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DEFERRED ROYALTY OBLIGATION RELATED TO THE SALE OF FUTURE ROYALTIES
 9 Months Ended
Sep. 30, 2025
Advance Royalties [Abstract]  
DEFERRED ROYALTY OBLIGATION RELATED TO THE SALE OF FUTURE ROYALTIES DEFERRED ROYALTY OBLIGATION RELATED TO THE SALE OF FUTURE ROYALTIES
We and HCR have an agreement in which HCR agreed to pay up to $20.0 million in exchange for royalty and commercialization milestone payments that we may receive under our Kyowa Kirin Agreement. See Note 8. Deferred Royalty Obligation Related to the Sale of Future Royalties of our 2024 Form 10-K for further discussion on the nature, purpose, significant rights and obligations of the parties, as well as our accounting policies regarding the HCR Agreement.
A summary of financial information related to the HCR Agreement is as follows:
Three Months Ended September 30,Nine Months Ended September 30,
($ in thousands)
2025202420252024
Non-cash interest expense related to the sale of future royalties$(2,188)$(1,924)$(6,478)$(5,202)
Effective interest rate31.5 %33.3 %
(in thousands)20252024
Deferred royalty obligation balance as of January 1,
$25,527 $20,179 
Non-cash interest expense related to sale of future royalties
6,478 5,202 
Royalty distributed to HCR
(3,379)(1,009)
Deferred royalty obligation balance as of September 30,$28,626 $24,372