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Research and Development Funding Expense | 3 Months Ended
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Mar. 31, 2026
Research and Development [Abstract] |
Research and Development Funding Expense | Research and Development Funding Expense R&D funding expense consists of certain development-stage funding payments that we have made to counterparties to acquire royalties or milestones on product candidates. The payments can be made upfront, as milestones upon the achievement of certain predefined criteria, or over time as the related product candidates undergo clinical trials. In the first quarter of 2026, R&D funding expense of $39.8 million was primarily related to litifilimab and TEV-’408. In the first quarter of 2025, R&D funding expense of $50.5 million was primarily related to litifilimab. Below summarizes our ongoing R&D funding arrangements as of March 31, 2026 (in thousands):
Product Candidates |  | Counterparties |  | Total Commitments |  | Funding Timing |  | Unfunded Commitments |  |  |
JNJ‑4804 |  | Johnson & Johnson |  | $ | 500,000 |  |  | Eight fixed quarterly payments commencing in the second quarter of 2026 |  | $ | 500,000 |  |  |  |  |  |
TEV-’408(1) |  | Teva Pharmaceuticals |  | 75,000 |  |  | Variable quarterly payments commencing in second quarter of 2026 |  | 75,000 |  |  |  |  |  |
Litifilimab |  | Biogen |  | 250,000 |  |  | Six fixed quarterly payments commencing in first quarter of 2025 |  | 25,000 |  |  |  |  |  |
Total |  |  |  | $ | 825,000 |  |  |  |  | $ | 600,000 |  |  |  |  |  |
(1)In the first quarter of 2026, we entered into an R&D funding arrangement with Teva Pharmaceuticals, a U.S. affiliate of Teva Pharmaceutical Industries Ltd, for TEV-’408 for up to $500 million. Under the agreement, we agreed to co-fund a Phase 2b study for vitiligo for up to $75 million and have the option to provide up to an additional $425 million to co-fund the Phase 3 development program based on the results of the Phase 2b study. In the first quarter of 2026, we accrued $14.3 million of R&D funding expense for our portion of estimated costs incurred for the Phase 2b study, which is recorded within Other current liabilities on the condensed consolidated balance sheet and is expected to be paid in the second quarter of 2026.

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