Fair Value Measurements and Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2026

The following table summarizes assets and liabilities measured at fair value on a recurring basis by level within the fair value hierarchy (in thousands):


	As of March 31, 2026								As of December 31, 2025
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Money market funds(1)	$	321,103	$	—	$	—	$	321,103	$	383,568	$	—	$	—	$	383,568
Available for sale debt securities(2)	—		—		21,900		21,900		—		—		18,800		18,800
Total current assets	$	321,103	$	—	$	21,900	$	343,003	$	383,568	$	—	$	18,800	$	402,368

Equity securities	173,270		—		—		173,270		171,312		—		—		171,312
Available for sale debt securities(2)	—		—		406,800		406,800		—		—		419,000		419,000
Total non-current assets	$	173,270	$	—	$	406,800	$	580,070	$	171,312	$	—	$	419,000	$	590,312

Liabilities:
Cytokinetics Funding Commitments	—		—		(11,000)		(11,000)		—		—		(9,100)		(9,100)
Total non-current liabilities	$	—	$	—	$	(11,000)	$	(11,000)	$	—	$	—	$	(9,100)	$	(9,100)

(1)Recorded within Cash and cash equivalents on the condensed consolidated balance sheets.

(2)Related to the funded Cytokinetics Funding Arrangements.

Summary of Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The tables presented below summarize the change in the combined fair value (current and non-current) of Level 3 financial instruments (in thousands):


	For the Three Months Ended March 31, 2026
	Debt Securities		Funding Commitments
Balance at the beginning of the period	$	437,800	$	(9,100)




Changes in fair value(1)	(4,780)		(1,900)





Redemptions(2)	(4,320)		—
Balance at the end of the period	$	428,700	$	(11,000)

(1)Recorded within Losses on available for sale debt securities in the condensed consolidated statements of operations.

(2)Amount relates to the quarterly repayments on the Cytokinetics Commercial Launch Funding.


	For the Three Months Ended March 31, 2025
	Equity Securities		Debt Securities		Funding Commitments		Royalty at Fair Value
Balance at the beginning of the period	$	2,241	$	751,700	$	(12,080)	$	5,323



Changes in fair value(1)	—		2,539		(5,820)		—



Sales(2)	—		(510,553)		—		—
Redemptions(3)	—		(12,586)		—		—
Balance at the end of the period	$	2,241	$	231,100	$	(17,900)	$	5,323

(1)Recorded within Losses on available for sale debt securities in the condensed consolidated statements of operations.

(2)We provided funding of $300 million to MorphoSys in 2022 (“MorphoSys Development Funding Bonds”), which we sold in January 2025.

(3)Amount relates to the quarterly repayments on the MorphoSys Development Funding Bonds prior to the sale and the Cytokinetics Commercial Launch Funding.

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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