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Summary of Significant Accounting Policies (Tables)

6 Months Ended

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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