Fair value of financial instruments and marketable securities - (Tables)
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12 Months Ended |
Dec. 31, 2020 |
Fair Value Disclosures [Abstract] |
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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 |
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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 |
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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 |
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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 |
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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 |
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