XML 20 R10.htm IDEA: XBRL DOCUMENT
v3.23.1

FAIR VALUE MEASUREMENTS | 3 Months Ended
--- | ---
Mar. 31, 2023
Fair Value Disclosures [Abstract] |
FAIR VALUE MEASUREMENTS | 4. FAIR VALUE MEASUREMENTS The Company has certain financial assets and liabilities that are recorded at fair value which have been classified as Level 1, 2 or 3 within the fair value hierarchy as described in the accounting standards for fair value measurements. • Level 1 — quoted prices for identical instruments in active markets; • Level 2 — quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and • Level 3 — valuations derived from valuation techniques in which one or more significant value drivers are unobservable. During the three and twelve months ended March 31, 2023 and December 31, 2022, there were no transfers into or out of Level 3. The tables below present information about the Company’s financial assets and liabilities that are measured and carried at fair value and indicate the level within the fair value hierarchy of the valuation techniques it utilizes to determine such fair value:
|  | Fair Value Measurement as of March 31, 2023 |
|  | Total |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
|  | (in thousands) |
Assets |  |  |  |  |  |  |  |  |  |  |  |
Money market funds |  | $ | 450,407 |  |  | $ | 450,407 |  |  | $ | — |  |  | $ | — |
Commercial paper |  |  | 208,937 |  |  |  | — |  |  |  | 208,937 |  |  |  | — |
Government and government agency bonds |  |  | 844,838 |  |  |  | — |  |  |  | 844,838 |  |  |  | — |
Corporate bonds |  |  | 15,723 |  |  |  | — |  |  |  | 15,723 |  |  |  | — |
Strategic investments |  |  | 31,000 |  |  |  | — |  |  |  | — |  |  |  | 31,000 |
Certificates of deposit |  |  | 21,143 |  |  |  | — |  |  |  | 21,143 |  |  |  | — |
Total assets |  | $ | 1,572,048 |  |  | $ | 450,407 |  |  | $ | 1,090,641 |  |  | $ | 31,000 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |
Contingent consideration |  | $ | 36,900 |  |  | $ | — |  |  | $ | — |  |  | $ | 36,900 |
Total liabilities |  | $ | 36,900 |  |  | $ | — |  |  | $ | — |  |  | $ | 36,900 |
|  | Fair Value Measurement as of December 31, 2022 |
|  | Total |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
|  | (in thousands) |
Assets |  |  |  |  |  |  |  |  |  |  |  |
Money market funds |  | $ | 467,553 |  |  | $ | 467,553 |  |  | $ | — |  |  | $ | — |
Commercial paper |  |  | 211,369 |  |  |  | — |  |  |  | 211,369 |  |  |  | — |
Government and government agency bonds |  |  | 807,540 |  |  |  | — |  |  |  | 807,540 |  |  |  | — |
Corporate bonds |  |  | 125,741 |  |  |  | — |  |  |  | 125,741 |  |  |  | — |
Strategic investments |  |  | 31,321 |  |  |  | 321 |  |  |  | — |  |  |  | 31,000 |
Certificates of deposit |  |  | 42,745 |  |  |  | — |  |  |  | 42,745 |  |  |  | — |
Total assets |  | $ | 1,686,269 |  |  | $ | 467,874 |  |  | $ | 1,187,395 |  |  | $ | 31,000 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |
Contingent consideration |  | $ | 36,900 |  |  | $ | — |  |  | $ | — |  |  | $ | 36,900 |
Total liabilities |  | $ | 36,900 |  |  | $ | — |  |  | $ | — |  |  | $ | 36,900 |
The Company’s assets with a fair value categorized as Level 1 within the fair value hierarchy primarily include money market funds. The Company's assets with a fair value categorized as Level 2 within the fair value hierarchy consist of commercial paper, government and government agency bonds, corporate bonds and certificates of deposit. These assets have been initially valued at the transaction price and subsequently valued at the end of each reporting period utilizing third-party pricing services. The Company uses observable market inputs to determine value, which primarily consist of reportable trades. Certain of the short-term investments with original maturities of less than three months are presented as cash equivalents on the unaudited condensed consolidated balance sheets as of March 31, 2023. The Company’s assets with a fair value categorized as Level 3 within the fair value hierarchy consist of a strategic investment in Series A preferred stock of Lacerta Therapeutics, Inc. (“Lacerta”) and strategic investments in two other private companies. For more information related to Lacerta, please read Note 3, License and Collaboration Agreements to the financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. The fair value of the Lacerta investment was initially based on a cost approach corroborated by the Black-Scholes-Merton option-pricing model. The most significant assumptions in the option pricing model include historical volatility of similar public companies, estimated term through Lacerta’s potential exit and a risk-free rate based on certain U.S. Treasury rates. The investments in the other two private companies are recorded at fair value at the time of purchase as measured by their respective investment cost. At the end of each reporting period, the fair value of the Company's strategic investments will be adjusted if the issuers were to issue similar or identical securities or when there is a triggering event for impairment. There were no valuation measurement events related to the fair value of the Company's Level 3 strategic investments during the three months ended March 31, 2023 or 2022, as no impairment indicators were identified nor were similar securities issued. The Company’s contingent consideration liability with a fair value categorized as Level 3 within the fair value hierarchy relates to the regulatory-related contingent payments to Myonexus Therapeutics, Inc. (“Myonexus”) selling shareholders as well as to two academic institutions under separate license agreements that meet the definition of a derivative. For more information related to Myonexus, please read Note 3, License and Collaboration Agreements to the financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. The contingent consideration liability was estimated using an income approach based on the probability-weighted expected cash flows that incorporated industry-based probability adjusted assumptions relating to the achievement of the milestone and thus the likelihood of making the payments. This fair value measurement was based upon significant inputs not observable in the market and therefore represented a Level 3 measurement. Significant changes which increase or decrease the probabilities of achieving the milestone, or shorten or lengthen the time required to achieve the milestone, would result in a corresponding increase or decrease in the fair value of the liability. At the end of each reporting period, the fair value is adjusted to reflect the most current assumptions through earnings. For both the three months ended March 31, 2023 and 2022, there were no changes to the fair value of the contingent consideration liability. As of March 31, 2023, the contingent consideration was recorded as a non-current liability on the Company's unaudited condensed consolidated balance sheets. The carrying amounts reported in the unaudited condensed consolidated balance sheets for cash and cash equivalents, accounts receivable and accounts payable approximated fair value because of the immediate or short-term maturity of these financial instruments

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure of the fair value measurement of assets and liabilities, which includes financial instruments measured at fair value that are classified in shareholders' equity, which may be measured on a recurring or nonrecurring basis. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -URI https://asc.fasb.org/topic&trid=2155941 + Details
Name: | us-gaap_FairValueMeasurementInputsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration