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Liability Related to Sale of Future Royalties | 9 Months Ended
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Sep. 30, 2025
Liability Related to Sale of Future Royalties [Abstract] |
Liability Related to Sale of Future Royalties | 11. Liability Related to Sale of Future Royalties In 2023, we entered into a royalty purchase agreement with Royalty Pharma Investments, or Royalty Pharma, to monetize a portion of our future SPINRAZA and pelacarsen royalties we are entitled to under our arrangements with Biogen and Novartis, respectively. As a result, we received an upfront payment of $500 million and we are eligible to receive up to $625 million in additional milestone payments. Under the terms of the agreement, Royalty Pharma will receive 25 percent of our SPINRAZA royalty payments from 2023 through 2027, increasing to 45 percent of royalty payments in 2028, on up to $1.5 billion in annual sales. In addition, Royalty Pharma will receive 25 percent of any future royalty payments on pelacarsen, our medicine in development to treat patients with elevated lipoprotein(a)-driven cardiovascular disease. Royalty Pharma’s royalty interest in SPINRAZA will revert to us after total SPINRAZA royalty payments to Royalty Pharma reach either $475 million or $550 million, depending on the timing and occurrence of FDA approval of pelacarsen. We recorded the upfront payment of $500 million as a liability related to the sale of future royalties, net of transaction costs of $10.4 million, which we are amortizing over the estimated life of the arrangement using the effective interest rate method. We recognize royalty revenue in the period in which the counterparty sells the related product and recognizes the related revenue. We record royalty payments made to Royalty Pharma as a reduction of the liability. We determine the effective interest rate used to record interest expense under this agreement based on an estimate of future royalty payments to Royalty Pharma. As of September 30, 2025 and 2024, the estimated effective interest rate under the agreement was 12.4 percent and 13.5 percent, respectively. The following table sets forth information on our liability related to sale of future royalties (in thousands):
Liability related to sale of future royalties, net as of December 31, 2024 | $ | 542,212 |
Royalty payments to Royalty Pharma |  | (38,478 | )
Interest expense related to sale of future royalties |  | 54,964 |
Amortization of issuance costs related to sale of future royalties |  | 458 |
Liability related to sale of future royalties, net as of September 30, 2025 | $ | 559,156 |
Less: Current portion (1) |  | (13,974 | )
Liability related to sale of future royalties, net as of September 30, 2025 – Non-current | $ | 545,182 |
(1) Included in other current liabilities in our condensed consolidated balance sheet. There are numerous factors, most of which are not within our control, that could materially impact the amount and timing of royalty payments from Biogen and Novartis, and result in changes to our estimate of future royalty payments to Royalty Pharma. Such factors include, but are not limited to, the commercial sales of SPINRAZA, the regulatory approval and commercial sales of pelacarsen, competing products or other significant events.

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