FAIR VALUE MEASUREMENTS
The following table presents information about our financial instruments that are measured at fair value on
a recurring basis as of December 31, 2025 and 2024 and indicates the fair value category assigned.
Fair Value Measurements at Reporting Date Using
(In thousands)
Level 1
Level 2
Level 3
Total
As of December 31, 2025:
Assets:
Money market funds(1)(2)
$50,557
$
$
$50,557
Certificate of deposit(2)
274
274
Municipal securities(3)
10,041
10,041
U.S. Treasury securities(3)(4)
22,951
22,951
Commercial paper(3)
84,382
84,382
Corporate notes(3)(4)
209,253
209,253
Total
$50,831
$326,627
$
$377,458
Liabilities:
Sale of future royalties(5)(6)
$129,582
129,582
Total
$
$
$129,582
$129,582
As of December 31, 2024:
Assets:
Money market funds(1)(2)
$46,802
$
$
$46,802
Certificate of deposit(2)
273
273
U.S. Treasury securities(3)(4)
30,570
30,570
Government-sponsored enterprise securities(3)(4)
8,748
8,748
Commercial paper(3)
185,201
185,201
Corporate notes(3)(4)
202,527
202,527
Total
$47,075
$427,046
$
$474,121
Liabilities:
Sale of future royalties(5)(6)
124,793
124,793
Total
$
$
$124,793
$124,793
(1)Included in cash and cash equivalents on our consolidated balance sheets.
(2)Included in restricted cash on our consolidated balance sheets.
(3)Included in current portion of marketable securities on our consolidated balance sheets.
(4)Included in noncurrent portion of marketable securities on our consolidated balance sheets.
(5)Included in current portion of liabilities related to sale of future royalties on our consolidated balance
sheets.
(6)Included in noncurrent portion of liabilities related to sale of future royalties on our consolidated balance
sheets.
Money market funds and certificates of deposit are categorized as Level 1 within the fair value hierarchy as
their fair values are based on quoted prices available in active markets. Commercial paper, U.S. Treasury securities,
municipal securities, government-sponsored enterprise securities and corporate notes are categorized as Level 2 within the
fair value hierarchy as their fair values are estimated by using pricing models, quoted prices of securities with similar
characteristics or discounted cash flows.
There were no transfers between Level 1, Level 2, and Level 3 during the periods presented. There have
been no impairments of our assets measured and carried at fair value as of December 31, 2025 and 2024. In addition, there
have been no changes to our valuation techniques as of December 31, 2025 and 2024.
The embedded derivatives are classified within Level 3 of the fair value hierarchy. See Note 10 on Debt.
We determined the fair value of the liability related to the sale of future royalties based on our current
estimates of future royalties expected to be paid to Royalty Pharma over the life of the arrangement, which are considered
Level 3. See Note 10 on Debt.

Historical Timeline

Fiscal YearFiled
2025Mar 2, 2026Showing above
2024Feb 27, 2025
2023Feb 28, 2024
2022Mar 16, 2023
2021Mar 10, 2022
2020Mar 11, 2021
2019Mar 12, 2020
2018Mar 7, 2019
2017Mar 16, 2018
2016Mar 1, 2017
2015Mar 10, 2016

About Fair Value Disclosures

Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.

Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.