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Fair value measurements
 12 Months Ended
Dec. 31, 2017
Fair value measurements [Abstract]  
Fair value measurements
5. Fair value measurements

Contingent consideration are liabilities measured at fair value on a recurring basis. For the year ended December 31, 2017, the contingent consideration for ACAM2000 increased by $5.3 million and the remaining $7.5 million regulatory milestone was paid. For the year ended December 31, 2017 and 2016, the contingent consideration obligation associated with the EV-035 series of molecules and the broad spectrum antiviral platform program decreased by $0.2 million and $5.4 million, respectively. The changes are primarily due to the estimated timing and probability of success for certain development and regulatory milestones of the program, which are inputs that have no observable market (Level 3). These changes are classified in the Company's statement of operations as both selling, general and administrative expense and research and development expense.

For the years ended December 31, 2017 and 2016, the contingent consideration obligations associated with RSDL increased by $2.7 million and decreased by $5.4 million, respectively. The changes in the fair value of the RSDL contingent consideration obligations are primarily due to the expected amount and timing of future net sales, which are inputs that have no observable market (Level 3). These changes are classified in the Company's statement of operations as cost of product sales and contract manufacturing.

The following table is a reconciliation of the beginning and ending balance of the liabilities measured at fair value using significant unobservable inputs (Level 3) during the years ended December 31, 2017 and 2016.

(in thousands)
   
Balance at December 31, 2015
 
$
25,155
 
(Income) expense included in earnings
  
(10,857
)
Settlements
  
(1,113
)
Balance at December 31, 2016
 
$
13,185
 
(Income) expense included in earnings
  
7,830
 
Settlements
  
(10,941
)
Purchases, sales and issuances
  
2,200
 
Balance at December 31, 2017
 
$
12,274
 

Separate disclosure is required for assets and liabilities measured at fair value on a recurring basis from those measured at fair value on a non-recurring basis. As of December 31, 2017 and 2016, there were no assets or liabilities measured at fair value on a non-recurring basis.