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Fair Value Measurement
 12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurement Fair Value Measurement
Available-for-sale marketable securities consisted of the following (in thousands):
December 31, 2024
Amortized CostGross Unrealized GainsGross Unrealized LossesEstimated Fair Value
Asset-backed securities$251 $— $— $251 
Corporate debt securities102,632 150 (207)102,575 
U.S. treasury securities
367,700 442 (572)367,570 
Agency bonds9,844 — (16)9,828 
Total marketable securities, available-for-sale$480,427 $592 $(795)$480,224 
December 31, 2023
Amortized CostGross Unrealized GainsGross Unrealized LossesEstimated Fair Value
Asset-backed securities$3,512 $— $(8)$3,504 
Corporate debt securities6,022 1 (10)6,013 
U.S. treasury securities
175,996 200 (12)176,184 
Agency bonds16,119 — (16)16,103 
Commercial paper15,826 — — 15,826 
Total marketable securities, available-for-sale$217,475 $201 $(46)$217,630 
As of December 31, 2024, twenty-seven available-for-sale marketable securities with a fair market value of $250.3 million were in a gross unrealized loss position of $0.8 million. Based on our review of these marketable securities, we believe none of the unrealized loss is as a result of a credit loss as of December 31, 2024 because we do not intend to sell these securities and it is not more-likely-than-not that we will be required to sell these securities before the recovery of their amortized cost basis.
The estimated fair value of our contractual maturities of available-for-sale debt securities were as follows (in thousands):
December 31, 2024December 31, 2023
Due within one year$314,978 $197,633 
Due after one year but within five years (1)
165,246 19,997 
Total estimated fair value of contractual maturities, available-for-sale$480,224 $217,630 
(1)    These investments are classified as current assets which reflects management’s intention to use the proceeds from the sale of these investments to fund operations, as necessary.
The following table summarizes, by major security type, our cash equivalents and available-for-sale marketable securities measured at fair value on a recurring basis and are categorized using the fair value hierarchy (in thousands):
December 31, 2024December 31, 2023
Level 1Level 2
Total Estimated Fair Value
Level 1Level 2
Total Estimated Fair Value
Assets
Cash equivalents
Money market funds$55,182 $— $55,182 $22,142 $— $22,142 
U.S. treasury securities
— — — 2,000 — 2,000 
Available-for-sale marketable
securities
Asset-backed securities— 251 251 — 3,504 3,504 
Corporate debt securities— 102,575 102,575 — 6,013 6,013 
U.S. treasury securities
367,570 — 367,570 176,184 — 176,184 
Agency bonds9,828 — 9,828 16,103 — 16,103 
Commercial paper— — — — 15,826 15,826 
Derivative instruments
Currency hedging contracts (1)
— 4,006 4,006 — — — 
Total assets$432,580 $106,832 $539,412 $216,429 $25,343 $241,772 
Liabilities
Derivative instruments
Currency hedging contracts(1)
$— $17 $17 $— $9,480 $9,480 
(1)    Based on observable market transactions of spot currency rates, forward currency rates or equivalently-termed instruments. Carrying amounts of the financial assets and liabilities are equal to the fair value. As of December 31, 2024, the derivative assets recorded within prepaid expenses and other current assets and prepaid expenses and other assets in our consolidated balance sheets were $2.4 million and $1.6 million, respectively. The derivative liabilities recorded within other long-term liabilities in our consolidated balance sheets as of December 31, 2024 were not material.
We had no available-for-sale securities that were classified within Level 3 as of December 31, 2024 and 2023.
A contingent liability was assumed as part of the Antares acquisition related to TLANDO. The acquisition date fair value was measured using the income approach, specifically the probability weighted expected return method for the development milestone payments and the option pricing methodology using the Monte Carlo simulation for commercial milestone payments and royalty payments. Estimates and assumptions used in the Monte Carlo simulation include forecasted revenues, cost of debt, risk free rate, weighted average cost of capital, revenue market price risk and revenue volatility. Estimates and assumptions used in the income approach include the probability of achieving certain milestones and a discount rate. These unobservable inputs represent a Level 3 measurement because they are supported by little or no market activity and reflect our own assumptions in measuring fair value. Changes in the fair value subsequent to the acquisition date is recognized in our consolidated statements of income. In September 2023, we provided Lipocine notice of termination of the TLANDO license agreement effective January 31, 2024. Based on the fair value remeasurement performed, we recognized a gain on change in fair value of the contingent liability of $13.2 million for the twelve months ended December 31, 2023 in our consolidated statements of income.