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Summary of Significant Accounting Policies (Tables) | 6 Months Ended
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Jun. 30, 2022
Accounting Policies [Abstract] |
Schedule of Carrying Value and Fair Value of Assets and Liabilities | The following table shows assets and liabilities that are measured at fair value on a recurring basis and their carrying value (in millions):
| June 30, 2022
|  |  | Fair Value
| Carrying Value |  | Level 1 |  | Level 2 |  | Level 3
Cash and cash equivalents | $ | 416.1 |  |  | $ | 416.1 |  |  | $ | — |  |  | $ | — |
Marketable securities | $ | 148.6 |  |  | $ | 148.6 |  |  | $ | — |  |  | $ | — |
Deferred consideration | $ | 10.8 |  |  | $ | — |  |  | $ | 10.8 |  |  | $ | — |
Contingent consideration liabilities | $ | 55.6 |  |  | $ | — |  |  | $ | — |  |  | $ | 55.6 |
| December 31, 2021
|  |  | Fair Value
| Carrying Value |  | Level 1 |  | Level 2 |  | Level 3
Cash and cash equivalents | $ | 716.8 |  |  | $ | 716.8 |  |  | $ | — |  |  | $ | — |
Marketable securities | $ | 50.0 |  |  | $ | 50.0 |  |  | $ | — |  |  | $ | — |
Deferred consideration | $ | 14.9 |  |  | $ | — |  |  | $ | 14.9 |  |  | $ | — |
Contingent consideration liabilities | $ | 75.7 |  |  | $ | — |  |  | $ | — |  |  | $ | 75.7 |
Summary of Observable Inputs in Valuation of Deferred Consideration | The following observable input was used in the valuation of the deferred consideration as of June 30, 2022:
| Fair Value as of June 30, 2022 (in millions) | Observable Input | Input Value
Deferred consideration | $10.8 | Insmed share price as of June 30, 2022 | $19.72
Summary of Significant Unobservable Inputs Used in the Valuation of the Contingent Consideration Payables | The following significant unobservable inputs were used in the valuation of the contingent consideration liabilities as of June 30, 2022 (in millions):
Contingent Consideration Liabilities | Fair Value as of June 30, 2022 | Valuation Technique | Unobservable Inputs | Values
Development and regulatory milestones | $50.6 | Probability-adjusted | Probabilities of success | 14% - 95%
Priority review voucher milestone | $5.0 | Probability-adjusted discounted cash flow | Probability of success | 13.5%
Discount rate | 10.7%
The following table is a summary of the changes in the fair value of the Company's valuations for the deferred and contingent consideration liabilities for the six months ended June 30, 2022 (in thousands):
|  | December 31, 2021 |  | Additions |  | Change in Fair Value |  | Adjustments |  | June 30, 2022
Deferred consideration |  | $ | 14,931 |  |  | — |  |  | (4,172) |  |  | — |  |  | $ | 10,759 |
Contingent consideration |  | $ | 75,668 |  |  | — |  |  | (20,068) |  |  | — |  |  | $ | 55,600 |
Reconciliation of the Weighted Average Number of Shares Used to Compute Basic and Diluted Net Loss per Share | The following table sets forth the reconciliation of the weighted average number of common shares used to compute basic and diluted net loss per share for the three and six months ended June 30, 2022 and 2021:
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2022 |  | 2021 |  | 2022 |  | 2021
| (in thousands, except per share amounts)
Numerator: |  |  |  |  |  |  |
Net loss | $ | (95,645) |  |  | $ | (117,321) |  |  | $ | (190,266) |  |  | $ | (208,962) |
Denominator: |  |  |  |  |  |  |
Weighted average common shares used in calculation of basic net loss per share: | 119,602 |  |  | 109,580 |  |  | 119,267 |  |  | 106,328 |
Effect of dilutive securities: |  |  |  |  |  |  |
Common stock options | — |  |  | — |  |  | — |  |  | — |
Restricted stock and RSUs | — |  |  | — |  |  | — |  |  | — |
PSUs | — |  |  | — |  |  | — |  |  | — |
Convertible debt securities | — |  |  | — |  |  | — |  |  | — |
Weighted average common shares outstanding used in calculation of diluted net loss per share | 119,602 |  |  | 109,580 |  |  | 119,267 |  |  | 106,328 |
Net loss per share: |  |  |  |  |  |  |
Basic and diluted | $ | (0.80) |  |  | $ | (1.07) |  |  | $ | (1.60) |  |  | $ | (1.97) |
Potentially Dilutive Securities Excluded from Computations of Diluted Weighted Average Common Shares Outstanding | The following potentially dilutive securities have been excluded from the computations of diluted weighted average common shares outstanding as of June 30, 2022 and 2021, respectively, as their effect would have been anti-dilutive (in thousands):
| June 30,
| 2022 |  | 2021
Common stock options | 17,806 |  |  | 14,449 |
Unvested restricted stock and RSUs | 1,619 |  |  | 1,125 |
PSUs | 670 |  |  | — |
Convertible debt securities | 23,438 |  |  | 23,438 |
Schedule of Percentage of Total Gross Product Revenue Represented by the Three Largest Customers | The following table presents the percentage of gross product revenue represented by the Company's three largest customers as of the six months ended June 30, 2022 and 2021.
| June 30, |  |  |  |
2022 |  | 2021 |  |  |  |
Customer A | 36% |  | 25% |  |  |  |
Customer B | 32% |  | 23% |  |  |  |
Customer C | 19% |  | —% |  |  |  |
Revenue from External Customers by Geographic Areas | The following table presents a summary of the Company's product revenues, net, by geographic location for the three and six months ended June 30, 2022 and 2021 (in thousands):
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2022 |  | 2021 |  | 2022 |  | 2021
US | $ | 47,190 |  |  | $ | 41,754 |  |  | $ | 87,972 |  |  | $ | 79,008 |
Japan | 15,849 |  |  | — |  |  | 26,525 |  |  | — |
Europe and rest of world | 2,182 |  |  | 3,612 |  |  | 3,831 |  |  | 6,572 |
Total product revenues, net | $ | 65,221 |  |  | $ | 45,366 |  |  | $ | 118,328 |  |  | $ | 85,580 |

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