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Fair Value Measurements
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The Company measures and reports certain financial instruments as assets and liabilities at fair value on a recurring basis. The following tables set forth the fair value of the Company’s financial assets and liabilities at fair value on a recurring basis based on the three-tier fair value hierarchy (in thousands):
June 30, 2026
Level 1Level 2Level 3Total
Financial Assets:
Money market funds$139,330 $— $— $139,330 
U.S. government treasury securities256,457 — — 256,457 
U.S. government agency securities— 176,095 — 176,095 
Commercial paper— 425,578 — 425,578 
Corporate bonds— 146,141 — 146,141 
Total financial assets$395,787 $747,814 $— $1,143,601 
Liabilities:
CVR liability$— $38,620 $— $38,620 
Total liabilities$— $38,620 $— $38,620 
December 31, 2025
Level 1Level 2Level 3Total
Financial Assets:
Money market funds$74,004 $— $— $74,004 
U.S. government treasury securities266,064 — — 266,064 
U.S. government agency securities— 119,590 — 119,590 
Commercial paper— 194,355 — 194,355 
Corporate bonds— 100,790 — 100,790 
Total financial assets$340,068 $414,735 $— $754,803 
Liabilities:
CVR liability$— $— $26,680 $26,680 
Total liabilities$— $— $26,680 $26,680 
The Company measures the fair value of money market funds and U.S. government treasury securities on quoted prices in active markets for identical assets or liabilities. The Level 2 assets include U.S. government agency securities, commercial paper and corporate bonds, and are valued based on quoted prices for similar assets in active markets and inputs other than quoted prices that are derived from observable market data. The Company evaluates transfers between levels at the end of each reporting period. There were no financial asset transfers between Level 1, Level 2, or Level 3 during the periods presented.
CVR Liability
In connection with the Asset Acquisition, a non-transferable CVR was distributed to the Legacy Stockholders. Holders of the CVR are entitled to receive certain cash payments from proceeds received by the Company for a three-year period ending July 3, 2026, related to the disposition or monetization of the Company’s legacy assets for a period of one year following the closing of the Asset Acquisition.
As of December 31, 2025, the fair value of the CVR liability was determined using the probability weighted discounted cash flow method to estimate future cash flows associated with the sale of the legacy assets. Analogous to a dividend being declared/approved in one period and paid out in another, the liability was recorded at the date of approval, June 22, 2023, as a common stock dividend, returning capital to the Legacy Stockholders. Changes in fair value of the liability were recognized as a component of Other income (expense), net in the consolidated statement of operations and comprehensive loss in each reporting period. The liability value was based on significant inputs not observable in the market such as estimated cash flows, estimated probabilities of regulatory success, and discount rates, which represent a Level 3 measurement within the fair value hierarchy.
As of June 30, 2026, all contingencies related to the disposition or monetization of the Company’s legacy assets are resolved and the fair value of the CVR liability was determined by discounting future estimated payments to holders of the CVR. Changes in fair value of the liability will be recognized as a component of Other income (expense), net in the consolidated statement of operations and comprehensive loss in each reporting period. The liability is based on inputs observable in the market such as estimated discount rates which represent a Level 2 measurement within the fair value hierarchy.
The significant inputs used to estimate the fair value of the CVR liability were as follows:
June 30, 2026
Risk-adjusted discount rate
12.10%
The change in fair value between December 31, 2025 and June 30, 2026 was a $34.9 million increase, primarily driven by the achievement status of certain milestones and the receipt of certain cash consideration within the CVR term and time value of money adjustments, partially offset by a $22.9 million payment to CVR holders.
The following table presents changes in the CVR liability for the periods presented (in thousands):
CVR Liability
Beginning balance as of December 31, 2025$26,680 
Changes in the fair value of the CVR liability34,873 
Payments(22,933)
Ending Balance as of June 30, 2026$38,620