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Fair value of financial instruments and marketable securities - (Tables)
12 Months Ended
Dec. 31, 2020
Fair Value Disclosures [Abstract]  
Schedule of financial assets and liabilities that are required to be measured at fair value on a recurring basis

The following represents the fair value using the hierarchy described in Note 2 for the Company’s financial assets and liabilities that are required to be measured at fair value on a recurring basis as of December 31, 2020 and 2019:

December 31, 2020

 

 

Quoted prices

 

Significant

 

 

in active

 

other

 

Significant

 

markets for

 

observable

 

unobservable

 

identical assets

 

inputs

 

inputs

    

Total

    

(level 1)

    

(level 2)

    

(level 3)

Marketable securities

$

894,838

$

$

894,838

$

Equity investment in ClearPoint

$

20,503

$

20,503

$

$

ClearPoint convertible debt security

$

29,252

$

$

29,252

$

Contingent consideration payable- development and regulatory milestones

$

139,200

$

$

$

139,200

Contingent consideration payable- net sales milestones and royalties

$

101,200

$

$

$

101,200

December 31, 2019

 

 

Quoted prices

 

Significant

 

 

in active

 

other

 

Significant

 

markets for

 

observable

 

unobservable

 

identical assets

 

inputs

 

inputs

    

Total

    

(level 1)

    

(level 2)

    

(level 3)

Marketable securities

$

398,535

$

$

398,535

$

Equity investment in ClearPoint

$

6,194

$

6,194

$

$

Stock appreciation rights liability

$

3,186

$

$

$

3,186

Deferred consideration payable

$

40,000

$

$

40,000

$

Contingent consideration payable- development and regulatory milestones

$

290,500

$

$

$

290,500

Contingent consideration payable- net sales milestones and royalties

$

65,800

$

$

$

65,800

Summary of marketable securities accounted for as available-for-sale securities

The following is a summary of marketable securities accounted for as available-for-sale securities at December 31, 2020 and 2019:

December 31, 2020

 

Amortized

 

Gross Unrealized

    

Cost

    

Gains

    

Losses

    

Fair Value

Commercial paper

$

276,855

$

19

$

(37)

$

276,837

Corporate debt securities

 

474,030

 

1,658

 

(29)

 

475,659

Asset-backed securities

 

28,681

 

210

 

(3)

 

28,888

Government obligations

113,372

88

(6)

113,454

Total

$

892,938

$

1,975

$

(75)

$

894,838

December 31, 2019

 

Amortized

 

Gross Unrealized

    

Cost

    

Gains

    

Losses

    

Fair Value

Commercial paper

$

157,936

$

162

$

$

158,098

Corporate debt securities

 

188,778

 

576

 

(20)

 

189,334

Asset-backed securities

51,062

49

(8)

51,103

Total

$

397,776

$

787

$

(28)

$

398,535

Summary of unrealized losses and fair values of available-for-sale securities in a continuous unrealized loss position

The unrealized losses and fair values of available-for-sale securities that have been in an unrealized loss position for a period of less than and greater than 12 months as of December 31, 2020 are as follows:

December 31, 2020

 

Securities in an unrealized loss

 

Securities in an unrealized loss

 

 

position less than 12 months

 

position greater than 12 months

Total

    

Unrealized losses

    

Fair Value

    

Unrealized losses

    

Fair Value

    

Unrealized losses

    

Fair Value

Commercial paper

$

(37)

129,630

(37)

129,630

Corporate debt securities

(29)

102,426

(29)

102,426

Asset-backed securities

 

(3)

 

1,830

 

 

 

(3)

 

1,830

Government obligations

(6)

27,084

(6)

27,084

Total

$

(75)

$

260,970

$

$

$

(75)

$

260,970

The unrealized losses and fair values of available-for-sale securities that have been in an unrealized loss position for a period of less than and greater than 12 months as of December 31, 2019 are as follows:

December 31, 2019

 

Securities in an unrealized loss

 

Securities in an unrealized loss

 

 

position less than 12 months

 

position greater than 12 months

Total

    

Unrealized losses

    

Fair Value

    

Unrealized losses

    

Fair Value

    

Unrealized losses

    

Fair Value

Corporate debt securities

$

(20)

$

71,779

$

$

$

(20)

$

71,779

Asset-backed securities

(8)

24,211

(8)

24,211

Total

$

(28)

$

95,990

$

$

$

(28)

$

95,990

Schedule of marketable securities on the balance sheet

Marketable securities on the balance sheet at December 31, 2020 and 2019 mature as follows:

December 31, 2020

 

Less Than

 

More Than

    

12 Months

    

12 Months

Commercial paper

$

276,837

$

Corporate debt securities

 

240,139

 

235,520

Asset-backed securities

 

6,363

 

22,525

Government obligations

65,524

47,930

Total Marketable securities

$

588,863

$

305,975

December 31, 2019

 

Less Than

 

More Than

    

12 Months

    

12 Months

Commercial paper

$

158,098

$

Corporate debt securities

 

139,596

 

49,738

Asset-backed securities

44,724

6,379

Total Marketable securities

$

342,418

$

56,117

Summary of changes in the fair value of the Company's Level 3 valuation for warrant liability and SARs liability

The table presented below is a summary of changes in the fair value of the Company’s Level 3 valuation for the SARs liability and the contingent consideration payables for the years ended December 31, 2020, and 2019:

Level 3 liabilities

Contingent consideration payable-

Contingent consideration payable-

development and regulatory

net sales milestones and royalties

    

SARs

    

milestones - Agilis

    

- Agilis

Beginning balance as of December 31, 2018

$

3,814

$

257,040

$

53,200

Additions

 

 

 

Change in fair value

 

3,187

 

33,460

 

12,600

Payments

$

(3,815)

$

$

Ending balance as of December 31, 2019

 

3,186

 

290,500

 

65,800

Additions

 

 

 

Change in fair value

 

 

(12,120)

 

35,400

Payments

 

(3,186)

 

 

Rights Exchange settlement

(139,180)

Ending balance as of December 31, 2020

$

$

139,200

$

101,200

The following significant unobservable inputs were used in the valuation of the contingent consideration payables for the years ended December 31, 2020 and 2019 and of the SARS liability for the year ended December 31, 2019:

December 31, 2020

    

Fair Value

    

Valuation Technique

    

Unobservable Input

    

Range

Contingent consideration payable-
development and regulatory milestones

$139,200

 

 Probability-adjusted discounted cash flow 

 

Potential development and regulatory milestones
Probabilities of success
Discount rates
Projected years of payments

$0 - $381 million
25% - 94%
2.2% - 4.5%
2021 - 2028

Contingent considerable payable- net sales
milestones and royalties

$101,200

 

Option-pricing model with Monte Carlo simulation  

 

Potential net sales milestones
Probabilities of success
Potential percentage of net sales for royalties
Discount rate
Projected years of payments

$0 - $150 million
25% - 94%
2% - 6%
11.5%
2022 - 2040

December 31, 2019

    

Fair Value

    

Valuation Technique

    

Unobservable Input

    

Range

SARs

$3,186

Option-pricing model

 

Volatility
Risk free interest rate
Strike price
Fair value of common stock
Expected life

 

28.93%
0.19%
$6.76 - $30.86
$48.03
0.01 years

Contingent consideration payable- development and regulatory milestones

$290,500

Probability-adjusted discounted cash flow

Potential development and regulatory milestones
Probabilities of success
Discount rates
Projected years of payments

$0 - $555 million
25% - 94%
2.2% - 4.7%
2020 - 2026

Contingent considerable payable- net sales milestones and royalties

$65,800

 

Option-pricing model with Monte Carlo simulation

 

Potential net sales milestones
Probabilities of success
Potential percentage of net sales for royalties
Discount rate
Projected years of payments

$0 - $150 million
25% - 89%
2% - 6%
14.5%
2021 - 2038