Ligand Pharmaceuticals (LGND) 10-Q 9 May 22 2022 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Mar. 31, 2022	May 05, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2022
Document Transition Report	false
Entity File Number	001-33093
Entity Registrant Name	LIGAND PHARMACEUTICALS INCORPORATED
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	77-0160744
Entity Address, Address Line One	5980 Horton Street, Suite 405
Entity Address, City or Town	Emeryville
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94608
City Area Code	858
Local Phone Number	550-7500
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	LGND
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		16,861,339
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Entity Central Index Key	0000886163
Current Fiscal Year End Date	--12-31

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 14,993	$ 19,522
Short-term investments	189,006	321,586
Accounts receivable, net	41,797	85,453
Inventory	25,614	27,326
Income taxes receivable	0	6,193
Other current assets	4,656	4,671
Total current assets	276,066	464,751
Deferred income taxes, net	35,655	34,482
Intangible assets, net	539,707	551,040
Goodwill	181,206	181,206
Commercial license rights, net	10,121	10,110
Property and equipment, net	24,584	20,511
Operating lease right-of-use assets	15,783	16,542
Financing lease right-of-use assets	15,620	16,207
Other assets	6,442	2,741
Total assets	1,105,184	1,297,590
Current liabilities:
Accounts payable	6,972	8,403
Accrued liabilities	15,877	17,579
Income taxes liability	5,800	0
Current contingent liabilities	1,524	2,588
Deferred revenue	10,503	10,996
Current operating lease liabilities	1,850	2,053
Current financing lease liabilities	52	46
Total current liabilities	42,578	41,665
2023 convertible senior notes, net	176,540	320,717
Long-term contingent liabilities	7,448	8,483
Deferred income taxes, net	39,480	59,095
Long-term operating lease liabilities	16,758	15,494
Other long-term liabilities	29,188	30,977
Total liabilities	311,992	476,431
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.001 par value; 5,000 shares authorized; zero issued and outstanding at March 31, 2022 and December 31, 2021	0	0
Common stock, $0.001 par value; 60,000 shares authorized; 16,861 and 16,767 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively	17	17
Additional paid-in capital	325,368	372,969
Accumulated other comprehensive loss	(1,031)	(917)
Retained earnings	468,838	449,090
Total stockholders' equity	793,192	821,159
Total liabilities and stockholders' equity	$ 1,105,184	$ 1,297,590

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands	Mar. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Preferred stock, par value (USD per share)	$ 0.001	$ 0.001
Preferred stock authorized (shares)	5,000	5,000
Preferred stock issued (shares)	0	0
Preferred stock outstanding (shares)	0	0
Common stock, par value (USD per share)	$ 0.001	$ 0.001
Common stock authorized (shares)	60,000	60,000
Common stock issued (shares)	16,861	16,767
Common stock outstanding (shares)	16,861	16,767

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Revenues:
Total revenues	$ 45,693	$ 55,150
Operating costs and expenses:
Cost of Captisol	4,699	8,153
Amortization of intangibles	11,813	11,786
Research and development	20,307	17,879
General and administrative	18,180	12,617
Total operating costs and expenses	54,999	50,435
Income (loss) from operations	(9,306)	4,715
Other income (expense):
Gain (loss) from short-term investments	(12,877)	13,061
Interest income	134	296
Interest expense	(789)	(5,831)
Other income (expense), net	2,698	(6,477)
Total other income (loss), net	(10,834)	1,049
Income (loss) before income taxes	(20,140)	5,764
Income tax benefit	4,755	12,342
Net income (loss)	$ (15,385)	$ 18,106
Earnings Per Share, Basic and Diluted:
Basic net income (loss) per share (USD per share)	$ (0.91)	$ 1.10
Shares used in basic per share calculations (in shares)	16,824	16,435
Diluted net income (loss) per share (USD per share)	$ (0.91)	$ 1.05
Shares used in diluted per share calculations (in shares)	16,824	17,248
Total revenue	$ 45,693	$ 55,150
Royalties
Revenues:
Total revenues	13,695	7,112
Earnings Per Share, Basic and Diluted:
Total revenue	13,695	7,112
Captisol
Revenues:
Total revenues	12,122	31,272
Earnings Per Share, Basic and Diluted:
Total revenue	12,122	31,272
Contract revenue
Revenues:
Total revenues	19,876	16,766
Earnings Per Share, Basic and Diluted:
Total revenue	$ 19,876	$ 16,766

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statement of Comprehensive Income [Abstract]
Net income (loss):	$ (15,385)	$ 18,106
Unrealized net loss on available-for-sale securities, net of tax	(114)	(55)
Comprehensive income (loss)	$ (15,499)	$ 18,051

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Adjustment	Common Stock	Additional paid in capital	Additional paid in capitalAdjustment	Accumulated other comprehensive loss	Retained earnings	Retained earningsAdjustment
Balance at beginning of period (shares) at Dec. 31, 2020			16,080
Balance at beginning of period at Dec. 31, 2020	$ 709,525		$ 16	$ 318,358		$ (801)	$ 391,952
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock under employee stock compensation plans, net of shares withheld for payroll taxes (shares)			572
Issuance of common stock under employee stock compensation plans, net of shares withheld for payroll taxes	20,581		$ 1	20,580
Share-based compensation	8,405			8,405
Unrealized net loss on available-for-sale securities, net of deferred tax	(55)					(55)
Warrant and bond hedge unwind transactions	396			396
Reacquisition of equity due to 2023 debt extinguishment, net of tax	(9,086)			(9,086)
Tax effect for 2023 Notes transactions	(2,032)			(2,032)
Net income (loss)	18,106						18,106
Balance at end of period (shares) at Mar. 31, 2021			16,652
Balance at end of period at Mar. 31, 2021	745,840		$ 17	336,621		(856)	410,058
Balance at beginning of period (shares) at Dec. 31, 2020			16,080
Balance at beginning of period at Dec. 31, 2020	$ 709,525		$ 16	318,358		(801)	391,952
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accounting Standards Update [Extensible List]	Accounting Standards Update 2020-06
Balance at end of period (shares) at Dec. 31, 2021			16,767
Balance at end of period at Dec. 31, 2021	$ 821,159	$ (15,997)	$ 17	372,969	$ (51,130)	(917)	449,090	$ 35,133
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock under employee stock compensation plans, net of shares withheld for payroll taxes (shares)			94
Issuance of common stock under employee stock compensation plans, net of shares withheld for payroll taxes	(5,515)			(5,515)
Share-based compensation	9,044			9,044
Unrealized net loss on available-for-sale securities, net of deferred tax	(114)					(114)
Net income (loss)	(15,385)						(15,385)
Balance at end of period (shares) at Mar. 31, 2022			16,861
Balance at end of period at Mar. 31, 2022	$ 793,192		$ 17	$ 325,368		$ (1,031)	$ 468,838

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash flows from operating activities:
Net income (loss)	$ (15,385)	$ 18,106
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Change in estimated fair value of contingent liabilities	(1,035)	1,684
Depreciation and amortization of intangible assets	13,655	12,565
Amortization of premium on investments, net	51	150
Amortization of debt discount and issuance fees	326	4,916
Amortization of commercial license rights	(11)	528
Loss (gain) on debt extinguishment	(1,532)	4,840
Share-based compensation	9,044	8,405
Deferred income taxes	(16,180)	(12,408)
Loss (gain) from short-term investments	12,877	(13,090)
Other	(80)	238
Changes in operating assets and liabilities:
Accounts receivable, net	43,638	2,411
Inventory	44	(9,670)
Accounts payable and accrued liabilities	(2,708)	470
Income tax receivable and payable	11,993	1,072
Deferred revenue	(2,453)	(5,695)
Other assets and liabilities	(233)	(3,768)
Net cash provided by operating activities	52,011	10,754
Cash flows from investing activities:
Purchase of short-term investments	(38,190)	(72,148)
Proceeds from sale of short-term investments	132,866	109,407
Proceeds from maturity of short-term investments	24,830	31,500
Cash paid for equity method investment	(750)	0
Purchase of property and equipment	(4,875)	(3,404)
Other	0	(240)
Net cash provided by investing activities	113,881	65,115
Cash flows from financing activities:
Repurchase of 2023 Notes	(163,356)	(108,822)
Payments under financing lease obligations	(13)	(3,801)
Proceeds from convertible bond hedge settlement	0	16,855
Payments to convertible bond holders for warrant purchases	0	(16,459)
Net proceeds from stock option exercises and ESPP	347	26,493
Taxes paid related to net share settlement of equity awards	(5,862)	(5,901)
Payments to CVR Holders	(1,416)	0
Other	(121)	0
Net cash used in financing activities	(170,421)	(91,635)
Net decrease in cash, cash equivalents and restricted cash	(4,529)	(15,766)
Cash, cash equivalents and restricted cash at beginning of period	19,522	47,963
Cash, cash equivalents and restricted cash at end of period	14,993	32,197
Supplemental disclosure of cash flow information:
Interest paid	359	241
Taxes paid	0	344
Supplemental schedule of non-cash activity:
Accrued fixed asset purchases	2,574	87
Accrued inventory purchases	306	775
Unrealized loss on AFS investments	$ (114)	$ (55)

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation and Summary of Significant Accounting Policies	Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation Our condensed consolidated financial statements include the financial statements of Ligand and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. We have included all adjustments, consisting only of normal recurring adjustments, which we considered necessary for a fair presentation of our financial results. These unaudited condensed consolidated financial statements and accompanying notes should be read together with the audited consolidated financial statements included in our 2021 Annual Report. Interim financial results are not necessarily indicative of the results that may be expected for the full year. Significant Accounting Policies We have described our significant accounting policies in Note 1, Basis of Presentation and Summary of Significant Accounting Policies of the Notes to Consolidated Financial Statements in our 2021 Annual Report. Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires the use of estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and the accompanying notes. Actual results may differ from those estimates. Accounting Standards Updates, Recently Adopted In August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”). The guidance simplifies the complexity associated with applying U.S. GAAP for certain financial instruments with characteristics of liabilities and equity. More specifically, the amendments focus on the guidance for convertible instruments and derivative scope exception for contracts in an entity’s own equity. Consequently, a convertible debt instrument, such as the Company’s 2023 Notes, will be accounted for as a single liability measured at its amortized cost, if no other features require bifurcation and recognition as derivatives. The new guidance also requires the if-converted method to be applied for all convertible instruments and requires additional disclosures. ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. We adopted this guidance effective January 1, 2022 under the modified retrospective approach and the comparative information has not been restated and continues to be presented according to accounting standards in effect for those periods. The cumulative effect of the change was recognized as an adjustment to the opening balance of retained earnings at the date of adoption and our 2023 Notes are no longer bifurcated into separate liability and equity components. The principal amount of the 2023 Notes is classified as a single liability measured at amortized cost in the condensed consolidated balance sheet for the period ended March 31, 2022. Upon adoption of ASU 2020-06 on January 1 2022, we recorded an adjustment to the 2023 Notes liability component, deferred tax liabilities, additional paid-in-capital and retained earnings. This adjustment was calculated based on the carrying amount of the 2023 Notes as if it had always been treated as a single liability measured at amortized cost. Furthermore, we recorded an adjustment to the debt issuance costs contra liability and equity (additional paid-in-capital) components under the same premise, as if debt issuance costs had always been treated as a contra liability only. Under this transition method, the cumulative effect of the accounting change increased the carrying amount of the 2023 Notes by $20.4 million, reduced deferred tax liabilities by $4.4 million, reduced additional paid-in capital by $51.1 million and increased retained earnings by $35.1 million. The net balance of the 2023 Notes at January 1, 2022 is $341.1 million which includes an unamortized discount of $2.2 million. Revenue Our revenue is generated primarily from royalties on sales of products commercialized by our partners, Captisol material sales, and contract revenue for services, license fees and development, regulatory and sales based milestone payments. We apply the following five-step model in accordance with ASC 606, Revenue from Contracts with Customers, in order to determine the revenue: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. Royalties We receive royalty revenue on sales by our partners of products covered by patents that we or our partners own under contractual agreements. We do not have future performance obligations under these license arrangements. We generally satisfy our obligation to grant intellectual property rights on the effective date of the contract. However, we apply the royalty recognition constraint required under the guidance for sales-based royalties which requires a royalty to be recorded no sooner than the underlying sale occurs. Therefore, royalties on sales of products commercialized by our partners are recognized in the quarter the product is sold. Our partners generally report sales information to us on a one quarter lag. Thus, we estimate the expected royalty proceeds based on an analysis of historical experience and interim data provided by our partners including their publicly announced sales. Differences between actual and estimated royalty revenues, which have not been material, are adjusted in the period in which they become known, typically the following quarter. Captisol Sales Revenue from Captisol sales is recognized when control of Captisol material is transferred or intellectual property license rights are granted to our customers in an amount that reflects the consideration we expect to receive from our customers in exchange for those products or rights. A performance obligation is considered distinct from other obligations in a contract when it provides a benefit to the customer either on its own or together with other resources that are readily available to the customer and is separately identified in the contract. For Captisol material or intellectual property license rights, we consider our performance obligation satisfied once we have transferred control of the product or granted the intellectual property rights, meaning the customer has the ability to use and obtain the benefit of the Captisol material or intellectual property license right. We recognize revenue for satisfied performance obligations only when we determine there are no uncertainties regarding payment terms or transfer of control. Sales tax and other taxes we collect concurrent with revenue-producing activities are excluded from revenue. We have elected to recognize the cost of freight and shipping when control over Captisol material has transferred to the customer as an expense in Cost of Captisol. We expense incremental costs of obtaining a contract when incurred if the expected amortization period of the asset that we would have recognized is one year or less or the amount is immaterial. We did not incur any incremental costs of obtaining a contract during the periods reported. Contract Revenue Our contracts with customers often include variable consideration in the form of contingent milestone payments. We include contingent milestone payments in the estimated transaction price when it is probable a significant reversal in the amount of cumulative revenue recognized will not occur. These estimates are based on historical experience, anticipated results and our best judgment at the time. If the contingent milestone payment is based on sales, we apply the royalty recognition constraint and record revenue when the underlying sale has taken place. Significant judgments must be made in determining the transaction price for our sales of intellectual property. Because of the risk that products in development with our partners will not reach development milestones or receive regulatory approval, we generally recognize any contingent payments that would be due to us upon the development milestone or regulatory approval. Depending on the terms of the arrangement, we may also defer a portion of the consideration received if we have to satisfy a future obligation, which typically occurs with our contracts for R&D services. For R&D services we recognize revenue over time and we measure our progress using an input method. The input methods we use are based on the effort we expend or costs we incur toward the satisfaction of our performance obligation. We estimate the amount of effort we expend, including the time it will take us to complete the activities, or the costs we may incur in a given period, relative to the estimated total effort or costs to satisfy the performance obligation. This results in a percentage that we multiply by the transaction price to determine the amount of revenue we recognize each period. This approach requires us to make numerous estimates and use significant judgement. If our estimates or judgements change over the course of the collaboration, they may affect the timing and amount of revenue that we recognize in the current and future periods. Some customer contracts are sublicenses which require that we make payments to an upstream licensor related to license fees, milestones and royalties which we receive from customers. In such cases, we evaluate the determination of gross revenue as a principal versus net revenue as an agent reporting based on each individual agreement. Deferred Revenue Depending on the terms of the arrangement, we may also defer a portion of the consideration received because we have to satisfy a future obligation. The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets), and customer advances and deposits (contract liabilities) on the consolidated balance sheet. Except for royalty revenue and certain service revenue, we generally receive payment at the point we satisfy our obligation or soon after. Therefore, we do not generally carry any contract asset balance. Any fees billed in advance of being earned are recorded as deferred revenue. During the three months ended March 31, 2022 and 2021, the amount recognized as revenue that was previously deferred was $3.7 million, and $7.3 million, respectively. Disaggregation of Revenue The following table represents disaggregation of royalties, Captisol and contract revenue (in thousands): Three months ended March 31, 2022 2021 Royalties Kyprolis $ 4,622 $ 4,287 Evomela 2,701 2,333 Teriparatide injection 2,911 16 Rylaze 1,649 — Other 1,812 476 $ 13,695 $ 7,112 Captisol Captisol - Core $ 6,226 $ 1,253 Captisol - COVID (1) 5,896 30,019 $ 12,122 $ 31,272 Contract revenue Service Revenue $ 5,146 $ 5,462 License Fees 3,086 1,043 Milestone 9,089 8,417 Other 2,555 1,844 $ 19,876 $ 16,766 Total $ 45,693 $ 55,150 (1) Captisol - COVID represents revenue on Captisol supplied for use in formulation with remdesivir, an antiviral treatment for COVID-19. Short-term Investments Our short-term investments consist of the following at March 31, 2022 and December 31, 2021 (in thousands): Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value March 31, 2022 Bank deposits $ 6,231 $ — $ (50) $ 6,181 Corporate bonds 4,899 — (84) 4,815 Commercial paper — — — — Corporate equity securities 5,807 344 (3,043) 3,108 Mutual fund 152,253 — (854) 151,399 US government securities 3,245 — (74) 3,171 Warrants — 187 — 187 $ 172,435 $ 531 $ (4,105) $ 168,861 Viking common stock 20,145 Total short-term investments $ 189,006 December 31, 2021 Bank deposits $ 63,389 $ 13 $ (21) $ 63,381 Corporate bonds 29,308 17 (38) 29,287 Commercial paper 36,008 2 (12) 35,998 Corporate equity securities 5,807 402 (2,027) 4,182 Mutual fund 152,136 — (249) 151,887 US government securities 5,577 — (23) 5,554 Warrants — 408 — 408 $ 292,225 $ 842 $ (2,370) $ 290,697 Viking common stock 30,889 Total short-term investments $ 321,586 Gain (loss) from short-term investments in our condensed consolidated statements of operations includes both realized and unrealized gain (loss) from our short-term investments in public equity and warrant securities. Allowances are recorded for available-for-sale debt securities with unrealized losses. This limits the amount of credit losses that can be recognized for available-for-sale debt securities to the amount by which carrying value exceeds fair value and requires the reversal of previously recognized credit losses if fair value increases. The provisions of the credit losses standard did not have a material impact on our available-for-sale debt securities during the three months ended March 31, 2022. The following table summarizes our available-for-sale debt securities by contractual maturity (in thousands): March 31, 2022 Amortized Cost Fair Value Within one year $ 10,095 $ 10,011 After one year through five years 6,523 6,398 Total $ 16,618 $ 16,409 Our investment policy is capital preservation and we only invest in U.S.-dollar denominated investments. We held a total of 13 positions which were in an unrealized loss position as of March 31, 2022. We believe that we will collect the principal and interest due on our debt securities that have an amortized cost in excess of fair value. The unrealized losses are largely due to changes in interest rates and not to unfavorable changes in the credit quality associated with these securities that impacted our assessment on collectability of principal and interest. We do not intend to sell these securities and it is not more-likely-than-not that we will be required to sell these securities before the recovery of the amortized cost basis. Accordingly, no credit losses were recognized for the three months ended March 31, 2022. Accounts Receivable and Allowance for Credit Losses Our accounts receivable arise primarily from sales on credit to customers. We establish an allowance for credit losses to present the net amount of accounts receivable expected to be collected. The allowance is determined by using the loss-rate method, which requires an estimation of loss rates based upon historical loss experience adjusted for factors that are relevant to determining the expected collectability of accounts receivable. Some of these factors include macroeconomic conditions that correlate with historical loss experience, delinquency trends, aging behavior of receivables and credit and liquidity quality indicators for industry groups, customer classes or individual customers. During the three months ended March 31, 2022, we considered the current and expected future economic and market conditions including, but not limited to, the anticipated unfavorable impacts of the COVID-19 pandemic on our business and recorded an adjustment of $(0.1) million of allowance for credit losses, respectively, as of March 31, 2022. Inventory Inventory, which consists of finished goods, is stated at the lower of cost or net realizable value. We determine cost using the first-in, first-out method or the specific identification method. We analyze our inventory levels periodically and write down inventory to net realizable value if it has become obsolete, has a cost basis in excess of its expected net realizable value or is in excess of expected requirements. There were no write-downs related to obsolete inventory recorded for the three months ended March 31, 2022 and 2021. As of March 31, 2022 inventory consists of Captisol prepayments of $21.1 million, and as of December 31, 2021 inventory consists of Captisol prepayments of $24.6 million. Goodwill and Other Identifiable Intangible Assets Goodwill and other identifiable intangible assets consist of the following (in thousands): March 31, December 31, 2022 2021 Indefinite-lived intangible assets Goodwill $ 181,206 $ 181,206 Definite lived intangible assets Complete technology 281,097 280,617 Less: accumulated amortization (82,861) (78,991) Trade name 2,642 2,642 Less: accumulated amortization (1,477) (1,444) Customer relationships 40,700 40,700 Less: accumulated amortization (18,934) (18,267) Contractual relationships 362,000 362,000 Less: accumulated amortization (43,460) (36,217) Total goodwill and other identifiable intangible assets, net $ 720,913 $ 732,246 Commercial License Rights Commercial license rights consist of the following (in thousands): March 31, 2022 December 31, 2021 Gross Adjustments (1) Net Gross Adjustments (2) Net Aziyo and CorMatrix $ 17,696 $ (9,456) $ 8,240 $ 17,696 $ (9,461) $ 8,235 Selexis and Dianomi 10,602 (8,721) 1,881 10,602 (8,727) 1,875 Total $ 28,298 $ (18,177) $ 10,121 $ 28,298 $ (18,188) $ 10,110 (1) Amounts represent accumulated amortization to principal of $11.7 million and credit loss adjustments of $6.5 million as of March 31, 2022. (2) Amounts represent accumulated amortization to principal of $11.7 million and credit loss adjustments of $6.5 million as of December 31, 2021. Commercial license rights represent a portfolio of future milestone and royalty payment rights acquired from Selexis, S.A. (Selexis) in April 2013 and April 2015, CorMatrix Cardiovascular, Inc. (CorMatrix) in May 2016, which was later acquired by Aziyo in 2017, and Dianomi Therapeutics, Inc. (Dianomi) in January 2019. Commercial license rights acquired are accounted for as financial assets in accordance with ASC 310, Receivables, as further discussed in Note 1, Basis of Presentation and Summary of Significant Accounting Policies of the Notes to Consolidated Financial Statements in our 2021 Annual Report. We estimated the credit losses at the individual asset level by considering the performance against the programs, the company operating performance and the macroeconomic forecast. In addition, we have judgmentally applied credit loss risk factors to the future expected payments with consideration given to the timing of the payment. Given the higher inherent credit risk associated with longer term receivables, we applied a lower risk factor to the earlier years and progressively higher risk factors to the later years. During the three months ended March 31, 2022, we further considered the current and expected future economic and market conditions surrounding the novel coronavirus (COVID-19) pandemic and concluded no further adjustment was needed on the allowance for credit losses as of March 31, 2022. Accrued Liabilities Accrued liabilities consist of the following (in thousands): March 31, December 31, 2022 2021 Compensation $ 3,620 $ 6,532 Professional fees 3,974 2,046 Amounts owed to former licensees 2,677 630 Royalties owed to third parties — 149 Return reserve — 2,420 Acquisition related liabilities — 1,000 Subcontractor 1,757 1,759 Supplier 1,697 848 Accrued interest 394 291 Other 1,758 1,904 Total accrued liabilities $ 15,877 $ 17,579 Share-Based Compensation Share-based compensation expense for awards to employees and non-employee directors is a non-cash expense and is recognized on a straight-line basis over the vesting period. The following table summarizes share-based compensation expense recorded as components of research and development expenses and general and administrative expenses for the periods indicated (in thousands): Three months ended March 31, 2022 2021 SBC - Research and development expenses $ 3,914 $ 3,939 SBC - General and administrative expenses 5,130 4,466 $ 9,044 $ 8,405 The fair-value for options that were awarded to employees and directors was estimated at the date of grant using the Black-Scholes option valuation model with the following weighted-average assumptions: Three months ended March 31, 2022 2021 Risk-free interest rate 1.6% 0.5% Dividend yield — — Expected volatility 50% 63% Expected term (years) 4.7 5 A limited amount of performance-based restricted stock units (PSUs) contain a market condition based on our relative total shareholder return ranked on a percentile basis against the NASDAQ Biotechnology Index over a three-year performance period, with a range of 0% to 200% of the target amount granted to be issued under the award. Share-based compensation cost for these PSUs is measured using the Monte-Carlo simulation valuation model and is not adjusted for the achievement, or lack thereof, of the performance conditions. Net Income (Loss) Per Share Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed based on the sum of the weighted average number of common shares and potentially dilutive common shares outstanding during the period. Diluted net loss per share is computed based on the sum of the weighted average number of common shares outstanding during the period. Potentially dilutive common shares consist of shares issuable under the 2023 Notes, stock options and restricted stock. The 2023 Notes have a dilutive impact when the average market price of our common stock exceeds the maximum conversion price. It is our intent and policy to settle conversions through combination settlement, which involves payment in cash equal to the principal portion and delivery of shares of common stock for the excess of the conversion value over the principal portion. Potentially dilutive common shares from stock options and restricted stock are determined using the average share price for each period under the treasury stock method. In addition, the following amounts are assumed to be used to repurchase shares: proceeds from exercise of stock options and the average amount of unrecognized compensation expense for the awards. See Note 4, Convertible Senior Notes and Note 6, Stockholders’ Equity . The following table presents the calculation of weighted average shares used to calculate basic and diluted earnings per share (in thousands): Three months ended March 31, 2022 2021 Weighted average shares outstanding: 16,824 16,435 Dilutive potential common shares: Restricted stock — 112 Stock options — 701 Shares used to compute diluted income per share 16,824 17,248 Potentially dilutive shares excluded from calculation due to anti-dilutive effect 6,001 4,277 For the three months ended March 31, 2022, due to the net loss for the period, all of the 0.4 million weighted average equity awards and 1.8 million of potentially dilutive shares in connection with the adoption of ASU 2020-06 were anti-dilutive. Under the new standard, we are required to reflect the dilutive effect of the 2023 Notes by application of the if-converted method.

Segment Information

Segment Information	3 Months Ended
	Mar. 31, 2022
Segment Reporting [Abstract]
Segment Information	Segment Information ASC 280, Segment reporting , establishes annual and interim reporting standards for an enterprise’s operating segments and related disclosures about its products, services, geographic areas and major customers. An operating segment is defined as a component of an enterprise that engages in business activities from which it may earn revenue and incur expenses, and for which discrete financial information is regularly evaluated by the chief operating decision maker in deciding how to allocate resources and assess performance. We are a biopharmaceutical company focused on developing or acquiring technologies that help pharmaceutical companies discover and develop medicines. Our operating segments are identified in the same manner as they are reported internally and used by our chief operating decision maker for the purpose of evaluating performance and allocating resources. Historically, we have disclosed one reportable segment. On March 23, 2022, we entered into the Merger Agreement, pursuant to which APAC will combine with OmniAb, and acquire the OmniAb Business, in a Reverse Morris Trust transaction. Immediately prior to the Merger and pursuant to the Separation Agreement, we will, among other things, transfer the OmniAb Business, including but not limited to the equity interests of Ab Initio Biotherapeutics, Inc., Crystal Bioscience, Inc., Icagen, LLC, Taurus Biosciences, LLC and xCella Biosciences, Inc. to OmniAb (the “Reorganization”) and, in connection therewith, will distribute (the “Distribution”) to Ligand stockholders 100% of the common stock of OmniAb. Immediately following the Distribution, Merger Sub will merge with and into OmniAb (the “Merger”), with OmniAb continuing as the surviving company in the Merger and as a wholly owned subsidiary of APAC. In connection with the execution of the Merger Agreement, we have made organizational changes to better align our organizational structure with our strategy and operations, and management has reorganized the reportable segments to better reflect how the business is evaluated by the chief operating decision maker. Beginning in the first quarter of 2022, we operate the following two reportable segments: (1) OmniAb business and (2) Ligand core business. The OmniAb business segment is focused on enabling the discovery of therapeutic candidates for our partners by pairing antibody repertoires generated from our proprietary transgenic animals with our OmniAb business platform screening tools. The Ligand core business segment is a biopharmaceutical business focused on developing or acquiring technologies that help pharmaceutical companies deliver and develop medicines. Our chief operating decision maker relies on internal management reporting processes that provide revenue and operating income by reportable segment for making financial decisions and allocating resources. Segment operating income (loss) represents income (loss) before income taxes, interest income, interest expense, other income (expense), net, unallocated share-based compensation, and unallocated corporate overhead. Our management does not evaluate, manage or measure performance of segments using asset information; accordingly, asset information by segment is not prepared or disclosed. The following table provides a reconciliation of revenue and operating income by reportable segment to consolidated results and was derived from each segment’s internal financial information as used for corporate management purposes (in thousands): Three Months Ended March 31, 2022 2021 OmniAb business revenue Royalties $ 263 $ — Contract 8,915 8,559 Total OmniAb business revenue 9,178 8,559 Ligand core business revenue Royalties 13,432 7,112 Captisol - Core 6,226 1,253 Captisol - COVID 5,896 30,019 Contract 10,961 8,207 Total Ligand core business revenue 36,515 46,591 Total revenue $ 45,693 $ 55,150 Segment operating income (loss) OmniAb business $ (6,189) $ (4,604) Ligand core business 9,991 18,446 Total segment operating income 3,802 13,842 Unallocated corporate items Shared-based compensation 5,657 4,870 Other corporate expenses 7,451 4,257 Total unallocated corporate items 13,108 9,127 Income (loss) from operations $ (9,306) $ 4,715

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2022
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements Assets and Liabilities Measured on a Recurring Basis The following table presents the hierarchy for our assets and liabilities measured at fair value (in thousands): March 31, 2022 December 31, 2021 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Short-term investments, excluding Viking (1) $ 6,279 $ 162,394 $ 188 $ 168,861 $ 9,735 $ 280,553 $ 409 $ 290,697 Investment in Viking common stock 20,145 — — 20,145 30,889 — — 30,889 Total assets $ 26,424 $ 162,394 $ 188 $ 189,006 $ 40,624 $ 280,553 $ 409 $ 321,586 Liabilities: CyDex contingent liabilities $ — $ — $ 334 $ 334 $ — $ — $ 349 $ 349 Metabasis contingent liabilities (2) — 2,782 — 2,782 — 3,358 — 3,358 Icagen contingent liabilities (3) — — 5,376 5,376 — — 7,364 7,364 xCella contingent liabilities (4) — — 480 480 — — — — Amounts owed to former licensor 75 — — 75 86 — — 86 Total liabilities $ 75 $ 2,782 $ 6,190 $ 9,047 $ 86 $ 3,358 $ 7,713 $ 11,157 1. Excluding our investment in Viking, our short-term investments in marketable debt and equity securities are classified as available-for-sale securities based on management's intentions and are at level 2 of the fair value hierarchy, as these investment securities are valued based upon quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Short-term investments in mutual funds are valued at their net asset value (NAV) on the last day of the period. We have classified marketable securities with original maturities of greater than one year as short-term investments based upon our ability and intent to use any and all of those marketable securities to satisfy the liquidity needs of our current operations. In addition, we have investment in warrants resulting from Seelos Therapeutics Inc. milestone payments that were settled in shares during the first quarter of 2019 and are at level 3 of the fair value hierarchy, based on Black Scholes value estimated by management on the last day of the period. 2. In connection with our acquisition of Metabasis in January 2010, we issued Metabasis stockholders four tradable CVRs, one CVR from each of four respective series of CVR, for each Metabasis share. The CVRs entitle Metabasis stockholders to cash payments as frequently as every six months as cash is received by us from proceeds from the sale or partnering of any of the Metabasis drug development programs, among other triggering events. The liability for the CVRs is determined using quoted prices in a market that is not active for the underlying CVR. The carrying amount of the liability may fluctuate significantly based upon quoted market prices and actual amounts paid under the agreements may be materially different than the carrying amount of the liability. Several of the Metabasis drug development programs have been outlicensed to Viking, including VK2809. VK2809 is a novel selective TR-β agonist with potential in multiple indications, including hypercholesterolemia, dyslipidemia, NASH, and X-ALD. Under the terms of the agreement with Viking, we may be entitled to up to $375 million of development, regulatory and commercial milestones and tiered royalties on potential future sales including a $10 million payment upon initiation of a Phase 3 clinical trial. During the three months ended March 31, 2022, we adjusted the balance of the Metabasis CVR liability by $0.6 million to mark to market. 3. The fair value of Icagen contingent liabilities was determined using a probability weighted income approach. Most of the contingent payments are based on certain revenue milestones as defined in the asset purchase agreement with Icagen. The fair value is subjective and is affected by changes in inputs to the valuation model including management’s estimates regarding the timing and probability of achievement of certain developmental and regulatory milestones. Changes in these estimates may materially affect the fair value. During the three months ended March 31, 2022, we paid $1.5 million contingent liability based on revenue milestones to former Icagen shareholders. 4. The fair value of xCella contingent liabilities is determined when it is probable that the earnout liability will occur and the amount can be reasonably estimated. Management concluded that no earnout liability would be recognized at the acquisition date in September 2020. During the three months ended March 31, 2022, management recorded $0.5 million of earnout liability to be allocated to the cost of the acquired assets due to contingencies being met as part of the acquisition agreement. A reconciliation of the level 3 financial instruments as of March 31, 2022 is as follows (in thousands): Fair value of level 3 financial instruments as of December 31, 2021 $ 7,713 Payments to CVR holders and other contingent payments (1,545) Fair value adjustments to contingent liabilities (458) Contingent liabilities from xCella asset acquisition 480 Fair value of level 3 financial instruments as of March 31, 2022 $ 6,190 Assets Measured on a Non-Recurring Basis We apply fair value techniques on a non-recurring basis associated with valuing potential impairment losses related to our goodwill, indefinite-lived intangible assets and long-lived assets. We evaluate goodwill and indefinite-lived intangible assets annually for impairment and whenever circumstances occur indicating that goodwill might be impaired. We determine the fair value of our reporting unit based on a combination of inputs, including the market capitalization of Ligand, as well as Level 3 inputs such as discounted cash flows, which are not observable from the market, directly or indirectly. We determine the fair value of our indefinite-lived intangible assets using the income approach based on Level 3 inputs. In connection with the organizational changes to the Company’s reportable segments, we re-allocated goodwill between the two identified reporting units (OmniAb business and Ligand core business). We performed a goodwill impairment analysis immediately before and after the allocation of goodwill and concluded no impairment. At March 31, 2022, there were no indicators of impairment at either of the reporting units.

Convertible Senior Notes

Convertible Senior Notes	3 Months Ended
	Mar. 31, 2022
Debt Disclosure [Abstract]
Convertible Senior Notes	Convertible Senior Notes 0.75% Convertible Senior Notes due 2023 In May 2018, we issued $750.0 million aggregate principal amount of 0.75% convertible senior notes. The net proceeds from the offering, after deducting the initial purchasers' discount and offering expenses, were approximately $733.1 million. The 2023 Notes will be convertible into cash, shares of common stock, or a combination of cash and shares of common stock, at our election, based on an initial conversion rate, subject to adjustment, of 4.0244 shares per $1,000 principal amount of the 2023 Notes which represents an initial conversion price of approximately $248.48 per share. The maximum conversion rate of the 2023 Notes is 5.2317 per $1,000 principal amount of the 2023 Notes which represents a maximum conversion price of approximately $191.14. Holders of the 2023 Notes may convert the notes at any time prior to the close of business on the business day immediately preceding November 15, 2022, under any of the following circumstances: (1) during any fiscal quarter (and only during such fiscal quarter) commencing after September 30, 2018, if, for at least 20 trading days (whether or not consecutive) during the 30 consecutive trading day period ending on the last trading day of the immediately preceding fiscal quarter, the last reported sale price of our common stock on such trading day is greater than 130% of the conversion price on such trading day; (2) during the five business day period immediately following any 10 consecutive trading day period, in which the trading price per $1,000 principal amount of notes was less than 98% of the product of the last reported sale price of our common stock on such trading day and the conversion rate on each such trading day; or (3) upon the occurrence of certain specified corporate events as specified in the indenture governing the notes. The notes will have a dilutive effect to the extent the average market price per share of common stock for a given reporting period exceeds the conversion price of $248.48. In connection with the issuance of the 2023 Notes, we incurred $16.9 million of issuance costs, which primarily consisted of underwriting, legal and other professional fees, is amortized to interest expense using the effective interest method over the five year expected life of the 2023 Notes, and the effective interest rate as of March 31, 2022 is 0.5%. During the three months ended March 31, 2022 we recognized a total of $0.8 million in interest expense which includes $0.5 million in contractual interest expense and $0.3 million in amortized issuance costs. It is our intent and policy to settle conversions through combination settlement, which essentially involves payment in cash equal to the principal portion and delivery of shares of common stock for the excess of the conversion value over the principal portion. During 2021, we repurchased $152.0 million in principal of the 2023 Notes for $156.0 million in cash, including accrued interest of $0.3 million. After the repurchases, approximately $343.3 million in principal amount of the 2023 Notes were outstanding as of December 31, 2021. During the three months ended March 31, 2022, we repurchased $165.8 million in principal of the 2023 Notes for $163.7 million in cash, including accrued interest of $0.4 million. We accounted for the repurchase as a debt extinguishment, which resulted in a gain of $1.5 million reflected in other income (expense), net, in our condensed consolidated statement of operations for the three months ended March 31, 2022, and a $0.9 million reduction in debt discount. Convertible Bond Hedge and Warrant Transactions In conjunction with the 2023 Notes, in May 2018, we entered into convertible bond hedges and sold warrants covering 3,018,327 shares of our common stock to minimize the impact of potential dilution to our common stock and/or offset the cash payments we are required to make in excess of the principal amount upon conversion of the 2023 Notes. The convertible bond hedges have an exercise price of $248.48 per share and are exercisable when and if the 2023 Notes are converted. We paid $140.3 million for these convertible bond hedges. If upon conversion of the 2023 Notes, the price of our common stock is above the exercise price of the convertible bond hedges, the counterparties will deliver shares of common stock and/or cash with an aggregate value approximately equal to the difference between the price of common stock at the conversion date and the exercise price, multiplied by the number of shares of common stock related to the convertible bond hedge transaction being exercised. The convertible bond hedges and warrants described below are separate transactions entered into by us and are not part of the terms of the 2023 Notes. Holders of the 2023 Notes and warrants will not have any rights with respect to the convertible bond hedges. Concurrently with the convertible bond hedge transactions, we entered into warrant transactions whereby we sold warrants covering approximately 3,018,327 shares of common stock with an exercise price of approximately $315.38 per share, subject to certain adjustments. We received $90.0 million for these warrants. The warrants have various expiration dates ranging from August 15, 2023 to February 6, 2024. The warrants will have a dilutive effect to the extent the market price per share of common stock exceeds the applicable exercise price of the warrants, as measured under the terms of the warrant transactions. The common stock issuable upon exercise of the warrants will be in unregistered shares, and we do not have the obligation and do not intend to file any registration statement with the SEC registering the issuance of the shares under the warrants. In January 2021, in connection with the repurchases of approximately $20.3 million in principal of the 2023 Notes for approximately $19.1 million in cash, including accrued interest of $0.1 million, during the quarter ended December 31, 2020, we entered into amendments with Barclays Bank PLC, Deutsche Bank AG, London Branch, and Goldman Sachs & Co. LLC to the convertible note hedges transactions we initially entered into in connection with the issuance of the 2023 Notes. The amendments provide that the options under the convertible note hedges corresponding to such repurchased 2023 Notes will remain outstanding notwithstanding such repurchase. During the year ended December 31, 2021, in connection with the repurchases of $152.0 million in principal of the 2023 Notes for $156.0 million in cash, including accrued interest of $0.3 million, we entered into Warrant Early Unwind Agreements and Bond Hedge Unwind Agreements with Barclays Bank PLC, Deutsche Bank AG, and Goldman Sachs & Co. LLC to unwind a portion of the convertible note hedges transactions we initially entered into in connection with the issuance of the 2023 Notes. We paid $18.4 million as part of the Warrant Early Unwind Agreements reducing the number of shares covered by the warrants from 3,018,327 to 2,559,254. We received $18.9 million as part of the Bond Hedge Early Unwind Agreements reducing the number of options under the convertible bond hedges to 598,021. These unwind transactions resulted in a $0.5 million net increase in additional paid-in-capital in our condensed consolidated balance sheet as of December 31, 2021. The following table summarizes information about the 2023 Notes (in thousands): March 31, 2022 December 31, 2021 (1) Principal amount of the 2023 Notes outstanding $ 177,527 $ 343,301 Unamortized discount (including unamortized debt issuance cost) (987) (22,584) Total long-term portion of notes payable $ 176,540 $ 320,717 Fair value of the 2023 Notes outstanding (Level 2) $ 172,535 $ 341,801 (1) - Balances as of December 31, 2021 reported before the adoption of ASU 2020-06.

Income Tax

Income Tax	3 Months Ended
	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Income Tax	Income TaxOur effective tax rate may vary from the U.S. federal statutory tax rate due to the change in the mix of earnings in various state jurisdictions with different statutory rates, benefits related to tax credits, and the tax impact of non-deductible expenses, stock award activities and other permanent differences between income before income taxes and taxable income. The effective tax rate for the three months ended March 31, 2022 and 2021 was 23.6% and (214.1)%, respectively. The variance from the U.S. federal statutory tax rate of 21% for the three months ended March 31, 2022 was due primarily to the tax deductions related to foreign derived intangible income tax credit as well as the research and development tax credits, which were partially offset by Section 162(m) limitation during the period. The variance from the U.S. federal tax rate of 21% for the three months ended March 31, 2021 was significantly impacted by the discrete tax benefit related to the net excess tax windfalls from the share based compensation resulting from increased stock option exercise activity, stock award vesting and appreciation of our stock price during the period.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2022
Equity [Abstract]
Stockholders' Equity	Stockholders’ Equity We grant options and awards to employees and non-employee directors pursuant to a stockholder approved stock incentive plan, which is described in further detail in Note 9, Stockholders’ Equity , of the Notes to Consolidated Financial Statements in our 2021 Annual Report. The following is a summary of our stock option and restricted stock activity and related information: Stock Options Restricted Stock Awards Shares Weighted-Average Exercise Price Shares Weighted-Average Grant Date Fair Value Balance as of December 31, 2021 2,199,598 $ 106.00 264,143 $ 138.21 Granted 14,100 $ 114.13 24,840 $ 99.85 Options exercised/RSUs vested (17,689) $ 19.61 (126,049) $ 121.18 Forfeited (23,285) $ 54.49 (782) $ 131.95 Balance as of March 31, 2022 2,172,724 $ 107.31 162,152 $ 145.60 As of March 31, 2022, outstanding options to purchase 1.5 million shares were exercisable with a weighted average exercise price per share of $100.59. Employee Stock Purchase Plan The price at which common stock is purchased under the Amended Employee Stock Purchase Plan, or ESPP, is equal to 85% of the fair market value of the common stock on the first or last day of the offering period, whichever is lower. As of March 31, 2022, 44,360 shares were available for future purchases under the ESPP. Share Repurchases

Commitment and Contingencies_ L

Commitment and Contingencies: Legal Proceedings	3 Months Ended
	Mar. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitment and Contingencies: Legal Proceedings	Commitment and Contingencies: Legal Proceedings We record an estimate of a loss when the loss is considered probable and estimable. Where a liability is probable and there is a range of estimated loss and no amount in the range is more likely than any other number in the range, we record the minimum estimated liability related to the claim in accordance with ASC 450, Contingencies . As additional information becomes available, we assess the potential liability related to our pending litigation and revises our estimates. Revisions in our estimates of potential liability could materially impact our results of operations. On October 31, 2019, we received three civil complaints filed in the U.S. District Court for the Northern District of Ohio on behalf of several Indian tribes. The Northern District of Ohio is the Court that the Judicial Panel on Multi-District Litigation (“JPML”) has assigned more than one thousand civil cases which have been designated as a Multi-District Litigation (“MDL”) and captioned In Re: National Prescription Opiate Litigation. The allegations in these complaints focus on the activities of defendants other than the Company and no individualized factual allegations have been advanced against us in any of the three complaints. We reject all claims raised in the complaints and intend to vigorously defend these matters. CyDex and Baxter Healthcare Corp. (“Baxter”) are parties to a license agreement relating to Ligand’s Captisol technology and, more specifically, relating to Captisol-enabled Nexterone (amiodarone HCl premixed injection). Baxter contends that it has overpaid royalties for several years, and seeks both refunds of those overpayment and a reduced royalty going forward. CyDex contends that Baxter has not paid the royalties due to CyDex under the terms of the license agreement. On April 6, 2021, Baxter initiated an arbitration with the American Arbitration Association pursuant to the arbitration provision of the license agreement. On April 21, 2021, CyDex filed an Answering Statement and Counterdemand. On May 5, 2021, Baxter filed an Answering Statement in response to CyDex’s Counterdemand. On June 30, 2021, the parties held a Preliminary Hearing before the arbitrator. The parties have completed fact discovery, exchanged expert witness statements and completed depositions of the expert witnesses. The arbitration hearing is currently scheduled for late May 2022. From time to time, we may also become subject to other legal proceedings or claims arising in the ordinary course of our business. We currently believe that none of the claims or actions pending against us is likely to have, individually or in the aggregate, a material adverse effect on our business, financial condition or results of operations. Given the unpredictability inherent in litigation, however, we cannot predict the outcome of these matters.

Leases

Leases	3 Months Ended
	Mar. 31, 2022
Leases [Abstract]
Leases	Leases We lease certain office facilities and equipment primarily under various operating leases. Our leases have remaining contractual terms up to ten years, some of which include options to extend the leases for up to five years. Our lease agreements do not contain any material residual value guarantees, material restrictive covenants, or material termination options. Our operating lease costs are primarily related to facility leases for administration offices and research and development facilities, and our finance leases are immaterial. Lease assets and lease liabilities are recognized at the commencement of an arrangement where it is determined at inception that a lease exists. Lease assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. These assets and liabilities are initially recognized based on the present value of lease payments over the lease term calculated using our incremental borrowing rate generally applicable to the location of the lease asset, unless the implicit rate is readily determinable. Lease assets also include any upfront lease payments made and adjusted for lease incentives and other items as prescribed by ASC Topic 842, Leases . Lease terms include options to extend or terminate the lease when it is reasonably certain that those options will be exercised. In addition to base rent, certain of our operating leases require variable payments, such as insurance and common area maintenance. These variable lease costs, other than those dependent upon an index or rate, are expensed when the obligation for those payments is incurred. Leases with an initial term of 12 months or less are not recorded on the balance sheet, and the expense for these short-term leases and for operating leases is recognized on a straight-line basis over the lease term. The depreciable life of lease assets and leasehold improvements is limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Operating and Finance Lease Assets and Liabilities (in thousands): Assets March 31, 2022 December 31, 2021 Operating lease assets $ 15,783 $ 16,542 Finance lease assets 15,620 16,207 Total lease assets $ 31,403 $ 32,749 Liabilities Current operating lease liabilities $ 1,850 $ 2,053 Current finance lease liabilities 52 46 1,902 2,099 Long-term operating lease liabilities 16,758 15,494 Long-term finance lease liabilities 39 58 Total lease liabilities $ 18,699 $ 17,651 Maturity of Operating and Finance Lease Liabilities as of March 31, 2022 (in thousands): Maturity Dates Operating Leases Remaining nine months ending December 31, 2022 $ 1,020 2023 2,712 2024 2,716 2025 2,614 2026 2,700 2027 2,727 Thereafter 8,074 Total lease payments 22,563 Less imputed interest (3,864) Present value of lease liabilities $ 18,699
Leases	Leases We lease certain office facilities and equipment primarily under various operating leases. Our leases have remaining contractual terms up to ten years, some of which include options to extend the leases for up to five years. Our lease agreements do not contain any material residual value guarantees, material restrictive covenants, or material termination options. Our operating lease costs are primarily related to facility leases for administration offices and research and development facilities, and our finance leases are immaterial. Lease assets and lease liabilities are recognized at the commencement of an arrangement where it is determined at inception that a lease exists. Lease assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. These assets and liabilities are initially recognized based on the present value of lease payments over the lease term calculated using our incremental borrowing rate generally applicable to the location of the lease asset, unless the implicit rate is readily determinable. Lease assets also include any upfront lease payments made and adjusted for lease incentives and other items as prescribed by ASC Topic 842, Leases . Lease terms include options to extend or terminate the lease when it is reasonably certain that those options will be exercised. In addition to base rent, certain of our operating leases require variable payments, such as insurance and common area maintenance. These variable lease costs, other than those dependent upon an index or rate, are expensed when the obligation for those payments is incurred. Leases with an initial term of 12 months or less are not recorded on the balance sheet, and the expense for these short-term leases and for operating leases is recognized on a straight-line basis over the lease term. The depreciable life of lease assets and leasehold improvements is limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Operating and Finance Lease Assets and Liabilities (in thousands): Assets March 31, 2022 December 31, 2021 Operating lease assets $ 15,783 $ 16,542 Finance lease assets 15,620 16,207 Total lease assets $ 31,403 $ 32,749 Liabilities Current operating lease liabilities $ 1,850 $ 2,053 Current finance lease liabilities 52 46 1,902 2,099 Long-term operating lease liabilities 16,758 15,494 Long-term finance lease liabilities 39 58 Total lease liabilities $ 18,699 $ 17,651 Maturity of Operating and Finance Lease Liabilities as of March 31, 2022 (in thousands): Maturity Dates Operating Leases Remaining nine months ending December 31, 2022 $ 1,020 2023 2,712 2024 2,716 2025 2,614 2026 2,700 2027 2,727 Thereafter 8,074 Total lease payments 22,563 Less imputed interest (3,864) Present value of lease liabilities $ 18,699

Basis of Presentation and Sum_2

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of PresentationOur condensed consolidated financial statements include the financial statements of Ligand and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. We have included all adjustments, consisting only of normal recurring adjustments, which we considered necessary for a fair presentation of our financial results. These unaudited condensed consolidated financial statements and accompanying notes should be read together with the audited consolidated financial statements included in our 2021 Annual Report. Interim financial results are not necessarily indicative of the results that may be expected for the full year.
Use of Estimates	Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires the use of estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and the accompanying notes. Actual results may differ from those estimates.
Accounting Standards Updates, Recently Adopted	Accounting Standards Updates, Recently Adopted In August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”). The guidance simplifies the complexity associated with applying U.S. GAAP for certain financial instruments with characteristics of liabilities and equity. More specifically, the amendments focus on the guidance for convertible instruments and derivative scope exception for contracts in an entity’s own equity. Consequently, a convertible debt instrument, such as the Company’s 2023 Notes, will be accounted for as a single liability measured at its amortized cost, if no other features require bifurcation and recognition as derivatives. The new guidance also requires the if-converted method to be applied for all convertible instruments and requires additional disclosures. ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. We adopted this guidance effective January 1, 2022 under the modified retrospective approach and the comparative information has not been restated and continues to be presented according to accounting standards in effect for those periods. The cumulative effect of the change was recognized as an adjustment to the opening balance of retained earnings at the date of adoption and our 2023 Notes are no longer bifurcated into separate liability and equity components. The principal amount of the 2023 Notes is classified as a single liability measured at amortized cost in the condensed consolidated balance sheet for the period ended March 31, 2022. Upon adoption of ASU 2020-06 on January 1 2022, we recorded an adjustment to the 2023 Notes liability component, deferred tax liabilities, additional paid-in-capital and retained earnings. This adjustment was calculated based on the carrying amount of the 2023 Notes as if it had always been treated as a single liability measured at amortized cost. Furthermore, we recorded an adjustment to the debt issuance costs contra liability and equity (additional paid-in-capital) components under the same premise, as if debt issuance costs had always been treated as a contra liability only. Under this transition method, the cumulative effect of the accounting change increased the carrying amount of the 2023 Notes by $20.4 million, reduced deferred tax liabilities by $4.4 million, reduced additional paid-in capital by $51.1 million and increased retained earnings by $35.1 million. The net balance of the 2023 Notes at January 1, 2022 is $341.1 million which includes an unamortized discount of $2.2 million.
Revenue	Revenue Our revenue is generated primarily from royalties on sales of products commercialized by our partners, Captisol material sales, and contract revenue for services, license fees and development, regulatory and sales based milestone payments. We apply the following five-step model in accordance with ASC 606, Revenue from Contracts with Customers, in order to determine the revenue: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. Royalties We receive royalty revenue on sales by our partners of products covered by patents that we or our partners own under contractual agreements. We do not have future performance obligations under these license arrangements. We generally satisfy our obligation to grant intellectual property rights on the effective date of the contract. However, we apply the royalty recognition constraint required under the guidance for sales-based royalties which requires a royalty to be recorded no sooner than the underlying sale occurs. Therefore, royalties on sales of products commercialized by our partners are recognized in the quarter the product is sold. Our partners generally report sales information to us on a one quarter lag. Thus, we estimate the expected royalty proceeds based on an analysis of historical experience and interim data provided by our partners including their publicly announced sales. Differences between actual and estimated royalty revenues, which have not been material, are adjusted in the period in which they become known, typically the following quarter. Captisol Sales Revenue from Captisol sales is recognized when control of Captisol material is transferred or intellectual property license rights are granted to our customers in an amount that reflects the consideration we expect to receive from our customers in exchange for those products or rights. A performance obligation is considered distinct from other obligations in a contract when it provides a benefit to the customer either on its own or together with other resources that are readily available to the customer and is separately identified in the contract. For Captisol material or intellectual property license rights, we consider our performance obligation satisfied once we have transferred control of the product or granted the intellectual property rights, meaning the customer has the ability to use and obtain the benefit of the Captisol material or intellectual property license right. We recognize revenue for satisfied performance obligations only when we determine there are no uncertainties regarding payment terms or transfer of control. Sales tax and other taxes we collect concurrent with revenue-producing activities are excluded from revenue. We have elected to recognize the cost of freight and shipping when control over Captisol material has transferred to the customer as an expense in Cost of Captisol. We expense incremental costs of obtaining a contract when incurred if the expected amortization period of the asset that we would have recognized is one year or less or the amount is immaterial. We did not incur any incremental costs of obtaining a contract during the periods reported. Contract Revenue Our contracts with customers often include variable consideration in the form of contingent milestone payments. We include contingent milestone payments in the estimated transaction price when it is probable a significant reversal in the amount of cumulative revenue recognized will not occur. These estimates are based on historical experience, anticipated results and our best judgment at the time. If the contingent milestone payment is based on sales, we apply the royalty recognition constraint and record revenue when the underlying sale has taken place. Significant judgments must be made in determining the transaction price for our sales of intellectual property. Because of the risk that products in development with our partners will not reach development milestones or receive regulatory approval, we generally recognize any contingent payments that would be due to us upon the development milestone or regulatory approval. Depending on the terms of the arrangement, we may also defer a portion of the consideration received if we have to satisfy a future obligation, which typically occurs with our contracts for R&D services. For R&D services we recognize revenue over time and we measure our progress using an input method. The input methods we use are based on the effort we expend or costs we incur toward the satisfaction of our performance obligation. We estimate the amount of effort we expend, including the time it will take us to complete the activities, or the costs we may incur in a given period, relative to the estimated total effort or costs to satisfy the performance obligation. This results in a percentage that we multiply by the transaction price to determine the amount of revenue we recognize each period. This approach requires us to make numerous estimates and use significant judgement. If our estimates or judgements change over the course of the collaboration, they may affect the timing and amount of revenue that we recognize in the current and future periods. Some customer contracts are sublicenses which require that we make payments to an upstream licensor related to license fees, milestones and royalties which we receive from customers. In such cases, we evaluate the determination of gross revenue as a principal versus net revenue as an agent reporting based on each individual agreement. Deferred Revenue
Accounts Receivable and Allowance for Credit Losses	Accounts Receivable and Allowance for Credit LossesOur accounts receivable arise primarily from sales on credit to customers. We establish an allowance for credit losses to present the net amount of accounts receivable expected to be collected. The allowance is determined by using the loss-rate method, which requires an estimation of loss rates based upon historical loss experience adjusted for factors that are relevant to determining the expected collectability of accounts receivable. Some of these factors include macroeconomic conditions that correlate with historical loss experience, delinquency trends, aging behavior of receivables and credit and liquidity quality indicators for industry groups, customer classes or individual customers.
Inventory	Inventory Inventory, which consists of finished goods, is stated at the lower of cost or net realizable value. We determine cost using the first-in, first-out method or the specific identification method.
Commercial License and Other Economic Rights	Commercial License Rights Commercial license rights consist of the following (in thousands): March 31, 2022 December 31, 2021 Gross Adjustments (1) Net Gross Adjustments (2) Net Aziyo and CorMatrix $ 17,696 $ (9,456) $ 8,240 $ 17,696 $ (9,461) $ 8,235 Selexis and Dianomi 10,602 (8,721) 1,881 10,602 (8,727) 1,875 Total $ 28,298 $ (18,177) $ 10,121 $ 28,298 $ (18,188) $ 10,110 (1) Amounts represent accumulated amortization to principal of $11.7 million and credit loss adjustments of $6.5 million as of March 31, 2022. (2) Amounts represent accumulated amortization to principal of $11.7 million and credit loss adjustments of $6.5 million as of December 31, 2021. Commercial license rights represent a portfolio of future milestone and royalty payment rights acquired from Selexis, S.A. (Selexis) in April 2013 and April 2015, CorMatrix Cardiovascular, Inc. (CorMatrix) in May 2016, which was later acquired by Aziyo in 2017, and Dianomi Therapeutics, Inc. (Dianomi) in January 2019. Commercial license rights acquired are accounted for as financial assets in accordance with ASC 310, Receivables, as further discussed in Note 1, Basis of Presentation and Summary of Significant Accounting Policies of the Notes to Consolidated Financial Statements in our 2021 Annual Report. We estimated the credit losses at the individual asset level by considering the performance against the programs, the company operating performance and the macroeconomic forecast. In addition, we have judgmentally applied credit loss risk factors to the future expected payments with consideration given to the timing of the payment. Given the higher inherent credit risk associated with longer term receivables, we applied a lower risk factor to the earlier years and progressively higher risk factors to the later years. During the three months ended March 31, 2022, we further considered the current and expected future economic and market conditions surrounding the novel coronavirus (COVID-19) pandemic and concluded no further adjustment was needed on the allowance for credit losses as of March 31, 2022.
Share-Based Compensation	Share-Based Compensation Share-based compensation expense for awards to employees and non-employee directors is a non-cash expense and is recognized on a straight-line basis over the vesting period. The following table summarizes share-based compensation expense recorded as components of research and development expenses and general and administrative expenses for the periods indicated (in thousands): Three months ended March 31, 2022 2021 SBC - Research and development expenses $ 3,914 $ 3,939 SBC - General and administrative expenses 5,130 4,466 $ 9,044 $ 8,405 The fair-value for options that were awarded to employees and directors was estimated at the date of grant using the Black-Scholes option valuation model with the following weighted-average assumptions: Three months ended March 31, 2022 2021 Risk-free interest rate 1.6% 0.5% Dividend yield — — Expected volatility 50% 63% Expected term (years) 4.7 5 A limited amount of performance-based restricted stock units (PSUs) contain a market condition based on our relative total shareholder return ranked on a percentile basis against the NASDAQ Biotechnology Index over a three-year performance period, with a range of 0% to 200% of the target amount granted to be issued under the award. Share-based compensation cost for these PSUs is measured using the Monte-Carlo simulation valuation model and is not adjusted for the achievement, or lack thereof, of the performance conditions.
Net Income (Loss) Per Share	Net Income (Loss) Per Share Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed based on the sum of the weighted average number of common shares and potentially dilutive common shares outstanding during the period. Diluted net loss per share is computed based on the sum of the weighted average number of common shares outstanding during the period. Potentially dilutive common shares consist of shares issuable under the 2023 Notes, stock options and restricted stock. The 2023 Notes have a dilutive impact when the average market price of our common stock exceeds the maximum conversion price. It is our intent and policy to settle conversions through combination settlement, which involves payment in cash equal to the principal portion and delivery of shares of common stock for the excess of the conversion value over the principal portion. Potentially dilutive common shares from stock options and restricted stock are determined using the average share price for each period under the treasury stock method. In addition, the following amounts are assumed to be used to repurchase shares: proceeds from exercise of stock options and the average amount of unrecognized compensation expense for the awards. See Note 4, Convertible Senior Notes and Note 6, Stockholders’ Equity .

Basis of Presentation and Sum_3

Basis of Presentation and Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Revenue by Source	The following table represents disaggregation of royalties, Captisol and contract revenue (in thousands): Three months ended March 31, 2022 2021 Royalties Kyprolis $ 4,622 $ 4,287 Evomela 2,701 2,333 Teriparatide injection 2,911 16 Rylaze 1,649 — Other 1,812 476 $ 13,695 $ 7,112 Captisol Captisol - Core $ 6,226 $ 1,253 Captisol - COVID (1) 5,896 30,019 $ 12,122 $ 31,272 Contract revenue Service Revenue $ 5,146 $ 5,462 License Fees 3,086 1,043 Milestone 9,089 8,417 Other 2,555 1,844 $ 19,876 $ 16,766 Total $ 45,693 $ 55,150 (1) Captisol - COVID represents revenue on Captisol supplied for use in formulation with remdesivir, an antiviral treatment for COVID-19.
Schedule of Short-Term Investments	Our short-term investments consist of the following at March 31, 2022 and December 31, 2021 (in thousands): Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value March 31, 2022 Bank deposits $ 6,231 $ — $ (50) $ 6,181 Corporate bonds 4,899 — (84) 4,815 Commercial paper — — — — Corporate equity securities 5,807 344 (3,043) 3,108 Mutual fund 152,253 — (854) 151,399 US government securities 3,245 — (74) 3,171 Warrants — 187 — 187 $ 172,435 $ 531 $ (4,105) $ 168,861 Viking common stock 20,145 Total short-term investments $ 189,006 December 31, 2021 Bank deposits $ 63,389 $ 13 $ (21) $ 63,381 Corporate bonds 29,308 17 (38) 29,287 Commercial paper 36,008 2 (12) 35,998 Corporate equity securities 5,807 402 (2,027) 4,182 Mutual fund 152,136 — (249) 151,887 US government securities 5,577 — (23) 5,554 Warrants — 408 — 408 $ 292,225 $ 842 $ (2,370) $ 290,697 Viking common stock 30,889 Total short-term investments $ 321,586
Schedule of Available-for-Sale Debt Securities	The following table summarizes our available-for-sale debt securities by contractual maturity (in thousands): March 31, 2022 Amortized Cost Fair Value Within one year $ 10,095 $ 10,011 After one year through five years 6,523 6,398 Total $ 16,618 $ 16,409
Schedule of Goodwill and Other Identifiable Intangible Assets	Goodwill and other identifiable intangible assets consist of the following (in thousands): March 31, December 31, 2022 2021 Indefinite-lived intangible assets Goodwill $ 181,206 $ 181,206 Definite lived intangible assets Complete technology 281,097 280,617 Less: accumulated amortization (82,861) (78,991) Trade name 2,642 2,642 Less: accumulated amortization (1,477) (1,444) Customer relationships 40,700 40,700 Less: accumulated amortization (18,934) (18,267) Contractual relationships 362,000 362,000 Less: accumulated amortization (43,460) (36,217) Total goodwill and other identifiable intangible assets, net $ 720,913 $ 732,246
Schedule of Commercial License Rights	Commercial license rights consist of the following (in thousands): March 31, 2022 December 31, 2021 Gross Adjustments (1) Net Gross Adjustments (2) Net Aziyo and CorMatrix $ 17,696 $ (9,456) $ 8,240 $ 17,696 $ (9,461) $ 8,235 Selexis and Dianomi 10,602 (8,721) 1,881 10,602 (8,727) 1,875 Total $ 28,298 $ (18,177) $ 10,121 $ 28,298 $ (18,188) $ 10,110 (1) Amounts represent accumulated amortization to principal of $11.7 million and credit loss adjustments of $6.5 million as of March 31, 2022. (2) Amounts represent accumulated amortization to principal of $11.7 million and credit loss adjustments of $6.5 million as of December 31, 2021.
Schedule of Accrued Liabilities	Accrued liabilities consist of the following (in thousands): March 31, December 31, 2022 2021 Compensation $ 3,620 $ 6,532 Professional fees 3,974 2,046 Amounts owed to former licensees 2,677 630 Royalties owed to third parties — 149 Return reserve — 2,420 Acquisition related liabilities — 1,000 Subcontractor 1,757 1,759 Supplier 1,697 848 Accrued interest 394 291 Other 1,758 1,904 Total accrued liabilities $ 15,877 $ 17,579
Schedule of Accounting for Share-Based Compensation	The following table summarizes share-based compensation expense recorded as components of research and development expenses and general and administrative expenses for the periods indicated (in thousands): Three months ended March 31, 2022 2021 SBC - Research and development expenses $ 3,914 $ 3,939 SBC - General and administrative expenses 5,130 4,466 $ 9,044 $ 8,405
Schedule of Fair-Value Options Awarded to Employees and Directors	The fair-value for options that were awarded to employees and directors was estimated at the date of grant using the Black-Scholes option valuation model with the following weighted-average assumptions: Three months ended March 31, 2022 2021 Risk-free interest rate 1.6% 0.5% Dividend yield — — Expected volatility 50% 63% Expected term (years) 4.7 5
Schedule of Computation of Basic and Diluted Earnings per Share	The following table presents the calculation of weighted average shares used to calculate basic and diluted earnings per share (in thousands): Three months ended March 31, 2022 2021 Weighted average shares outstanding: 16,824 16,435 Dilutive potential common shares: Restricted stock — 112 Stock options — 701 Shares used to compute diluted income per share 16,824 17,248 Potentially dilutive shares excluded from calculation due to anti-dilutive effect 6,001 4,277

Segment Reporting (Tables)

Segment Reporting (Tables)	3 Months Ended
	Mar. 31, 2022
Segment Reporting [Abstract]
Schedule of Reconciliation of Revenue from Segments to Consolidated	The following table provides a reconciliation of revenue and operating income by reportable segment to consolidated results and was derived from each segment’s internal financial information as used for corporate management purposes (in thousands): Three Months Ended March 31, 2022 2021 OmniAb business revenue Royalties $ 263 $ — Contract 8,915 8,559 Total OmniAb business revenue 9,178 8,559 Ligand core business revenue Royalties 13,432 7,112 Captisol - Core 6,226 1,253 Captisol - COVID 5,896 30,019 Contract 10,961 8,207 Total Ligand core business revenue 36,515 46,591 Total revenue $ 45,693 $ 55,150 Segment operating income (loss) OmniAb business $ (6,189) $ (4,604) Ligand core business 9,991 18,446 Total segment operating income 3,802 13,842 Unallocated corporate items Shared-based compensation 5,657 4,870 Other corporate expenses 7,451 4,257 Total unallocated corporate items 13,108 9,127 Income (loss) from operations $ (9,306) $ 4,715

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2022
Fair Value Disclosures [Abstract]
Schedule of Assets and Liabilities Measured at Fair Value	The following table presents the hierarchy for our assets and liabilities measured at fair value (in thousands): March 31, 2022 December 31, 2021 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Short-term investments, excluding Viking (1) $ 6,279 $ 162,394 $ 188 $ 168,861 $ 9,735 $ 280,553 $ 409 $ 290,697 Investment in Viking common stock 20,145 — — 20,145 30,889 — — 30,889 Total assets $ 26,424 $ 162,394 $ 188 $ 189,006 $ 40,624 $ 280,553 $ 409 $ 321,586 Liabilities: CyDex contingent liabilities $ — $ — $ 334 $ 334 $ — $ — $ 349 $ 349 Metabasis contingent liabilities (2) — 2,782 — 2,782 — 3,358 — 3,358 Icagen contingent liabilities (3) — — 5,376 5,376 — — 7,364 7,364 xCella contingent liabilities (4) — — 480 480 — — — — Amounts owed to former licensor 75 — — 75 86 — — 86 Total liabilities $ 75 $ 2,782 $ 6,190 $ 9,047 $ 86 $ 3,358 $ 7,713 $ 11,157 1. Excluding our investment in Viking, our short-term investments in marketable debt and equity securities are classified as available-for-sale securities based on management's intentions and are at level 2 of the fair value hierarchy, as these investment securities are valued based upon quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Short-term investments in mutual funds are valued at their net asset value (NAV) on the last day of the period. We have classified marketable securities with original maturities of greater than one year as short-term investments based upon our ability and intent to use any and all of those marketable securities to satisfy the liquidity needs of our current operations. In addition, we have investment in warrants resulting from Seelos Therapeutics Inc. milestone payments that were settled in shares during the first quarter of 2019 and are at level 3 of the fair value hierarchy, based on Black Scholes value estimated by management on the last day of the period. 2. In connection with our acquisition of Metabasis in January 2010, we issued Metabasis stockholders four tradable CVRs, one CVR from each of four respective series of CVR, for each Metabasis share. The CVRs entitle Metabasis stockholders to cash payments as frequently as every six months as cash is received by us from proceeds from the sale or partnering of any of the Metabasis drug development programs, among other triggering events. The liability for the CVRs is determined using quoted prices in a market that is not active for the underlying CVR. The carrying amount of the liability may fluctuate significantly based upon quoted market prices and actual amounts paid under the agreements may be materially different than the carrying amount of the liability. Several of the Metabasis drug development programs have been outlicensed to Viking, including VK2809. VK2809 is a novel selective TR-β agonist with potential in multiple indications, including hypercholesterolemia, dyslipidemia, NASH, and X-ALD. Under the terms of the agreement with Viking, we may be entitled to up to $375 million of development, regulatory and commercial milestones and tiered royalties on potential future sales including a $10 million payment upon initiation of a Phase 3 clinical trial. During the three months ended March 31, 2022, we adjusted the balance of the Metabasis CVR liability by $0.6 million to mark to market. 3. The fair value of Icagen contingent liabilities was determined using a probability weighted income approach. Most of the contingent payments are based on certain revenue milestones as defined in the asset purchase agreement with Icagen. The fair value is subjective and is affected by changes in inputs to the valuation model including management’s estimates regarding the timing and probability of achievement of certain developmental and regulatory milestones. Changes in these estimates may materially affect the fair value. During the three months ended March 31, 2022, we paid $1.5 million contingent liability based on revenue milestones to former Icagen shareholders.
Schedule of Reconciliation of Level 3 Financial Instruments	A reconciliation of the level 3 financial instruments as of March 31, 2022 is as follows (in thousands): Fair value of level 3 financial instruments as of December 31, 2021 $ 7,713 Payments to CVR holders and other contingent payments (1,545) Fair value adjustments to contingent liabilities (458) Contingent liabilities from xCella asset acquisition 480 Fair value of level 3 financial instruments as of March 31, 2022 $ 6,190

Convertible Senior Notes (Table

Convertible Senior Notes (Tables)	3 Months Ended
	Mar. 31, 2022
Debt Disclosure [Abstract]
Schedule of Carrying Values and Coupon Rates on Financing Arrangements	The following table summarizes information about the 2023 Notes (in thousands): March 31, 2022 December 31, 2021 (1) Principal amount of the 2023 Notes outstanding $ 177,527 $ 343,301 Unamortized discount (including unamortized debt issuance cost) (987) (22,584) Total long-term portion of notes payable $ 176,540 $ 320,717 Fair value of the 2023 Notes outstanding (Level 2) $ 172,535 $ 341,801 (1) - Balances as of December 31, 2021 reported before the adoption of ASU 2020-06.

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2022
Equity [Abstract]
Schedule of Stock Option Plan Activity	The following is a summary of our stock option and restricted stock activity and related information: Stock Options Restricted Stock Awards Shares Weighted-Average Exercise Price Shares Weighted-Average Grant Date Fair Value Balance as of December 31, 2021 2,199,598 $ 106.00 264,143 $ 138.21 Granted 14,100 $ 114.13 24,840 $ 99.85 Options exercised/RSUs vested (17,689) $ 19.61 (126,049) $ 121.18 Forfeited (23,285) $ 54.49 (782) $ 131.95 Balance as of March 31, 2022 2,172,724 $ 107.31 162,152 $ 145.60
Schedule of Restricted Stock Activity	The following is a summary of our stock option and restricted stock activity and related information: Stock Options Restricted Stock Awards Shares Weighted-Average Exercise Price Shares Weighted-Average Grant Date Fair Value Balance as of December 31, 2021 2,199,598 $ 106.00 264,143 $ 138.21 Granted 14,100 $ 114.13 24,840 $ 99.85 Options exercised/RSUs vested (17,689) $ 19.61 (126,049) $ 121.18 Forfeited (23,285) $ 54.49 (782) $ 131.95 Balance as of March 31, 2022 2,172,724 $ 107.31 162,152 $ 145.60

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2022
Leases [Abstract]
Schedule of Operating and Finance Lease Assets and Liabilities	Operating and Finance Lease Assets and Liabilities (in thousands): Assets March 31, 2022 December 31, 2021 Operating lease assets $ 15,783 $ 16,542 Finance lease assets 15,620 16,207 Total lease assets $ 31,403 $ 32,749 Liabilities Current operating lease liabilities $ 1,850 $ 2,053 Current finance lease liabilities 52 46 1,902 2,099 Long-term operating lease liabilities 16,758 15,494 Long-term finance lease liabilities 39 58 Total lease liabilities $ 18,699 $ 17,651
Schedule of Maturity of Operating Lease Liabilities	Maturity of Operating and Finance Lease Liabilities as of March 31, 2022 (in thousands): Maturity Dates Operating Leases Remaining nine months ending December 31, 2022 $ 1,020 2023 2,712 2024 2,716 2025 2,614 2026 2,700 2027 2,727 Thereafter 8,074 Total lease payments 22,563 Less imputed interest (3,864) Present value of lease liabilities $ 18,699

Basis of Presentation and Sum_4

Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Details) shares in Thousands	3 Months Ended
	Mar. 31, 2022USD ($)positionshares	Mar. 31, 2021USD ($)shares	Dec. 31, 2021USD ($)	Dec. 31, 2020USD ($)
Property, Plant and Equipment [Line Items]
Deferred tax liabilities	$ 39,480,000		$ 59,095,000
Stockholders' equity	793,192,000	$ 745,840,000	821,159,000	$ 709,525,000
Revenue recognized that was previously deferred	$ 3,700,000	$ 7,300,000
Number of positions in an unrealized loss position | position	13
Credit losses related to available-for-sale debt securities	$ 0
Additional allowance for credit losses recorded related to COVID-19	(100,000)
Inventory	$ 25,614,000		27,326,000
Potentially dilutive shares excluded from calculation due to anti-dilutive effect (in shares) | shares	6,001	4,277
Additional paid in capital
Property, Plant and Equipment [Line Items]
Stockholders' equity	$ 325,368,000	$ 336,621,000	372,969,000	318,358,000
Retained earnings
Property, Plant and Equipment [Line Items]
Stockholders' equity	$ 468,838,000	$ 410,058,000	449,090,000	$ 391,952,000
Adjustment
Property, Plant and Equipment [Line Items]
Stockholders' equity			(15,997,000)
Adjustment | Additional paid in capital
Property, Plant and Equipment [Line Items]
Stockholders' equity			(51,130,000)
Adjustment | Retained earnings
Property, Plant and Equipment [Line Items]
Stockholders' equity			35,133,000
Adjusted Balance
Property, Plant and Equipment [Line Items]
Convertible notes payable			341,100,000
Unamortized discount			2,200,000
Accounting Standards Update 2020-06
Property, Plant and Equipment [Line Items]
Potentially dilutive shares excluded from calculation due to anti-dilutive effect (in shares) | shares	1,800
Accounting Standards Update 2020-06 | Adjustment
Property, Plant and Equipment [Line Items]
Convertible notes payable			20,400,000
Deferred tax liabilities			(4,400,000)
Accounting Standards Update 2020-06 | Adjustment | Additional paid in capital
Property, Plant and Equipment [Line Items]
Stockholders' equity			(51,100,000)
Accounting Standards Update 2020-06 | Adjustment | Retained earnings
Property, Plant and Equipment [Line Items]
Stockholders' equity			35,100,000
Captisol
Property, Plant and Equipment [Line Items]
Inventory	$ 21,100,000		$ 24,600,000
Share-based Compensation
Property, Plant and Equipment [Line Items]
Potentially dilutive shares excluded from calculation due to anti-dilutive effect (in shares) | shares	400
Restricted Stock Awards
Property, Plant and Equipment [Line Items]
Performance period for awards	3 years
Maximum | Restricted Stock Awards
Property, Plant and Equipment [Line Items]
Payout range (as a percent)	200.00%
Minimum | Restricted Stock Awards
Property, Plant and Equipment [Line Items]
Payout range (as a percent)	0.00%

Basis of Presentation and Sum_5

Basis of Presentation and Summary of Significant Accounting Policies - Revenue by Source (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Disaggregation of Revenue [Line Items]
Total revenue	$ 45,693	$ 55,150
Royalties
Disaggregation of Revenue [Line Items]
Total revenue	13,695	7,112
Kyprolis
Disaggregation of Revenue [Line Items]
Total revenue	4,622	4,287
Evomela
Disaggregation of Revenue [Line Items]
Total revenue	2,701	2,333
Teriparatide injection
Disaggregation of Revenue [Line Items]
Total revenue	2,911	16
Rylaze
Disaggregation of Revenue [Line Items]
Total revenue	1,649	0
Other
Disaggregation of Revenue [Line Items]
Total revenue	1,812	476
Captisol
Disaggregation of Revenue [Line Items]
Total revenue	12,122	31,272
Captisol - Core
Disaggregation of Revenue [Line Items]
Total revenue	6,226	1,253
Captisol - COVID
Disaggregation of Revenue [Line Items]
Total revenue	5,896	30,019
Contract revenue
Disaggregation of Revenue [Line Items]
Total revenue	19,876	16,766
Service Revenue
Disaggregation of Revenue [Line Items]
Total revenue	5,146	5,462
License Fees
Disaggregation of Revenue [Line Items]
Total revenue	3,086	1,043
Milestone
Disaggregation of Revenue [Line Items]
Total revenue	9,089	8,417
Other
Disaggregation of Revenue [Line Items]
Total revenue	$ 2,555	$ 1,844

Basis of Presentation and Sum_6

Basis of Presentation and Summary of Significant Accounting Policies - Investment Categories (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Debt Securities, Available-for-sale [Line Items]
Amortized cost	$ 172,435	$ 292,225
Gross unrealized gains	531	842
Gross unrealized losses	(4,105)	(2,370)
Estimated fair value	168,861	290,697
Total short-term investments	189,006	321,586
Bank deposits
Debt Securities, Available-for-sale [Line Items]
Amortized cost	6,231	63,389
Gross unrealized gains	0	13
Gross unrealized losses	(50)	(21)
Estimated fair value	6,181	63,381
Corporate bonds
Debt Securities, Available-for-sale [Line Items]
Amortized cost	4,899	29,308
Gross unrealized gains	0	17
Gross unrealized losses	(84)	(38)
Estimated fair value	4,815	29,287
Commercial paper
Debt Securities, Available-for-sale [Line Items]
Amortized cost	0	36,008
Gross unrealized gains	0	2
Gross unrealized losses	0	(12)
Estimated fair value	0	35,998
Corporate equity securities
Debt Securities, Available-for-sale [Line Items]
Amortized cost	5,807	5,807
Gross unrealized gains	344	402
Gross unrealized losses	(3,043)	(2,027)
Estimated fair value	3,108	4,182
Mutual fund
Debt Securities, Available-for-sale [Line Items]
Amortized cost	152,253	152,136
Gross unrealized gains	0	0
Gross unrealized losses	(854)	(249)
Estimated fair value	151,399	151,887
US government securities
Debt Securities, Available-for-sale [Line Items]
Amortized cost	3,245	5,577
Gross unrealized gains	0	0
Gross unrealized losses	(74)	(23)
Estimated fair value	3,171	5,554
Warrants
Debt Securities, Available-for-sale [Line Items]
Amortized cost	0	0
Gross unrealized gains	187	408
Gross unrealized losses	0	0
Estimated fair value	187	408
Common Stock
Debt Securities, Available-for-sale [Line Items]
Viking common stock	$ 20,145	$ 30,889

Basis of Presentation and Sum_7

Basis of Presentation and Summary of Significant Accounting Policies - Available-for-Sale Debt Securities by Contractual Maturity (Details) $ in Thousands	Mar. 31, 2022USD ($)
Amortized Cost
Within one year	$ 10,095
After one year through five years	6,523
Total	16,618
Fair Value
Within one year	10,011
After one year through five years	6,398
Total	$ 16,409

Basis of Presentation and Sum_8

Basis of Presentation and Summary of Significant Accounting Policies - Goodwill and Other Identifiable Intangible Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Summary of Goodwill and Other Identifiable Intangible Assets
Goodwill	$ 181,206	$ 181,206
Total goodwill and other identifiable intangible assets, net	720,913	732,246
Complete technology
Summary of Goodwill and Other Identifiable Intangible Assets
Definite lived intangible assets	281,097	280,617
Less: accumulated amortization	(82,861)	(78,991)
Trade name
Summary of Goodwill and Other Identifiable Intangible Assets
Definite lived intangible assets	2,642	2,642
Less: accumulated amortization	(1,477)	(1,444)
Customer relationships
Summary of Goodwill and Other Identifiable Intangible Assets
Definite lived intangible assets	40,700	40,700
Less: accumulated amortization	(18,934)	(18,267)
Contractual relationships
Summary of Goodwill and Other Identifiable Intangible Assets
Definite lived intangible assets	362,000	362,000
Less: accumulated amortization	$ (43,460)	$ (36,217)

Basis of Presentation and Sum_9

Basis of Presentation and Summary of Significant Accounting Policies - Commercial License Rights (Details) - Commercial license rights - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Commercial License and Other Economic Rights
Gross	$ 28,298	$ 28,298
Adjustments	(18,177)	(18,188)
Net	10,121	10,110
Accumulated amortization on finite-lived intangible assets	(11,700)	11,700
Credit loss adjustments of finite-lived intangible assets	(6,500)	6,500
Aziyo and CorMatrix
Commercial License and Other Economic Rights
Gross	17,696	17,696
Adjustments	(9,456)	(9,461)
Net	8,240	8,235
Selexis and Dianomi
Commercial License and Other Economic Rights
Gross	10,602	10,602
Adjustments	(8,721)	(8,727)
Net	$ 1,881	$ 1,875

Basis of Presentation and Su_10

Basis of Presentation and Summary of Significant Accounting Policies - Accrued Liabilities and Other Long-Term Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Accrued Liabilities
Compensation	$ 3,620	$ 6,532
Professional fees	3,974	2,046
Amounts owed to former licensees	2,677	630
Royalties owed to third parties	0	149
Return reserve	0	2,420
Acquisition related liabilities	0	1,000
Subcontractor	1,757	1,759
Supplier	1,697	848
Accrued interest	394	291
Other	1,758	1,904
Total accrued liabilities	$ 15,877	$ 17,579

Basis of Presentation and Su_11

Basis of Presentation and Summary of Significant Accounting Policies - Accounting for Share-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Basis of Presentation [Line Items]
Share-based compensation expense	$ 9,044	$ 8,405
SBC - Research and development expenses
Basis of Presentation [Line Items]
Share-based compensation expense	3,914	3,939
SBC - General and administrative expenses
Basis of Presentation [Line Items]
Share-based compensation expense	$ 5,130	$ 4,466

Basis of Presentation and Su_12

Basis of Presentation and Summary of Significant Accounting Policies - Fair Value Valuation Assumptions (Details)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Risk-free interest rate (as a percent)	1.60%	0.50%
Dividend yield (as a percent)	0.00%	0.00%
Expected volatility (as a percent)	50.00%	63.00%
Expected term (years)	4 years 8 months 12 days	5 years

Basis of Presentation and Su_13

Basis of Presentation and Summary of Significant Accounting Policies - Earnings (Loss) Per Share (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Summary of computation of basic and diluted net income (loss) per share
Weighted average shares outstanding (in shares)	16,824	16,435
Dilutive potential common shares:
Shares used to compute diluted income per share (in shares)	16,824	17,248
Potentially dilutive shares excluded from calculation due to anti-dilutive effect (in shares)	6,001	4,277
Restricted stock
Dilutive potential common shares:
Dilutive potential common shares (in shares)	0	112
Stock Options
Dilutive potential common shares:
Dilutive potential common shares (in shares)	0	701

Segment Information (Details)

Segment Information (Details) $ in Thousands	Mar. 31, 2022segment	Mar. 31, 2022USD ($)	Mar. 22, 2022segment	Mar. 31, 2021USD ($)
Segment Reporting [Abstract]
Number of reportable segments | segment	2		1
Segment Reporting, Revenue Reconciling Item [Line Items]
Total revenue		$ 45,693		$ 55,150
Total segment operating income		(20,140)		5,764
Total operating costs and expenses		54,999		50,435
Income (loss) from operations		(9,306)		4,715
Operating Segments
Segment Reporting, Revenue Reconciling Item [Line Items]
Total revenue		45,693		55,150
Total segment operating income		3,802		13,842
Corporate, Non-Segment
Segment Reporting, Revenue Reconciling Item [Line Items]
Shared-based compensation		5,657		4,870
Other corporate expenses		7,451		4,257
Total operating costs and expenses		13,108		9,127
Royalties
Segment Reporting, Revenue Reconciling Item [Line Items]
Total revenue		13,695		7,112
Captisol - Core
Segment Reporting, Revenue Reconciling Item [Line Items]
Total revenue		6,226		1,253
Captisol - COVID
Segment Reporting, Revenue Reconciling Item [Line Items]
Total revenue		5,896		30,019
Contract revenue
Segment Reporting, Revenue Reconciling Item [Line Items]
Total revenue		19,876		16,766
OmniAb Technologies | Operating Segments
Segment Reporting, Revenue Reconciling Item [Line Items]
Total revenue		9,178		8,559
Total segment operating income		(6,189)		(4,604)
OmniAb Technologies | Royalties | Operating Segments
Segment Reporting, Revenue Reconciling Item [Line Items]
Total revenue		263		0
OmniAb Technologies | Contract revenue | Operating Segments
Segment Reporting, Revenue Reconciling Item [Line Items]
Total revenue		8,915		8,559
Ligand Core Business | Operating Segments
Segment Reporting, Revenue Reconciling Item [Line Items]
Total revenue		36,515		46,591
Total segment operating income		9,991		18,446
Ligand Core Business | Royalties | Operating Segments
Segment Reporting, Revenue Reconciling Item [Line Items]
Total revenue		13,432		7,112
Ligand Core Business | Captisol - Core | Operating Segments
Segment Reporting, Revenue Reconciling Item [Line Items]
Total revenue		6,226		1,253
Ligand Core Business | Captisol - COVID | Operating Segments
Segment Reporting, Revenue Reconciling Item [Line Items]
Total revenue		5,896		30,019
Ligand Core Business | Contract revenue | Operating Segments
Segment Reporting, Revenue Reconciling Item [Line Items]
Total revenue		$ 10,961		$ 8,207

Fair Value Measurements - Asset

Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details)	1 Months Ended	3 Months Ended
	Jan. 31, 2010contingent_value_rightcontingent_value_right_series	Mar. 31, 2022USD ($)	Dec. 31, 2021USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Number of CVR Series | contingent_value_right_series	4
Transferred over Time | Phase 3 Clinical Trial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Gross contract asset		$ 10,000,000
Maximum | Transferred over Time | Development, Regulatory, & Commercial Milestones and Tiered Royalties
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments		375,000,000
Metabasis
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Number of CVRs issued per acquiree share | contingent_value_right	4
Number of CVRs issued from each CVR series | contingent_value_right	1
Frequency of cash payments to CVR holders	6 months
xCella | Earnout Rights for Partner Research and Development
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Earnout rights recognized		500,000
Contingent liabilities - Metabasis
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mark-to-market adjustment of CVR liability		600,000
Contingent liabilities - Icagen
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Payment for contingent consideration liabilities		1,500,000
Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value		189,006,000	$ 321,586,000
Liabilities, fair value		9,047,000	11,157,000
Recurring | Contingent liabilities - CyDex
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value		334,000	349,000
Recurring | Contingent liabilities - Metabasis
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value		2,782,000	3,358,000
Recurring | Contingent liabilities - Icagen
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value		5,376,000	7,364,000
Recurring | Contingent liabilities - xCella
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value		480,000	0
Recurring | Amounts owed to former licensor
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value		75,000	86,000
Recurring | Short-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value		168,861,000	290,697,000
Recurring | Investment in Viking common stock
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value		20,145,000
Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value		26,424,000	40,624,000
Liabilities, fair value		75,000	86,000
Recurring | Level 1 | Contingent liabilities - CyDex
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value		0	0
Recurring | Level 1 | Contingent liabilities - Metabasis
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value		0	0
Recurring | Level 1 | Contingent liabilities - Icagen
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value		0	0
Recurring | Level 1 | Contingent liabilities - xCella
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value		0	0
Recurring | Level 1 | Amounts owed to former licensor
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value		75,000	86,000
Recurring | Level 1 | Short-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value		6,279,000	9,735,000
Recurring | Level 1 | Investment in Viking common stock
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value			30,889,000
Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value		162,394,000	280,553,000
Liabilities, fair value		2,782,000	3,358,000
Recurring | Level 2 | Contingent liabilities - CyDex
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value		0	0
Recurring | Level 2 | Contingent liabilities - Metabasis
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value		2,782,000	3,358,000
Recurring | Level 2 | Contingent liabilities - Icagen
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value		0	0
Recurring | Level 2 | Contingent liabilities - xCella
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value		0	0
Recurring | Level 2 | Amounts owed to former licensor
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value		0	0
Recurring | Level 2 | Short-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value		162,394,000	280,553,000
Recurring | Level 2 | Investment in Viking common stock
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value		0	0
Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value		188,000	409,000
Liabilities, fair value		6,190,000	7,713,000
Recurring | Level 3 | Contingent liabilities - CyDex
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value		334,000	349,000
Recurring | Level 3 | Contingent liabilities - Metabasis
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value		0	0
Recurring | Level 3 | Contingent liabilities - Icagen
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value		5,376,000	7,364,000
Recurring | Level 3 | Contingent liabilities - xCella
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value		480,000	0
Recurring | Level 3 | Amounts owed to former licensor
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value		0	0
Recurring | Level 3 | Short-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value		188,000	409,000
Recurring | Level 3 | Investment in Viking common stock
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value		$ 0	$ 0

Fair Value Measurements - Recon

Fair Value Measurements - Reconciliation of Level 3 Financial Instruments (Details) - Level 3 $ in Thousands	3 Months Ended
	Mar. 31, 2022USD ($)
Financial and Nonfinancial Liabilities, Fair Value Disclosure [Roll Forward]
Fair value of level 3 financial instruments as of December 31, 2021	$ 7,713
Payments to CVR holders and other contingent payments	(1,545)
Fair value adjustments to contingent liabilities	(458)
Contingent liabilities from xCella asset acquisition	480
Fair value of level 3 financial instruments as of March 31, 2022	$ 6,190

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details)	3 Months Ended
	Mar. 31, 2022reporting_unit
Fair Value Disclosures [Abstract]
Number of reporting units	2

Convertible Senior Notes - Narr

Convertible Senior Notes - Narrative (Details)	1 Months Ended		3 Months Ended		12 Months Ended
	Jan. 31, 2021USD ($)	May 31, 2018USD ($)d$ / sharesshares	Mar. 31, 2022USD ($)	Mar. 31, 2021USD ($)	Dec. 31, 2021USD ($)optionshares
Debt Instrument [Line Items]
Gain on extinguishment of debt			$ 1,532,000	$ (4,840,000)
Adjustments to additional paid-in-capital from warrants					$ 500,000
Payments to unwind warrants					18,400,000
Proceeds from unwinding convertible bond hedges					$ 18,900,000
Number of options under convertible bond hedges | option					598,021
Convertible Notes | 2023 Convertible Senior Notes
Debt Instrument [Line Items]
Interest rate (as a percent)		0.75%
Aggregate principal amount outstanding		$ 750,000,000	177,527,000		$ 343,301,000
Proceeds from debt, net of issuance costs		$ 733,100,000
Initial conversion rate (shares per $1,000)		0.0040244
Initial conversion price (USD per share) | $ / shares		$ 248.48
Debt issuance costs			$ 16,900,000
Term of debt instrument			5 years
Effective interest rate (as a percent)			0.50%
Total interest expense			$ 800,000
Contractual interest expense			500,000
Amortized issuance costs			300,000
Repurchased amount of debt instrument	$ 20,300,000		165,800,000		152,000,000
Repayments of notes	19,100,000		163,700,000		156,000,000
Accrued interest portion of repurchased amount of debt instrument	$ 100,000		400,000		300,000
Outstanding principal amount of debt					$ 343,300,000
Gain on extinguishment of debt			1,500,000
Increase (decrease) in debt discount			$ 900,000
Warrants issued in public offering (shares) | shares		3,018,327			2,559,254
Payments for convertible bond hedges		$ 140,300,000
Warrant exercise price (USD per share) | $ / shares		$ 315.38
Adjustments to additional paid-in-capital from warrants		$ 90,000,000
Accrued Interest					$ 300,000
Convertible Notes | 2023 Convertible Senior Notes | Maximum
Debt Instrument [Line Items]
Initial conversion rate (shares per $1,000)		0.0052317
Initial conversion price (USD per share) | $ / shares		$ 191.14
Convertible Notes | 2023 Convertible Senior Notes | Debt Instrument, Redemption, Period One
Debt Instrument [Line Items]
Threshold trading days | d		20
Consecutive trading days | d		30
Stock price trigger to classify convertible debt as current (as a percent)		130.00%
Convertible Notes | 2023 Convertible Senior Notes | Debt Instrument, Redemption, Period Two
Debt Instrument [Line Items]
Threshold trading days | d		5
Consecutive trading days | d		10
Maximum threshold of debt trading price trigger (as a percent)		98.00%

Convertible Senior Notes - Note

Convertible Senior Notes - Notes Payable (Details) - Convertible Notes - 2023 Convertible Senior Notes - USD ($)	Mar. 31, 2022	Dec. 31, 2021	May 31, 2018
Notes Payable, Current and Noncurrent [Abstract]
Principal amount of the 2023 Notes outstanding	$ 177,527,000	$ 343,301,000	$ 750,000,000
Unamortized discount (including unamortized debt issuance cost)	(987,000)	(22,584,000)
Total long-term portion of notes payable	176,540,000	320,717,000
Fair value of the 2023 Notes outstanding (Level 2)	$ 172,535,000	$ 341,801,000

Income Tax (Details)

Income Tax (Details)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Tax Disclosure [Abstract]
Effective income tax rate (as a percent)	23.60%	(214.10%)

Stockholders' Equity - Stock Op

Stockholders' Equity - Stock Option Plan and Restricted Stock Activity (Details)	3 Months Ended
	Mar. 31, 2022$ / sharesshares
Stock Options
Shares
Balance at beginning of period (shares) | shares	2,199,598
Granted (shares) | shares	14,100
Options exercised (shares) | shares	(17,689)
Forfeited (shares) | shares	(23,285)
Balance at end of period (shares) | shares	2,172,724
Weighted-Average Exercise Price
Balance at beginning of period (USD per share) | $ / shares	$ 106
Granted (USD per share) | $ / shares	114.13
Options exercised (USD per share) | $ / shares	19.61
Forfeited (USD per share) | $ / shares	54.49
Balance at end of period (USD per share) | $ / shares	$ 107.31
Restricted Stock Awards
Restricted Stock Awards
Nonvested at beginning of period (shares) | shares	264,143
Granted (shares) | shares	24,840
RSUs vested (shares) | shares	(126,049)
Forfeited (shares) | shares	(782)
Nonvested at end of period (shares) | shares	162,152
Weighted-Average Grant Date Fair Value
Nonvested at beginning of period (USD per share) | $ / shares	$ 138.21
Granted (USD per share) | $ / shares	99.85
RSUs vested (USD per share) | $ / shares	121.18
Forfeited (USD per share) | $ / shares	131.95
Nonvested at end of period (USD per share) | $ / shares	$ 145.60

Stockholders' Equity - Narrativ

Stockholders' Equity - Narrative (Details) - USD ($)	Sep. 11, 2019	Mar. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding options that are exercisable (shares)		1,500,000
Outstanding options that are exercisable, weighted average exercise price (USD per share)		$ 100.59
Employee Stock Purchase Plan
Authorized stock repurchase amount	$ 500,000,000
Period in force of stock repurchase program	3 years
Stock repurchased during period		$ 0
Remaining authorized stock repurchase amount		$ 248,800,000
Employee Stock Purchase Plan
Employee Stock Purchase Plan
Share purchase price as percent of market price (as a percent)		85.00%
Shares available for future purchases (shares)		44,360

Commitment and Contingencies__2

Commitment and Contingencies: Legal Proceedings (Details)	Oct. 31, 2019civil_complaint
US District Court for the Northern District of Ohio
Loss Contingencies [Line Items]
Number of civil complaints filed against entity	3

Leases - Narrative (Details)

Leases - Narrative (Details) - Maximum	Mar. 31, 2022
Lessee, Lease, Description [Line Items]
Remaining lease term of operating leases	10 years
Lease renewal term of operating leases	5 years

Leases - Operating and Finance

Leases - Operating and Finance Lease Assets and Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Assets
Operating lease assets	$ 15,783	$ 16,542
Finance lease assets	15,620	16,207
Total lease assets	31,403	32,749
Current liabilities:
Current operating lease liabilities	1,850	2,053
Current financing lease liabilities	52	46
Current lease liabilities	1,902	2,099
Noncurrent liabilities:
Long-term operating lease liabilities	16,758	15,494
Long-term finance lease liabilities	39	58
Total lease liabilities	$ 18,699	$ 17,651

Leases - Maturity of Operating

Leases - Maturity of Operating Lease Liabilities (Details) $ in Thousands	Mar. 31, 2022USD ($)
Leases [Abstract]
Remaining nine months ending December 31, 2022	$ 1,020
2023	2,712
2024	2,716
2025	2,614
2026	2,700
2027	2,727
Thereafter	8,074
Total lease payments	22,563
Less imputed interest	(3,864)
Present value of lease liabilities	$ 18,699