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Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2023

Fair Value Disclosures [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):

						As of December 31, 2023
												Fair Value
						Carrying Value						Level 1						Level 2						Level 3
Assets
Cash and cash equivalents						$	482.4					$	482.4					$	—					$	—
Marketable securities						$	298.1					$	298.1					$	—					$	—
Collateral for interest rate swap						$	6.0					$	6.0					$	—					$	—
Liabilities
Interest rate swap						$	1.2					$	—					$	1.2					$	—
Deferred consideration						$	5.7					$	—					$	5.7					$	—
Contingent consideration						$	84.6					$	—					$	—					$	84.6
						As of December 31, 2022
												Fair Value
						Carrying Value						Level 1						Level 2						Level 3
Assets
Cash and cash equivalents						$	1,074.0					$	1,074.0					$	—					$	—
Marketable securities						$	74.2					$	74.2					$	—					$	—
Collateral for interest rate swap						$	5.0					$	5.0					$	—					$	—
Liabilities
Interest rate swap						$	1.5					$	—					$	1.5					$	—
Deferred consideration						$	7.4					$	—					$	7.4					$	—
Contingent consideration						$	58.1					$	—					$	—					$	58.1

Schedule of Observable Inputs in Valuation of Deferred Consideration

The following observable input was used in the valuation of the deferred consideration as of December 31, 2023 and 2022:

			Fair Value as of December 31, 2023 (in millions)			Observable Input			Input Value
Deferred consideration			$5.7			Insmed share price on December 31, 2023			$30.99

			Fair Value as of December 31, 2022 (in millions)			Observable Input			Input Value
Deferred consideration			$7.4			Insmed share price on December 31, 2022			$19.98

The following significant unobservable inputs were used in the valuation of the contingent consideration liabilities as of December 31, 2023 and 2022 (in millions):

Contingent Consideration Liabilities

Fair Value as of December 31, 2023

Valuation Technique

Unobservable Inputs

Values

Development and regulatory milestones

$74.8

Probability-adjusted

Probabilities of success

14% - 97%

Priority review voucher milestone

$6.0

Probability-adjusted discounted cash flow

Probability of success

16.4%

Discount rate

10.0%

Contingent Consideration Liabilities

Fair Value as of December 31, 2022

Valuation Technique

Unobservable Inputs

Values

Development and regulatory milestones

$48.1

Probability-adjusted

Probabilities of success

14% - 95%

Priority review voucher milestone

$6.8

Probability-adjusted discounted cash flow

Probability of success

16.4%

Discount rate

8.5%

A rollforward of the Company's valuations deferred and contingent consideration liabilities for the years ended December 31, 2023 and 2022 follows (in thousands):

			Deferred Consideration (level 2 liabilities)						Contingent Consideration  (level 3 liabilities)
Balance as of December 31, 2021			$	14,931					$	75,668
Additions			—						—
Change in Fair Value			(3,234)						(17,568)
Payments			(4,297)						—
Balance as of December 31, 2022			7,400						58,100
Additions			—						—
Change in Fair Value			2,197						26,500
Payments			(3,897)						—
Balance as of December 31, 2023			$	5,700					$	84,600

X

- Definition

Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (bbb)
-SubTopic 10
-Topic 820
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482106/820-10-50-2

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No definition available.

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- Definition

Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482106/820-10-50-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482106/820-10-50-2

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