statements in accordance with U.S. generally accepted accounting principles requires the Company’s management to make estimates and judgments that may affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the amounts of revenues and expenses during the reported periods. On an ongoing basis, the Company’s management evaluates its estimates, judgments and methodologies. Estimates and assumptions in the consolidated financial statements include those related to revenue recognition; accounts receivable; useful lives of long-lived assets; impairment of long-lived assets, including goodwill; valuation procedures for right-of-use assets and operating lease liabilities; income taxes, including uncertain tax positions and the valuation allowance for deferred tax assets; research and development expenses; contingencies; defined benefit pension liabilities and certain investment fund assets; and share-based compensation. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results may differ materially from these estimates under different assumptions or conditions. Changes in estimates are reflected in reported results in the period in which they become known. |
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| Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investment instruments with a remaining maturity when purchased of three months or less to be cash equivalents. Investments qualifying as cash equivalents primarily consist of money market funds, U.S. Treasury securities, and commercial paper. The carrying amount of cash equivalents approximates fair value. The amount of cash equivalents included in cash and cash equivalents was $184.3 million and $55.0 million as of December 31, 2025 and 2024, respectively. |
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| Concentrations of Suppliers | Concentrations of Suppliers The Company relies on its collaboration partners and their suppliers to manufacture linaclotide API, linaclotide finished drug product, and finished goods. If any of the Company’s collaboration partners and their suppliers were to limit or terminate production or otherwise fail to meet the quality or delivery requirements needed to satisfy the supply commitments, the process of locating and qualifying alternate sources could require up to several months, during which time production could be delayed. Such delays could have a material adverse effect on the Company’s business, financial position and results of operations. |
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| Accounts Receivable | Accounts Receivable The Company makes judgments as to its ability to collect outstanding receivables and provides an allowance for credit losses when collection becomes doubtful. Provisions are made based upon a specific review of all significant outstanding invoices and the overall quality and age of those invoices not specifically reviewed. The Company’s receivables relate primarily to amounts reimbursed under its collaboration, license, and other agreements. The Company believes that credit risks associated with these partners are not significant. The Company reviews the need for an allowance for credit losses for its receivables based on various factors including payment history and historical bad debt experience. The Company had no allowance for credit losses as of December 31, 2025 or 2024. |
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| Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that subject the Company to credit risk primarily consist of cash and cash equivalents, restricted cash, and accounts receivable. The Company maintains its cash and cash equivalent balances with high-quality financial institutions and the Company believes that such funds are subject to minimal credit risk. The Company has adopted an investment policy which limits the amounts the Company may invest in certain types of investments, and requires all investments held by the Company to be at least A- rated, thereby reducing credit risk exposure. Accounts receivable primarily consists of amounts due under the linaclotide collaboration agreement with AbbVie for North America (Note 4). The Company does not obtain collateral for its accounts receivable. The percentages of revenue recognized from significant collaborative partners of the Company in the years ended December 31, 2025 and 2024 and the account receivable balances, net of any payables due, as of December 31, 2025 and 2024 are included in the following table:
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| Property and Equipment | Property and Equipment Property and equipment, including leasehold improvements, are recorded at cost, and are depreciated when placed into service using the straight-line method based on their estimated useful lives as follows:
Included in property and equipment are certain costs of software obtained for internal use. Costs incurred during the preliminary project stage are expensed as incurred, while costs incurred during the application development stage are capitalized and amortized over the estimated useful life of the software. The Company also capitalizes costs related to specific upgrades and enhancements when it is probable the expenditures will result in additional functionality. Maintenance and training costs related to software obtained for internal use are expensed as incurred. Leasehold improvements are amortized over the shorter of the estimated useful life of the asset or the lease term. Costs for capital assets not yet placed into service have been capitalized as construction in process, and will be depreciated in accordance with the above guidelines once placed into service. Maintenance and repair costs are expensed as incurred. |
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| Intangible Assets | Intangible Assets Intangible assets are comprised of the assembled workforce acquired in the VectivBio Acquisition and are amortized on a straight-line basis over an estimated useful life of five years. |
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| Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company regularly reviews the carrying amount of its long-lived assets to determine whether indicators of impairment may exist, which warrant adjustments to carrying values or estimated useful lives. If indications of impairment exist, projected future undiscounted cash flows associated with the asset are compared to the carrying amount to determine whether the asset’s value is recoverable. If the carrying value of the asset exceeds such projected undiscounted cash flows, the asset will be written down to its estimated fair value. |
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| Income Taxes | Income Taxes The Company provides for income taxes under the asset and liability method. Deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates in effect when the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to reflect the uncertainty associated with their ultimate realization. The Company accounts for uncertain tax positions recognized in the consolidated financial statements in accordance with the provisions of Accounting Standards Codification (“ASC”) Topic 740, Income Taxes, by prescribing a more-likely-than-not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. When uncertain tax positions exist, the Company recognizes the tax benefit of tax positions to the extent that the benefit will more likely than not be realized. The determination as to whether the tax benefit will more likely than not be realized is based upon the technical merits of the tax position as well as consideration of the available facts and circumstances. The Company evaluates uncertain tax positions on a quarterly basis and adjusts the level of the liability to reflect any subsequent changes in the relevant facts surrounding the uncertain positions. Any changes to these estimates, based on the actual results obtained and/or a change in assumptions, could impact the Company’s income tax provision in future periods. Interest and penalty charges, if any, related to unrecognized tax benefits are classified as income tax expense in the Company’s consolidated statements of income. |
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| Financing Costs | Financing Costs Financing costs include costs directly attributable to the Company’s offerings of its equity securities and its debt financings. Costs attributable to equity offerings are charged as a reduction to stockholders’ equity against the proceeds of the offering once the offering is completed. Costs attributable to debt financings are deferred and amortized to interest expense over the term of the debt using the effective interest method. In accordance with ASC Topic 835, Interest, the Company presents on its balance sheet unamortized debt issuance costs related to convertible notes as a direct deduction from the associated debt liability and unamortized debt issuance costs related to revolving credit arrangements as other assets. |
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| Leases | Leases The Company’s lease portfolio for the year ended December 31, 2025 included: office leases for its current headquarters location and other locations, vehicle leases, and leases for computer and office equipment. The Company determines if an arrangement is a lease at the inception of the contract and determines the classification of its leases at lease commencement. The asset component of the Company’s operating leases is recorded as operating lease right-of-use assets, and the liability component is recorded as current portion of operating lease liabilities and operating lease liabilities, net of current portion in the Company’s consolidated balance sheets. As of December 31, 2025, the Company did not record any finance leases. Right-of-use assets and operating lease liabilities are recognized based on the present value of lease payments over the lease term at the lease commencement date. The lease term used to measure the right-of-use asset and operating lease liability may include options to extend the lease when it is reasonably certain that the Company will exercise the option. The Company accounts for lease components and non-lease components together as a single lease component for the asset class of right-of-use real estate assets. The Company uses an incremental borrowing rate based on the information available at lease commencement in determining the present value of lease payments, if an implicit rate of return is not readily determinable. Operating lease right-of-use assets are adjusted for prepaid rent, initial direct costs, and lease incentives. Right-of-use assets and operating lease liabilities are remeasured upon reassessment events and modifications to leases using the present value of remaining lease payments and estimated incremental borrowing rate at the time of remeasurement, as applicable. Operating lease cost is recognized on a straight-line basis over the lease term, and includes amounts related to short-term leases. The Company has elected to not recognize lease terms with a term of twelve months or less on its balance sheet for all classes of underlying asset types. The Company recognizes variable lease payments as operating expenses in the period in which the obligation for those payments is incurred. Variable lease payments primarily include common area maintenance, utilities, real estate taxes, insurance, and other operating costs that are passed on from the lessor in proportion to the space leased by the Company. |
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| Derivative Assets and Liabilities | Derivative Assets and Liabilities In August 2019, the Company issued 0.75% Convertible Senior Notes due 2024 (the “2024 Convertible Notes”) and 1.50% Convertible Senior Notes due 2026 (the “2026 Convertible Notes”). In connection with the issuance of the 2024 Convertible Notes and the 2026 Convertible Notes, the Company entered into the Capped Calls (as defined in Note 9, Debt, below). The Capped Calls cover the same number of shares of Class A Common Stock that initially underlie the 2024 Convertible Notes and the 2026 Convertible Notes (subject to anti-dilution and certain other adjustments). These instruments meet the conditions outlined in ASC Topic 815, Derivatives and Hedging (“ASC 815”) to be classified in stockholders’ equity (deficit) and are not subsequently remeasured as long as the conditions for equity classification continue to be met. The Capped Calls related to the 2024 Convertible Notes expired unexercised upon maturity of the 2024 Convertible Notes in June 2024. |
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| Revenue Recognition | Revenue Recognition The Company’s revenues are generated primarily through collaborative arrangements and license agreements related to the research and development and commercialization of linaclotide. The terms of the collaborative research and development, license, co-promotion and other agreements contain multiple performance obligations which may include (i) licenses, (ii) research and development activities, including participation on joint steering committees, (iii) the manufacture of finished drug product, API, or development materials for a partner, which are reimbursed at a contractually determined rate, and (iv) education or co-promotion activities by the Company’s clinical sales specialists. Non-refundable payments to the Company under these agreements may include (i) up-front license fees, (ii) payments for research and development activities, (iii) payments for the manufacture of finished drug product, API, or development materials, (iv) payments based upon the achievement of certain milestones, (v) payments for sales detailing, promotional support services and medical education initiatives, and (vi) royalties on product sales. The Company receives its share of the net profits or bears its share of the net losses from the sale of linaclotide in the U.S. through its collaboration agreement with AbbVie for North America. The Company has adopted a policy to recognize revenue net of tax withholdings, as applicable. Collaboration, License, and Other Commercial Agreements Upon licensing intellectual property to a customer, the Company determines if the license is distinct from the other performance obligations identified in the arrangement. The Company recognizes revenues from the transaction price, including non-refundable, up-front fees allocated to the license when the license is transferred to the customer if the license has distinct benefit to the customer. For licenses that are combined with other promises, the Company assesses the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time. For performance obligations that are satisfied over time, the Company evaluates the measure of progress each reporting period and, if necessary, adjusts the measure of performance and related revenue recognition. The Company’s license and collaboration agreements include milestone payments, such as development and other milestones. The Company evaluates whether the milestones are considered probable of being reached and estimates the amount to be included in the transaction price using the most likely amount method at the inception of the agreement. If it is probable that a significant revenue reversal would not occur, the associated milestone value is included in the transaction price. Milestone payments that are not within the control of the Company, such as regulatory approvals, are not considered probable of being achieved until those approvals are received. The transaction price is then allocated to each performance obligation on a relative standalone selling price basis, for which the Company recognizes revenue as or when the performance obligations under the contract are satisfied. The Company re-evaluates the probability of achievement of such milestones and any related constraint at each reporting period, and any adjustments are recorded on a cumulative catch-up basis. Agreements that include the supply of active pharmaceutical ingredient (“API”) or drug product for either clinical development or commercial supply at the customer’s discretion are generally considered as options. The Company assesses if these options provide a material right to its partner, and if so, they are accounted for as separate performance obligations. If the Company is entitled to additional payments when the customer exercises these options, any additional payments are recorded as revenue when the customer obtains control of the goods, which is typically upon shipment for sales of API and finished drug product. For agreements that include sales-based royalties, including milestone payments based on the level of sales, and the license is deemed to be the predominant item to which the royalties relate, the Company recognizes revenue when the related sales occur in accordance with the sales-based royalty exception. Net Profit or Net Loss Sharing In accordance with ASC Topic 808, Collaborative Arrangements (“ASC 808”), the Company considers the nature and contractual terms of the arrangement and the nature of the Company’s business operations to determine the classification of payments under the Company’s collaboration agreements. While ASC 808 provides guidance on classification, the standard is silent on matters of separation, initial measurement, and recognition. Therefore, the Company applies the separation, initial measurement, and recognition principles of ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”), as applicable. The Company’s collaborative arrangements revenues generated from sales of LINZESS in the U.S. are considered akin to sales-based royalties. In accordance with the sales-based royalty exception, the Company recognizes its share of the pre-tax commercial net profit or net loss generated from the sales of LINZESS in the U.S. in the period the product sales are earned, as reported by AbbVie, and related cost of goods sold and selling, general and administrative expenses as incurred by the Company and AbbVie. These amounts are partially determined based on amounts provided by AbbVie and involve the use of estimates and judgments, such as product sales allowances and accruals related to prompt payment discounts, chargebacks, governmental and contractual rebates, wholesaler fees, product returns, and co-payment assistance costs, which could be adjusted based on actual results in the future. The Company is highly dependent on AbbVie for timely and accurate information regarding net revenues from sales of LINZESS in the U.S. in accordance with both ASC 808 and ASC 606, and the related costs, in order to accurately report its results of operations. If the Company does not receive timely and accurate information or incorrectly estimates activity levels associated with the collaboration at a given point in time, the Company could be required to record adjustments in future periods. In accordance with ASC 606-10-55, Principal Agent Considerations, the Company records revenue transactions as net product revenue in its consolidated statements of income if it is deemed the principal in the transaction, which includes being the primary obligor, retaining inventory risk, and control over pricing. Given that the Company is not the primary obligor and does not have the inventory risks in the collaboration agreement with AbbVie for North America, it records its share of the net profits or net losses from the sales of LINZESS in the U.S. on a net basis and presents the settlement payments to and from AbbVie as collaboration expense or collaborative arrangements revenue, as applicable. The Company and AbbVie settle the cost sharing quarterly such that the Company’s statements of income reflect 50% of the pre-tax net profit or loss generated from sales of LINZESS in the U.S. Other The Company’s deferred revenue balance consists of advance billings and payments received from collaboration partners in excess of revenue recognized. |
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| Research and Development Costs | Research and Development Costs The Company generally expenses research and development costs to operations as incurred. The Company capitalizes nonrefundable advance payments made by the Company for research and development activities and defers expense recognition until the related goods are received or the related services are performed. Research and development expenses are comprised of costs incurred in performing research and development activities, including salary, benefits, share-based compensation, and other employee-related expenses; laboratory supplies and other direct expenses; facilities expenses; overhead expenses; third-party contractual costs relating to nonclinical studies and clinical trial activities and related contract manufacturing expenses, development of manufacturing processes and regulatory registration of third-party manufacturing facilities; licensing fees for the Company’s product candidates; and other outside expenses. The Company has certain collaboration agreements pursuant to which it shares or has shared research and development expenses related to linaclotide. The Company records expenses incurred under such linaclotide collaboration arrangements as research and development expense. Under the Company’s collaboration agreement with AbbVie for North America, the Company is reimbursed for certain research and development expenses and nets these reimbursements against its research and development expenses as incurred. Research and development expense includes up-front payment, non-contingent payment, and milestone payment obligations under certain collaboration arrangements. Expense is recognized when the obligation is determined to be probable. |
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| Restructuring Expenses | Restructuring Expenses Restructuring expenses are comprised primarily of costs associated with exit and disposal activities in accordance with ASC Topic 420, Exit or Disposal Cost Obligations, and ASC Topic 712, Compensation – Nonretirement Postemployment Benefits, and include one-time termination benefits and contract-related costs. Such costs are based on estimates of fair value in the period liabilities are incurred. The Company evaluates and adjusts these costs for changes in circumstances as additional information becomes available. |
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| Selling, General and Administrative Expenses | Selling, General and Administrative Expenses The Company expenses selling, general and administrative costs to operations as incurred. Selling, general and administrative expenses consist primarily of compensation, benefits and other employee-related expenses for personnel in the Company’s administrative, finance, legal, information technology, business development, commercial, sales, marketing, communications and human resource functions. Other costs include legal costs of pursuing patent protection of the Company’s intellectual property, general and administrative related facility costs, insurance costs and professional fees for accounting, tax, consulting, legal and other services. The Company includes AbbVie’s selling, general and administrative cost-sharing payments in the calculation of the net profits and net losses from the sale of LINZESS in the U.S. and presents the net payment to or from AbbVie as collaboration expense or collaborative arrangements revenue, respectively. |
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| Defined Benefit Pension Obligations | Defined Benefit Pension Obligations Pension benefits earned during the year, as well as interest on projected benefit obligations (“PBO”), are accrued. Service costs are recognized within research and development expenses or selling, general and administrative expenses, depending on the function of the plan participant. All other components of net period costs are recognized within other income (expense), net. Prior service costs and credits resulting from changes in plan benefits are recognized in other comprehensive income (loss) in the period in which they occur and then amortized to net periodic benefit costs generally over the average remaining service period of the active participants. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized in other comprehensive income (loss) in the period in which they occur. To the extent such gains and losses exceed 10% of the PBO or the estimated fair value of plan assets, the excess is amortized into net periodic benefit costs, generally over the average remaining service period of the active participants. The Company recognizes a pension plan’s funded status as either an asset or liability in its consolidated balance sheets. |
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| Share-Based Compensation Expense | Share-Based Compensation Expense The Company grants awards under its share-based compensation programs, including stock awards, restricted stock awards (“RSAs”), restricted stock units (“RSUs”) (including both time-based and performance-based RSUs), stock options, and shares issued under the Company’s employee stock purchase plan (“ESPP”). Share-based compensation is recognized as expense in the consolidated statements of income based on the grant date fair value over the requisite service period, net of estimated forfeitures. The Company estimates forfeitures over the requisite service period using historical forfeiture activity and records share-based compensation expense only for those awards that are expected to vest. The Company estimates the fair value of stock options using the Black-Scholes option-pricing model, which requires the use of subjective assumptions including volatility and expected term, among others. The fair value of stock awards, RSAs, and RSUs is based on the market value of the Company’s Class A Common Stock on the date of grant, with the exception of performance-based RSUs with market conditions, which are measured using the Monte Carlo simulation method on the date of grant (Note 12). Discounted stock purchases under the Company’s ESPP are valued on the first date of the offering period using the Black-Scholes option-pricing model to compute the fair value of the lookback provision plus the purchase discount. For awards that vest based on service conditions and market conditions, the Company uses a straight-line method to recognize compensation expense over the respective service period. For awards that contain performance conditions, the Company determines the appropriate amount to expense at each reporting date based on the anticipated achievement of performance targets, which requires judgement, including forecasting the achievement of future specified targets. At the date performance conditions are determined to be probable of achievement, the Company records a cumulative expense catch-up, with remaining expense amortized over the remaining service period. Throughout the performance period, the Company re-assesses the estimated performance and updates the number of performance-based awards that it believes will ultimately vest. Discounted stock purchases under the Company’s ESPP are recognized over the offering period. Compensation expense related to modified awards is measured based on the fair value for the awards as of the modification date. Any incremental compensation expense arising from the excess of the fair value of the awards on the modification date compared to the fair value of the awards immediately before the modification date is recognized at the modification date or ratably over the requisite remaining service period, as appropriate. While the assumptions used to calculate and account for share-based compensation awards represent management’s best estimates, these estimates involve inherent uncertainties and the application of management’s judgment. As a result, if revisions are made to the Company’s underlying assumptions and estimates, the Company’s share-based compensation expense could vary significantly from period to period. |
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| Patent Costs | Patent Costs Legal and other fees related to patents are charged to selling, general and administrative expenses as incurred. |
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| Net Income (Loss) Per Share | Net Income (Loss) Per Share Basic net income (loss) per common share is computed by dividing the net income by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share reflects the potential dilution beyond common shares for basic net income (loss) per share that could occur if securities or other contracts to issue common shares were exercised, converted into common shares, or resulted in the issuance of common shares that would have shared in the Company’s earnings. |
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| Foreign Currency Translation | Foreign Currency Translation For subsidiaries with a different functional currency than the U.S. dollar, assets and liabilities are translated at the exchange rates as of the balance sheet date and income and expense items are translated at the average exchange rates for the reporting period. Adjustments resulting from the translation of the financial statements of foreign subsidiaries are recorded in accumulated comprehensive income (loss), a separate component of stockholders’ deficit. |
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| Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) is comprised of net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) includes foreign currency translation adjustments and certain changes in the fair value of pension plan assets and projected benefit obligation attributed to the Company’s defined benefit pension plans. Accumulated other comprehensive income (loss) is presented as a separate component of stockholders’ deficit. |
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| Subsequent Events | Subsequent Events The Company considers events or transactions that have occurred after the balance sheet date of December 31, 2025, but prior to the filing of the financial statements with the Securities and Exchange Commission (“SEC”) to provide additional evidence relative to certain estimates or to identify matters that require additional recognition or disclosure. Subsequent events have been evaluated through the filing of the financial statements accompanying this Annual Report on Form 10-K. |
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| New Accounting Pronouncements | New Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (the “FASB”) or other standard setting bodies that are adopted by the Company as of the specified effective date. Except as set forth below, the Company did not adopt any new accounting pronouncements during the year ended December 31, 2025 that had a material effect on its consolidated financial statements. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). The guidance in ASU 2023-09 improves the transparency of annual income tax disclosures by requiring greater disaggregation of information in the rate reconciliation and income taxes paid disaggregated by jurisdiction. The standard is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. Upon adoption, ASU 2023-09 may be applied prospectively or retrospectively. The Company adopted ASU 2023-09 during the year ended December 31, 2025, on a basis. The expanded disclosures are included in the consolidated financial statements (Note 13). In November 2024, the FASB issued ASU No. 2024-03, Disaggregation of Income Statement Expenses (“ASU 2024-03”). The guidance in ASU 2024-03 requires new financial statement disclosures in tabular format, disaggregating information about prescribed categories underlying any relevant income statement expense captions. The standard is effective for fiscal years beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. Upon adoption, ASU 2024-03 may be applied prospectively or retrospectively. The Company is currently evaluating the impact that the adoption of ASU 2024-03 may have on its disclosures in its consolidated financial statements. In November 2024, the FASB issued ASU No. 2024-04, Debt—Debt with Conversion and Other Options (Subtopic 470-20) (“ASU 2024-04”). The guidance in ASU 2024-04 clarifies the requirements related to accounting for the settlement of a debt instrument as an induced conversion. The standard is effective for fiscal years beginning after December 15, 2025, and interim periods within fiscal years beginning after December 15, 2025, with early adoption permitted as of the beginning of a reporting period if the entity has also adopted ASU 2020-06 for that period. The Company is currently evaluating the impact that the adoption of ASU 2024-04 may have on its disclosures in its consolidated financial statements. In July 2025, the FASB issued ASU No. 2025-05, Measurement of Credit Losses for Accounts Receivable and Contract Assets (“ASU 2025-05”). The guidance in ASU 2025-05 amends ASC Topic 326, Financial Instruments—Credit Losses, to provide a practical expedient to simplify estimating expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under ASC Topic 606, Revenue from Contracts with Customers. The practical expedient, if elected, allows entities to assume that current conditions as of the balance sheet date do not change for the remaining life of the asset. The standard is effective for annual fiscal years beginning after December 15, 2025 and interim periods within fiscal years beginning after December 15, 2025, with early adoption permitted. Entities that elect the practical expedient should apply the guidance prospectively. The Company is currently evaluating the impact that the adoption of ASU 2025-05 may have on its consolidated financial statements. In September 2025, the FASB issued ASU No. 2025-06, Targeted Improvements to the Accounting for Internal-Use Software (“ASU 2025-06”). The guidance in ASU 2025-06 amends certain aspects of the accounting for and disclosure of software costs under ASC Subtopic 350-40, Internal Use Software. The standard is effective for fiscal years beginning after December 15, 2027 and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. Entities may elect to apply the guidance prospectively, retrospectively, or through a modified prospective transition method. The Company is currently evaluating the impact that the adoption of ASU 2025-06 may have on its consolidated financial statements. In September 2025, the FASB issued ASU No. 2025-07, Derivatives Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue Contract (“ASU 2025-07”). The guidance in ASU 2025-07 expands the scope exceptions within ASC Topic 815, Derivatives and Hedging, to include certain nonexchange-traded contracts with underlyings that are based on operations or activities specific to one of the parties to the contract, including research and development funding arrangements. The standard is effective for annual fiscal years beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2026, with early adoption permitted. Entities should apply the amendments either prospectively for contracts entered into on or after the date of adoption or on a modified retrospective basis through a cumulative-effect adjustment to the opening balance of retained earnings for contracts that exist as of the beginning of the annual reporting period of adoption. The Company is currently evaluating the impact that the adoption of ASU 2025-07 may have on its consolidated financial statements. In December 2025, the FASB issued ASU No. 2025-11, Narrow-Scope Improvements (“ASU 2025-11”). The guidance in ASU 2025-11 amends ASC Topic 270, Interim Reporting, to provide clarity on the current interim reporting requirements as well as requires entities to disclose events since the end of the last annual reporting period that have a material impact on the entity through the addition of the disclosure principle. The standard is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted. Upon adoption, ASU 2025-11 may be applied prospectively or retrospectively. The Company is currently evaluating the impact that the adoption of ASU 2025-11 may have on its consolidated financial statements. In December 2025, the FASB issued ASU No. 2025-12, Codification Improvements (“ASU 2025-12”). The guidance in ASU 2025-12 provides incremental improvements to accounting standards for a broad range of topics. The standard is effective for annual fiscal years beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2026, with early adoption permitted. Upon adoption, ASU 2025-12 may be applied prospectively or retrospectively on an issue-by-issue basis. The Company is currently evaluating the impact that the adoption of ASU 2025-12 may have on its consolidated financial statements. Other recent accounting pronouncements issued, but not yet effective, are not expected to be applicable to the Company or have a material effect on the consolidated financial statements upon future adoption.
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Fair Value of Financial Instruments (Tables) |
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Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Schedule of assets and liabilities measured at fair value on a recurring basis |
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Leases (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Schedule of components of lease cost and supplemental cash flow information |
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| Schedule of future minimum lease payments under non-cancelable operating leases |
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Property and Equipment (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Schedule of property and equipment |
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Accrued Expenses and Other Current Liabilities (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Schedule of accrued expenses and other current liabilities |
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Debt (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Table Text Blocks | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of outstanding convertible senior notes |
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| Secured Debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Schedule of interest expense |
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| Convertible Senior Notes | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Schedule of interest expense |
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Employee Stock Benefit Plans (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Summary of expense recognized for share-based compensation arrangements |
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| Share-based compensation expense reflected in the condensed consolidated statements of operations |
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| Schedule of weighted-average assumptions used to estimate the fair value of Relative TSR PSUs and Absolute TSR PSUs |
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| Summary of restricted stock activity |
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| Summary of stock option activity |
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| Schedule of unrecognized share-based compensation expense, net of estimated forfeitures by type of awards and weighted-average period |
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| Time-based Restricted Stock Units | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Summary of RSU activity |
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| Performance-based Restricted Stock Units | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Summary of RSU activity |
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Income Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Schedule of the components of income before income taxes |
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| Schedule of the components of the provision for (benefit from) income taxes |
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| Reconciliation of income taxes from continuing operations computed using U.S. federal statutory rate to that reflected in operations |
(1) State taxes in California, Colorado, Florda, Illinois, Massachusetts, New Jersey, New York, New York City and Pennsylvania comprised the majority of the tax effect in this category.
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| Schedule of components of deferred tax assets and liabilities |
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| Summary of changes in the unrecognized tax benefits |
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| Schedule of income tax payments (net of refunds received) |
* The amount of income taxes paid during the year does not meet the 5% disaggregation threshold.
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Workforce Reduction and Restructuring (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Schedule of accrued liabilities activity recorded in connection with the reductions in workforce and related restructuring activities |
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Selected Quarterly Financial Data (Unaudited) (Tables) |
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Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Selected Quarterly Financial Data (Unaudited) |
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Summary of Significant Accounting Policies - Segment Information (Details) - segment |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Segment information | ||
| Number of reportable segments | 1 | 1 |
Summary of Significant Accounting Policies - Cash and Cash Equivalents (Details) - USD ($) $ in Millions |
Dec. 31, 2025 |
Dec. 31, 2024 |
|---|---|---|
| Cash and Cash Equivalents | ||
| Cash Equivalent included in cash and cash equivalent | $ 184.3 | $ 55.0 |
Summary of Significant Accounting Policies - Accounts Receivable (Details) - USD ($) $ in Thousands |
Dec. 31, 2025 |
Dec. 31, 2024 |
|---|---|---|
| Accounts Receivable | ||
| Allowance for credit losses | $ 0 | $ 0 |
Summary of Significant Accounting Policies - Concentrations of Credit Risk (Details) - AbbVie Plc |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Accounts receivable | Credit Concentration Risk | ||
| Concentrations | ||
| Concentration risk percentage (as a percent) | 99.00% | 99.00% |
| Revenue from Contract with Customer Benchmark | Customer Concentration Risk | ||
| Concentrations | ||
| Concentration risk percentage (as a percent) | 100.00% | 99.00% |
Summary of Significant Accounting Policies - Property and Equipment (Details) |
Dec. 31, 2025 |
|---|---|
| Laboratory equipment | |
| Property and Equipment | |
| Estimated useful life | 5 years |
| Computer and office equipment | |
| Property and Equipment | |
| Estimated useful life | 3 years |
| Furniture and fixtures | |
| Property and Equipment | |
| Estimated useful life | 7 years |
| Software | |
| Property and Equipment | |
| Estimated useful life | 3 years |
Summary of Significant Accounting Policies - Intangible Assets (Details) |
Dec. 31, 2025 |
|---|---|
| Assembled Workforce | |
| Finite-Lived Intangible Assets, Net | |
| Useful life | 5 years |
Summary of Significant Accounting Policies - Derivative Assets and Liabilities (Details) - Convertible Senior Notes |
Aug. 31, 2019 |
Aug. 12, 2019 |
|---|---|---|
| Convertible Senior Notes, 0.75 Percent, Due 2024 [Member] | ||
| Debt | ||
| Stated interest rate (as a percent) | 0.75% | 0.75% |
| Convertible Senior Notes, 1.50 Percent, Due 2026 [Member] | ||
| Debt | ||
| Stated interest rate (as a percent) | 1.50% |
Summary of Significant Accounting Policies - Revenue Recognition (Details) |
12 Months Ended |
|---|---|
Dec. 31, 2025 | |
| U.S. | AbbVie Plc | |
| Collaboration agreements | |
| Percentage of the pre-tax net profit or loss (as a percent) | 50.00% |
Summary of Significant Accounting Policies - New Accounting Pronouncements (Details) |
12 Months Ended |
|---|---|
Dec. 31, 2025 | |
| Accounting Standards Update 2023-09 | |
| New Accounting Pronouncements | |
| Change in Accounting Principle, Accounting Standards Update, Adopted | true |
| Change in Accounting Principle, Accounting Standards Update, Transition Option Elected | us-gaap:AccountingStandardsUpdate202309ProspectiveMember |
| Accounting Standards Update 2024-03 | |
| New Accounting Pronouncements | |
| Change in Accounting Principle, Accounting Standards Update, Adopted | false |
| Accounting Standards Update 2024-04 | |
| New Accounting Pronouncements | |
| Change in Accounting Principle, Accounting Standards Update, Adopted | false |
Collaboration, License, and Other Agreements - Accounts Receivable (Details) - USD ($) $ in Millions |
Dec. 31, 2025 |
Dec. 31, 2024 |
|---|---|---|
| Accounts receivable, net | ||
| Accounts receivable, net | $ 46.7 | $ 81.9 |
| Accounts receivable, net of accounts payable | 46.2 | 81.3 |
| AbbVie Plc | ||
| Accounts receivable, net | ||
| Accounts payable | $ 2.7 | $ 3.1 |
Collaboration, License, and Other Agreements - North America - Collaborative Arrangements Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2025 |
Sep. 30, 2025 |
Jun. 30, 2025 |
Mar. 31, 2025 |
Dec. 31, 2024 |
Sep. 30, 2024 |
Jun. 30, 2024 |
Mar. 31, 2024 |
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Revenues: | ||||||||||
| Revenue | $ 47,709 | $ 122,060 | $ 85,239 | $ 41,143 | $ 90,545 | $ 91,592 | $ 94,396 | $ 74,877 | $ 296,151 | $ 351,410 |
| Collaborative arrangements revenue | ||||||||||
| Revenues: | ||||||||||
| Revenue | 296,151 | 351,410 | ||||||||
| AbbVie Plc | North America | Collaborative arrangements revenue | ||||||||||
| Revenues: | ||||||||||
| Revenue | 292,356 | 343,154 | ||||||||
| AbbVie Plc | North America | Collaborative arrangement, collaboration and license agreements | ||||||||||
| Revenues: | ||||||||||
| Revenue | 292,356 | 343,154 | ||||||||
| AbbVie Plc | North America | Collaborative arrangements, LINZESS | ||||||||||
| Revenues: | ||||||||||
| Revenue | 289,317 | 340,394 | ||||||||
| AbbVie Plc | North America | Royalty | ||||||||||
| Revenues: | ||||||||||
| Revenue | $ 3,039 | $ 2,760 | ||||||||
Collaboration, License, and Other Agreements - North America - Commercial Efforts (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2025 |
Sep. 30, 2025 |
Jun. 30, 2025 |
Mar. 31, 2025 |
Dec. 31, 2024 |
Sep. 30, 2024 |
Jun. 30, 2024 |
Mar. 31, 2024 |
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Collaboration, License, Promotion and Other Commercial Agreements | ||||||||||
| Revenue | $ 47,709 | $ 122,060 | $ 85,239 | $ 41,143 | $ 90,545 | $ 91,592 | $ 94,396 | $ 74,877 | $ 296,151 | $ 351,410 |
| Selling, general and administrative | 82,256 | 144,272 | ||||||||
| Collaborative arrangements revenue | ||||||||||
| Collaboration, License, Promotion and Other Commercial Agreements | ||||||||||
| Revenue | 296,151 | 351,410 | ||||||||
| Collaborative arrangements, LINZESS | AbbVie Plc | U.S. | ||||||||||
| Collaboration, License, Promotion and Other Commercial Agreements | ||||||||||
| Selling, general and administrative | $ 4,400 | $ 39,300 | ||||||||
Collaboration, License, and Other Agreements - North America - Royalty Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2025 |
Sep. 30, 2025 |
Jun. 30, 2025 |
Mar. 31, 2025 |
Dec. 31, 2024 |
Sep. 30, 2024 |
Jun. 30, 2024 |
Mar. 31, 2024 |
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Revenues: | ||||||||||
| Revenue | $ 47,709 | $ 122,060 | $ 85,239 | $ 41,143 | $ 90,545 | $ 91,592 | $ 94,396 | $ 74,877 | $ 296,151 | $ 351,410 |
| Collaborative arrangements revenue | ||||||||||
| Revenues: | ||||||||||
| Revenue | 296,151 | 351,410 | ||||||||
| Collaborative arrangements revenue | North America | AbbVie Plc | ||||||||||
| Revenues: | ||||||||||
| Revenue | 292,356 | 343,154 | ||||||||
| Collaborative arrangement, collaboration and license agreements | North America | AbbVie Plc | ||||||||||
| Revenues: | ||||||||||
| Revenue | 292,356 | 343,154 | ||||||||
| Royalty | North America | AbbVie Plc | ||||||||||
| Revenues: | ||||||||||
| Revenue | 3,039 | 2,760 | ||||||||
| Royalty | Canada and Mexico | AbbVie Plc | ||||||||||
| Revenues: | ||||||||||
| Revenue | $ 3,000 | $ 2,800 | ||||||||
Collaboration, License, and Other Agreements - Japan (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2025 |
Sep. 30, 2025 |
Jun. 30, 2025 |
Mar. 31, 2025 |
Dec. 31, 2024 |
Sep. 30, 2024 |
Jun. 30, 2024 |
Mar. 31, 2024 |
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Collaboration, License, Promotion and Other Commercial Agreements | ||||||||||
| Revenue | $ 47,709 | $ 122,060 | $ 85,239 | $ 41,143 | $ 90,545 | $ 91,592 | $ 94,396 | $ 74,877 | $ 296,151 | $ 351,410 |
| Collaborative arrangements revenue | ||||||||||
| Collaboration, License, Promotion and Other Commercial Agreements | ||||||||||
| Revenue | 296,151 | 351,410 | ||||||||
| Collaborative arrangement, collaboration and license agreements | Astellas Pharma Inc. | ||||||||||
| Collaboration, License, Promotion and Other Commercial Agreements | ||||||||||
| Revenue | 1,685 | 1,673 | ||||||||
| Royalty | Astellas Pharma Inc., 2009 License Agreement, Amended 2019 | ||||||||||
| Collaboration, License, Promotion and Other Commercial Agreements | ||||||||||
| Revenue | $ 1,700 | $ 1,700 | ||||||||
Collaboration, License, and Other Agreements - Litigation (Details) - USD ($) $ in Thousands |
1 Months Ended | 12 Months Ended | |
|---|---|---|---|
Dec. 18, 2025 |
Dec. 31, 2025 |
Dec. 31, 2025 |
|
| Litigation Settlement | |||
| Accrued litigation settlement | $ 5,000 | $ 5,000 | |
| Ferring International Center S.A. Complaint Against VectivBio AG, Ferring Settlement Agreement with Entity | |||
| Loss Contingency, Settlement | |||
| Loss contingency, settlement agreement, date | Dec. 18, 2025 | ||
| Litigation Settlement | |||
| Litigation settlement, amount awarded to other party | $ 12,500 | ||
| Payments for legal settlements | 7,500 | ||
| Estimated litigation liability | 5,000 | 5,000 | |
| Accrued litigation settlement | $ 5,000 | 5,000 | |
| Gain (Loss) from Litigation Settlement | |||
| Litigation settlement, loss, recorded in selling, general, and administrative expense | $ 12,500 |
Collaboration, License, and Other Agreements - Other Collaboration and License Agreements (Details) - USD ($) $ in Thousands |
1 Months Ended | 3 Months Ended | 12 Months Ended | ||
|---|---|---|---|---|---|
Apr. 30, 2023 |
Jun. 30, 2023 |
Dec. 31, 2025 |
Dec. 31, 2024 |
Nov. 30, 2021 |
|
| Collaboration, License, Promotion and Other Commercial Agreements | |||||
| Research and development expense | $ 95,136 | $ 111,421 | |||
| COUR Pharmaceuticals Development Company, Inc. | |||||
| Collaboration, License, Promotion and Other Commercial Agreements | |||||
| Collaborative arrangement, option to acquire license, exercise price, payable | $ 35,000 | ||||
| Collaborative arrangement, upfront payment | $ 6,000 | ||||
| Collaborative arrangement, right to apply credit against future amounts due | $ 6,600 | ||||
| Research and development expense | $ 6,000 | ||||
Fair Value of Financial Instruments - General Information (Details) |
Dec. 31, 2025 |
|---|---|
| Fair Value of Financial Instruments | |
| Threshold percentage of collateralized value (as a percent) | 102.00% |
Fair Value of Financial Instruments - Measured on Recurring Basis (Details) - Recurring basis - USD ($) $ in Thousands |
Dec. 31, 2025 |
Dec. 31, 2024 |
|---|---|---|
| Assets: | ||
| Total assets measured at fair value | $ 184,266 | $ 54,982 |
| Money market funds | ||
| Assets: | ||
| Cash and cash equivalents | 164,907 | 36,010 |
| U.S. Treasury securities | ||
| Assets: | ||
| Cash and cash equivalents | 11,479 | 11,044 |
| Commercial paper | ||
| Assets: | ||
| Cash and cash equivalents | 7,880 | 7,928 |
| Fair Value, Inputs, Level 1 | ||
| Assets: | ||
| Total assets measured at fair value | 164,907 | 36,010 |
| Fair Value, Inputs, Level 1 | Money market funds | ||
| Assets: | ||
| Cash and cash equivalents | 164,907 | 36,010 |
| Fair Value, Inputs, Level 2 | ||
| Assets: | ||
| Total assets measured at fair value | 19,359 | 18,972 |
| Fair Value, Inputs, Level 2 | U.S. Treasury securities | ||
| Assets: | ||
| Cash and cash equivalents | 11,479 | 11,044 |
| Fair Value, Inputs, Level 2 | Commercial paper | ||
| Assets: | ||
| Cash and cash equivalents | $ 7,880 | $ 7,928 |
Fair Value of Financial Instruments - Convertible Senior Notes (Details) - Convertible Senior Notes - USD ($) $ in Thousands |
Dec. 31, 2025 |
Dec. 31, 2024 |
Aug. 31, 2019 |
|---|---|---|---|
| Fair Value Disclosures | |||
| Debt instrument, face amount | $ 200,000 | $ 200,000 | |
| 1.50% Convertible Senior Notes due 2026 | |||
| Fair Value Disclosures | |||
| Debt instrument, face amount | $ 200,000 | ||
| 1.50% Convertible Senior Notes due 2026 | Fair Value, Inputs, Level 2 | |||
| Fair Value Disclosures | |||
| Estimated fair value | $ 189,300 | $ 186,600 |
Fair Value of Financial Instruments - Capped Calls (Details) - Capped Calls with Respect to 2024 Convertible Notes and 2026 Convertible Notes |
1 Months Ended |
|---|---|
|
Aug. 31, 2019
$ / shares
$ / item
shares
| |
| Capped Calls | |
| Number of shares covered by capped calls (in shares) | shares | 14,933,740 |
| Strike price (in dollars per share) | $ / shares | $ 13.39 |
| Cap price | $ / item | 17.05 |
Leases - Letters of Credit (Details) - USD ($) $ in Millions |
Dec. 31, 2025 |
Dec. 31, 2024 |
|---|---|---|
| Summer Street Lease and Vehicle Lease | ||
| Leases | ||
| Letters of credit outstanding, amount | $ 0.6 | $ 0.6 |
Leases - Lease Cost (Details) - USD ($) $ in Thousands |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Lease Cost | ||
| Operating lease cost | $ 2,507 | $ 2,507 |
| Short-term lease cost | 354 | 1,520 |
| Total lease cost | $ 2,861 | $ 4,027 |
Leases - Supplemental Information (Details) - USD ($) $ in Thousands |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Operating Leases | ||
| Cash paid for amounts included in the measurement of lease liabilities | $ 3,189 | $ 3,126 |
| Weighted-average remaining lease term of operating leases | 4 years 4 months 24 days | 5 years 4 months 24 days |
| Weighted-average discount rate of operating leases (as a percent) | 5.80% | 5.80% |
Leases - Summer Street Lease (Details) ft² in Thousands, $ in Thousands |
1 Months Ended | 12 Months Ended | ||
|---|---|---|---|---|
|
Jun. 30, 2019
ft²
|
Dec. 31, 2025
USD ($)
|
Dec. 31, 2024
USD ($)
|
Dec. 31, 2023
USD ($)
|
|
| Operating Leases | ||||
| Weighted-average discount rate of operating leases (as a percent) | 5.80% | 5.80% | ||
| Operating lease right-of-use assets | $ 9,340 | $ 11,028 | ||
| Operating lease liability | 13,122 | |||
| Operating lease cost | 2,507 | 2,507 | ||
| Summer Street Lease | ||||
| Operating Leases | ||||
| Rentable area leased (in square feet) | ft² | 39 | |||
| Annual rent escalation (as a percent) | 2.00% | |||
| Option to extend the term of the lease | true | |||
| Operating lease, renewal term | 5 years | |||
| Weighted-average discount rate of operating leases (as a percent) | 5.80% | |||
| Operating lease right-of-use assets | 9,300 | 11,000 | ||
| Operating lease liability | 13,100 | 15,500 | ||
| Operating lease cost | $ 2,500 | $ 2,500 | $ 2,500 | |
Leases - Future Minimum Lease Payments (Details) $ in Thousands |
Dec. 31, 2025
USD ($)
|
|---|---|
| Future Minimum Lease Payments | |
| 2026 | $ 3,252 |
| 2027 | 3,317 |
| 2028 | 3,384 |
| 2029 | 3,451 |
| 2030 | 1,450 |
| Total future minimum lease payments | $ 14,854 |
Leases - Operating Lease Obligations (Details) - USD ($) $ in Thousands |
Dec. 31, 2025 |
Dec. 31, 2024 |
|---|---|---|
| Operating lease obligations | ||
| Total future minimum lease payments | $ 14,854 | |
| Less: present value adjustment | (1,732) | |
| Operating lease liabilities | 13,122 | |
| Less: current portion of operating lease liabilities | (3,252) | $ (3,189) |
| Operating lease liabilities, net of current portion | $ 9,870 | $ 12,304 |
Property and Equipment - Tabular Disclosure (Details) - USD ($) $ in Thousands |
Dec. 31, 2025 |
Dec. 31, 2024 |
|---|---|---|
| Property and Equipment | ||
| Property and equipment, gross | $ 11,413 | $ 12,860 |
| Less accumulated depreciation and amortization | (8,005) | (8,365) |
| Property and equipment, net | 3,408 | 4,495 |
| Software | ||
| Property and Equipment | ||
| Property and equipment, gross | 214 | 1,567 |
| Leasehold improvements | ||
| Property and Equipment | ||
| Property and equipment, gross | 7,443 | 7,407 |
| Furniture and fixtures | ||
| Property and Equipment | ||
| Property and equipment, gross | 1,759 | 1,732 |
| Computer and office equipment | ||
| Property and Equipment | ||
| Property and equipment, gross | $ 1,997 | $ 2,154 |
Property and Equipment - Depreciation Expense (Details) - USD ($) $ in Millions |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Property and Equipment | ||
| Depreciation and amortization | $ 1.1 | $ 1.2 |
Accrued Expenses and Other Current Liabilities - Tabular Disclosure (Details) - USD ($) $ in Thousands |
Dec. 31, 2025 |
Dec. 31, 2024 |
|---|---|---|
| Accrued Expenses | ||
| Accrued compensation and benefits | $ 11,590 | $ 14,547 |
| Accrued litigation settlement | 5,000 | |
| Accrued interest | 4,437 | 4,771 |
| Deferred revenue | 1,107 | 2,032 |
| Accrued taxes | 927 | 521 |
| Accrued restructuring liabilities | 771 | 560 |
| Other | 9,407 | 4,418 |
| Total accrued expenses and other current liabilities | $ 33,239 | $ 26,849 |
Accrued Expenses and Other Current Liabilities - Additional Information (Details) - USD ($) $ in Millions |
Dec. 31, 2025 |
Dec. 31, 2024 |
|---|---|---|
| Accrued Expenses | ||
| Other accrued liabilities, uninvoiced vendor liabilities | $ 9.4 | $ 4.3 |
Debt - Interest Expense (Details) - USD ($) $ in Thousands |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Convertible Senior Notes | ||
| Interest Expense | ||
| Contractual interest expense | $ 3,000 | $ 3,688 |
| Amortization of debt issuance costs | 692 | 1,119 |
| Total interest expense | 3,692 | 4,807 |
| Secured Debt | ||
| Interest Expense | ||
| Contractual interest expense | 27,341 | 27,643 |
| Amortization of debt issuance costs | 976 | 785 |
| Other financing costs | 737 | 50 |
| Total interest expense | $ 29,054 | $ 28,478 |
Debt - Convertible Senior Notes - Balances (Details) - Convertible Senior Notes - USD ($) $ in Thousands |
Dec. 31, 2025 |
Dec. 31, 2024 |
|---|---|---|
| Principal: | ||
| Debt instrument, face amount | $ 200,000 | $ 200,000 |
| Less: unamortized debt issuance costs | (320) | (1,012) |
| Net carrying amount | $ 199,680 | $ 198,988 |
Debt - Convertible Senior Notes Due 2022, Convertible Senior Notes Due 2024 and Convertible Senior Notes Due 2026 (Details) - 1.50% Convertible Senior Notes due 2026 - Convertible Senior Notes - USD ($) $ in Millions |
1 Months Ended | |
|---|---|---|
Aug. 31, 2019 |
Dec. 31, 2025 |
|
| Debt | ||
| Debt issuance costs incurred | $ 4.5 | |
| Effective interest rate on liability components (as a percent) | 1.90% |
Debt - Capped Calls with Respect to 2024 Convertible Notes and 2026 Convertible Notes (Details) - Capped Calls with Respect to 2024 Convertible Notes and 2026 Convertible Notes $ / shares in Units, $ in Millions |
1 Months Ended |
|---|---|
|
Aug. 31, 2019
USD ($)
$ / shares
$ / item
shares
| |
| Capped Calls | |
| Payment made to enter into Capped Calls | $ | $ 25.2 |
| Payment made to enter into Capped Calls, premium | $ | 25.0 |
| Payment made to enter into Capped Calls, transaction cost | $ | $ 0.2 |
| Strike price (in dollars per share) | $ / shares | $ 13.39 |
| Cap price | $ / item | 17.05 |
| Number of shares covered by capped calls (in shares) | shares | 14,933,740 |
| 0.75% Convertible Senior Notes due 2024 | |
| Capped Calls | |
| Number of shares covered by capped calls (in shares) | shares | 14,933,740 |
| 1.50% Convertible Senior Notes due 2026 | |
| Capped Calls | |
| Number of shares covered by capped calls (in shares) | shares | 14,933,740 |
Commitments and Contingencies - Other Funding Commitments (Details) $ in Millions |
Dec. 31, 2025
USD ($)
|
|---|---|
| Minimum | |
| Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity | |
| 2026 | $ 1.0 |
| 2027 | 1.0 |
| 2028 | 1.0 |
| 2029 | 1.0 |
| 2030 | 1.0 |
| Maximum | |
| Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity | |
| 2026 | 3.9 |
| 2027 | 3.9 |
| 2028 | 3.9 |
| 2029 | 3.9 |
| 2030 | $ 3.9 |
Commitments and Contingencies - Guarantees (Details) - USD ($) $ in Thousands |
Dec. 31, 2025 |
Dec. 31, 2024 |
|---|---|---|
| Indemnification Agreement | ||
| Guarantees | ||
| Liabilities recorded | $ 0 | $ 0 |
Stockholders' Equity (Details) |
12 Months Ended |
|---|---|
|
Dec. 31, 2025
Vote
| |
| Common Stock | |
| Number of voting rights per share | 1 |
| Description of the number of voting rights per share | Class A Common Stock is entitled to one vote per share. |
Employee Stock Benefit Plans - Summary of Expense Recognized by Share-based Compensation Arrangement (Details) - USD ($) $ in Thousands |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Employee Stock Benefit Plans | ||
| Share-based compensation expense | $ 17,250 | $ 29,850 |
| Time-based Restricted Stock Units | ||
| Employee Stock Benefit Plans | ||
| Share-based compensation expense | 13,486 | 21,425 |
| Performance-based Restricted Stock Units | ||
| Employee Stock Benefit Plans | ||
| Share-based compensation expense | 2,767 | 6,422 |
| Restricted Stock | ||
| Employee Stock Benefit Plans | ||
| Share-based compensation expense | 654 | 1,492 |
| Employee Stock | ||
| Employee Stock Benefit Plans | ||
| Share-based compensation expense | 184 | 451 |
| Employee Stock Option | ||
| Employee Stock Benefit Plans | ||
| Share-based compensation expense | 99 | |
| Stock Awards | ||
| Employee Stock Benefit Plans | ||
| Share-based compensation expense | $ 60 | $ 60 |
Employee Stock Benefit Plans - Share-based Compensation Expense (Details) - USD ($) $ in Thousands |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Employee Stock Benefit Plans | ||
| Total share-based compensation expense included in operating expenses | $ 17,250 | $ 29,850 |
| Income tax expense | 2,519 | 3,414 |
| Total share-based compensation expense, net of tax | 14,731 | 26,436 |
| Research and Development Expense | ||
| Employee Stock Benefit Plans | ||
| Total share-based compensation expense included in operating expenses | 5,447 | 7,552 |
| Selling, General and Administrative Expenses | ||
| Employee Stock Benefit Plans | ||
| Total share-based compensation expense included in operating expenses | 11,704 | $ 22,298 |
| Restructuring Charges | ||
| Employee Stock Benefit Plans | ||
| Total share-based compensation expense included in operating expenses | $ 99 | |
Employee Stock Benefit Plans - Restricted Stock Awards - General Information (Details) |
12 Months Ended |
|---|---|
Dec. 31, 2025 | |
| Restricted Stock | Share-Based Payment Arrangement, Nonemployee | |
| Stock Benefit Plans | |
| Vesting period | 3 years |
Employee Stock Benefit Plans - Restricted Stock Awards - Activity (Details) - Restricted Stock - $ / shares |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Number of Shares | ||
| Outstanding at the beginning of the period (in shares) | 194,488 | |
| Granted (in shares) | 360,000 | |
| Vested and released (in shares) | (194,488) | |
| Forfeited (in shares) | (45,000) | |
| Outstanding at the end of the period (in shares) | 315,000 | 194,488 |
| Weighted-Average Grant Date Fair Value | ||
| Outstanding at the beginning of the period (in dollars per share) | $ 5.7 | |
| Granted (in dollars per share) | 0.8 | $ 5.7 |
| Vested and released (in dollars per share) | 5.7 | |
| Forfeited (in dollars per share) | 0.8 | |
| Outstanding at the end of the period (in dollars per share) | $ 0.8 | $ 5.7 |
Employee Stock Benefit Plans - Restricted Stock Awards - Additional Information (Details) - Restricted Stock - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Weighted-Average Grant Date Fair Value | ||
| Weighted-average grant date fair value (in dollars per share) | $ 0.8 | $ 5.7 |
| Employee Stock Benefit Plans | ||
| Vested in period, total fair value | $ 0.1 | $ 1.0 |
Employee Stock Benefit Plans - Restricted Stock Units (Details) |
12 Months Ended |
|---|---|
|
Dec. 31, 2023
shares
| |
| Restricted Stock Units (RSUs) | |
| Stock Benefit Plans | |
| Right to number of shares of common stock per RSU (in shares) | 1 |
Employee Stock Benefit Plans - Time-based RSUs - Vesting (Details) - Time-based Restricted Stock Units |
12 Months Ended |
|---|---|
Dec. 31, 2025 | |
| Minimum | |
| Stock Benefit Plans | |
| Vesting period | 2 years |
| Maximum | |
| Stock Benefit Plans | |
| Vesting period | 4 years |
Employee Stock Benefit Plans - Time-based RSUs - Activity (Details) - Time-based Restricted Stock Units - $ / shares |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Number of Shares | ||
| Outstanding at the beginning of the period (in shares) | 5,351,507 | |
| Granted (in shares) | 4,017,510 | |
| Vested and released (in shares) | (1,878,766) | |
| Forfeited (in shares) | (2,053,525) | |
| Outstanding at the end of the period (in shares) | 5,436,726 | 5,351,507 |
| Weighted-Average Grant Date Fair Value | ||
| Outstanding at the beginning of the period (in dollars per share) | $ 10.89 | |
| Granted (in dollars per share) | 1.65 | $ 11.53 |
| Vested and released (in dollars per share) | 10.47 | |
| Forfeited (in dollars per share) | 8.36 | |
| Outstanding at the end of the period (in dollars per share) | $ 4.87 | $ 10.89 |
Employee Stock Benefit Plans - Time-based RSUs - Additional Information (Details) - Time-based Restricted Stock Units - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Weighted-Average Grant Date Fair Value | ||
| Weighted-average grant date fair value (in dollars per share) | $ 1.65 | $ 11.53 |
| Employee Stock Benefit Plans | ||
| Vested in period, total fair value | $ 3.6 | $ 22.0 |
Employee Stock Benefit Plans - Performance-based RSUs - Vesting (Details) |
12 Months Ended |
|---|---|
Dec. 31, 2025 | |
| Performance-based Restricted Stock Units | |
| Stock Benefit Plans | |
| Vesting period | 3 years |
Employee Stock Benefit Plans - Performance-based RSUs - Assumptions (Details) - $ / shares |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Performance-based Restricted Stock Units, Relative Total Shareholder Return | ||
| Weighted-average assumptions used to estimate fair value | ||
| Fair value of common stock (in dollars per share) | $ 0.76 | $ 12.41 |
| Expected volatility (as a percent) | 74.10% | 38.00% |
| Expected term | 2 years 9 months 18 days | 3 years |
| Risk-free interest rate (as a percent) | 3.80% | 4.20% |
| Expected dividend yield (as a percent) | 0.00% | 0.00% |
| Performance-based Restricted Stock Units, Absolute Total Shareholder Return | ||
| Weighted-average assumptions used to estimate fair value | ||
| Fair value of common stock (in dollars per share) | $ 12.41 | |
| Expected volatility (as a percent) | 38.00% | |
| Expected term | 3 years | |
| Risk-free interest rate (as a percent) | 4.20% | |
| Expected dividend yield (as a percent) | 0.00% | |
Employee Stock Benefit Plans - Performance-based RSUs - Activity (Details) - Performance-based Restricted Stock Units - $ / shares |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Number of Shares | ||
| Outstanding at the beginning of the period (in shares) | 1,108,506 | |
| Granted (in shares) | 1,017,777 | |
| Vested and released (in shares) | (260,063) | |
| Forfeited (in shares) | (228,622) | |
| Outstanding at the end of the period (in shares) | 1,637,598 | 1,108,506 |
| Weighted-Average Grant Date Fair Value | ||
| Outstanding at the beginning of the period (in dollars per share) | $ 13.91 | |
| Granted (in dollars per share) | 0.17 | $ 14.91 |
| Vested and released (in dollars per share) | 13.27 | |
| Forfeited (in dollars per share) | 10.4 | |
| Outstanding at the end of the period (in dollars per share) | $ 5.15 | $ 13.91 |
Employee Stock Benefit Plans - Performance-based RSUs - Additional Information (Details) - Performance-based Restricted Stock Units - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Employee Stock Benefit Plans | ||
| Vested in period, total fair value | $ 1.0 | $ 9.8 |
| Weighted-Average Grant Date Fair Value | ||
| Weighted-average grant date fair value (in dollars per share) | $ 0.17 | $ 14.91 |
Employee Stock Benefit Plans - Stock Options - General Information (Details) |
12 Months Ended |
|---|---|
Dec. 31, 2025 | |
| Stock Benefit Plans | |
| Expiration period | 10 years |
| Employee Stock Option | |
| Stock Benefit Plans | |
| Vesting period | 4 years |
Employee Stock Benefit Plans - Stock Options - Total Intrinsic Value (Details) $ in Millions |
12 Months Ended |
|---|---|
|
Dec. 31, 2024
USD ($)
| |
| Stock options | |
| Total intrinsic value of options exercised | $ 2.0 |
Employee Stock Benefit Plans - Unrecognized Share-based Compensation (Details) $ in Thousands |
12 Months Ended |
|---|---|
|
Dec. 31, 2025
USD ($)
| |
| Restricted Stock | |
| Unrecognized share-based compensation | |
| Unrecognized expense, net of estimated forfeitures, other than options | $ 111 |
| Weighted-average remaining recognition period | 5 months 8 days |
| Time-based Restricted Stock Units | |
| Unrecognized share-based compensation | |
| Unrecognized expense, net of estimated forfeitures, other than options | $ 12,891 |
| Weighted-average remaining recognition period | 2 years 5 months 1 day |
| Performance-based Restricted Stock Units | |
| Unrecognized share-based compensation | |
| Unrecognized expense, net of estimated forfeitures, other than options | $ 925 |
| Weighted-average remaining recognition period | 1 year 7 months 9 days |
Income Taxes - Components of Income before Income Taxes (Details) - USD ($) $ in Thousands |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Income before income taxes | ||
| United States | $ 161,155 | $ 167,091 |
| Foreign | (91,130) | (101,893) |
| Income before income taxes | $ 70,025 | $ 65,198 |
Income Taxes - Provision for (Benefit from) Income Taxes - Tabular Disclosure (Details) - USD ($) $ in Thousands |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Current taxes: | ||
| State | $ 4,374 | $ (4,487) |
| Foreign | 833 | 754 |
| Total current taxes | 5,207 | (3,733) |
| Deferred taxes: | ||
| Federal | 39,071 | 32,584 |
| State | 1,730 | 35,467 |
| Total deferred taxes | 40,801 | 68,051 |
| Income tax expense | $ 46,008 | $ 64,318 |
Income Taxes - Provision for (Benefit from) Income Taxes - Additional Information (Details) - USD ($) $ in Thousands |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Income Taxes | ||
| Income tax (benefit) expense | $ 46,008 | $ 64,318 |
| Income tax (benefit) expense, non-cash expense | 40,900 | 57,800 |
| Income tax (benefit) expense, cash expense | $ 5,100 | $ 6,500 |
Income Taxes - Federal Statutory Rate (Details) |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Effective Income Tax Rate Reconciliation, Percent | ||
| Income tax expense using U.S. federal statutory rate (as a percent) | 21.00% | 21.00% |
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands |
Dec. 31, 2025 |
Dec. 31, 2024 |
|---|---|---|
| Deferred tax assets: | ||
| Net operating loss carryforwards | $ 155,036 | $ 146,978 |
| Tax credit carryforwards | 56,980 | 58,494 |
| Capitalized research and development | 1,528 | 22,350 |
| Share-based compensation | 5,710 | 9,508 |
| Basis difference on Convertible Notes | 240 | 714 |
| Basis difference on collaboration agreement for North America with AbbVie | 3,787 | 3,585 |
| Accruals and reserves | 2,010 | 3,804 |
| Intangible assets | 3,615 | 3,411 |
| Operating lease liability | 3,255 | 3,892 |
| Other | 588 | 1,452 |
| Total deferred tax assets | 232,749 | 254,188 |
| Deferred tax liabilities: | ||
| Fixed assets | (692) | (898) |
| Operating lease right-of-use assets | (2,317) | (2,777) |
| Total deferred tax liabilities | (3,009) | (3,675) |
| Net deferred tax assets | 229,740 | 250,513 |
| Valuation allowance | (126,307) | (106,279) |
| Net deferred tax asset | $ 103,433 | $ 144,234 |
Income Taxes - Valuation Allowance (Details) - USD ($) $ in Thousands |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Income Taxes | ||
| Valuation allowance | $ 126,307 | $ 106,279 |
| Net deferred tax assets | 229,740 | 250,513 |
| Increase (decrease) in valuation allowance | $ 20,000 | $ 20,600 |
Income Taxes - Net Operating Loss Carryforwards (Details) $ in Millions |
Dec. 31, 2025
USD ($)
|
|---|---|
| U.S. | |
| Net operating loss carryforwards | |
| Net operating loss carryforwards | $ 190.3 |
| Net operating loss carryforwards, subject to expiration | 60.6 |
| Net operating loss carryforwards, indefinite | 129.6 |
| State | |
| Net operating loss carryforwards | |
| Net operating loss carryforwards | 286.5 |
| Foreign Tax Jurisdiction | |
| Net operating loss carryforwards | |
| Net operating loss carryforwards | $ 798.6 |
Income Taxes - Tax Credit Carryforwards (Details) $ in Millions |
Dec. 31, 2025
USD ($)
|
|---|---|
| Tax credit carryforward | |
| Tax credit carryforward | $ 59.7 |
Income Taxes - Unrecognized Income Tax Benefits - Tabular Disclosure (Details) - USD ($) $ in Thousands |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Unrecognized Income Tax Benefits | ||
| Balance at the beginning of the period | $ 11,585 | $ 98,218 |
| Increases based on tax positions related to the current period | 4,359 | 4,093 |
| Decreases for tax positions in prior periods | (4,093) | (90,726) |
| Balance at the end of the period | $ 11,851 | $ 11,585 |
Income Taxes - Unrecognized Income Tax Benefits - Additional Information (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
Dec. 31, 2023 |
|
| Unrecognized Tax Benefits | |||
| Unrecognized tax benefits | $ 11,851 | $ 11,585 | $ 98,218 |
| Amount of unrecognized tax benefits that, if recognized, would affect effective tax rate | 7,800 | ||
| Reserves for uncertain tax positions recorded in other liabilities | 13,100 | 11,800 | |
| Interest and penalties related to uncertain tax positions | 900 | 800 | |
| Unrecognized Tax Benefits | |||
| Accrued interest and penalties related to uncertain tax positions | $ 6,000 | $ 5,100 | |
Income Taxes - Income Tax Payments (Details) - USD ($) $ in Thousands |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| US State and Local | ||
| US state and local | $ 3,330 | |
| Foreign | ||
| Foreign | $ 213 | |
| Income Tax Paid, after Refund Received, Foreign Jurisdiction | country:BE | |
| Total income tax payments (net of refunds received) | $ 3,543 | $ 8,408 |
| California | ||
| US State and Local | ||
| US state and local | 1,642 | |
| Maryland | ||
| US State and Local | ||
| US state and local | 281 | |
| New Jersey | ||
| US State and Local | ||
| US state and local | 206 | |
| Wisconsin | ||
| US State and Local | ||
| US state and local | 218 | |
| Other | ||
| US State and Local | ||
| US state and local | $ 983 | |
Retirement Plans - Defined Benefit Retirement Plans - General Information (Details) |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Defined Benefit Plan, Additional Information | ||
| Defined Benefit Plan, Type | us-gaap:PensionPlansDefinedBenefitMember | us-gaap:PensionPlansDefinedBenefitMember |
| Defined Benefit Plan, Sponsor Location | Switzerland | Switzerland |
Retirement Plans - Defined Benefit Retirement Plans - Net Periodic Benefit Cost (Credit) (Details) - USD ($) $ in Millions |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | ||
| Current service cost | $ 1.0 | $ 1.0 |
| Curtailment due to terminations | $ 2.1 | |
| Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Curtailment Gain (Loss), Statement of Income or Comprehensive Income | Other | |
Retirement Plans - Defined Benefit Retirement Plans - Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax and Reclassification Adjustment, Attributable to Parent | ||
| Defined benefit pension plan | $ 771 | $ 1,053 |
Retirement Plans - Defined Benefit Retirement Plans - Change in Fair Value of Plan Assets (Details) - USD ($) $ in Millions |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Change in Fair Value of Plan Assets | ||
| Contributions paid by employer | $ 0.7 | $ 0.8 |
| Contributions paid by employees | 0.7 | 0.8 |
| Benefits paid/(deposited) | $ 6.8 | $ 18.1 |
Retirement Plans - Defined Benefit Retirement Plans - Future Minimum Payments (Details) $ in Millions |
Dec. 31, 2025
USD ($)
|
|---|---|
| Defined Benefit Plan, Expected Future Benefit Payment | |
| 2031 and thereafter | $ 4.6 |
| Minimum | |
| Defined Benefit Plan, Expected Future Benefit Payment | |
| 2026 | 0.8 |
| 2027 | 0.8 |
| 2028 | 0.8 |
| 2029 | 0.8 |
| 2030 | 0.8 |
| Maximum | |
| Defined Benefit Plan, Expected Future Benefit Payment | |
| 2026 | 1.2 |
| 2027 | 1.2 |
| 2028 | 1.2 |
| 2029 | 1.2 |
| 2030 | $ 1.2 |
Retirement Plans - Defined Benefit Retirement Plans - Funded (Unfunded) Status (Details) - USD ($) $ in Millions |
Dec. 31, 2025 |
Dec. 31, 2024 |
|---|---|---|
| Funded (unfunded) status | ||
| Fair value of plan assets | $ 13.0 | $ 15.7 |
| Fair value of projected benefit obligations | 15.5 | 18.5 |
| Net liability arising from defined benefit obligation | $ 2.5 | $ 2.8 |
Retirement Plans - Defined Benefit Retirement Plans - Assumptions (Details) |
Dec. 31, 2025 |
Dec. 31, 2024 |
|---|---|---|
| Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation | ||
| Discount rate used in determining the projected benefit obligation (as a percent) | 1.30% | 1.00% |
Retirement Plans - Defined Benefit Retirement Plans - Accumulated Benefit Obligation (Details) - USD ($) $ in Millions |
Dec. 31, 2025 |
Dec. 31, 2024 |
|---|---|---|
| Defined Benefit Plan, Additional Information [Abstract] | ||
| Defined benefit plan, accumulated benefit obligation | $ 15.0 | $ 17.9 |
Retirement Plans - Defined Benefit Retirement Plans - Fair Value of Plan Assets (Details) - USD ($) $ in Millions |
Dec. 31, 2025 |
Dec. 31, 2024 |
|---|---|---|
| Allocation of Plan Assets, Amount | ||
| Plan assets | $ 13.0 | $ 15.7 |
| Fair Value, Inputs, Level 3 | ||
| Allocation of Plan Assets, Amount | ||
| Plan assets | $ 1.8 | $ 1.9 |
Workforce Reduction and Restructuring - General Information (Details) $ in Thousands |
1 Months Ended | 12 Months Ended | ||
|---|---|---|---|---|
|
Aug. 31, 2025
position
|
Jan. 31, 2025 |
Dec. 31, 2025
USD ($)
|
Dec. 31, 2024
USD ($)
|
|
| Restructuring Expenses | ||||
| Restructuring, net | $ 20,257 | $ 2,593 | ||
| VectivBio Acquisition-related Workforce Reductions, June 2023 | ||||
| Restructuring Expenses | ||||
| Restructuring, net | 200 | $ 2,600 | ||
| Reduction in Company-wide Workforce, January 2025 | ||||
| Workforce Reduction | ||||
| Restructuring and related cost, number of positions eliminated, period percent (as a percent) | 50.00% | |||
| Restructuring Expenses | ||||
| Restructuring, net | 17,600 | |||
| Reduction in Workforce, August 2025 | ||||
| Workforce Reduction | ||||
| Number of positions eliminated | position | 10 | |||
| Restructuring Expenses | ||||
| Restructuring, net | $ 2,400 | |||
Segment Reporting (Details) - segment |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Segment Reporting | ||
| Number of reportable segments | 1 | 1 |
| Segment Reporting, CODM, Individual Title and Position or Group Name | srt:ChiefExecutiveOfficerMember, srt:ChiefFinancialOfficerMember | srt:ChiefExecutiveOfficerMember, srt:ChiefFinancialOfficerMember |
Selected Quarterly Financial Data (Unaudited) (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, 2024 |
Sep. 30, 2024 |
Jun. 30, 2024 |
Mar. 31, 2024 |
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Selected Quarterly Financial Data | ||||||||||
| Total revenues | $ 47,709 | $ 122,060 | $ 85,239 | $ 41,143 | $ 90,545 | $ 91,592 | $ 94,396 | $ 74,877 | $ 296,151 | $ 351,410 |
| Total cost and expenses | 40,904 | 46,576 | 39,918 | 70,251 | 59,054 | 65,956 | 69,419 | 63,857 | 197,649 | 258,286 |
| Other income (expense), net | (6,350) | (7,464) | (7,499) | (7,164) | (7,496) | (8,267) | (6,101) | (6,062) | (28,477) | (27,926) |
| Net Income (Loss) | (2,276) | 40,080 | 23,599 | (37,386) | 2,256 | 3,646 | (860) | (4,162) | 24,017 | 880 |
| Comprehensive income (loss) | $ (1,622) | $ 40,392 | $ 21,279 | $ (38,015) | $ 5,231 | $ 2,064 | $ (408) | $ (2,053) | $ 22,034 | $ 4,834 |
| Net income (loss) per share - basic (in dollars per share) | $ (0.01) | $ 0.25 | $ 0.15 | $ (0.23) | $ 0.01 | $ 0.02 | $ (0.01) | $ (0.03) | $ 0.15 | $ 0.01 |
| Net income (loss) per share - diluted (in dollars per share) | $ (0.01) | $ 0.23 | $ 0.14 | $ (0.23) | $ 0.01 | $ 0.02 | $ (0.01) | $ (0.03) | $ 0.15 | $ 0.01 |