XML 33 R21.htm IDEA: XBRL DOCUMENT v3.25.3
Basis of Presentation and Summary of Significant Accounting Policies (Tables)
 9 Months Ended
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 endedNine months ended
September 30,September 30,
2025202420252024
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 income3,874 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 endedNine months ended
September 30,September 30,
2025202420252024
Royalties
Kyprolis$11,619 $11,599 $25,145 $27,229 
Evomela1,893 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 
Filspari9,078 3,206 20,957 7,402 
Vaxneuvance2,039 1,466 5,967 3,962 
Ohtuvayre
2,717 112 6,213 113 
Capvaxive
3,206 435 6,341 435 
Other3,420 1,725 6,209 5,904 
Revenue from intangible royalty assets40,161 26,552 91,832 67,512 
Qarziba5,976 4,628 17,303 4,628 
Other449 529 1,337 1,826 
Income from financial royalty assets6,425 5,157 18,640 6,454 
Total royalties46,586 31,709 110,472 73,966 
Captisol10,672 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 income58,203 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 costGross unrealized gainsGross unrealized lossesEstimated 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 paper23,483 5 (6)23,482 
     Certificates of Deposit22,812 12 (4)22,820 
     Corporate notes/bonds15,496 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 CostFair Value
Within one year$281,815 $281,873 
After one year through five years195,199 195,188 
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, 2025December 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 name2,642 2,642 
          Less: accumulated amortization(1,943)(1,843)
     Customer relationships29,600 29,600 
          Less: accumulated amortization(21,771)(20,652)
    Contractual relationships360,000 360,000 
          Less: accumulated amortization(144,279)(122,638)
    Total definite lived intangible assets233,535 266,648 
Total goodwill and other identifiable intangible assets, net$335,076 $371,898 
Schedule of Derivative Assets Derivative assets consist of the following (in thousands):
September 30, 2025December 31, 2024
Agenus Partner Programs$— $6,326 
Primrose mRNA— 3,451 
Agenus Warrant1,282 806 
Castle Creek Warrant5,242 — 
Orchestra Warrant2,112 — 
Arecor Warrant715 — 
     Total noncurrent derivative assets
$9,351 $10,583 
Schedule of Other Investment
Other investments consist of the following (in thousands):
September 30, 2025December 31, 2024
Pelthos Series A preferred shares
$95,978 $— 
Equity securities in Primrose Bio6,547 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, 2025December 31, 2024
Royalties owed to third parties$12,321 $6,500 
Compensation3,696 5,522 
Professional fees2,063 4,858 
Subcontractor1,756 1,756 
Acquisition related liabilities
1,000 — 
Value-added tax882 5,159 
Customer deposit621 621 
Other1,745 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, 2025December 31, 2024
Unrecognized tax benefits$19,865 $14,160 
Novan (Pelthos) contract liability
— 15,938 
Other long-term liabilities47 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 endedNine months ended
September 30,September 30,
2025202420252024
SBC - Research and development expenses$1,230 $982 $3,089 $2,588 
SBC - General and administrative expenses13,516 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 endedNine months ended
September 30,September 30,
2025202420252024
Risk-free interest rate3.7%4.4%4.0%4.3%
Dividend yield————
Expected volatility40.0%44.7%45.4%44.7%
Expected term (years)4.14.74.24.7
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 endedNine months ended
September 30,September 30,
2025202420252024
Weighted average shares outstanding:19,578 18,419 19,367 18,061 
Dilutive potential common shares:
     Restricted stock337 — 260 173 
     Stock options714 — 543 340 
Shares used to compute diluted income (loss) per share20,629 18,419 20,170 18,574 
Potentially dilutive shares excluded from calculation due to anti-dilutive effect3,541 1,099 1,898 1,815