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v3.22.2.2

Investments | 9 Months Ended
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Sep. 30, 2022
Investments Debt And Equity Securities [Abstract] |
Investments | 4. INVESTMENTS Investments consisted of the following (in thousands):
|  |  |  |  | Gross Unrealized |  |  |  |
|  |  |  |  |  |  |  | Losses |  |  |  |
|  | Amortized |  |  |  |  |  | Less than |  |  | Greater than |  |  | Estimated |
September 30, 2022 |  | Cost |  |  | Gains |  |  | One Year |  |  | One Year |  |  | Fair Value |
Short-term investments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Available-for-sale securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate debt securities |  | $ | 135,140 |  |  | $ | — |  |  | $ | (1,860 | ) |  | $ | (712 | ) |  | $ | 132,568 |
U.S. government and agency debt securities |  |  | 135,444 |  |  |  | 4 |  |  |  | (823 | ) |  |  | (569 | ) |  |  | 134,056 |
Non-U.S. government debt securities |  |  | 50,148 |  |  |  | — |  |  |  | (311 | ) |  |  | (236 | ) |  |  | 49,601 |
Total short-term investments |  |  | 320,732 |  |  |  | 4 |  |  |  | (2,994 | ) |  |  | (1,517 | ) |  |  | 316,225 |
Long-term investments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Available-for-sale securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate debt securities |  |  | 87,038 |  |  |  | — |  |  |  | (2,757 | ) |  |  | (606 | ) |  |  | 83,675 |
U.S. government and agency debt securities |  |  | 73,109 |  |  |  | — |  |  |  | (1,768 | ) |  |  | (1,374 | ) |  |  | 69,967 |
Non-U.S. government debt securities |  |  | 12,021 |  |  |  | — |  |  |  | — |  |  |  | (555 | ) |  |  | 11,466 |
|  |  | 172,168 |  |  |  | — |  |  |  | (4,525 | ) |  |  | (2,535 | ) |  |  | 165,108 |
Held-to-maturity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Certificates of deposit |  |  | 1,820 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,820 |
Total long-term investments |  |  | 173,988 |  |  |  | — |  |  |  | (4,525 | ) |  |  | (2,535 | ) |  |  | 166,928 |
Total investments |  | $ | 494,720 |  |  | $ | 4 |  |  | $ | (7,519 | ) |  | $ | (4,052 | ) |  | $ | 483,153 |
December 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Short-term investments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Available-for-sale securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate debt securities |  | $ | 85,201 |  |  | $ | 177 |  |  | $ | (39 | ) |  | $ | — |  |  | $ | 85,339 |
U.S. government and agency debt securities |  |  | 45,349 |  |  |  | 35 |  |  |  | (24 | ) |  |  | — |  |  |  | 45,360 |
Non-U.S. government debt securities |  |  | 68,046 |  |  |  | 75 |  |  |  | (53 | ) |  |  | — |  |  |  | 68,068 |
Total short-term investments |  |  | 198,596 |  |  |  | 287 |  |  |  | (116 | ) |  |  | — |  |  |  | 198,767 |
Long-term investments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Available-for-sale securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate debt securities |  |  | 111,793 |  |  |  | — |  |  |  | (654 | ) |  |  | — |  |  |  | 111,139 |
U.S. government and agency debt securities |  |  | 81,296 |  |  |  | — |  |  |  | (517 | ) |  |  | — |  |  |  | 80,779 |
Non-U.S. government debt securities |  |  | 35,902 |  |  |  | — |  |  |  | (210 | ) |  |  | — |  |  |  | 35,692 |
|  |  | 228,991 |  |  |  | — |  |  |  | (1,381 | ) |  |  | — |  |  |  | 227,610 |
Held-to-maturity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Certificates of deposit |  |  | 1,820 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,820 |
Total long-term investments |  |  | 230,811 |  |  |  | — |  |  |  | (1,381 | ) |  |  | — |  |  |  | 229,430 |
Total investments |  | $ | 429,407 |  |  | $ | 287 |  |  | $ | (1,497 | ) |  | $ | — |  |  | $ | 428,197 |
At September 30, 2022, the Company reviewed its investment portfolio to assess whether the unrealized losses on its available-for-sale investments were temporary. Investments with unrealized losses consisted primarily of corporate debt securities and debt securities issued and backed by U.S. agencies and the U.S. government. At September 30, 2022, the aggregate estimated fair value of investments in an unrealized loss position was $477.0 million. The Company has the intent and ability to hold these investments until recovery, which may be at maturity. In making the determination whether the decline in fair value of these securities was temporary, the Company evaluated whether it intended to sell the security and whether it was more likely than not that the Company would be required to sell the security before recovering its amortized cost basis. In January 2022, the Company purchased a convertible promissory note in the principal amount of $0.5 million from Synchronicity Pharma, Inc. (“Synchronicity”), a related party. The convertible promissory note was classified as an available-for-sale corporate debt instrument. During the three months ended September 30, 2022, the Company determined there was an other-than-temporary loss related to this investment in Synchronicity and the $0.5 million was recorded within “Other (expense) income, net” in the accompanying condensed consolidated statements of operations and comprehensive loss. In May 2014, the Company entered into an agreement to invest in a partnership, Fountain Healthcare Partners II, L.P. of Ireland (“Fountain”), which was created to carry on the business of investing exclusively in companies and businesses engaged in the healthcare, pharmaceutical and life sciences sectors. As of September 30, 2022, the Company’s total contribution in Fountain was equal to €8.0 million, and its commitment represented approximately 7% of the partnership’s total funding. The Company is accounting for its investment in Fountain under the equity method. During the three months ended March 31, 2022, one of the companies within the Fountain portfolio was acquired by a third party. The Company’s proportional share of the proceeds from this transaction was $1.1 million, of which $1.0 million was received during the three months ended March 31, 2022 and the remaining $0.1 million is being held in escrow until May 2023. The transaction was accounted for under the cumulative earnings approach whereby the return on investment of $0.6 million was recorded as a gain within “Other (expense) income, net” in the accompanying condensed consolidated statements of operations and comprehensive loss and the return of investment of $0.5 million was recorded as a reduction in the Company’s net investment in Fountain. The Company’s net investment in Fountain was $6.7 million and $6.1 million at September 30, 2022 and December 31, 2021, respectively, and was included within “Other assets” in the accompanying condensed consolidated balance sheets. During the three and nine months ended September 30, 2022, the Company recorded increases of $0.5 million and $1.6 million, respectively, in its investment in Fountain, which represented the Company’s proportional share of Fountain’s net gains. Realized gains and losses on the sales and maturities of investments, which were identified using the specific identification method, were as follows:
|  | Nine Months Ended September 30, |
(In thousands) |  | 2022 |  |  | 2021 |
Proceeds from the sales and maturities of investments |  | $ | 190,994 |  |  | $ | 239,228 |
Realized gains |  | $ | — |  |  | $ | 34 |
Realized losses |  | $ | 529 |  |  | $ | 977 |
The Company’s available-for-sale and held-to-maturity securities at September 30, 2022 had contractual maturities in the following periods:
|  | Available-for-sale |  |  | Held-to-maturity |
|  | Amortized |  |  | Estimated |  |  | Amortized |  |  | Estimated |
(In thousands) |  | Cost |  |  | Fair Value |  |  | Cost |  |  | Fair Value |
Within 1 year |  | $ | 318,866 |  |  | $ | 314,355 |  |  | $ | 1,820 |  |  | $ | 1,820 |
After 1 year through 5 years |  |  | 174,034 |  |  |  | 166,978 |  |  |  | — |  |  |  | — |
Total |  | $ | 492,900 |  |  | $ | 481,333 |  |  | $ | 1,820 |  |  | $ | 1,820 |

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- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI https://asc.fasb.org/subtopic&trid=2209399 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI https://asc.fasb.org/subtopic&trid=2324412 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI https://asc.fasb.org/topic&trid=2196928 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI https://asc.fasb.org/subtopic&trid=2176304 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher SEC -Name Regulation S-K (SK) -Number 229 -Section 1403 -Paragraph (b) + Details
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