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Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 9 Months Ended
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Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Schedule of Revenue by Source | The following table represents disaggregation of royalties, Captisol and contract revenue (in thousands):
| Three months ended |  | Nine months ended
| September 30, |  | September 30,
| 2022 |  | 2021 |  | 2022 |  | 2021
Royalties |  |  |  |  |  |  |
Kyprolis | $ | 9,123 |  |  | $ | 8,821 |  |  | $ | 20,872 |  |  | $ | 18,548 |
Evomela | 3,123 |  |  | 2,665 |  |  | 8,218 |  |  | 7,191 |
Teriparatide injection | 4,071 |  |  | 2,567 |  |  | 12,484 |  |  | 2,831 |
Rylaze | 2,099 |  |  | 600 |  |  | 6,065 |  |  | 600 |
Other | 1,421 |  |  | 995 |  |  | 3,852 |  |  | 2,206 |
| $ | 19,837 |  |  | $ | 15,648 |  |  | $ | 51,491 |  |  | $ | 31,376 |
Captisol |  |  |  |  |  |  |
Captisol - Core | $ | 3,582 |  |  | $ | 5,374 |  |  | $ | 13,133 |  |  | $ | 16,310 |
Captisol - COVID(1) | 32,367 |  |  | 29,719 |  |  | 64,483 |  |  | 112,565 |
| $ | 35,949 |  |  | $ | 35,093 |  |  | $ | 77,616 |  |  | $ | 128,875 |
Contract revenue |  |  |  |  |  |  |
Service Revenue | $ | 4,975 |  |  | $ | 4,828 |  |  | $ | 15,574 |  |  | $ | 17,650 |
License Fees | 460 |  |  | 200 |  |  | 5,154 |  |  | 2,293 |
Milestone | 3,658 |  |  | 7,419 |  |  | 14,022 |  |  | 19,436 |
Other | 1,209 |  |  | 1,647 |  |  | 5,343 |  |  | 5,030 |
| $ | 10,302 |  |  | $ | 14,094 |  |  | $ | 40,093 |  |  | $ | 44,409 |
Total | $ | 66,088 |  |  | $ | 64,835 |  |  | $ | 169,200 |  |  | $ | 204,660 |
(1) Captisol - COVID represents revenue on Captisol supplied for use in formulation with remdesivir, an antiviral treatment for COVID-19.
Schedule of Short-Term Investments | Our short-term investments consist of the following at September 30, 2022 and December 31, 2021 (in thousands):
| Amortized cost |  |  | Gross unrealized gains |  |  | Gross unrealized losses |  |  | Estimated fair value |
September 30, 2022 |  |  |  |  |  |  |  |  |  |  |
Bank deposits | $ | 2,506 |  |  |  | $ | — |  |  |  | $ | (53) |  |  |  | $ | 2,453 |  |
Corporate bonds | 4,887 |  |  |  | — |  |  |  | (107) |  |  |  | 4,780 |  |
Corporate equity securities | 5,807 |  |  |  | 312 |  |  |  | (3,615) |  |  |  | 2,504 |  |
Mutual fund | 88,115 |  |  |  | — |  |  |  | (1,203) |  |  |  | 86,912 |  |
US government securities | 2,229 |  |  |  | — |  |  |  | (84) |  |  |  | 2,145 |  |
Warrants | — |  |  |  | 232 |  |  |  | — |  |  |  | 232 |  |
| $ | 103,544 |  |  |  | $ | 544 |  |  |  | $ | (5,062) |  |  |  | $ | 99,026 |  |
Viking common stock |  |  |  |  |  |  |  |  |  | 18,265 |  |
Total short-term investments |  |  |  |  |  |  |  |  |  | $ | 117,291 |  |
December 31, 2021 |  |  |  |  |  |  |  |  |  |  |
Bank deposits | $ | 63,389 |  |  |  | $ | 13 |  |  |  | $ | (21) |  |  |  | $ | 63,381 |  |
Corporate bonds | 29,308 |  |  |  | 17 |  |  |  | (38) |  |  |  | 29,287 |  |
Commercial paper | 36,008 |  |  |  | 2 |  |  |  | (12) |  |  |  | 35,998 |  |
Corporate equity securities | 5,807 |  |  |  | 402 |  |  |  | (2,027) |  |  |  | 4,182 |  |
Mutual fund | 152,136 |  |  |  | — |  |  |  | (249) |  |  |  | 151,887 |  |
U.S. government securities | 5,577 |  |  |  | — |  |  |  | (23) |  |  |  | 5,554 |  |
Warrants | — |  |  |  | 408 |  |  |  | — |  |  |  | 408 |  |
| $ | 292,225 |  |  |  | $ | 842 |  |  |  | $ | (2,370) |  |  |  | $ | 290,697 |  |
Viking common stock |  |  |  |  |  |  |  |  |  | 30,889 |  |
Total short-term investments |  |  |  |  |  |  |  |  |  | $ | 321,586 |  |
Schedule of Available-for-Sale Debt Securities | The following table summarizes our available-for-sale debt securities by contractual maturity (in thousands):
| September 30, 2022
| Amortized Cost |  | Fair Value
Within one year | $ | 8,659 |  |  | $ | 8,458 |
After one year through five years | 982 |  |  | 939 |
Total | $ | 9,641 |  |  | $ | 9,397 |
Schedule of Goodwill and Other Identifiable Intangible Assets | Goodwill and other identifiable intangible assets consist of the following (in thousands):
| September 30, |  | December 31,
| 2022 |  | 2021
Indefinite-lived intangible assets |  |  |
Goodwill | $ | 181,206 |  |  | $ | 181,206 |
Definite lived intangible assets |  |  |
Complete technology | 282,057 |  |  | 280,617 |
Less: accumulated amortization | (90,611) |  |  | (78,991) |
Trade name | 2,642 |  |  | 2,642 |
Less: accumulated amortization | (1,544) |  |  | (1,444) |
Customer relationships | 40,700 |  |  | 40,700 |
Less: accumulated amortization | (20,272) |  |  | (18,267) |
Contractual relationships | 362,000 |  |  | 362,000 |
Less: accumulated amortization | (57,947) |  |  | (36,217) |
Total goodwill and other identifiable intangible assets, net | $ | 698,231 |  |  | $ | 732,246 |
Schedule Of Goodwill Balance by Segment On Relative Fair Value Basis | The following table presents our allocation of goodwill balance by segment (in thousands):
| Fair Value
Goodwill |
Ligand core business | $ | 105,673 |
OmniAb business | 75,533 |
| $ | 181,206 |
Schedule of Commercial License Rights | Commercial license rights consist of the following (in thousands):
|  | September 30, 2022 |  | December 31, 2021
|  | Gross |  | Adjustments(1) |  | Net |  | Gross |  | Adjustments(2) |  | Net
Aziyo and CorMatrix |  | $ | 17,696 |  |  | $ | (9,455) |  |  | $ | 8,241 |  |  | $ | 17,696 |  |  | $ | (9,461) |  |  | $ | 8,235 |
Selexis and Dianomi |  | 10,602 |  |  | (8,650) |  |  | 1,952 |  |  | 10,602 |  |  | (8,727) |  |  | 1,875 |
Total |  | $ | 28,298 |  |  | $ | (18,105) |  |  | $ | 10,193 |  |  | $ | 28,298 |  |  | $ | (18,188) |  |  | $ | 10,110 |
(1) Amounts represent accumulated amortization to principal of $11.6 million and credit loss adjustments of $6.5 million as of September 30, 2022. (2) Amounts represent accumulated amortization to principal of $11.7 million and credit loss adjustments of $6.5 million as of December 31, 2021.
Schedule of Accrued Liabilities | Accrued liabilities consist of the following (in thousands):
| September 30, |  | December 31,
| 2022 |  | 2021
Compensation | $ | 6,229 |  |  | $ | 6,532 |
Professional fees | 2,848 |  |  | 2,046 |
Amounts owed to former licensees | 4,042 |  |  | 630 |
Return reserve | — |  |  | 2,420 |
Acquisition related liabilities | — |  |  | 1,000 |
Subcontractor | 1,756 |  |  | 1,759 |
Other | 4,463 |  |  | 3,192 |
Total accrued liabilities | $ | 19,338 |  |  | $ | 17,579 |
Schedule of Accounting for Share-Based Compensation | The following table summarizes share-based compensation expense recorded as components of research and development expenses and general and administrative expenses for the periods indicated (in thousands):
| Three months ended |  | Nine months ended |  |
| September 30, |  | September 30, |  |
| 2022 |  | 2021 |  | 2022 |  | 2021 |  |  |  |
SBC - Research and development expenses | $ | 6,104 |  |  | $ | 4,480 |  |  | $ | 14,519 |  |  | $ | 12,975 |  |  |  |  |
SBC - General and administrative expenses | 6,493 |  |  | 5,274 |  |  | 16,621 |  |  | 15,400 |  |  |  |  |
| $ | 12,597 |  |  | $ | 9,754 |  |  | $ | 31,140 |  |  | $ | 28,375 |  |  |  |  |
Schedule of Fair-Value Options Awarded to Employees and Directors | The fair-value for options that were awarded to employees and directors was estimated at the date of grant using the Black-Scholes option valuation model with the following weighted-average assumptions:
| Three months ended |  | Nine months ended |  |
| September 30, |  | September 30, |  |
| 2022 |  | 2021 |  | 2022 |  | 2021 |  |  |  |
Risk-free interest rate | 2.8% |  | 0.8% |  | 2.9% |  | 0.5% |  |  |  |
Dividend yield | — |  | — |  | — |  | — |  |  |  |
Expected volatility | 50% |  | 48% |  | 50% |  | 61% |  |  |  |
Expected term (years) | 4.9 |  | 4.9 |  | 4.8 |  | 5.0 |  |  |  |
Schedule of Computation of Basic and Diluted Earnings per Share | The following table presents the calculation of weighted average shares used to calculate basic and diluted earnings per share (in thousands):
| Three months ended |  | Nine months ended |  |
| September 30, |  | September 30, |  |
| 2022 |  | 2021 |  | 2022 |  | 2021 |  |  |  |
Weighted average shares outstanding: | 16,888 |  |  | 16,688 |  |  | 16,860 |  |  | 16,595 |  |  |  |  |
Dilutive potential common shares: |  |  |  |  |  |  |  |  |  |  |
Restricted stock | 65 |  |  | 75 |  |  | — |  |  | 85 |  |  |  |  |
Stock options | 179 |  |  | 379 |  |  | — |  |  | 507 |  |  |  |  |
Shares used to compute diluted income per share | 17,132 |  |  | 17,142 |  |  | 16,860 |  |  | 17,187 |  |  |  |  |
Potentially dilutive shares excluded from calculation due to anti-dilutive effect | 6,706 |  |  | 5,574 |  |  | 6,503 |  |  | 4,984 |  |  |  |  |

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