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Equity Investments

3 Months Ended

Mar. 31, 2021

Equity Method Investments And Joint Ventures [Abstract]

Equity Investments

(11)	Equity Investments

The Company classifies the Nimbus investment as an equity investment within the condensed consolidated balance sheets. The initial Nimbus investment was received as compensation for collaboration services provided under a separate service agreement. The Company held 6.6% and 6.9% of Nimbus units on a fully diluted basis as of March 31, 2021 and December 31, 2020, respectively.

As Nimbus is a limited liability company and the Company is not a passive investor due to its collaboration with Nimbus on a number of drug discovery targets, the Company's management determined that it has significant influence over the entity and therefore accounts for the entity as an equity method investment.

The Company provides collaboration services for Nimbus under the terms of a master services agreement executed on May 18, 2010, as amended. Collaboration agreements are separate from the transaction that resulted in equity ownership and related fees are paid in cash to the Company.

Under the HLBV method, the Company reported losses of zero and $1,008 on the Nimbus investment for the three months ended March 31, 2021 and 2020, respectively. The carrying value of the Nimbus investment was zero as of March 31, 2021 and December 31, 2020. The Company has no obligation to fund Nimbus losses in excess of its initial investment.

The Company accounts for its investment in Morphic at fair value based on the share price of Morphic’s common stock at the measurement date.

For the three months ended March 31, 2021, the Company reported a gain of $24,824 on the Morphic investment. For the three months ended March 31, 2020, the Company reported a loss of $2,071 on the Morphic investment. As of March 31, 2021 and December 31, 2020, the carrying value of the Company’s investment in Morphic was $52,837 and $28,013, respectively.

During May 2020, Petra entered into a merger agreement with a third party. In connection with the merger, the Company received $4,582 of merger consideration in exchange for the Company’s shares of Petra common stock and is eligible to receive potential earn-outs tied to the achievement of specified development, regulatory, and commercial milestones. The Company is also eligible to receive $361 in escrow payments. As the escrow payments are expected to be received within 12 months from the closing of the merger, they have been recorded as other receivables within the condensed consolidated balance sheets.

In connection with the Petra merger, the Company also received 2,676,191 shares of common stock of Ravenna Pharmaceuticals, Inc. (“Ravenna”). The Company does not exercise significant influence over Ravenna and, as such, the Company has recorded its investment in Ravenna as a non-marketable equity security. As of each of March 31, 2021 and December 31, 2020, the carrying value of non-marketable equity securities was $94.

In July 2020, Relay successfully completed an initial public offering. The Company accounts for its investment in Relay at fair value based on the share price of Relay’s common stock at the measurement date. In January 2021, the Company disposed of its equity stake in Relay for aggregate consideration of $15,735, resulting in a loss of $1,821 for the three months ended March 31, 2021. There was no gain or loss on the Relay investment for the three months ended March 31, 2020, as Relay was not a public company during this period. As of December 31, 2020, the carrying value of the Company’s investment in Relay was $17,556.