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Financial Royalty Assets
 3 Months Ended
Mar. 31, 2026
Receivables [Abstract]  
Financial Royalty Assets Financial Royalty Assets
Financial royalty assets consist of contractual rights to cash flows relating to royalties derived from the expected sales of patent-protected biopharmaceutical products that entitle us and our subsidiaries to receive a portion of income from the sale of such products by third parties.
The gross carrying value, cumulative allowance for changes in expected cash flows, exclusive of the allowance for credit losses, and net carrying value for the current and non-current portion of financial royalty assets are as follows (in thousands):

As of March 31, 2026
Estimated Royalty Duration(1)
Gross Carrying Value
Cumulative Allowance for Changes in Expected Cash Flows (Note 9)
Net Carrying Value(4)
Cystic fibrosis franchise
2039-2041(2)
$4,836,196 $— $4,836,196 
Evrysdi2035-20362,307,411 (389,643)1,917,768 
Voranigo2038979,753 — 979,753 
Tysabri
(3)
1,088,300 (143,935)944,365 
Trelegy2029-2030935,020 — 935,020 
Imdelltra
2038-2041
926,780 — 926,780 
Other
2026-20428,969,956 (1,982,732)6,987,224 
Total$20,043,416 $(2,516,310)$17,527,106 
Less: Cumulative allowance for credit losses (Note 9)
(204,909)
Total current and non-current financial royalty assets, net$17,322,197 
(1)Durations shown represent our estimates as of the current reporting date of when a royalty will substantially end, which may vary by geography and may depend on clinical trial results, regulatory approvals, contractual terms, commercial developments, estimates of regulatory exclusivity and patent expiration dates (which may include estimated patent term extensions) or other factors. There can be no assurances that our royalties will expire when expected.
(2)Royalty is perpetual. We estimate royalty duration of 2039-2041 due to expected Alyftrek patent expiration and potential generic entry thereafter leading to sales decline.
(3)Royalty is perpetual. We have applied an end date of 2035 for purposes of accreting income over the royalty term, which is periodically reviewed based on our estimates of impact from biosimilars.
(4)The net carrying value by asset is presented before the allowance for credit losses. Refer to Note 9–Cumulative Allowance and the Provision for Changes in Expected Cash Flows from Financial Royalty Assets for additional information.

As of March 31, 2026, the balance of $17.3 billion above for total current and non-current financial royalty assets, net included $1.4 billion in unapproved financial royalty assets held at cost related to frexalimab for $522.6 million and other assets, including primarily olpasiran, pelacarsen, neladalkib and olanzapine (TEV-’749).

In the first quarter of 2026, we recorded $69.4 million of non-cash impairment charges related to Tazverik following announcements by Ipsen and Eisai in March 2026 of the voluntary withdrawal of Tazverik across all indications and markets. The impairment charge was recorded within Financial royalty asset impairment in the condensed consolidated statement of operations.
As of December 31, 2025
Estimated Royalty Duration(1)
Gross Carrying Value
Cumulative Allowance for Changes in Expected Cash Flows (Note 9)
Net Carrying Value(3)
Cystic fibrosis franchise
2039-2041(2)
$4,901,121 $— $4,901,121 
Evrysdi2035-20362,331,262 (494,123)1,837,139 
Voranigo2038982,802 — 982,802 
Trelegy2029-2030993,629 (17,356)976,273 
Imdelltra2038-2041924,239 — 924,239 
Tremfya2031-2032909,607 — 909,607 
Other2025-20429,417,689 (2,674,043)6,743,646 
Total$20,460,349 $(3,185,522)$17,274,827 
Less: Cumulative allowance for credit losses (Note 9)
(211,959)
Total current and non-current financial royalty assets, net$17,062,868 
(1)Durations shown represent our estimates as of December 31, 2025 of when a royalty will substantially end, which may vary by geography and may depend on clinical trial results, regulatory approvals, contractual terms, commercial developments, estimates of regulatory exclusivity and patent expiration dates (which may include estimated patent term extensions) or other factors. There can be no assurances that our royalties will expire when expected.
(2)Royalty is perpetual. We estimate royalty duration of 2039-2041 due to expected Alyftrek patent expiration and potential generic entry thereafter leading to sales decline.
(3)The net carrying value by asset is presented before the allowance for credit losses. Refer to Note 9–Cumulative Allowance and the Provision for Changes in Expected Cash Flows from Financial Royalty Assets for additional information.