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Fair Value Measurements (Tables)

3 Months Ended

12 Months Ended

Jun. 30, 2021

Mar. 31, 2021

Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table sets forth the Company’s assets and liabilities that are measured at fair value on a recurring basis as of June 30, 2021 and March 31, 2021, by level, within the fair value hierarchy (in thousands):

		As of June 30, 2021																As of March 31, 2021
		Level 1				Level 2				Level 3				Balance as of June 30, 2021				Level 1				Level 2				Level 3				Balance as of March 31, 2021
Assets:
Money market funds		$	1,340,662			$	—			$	—			$	1,340,662			$	1,420,597			$	—			$	—			$	1,420,597
Investment in Sio common shares			50,716				—				—				50,716				48,487				—				—				48,487
Investment in Arbutus common shares			48,521				—				—				48,521				53,325				—				—				53,325
Investment in Arbutus convertible preferred shares			—				69,187				—				69,187				—				76,037				—				76,037
Other investment			11,935				—				—				11,935				11,129				—				—				11,129
Total assets at fair value		$	1,451,834			$	69,187			$	—			$	1,521,021			$	1,533,538			$	76,037			$	—			$	1,609,575
Liabilities:
Debt issued by Dermavant to NovaQuest		$	—			$	—			$	155,200			$	155,200			$	—			$	—			$	150,100			$	150,100
Liability instruments measured at fair value			—				—				5,906				5,906				—				—				67,893				67,893
Total liabilities at fair value		$	—			$	—			$	161,106			$	161,106			$	—			$	—			$	217,993			$	217,993

The following table sets forth the Company’s assets and liabilities that are measured at fair value on a recurring basis as of March 31, 2021 and 2020, by level, within the fair value hierarchy (in thousands):

		As of March 31, 2021																As of March 31, 2020
		Level 1				Level 2				Level 3				Balance as of March 31, 2021				Level 1				Level 2				Level 3				Balance as of March 31, 2020
Assets:
Money market funds		$	1,420,597			$	—			$	—			$	1,420,597			$	1,874,662			$	—			$	—			$	1,874,662
Investment in Sio common shares			48,487				—				—				48,487				45,329				—				—				45,329
Investment in Arbutus common shares			53,325				—				—				53,325				16,174				—				—				16,174
Investment in Arbutus convertible preferred shares			—				76,037				—				76,037				—				23,062				—				23,062
Other investments			11,129				—				—				11,129				8,880				—				—				8,880
Total assets at fair value		$	1,533,538			$	76,037			$	—			$	1,609,575			$	1,945,045			$	23,062			$	—			$	1,968,107
Liabilities:
Debt held by Dermavant with NovaQuest		$	—			$	—			$	150,100			$	150,100			$	—			$	—			$	89,100			$	89,100
Liability instruments measured at fair value			—				—				67,893				67,893				—				—				102,373				102,373
Total liabilities at fair value		$	—			$	—			$	217,993			$	217,993			$	—			$	—			$	191,473			$	191,473

Schedule of Fair Value of Unobservable Input Related To Options to Acquire Under Sumitomo Transaction Agreement

The fair value of the options to acquire the Company’s interest in Dermavant, Genevant, Lysovant, Metavant, Cytovant Parent, and Sinovant (collectively, the “Option Vants”) granted to Sumitomo under the Sumitomo Transaction Agreement as of March 31, 2021 and 2020 was calculated using significant unobservable inputs including the following:

		Range or Point Estimate Used
Input		As of March 31, 2021		As of March 31, 2020
Time to expiration (in years)		3.59		0.49 - 4.59
Risk-free rate		0.52%		0.15% - 0.35%
Volatility		89.0% - 95.0%		91.0% - 110.0%

Schedule of change in the fair value of the derivative warrant liabilities

The changes in fair value of the Level 3 liabilities during the three months ended June 30, 2021 and 2020 were as follows (in thousands):

Balance at March 31, 2020		$	191,473
Changes in fair value of debt and liability instruments, included in net loss			17,125
Liability instruments disposed due to deconsolidation of subsidiary			(3,325	)
Balance at June 30, 2020		$	205,273
Balance at March 31, 2021		$	217,993
Changes in fair value of debt and liability instruments, included in net loss			4,585
Termination of DSP Options			(61,472	)
Balance at June 30, 2021		$	161,106

The changes in fair value of the Level 3 liabilities during the years ended March 31, 2021 and 2020 were as follows (in thousands):

Balance at March 31, 2019		$	103,628
Issuance of liability instruments measured at fair value			101,567
Changes in fair value of debt and liability instruments, included in net loss			(13,722	)
Balance at March 31, 2020			191,473
Changes in fair value of debt and liability instruments, included in net loss			29,845
Liability instruments disposed due to deconsolidation of subsidiary			(3,325	)
Balance at March 31, 2021		$	217,993

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

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (bbb)
-URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258

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- Definition

Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes 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 liability.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19279-110258

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X

- 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
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258

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