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Marketable Debt and Equity Securities | 6 Months Ended
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Jun. 30, 2024
Marketable Securities [Abstract] |
Marketable Debt and Equity Securities | Marketable Debt and Equity Securities The Company’s marketable debt securities held as of June 30, 2024 and December 31, 2023 are summarized below:
June 30, 2024 |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
(in thousands) |  |  |  |  |  |  |  |
Money Market Funds |  | $ | 11,624 |  |  | $ | — |  |  | $ | — |  |  | $ | 11,624 |
Corporate Securities |  | 211,930 |  |  | 6 |  |  | (279) |  |  | 211,657 |
Government Securities |  | 342,945 |  |  | 6 |  |  | (374) |  |  | 342,577 |
|  | $ | 566,499 |  |  | $ | 12 |  |  | $ | (653) |  |  | $ | 565,858 |
Reported as |  |  |  |  |  |  |  |
Cash and cash equivalents |  |  |  |  |  |  |  | $ | 11,624 |
Marketable securities |  |  |  |  |  |  |  | 554,234 |
Total investments |  |  |  |  |  |  |  | $ | 565,858 |
December 31, 2023 |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
(in thousands) |  |  |  |  |  |  |  |
Money Market Funds |  | $ | 25,520 |  |  | $ | — |  |  | $ | — |  |  | $ | 25,520 |
Corporate Securities |  | 228,382 |  |  | 342 |  |  | (1) |  |  | 228,723 |
Government Securities |  | 413,553 |  |  | 1,037 |  |  | (76) |  |  | 414,514 |
|  | $ | 667,455 |  |  | $ | 1,379 |  |  | $ | (77) |  |  | $ | 668,757 |
Reported as |  |  |  |  |  |  |  |
Cash and cash equivalents |  |  |  |  |  |  |  | $ | 25,520 |
Marketable securities |  |  |  |  |  |  |  | 643,237 |
Total investments |  |  |  |  |  |  |  | $ | 668,757 |
The maturities of the Company’s marketable debt securities as of June 30, 2024 are as follows:
June 30, 2024 |  | Amortized Cost |  | Estimated Fair Value
(in thousands) |  |  |  |
Mature in one year or less |  | $ | 449,715 |  |  | $ | 449,372 |
Mature within two years |  | 105,160 |  |  | 104,862 |
|  | $ | 554,875 |  |  | $ | 554,234 |
The unrealized losses on available-for-sale investments and their related fair values as of June 30, 2024 and December 31, 2023 are as follows:
|  | Less than 12 months |  | 12 months or greater
June 30, 2024 |  | Fair value |  | Unrealized losses |  | Fair value |  | Unrealized losses
(in thousands) |  |  |  |  |  |  |  |
Corporate Securities |  | $ | 119,044 |  |  | $ | (217) |  |  | $ | 11,895 |  |  | $ | (62) |
Government Securities |  | 246,154 |  |  | (132) |  |  | 79,478 |  |  | (242) |
|  | $ | 365,198 |  |  | $ | (349) |  |  | $ | 91,373 |  |  | $ | (304) |
|  | Less than 12 months |  | 12 months or greater
December 31, 2023 |  | Fair value |  | Unrealized losses |  | Fair value |  | Unrealized losses
(in thousands) |  |  |  |  |  |  |  |
Corporate Securities |  | $ | 8,073 |  |  | $ | (1) |  |  | $ | — |  |  | $ | — |
Government Securities |  | 66,546 |  |  | (76) |  |  | — |  |  | — |
|  | $ | 74,619 |  |  | $ | (77) |  |  | $ | — |  |  | $ | — |
The unrealized losses from the available-for-sale securities are due to changes in the interest rate environment and not changes in the credit quality of the underlying securities in the portfolio. The Company’s equity securities include securities with a readily determinable fair value. These investments are carried at fair value with changes in fair value recognized each period and reported within other income (expense), net. For the three and six months ended June 30, 2024, net losses of $12.0 million and $9.7 million were recorded under other income (expense) related to these securities. For the three and six months ended June 30, 2023, a net gain of $0.3 million and a net loss of $2.6 million were recorded under other income (expense). Equity securities with a readily determinable fair value, which are categorized as Level 1 in the fair value hierarchy under ASC 820, and their fair values (in thousands) as of June 30, 2024 and December 31, 2023 are as follows:
| Fair Value |  | Fair Value
| June 30, 2024 |  | December 31, 2023
Astria Common Stock | $ | 2,311 |  |  | $ | 5,360 |
INmune Common Stock | 16,630 |  |  | 21,231 |
Viridian Common Stock | 9,330 |  |  | 15,619 |
| $ | 28,271 |  |  | $ | 42,210 |
The Company sold 443,909 shares of common stock of Astria Therapeutics, Inc. (Astria) and held 253,958 shares of common stock of Astria as of June 30, 2024. In July 2024, the Company sold the remaining shares of the common stock of Astria. The common stock has a readily determinable fair value. For the remaining equity interest in Astria held at June 30, 2024, the Company recorded an unrealized loss of $1.3 million and an unrealized gain of $0.4 million for the three and six months ended June 30, 2024, respectively. The Company recorded unrealized losses of $3.5 million and $3.9 million related to its equity interest in Astria for the three and six months ended June 30, 2023, respectively. The Company currently holds 1,885,533 shares of common stock of INmune Bio, Inc. (INmune). The 1,885,533 shares of INmune common stock are classified as equity securities with a readily determinable fair value. For the three and six months ended June 30, 2024, the Company recorded unrealized losses of $5.5 million and $4.6 million, respectively, related to its investment in INmune. For the three and six months ended June 30, 2023, the Company recorded unrealized gains of $4.9 million and $5.2 million, respectively. The Company currently holds 717,144 shares of common stock of Viridian Therapeutics, Inc. (Viridian). The shares of Viridian common stock are classified as equity securities with a readily determinable fair value. The Company recorded unrealized losses of $3.2 million and $6.3 million for the three and six months ended June 30, 2024, respectively. The Company recorded unrealized losses of $1.2 million and $3.9 million for the three and six months ended June 30, 2023, respectively, related to the shares of Viridian common stock. Below is a reconciliation of net gain (loss) recorded on equity securities during the three and six months ended June 30, 2024 and 2023:
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2024 |  | 2023 |  | 2024 |  | 2023
Net gain (loss) recorded on equity securities | $ | (12,027) |  |  | $ | 288 |  |  | $ | (9,702) |  |  | $ | (2,610) |
Less: Net gain (loss) recorded on sale of equity securities | (2,012) |  |  | — |  |  | 827 |  |  | — |
Unrealized gain (loss) recorded on equity securities held at the reporting date | $ | (10,015) |  |  | $ | 288 |  |  | $ | (10,529) |  |  | $ | (2,610) |
The Company also has investments in equity securities without a readily determinable fair value. The Company elects the measurement alternative to record these investments at their initial cost and evaluates such investments at each reporting period for evidence of impairment, or observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Equity securities without a readily determinable fair value and their carrying values (in thousands) as of June 30, 2024 and December 31, 2023 are as follows:
| Carrying Value |  | Carrying Value
| June 30, 2024 |  | December 31, 2023
Zenas Preferred Stock | $ | 43,780 |  |  | $ | 64,210 |
The Company currently holds an equity interest in Zenas BioPharma, Inc. (Zenas), a private biotechnology company. The Company’s equity interests include preferred stock in Zenas which were received as upfront payments and a milestone payment for licensing certain clinical and preclinical assets from the Company. The Company elected the measurement alternative to carry the Zenas equity at cost minus impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. During the six months ended June 30, 2024, we recorded $20.4 million of impairment charge as a result of Zenas closing a Series C financing transaction on May 3, 2024.

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