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Condensed Consolidated Financial Statement Details | 3 Months Ended
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Mar. 31, 2025
Inventory Disclosure [Abstract] |
Condensed Consolidated Financial Statement Details | Note 3 — Condensed Consolidated Financial Statement Details Other Current Assets Other current assets consist of the following (in thousands):
|  | March 31, 2025 |  |  | December 31, 2024 |
Prepaid research and development expenses |  | $ | 7,359 |  |  | $ | 1,947 |
Interest and other non-trade receivables |  |  | 1,714 |  |  |  | 1,609 |
Other prepaid expenses |  |  | 2,208 |  |  |  | 2,510 |
Total other current assets |  | $ | 11,281 |  |  | $ | 6,066 |
Accrued Expenses Accrued expenses consist of the following (in thousands):
|  | March 31, 2025 |  |  | December 31, 2024 |
Accrued compensation |  | $ | 5,026 |  |  | $ | 2,832 |
Accrued research and development expenses |  |  | 11,819 |  |  |  | 14,453 |
Accrued contract termination costs |  |  | 2,825 |  |  |  | 2,767 |
Other accrued expenses |  |  | 11,584 |  |  |  | 9,920 |
Total accrued expenses |  | $ | 31,254 |  |  | $ | 29,972 |
Liabilities Related to the Sales of Future Royalties In 2012 and 2020, we sold to RPI Finance Trust (RPI) and entities managed by Healthcare Royalty Management, LLC (HCR), respectively, our rights to receive royalties under our license and manufacturing agreements with certain pharmaceutical partners under the 2012 Purchase and Sale Agreement and the 2020 Purchase and Sale Agreement, respectively. We account for these transactions as debt and recognize non-cash royalty revenue and non-cash interest expense to amortize the proceeds over the lives of the respective arrangements. We periodically update our prospective non-cash interest rate based on our estimates of future royalties. As of March 31, 2025, our imputed interest rate for the arrangement with HCR was 23%. The original 2020 Purchase and Sale Agreement was to expire -- and wherein the right to receive royalties would revert to us -- if HCR received aggregate royalties of $210.0 million on or prior to December 31, 2025 (the 2025 Threshold), or, if the 2025 Threshold was not achieved by December 31, 2025, when HCR received aggregate royalties of $240.0 million. On March 4, 2024, Nektar and HCR amended the original 2020 Purchase and Sale Agreement (the Amendment), pursuant to which the parties agreed to remove our reversionary rights in the royalties in exchange for a $15.0 million payment from HCR. Accordingly, HCR will receive all future royalties of the products, and none of these royalties will return to Nektar. We accounted for the Amendment as a modification of the existing arrangement, and therefore recorded the $15.0 million proceeds as an increase to the liability. The following is a reconciliation of the changes in our liabilities related to the sales of future royalties for the three months ended March 31, 2025 (in thousands):
|  | Three Months Ended March 31, 2025 |
|  | 2012 Purchase and Sale Agreement |  |  | 2020 Purchase and Sale Agreement |  |  | Total |
Liabilities related to the sales of future royalties, net – beginning balance |  | $ | 7,197 |  |  | $ | 84,579 |  |  | $ | 91,776 |
Non-cash royalty revenue |  |  | (1,756 | ) |  |  | (8,704 | ) |  |  | (10,460 | )
Non-cash interest expense |  |  | 672 |  |  |  | 4,302 |  |  |  | 4,974 |
Amortization of transaction costs |  |  | — |  |  |  | 32 |  |  |  | 32 |
Liabilities related to the sales of future royalties, net – ending balance |  | $ | 6,113 |  |  | $ | 80,209 |  |  | $ | 86,322 |

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- Definition The entire disclosure for inventory. Includes, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the classes of inventory, and the nature of the cost elements included in inventory. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 330 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/330/tableOfContent + Details
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