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Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 9 Months Ended
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Sep. 30, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Schedule of Reconciliation of Operating Profit (Loss) from Segments to Consolidated | The information on significant segment expenses that are regularly provided to the CODM, and other segment items included within the reported segment profit or loss measure, is presented in a table below:
| Three months ended |  | Nine months ended
| September 30, |  | September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Total revenues and other income | $ | 115,461 |  |  | $ | 51,812 |  |  | $ | 208,421 |  |  | $ | 124,321 |
Share-based compensation | (14,746) |  |  | (15,171) |  |  | (32,579) |  |  | (33,565) |
Other segment items: |  |  |  |  |  |  |
Amortization of intangibles | (8,097) |  |  | (8,258) |  |  | (24,612) |  |  | (24,701) |
Depreciation of property and equipment | (172) |  |  | (736) |  |  | (949) |  |  | (1,911) |
Interest income | 3,874 |  |  | 1,347 |  |  | 7,266 |  |  | 6,124 |
Interest expense | (910) |  |  | (741) |  |  | (2,930) |  |  | (2,154) |
Other * | 21,863 |  |  | (35,425) |  |  | (74,948) |  |  | (41,058) |
Net income (loss) | $ | 117,273 |  |  | $ | (7,172) |  |  | $ | 79,669 |  |  | $ | 27,056 |
* Other items for the three months ended September 30, 2025 and 2024 include the amount of other general, administrative, research and development expenses of $34.5 million and $14.2 million (net of share-based compensation and depreciation expenses), respectively, cost of Captisol and other non-operating income and expenses. Other items for the nine months ended September 30, 2025 include the amount of other general, administrative, research and development expenses of $111.6 million (including a $44.3 million one-time research and development expense in connection with the Castle Creek Transaction, a $17.8 million one-time research and development expense in connection with the Orchestra Transaction and net of share-based compensation and depreciation expenses), cost of Captisol and other non-operating income and expenses. Other items for the nine months ended September 30, 2024 include the amount of other general, administrative, research and development expenses of $34.6 million (net of share-based compensation and depreciation expenses), and additional operating income and expense items that are presented in the unaudited condensed consolidated statement of operations such as financial royalty assets impairment of $26.5 million, fair value adjustments to partner program derivatives, cost of Captisol and other non-operating income and expenses.
Schedule of Revenue by Source | The following table represents disaggregation of royalties, Captisol, and contract revenue and other income (in thousands):
| Three months ended |  | Nine months ended
| September 30, |  | September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Royalties |  |  |  |  |  |  |
Kyprolis | $ | 11,619 |  |  | $ | 11,599 |  |  | $ | 25,145 |  |  | $ | 27,229 |
Evomela | 1,893 |  |  | 1,747 |  |  | 5,339 |  |  | 5,877 |
Teriparatide injection | 2,632 |  |  | 2,376 |  |  | 6,121 |  |  | 6,520 |
Rylaze | 3,557 |  |  | 3,886 |  |  | 9,540 |  |  | 10,070 |
Filspari | 9,078 |  |  | 3,206 |  |  | 20,957 |  |  | 7,402 |
Vaxneuvance | 2,039 |  |  | 1,466 |  |  | 5,967 |  |  | 3,962 |
Ohtuvayre | 2,717 |  |  | 112 |  |  | 6,213 |  |  | 113 |
Capvaxive | 3,206 |  |  | 435 |  |  | 6,341 |  |  | 435 |
Other | 3,420 |  |  | 1,725 |  |  | 6,209 |  |  | 5,904 |
Revenue from intangible royalty assets | 40,161 |  |  | 26,552 |  |  | 91,832 |  |  | 67,512 |
Qarziba | 5,976 |  |  | 4,628 |  |  | 17,303 |  |  | 4,628 |
Other | 449 |  |  | 529 |  |  | 1,337 |  |  | 1,826 |
Income from financial royalty assets | 6,425 |  |  | 5,157 |  |  | 18,640 |  |  | 6,454 |
Total royalties | 46,586 |  |  | 31,709 |  |  | 110,472 |  |  | 73,966 |
Captisol | 10,672 |  |  | 6,255 |  |  | 32,419 |  |  | 22,967 |
Contract revenue and other income |  |  |  |  |  |  |
Income from Pelthos Transaction | 53,072 |  |  | — |  |  | 53,072 |  |  | — |
Contract revenue | 131 |  |  | 13,848 |  |  | 6,441 |  |  | 25,444 |
Other income | 5,000 |  |  | — |  |  | 6,017 |  |  | 1,944 |
Contract revenue and other income | 58,203 |  |  | 13,848 |  |  | 65,530 |  |  | 27,388 |
Total | $ | 115,461 |  |  | $ | 51,812 |  |  | $ | 208,421 |  |  | $ | 124,321 |
Schedule of Short-Term Investments | Our short-term investments consist of the following at September 30, 2025 and December 31, 2024 (in thousands):
September 30, 2025 | Amortized cost |  |  | Gross unrealized gains |  |  | Gross unrealized losses |  |  | Estimated fair value
Corporate notes/bonds | $ | 134,162 |  |  |  | $ | 71 |  |  |  | $ | (91) |  |  |  | $ | 134,142 |
U.S. Treasuries | 121,248 |  |  |  | 61 |  |  |  | (18) |  |  |  | 121,291 |
Commercial paper | 118,371 |  |  |  | 30 |  |  |  | (29) |  |  |  | 118,372 |
U.S. Government Agencies | 98,714 |  |  |  | 56 |  |  |  | (34) |  |  |  | 98,736 |
Corporate equity securities | 15,056 |  |  |  | 36,686 |  |  |  | (3,657) |  |  |  | 48,085 |
Certificates of Deposit | 4,520 |  |  |  | — |  |  |  | — |  |  |  | 4,520 |
Total short-term investments | $ | 492,071 |  |  |  | $ | 36,904 |  |  |  | $ | (3,829) |  |  |  | $ | 525,146 |
December 31, 2024 |  |  |  |  |  |  |  |  |  |
U.S. Treasuries | $ | 78,442 |  |  |  | $ | 19 |  |  |  | $ | (13) |  |  |  | $ | 78,448 |
Corporate equity securities | 11,386 |  |  |  | 38,808 |  |  |  | (6,595) |  |  |  | 43,599 |
Commercial paper | 23,483 |  |  |  | 5 |  |  |  | (6) |  |  |  | 23,482 |
Certificates of Deposit | 22,812 |  |  |  | 12 |  |  |  | (4) |  |  |  | 22,820 |
Corporate notes/bonds | 15,496 |  |  |  | 21 |  |  |  | (8) |  |  |  | 15,509 |
Total short-term investments | $ | 151,619 |  |  |  | $ | 38,865 |  |  |  | $ | (6,626) |  |  |  | $ | 183,858 |
Schedule of Available-for-Sale Debt Securities | The following table summarizes our available-for-sale debt securities by contractual maturity (in thousands):
| September 30, 2025
| Amortized Cost |  | Fair Value
Within one year | $ | 281,815 |  |  | $ | 281,873 |
After one year through five years | 195,199 |  |  | 195,188 |
Total | $ | 477,014 |  |  | $ | 477,061 |
Schedule of Goodwill and Other Identifiable Intangible Assets | Goodwill and other identifiable intangible assets consist of the following (in thousands):
| September 30, 2025 |  | December 31, 2024
Indefinite-lived intangible assets |  |  |
Goodwill | $ | 101,541 |  |  | $ | 105,250 |
Definite lived intangible assets |  |  |
Complete technology | $ | 29,619 |  |  | $ | 39,249 |
Less: accumulated amortization | (20,333) |  |  | (19,710) |
Trade name | 2,642 |  |  | 2,642 |
Less: accumulated amortization | (1,943) |  |  | (1,843) |
Customer relationships | 29,600 |  |  | 29,600 |
Less: accumulated amortization | (21,771) |  |  | (20,652) |
Contractual relationships | 360,000 |  |  | 360,000 |
Less: accumulated amortization | (144,279) |  |  | (122,638) |
Total definite lived intangible assets | 233,535 |  |  | 266,648 |
Total goodwill and other identifiable intangible assets, net | $ | 335,076 |  |  | $ | 371,898 |
Schedule of Derivative Assets | Derivative assets consist of the following (in thousands):
| September 30, 2025 |  | December 31, 2024
Agenus Partner Programs | $ | — |  |  | $ | 6,326 |
Primrose mRNA | — |  |  | 3,451 |
Agenus Warrant | 1,282 |  |  | 806 |
Castle Creek Warrant | 5,242 |  |  | — |
Orchestra Warrant | 2,112 |  |  | — |
Arecor Warrant | 715 |  |  | — |
Total noncurrent derivative assets | $ | 9,351 |  |  | $ | 10,583 |
Schedule of Other Investment | Other investments consist of the following (in thousands):
| September 30, 2025 |  | December 31, 2024
Pelthos Series A preferred shares | $ | 95,978 |  |  | $ | — |
Equity securities in Primrose Bio | 6,547 |  |  | 6,712 |
InvIOs investment | 4,196 |  |  | 4,196 |
Total other investments | $ | 106,721 |  |  | $ | 10,908 |
Schedule of Accrued Liabilities | Accrued liabilities consist of the following (in thousands):
| September 30, 2025 |  | December 31, 2024
Royalties owed to third parties | $ | 12,321 |  |  | $ | 6,500 |
Compensation | 3,696 |  |  | 5,522 |
Professional fees | 2,063 |  |  | 4,858 |
Subcontractor | 1,756 |  |  | 1,756 |
Acquisition related liabilities | 1,000 |  |  | — |
Value-added tax | 882 |  |  | 5,159 |
Customer deposit | 621 |  |  | 621 |
Other | 1,745 |  |  | 3,490 |
Total accrued liabilities | $ | 24,084 |  |  | $ | 27,906 |
Schedule of Other Long Term Liabilities | Other long-term liabilities consist of the following (in thousands):
| September 30, 2025 |  | December 31, 2024
Unrecognized tax benefits | $ | 19,865 |  |  | $ | 14,160 |
Novan (Pelthos) contract liability | — |  |  | 15,938 |
Other long-term liabilities | 47 |  |  | 65 |
Total other long-term liabilities | $ | 19,912 |  |  | $ | 30,163 |
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,
| 2025 |  | 2024 |  | 2025 |  | 2024
SBC - Research and development expenses | $ | 1,230 |  |  | $ | 982 |  |  | $ | 3,089 |  |  | $ | 2,588 |
SBC - General and administrative expenses | 13,516 |  |  | 14,189 |  |  | 29,490 |  |  | 30,977 |
Total SBC expenses | $ | 14,746 |  |  | $ | 15,171 |  |  | $ | 32,579 |  |  | $ | 33,565 |
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,
| 2025 |  | 2024 |  | 2025 |  | 2024
Risk-free interest rate | 3.7% |  | 4.4% |  | 4.0% |  | 4.3%
Dividend yield | — |  | — |  | — |  | —
Expected volatility | 40.0% |  | 44.7% |  | 45.4% |  | 44.7%
Expected term (years) | 4.1 |  | 4.7 |  | 4.2 |  | 4.7
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,
| 2025 |  | 2024 |  | 2025 |  | 2024
Weighted average shares outstanding: | 19,578 |  |  | 18,419 |  |  | 19,367 |  |  | 18,061 |
Dilutive potential common shares: |  |  |  |  |  |  |
Restricted stock | 337 |  |  | — |  |  | 260 |  |  | 173 |
Stock options | 714 |  |  | — |  |  | 543 |  |  | 340 |
Shares used to compute diluted income (loss) per share | 20,629 |  |  | 18,419 |  |  | 20,170 |  |  | 18,574 |
Potentially dilutive shares excluded from calculation due to anti-dilutive effect | 3,541 |  |  | 1,099 |  |  | 1,898 |  |  | 1,815 |

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