XML 20 R13.htm IDEA: XBRL DOCUMENT v3.24.3
Fair Value Measurements
 9 Months Ended
Sep. 30, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements

3. Fair Value Measurements

The following table sets forth the fair value of the Company’s financial assets and liabilities measured on a recurring basis by level within the fair value hierarchy:

 

 

 

September 30, 2024

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

(in thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

60,363

 

 

$

60,363

 

 

$

-

 

 

$

-

 

Commercial paper

 

 

76,720

 

 

-

 

 

 

76,720

 

 

 

-

 

Corporate debt securities

 

 

53,633

 

 

-

 

 

 

53,633

 

 

 

-

 

Asset-backed securities

 

 

58,161

 

 

-

 

 

 

58,161

 

 

 

-

 

U.S. government securities

 

 

134,237

 

 

 

134,237

 

 

 

-

 

 

 

-

 

U.S. agency securities

 

 

4,977

 

 

-

 

 

 

4,977

 

 

 

-

 

Total

 

$

388,091

 

 

$

194,600

 

 

$

193,491

 

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2023

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

(in thousands)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

56,397

 

 

$

56,397

 

 

$

-

 

 

$

-

 

Commercial paper

 

 

82,152

 

 

 

-

 

 

 

82,152

 

 

 

-

 

Corporate debt securities

 

 

61,894

 

 

 

-

 

 

 

61,894

 

 

 

-

 

Equity securities

 

 

41,937

 

 

 

41,937

 

 

 

-

 

 

 

-

 

Asset-backed securities

 

 

10,505

 

 

 

-

 

 

 

10,505

 

 

 

-

 

U.S. government securities

 

 

113,652

 

 

 

113,652

 

 

 

-

 

 

 

-

 

U.S. agency securities

 

 

4,961

 

 

 

-

 

 

 

4,961

 

 

 

-

 

Total

 

$

371,498

 

 

$

211,986

 

 

$

159,512

 

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Where applicable, the Company uses quoted market prices in active markets for identical assets to determine fair value. This pricing methodology applies to Level 1 investments, which are comprised of money market funds and U.S. government securities.

If quoted prices in active markets for identical assets are not available, then the Company uses quoted prices for similar assets or inputs other than quoted prices that are observable, either directly or indirectly. These investments are included in Level 2 and consist of commercial paper, corporate debt securities, asset-backed securities, and U.S. agency securities. These assets are valued using market prices when available, adjusting for accretion of the purchase price to face value at maturity.

A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires management to make judgments and consider factors specific to the asset or liability.

In certain cases where there is limited activity or less transparency around inputs to valuation, securities are classified as Level 3 within the valuation hierarchy. As of September 30, 2024 and December 31, 2023, the deferred royalty obligation related to the sale of future Vaxcyte royalties was classified as Level 3 within the valuation hierarchy. Refer to Note 8 below for information relating to the Purchase Agreement between the Company and Blackstone, pursuant to which the Company sold to Blackstone its 4% royalty, or revenue interest, in potential future net sales of Vaxcyte’s pneumococcal conjugate vaccine, or PCV, products, including VAX-24 and VAX-31.

Investment in Equity Securities

During the three and nine months ended September 30, 2024, the Company sold 667,780 shares of Vaxcyte common stock it held at their fair market value of approximately $74.0 million, net of transaction costs.

During the three and nine months ended September 30, 2024, the Company recognized a gain of $23.7 million and $32.1 million on the Vaxcyte common stock sold, respectively, which is recorded under interest and other income (expense), net, in the Statements of Operations. No shares of Vaxcyte common stock were sold during the three and nine months ended September 30, 2023.

As of September 30, 2024, the Company did not hold any shares of Vaxcyte common stock. As of December 31, 2023, the Company held 667,780 shares of Vaxcyte common stock with an estimated fair value of $41.9 million.