Ligand Pharmaceuticals (LGND) 10-Q 8 Nov 22 2022 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2022	Nov. 04, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 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	3911 Sorrento Valley Boulevard, Suite 110
Entity Address, City or Town	San Diego
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92121
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		16,893,579
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Entity Central Index Key	0000886163
Current Fiscal Year End Date	--12-31

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 4,116	$ 19,522
Short-term investments	117,291	321,586
Accounts receivable, net	65,168	85,453
Inventory	22,326	27,326
Income taxes receivable	785	6,193
Other current assets	10,746	4,671
Total current assets	220,432	464,751
Deferred income taxes, net	35,500	34,482
Intangible assets, net	517,025	551,040
Goodwill	181,206	181,206
Commercial license rights, net	10,193	10,110
Property and equipment, net	33,418	20,511
Operating lease right-of-use assets	32,108	16,542
Financing lease right-of-use assets	14,444	16,207
Other assets	6,279	2,741
Total assets	1,050,605	1,297,590
Current liabilities:
Accounts payable	15,887	8,403
Accrued liabilities	19,338	17,579
Income taxes payable	9,703	0
Current contingent liabilities	1,773	2,588
Deferred revenue	9,547	10,996
Current operating lease liabilities	2,345	2,053
Current financing lease liabilities	48	46
2023 convertible senior notes, net	76,600	0
Total current liabilities	135,241	41,665
2023 convertible senior notes, net	0	320,717
Long-term contingent liabilities	6,855	8,483
Deferred income taxes, net	29,832	59,095
Long-term operating lease liabilities	34,893	15,494
Long-term deferred revenue	5,537	9,270
Other long-term liabilities	21,949	21,707
Total liabilities	234,307	476,431
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.001 par value; 5,000 shares authorized; zero issued and outstanding at September 30, 2022 and December 31, 2021	0	0
Common stock, $0.001 par value; 60,000 shares authorized; 16,894 and 16,767 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively	17	17
Additional paid-in capital	348,994	372,969
Accumulated other comprehensive loss	(1,060)	(917)
Retained earnings	468,347	449,090
Total stockholders' equity	816,298	821,159
Total liabilities and stockholders' equity	$ 1,050,605	$ 1,297,590

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Preferred stock, par value (in USD per share)	$ 0.001	$ 0.001
Preferred stock authorized (in shares)	5,000,000	5,000,000
Preferred stock issued (in shares)	0	0
Preferred stock outstanding (in shares)	0	0
Common stock, par value (in USD per share)	$ 0.001	$ 0.001
Common stock authorized (in shares)	60,000,000	60,000,000
Common stock issued (in shares)	16,894,000	16,767,000
Common stock outstanding (in shares)	16,894,000	16,767,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenues:
Total revenues	$ 66,088	$ 64,835	$ 169,200	$ 204,660
Operating costs and expenses:
Cost of Captisol	14,153	11,446	31,213	50,192
Amortization of intangibles	11,818	11,827	35,455	35,391
Research and development	22,036	16,938	61,461	50,769
General and administrative	17,445	12,718	50,210	39,747
Other operating income	0	(3,800)	0	(37,600)
Total operating costs and expenses	65,452	49,129	178,339	138,499
Income (loss) from operations	636	15,706	(9,139)	66,161
Other income (expense):
Gain (loss) from short-term investments	(923)	1,937	(15,709)	8,135
Interest income	591	169	1,023	698
Interest expense	(332)	(4,439)	(1,559)	(15,154)
Other income (expense), net	885	1,886	5,465	(5,516)
Total other expense, net	221	(447)	(10,780)	(11,837)
Income (loss) before income taxes	857	15,259	(19,919)	54,324
Income tax benefit (expense)	(453)	(1,536)	4,043	8,230
Net income (loss)	$ 404	$ 13,723	$ (15,876)	$ 62,554
Earnings per share
Basic net income (loss) per share (in USD per share)	$ 0.02	$ 0.82	$ (0.94)	$ 3.77
Shares used in basic per share calculations (in shares)	16,888	16,688	16,860	16,595
Diluted net income (loss) per share (in USD per share)	$ 0.02	$ 0.80	$ (0.94)	$ 3.64
Shares used in diluted per share calculations (in shares)	17,132	17,142	16,860	17,187
Royalties
Revenues:
Total revenues	$ 19,837	$ 15,648	$ 51,491	$ 31,376
Captisol
Revenues:
Total revenues	35,949	35,093	77,616	128,875
Contract revenue
Revenues:
Total revenues	$ 10,302	$ 14,094	$ 40,093	$ 44,409

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 404	$ 13,723	$ (15,876)	$ 62,554
Unrealized net gain (loss) on available-for-sale securities, net of tax	6	(14)	(143)	(74)
Comprehensive income (loss)	$ 410	$ 13,709	$ (16,019)	$ 62,480

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 capital Adjustment	Accumulated other comprehensive loss	Retained earnings	Retained earnings Adjustment
Balance at beginning of period (in 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 (in 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 gain (loss) on available-for-sale securities, net of deferred tax	(55)					(55)
Reacquisition of equity due to 2023 debt extinguishment, net of tax	(11,118)			(11,118)
Warrant and bond hedge unwind transactions	396			396
Net income (loss)	18,106						18,106
Balance at end of period (in 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 (in 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]
Unrealized net gain (loss) on available-for-sale securities, net of deferred tax	(74)
Net income (loss)	62,554
Balance at end of period (in shares) at Sep. 30, 2021			16,707
Balance at end of period at Sep. 30, 2021	812,066		$ 17	358,418		(875)	454,506
Balance at beginning of period (in 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 (in shares) at Dec. 31, 2021	16,767		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
Balance at beginning of period (in shares) at Mar. 31, 2021			16,652
Balance at beginning of period at Mar. 31, 2021	745,840		$ 17	336,621		(856)	410,058
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock under employee stock compensation plans, net of shares withheld for payroll taxes (in shares)			24
Issuance of common stock under employee stock compensation plans, net of shares withheld for payroll taxes	1,103			1,103
Share-based compensation	10,216			10,216
Unrealized net gain (loss) on available-for-sale securities, net of deferred tax	(5)					(5)
Reacquisition of equity due to 2023 debt extinguishment, net of tax	(1,362)			(1,362)
Net income (loss)	30,725						30,725
Balance at end of period (in shares) at Jun. 30, 2021			16,676
Balance at end of period at Jun. 30, 2021	786,517		$ 17	346,578		(861)	440,783
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock under employee stock compensation plans, net of shares withheld for payroll taxes (in shares)			31
Issuance of common stock under employee stock compensation plans, net of shares withheld for payroll taxes	1,898			1,898
Share-based compensation	9,754			9,754
Unrealized net gain (loss) on available-for-sale securities, net of deferred tax	(14)					(14)
Reacquisition of equity due to 2023 debt extinguishment, net of tax	92			92
Warrant and bond hedge unwind transactions	96			96
Net income (loss)	13,723						13,723
Balance at end of period (in shares) at Sep. 30, 2021			16,707
Balance at end of period at Sep. 30, 2021	$ 812,066		$ 17	358,418		(875)	454,506
Balance at beginning of period (in shares) at Dec. 31, 2021	16,767		16,767
Balance at beginning 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 (in 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 gain (loss) on available-for-sale securities, net of deferred tax	(114)					(114)
Net income (loss)	(15,385)						(15,385)
Balance at end of period (in 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
Balance at beginning of period (in shares) at Dec. 31, 2021	16,767		16,767
Balance at beginning 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]
Unrealized net gain (loss) on available-for-sale securities, net of deferred tax	(143)
Net income (loss)	$ (15,876)
Balance at end of period (in shares) at Sep. 30, 2022	16,894		16,894
Balance at end of period at Sep. 30, 2022	$ 816,298		$ 17	348,994		(1,060)	468,347
Balance at beginning of period (in shares) at Mar. 31, 2022			16,861
Balance at beginning of period at Mar. 31, 2022	793,192		$ 17	325,368		(1,031)	468,838
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock under employee stock compensation plans, net of shares withheld for payroll taxes (in shares)			21
Issuance of common stock under employee stock compensation plans, net of shares withheld for payroll taxes	604			604
Share-based compensation	9,499			9,499
Unrealized net gain (loss) on available-for-sale securities, net of deferred tax	(35)					(35)
Net income (loss)	(895)						(895)
Balance at end of period (in shares) at Jun. 30, 2022			16,882
Balance at end of period at Jun. 30, 2022	802,365		$ 17	335,471		(1,066)	467,943
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock under employee stock compensation plans, net of shares withheld for payroll taxes (in shares)			12
Issuance of common stock under employee stock compensation plans, net of shares withheld for payroll taxes	724			724
Share-based compensation	12,597			12,597
Unrealized net gain (loss) on available-for-sale securities, net of deferred tax	6					6
Warrant and bond hedge unwind transactions	202			202
Net income (loss)	$ 404						404
Balance at end of period (in shares) at Sep. 30, 2022	16,894		16,894
Balance at end of period at Sep. 30, 2022	$ 816,298		$ 17	$ 348,994		$ (1,060)	$ 468,347

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Cash flows from operating activities:
Net (loss) income	$ (15,876)	$ 62,554
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Change in estimated fair value of contingent liabilities	(1,378)	(39,377)
Depreciation and amortization of intangible assets	40,399	37,902
Amortization of premium on investments, net	75	145
Amortization of debt discount and issuance fees	639	12,863
Amortization of commercial license rights	(163)	96
Loss (gain) on debt extinguishment	(4,192)	7,303
Share-based compensation	31,140	28,375
Deferred income taxes	(25,570)	(8,229)
Loss (gain) from short-term investments	15,709	(8,135)
Lease amortization expense	4,535	3,349
Other	(45)	658
Changes in operating assets and liabilities:
Accounts receivable, net	20,550	(8,838)
Inventory	10,702	(3,103)
Accounts payable and accrued liabilities	(405)	(3,635)
Income tax receivable and payable	15,111	(4,167)
Deferred revenue	(5,182)	(20,696)
Other assets and liabilities	(1,671)	(5,909)
Net cash provided by operating activities	84,378	51,156
Cash flows from investing activities:
Purchase of short-term investments	(39,052)	(116,898)
Proceeds from sale of short-term investments	202,552	152,465
Proceeds from maturity of short-term investments	24,830	37,100
Cash paid for equity method investment	(750)	0
Purchase of property and equipment	(15,792)	(6,566)
Payments to CVR Holders	(960)	0
Other	80	135
Net cash provided by investing activities	170,908	66,236
Cash flows from financing activities:
Repurchase of 2023 Notes	(260,949)	(155,760)
Payments under financing lease obligations	(42)	(9,188)
Proceeds from convertible bond hedge settlement	202	18,938
Payments to convertible bond holders for warrant purchases	0	(18,446)
Net proceeds from stock option exercises and ESPP	1,831	29,484
Taxes paid related to net share settlement of equity awards	(6,018)	(5,903)
Payments to CVR Holders	(1,545)	(1,050)
Payments for OmniAb transaction costs	(4,171)	0
Net cash used in financing activities	(270,692)	(141,925)
Net decrease in cash, cash equivalents and restricted cash	(15,406)	(24,533)
Cash, cash equivalents and restricted cash at beginning of period	19,522	47,963
Cash, cash equivalents and restricted cash at end of period	4,116	23,430
Supplemental disclosure of cash flow information:
Interest paid	1,139	1,740
Taxes paid	6,630	3,720
Supplemental schedule of non-cash activity:
Accrued fixed asset purchases	3,626	557
Accrued inventory purchases	7,676	4,968
Unrealized loss on AFS investments	$ (143)	$ (74)

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 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. Reclassifications Certain amounts in the prior period condensed consolidated financial statements have been reclassified to conform with the current period presentation. Specifically, “long-term deferred revenue” has been added to the condensed consolidated balance sheet, separated from “other long-term liabilities” in our prior period presentation. 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 September 30, 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 was $341.1 million which included 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 September 30, 2022 and 2021, the amount recognized as revenue that was previously deferred was $4.1 million, and $7.7 million, respectively. During the nine months ended September 30, 2022 and 2021, the amount recognized as revenue that was previously deferred was $8.8 million, and $22.8 million, respectively. Disaggregation of Revenue The following table represents disaggregation of royalties, Captisol and contract revenue (in thousands): Three months ended Nine months ended September 30, September 30, 2022 2021 2022 2021 Royalties Kyprolis $ 9,123 $ 8,821 $ 20,872 $ 18,548 Evomela 3,123 2,665 8,218 7,191 Teriparatide injection 4,071 2,567 12,484 2,831 Rylaze 2,099 600 6,065 600 Other 1,421 995 3,852 2,206 $ 19,837 $ 15,648 $ 51,491 $ 31,376 Captisol Captisol - Core $ 3,582 $ 5,374 $ 13,133 $ 16,310 Captisol - COVID (1) 32,367 29,719 64,483 112,565 $ 35,949 $ 35,093 $ 77,616 $ 128,875 Contract revenue Service Revenue $ 4,975 $ 4,828 $ 15,574 $ 17,650 License Fees 460 200 5,154 2,293 Milestone 3,658 7,419 14,022 19,436 Other 1,209 1,647 5,343 5,030 $ 10,302 $ 14,094 $ 40,093 $ 44,409 Total $ 66,088 $ 64,835 $ 169,200 $ 204,660 (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 September 30, 2022 and December 31, 2021 (in thousands): Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value September 30, 2022 Bank deposits $ 2,506 $ — $ (53) $ 2,453 Corporate bonds 4,887 — (107) 4,780 Corporate equity securities 5,807 312 (3,615) 2,504 Mutual fund 88,115 — (1,203) 86,912 US government securities 2,229 — (84) 2,145 Warrants — 232 — 232 $ 103,544 $ 544 $ (5,062) $ 99,026 Viking common stock 18,265 Total short-term investments $ 117,291 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 U.S. 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 and nine months ended September 30, 2022. The following table summarizes our available-for-sale debt securities by contractual maturity (in thousands): September 30, 2022 Amortized Cost Fair Value Within one year $ 8,659 $ 8,458 After one year through five years 982 939 Total $ 9,641 $ 9,397 Our investment policy is capital preservation and we only invest in U.S.-dollar denominated investments. We held a total of 8 positions which were in an unrealized loss position as of September 30, 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 and nine months ended September 30, 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 and nine months ended September 30, 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 and $(0.3) million of allowance for credit losses, respectively, as of September 30, 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 and nine months ended September 30, 2022 and 2021. As of September 30, 2022 inventory consists of Captisol prepayments of $7.4 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): September 30, December 31, 2022 2021 Indefinite-lived intangible assets Goodwill $ 181,206 $ 181,206 Definite lived intangible assets Complete technology 282,057 280,617 Less: accumulated amortization (90,611) (78,991) Trade name 2,642 2,642 Less: accumulated amortization (1,544) (1,444) Customer relationships 40,700 40,700 Less: accumulated amortization (20,272) (18,267) Contractual relationships 362,000 362,000 Less: accumulated amortization (57,947) (36,217) Total goodwill and other identifiable intangible assets, net $ 698,231 $ 732,246 Prior to 2022, we only had one reporting unit and reportable segment. In connection with the announcement in March 2022 of our intention to separate the OmniAb business pursuant to a distribution to Ligand’s stockholders of Ligand’s shares in OmniAb followed by a merger with APAC, management concluded that we had two reporting units and reportable segments - the OmniAb business and the Ligand core business. See Note 2, Segment Information , for additional information. We performed a fair value analysis utilizing a combination of income approach and market approach to determine the fair value of each segment in order to appropriately allocate the goodwill between the segments as of the announcement date. The following table presents our allocation of goodwill balance by segment (in thousands): Fair Value Goodwill Ligand core business $ 105,673 OmniAb business 75,533 $ 181,206 Commercial License Rights Commercial license rights consist of the following (in thousands): September 30, 2022 December 31, 2021 Gross Adjustments (1) Net Gross Adjustments (2) Net Aziyo and CorMatrix $ 17,696 $ (9,455) $ 8,241 $ 17,696 $ (9,461) $ 8,235 Selexis and Dianomi 10,602 (8,650) 1,952 10,602 (8,727) 1,875 Total $ 28,298 $ (18,105) $ 10,193 $ 28,298 $ (18,188) $ 10,110 (1) Amounts represent accumulated amortization to principal of $11.6 million and credit loss adjustments of $6.5 million as of September 30, 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. 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 and nine months ended September 30, 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 September 30, 2022. Accrued Liabilities Accrued liabilities consist of the following (in thousands): September 30, December 31, 2022 2021 Compensation $ 6,229 $ 6,532 Professional fees 2,848 2,046 Amounts owed to former licensees 4,042 630 Return reserve — 2,420 Acquisition related liabilities — 1,000 Subcontractor 1,756 1,759 Other 4,463 3,192 Total accrued liabilities $ 19,338 $ 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 Nine months ended September 30, September 30, 2022 2021 2022 2021 SBC - Research and development expenses $ 6,104 $ 4,480 $ 14,519 $ 12,975 SBC - General and administrative expenses 6,493 5,274 16,621 15,400 $ 12,597 $ 9,754 $ 31,140 $ 28,375 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 Nine months ended September 30, September 30, 2022 2021 2022 2021 Risk-free interest rate 2.8% 0.8% 2.9% 0.5% Dividend yield — — — — Expected volatility 50% 48% 50% 61% Expected term (years) 4.9 4.9 4.8 5.0 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 (Loss) Income Per Share Basic net (loss) income per share is calculated by dividing net (loss) income 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 Nine months ended September 30, September 30, 2022 2021 2022 2021 Weighted average shares outstanding: 16,888 16,688 16,860 16,595 Dilutive potential common shares: Restricted stock 65 75 — 85 Stock options 179 379 — 507 Shares used to compute diluted income per share 17,132 17,142 16,860 17,187 Potentially dilutive shares excluded from calculation due to anti-dilutive effect 6,706 5,574 6,503 4,984 For the three months ended September 30, 2022, 0.6 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	9 Months Ended
	Sep. 30, 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 would combine with OmniAb, and acquire the OmniAb Business, in a Reverse Morris Trust transaction (collectively, the “Transactions”). Immediately prior to the Merger and pursuant to the Separation Agreement, we, among other things, would 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, would distribute (the “Distribution”) to Ligand stockholders 100% of the common stock of OmniAb. Immediately following the Distribution, Merger Sub would 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. The entire transaction was completed on November 1, 2022. See Note 9, Subsequent Event , for additional information. In connection with the execution of the Merger Agreement, we 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 operated 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. After the closing date of the Transactions, the historical financial results of OmniAb will be reflected in our consolidated financial statements as discontinued operations under GAAP for all periods presented through the date of the Distribution. 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 September 30, Nine Months Ended September 30, 2022 2021 2022 2021 OmniAb business revenue Royalties $ 582 $ — $ 984 $ — Contract 6,285 5,140 22,353 19,520 Total OmniAb business revenue 6,867 5,140 23,337 19,520 Ligand core business revenue Royalties 19,255 15,648 50,507 $ 31,376 Captisol - Core 3,582 5,374 13,133 16,310 Captisol - COVID 32,367 29,719 64,483 112,565 Contract 4,017 8,954 17,740 24,889 Total Ligand core business revenue 59,221 59,695 145,863 185,140 Total revenue $ 66,088 $ 64,835 $ 169,200 $ 204,660 Segment operating income (loss) OmniAb business $ (11,721) $ (9,177) $ (26,905) $ (21,587) Ligand core business 22,022 32,620 49,050 112,601 Total segment operating income 10,301 23,443 22,145 91,014 Unallocated corporate items Shared-based compensation 6,462 5,811 17,255 16,429 Other corporate expenses 3,203 1,926 14,029 8,424 Total unallocated corporate items 9,665 7,737 31,284 24,853 Income (loss) from operations $ 636 $ 15,706 $ (9,139) $ 66,161

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 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): September 30, 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) $ 4,649 $ 94,145 $ 232 $ 99,026 $ 9,735 $ 280,553 $ 409 $ 290,697 Investment in Viking common stock 18,265 — — 18,265 30,889 — — 30,889 Total assets $ 22,914 $ 94,145 $ 232 $ 117,291 $ 40,624 $ 280,553 $ 409 $ 321,586 Liabilities: CyDex contingent liabilities $ — $ — $ 308 $ 308 $ — $ — $ 349 $ 349 Metabasis contingent liabilities (2) — 2,507 — 2,507 — 3,358 — 3,358 Icagen contingent liabilities (3) — — 5,333 5,333 — — 7,364 7,364 xCella contingent liabilities (4) — — 480 480 — — — — Amounts owed to former licensor 73 — — 73 86 — — 86 Total liabilities $ 73 $ 2,507 $ 6,121 $ 8,701 $ 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 and nine months ended September 30, 2022, we adjusted the balance of the Metabasis CVR liability $0.1 million and $(0.9) million to mark to market, respectively. 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 nine months ended September 30, 2022, we paid $1.5 million contingent liability based on revenue milestones to former Icagen shareholders, respectively. During the three and nine months ended September 30, 2022, we adjusted the balance of the Icagen CVR liability $(0.2) million and $(0.5) million to mark to market, respectively. 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. We concluded that no earnout liability would be recognized at the acquisition date in September 2020. During the three and nine months ended September 30, 2022, we paid $1.0 million contingent liabilities to former xCella shareholders. During the three and nine months ended September 30, 2022, we recorded $0.5 million and $1.4 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, respectively. A reconciliation of the level 3 financial instruments as of September 30, 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 (2,505) Fair value adjustments to contingent liabilities (527) Contingent liabilities from xCella asset acquisition 1,440 Fair value of level 3 financial instruments as of September 30, 2022 $ 6,121 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 September 30, 2022, there were no indicators of impairment at either of the reporting units.

Convertible Senior Notes

Convertible Senior Notes	9 Months Ended
	Sep. 30, 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“Indenture”). In advance of the Distribution of the shares of common stock of OmniAb to Ligand’s shareholders on November 1, 2022, a notice of convertibility was delivered to the holders of the 2023 Notes. No holders exercised their right to convert their 2023 Notes during the applicable period for conversion. The conversion rate for the 2023 Notes will be adjusted in accordance with the requirements of the Indenture based on calculations determined with reference to a valuation period of the first 10 consecutive trading days after, and including, the ex-dvidend date of the spin-off (as determined in the Indenture). 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 (not accounting for the anticipated adjustment in the conversion rate). 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 September 30, 2022 is 0.5%. During the three months ended September 30, 2022 we recognized a total of $0.3 million in interest expense which includes $0.2 million in contractual interest expense and $0.1 million in amortized issuance costs. During the nine months ended September 30, 2022 we recognized a total of $1.5 million in interest expense which includes $0.9 million in contractual interest expense and $0.6 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 September 30, 2022, we repurchased $38.6 million in principal amount of the 2023 Notes for $37.7 million in cash, including accrued interest of $0.1 million. We accounted for the repurchase as a debt extinguishment, which resulted in a gain of $0.9 million reflected in other income (expense), net, in our condensed consolidated statement of operations for the three months ended September 30, 2022, and a $0.1 million reduction in debt discount. During the nine months ended September 30, 2022, we repurchased $266.4 million in principal amount of the 2023 Notes for $261.4 million in cash, including accrued interest of $0.5 million. We accounted for the repurchase as a debt extinguishment, which resulted in a gain of $4.2 million reflected in other income (expense), net, in our condensed consolidated statement of operations for the nine months ended September 30, 2022, and a $1.3 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 as of December 31, 2021. 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. In August 2022, in connection with the repurchases of $227.8 million in principal of the 2023 Notes for $223.7 million in cash, including accrued interest of $0.4 million made during the six months ended June 30, 2022, we entered into 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 received $0.2 million as part of these Bond Hedge Early Unwind Agreements reducing the number of options under the convertible bond hedges to 370,219 as of September 30, 2022. This transaction resulted in a $0.2 million net increase in additional paid-in-capital in our condensed consolidated balance sheet as of September 30, 2022. The following table summarizes information about the 2023 Notes (in thousands): September 30, 2022 December 31, 2021 (1) Principal amount of the 2023 Notes outstanding $ 76,854 $ 343,301 Unamortized discount (including unamortized debt issuance cost) (254) (22,584) Total long-term portion of notes payable $ 76,600 $ 320,717 Fair value of the 2023 Notes outstanding (Level 2) $ 74,395 $ 341,801 (1) - Balances as of December 31, 2021 reported before the adoption of ASU 2020-06.

Income Tax

Income Tax	9 Months Ended
	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Income Tax	Income Tax Our 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 and nine months ended September 30, 2022 and 2021 was 52.9% and 10.1%, and 20.3% and (15.1)%, respectively. The variance from the U.S. federal statutory tax rate of 21% for the three and nine months ended September 30, 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, non-deductible ISO related stock compensation expense and recognition of non-refundable foreign taxes paid during the period. The variance from the U.S. federal tax rate of 21% for the three and nine months ended September 30, 2021 was significantly impacted by tax benefits related to (1) a $3.8 million and $37.6 million Pfenex CVR adjustment recorded during the respective period, due to the lower probability of achieving the specific development and regulatory milestone by December 31, 2021 as defined by the Pfenex CVR, and (2) net excess tax windfalls from share-based compensation resulting from increased stock option exercise activity.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 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 852,475 $ 91.39 260,577 $ 89.99 Options exercised/RSUs vested (34,941) $ 38.56 (136,448) $ 120.77 Forfeited (36,529) $ 76.26 (2,059) $ 121.79 Balance as of September 30, 2022 2,980,603 $ 102.98 386,213 $ 111.93 As of September 30, 2022, outstanding options to purchase 1.7 million shares were exercisable with a weighted average exercise price per share of $102.23. 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 September 30, 2022, 38,007 shares were available for future purchases under the ESPP. Share Repurchases On September 11, 2019, our Board of Directors approved a stock repurchase program authorizing, but not obligating, the repurchase of up to $500.0 million of our common stock from time to time over the next three years. We expect to acquire shares primarily through open-market transactions and may enter into Rule 10b5-1 trading plans, to facilitate open-market repurchases. The timing and amount of repurchase transactions will be determined by management based on our evaluation of market conditions, share price, legal requirements and other factors. We did not have any share repurchases during the three and nine months ended September 30, 2022. Authorization to repurchase $248.8 million of our common stock remained available as of September 30, 2022. At-the Market Equity Offering Program On September 30, 2022, we filed a registration statement on Form S-3 (the “Shelf Registration Statement”), which became automatically effective upon filing, covering the offering of common stock, preferred stock, debt securities, warrants and units. On September 30, 2022, we also entered into an At-The-Market Equity Offering Sales Agreement (the “Sales Agreement”) with Stifel, Nicolaus & Company, Incorporated (the “Agent”), under which we may, from time to time, sell shares of our

Commitment and Contingencies_ L

Commitment and Contingencies: Legal Proceedings	9 Months Ended
	Sep. 30, 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, a wholly owned subsidiary of Ligand, 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). CyDex contended that Baxter has not paid all of the royalties due to CyDex under the terms of the license agreement and Baxter contends that it has overpaid royalties for several years. On April 6, 2021, Baxter initiated an arbitration with AAA pursuant to the arbitration provision of the license agreement. On April 21, 2021, CyDex filed an answering statement and counterdemand. On December 2, 2021, Baxter filed an Amended Notice of Arbitration Demand seeking a declaration limiting the “royalty term” of the license agreement to “the later of i) the expiration of the licensed [p]atent; or ii) when there are no longer any CyDex patents listed in the Orange Book for [Nexterone®].” Baxter later clarified its position, and asserted that royalties should have ceased being due upon the May 4, 2022 expiry of CyDex’s U.S. Patent No. 6,869,939. The parties conducted a three-day arbitration hearing May 24-26, 2022. In a September 9, 2022 Final Award, the Tribunal ruled in CyDex’s favor by (1) denying Baxter’s request for a partial refund of previously paid royalties, (2) granting CyDex’s request for underpaid royalties, and (3) concluding that “[g]oing forward Baxter shall pay CyDex” a royalty consistent with CyDex’s construction of the license agreement until, at least, the March 13, 2029 expiry of CyDex’s U.S. Patent No. 7,635,773. On April 22, 2022, Pfenex Inc. (“Pfenex”), a wholly owned subsidiary of Ligand, received a notice of alleged breach from Beijing Kangchen Biological Technology Co., Ltd. (“Kangchen”) with respect to a Development and License Agreement between Pfenex and Kangchen (“License Agreement”) pertaining to the development and commercialization of teriparatide in certain Southeast Asian countries. The allegations in the notice focused on the activities of Pfenex and other parties. On June 16, 2022, we rejected all claims raised by Kangchen in the notice. On June 24, 2022, Kangchen served Pfenex a notice of termination of the License Agreement and demanded initiation of the dispute resolution process in accordance with the License Agreement. On June 29, 2022, we again rejected all claims raised by Kangchen in the notice of termination and agreed to engage in the applicable dispute resolution process, including good faith negotiations between the parties. On October 20, 2022, we agreed to make a single lump sum payment to Kangchen in connection with a termination agreement that, among other things, terminates the License Agreement and releases all claims between the parties arising from the License Agreement. We anticipate that the termination agreement between Pfenex and Kangchen will go into effect the fourth quarter of 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	9 Months Ended
	Sep. 30, 2022
Leases [Abstract]
Leases	LeasesWe 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 primarily related to our right to use the equipment under the agreement with Hovione, our third-party manufacturer, to exclusively manufacture Captisol. 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 September 30, 2022 December 31, 2021 Operating lease assets $ 32,108 $ 16,542 Finance lease assets 14,444 16,207 Total lease assets $ 46,552 $ 32,749 Liabilities Current operating lease liabilities $ 2,345 $ 2,053 Current finance lease liabilities 48 46 2,393 2,099 Long-term operating lease liabilities 34,893 15,494 Long-term finance lease liabilities 14 58 Total lease liabilities $ 37,300 $ 17,651 During the three and nine months ended September 30, 2022, we entered into several lease agreements and amendments, which resulted in an increase in lease assets of $8.3 million and $18.4 million, and liabilities of $8.5 million and $21.7 million, respectively. Maturity of Operating and Finance Lease Liabilities as of September 30, 2022 (in thousands): Maturity Dates Operating Leases Remaining three months ending December 31, 2022 $ 1,306 2023 4,842 2024 4,735 2025 4,939 2026 5,242 2027 5,381 Thereafter 22,317 Total lease payments 48,762 Less estimated tenant improvement allowance: (1,030) Less imputed interest (10,494) Present value of lease liabilities $ 37,238
Leases	LeasesWe 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 primarily related to our right to use the equipment under the agreement with Hovione, our third-party manufacturer, to exclusively manufacture Captisol. 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 September 30, 2022 December 31, 2021 Operating lease assets $ 32,108 $ 16,542 Finance lease assets 14,444 16,207 Total lease assets $ 46,552 $ 32,749 Liabilities Current operating lease liabilities $ 2,345 $ 2,053 Current finance lease liabilities 48 46 2,393 2,099 Long-term operating lease liabilities 34,893 15,494 Long-term finance lease liabilities 14 58 Total lease liabilities $ 37,300 $ 17,651 During the three and nine months ended September 30, 2022, we entered into several lease agreements and amendments, which resulted in an increase in lease assets of $8.3 million and $18.4 million, and liabilities of $8.5 million and $21.7 million, respectively. Maturity of Operating and Finance Lease Liabilities as of September 30, 2022 (in thousands): Maturity Dates Operating Leases Remaining three months ending December 31, 2022 $ 1,306 2023 4,842 2024 4,735 2025 4,939 2026 5,242 2027 5,381 Thereafter 22,317 Total lease payments 48,762 Less estimated tenant improvement allowance: (1,030) Less imputed interest (10,494) Present value of lease liabilities $ 37,238

Subsequent Event

Subsequent Event	9 Months Ended
	Sep. 30, 2022
Subsequent Events [Abstract]
Subsequent Event	Subsequent EventOn November, 1, 2022, Ligand completed the Transactions. Pursuant to the Distribution, Ligand distributed on a pro rata basis to its shareholders as of the close of business on October 26, 2022 shares of the common stock of OmniAb representing 100% of Ligand’s interest in OmniAb. The Distribution was immediately followed by the Merger, pursuant to which OmniAb merged with Merger Sub, with OmniAb continuing as the surviving entity and becoming a wholly owned subsidiary of APAC. Prior to the Distribution and Merger, OmniAb changed its name to OmniAb Operations, Inc. and APAC changed its name to OmniAb, Inc. Following the Merger, OmniAb, Inc. is an independent, publicly traded company whose common stock trades on NASDAQ under the symbol “OABI.”

Basis of Presentation and Sum_2

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 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.
Reclassifications	Reclassifications Certain amounts in the prior period condensed consolidated financial statements have been reclassified to conform with the current period presentation. Specifically, “long-term deferred revenue” has been added to the condensed consolidated balance sheet, separated from “other long-term liabilities” in our prior period presentation.
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 September 30, 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 was $341.1 million which included 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 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.
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 Rights	Commercial License Rights Commercial license rights consist of the following (in thousands): September 30, 2022 December 31, 2021 Gross Adjustments (1) Net Gross Adjustments (2) Net Aziyo and CorMatrix $ 17,696 $ (9,455) $ 8,241 $ 17,696 $ (9,461) $ 8,235 Selexis and Dianomi 10,602 (8,650) 1,952 10,602 (8,727) 1,875 Total $ 28,298 $ (18,105) $ 10,193 $ 28,298 $ (18,188) $ 10,110 (1) Amounts represent accumulated amortization to principal of $11.6 million and credit loss adjustments of $6.5 million as of September 30, 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. 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 and nine months ended September 30, 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 September 30, 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 Nine months ended September 30, September 30, 2022 2021 2022 2021 SBC - Research and development expenses $ 6,104 $ 4,480 $ 14,519 $ 12,975 SBC - General and administrative expenses 6,493 5,274 16,621 15,400 $ 12,597 $ 9,754 $ 31,140 $ 28,375 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 Nine months ended September 30, September 30, 2022 2021 2022 2021 Risk-free interest rate 2.8% 0.8% 2.9% 0.5% Dividend yield — — — — Expected volatility 50% 48% 50% 61% Expected term (years) 4.9 4.9 4.8 5.0 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 (Loss) Income Per Share	Net (Loss) Income Per Share Basic net (loss) income per share is calculated by dividing net (loss) income 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.

Basis of Presentation and Sum_3

Basis of Presentation and Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 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 Nine months ended September 30, September 30, 2022 2021 2022 2021 Royalties Kyprolis $ 9,123 $ 8,821 $ 20,872 $ 18,548 Evomela 3,123 2,665 8,218 7,191 Teriparatide injection 4,071 2,567 12,484 2,831 Rylaze 2,099 600 6,065 600 Other 1,421 995 3,852 2,206 $ 19,837 $ 15,648 $ 51,491 $ 31,376 Captisol Captisol - Core $ 3,582 $ 5,374 $ 13,133 $ 16,310 Captisol - COVID (1) 32,367 29,719 64,483 112,565 $ 35,949 $ 35,093 $ 77,616 $ 128,875 Contract revenue Service Revenue $ 4,975 $ 4,828 $ 15,574 $ 17,650 License Fees 460 200 5,154 2,293 Milestone 3,658 7,419 14,022 19,436 Other 1,209 1,647 5,343 5,030 $ 10,302 $ 14,094 $ 40,093 $ 44,409 Total $ 66,088 $ 64,835 $ 169,200 $ 204,660 (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 September 30, 2022 and December 31, 2021 (in thousands): Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value September 30, 2022 Bank deposits $ 2,506 $ — $ (53) $ 2,453 Corporate bonds 4,887 — (107) 4,780 Corporate equity securities 5,807 312 (3,615) 2,504 Mutual fund 88,115 — (1,203) 86,912 US government securities 2,229 — (84) 2,145 Warrants — 232 — 232 $ 103,544 $ 544 $ (5,062) $ 99,026 Viking common stock 18,265 Total short-term investments $ 117,291 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 U.S. 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): September 30, 2022 Amortized Cost Fair Value Within one year $ 8,659 $ 8,458 After one year through five years 982 939 Total $ 9,641 $ 9,397
Schedule of Goodwill and Other Identifiable Intangible Assets	Goodwill and other identifiable intangible assets consist of the following (in thousands): September 30, December 31, 2022 2021 Indefinite-lived intangible assets Goodwill $ 181,206 $ 181,206 Definite lived intangible assets Complete technology 282,057 280,617 Less: accumulated amortization (90,611) (78,991) Trade name 2,642 2,642 Less: accumulated amortization (1,544) (1,444) Customer relationships 40,700 40,700 Less: accumulated amortization (20,272) (18,267) Contractual relationships 362,000 362,000 Less: accumulated amortization (57,947) (36,217) Total goodwill and other identifiable intangible assets, net $ 698,231 $ 732,246
Schedule Of Goodwill Balance by Segment On Relative Fair Value Basis	The following table presents our allocation of goodwill balance by segment (in thousands): Fair Value Goodwill Ligand core business $ 105,673 OmniAb business 75,533 $ 181,206
Schedule of Commercial License Rights	Commercial license rights consist of the following (in thousands): September 30, 2022 December 31, 2021 Gross Adjustments (1) Net Gross Adjustments (2) Net Aziyo and CorMatrix $ 17,696 $ (9,455) $ 8,241 $ 17,696 $ (9,461) $ 8,235 Selexis and Dianomi 10,602 (8,650) 1,952 10,602 (8,727) 1,875 Total $ 28,298 $ (18,105) $ 10,193 $ 28,298 $ (18,188) $ 10,110 (1) Amounts represent accumulated amortization to principal of $11.6 million and credit loss adjustments of $6.5 million as of September 30, 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): September 30, December 31, 2022 2021 Compensation $ 6,229 $ 6,532 Professional fees 2,848 2,046 Amounts owed to former licensees 4,042 630 Return reserve — 2,420 Acquisition related liabilities — 1,000 Subcontractor 1,756 1,759 Other 4,463 3,192 Total accrued liabilities $ 19,338 $ 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 Nine months ended September 30, September 30, 2022 2021 2022 2021 SBC - Research and development expenses $ 6,104 $ 4,480 $ 14,519 $ 12,975 SBC - General and administrative expenses 6,493 5,274 16,621 15,400 $ 12,597 $ 9,754 $ 31,140 $ 28,375
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 Nine months ended September 30, September 30, 2022 2021 2022 2021 Risk-free interest rate 2.8% 0.8% 2.9% 0.5% Dividend yield — — — — Expected volatility 50% 48% 50% 61% Expected term (years) 4.9 4.9 4.8 5.0
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 Nine months ended September 30, September 30, 2022 2021 2022 2021 Weighted average shares outstanding: 16,888 16,688 16,860 16,595 Dilutive potential common shares: Restricted stock 65 75 — 85 Stock options 179 379 — 507 Shares used to compute diluted income per share 17,132 17,142 16,860 17,187 Potentially dilutive shares excluded from calculation due to anti-dilutive effect 6,706 5,574 6,503 4,984

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 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 September 30, Nine Months Ended September 30, 2022 2021 2022 2021 OmniAb business revenue Royalties $ 582 $ — $ 984 $ — Contract 6,285 5,140 22,353 19,520 Total OmniAb business revenue 6,867 5,140 23,337 19,520 Ligand core business revenue Royalties 19,255 15,648 50,507 $ 31,376 Captisol - Core 3,582 5,374 13,133 16,310 Captisol - COVID 32,367 29,719 64,483 112,565 Contract 4,017 8,954 17,740 24,889 Total Ligand core business revenue 59,221 59,695 145,863 185,140 Total revenue $ 66,088 $ 64,835 $ 169,200 $ 204,660 Segment operating income (loss) OmniAb business $ (11,721) $ (9,177) $ (26,905) $ (21,587) Ligand core business 22,022 32,620 49,050 112,601 Total segment operating income 10,301 23,443 22,145 91,014 Unallocated corporate items Shared-based compensation 6,462 5,811 17,255 16,429 Other corporate expenses 3,203 1,926 14,029 8,424 Total unallocated corporate items 9,665 7,737 31,284 24,853 Income (loss) from operations $ 636 $ 15,706 $ (9,139) $ 66,161

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 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): September 30, 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) $ 4,649 $ 94,145 $ 232 $ 99,026 $ 9,735 $ 280,553 $ 409 $ 290,697 Investment in Viking common stock 18,265 — — 18,265 30,889 — — 30,889 Total assets $ 22,914 $ 94,145 $ 232 $ 117,291 $ 40,624 $ 280,553 $ 409 $ 321,586 Liabilities: CyDex contingent liabilities $ — $ — $ 308 $ 308 $ — $ — $ 349 $ 349 Metabasis contingent liabilities (2) — 2,507 — 2,507 — 3,358 — 3,358 Icagen contingent liabilities (3) — — 5,333 5,333 — — 7,364 7,364 xCella contingent liabilities (4) — — 480 480 — — — — Amounts owed to former licensor 73 — — 73 86 — — 86 Total liabilities $ 73 $ 2,507 $ 6,121 $ 8,701 $ 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 and nine months ended September 30, 2022, we adjusted the balance of the Metabasis CVR liability $0.1 million and $(0.9) million to mark to market, respectively. 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 nine months ended September 30, 2022, we paid $1.5 million contingent liability based on revenue milestones to former Icagen shareholders, respectively. During the three and nine months ended September 30, 2022, we adjusted the balance of the Icagen CVR liability $(0.2) million and $(0.5) million to mark to market, respectively.
Schedule of Reconciliation of Level 3 Financial Instruments	A reconciliation of the level 3 financial instruments as of September 30, 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 (2,505) Fair value adjustments to contingent liabilities (527) Contingent liabilities from xCella asset acquisition 1,440 Fair value of level 3 financial instruments as of September 30, 2022 $ 6,121

Convertible Senior Notes (Table

Convertible Senior Notes (Tables)	9 Months Ended
	Sep. 30, 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): September 30, 2022 December 31, 2021 (1) Principal amount of the 2023 Notes outstanding $ 76,854 $ 343,301 Unamortized discount (including unamortized debt issuance cost) (254) (22,584) Total long-term portion of notes payable $ 76,600 $ 320,717 Fair value of the 2023 Notes outstanding (Level 2) $ 74,395 $ 341,801 (1) - Balances as of December 31, 2021 reported before the adoption of ASU 2020-06.

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 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 852,475 $ 91.39 260,577 $ 89.99 Options exercised/RSUs vested (34,941) $ 38.56 (136,448) $ 120.77 Forfeited (36,529) $ 76.26 (2,059) $ 121.79 Balance as of September 30, 2022 2,980,603 $ 102.98 386,213 $ 111.93
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 852,475 $ 91.39 260,577 $ 89.99 Options exercised/RSUs vested (34,941) $ 38.56 (136,448) $ 120.77 Forfeited (36,529) $ 76.26 (2,059) $ 121.79 Balance as of September 30, 2022 2,980,603 $ 102.98 386,213 $ 111.93

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2022
Leases [Abstract]
Schedule of Operating and Finance Lease Assets and Liabilities	Operating and Finance Lease Assets and Liabilities (in thousands): Assets September 30, 2022 December 31, 2021 Operating lease assets $ 32,108 $ 16,542 Finance lease assets 14,444 16,207 Total lease assets $ 46,552 $ 32,749 Liabilities Current operating lease liabilities $ 2,345 $ 2,053 Current finance lease liabilities 48 46 2,393 2,099 Long-term operating lease liabilities 34,893 15,494 Long-term finance lease liabilities 14 58 Total lease liabilities $ 37,300 $ 17,651
Schedule of Maturity of Operating Lease Liabilities	Maturity of Operating and Finance Lease Liabilities as of September 30, 2022 (in thousands): Maturity Dates Operating Leases Remaining three months ending December 31, 2022 $ 1,306 2023 4,842 2024 4,735 2025 4,939 2026 5,242 2027 5,381 Thereafter 22,317 Total lease payments 48,762 Less estimated tenant improvement allowance: (1,030) Less imputed interest (10,494) Present value of lease liabilities $ 37,238

Basis of Presentation and Sum_4

Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Details) shares in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2022 USD ($) position shares	Sep. 30, 2021 USD ($) shares	Sep. 30, 2022 USD ($) position reporting_unit shares	Sep. 30, 2021 USD ($) shares	Dec. 31, 2021 USD ($) reporting_unit	Jun. 30, 2022 USD ($)	Mar. 31, 2022 USD ($)	Jun. 30, 2021 USD ($)	Mar. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Property, Plant and Equipment [Line Items]
Decrease of deferred tax liabilities	$ (29,832,000)		$ (29,832,000)		$ (59,095,000)
Decrease (increase) of stockholders' equity	(816,298,000)	$ (812,066,000)	(816,298,000)	$ (812,066,000)	(821,159,000)	$ (802,365,000)	$ (793,192,000)	$ (786,517,000)	$ (745,840,000)	$ (709,525,000)
Revenue recognized that was previously deferred	$ 4,100,000	$ 7,700,000	$ 8,800,000	$ 22,800,000
Number of positions in an unrealized loss position | position	8		8
Credit losses related to available-for-sale debt securities	$ 0		$ 0
Allowance for credit losses adjustment related to COVID-19	(100,000)		(300,000)
Inventory	$ 22,326,000		$ 22,326,000		$ 27,326,000
Number of reporting units | reporting_unit			2		1
Potentially dilutive shares excluded from calculation due to anti-dilutive effect (in shares) | shares	6,706	5,574	6,503	4,984
Share-based Compensation
Property, Plant and Equipment [Line Items]
Potentially dilutive shares excluded from calculation due to anti-dilutive effect (in shares) | shares			300
Restricted Stock Awards
Property, Plant and Equipment [Line Items]
Performance period for awards			3 years
Restricted Stock Awards | Minimum
Property, Plant and Equipment [Line Items]
Payout range (as a percent)			0%
Restricted Stock Awards | Maximum
Property, Plant and Equipment [Line Items]
Payout range (as a percent)			200%
Captisol
Property, Plant and Equipment [Line Items]
Inventory	$ 7,400,000		$ 7,400,000		$ 24,600,000
Adjustment
Property, Plant and Equipment [Line Items]
Decrease (increase) of stockholders' equity					15,997,000
Adjusted Balance
Property, Plant and Equipment [Line Items]
Increase of carrying amount of Notes					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	600		1,100
Accounting Standards Update 2020-06 | Adjustment
Property, Plant and Equipment [Line Items]
Increase of carrying amount of Notes					20,400,000
Decrease of deferred tax liabilities					4,400,000
Additional paid in capital
Property, Plant and Equipment [Line Items]
Decrease (increase) of stockholders' equity	$ (348,994,000)	$ (358,418,000)	$ (348,994,000)	$ (358,418,000)	(372,969,000)	(335,471,000)	(325,368,000)	(346,578,000)	(336,621,000)	(318,358,000)
Additional paid in capital | Adjustment
Property, Plant and Equipment [Line Items]
Decrease (increase) of stockholders' equity					51,130,000
Additional paid in capital | Accounting Standards Update 2020-06 | Adjustment
Property, Plant and Equipment [Line Items]
Decrease (increase) of stockholders' equity					51,100,000
Retained earnings
Property, Plant and Equipment [Line Items]
Decrease (increase) of stockholders' equity	$ (468,347,000)	$ (454,506,000)	$ (468,347,000)	$ (454,506,000)	(449,090,000)	$ (467,943,000)	$ (468,838,000)	$ (440,783,000)	$ (410,058,000)	$ (391,952,000)
Retained earnings | Adjustment
Property, Plant and Equipment [Line Items]
Decrease (increase) of stockholders' equity					(35,133,000)
Retained earnings | Accounting Standards Update 2020-06 | Adjustment
Property, Plant and Equipment [Line Items]
Decrease (increase) of stockholders' equity					$ (35,100,000)

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		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Disaggregation of Revenue [Line Items]
Total revenue	$ 66,088	$ 64,835	$ 169,200	$ 204,660
Royalties
Disaggregation of Revenue [Line Items]
Total revenue	19,837	15,648	51,491	31,376
Kyprolis
Disaggregation of Revenue [Line Items]
Total revenue	9,123	8,821	20,872	18,548
Evomela
Disaggregation of Revenue [Line Items]
Total revenue	3,123	2,665	8,218	7,191
Teriparatide injection
Disaggregation of Revenue [Line Items]
Total revenue	4,071	2,567	12,484	2,831
Rylaze
Disaggregation of Revenue [Line Items]
Total revenue	2,099	600	6,065	600
Other
Disaggregation of Revenue [Line Items]
Total revenue	1,421	995	3,852	2,206
Captisol
Disaggregation of Revenue [Line Items]
Total revenue	35,949	35,093	77,616	128,875
Captisol - Core
Disaggregation of Revenue [Line Items]
Total revenue	3,582	5,374	13,133	16,310
Captisol - COVID
Disaggregation of Revenue [Line Items]
Total revenue	32,367	29,719	64,483	112,565
Contract revenue
Disaggregation of Revenue [Line Items]
Total revenue	10,302	14,094	40,093	44,409
Service Revenue
Disaggregation of Revenue [Line Items]
Total revenue	4,975	4,828	15,574	17,650
License Fees
Disaggregation of Revenue [Line Items]
Total revenue	460	200	5,154	2,293
Milestone
Disaggregation of Revenue [Line Items]
Total revenue	3,658	7,419	14,022	19,436
Other
Disaggregation of Revenue [Line Items]
Total revenue	$ 1,209	$ 1,647	$ 5,343	$ 5,030

Basis of Presentation and Sum_6

Basis of Presentation and Summary of Significant Accounting Policies - Investment Categories (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Debt Securities, Available-for-sale [Line Items]
Amortized cost	$ 103,544	$ 292,225
Gross unrealized gains	544	842
Gross unrealized losses	(5,062)	(2,370)
Estimated fair value	99,026	290,697
Total short-term investments	117,291	321,586
Bank deposits
Debt Securities, Available-for-sale [Line Items]
Amortized cost	2,506	63,389
Gross unrealized gains	0	13
Gross unrealized losses	(53)	(21)
Estimated fair value	2,453	63,381
Corporate bonds
Debt Securities, Available-for-sale [Line Items]
Amortized cost	4,887	29,308
Gross unrealized gains	0	17
Gross unrealized losses	(107)	(38)
Estimated fair value	4,780	29,287
Commercial paper
Debt Securities, Available-for-sale [Line Items]
Amortized cost		36,008
Gross unrealized gains		2
Gross unrealized losses		(12)
Estimated fair value		35,998
Corporate equity securities
Debt Securities, Available-for-sale [Line Items]
Amortized cost	5,807	5,807
Gross unrealized gains	312	402
Gross unrealized losses	(3,615)	(2,027)
Estimated fair value	2,504	4,182
Mutual fund
Debt Securities, Available-for-sale [Line Items]
Amortized cost	88,115	152,136
Gross unrealized gains	0	0
Gross unrealized losses	(1,203)	(249)
Estimated fair value	86,912	151,887
US government securities
Debt Securities, Available-for-sale [Line Items]
Amortized cost	2,229	5,577
Gross unrealized gains	0	0
Gross unrealized losses	(84)	(23)
Estimated fair value	2,145	5,554
Warrants
Debt Securities, Available-for-sale [Line Items]
Amortized cost	0	0
Gross unrealized gains	232	408
Gross unrealized losses	0	0
Estimated fair value	232	408
Common Stock
Debt Securities, Available-for-sale [Line Items]
Viking common stock	$ 18,265	$ 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	Sep. 30, 2022 USD ($)
Amortized Cost
Within one year	$ 8,659
After one year through five years	982
Total	9,641
Fair Value
Within one year	8,458
After one year through five years	939
Total	$ 9,397

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	Sep. 30, 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	698,231	732,246
Complete technology
Summary of Goodwill and Other Identifiable Intangible Assets
Definite lived intangible assets	282,057	280,617
Less: accumulated amortization	(90,611)	(78,991)
Trade name
Summary of Goodwill and Other Identifiable Intangible Assets
Definite lived intangible assets	2,642	2,642
Less: accumulated amortization	(1,544)	(1,444)
Customer relationships
Summary of Goodwill and Other Identifiable Intangible Assets
Definite lived intangible assets	40,700	40,700
Less: accumulated amortization	(20,272)	(18,267)
Contractual relationships
Summary of Goodwill and Other Identifiable Intangible Assets
Definite lived intangible assets	362,000	362,000
Less: accumulated amortization	$ (57,947)	$ (36,217)

Basis of Presentation and Sum_9

Basis of Presentation and Summary of Significant Accounting Policies - Schedule Of Goodwill Balance by Segment On Relative Fair Value Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Basis of Presentation [Line Items]
Goodwill	$ 181,206	$ 181,206
Ligand core business
Basis of Presentation [Line Items]
Goodwill	105,673
OmniAb business
Basis of Presentation [Line Items]
Goodwill	$ 75,533

Basis of Presentation and Su_10

Basis of Presentation and Summary of Significant Accounting Policies - Commercial License Rights (Details) - Commercial license rights - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Commercial License and Other Economic Rights
Gross	$ 28,298	$ 28,298
Adjustments	(18,105)	(18,188)
Net	10,193	10,110
Accumulated amortization on finite-lived intangible assets	11,600	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	(9,455)	(9,461)
Net	8,241	8,235
Selexis and Dianomi
Commercial License and Other Economic Rights
Gross	10,602	10,602
Adjustments	(8,650)	(8,727)
Net	$ 1,952	$ 1,875

Basis of Presentation and Su_11

Basis of Presentation and Summary of Significant Accounting Policies - Accrued Liabilities and Other Long-Term Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Accrued Liabilities
Compensation	$ 6,229	$ 6,532
Professional fees	2,848	2,046
Amounts owed to former licensees	4,042	630
Return reserve	0	2,420
Acquisition related liabilities	0	1,000
Subcontractor	1,756	1,759
Other	4,463	3,192
Total accrued liabilities	$ 19,338	$ 17,579

Basis of Presentation and Su_12

Basis of Presentation and Summary of Significant Accounting Policies - Accounting for Share-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Basis of Presentation [Line Items]
Share-based compensation expense	$ 12,597	$ 9,754	$ 31,140	$ 28,375
SBC - Research and development expenses
Basis of Presentation [Line Items]
Share-based compensation expense	6,104	4,480	14,519	12,975
SBC - General and administrative expenses
Basis of Presentation [Line Items]
Share-based compensation expense	$ 6,493	$ 5,274	$ 16,621	$ 15,400

Basis of Presentation and Su_13

Basis of Presentation and Summary of Significant Accounting Policies - Fair Value Valuation Assumptions (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Risk-free interest rate (as a percent)	2.80%	0.80%	2.90%	0.50%
Dividend yield (as a percent)	0%	0%	0%	0%
Expected volatility (as a percent)	50%	48%	50%	61%
Expected term (years)	4 years 10 months 24 days	4 years 10 months 24 days	4 years 9 months 18 days	5 years

Basis of Presentation and Su_14

Basis of Presentation and Summary of Significant Accounting Policies - Earnings (Loss) Per Share (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted average shares outstanding (in shares)	16,888	16,688	16,860	16,595
Dilutive potential common shares:
Dilutive potential common shares (in shares)			0	507
Shares used to compute diluted income per share (in shares)	17,132	17,142	16,860	17,187
Potentially dilutive shares excluded from calculation due to anti-dilutive effect (in shares)	6,706	5,574	6,503	4,984
Restricted stock
Dilutive potential common shares:
Dilutive potential common shares (in shares)	65	75	0	85
Stock Options
Dilutive potential common shares:
Dilutive potential common shares (in shares)	179	379	0	507

Segment Information (Details)

Segment Information (Details) $ in Thousands		3 Months Ended			9 Months Ended
	Mar. 31, 2022 segment	Sep. 30, 2022 USD ($)	Mar. 22, 2022 segment	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)
Segment Reporting [Abstract]
Number of reportable segments | segment	2		1
Segment Reporting, Revenue Reconciling Item [Line Items]
Total revenue		$ 66,088		$ 64,835	$ 169,200	$ 204,660
Total segment operating income		857		15,259	(19,919)	54,324
Total operating costs and expenses		65,452		49,129	178,339	138,499
Income (loss) from operations		636		15,706	(9,139)	66,161
Operating Segments
Segment Reporting, Revenue Reconciling Item [Line Items]
Total revenue		66,088		64,835	169,200	204,660
Total segment operating income		10,301		23,443	22,145	91,014
Corporate, Non-Segment
Segment Reporting, Revenue Reconciling Item [Line Items]
Shared-based compensation		6,462		5,811	17,255	16,429
Other corporate expenses		3,203		1,926	14,029	8,424
Total operating costs and expenses		9,665		7,737	31,284	24,853
Royalties
Segment Reporting, Revenue Reconciling Item [Line Items]
Total revenue		19,837		15,648	51,491	31,376
Captisol - Core
Segment Reporting, Revenue Reconciling Item [Line Items]
Total revenue		3,582		5,374	13,133	16,310
Captisol - COVID
Segment Reporting, Revenue Reconciling Item [Line Items]
Total revenue		32,367		29,719	64,483	112,565
Contract revenue
Segment Reporting, Revenue Reconciling Item [Line Items]
Total revenue		10,302		14,094	40,093	44,409
OmniAb business | Operating Segments
Segment Reporting, Revenue Reconciling Item [Line Items]
Total revenue		6,867		5,140	23,337	19,520
Total segment operating income		(11,721)		(9,177)	(26,905)	(21,587)
OmniAb business | Royalties | Operating Segments
Segment Reporting, Revenue Reconciling Item [Line Items]
Total revenue		582		0	984	0
OmniAb business | Contract revenue | Operating Segments
Segment Reporting, Revenue Reconciling Item [Line Items]
Total revenue		6,285		5,140	22,353	19,520
Ligand core business | Operating Segments
Segment Reporting, Revenue Reconciling Item [Line Items]
Total revenue		59,221		59,695	145,863	185,140
Total segment operating income		22,022		32,620	49,050	112,601
Ligand core business | Royalties | Operating Segments
Segment Reporting, Revenue Reconciling Item [Line Items]
Total revenue		19,255		15,648	50,507	31,376
Ligand core business | Contract revenue | Operating Segments
Segment Reporting, Revenue Reconciling Item [Line Items]
Total revenue		$ 4,017		$ 8,954	$ 17,740	$ 24,889

Fair Value Measurements - Asset

Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details)	1 Months Ended	3 Months Ended	9 Months Ended
	Jan. 31, 2010 contingent_value_right	Sep. 30, 2022 USD ($)	Sep. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Number of CVR Series | contingent_value_right	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	$ 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	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
Mark-to-market adjustment of CVR liability		100,000	(900,000)
Icagen
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mark-to-market adjustment of CVR liability		(200,000)	(500,000)
Payment for contingent consideration liabilities			1,500,000
xCella
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Payment for contingent consideration liabilities		1,000,000	1,000,000
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	1,400,000
Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets		117,291,000	117,291,000	$ 321,586,000
Amounts owed to former licensor		73,000	73,000	86,000
Total liabilities		8,701,000	8,701,000	11,157,000
Recurring | Short-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, fair value		99,026,000	99,026,000	290,697,000
Recurring | Common Stock
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, fair value		18,265,000	18,265,000	30,889,000
Recurring | Contingent Liabilities | CyDex
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent liabilities		308,000	308,000	349,000
Recurring | Contingent Liabilities | Metabasis
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent liabilities		2,507,000	2,507,000	3,358,000
Recurring | Contingent Liabilities | Icagen
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent liabilities		5,333,000	5,333,000	7,364,000
Recurring | Contingent Liabilities | xCella
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent liabilities		480,000	480,000	0
Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets		22,914,000	22,914,000	40,624,000
Amounts owed to former licensor		73,000	73,000	86,000
Total liabilities		73,000	73,000	86,000
Recurring | Level 1 | Short-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, fair value		4,649,000	4,649,000	9,735,000
Recurring | Level 1 | Common Stock
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, fair value				30,889,000
Recurring | Level 1 | Contingent Liabilities | CyDex
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent liabilities		0	0	0
Recurring | Level 1 | Contingent Liabilities | Metabasis
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent liabilities		0	0	0
Recurring | Level 1 | Contingent Liabilities | Icagen
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent liabilities		0	0	0
Recurring | Level 1 | Contingent Liabilities | xCella
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent liabilities		0	0	0
Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets		94,145,000	94,145,000	280,553,000
Amounts owed to former licensor		0	0	0
Total liabilities		2,507,000	2,507,000	3,358,000
Recurring | Level 2 | Short-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, fair value		94,145,000	94,145,000	280,553,000
Recurring | Level 2 | Common Stock
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, fair value		0	0	0
Recurring | Level 2 | Contingent Liabilities | CyDex
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent liabilities		0	0	0
Recurring | Level 2 | Contingent Liabilities | Metabasis
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent liabilities		2,507,000	2,507,000	3,358,000
Recurring | Level 2 | Contingent Liabilities | Icagen
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent liabilities		0	0	0
Recurring | Level 2 | Contingent Liabilities | xCella
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent liabilities		0	0	0
Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets		232,000	232,000	409,000
Amounts owed to former licensor		0	0	0
Total liabilities		6,121,000	6,121,000	7,713,000
Recurring | Level 3 | Short-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, fair value		232,000	232,000	409,000
Recurring | Level 3 | Common Stock
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, fair value		0	0	0
Recurring | Level 3 | Contingent Liabilities | CyDex
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent liabilities		308,000	308,000	349,000
Recurring | Level 3 | Contingent Liabilities | Metabasis
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent liabilities		0	0	0
Recurring | Level 3 | Contingent Liabilities | Icagen
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent liabilities		5,333,000	5,333,000	7,364,000
Recurring | Level 3 | Contingent Liabilities | xCella
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent liabilities		$ 480,000	$ 480,000	$ 0

Fair Value Measurements - Recon

Fair Value Measurements - Reconciliation of Level 3 Financial Instruments (Details) - Level 3 $ in Thousands	9 Months Ended
	Sep. 30, 2022 USD ($)
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	(2,505)
Fair value adjustments to contingent liabilities	(527)
Contingent liabilities from xCella asset acquisition	1,440
Fair value of level 3 financial instruments as of September 30, 2022	$ 6,121

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) - reporting_unit	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Fair Value Disclosures [Abstract]
Number of reporting units	2	1

Convertible Senior Notes - Narr

Convertible Senior Notes - Narrative (Details)		1 Months Ended			2 Months Ended	3 Months Ended	6 Months Ended	9 Months Ended		12 Months Ended
	Nov. 01, 2022 d	Aug. 31, 2022 USD ($)	Jan. 31, 2021 USD ($)	May 31, 2018 USD ($) d $ / shares shares	Sep. 30, 2022 USD ($) option	Sep. 30, 2022 USD ($) option	Jun. 30, 2022 USD ($)	Sep. 30, 2022 USD ($) option	Sep. 30, 2021 USD ($)	Dec. 31, 2021 USD ($) option shares
Debt Instrument [Line Items]
Gain on extinguishment of debt								$ 4,192,000	$ (7,303,000)
Adjustments to additional paid-in-capital from warrants								$ 200,000		$ 500,000
Payments to unwind warrants										18,400,000
Proceeds from unwinding convertible bond hedges					$ 200,000					$ 18,900,000
Number of options under convertible bond hedges | option					370,219	370,219		370,219		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	$ 76,854,000	$ 76,854,000		$ 76,854,000		$ 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 (in USD per share) | $ / shares				$ 248.48
Debt issuance costs					$ 16,900,000	$ 16,900,000		$ 16,900,000
Term of debt instrument								5 years
Effective interest rate (as a percent)					0.50%	0.50%		0.50%
Total interest expense						$ 300,000		$ 1,500,000
Contractual interest expense						200,000		900,000
Amortized issuance costs						100,000		600,000
Repurchased amount of debt instrument			$ 20,300,000					266,400,000		152,000,000
Repayments of notes			19,100,000					261,400,000		156,000,000
Accrued interest portion of repurchased amount of debt instrument			$ 100,000				$ 400,000	500,000		300,000
Outstanding principal amount of debt										$ 343,300,000
Gain on extinguishment of debt								4,200,000
Decrease in debt discount								$ 1,300,000
Warrants issued in public offering (in shares) | shares				3,018,327						2,559,254
Payments for convertible bond hedges				$ 140,300,000
Warrant exercise price (in 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 | Notes repurchased during current period
Debt Instrument [Line Items]
Repurchased amount of debt instrument						38,600,000
Repayments of notes						37,700,000
Accrued interest portion of repurchased amount of debt instrument						100,000
Gain on extinguishment of debt						900,000
Decrease in debt discount						$ 100,000
Convertible Notes | 2023 Convertible Senior Notes | Notes repurchased in August 2022
Debt Instrument [Line Items]
Repurchased amount of debt instrument		$ 227,800,000
Repayments of notes		$ 223,700,000
Convertible Notes | 2023 Convertible Senior Notes | Subsequent Event
Debt Instrument [Line Items]
Consecutive trading days | d	10
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%
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%
Convertible Notes | 2023 Convertible Senior Notes | Maximum
Debt Instrument [Line Items]
Initial conversion rate (shares per $1,000)				0.0052317
Initial conversion price (in USD per share) | $ / shares				$ 191.14

Convertible Senior Notes - Note

Convertible Senior Notes - Notes Payable (Details) - Convertible Notes - 2023 Convertible Senior Notes - USD ($)	Sep. 30, 2022	Dec. 31, 2021	May 31, 2018
Notes Payable, Current and Noncurrent [Abstract]
Principal amount of the 2023 Notes outstanding	$ 76,854,000	$ 343,301,000	$ 750,000,000
Unamortized discount (including unamortized debt issuance cost)	(254,000)	(22,584,000)
Total long-term portion of notes payable	76,600,000	320,717,000
Fair value of the 2023 Notes outstanding (Level 2)	$ 74,395,000	$ 341,801,000

Income Tax (Details)

Income Tax (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Tax Contingency [Line Items]
Effective income tax rate (as a percent)	52.90%	10.10%	20.30%	(15.10%)
Pfenex
Income Tax Contingency [Line Items]
Pfenex CVR adjustment amount		$ 3.8		$ 37.6

Stockholders' Equity - Stock Op

Stockholders' Equity - Stock Option Plan and Restricted Stock Activity (Details)	9 Months Ended
	Sep. 30, 2022 $ / shares shares
Stock Options
Shares
Balance at beginning of period (in shares) | shares	2,199,598
Granted (in shares) | shares	852,475
Options exercised (in shares) | shares	(34,941)
Forfeited (in shares) | shares	(36,529)
Balance at end of period (in shares) | shares	2,980,603
Weighted-Average Exercise Price
Balance at beginning of period (in USD per share) | $ / shares	$ 106
Granted (in USD per share) | $ / shares	91.39
Options exercised (in USD per share) | $ / shares	38.56
Forfeited (in USD per share) | $ / shares	76.26
Balance at end of period (in USD per share) | $ / shares	$ 102.98
Restricted Stock Awards
Restricted Stock Awards
Nonvested at beginning of period (in shares) | shares	264,143
Granted (in shares) | shares	260,577
RSUs vested (in shares) | shares	(136,448)
Forfeited (in shares) | shares	(2,059)
Nonvested at end of period (in shares) | shares	386,213
Weighted-Average Grant Date Fair Value
Nonvested at beginning of period (in USD per share) | $ / shares	$ 138.21
Granted (in USD per share) | $ / shares	89.99
RSUs vested (in USD per share) | $ / shares	120.77
Forfeited (in USD per share) | $ / shares	121.79
Nonvested at end of period (in USD per share) | $ / shares	$ 111.93

Stockholders' Equity - Narrativ

Stockholders' Equity - Narrative (Details) - USD ($)		3 Months Ended	9 Months Ended
	Sep. 11, 2019	Sep. 30, 2022	Sep. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding options that are exercisable (in shares)		1,700,000	1,700,000
Outstanding options that are exercisable, weighted average exercise price (in USD per share)		$ 102.23	$ 102.23
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	$ 0
Remaining authorized stock repurchase amount		248,800,000	248,800,000
At-the Market Equity Offering
Employee Stock Purchase Plan
Sale of stock, authorized offering amount		$ 100,000,000	$ 100,000,000
Employee Stock Purchase Plan
Employee Stock Purchase Plan
Share purchase price as percent of market price (as a percent)			85%
Shares available for future purchases (in shares)			38,007

Commitment and Contingencies__2

Commitment and Contingencies: Legal Proceedings (Details)	Oct. 31, 2019 civil_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) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2022 USD ($)	Sep. 30, 2022 USD ($)
Lessee, Lease, Description [Line Items]
Increase in operating lease assets	$ 8.3	$ 18.4
Increase in operating lease liabilities	$ 8.5	$ 21.7
Maximum
Lessee, Lease, Description [Line Items]
Remaining lease term of operating leases	10 years	10 years
Lease renewal term of operating leases	5 years	5 years

Leases - Operating and Finance

Leases - Operating and Finance Lease Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Assets
Operating lease assets	$ 32,108	$ 16,542
Finance lease assets	14,444	16,207
Total lease assets	46,552	32,749
Current liabilities:
Current operating lease liabilities	2,345	2,053
Current financing lease liabilities	48	46
Current lease liabilities	2,393	2,099
Noncurrent liabilities:
Long-term operating lease liabilities	34,893	15,494
Long-term finance lease liabilities	14	58
Total lease liabilities	$ 37,300	$ 17,651

Leases - Maturity of Operating

Leases - Maturity of Operating Lease Liabilities (Details) $ in Thousands	Sep. 30, 2022 USD ($)
Leases [Abstract]
Remaining three months ending December 31, 2022	$ 1,306
2023	4,842
2024	4,735
2025	4,939
2026	5,242
2027	5,381
Thereafter	22,317
Total lease payments	48,762
Less estimated tenant improvement allowance:	(1,030)
Less imputed interest	(10,494)
Present value of lease liabilities	$ 37,238

Subsequent Event (Details)

Subsequent Event (Details)	Oct. 26, 2022
Subsequent Event | OmniAb
Subsequent Event [Line Items]
Ownership percentage	100%