Ligand Pharmaceuticals (LGND) 10-Q 8 Nov 24 2024 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2024	Nov. 05, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2024
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	555 Heritage Drive, Suite 200
Entity Address, City or Town	Jupiter
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	33458
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		18,895,373
Amendment Flag	false
Document Fiscal Year Focus	2024
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, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 63,619	$ 22,954
Short-term investments	156,024	147,355
Accounts receivable, net	34,318	32,917
Inventory	16,740	23,969
Income taxes receivable	7,813	6,395
Current derivative assets	11,133	0
Other current assets	19,741	3,839
Total current assets	309,388	237,429
Intangible assets, net	274,905	299,606
Goodwill	105,250	103,370
Long-term portion of financial royalty assets, net	199,251	62,291
Noncurrent derivative assets	19,246	3,531
Property and equipment, net	15,094	15,607
Operating lease right-of-use assets	7,157	6,062
Finance lease right-of-use assets	2,940	3,393
Equity method investment in Primrose Bio	1,245	12,595
Other investments	11,908	36,726
Deferred income taxes, net	78	214
Other assets	8,404	6,392
Total assets	954,866	787,216
Current liabilities:
Accounts payable	4,694	2,427
Accrued liabilities	15,600	12,467
Income taxes payable	2,108	0
Deferred revenue	1,152	1,222
Current contingent liabilities	128	256
Current operating lease liabilities	1,066	403
Current finance lease liabilities	24	7
Total current liabilities	24,772	16,782
Long-term deferred revenue	2,508	1,444
Long-term contingent liabilities	3,863	2,942
Long-term operating lease liabilities	6,267	5,755
Deferred income taxes, net	46,404	31,622
Other long-term liabilities	29,874	27,758
Total liabilities	113,688	86,303
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.001 par value; 5,000 shares authorized; zero issued and outstanding at September 30, 2024 and December 31, 2023	0	0
Common stock, $0.001 par value; 60,000 shares authorized; 18,760 and 17,556 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively	19	18
Additional paid-in capital	309,341	198,696
Accumulated other comprehensive loss	1,746	(817)
Retained earnings	530,072	503,016
Total stockholders' equity	841,178	700,913
Total liabilities and stockholders' equity	$ 954,866	$ 787,216

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands	Sep. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Preferred stock, par value (in USD per share)	$ 0.001	$ 0.001
Preferred stock authorized (in shares)	5,000	5,000
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	60,000
Common stock issued (in shares)	18,760	17,556
Common stock outstanding (in shares)	18,760	17,556

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Revenues and other income:
Total revenues and other income	$ 51,812	$ 32,868	$ 124,321	$ 103,213
Operating costs and expenses:
Cost of Captisol	2,449	3,485	8,237	8,871
Amortization of intangibles	8,258	8,238	24,701	25,316
Research and development	5,675	5,532	17,000	19,049
General and administrative	24,475	14,656	53,049	36,798
Financial royalty assets impairment	0	0	26,491	0
Fair value adjustments to partner program derivatives	7,812	0	7,812	0
Total operating costs and expenses	48,669	31,911	137,290	90,034
Gain on sale of Pelican	0	(2,121)	0	(2,121)
Operating income (loss) from continuing operations	3,143	3,078	(12,969)	15,300
Non-operating income and expenses:
Gain (loss) from short-term investments	2,407	(13,184)	98,923	30,340
Interest income	1,347	2,263	6,124	6,018
Interest expense	(741)	(1)	(2,154)	(525)
Other non-operating expense, net	(12,495)	(4,300)	(48,206)	(4,570)
Total non-operating (expenses) income, net	(9,482)	(15,222)	54,687	31,263
(Loss) income before income taxes from continuing operations	(6,339)	(12,144)	41,718	46,563
Income tax benefit (expense)	(833)	1,871	(14,662)	(10,932)
Net (loss) income from continuing operations	(7,172)	(10,273)	27,056	35,631
Net loss from discontinued operations	0	0	0	(1,665)
Net (loss) income	$ (7,172)	$ (10,273)	$ 27,056	$ 33,966
Earnings per share
Basic net (loss) income from continuing operations per share (in USD per share)	$ (0.39)	$ (0.59)	$ 1.50	$ 2.07
Basic net loss from discontinued operations per share (in USD per share)	0	0	0	(0.10)
Basic net (loss) income per share (in USD per share)	$ (0.39)	$ (0.59)	$ 1.50	$ 1.97
Shares used in basic per share calculation (in shares)	18,419	17,380	18,061	17,241
Diluted net (loss) income from continuing operations per share (in USD per share)	$ (0.39)	$ (0.59)	$ 1.46	$ 2
Diluted net loss from discontinued operations per share (in USD per share)	0	0	0	(0.09)
Diluted net (loss) income per share (in USD per share)	$ (0.39)	$ (0.59)	$ 1.46	$ 1.91
Shares used in diluted per share calculation (in shares)	18,419	17,380	18,574	17,784
Royalties
Revenues and other income:
Total revenues and other income	$ 31,709	$ 23,888	$ 73,966	$ 62,473
Revenue from intangible royalty assets
Revenues and other income:
Total revenues and other income	26,552	23,863	67,512	61,447
Income from financial royalty assets
Revenues and other income:
Total revenues and other income	5,157	25	6,454	1,026
Captisol
Revenues and other income:
Total revenues and other income	6,255	8,608	22,967	24,450
Contract revenue and other income
Revenues and other income:
Total revenues and other income	$ 13,848	$ 372	$ 27,388	$ 16,290

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Statement of Comprehensive Income [Abstract]
Net (loss) income	$ (7,172)	$ (10,273)	$ 27,056	$ 33,966
Unrealized net (loss) gain on available-for-sale securities, net of tax	121	23	3	40
Foreign currency translation adjustment, net of tax	2,560	0	2,560	0
Comprehensive (loss) income	$ (4,491)	$ (10,250)	$ 29,619	$ 34,006

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional paid in capital	Accumulated other comprehensive income (loss)	Retained earnings
Balance at beginning of period at Dec. 31, 2022	$ 597,485	$ 17	$ 147,590	$ (984)	$ 450,862
Balance at beginning of period (in shares) at Dec. 31, 2022		16,951
Increase (Decrease) in Stockholders' Equity
Issuance of common stock under employee stock compensation plans, net of shares withheld for payroll taxes	(762)		(762)
Issuance of common stock under employee stock compensation plans, net of shares withheld for payroll taxes (in shares)		183
Share-based compensation	5,931		5,931
Unrealized net (loss) gain on available-for-sale securities, net of tax	49			49
Final distribution of OmniAb	1,665		1,665
Net income (loss)	41,949				41,949
Balance at end of period at Mar. 31, 2023	646,317	$ 17	154,424	(935)	492,811
Balance at end of period (in shares) at Mar. 31, 2023		17,134
Balance at beginning of period at Dec. 31, 2022	597,485	$ 17	147,590	(984)	450,862
Balance at beginning of period (in shares) at Dec. 31, 2022		16,951
Increase (Decrease) in Stockholders' Equity
Unrealized net (loss) gain on available-for-sale securities, net of tax	40
Foreign currency translation adjustment, net of tax	0
Net income (loss)	33,966
Balance at end of period at Sep. 30, 2023	667,896	$ 18	183,994	(944)	484,828
Balance at end of period (in shares) at Sep. 30, 2023		17,421
Balance at beginning of period at Mar. 31, 2023	646,317	$ 17	154,424	(935)	492,811
Balance at beginning of period (in shares) at Mar. 31, 2023		17,134
Increase (Decrease) in Stockholders' Equity
Issuance of common stock under employee stock compensation plans, net of shares withheld for payroll taxes	9,110		9,110
Issuance of common stock under employee stock compensation plans, net of shares withheld for payroll taxes (in shares)		218
Share-based compensation	7,207		7,207
Unrealized net (loss) gain on available-for-sale securities, net of tax	(32)			(32)
Net income (loss)	2,290				2,290
Balance at end of period at Jun. 30, 2023	664,892	$ 17	170,741	(967)	495,101
Balance at end of period (in shares) at Jun. 30, 2023		17,352
Increase (Decrease) in Stockholders' Equity
Issuance of common stock under employee stock compensation plans, net of shares withheld for payroll taxes	3,285	$ 1	3,284
Issuance of common stock under employee stock compensation plans, net of shares withheld for payroll taxes (in shares)		69
Share-based compensation	6,884		6,884
Unrealized net (loss) gain on available-for-sale securities, net of tax	23			23
Foreign currency translation adjustment, net of tax	0
Tax return to provision	3,085		3,085
Net income (loss)	(10,273)				(10,273)
Balance at end of period at Sep. 30, 2023	667,896	$ 18	183,994	(944)	484,828
Balance at end of period (in shares) at Sep. 30, 2023		17,421
Balance at beginning of period at Dec. 31, 2023	$ 700,913	$ 18	198,696	(817)	503,016
Balance at beginning of period (in shares) at Dec. 31, 2023	17,556	17,556
Increase (Decrease) in Stockholders' Equity
Issuance of common stock under employee stock compensation plans, net of shares withheld for payroll taxes	$ 12,228		12,228
Issuance of common stock under employee stock compensation plans, net of shares withheld for payroll taxes (in shares)		368
Share-based compensation	7,334		7,334
Unrealized net (loss) gain on available-for-sale securities, net of tax	(93)			(93)
Net income (loss)	86,139				86,139
Balance at end of period at Mar. 31, 2024	806,521	$ 18	218,258	(910)	589,155
Balance at end of period (in shares) at Mar. 31, 2024		17,924
Balance at beginning of period at Dec. 31, 2023	$ 700,913	$ 18	198,696	(817)	503,016
Balance at beginning of period (in shares) at Dec. 31, 2023	17,556	17,556
Increase (Decrease) in Stockholders' Equity
Unrealized net (loss) gain on available-for-sale securities, net of tax	$ 3
Foreign currency translation adjustment, net of tax	2,560
Net income (loss)	27,056
Balance at end of period at Sep. 30, 2024	$ 841,178	$ 19	309,341	1,746	530,072
Balance at end of period (in shares) at Sep. 30, 2024	18,760	18,760
Balance at beginning of period at Mar. 31, 2024	$ 806,521	$ 18	218,258	(910)	589,155
Balance at beginning of period (in shares) at Mar. 31, 2024		17,924
Increase (Decrease) in Stockholders' Equity
Issuance of common stock under employee stock compensation plans, net of shares withheld for payroll taxes	9,553	$ 1	9,552
Issuance of common stock under employee stock compensation plans, net of shares withheld for payroll taxes (in shares)		179
Share-based compensation	11,060		11,060
Unrealized net (loss) gain on available-for-sale securities, net of tax	(25)			(25)
Net income (loss)	(51,911)				(51,911)
Balance at end of period at Jun. 30, 2024	775,198	$ 19	238,870	(935)	537,244
Balance at end of period (in shares) at Jun. 30, 2024		18,103
Increase (Decrease) in Stockholders' Equity
Issuance of common stock under employee stock compensation plans, net of shares withheld for payroll taxes	21,270	$ 0	21,270
Issuance of common stock under employee stock compensation plans, net of shares withheld for payroll taxes (in shares)		323
Issuance of common stock under ATM, net of commissions and fees	34,030		34,030
Issuance of common stock under ATM, net of commissions and fees (in shares)		334
Share-based compensation	15,171		15,171
Unrealized net (loss) gain on available-for-sale securities, net of tax	121			121
Foreign currency translation adjustment, net of tax	2,560			2,560
Net income (loss)	(7,172)				(7,172)
Balance at end of period at Sep. 30, 2024	$ 841,178	$ 19	$ 309,341	$ 1,746	$ 530,072
Balance at end of period (in shares) at Sep. 30, 2024	18,760	18,760

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Cash flows from operating activities:
Net income	$ 27,056,000	$ 33,966,000
Adjustments to reconcile net income to net cash provided by operating activities:
Change in estimated fair value of contingent liabilities	993,000	132,000
Depreciation and amortization of intangible assets	26,612,000	27,605,000
Amortization of premium on investments, net	(725,000)	(938,000)
Amortization of debt discount and issuance fees	314,000	159,000
Non-cash income from financial royalty assets	(4,687,000)	(883,000)
CECL adjustment to financial royalty assets	(3,463,000)	3,190,000
Impairment loss of financial royalty assets	26,491,000	924,000
Loss on derivative assets	14,655,000	0
Gain on sale of Pelican	0	(2,121,000)
Losses from equity method investment in Primrose Bio	11,576,000	0
Fair value adjustment to Primrose Bio securities investments	25,788,000	0
Share-based compensation	33,565,000	20,022,000
Deferred income taxes	(3,108,000)	6,761,000
Gain from short-term investments	(98,923,000)	(30,340,000)
Lease amortization expense	1,555,000	1,231,000
Other	3,123,000	215,000
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable	(794,000)	(5,436,000)
Inventory	7,053,000	(11,577,000)
Accounts payable and accrued liabilities	2,617,000	(7,461,000)
Income tax receivable and payable	(607,000)	5,818,000
Deferred revenue	(1,172,000)	226,000
Other assets and liabilities	657,000	19,000
Net cash provided by operating activities	68,576,000	41,512,000
Cash flows from investing activities:
Acquisition of financial royalty assets	(17,819,000)	0
Proceeds from financial royalty assets	4,892,000	349,000
Purchase of short-term investments	(133,629,000)	(107,262,000)
Proceeds from sale of short-term investments	189,563,000	96,318,000
Proceeds from maturity of short-term investments	27,751,000	37,941,000
Cash paid for investment in Primrose Bio	(998,000)	(15,235,000)
Cash paid for Palvella notes receivable	(2,500,000)	0
Cash paid for Novan acquisition, net of restricted cash received	0	(10,405,000)
Cash paid for the Agenus transaction	(75,000,000)	0
Cash paid for Apeiron acquisition, net of cash received	(91,996,000)	0
Cash paid for InvIOs investment	(4,196,000)	0
Purchase of property and equipment	(1,109,000)	(3,104,000)
Net cash (used in) provided by investing activities	(105,041,000)	(1,398,000)
Cash flows from financing activities:
Proceeds from ATM sales, net of commissions and fees	34,030,000	0
Repayment at maturity/repurchase of 2023 Notes	0	(76,854,000)
Payments under finance lease obligations	(19,000)	(40,000)
Net proceeds from stock option exercises and ESPP	46,251,000	15,922,000
Taxes paid related to net share settlement of equity awards	(3,201,000)	(4,290,000)
Cash paid for debt issuance costs	(308,000)	0
Net cash provided by (used in) financing activities	76,753,000	(65,262,000)
Effect of exchange rate changes on cash and cash equivalents	377,000	0
Net increase in cash and cash equivalents	40,665,000	(25,148,000)
Cash and cash equivalents at beginning of period	22,954,000	45,006,000
Cash and cash equivalents at end of period	63,619,000	19,858,000
Supplemental disclosure of cash flow information:
Interest paid	262,000	288,000
Taxes paid	17,346,000	10,000
Restricted cash in other assets	0	583,000
Acquisitions:
Goodwill	105,250,000
Net cash paid for acquisitions	0	10,405,000
Supplemental schedule of non-cash activity:
Accrued Primrose transaction costs	0	1,013,000
Addition of right-of-use assets and lease liabilities	1,769,000	0
Accrued fixed asset purchases	289,000	409,000
Accrued debt issuance costs	8,000	0
Unrealized gain on AFS investments, net of tax	3,000	40,000
Novan, Inc.
Cash flows from investing activities:
Cash paid for Novan acquisition, net of restricted cash received		(10,405,000)
Acquisitions:
Fair value of tangible assets acquired, net of cash and restricted cash received		17,887,000
Goodwill		3,709,000
Financial royalty assets		0
Intangible assets		10,700,000
Liabilities assumed		(21,891,000)
Net cash paid for acquisitions		$ 10,405,000
APEIRON
Cash flows from investing activities:
Cash paid for Novan acquisition, net of restricted cash received	(91,996,000)
Acquisitions:
Fair value of tangible assets acquired, net of cash and restricted cash received	8,965,000
Goodwill	0
Financial royalty assets	106,156,000
Intangible assets	0
Liabilities assumed	(23,125,000)
Net cash paid for acquisitions	$ 91,996,000

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2024
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 Business We are a biopharmaceutical company enabling scientific advancement through supporting the clinical development of high-value medicines. We do this by providing financing, licensing our technologies or both. We operate in one reportable segment: development and licensing of biopharmaceutical assets. Basis of Presentation Our unaudited 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 2023 Annual Report. Interim financial results are not necessarily indicative of the results that may be expected for the full year. Reclassification Certain reclassifications have been made to the previously issued audited consolidated financial statements to conform with the current period presentation. Specifically, within the consolidated balance sheet as of December 31, 2023, our commercial license and other economic rights line has been reclassified to long-term portion of financial royalty assets, net, and to other assets, and a portion of other investments has been reclassified from other assets. Moreover, noncurrent derivative assets as of December 31, 2023, have been reclassified from other assets. In addition, within the unaudited condensed consolidated statement of operations for the three and nine months ended September 30, 2023, royalties have been reclassified to revenue from intangible royalty assets, and a portion of the contract revenue has been reclassified to income from financial royalty assets. Discontinued Operations The Company determined that the spin-off of the OmniAb Business in November 2022 met the criteria for classification as a discontinued operation in accordance with ASC Subtopic 205-20, Discontinued Operations (“ASC 205-20”). Accordingly, the accompanying condensed consolidated financial statements have been updated to present the results of all discontinued operations reported as a separate component of loss in the condensed consolidated statements of operations and comprehensive loss (see Note 5, Spin-off of OmniAb ). All disclosures have been adjusted to reflect continuing operations. 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 2023 Annual Report. Use of Estimates The preparation of unaudited condensed consolidated financial statements in conformity with GAAP requires the use of estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements and the accompanying notes. Actual results may differ from those estimates. Revenue and Other Income Our revenue is generated primarily from royalties on sales of products commercialized by our partners, Captisol material sales, income from financial royalty assets, and contract revenue for license fees, technical, regulatory and sales-based milestone payments. Other operating income is primarily related to milestone income received for financial royalty assets that have been fully amortized or where there is no underlying asset recognized on the consolidated balance sheets. 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. Revenue from Intangible Royalty Assets We receive royalty revenue from intangible royalty assets 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 when 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. Income from Financial Royalty Assets Effective January 1, 2024, we introduced a new line item “income from financial royalty assets”, which was included in “contract revenue” in prior periods. Accordingly, the prior year period amounts have been reclassified to align with the current period presentation. We recognize income from financial royalty assets when there is a reasonable expectation about the timing and amount of cash flows expected to be collected. Income is calculated by multiplying the carrying value of the financial royalty asset by the periodic effective interest rate. We account for financial royalty assets related to developmental pipeline or recently commercialized products on a non-accrual basis. Developmental pipeline products are non-commercialized, non-approved products that require FDA or other regulatory approval, and thus have uncertain cash flows. Newly commercialized products typically do not have an established reliable sales pattern, and thus have uncertain cash flows. 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 and Other Income 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. 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. Other income is primarily related to milestone income received for financial royalty assets that have been fully amortized or where there is no underlying asset recognized on the consolidated balance sheets. 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. Any fees billed in advance of being earned are recorded as deferred revenue. During the three and nine months ended September 30, 2024, the amount recognized as revenue that was previously deferred was $0.2 million and $1.2 million, respectively. During the three and nine months ended September 30, 2023, the amount recognized as revenue that was previously deferred was immaterial. Disaggregation of Revenue The following table represents disaggregation of royalties, Captisol and contract revenue and other income (in thousands): Three months ended Nine months ended September 30, September 30, 2024 2023 2024 2023 Royalties Kyprolis $ 11,599 $ 10,537 $ 27,229 $ 24,862 Evomela 1,747 2,497 5,877 7,404 Teriparatide injection 2,376 2,800 6,520 9,913 Rylaze 3,886 3,678 10,070 9,315 Filspari 3,206 1,122 7,402 1,707 Vaxneuvance 1,466 1,313 3,962 2,990 Other 2,272 1,916 6,452 5,256 Revenue from intangible royalty assets 26,552 23,863 67,512 61,447 Income from financial royalty assets 5,157 25 6,454 1,026 31,709 23,888 73,966 62,473 Captisol 6,255 8,608 22,967 24,450 Contract revenue and other income Milestone and other 13,848 372 25,444 16,290 Other income — — 1,944 — Contract revenue and other income 13,848 372 27,388 16,290 Total $ 51,812 $ 32,868 $ 124,321 $ 103,213 Short-term Investments Our short-term investments consist of the following at September 30, 2024 and December 31, 2023 (in thousands): September 30, 2024 Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Bond fund $ 39,512 $ — $ (265) $ 39,247 U.S. government securities 19,051 31 — 19,082 Bank deposits 12,280 21 — 12,301 Corporate bonds 10,969 30 (3) 10,996 Commercial paper 10,591 5 (1) 10,595 Corporate equity securities 6,551 — (6,058) 493 $ 98,954 $ 87 $ (6,327) 92,714 Viking common stock 63,310 Total short-term investments $ 156,024 December 31, 2023 Bond fund $ 63,763 $ — $ (537) $ 63,226 Bank deposits 17,165 12 (1) 17,176 Corporate bonds 14,850 40 (2) 14,888 Commercial paper 11,578 9 (1) 11,586 U.S. government securities 6,736 18 (3) 6,751 Municipal bonds 1,007 — (4) 1,003 Corporate equity securities 5,775 — (5,235) 540 $ 120,874 $ 79 $ (5,783) 115,170 Viking common stock 32,185 Total short-term investments $ 147,355 During the nine months ended September 30, 2024, we sold 0.7 million shares of Viking common stock and recognized a realized gain of $60.0 million in total. We did not sell Viking common stock during the three months ended September 30, 2024. During the nine months ended September 30, 2023, we sold 4.5 million shares of Viking common stock and recognized a realized gain of $37.2 million in total. During the three months ended September 30, 2023, there were no sales of Viking common stock. 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, 2024 and 2023. The following table summarizes our available-for-sale debt securities by contractual maturity (in thousands): September 30, 2024 Amortized Cost Fair Value Within one year $ 91,072 $ 91,152 After one year through five years 4,647 4,655 Total $ 95,719 $ 95,807 Our investment policy is capital preservation and we only invest in U.S.-dollar denominated investments. We held a total of 32 investments which were in an unrealized loss position with a total of $0.01 million unrealized losses as of September 30, 2024. 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. In July 2024, we sold certain securities before the recovery of the amortized cost basis to fund the Apeiron acquisition. Accordingly, we wrote down the amortized cost of $0.05 million during the nine months ended September 30, 2024. 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 as of September 30, 2024. Accordingly, there was no credit loss recognized for the three months ended September 30, 2024. There were no credit losses recognized for the three and nine months ended September 30, 2023. 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, 2024, we considered the current and expected economic and market conditions and concluded a decrease of $0.01 million and a decrease of $0.13 million in the allowance for credit losses, respectively. During the three and nine months ended September 30, 2023, we considered the current and expected economic and market conditions and concluded an increase of $0.10 million and an increase of $0.14 million in the allowance for credit losses, respectively. Inventory Inventory, which consists of finished goods (Captisol), is stated at the lower of cost or net realizable value. We determine cost using 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 was a $0.1 million and $0.2 million write-down recorded against inventory for the three and nine months ended September 30, 2024, respectively. There was no write-down recorded against inventory for the three and nine months ended September 30, 2023. In addition to finished goods, as of September 30, 2024 and December 31, 2023, inventory included prepayments of $3.3 million and $4.6 million, respectively, to our supplier for Captisol. Goodwill and Other Identifiable Intangible Assets Goodwill and other identifiable intangible assets consist of the following (in thousands): September 30, December 31, 2024 2023 Indefinite-lived intangible assets Goodwill $ 105,250 $ 103,370 Definite lived intangible assets Complete technology 39,249 42,911 Less: accumulated amortization (19,072) (20,894) Trade name 2,642 2,642 Less: accumulated amortization (1,810) (1,710) Customer relationships 29,600 29,600 Less: accumulated amortization (20,280) (19,161) Contractual relationships 360,000 360,000 Less: accumulated amortization (115,424) (93,782) Total goodwill and other identifiable intangible assets, net $ 380,155 $ 402,976 Financial Royalty Assets, net (formerly known as Commercial License Rights) Financial royalty assets represent a portfolio of future milestone and royalty payment rights acquired that are passive in nature (i.e., we do not own the intellectual property or have the right to commercialize the underlying products). Although a financial royalty asset does not have the contractual terms typical of a loan (such as contractual principal and interest), we account for financial royalty assets under ASC 310, Receivables . Our financial royalty assets are classified similar to loans receivable and are measured at amortized cost using the prospective effective interest method described in ASC 835-30 Imputation of Interest . The effective interest rate is calculated by forecasting the expected cash flows to be received over the life of the asset relative to the initial invested amount. The effective interest rate is recalculated in each reporting period as the difference between expected cash flows and actual cash flows are realized and as there are changes to expected future cash flows. The gross carrying value of a financial royalty asset is made up of the opening balance, or net purchase price for a new financial royalty asset, which is increased by accrued interest income (except for assets under the non-accrual method) and decreased by cash receipts in the period to arrive at the ending balance. We evaluate financial royalty assets for recoverability on an individual basis by comparing the effective interest rate at each reporting date to that of the prior period. If the effective interest rate is lower for the current period than the prior period, and if the gross cash flows have declined (expected and collected), we record provision expense for the change in expected cash flows. The provision is measured as the difference between the financial royalty asset’s amortized cost basis and the net present value of the expected future cash flows, calculated using the prior period’s effective interest rate. In addition to the above allowance, we recognize an allowance for current expected credit losses under ASC 326, Financial Instruments – Credit Losses on our financial royalty assets. The credit rating, which is primarily based on publicly available data and updated quarterly, is the primary credit quality indicator used to determine the credit loss provision. The carrying value of financial royalty assets is presented net of the cumulative allowance for changes in expected future cash flows and expected credit losses. The initial amount and subsequent revisions in allowances for changes in expected future cash flows and expected credit losses are recorded as part of general and administrative expenses on the condensed consolidated statements of operations. When we are reasonably certain that a part of a financial royalty asset’s net carrying value (or all of it) is not recoverable, we recognize a permanent impairment which is recorded in a financial royalty asset impairment on the condensed consolidated statements of operations. To the extent there was an allowance previously recorded for this asset, the amount of such impairment is written off against the allowance at the time that such a determination is made. Any future recoveries from such impairment are recognized when cash is collected in a respective period earnings. The current portion of financial royalty assets represents an estimation for current quarter royalty receipts which are collected during the subsequent quarter. This portion is presented in other current assets on our consolidated balance sheets, net of the allowance for expected credit losses. For additional information, see Note 6, Financial Royalty Assets, net (formerly known as Commercial License Rights). Derivative Assets Derivative assets include instruments used for risk-management purposes, and other instruments. Derivative assets which are not used for risk management purposes, include: (a) acquired rights in future milestone and royalty payments from Agenus Partnered Programs (as defined below), (b) Agenus Warrant (as defined below), (c) option to invest up to $25 million to milestone and royalty rights which expires on June 30, 2025 ("Upsize Option"), and (d) rights to receive from Primrose Bio 50% of milestones on two contracts previously entered into by Primordial Genetics. In addition, we have entered into a collar arrangement to hedge against the fluctuation risk in Viking's share price (the “Viking Share Collar”). However, because the Viking stock investment is remeasured at fair value through earnings under ASC 321, the Viking Share Collar is not eligible for hedge accounting, but is considered as an economic hedge. All derivatives are measured at fair value on the consolidated balance sheets. Derivative assets consist of the following (in thousands): September 30, December 31, 2024 2023 Agenus Upsize Option (expires on 6/30/25) $ 3,815 $ — Viking shares collar 7,318 — Total current derivative assets $ 11,133 $ — Primrose mRNA $ 2,921 $ 3,531 Agenus Partner Programs 14,099 — Agenus Warrant (5 years contractual term) 2,226 — Total noncurrent derivative assets $ 19,246 $ 3,531 A change in the fair value of the Viking Shares Collar that amounted to $(7.9) million and $7.3 million during the three and nine months ended September 30, 2024, respectively, are included in gain (loss) from short-term investments Equity Method Investment Investments that we do not consolidate but in which we have significant influence over the operating and financial policies of the investee are classified as equity method investments and are accounted for using the equity method of accounting. In applying the equity method of accounting, investments are initially recorded at cost and are subsequently adjusted based on our proportionate share of net income or loss of the investee, net of any distributions received from the investee and any impairment. Other Investments Other investments represent our investments in equity securities of third parties in which we do not have control or significant influence. Our equity securities investments do not have a readily determinable or estimable fair value and are measured using the measurement alternative, which is cost less impairment, if any, and adjustments resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer. The amount of such impairment or adjustment recognized during the period is presented in other non-operating income (expense) in our condensed consolidated statements of operations. Other investments consist of the following (in thousands): September 30, December 31, 2024 2023 Equity securities in Primrose Bio $ 6,712 $ 32,726 InvIOs investment 4,196 — Neuritek warrants — 3,000 Palvella Series C preferred stock 1,000 1,000 Total other investments $ 11,908 $ 36,726 During the three months ended September 30, 2024, we recognized a full impairment for our investment in Neuritek warrants. Other Assets and Other Current Assets Other assets include economic rights related to the 2023 expansion of our strategic partnership with Palvella to accelerate Phase 3 development of QTORIN rapamycin for the treatment of Microcystic Lymphatic Malformations (“Microcystic LMs”). According to the terms of the second amendment to our development funding and royalties agreement with Palvella (the “Palvella Second Amendment”). Palvella received an upfront payment of $5 million from Ligand. In return for the upfront payment, among other contractual changes, the tiered royalty payable by Palvella to Ligand was increased to between 8.0% and 9.8% based on annual aggregate worldwide net sales of QTORIN rapamycin. We are not obligated to provide additional funding to Palvella for development or commercialization of QTORIN. We determined the economic rights related to Palvella should be characterized as a funded research and development arrangement, because the contract designated the funds usage for research and development activities, and thus we account for them in accordance with ASC 730-20, Research and Development Arrangement . We reduce our asset as the funds are expended by Palvella. As of September 30, 2024, of the $5 million upfront funding related to the Palvella Second Amendment, $0.7 million of the funding to Palvella was expended. Our CEO and director, Todd Davis, is a director of Palvella. Mr. Davis recused himself from both board's consideration of the agreement between us and Palvella, including any financial analysis, the terms of the Palvella Second Amendment and the vote to approve the Palvella Second Amendment and the related transactions. In June 2024, we funded Palvella $2.5 million in exchange for a convertible note with a maturity of three years, which is included in other assets in the condensed consolidated balance sheets. Other current assets primarily include $2.3 million Employee Retention Credit, $6.6 million current portion of financial royalty assets (disclosed in Note 6, Financial Royalty Assets, net ), $2.2 million prepaid expenses, and inventory (raw materials and work in process related to the manufacturing of finished goods) for the preparation of commercial supplies of ZELSUVMI™ by Pelthos Therapeutics, a wholly owned subsidiary of Ligand. For additional information on ZELSUVMI, see Note 4, Acquisitions . Below is a summary of the inventory included in other current assets (in thousands): September 30, December 31, 2024 2023 Raw materials $ 2,495 $ 420 Work in process 260 195 Total Pelthos inventory in other current assets $ 2,755 $ 615 Accrued Liabilities Accrued liabilities consist of the following (in thousands): September 30, December 31, 2024 2023 Compensation $ 3,830 $ 4,682 Subcontractor 1,756 1,756 Professional fees 3,296 2,394 Customer deposit 621 621 Supplier 276 303 Royalties owed to third parties 2,989 900 Amounts owed to former licensees — 45 Other 2,832 1,766 Total accrued liabilities $ 15,600 $ 12,467 Contingent Liabilities In connection with the acquisition of CyDex in January 2011, we recorded a contingent liability for amounts potentially due to holders of the CyDex CVRs and former license holders. The liability is periodically assessed based on events and circumstances related to the underlying milestones, royalties and material sales. In connection with the acquisition of Metabasis in January 2010, we issued Metabasis stockholders four tradable CVRs for each Metabasis share. The fair values of the CVRs are remeasured at each reporting date through the term of the related agreement. Any change in fair value is recorded in other non-operating expense, net within our condensed consolidated statement of operations. For additional information, see Note 7, Fair Value Measurements. Other Long-Term Liabilities Other long-term liabilities consist of the following (in thousands): September 30, December 31, 2024 2023 Unrecognized tax benefits $ 14,481 $ 14,039 Novan (Pelthos) contract liability 15,324 13,700 Other long-term liabilities 69 19 $ 29,874 $ 27,758 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, 2024 2023 2024 2023 SBC - Research and development expenses $ 982 $ 1,639 $ 2,588 $ 5,362 SBC - General and administrative expenses 14,189 5,245 30,977 14,660 $ 15,171 $ 6,884 $ 33,565 $ 20,022 The increase in share-based compensation for the three and nine months ended September 30, 2024 as compared to the prior periods are primarily due to the one-time stock compensation expense associated with the anticipated departure of our former President and Chief Operating Officer (“COO”) during the third quarter of 2024 and the new hires in 2024. 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, 2024 2023 2024 2023 Risk-free interest rate 4.4% 4.3% 4.3% 4.1% Dividend yield — — — — Expected volatility 44.7% 44.7% 44.7% 51.5% Expected term (years) 4.7 5.2 4.7 5.3 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. Although we paid off the 2023 Notes in May 2023, it would have a dilutive impact when the average market price of our common stock exceeds the maximum conversion price during the nine months ended September 30, 2023. It was our intent and policy to settle conversions through combination settlement, which involved 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. For additional information, see Note 10, Stockholders’ Equity . In accordance with ASC 260, Earnings per Share , if a company had a discontinuing operation, the company uses income from continuing operations, adjusted for preferred dividends and similar adjustm

Agenus Transaction

Agenus Transaction	9 Months Ended
	Sep. 30, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]
Agenus Transaction	Agenus Transaction On May 29, 2024, we closed the transactions pursuant to the $75 million purchase and sale agreement (the “Agenus Agreement”), dated May 6, 2024, among us and Agenus Inc., Agenus Royalty Fund, LLC, and Agenus Holdings 2024, LLC (collectively, “Agenus”). Under the terms of the Agenus Agreement, we received (i) 18.75% of the licensed royalties and 31.875% of the future licensed milestones paid to Agenus on six-partnered oncology programs, including BMS-986442 (Bristol Myers Squibb), AGEN2373 (Gilead Sciences), INCAGN2385 and INCAGN2390 (Incyte), MK-4830 (Merck), and UGN-301 (UroGen Pharma) (collectively referred as “Agenus Partnered Programs”), and (ii) a synthetic 2.625% royalty on future global net sales of Agenus’ novel immuno-oncology botensilimab in combination with balstilimab (“BOT/BAL”) program, collectively subject to certain events which may adjust the royalty and milestone percentages paid to us. In addition, we received the option to commit an additional $25 million in the same assets on a pro rata basis which expires on June 30, 2025 (“Upsize Option”). We have also agreed to allow Agenus to raise up to an additional $100 million bringing the total syndicated purchase price up to an aggregate of $200 million. As part of the Agenus Agreement, Agenus will grant us security over certain assets related to the programs included in the Agenus Agreement, subject to certain customary exceptions. In connection with entry into the Agenus Agreement, Agenus issued us a 5-year warrant (“Agenus Warrant”) to purchase 867,052 shares of its common stock, at an exercise price equal to $17.30. We accounted for all Agenus Partnered Programs, Agenus Warrant and Upsize Option as derivative assets. Upsize Option was presented within current derivative assets line (as it expires on June 30, 2025), and the other derivatives were presented in noncurrent derivative assets line in our condensed consolidated balance sheet. Agenus Partnered Programs are recognized as derivative assets under ASC 815, Derivatives and Hedging , as they have different underlyings (milestone payments and royalties). The commercial milestones and royalties are dependent on the development milestones and the commercial milestone and royalties underlyings are not determined to be predominate. The derivative assets were recorded at fair value as of May 29, 2024, and are marked to fair value at each subsequent reporting period. The fair value of Agenus Partnered Programs derivative assets is determined as a present value of expected future cash flows adjusted for the level of risk appropriate for a respective program stage. During the three months ended September 30, 2024, certain Agenus partners discontinued development of their partnered programs. These programs may be relicensed at a later date, and Ligand would retain its economic interest upon any relicense activity. The fair value of Agenus Warrant is determined using a Black-Scholes model. The following assumptions were used as of May 29, 2024, and September 30, 2024, respectively: expected term of 4.0 years and 3.7 years, volatility of 84% and 99%, risk-free rate of 4.7% and 3.6%, Agenus Stock price of $15.03 and $5.48. The fair value of the Upsize Option was determined using the binomial option pricing model under which we assessed and considered the possible upwards and downwards scenarios through the expiration date of the Upsize Option. See Note 7, Fair Value Measurements, for additional information on the Agenus Partnered Program derivative assets, Agenus Warrant, and Upsize Option . We accounted for the acquired BOT/BAL rights as a financial royalty asset which is currently put under the non-accrual method as management cannot reliably estimate future cash flows from this program. The amount of BOT/BAL financial royalty asset was determined as a residual value from the $75 million aggregate investment amount, less fair value of all acquired derivative assets as of May 29, 2024.

Sale of Pelican Business and In

Sale of Pelican Business and Investment in Primrose Bio	9 Months Ended
	Sep. 30, 2024
Discontinued Operations and Disposal Groups [Abstract]
Sale of Pelican Business and Investment in Primrose Bio	Sale of Pelican Business and Investment in Primrose Bio On September 18, 2023, we entered into a merger agreement, pursuant to which our subsidiary, Pelican Technology Holdings, Inc. (“Pelican”) became a wholly owned subsidiary of Primrose Bio. Primrose Bio is a private company focused on synthetic biology. Pelican has developed technology related to PET (protein expression technology) and PelicCRM197 (vaccine material), and has property and equipment, as well as leased property in San Diego, CA. As part of the transaction, we received 2,146,957 common shares, 4,278,293 preferred shares and 474,746 restricted shares of Primrose Bio. Simultaneous with the merger, we entered into a purchase and sale agreement with Primrose Bio and contributed $15 million in exchange for 50% of potential development milestones and certain commercial milestones from two contracts previously entered into by Primordial Genetics. In addition, starting January 1, 2025, we will receive 25% of sales revenue of PeliCRM197 above $3 million and 35% of all PeliCRM197 licensing revenue in perpetuity. We retained contractual relationships utilizing the Pelican Expression Technology, including the commercial royalty rights to Jazz’s Rylaze, Merck’s Vaxneuvance and V116 vaccines, Alvogen’s Teriparatide, Serum Institute of India’s vaccine programs, including Pneumosil and MenFive vaccines, among others. We determined that the sale of Pelican meets the definition of a deconsolidation of a business. Net assets sold together with allocated goodwill and cash consideration paid were as follows (in thousands): Property and equipment, net $ 8,250 Intangible assets 19,895 Other assets 717 Operating lease right-of-use assets 8,693 Finance lease right-of-use assets 20 Accrued liabilities (630) Deferred revenue (495) Long-term operating lease liabilities (8,445) Other liabilities (74) Net assets sold 27,931 Allocated goodwill 4,132 Cash consideration paid 15,000 $ 47,063 Fair value of the consideration received includes the following (in thousands): Equity method investment $ 13,706 Equity securities 32,278 Derivative assets 3,200 $ 49,184 Goodwill allocated to the selling business based on the relative fair value of the Pelican business and Ligand that was written off was $4.1 million, resulting in a $2.1 million gain on sale of Pelican recorded to income (loss) from operations for the three and nine months ended September 30, 2023. Transaction costs of $1.2 million were allocated to the equity method investment and equity securities based on the relative fair value. As described above, we will receive 25% of sales revenue of PeliCRM197 above $3 million and 35% of all PeliCRM197 licensing revenue in perpetuity. The considerations are under the loss recovery model and they will be measured based on the gain contingency model under ASC 450, Contingencies , and thus, will be recognized as the underlying contingencies are resolved. In addition, we will receive 50% of potential development milestones and certain commercial milestones from two contracts previously entered into by Primordial Genetics. The considerations were recognized as derivative assets with a fair value of $3.2 million, at the disposition date, which was included in noncurrent derivative assets in our condensed consolidated balance sheet. They are recognized as derivative assets under ASC 815, Derivatives and Hedging , as they have two underlyings (development and commercial milestones) and (i) the commercial milestones are dependent on the development milestones and (ii) the commercial milestone underlying is not determined to be predominate. The derivative assets were recorded at fair value as of September 18, 2023, and will be marketed to fair value at each reporting period going forward. During the three and nine months ended September 30, 2024, a loss of $0.6 million was recorded to market the derivative assets to fair value and was included in fair value adjustments to partner program derivatives in our condensed consolidated statement of operations. For additional information, see Note 7, Fair Value Measurements . Investments in Primrose Bio We account for our common stock investment in Primrose Bio under the equity method as we have the ability to exercise significant influence over Primrose Bio's operating and financial results. In applying the equity method, we record the investment at fair value. Our proportionate share of net loss of Primrose Bio is recorded in our condensed consolidated statements of operations. Our equity method investments are reviewed for indicators of impairment at each reporting period and are written down to fair value if there is evidence of a loss in value that is other-than-temporary. In June 2024, Primrose Bio received an equity investment from an equity firm. In July 2024, Primrose Bio raised additional funds from another equity firm. As a result, we recognized an impairment loss on our equity method investment in the amount of $5.8 million during the nine months ended September 30, 2024. There was no impairment to our equity method investment during the three months ended September 30, 2024. Our share of the net loss of Primrose Bio for the three and nine months ended September 30, 2024 was $1.2 million and $5.8 million, respectively, which reduced Ligand's equity method investment accordingly. Any income or loss from our equity method investments (including the impairment) is presented in other non-operating income (expense) in our condensed consolidated statement of operations. We determined that the Series A preferred stock and reserve stock investment in Primrose Bio did not have a readily determinable fair value and therefore elected the measurement alternative in ASC 321 to subsequently record the investment at cost, less any impairments, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer. When fair value becomes determinable, from observable price changes in orderly transactions, our investment will be marked to fair value. Our investment in Series A preferred stock and reserve stock has been reduced by $0.03 million and $25.79 million during the three and nine months ended September 30, 2024 in connection with the above mentioned equity funding received by Primrose Bio in June and July 2024. Former President and Chief Operating Officer Matt Korenberg served as a board member of Primrose Bio beginning in Q4 2023. His employment with Ligand concluded in October 2024, after which Lauren Hay, Vice President of Strategic Planning & Investment Analytics, succeeded him as a board member of Primrose Bio. On March 23, 2022, we entered into the Separation Agreement to separate our OmniAb Business and the Merger Agreement, pursuant to which APAC would combine with OmniAb, and acquire Ligand's OmniAb Business, in a Reverse Morris Trust transaction (collectively, the “Transactions”). After the closing date of the Transactions on November 1, 2022, the historical financial results of OmniAb have been reflected in our consolidated financial statements as discontinued operations under GAAP for all periods presented through the date of the Distribution. Pursuant to the Transaction Agreements, Ligand contributed to OmniAb cash and certain specific assets and liabilities constituting the OmniAb Business. Pursuant to the Distribution, Ligand distributed on a pro rata basis to its shareholders as of October 26, 2022 shares of the common stock of OmniAb representing 100% of Ligand’s interest in OmniAb. Immediately following the Distribution, Merger Sub merged with and into OmniAb, with OmniAb continuing as the surviving company in the merger and as a wholly owned subsidiary of New OmniAb. The entire transaction was completed on November 1, 2022, and following the merger, New OmniAb is an independent, publicly traded company whose common stock trades on Nasdaq under the symbol “OABI.” After the Distribution, we do not beneficially own any shares of common stock in OmniAb and no longer consolidate OmniAb into our financial results for periods ending after November 1, 2022. Discontinued operations

Acquisitions

Acquisitions	9 Months Ended
	Sep. 30, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]
Acquisitions	Acquisitions Apeiron On July 15, 2024, we acquired all the outstanding shares of Biologics AG (“Apeiron”), including the royalty rights to QARZIBA® (dinutuximab beta) for the treatment of high-risk neuroblastoma (the “Apeiron Acquisition”) for $100.5 million base consideration. We funded the Apeiron Acquisition from our available cash on hand. In addition to base consideration, we would also pay Apeiron shareholders an additional consideration based on future commercial and regulatory events, including up to $28.0 million if QARZIBA royalties exceed certain predetermined thresholds by either 2030 or 2034, and pay additional earn-outs on specific future events, primarily related to QARZIBA regulatory approval and commercialization in the USA. We evaluated this acquisition in accordance with ASC 805, Business Combinations , to discern whether the assets and operations of Apeiron met the definition of a business. We accounted for this transaction as an asset acquisition. We incurred $4.9 million of transaction costs related to the Apeiron Acquisition, which were included in the amount of total purchase consideration. Financial assets acquired and liabilities assumed in the Apeiron Acquisition were recognized at their fair values. The remaining assets acquired were recognized on a relative fair value basis. The amount of purchase consideration was allocated to the acquisition date fair values of acquired assets and assumed liabilities as follows (in thousands): Cash and cash equivalents $ 13,437 Contract assets (financial royalty assets) 106,156 Other assets 8,965 Accounts payable and accrued liabilities (3,740) Income tax payable (1,276) Deferred tax liabilities, net (18,109) Total fair value of net assets acquired $ 105,433 Contract assets acquired are accounted for as a financial royalty asset, similar to loans receivable and are measured at amortized cost using the prospective effective interest method described in ASC 835-30. The acquired contracts assets include QARZIBA and other development phase contract assets. As QARZIBA is a commercial phase program, we are able to reasonably estimate future cash flows and, as such, we recognize income from QARZIBA financial royalty assets starting from the Apeiron Acquisition effective date, which is calculated by multiplying the carrying value of the financial royalty asset by the periodic effective interest rate. As described in Note 1, Basis of Presentation and Significant Accounting Policies , the effective interest rate is calculated by forecasting the expected cash flows to be received over the life of the asset relative to the initial invested amount. The effective interest rate is recalculated in each reporting period as the differences between expected cash flows and actual cash flows are realized and as there are changes to expected future cash flows. We account for other Apeiron development phase financial royalty assets on a non-accrual basis as there is a higher level of uncertainty over the related expected cash flows. For tax purposes this transaction is treated as a stock purchase. As a result, we will not obtain a tax stepped-up basis in Apeiron’s underlying assets and will assume the carryover tax basis. As part of the tax purchase price accounting, deferred tax liabilities of $18.1 million have been recorded to reflect the difference between the book and tax basis of the acquired assets. We account for the earnout liabilities in the Apeiron Acquisition in accordance with ASC450, Contingencies , and will recognize respective liability when the contingency is resolved, and the liability becomes payable. No earnout liability is recognized as of the acquisition date, and as of September 30, 2024. In conjunction with the Apeiron Acquisition, we have also invested $4.2 million (including $0.2 million transaction costs) in InvIOs Holding AG ("InvIOs") common shares, a privately held spin-off of Apeiron. This investment was part of an €8 million (approximately $8.8 million) round with other investors which would help finance the research and development of three innovative early-stage immuno-oncology assets. Apeiron has previously outlicensed these assets to InvIOs and is entitled to future royalties and milestone payments. As the result of this investment, we did not obtain control or significant influence in InvIOs. We determined that common stock of InvIOs did not have a readily determinable fair value and therefore elected the measurement alternative in ASC 321 to subsequently record the investment at cost, less any impairments, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer. When fair value becomes determinable, from observable price changes in orderly transactions, our investment will be marked to fair value. Novan On September 27, 2023, we closed the transaction to acquire certain assets of Novan, Inc. (“Novan”) pursuant to the agreement we entered into with Novan on July 17, 2023 for $15.0 million in cash (which agreement contemplated Novan filing for bankruptcy relief) and provide up to $15.0 million in debtor-in-possession (“DIP”) financing inclusive of a $3.0 million bridge loan funded on the same day. Novan filed for Chapter 11 reorganization on July 17, 2023. On September 27, 2023, the bankruptcy court approved our $12.2 million bid to purchase from Novan its lead product candidate berdazimer gel, 10.3%, all other assets related to the NITRICIL technology platform and the rights to one commercial stage asset. The remaining commercial assets of Novan were to be sold to other parties pursuant to the bankruptcy court's order. The approved $12.2 million bid was credited to the $15.0 million DIP financing, with the balance of $2.8 million and accrued interest repaid to us. The Novan acquisition was accounted for as a business combination. We recorded $3.1 million of acquisition-related costs for legal, due diligence and other costs in connection with the acquisition within operating expenses in our condensed consolidated statement of operations for the year ended December 31, 2023. We have finalized purchase accounting for the Novan acquisition. The following table sets forth an allocation of the purchase price to the identifiable tangible and intangible assets acquired and liabilities assumed, with the excess recorded to goodwill (in thousands): Restricted cash $ 583 Property and equipment, net 13,054 Operating lease right-of-use asset 3,683 Other assets 137 Deferred tax asset 1,013 Intangible assets acquired 10,700 Goodwill 3,709 Deferred revenue (4,508) Operating lease liabilities (3,683) Other liabilities (13,700) Cash paid for Novan, including restricted cash received 10,988 DIP loan fees and interest 1,162 Total consideration $ 12,150 None of the goodwill is deductible for tax purposes. Acquired intangible assets of $10.7 million are related to core technology. The fair value of the core technology was based on the discounted cash flow method that estimated the present value of the potential royalties, milestones, and collaboration revenue streams derived from the licensing of the related technologies. These projected cash flows were discounted to present value using a discount rate of 29%. The fair value of the core technology is being amortized on a straight-line basis over the estimated useful life of 15 years. Acquired other liabilities of $13.7 million were related to a royalty and milestone payments purchase agreement, entered by Novan in 2019 and assumed as part of the acquisition, which previously provided Novan $25.0 million of funding used primarily in the clinical development of berdazimer gel, 10.3%. Pursuant to the purchase agreement, Novan will pay ongoing quarterly payments, calculated based on an applicable percentage per product of any upfront fees, milestone payments, royalty payments or equivalent payments received by Novan pursuant to any out-license agreement, net of any upfront fees, milestone payments, royalty payments or equivalent payments paid by Novan to third parties pursuant to any agreements under which Novan has in-licensed intellectual property with respect to such products. If Novan decides to commercialize any product on its own following regulatory approval, as opposed to commercializing through an out-license agreement or other third-party arrangement, Novan will be obligated to pay a low single digits royalty on net sales of such products. This contract liability was fair valued based on the discounted cash flow method that estimated the present value of the potential royalties, milestones, and collaboration revenue streams derived from the related programs mentioned above, by applying a discount rate of 14% (revenue risk-adjusted discount rate). On April 3, 2024, we announced the creation of Pelthos Therapeutics to focus on the commercialization of innovative, safe, and efficacious therapeutic products for patients suffering from conditions with limited treatment options. ZELSUVMI (berdazimer topical gel, 10.3%), its first product, is the FDA-approved prescription medicine for the treatment of the highly transmissible molluscum contagiosum (molluscum) viral skin infection in adults and pediatric patients one year of age and older. ZELSUVMI received a Novel Drug designation from the FDA in January 2024 to treat molluscum viral skin infection. ZELSUVMI was developed using Pelthos' proprietary nitric oxide-based NITRICIL™ technology platform. The rights to ZELSUVMI and all assets related to the NITRICIL technology platform were acquired from Novan in September 2023 in the Novan acquisition described above.

Spin-off of OmniAb

Spin-off of OmniAb	9 Months Ended
	Sep. 30, 2024
Discontinued Operations and Disposal Groups [Abstract]
Spin-off of OmniAb	Sale of Pelican Business and Investment in Primrose Bio On September 18, 2023, we entered into a merger agreement, pursuant to which our subsidiary, Pelican Technology Holdings, Inc. (“Pelican”) became a wholly owned subsidiary of Primrose Bio. Primrose Bio is a private company focused on synthetic biology. Pelican has developed technology related to PET (protein expression technology) and PelicCRM197 (vaccine material), and has property and equipment, as well as leased property in San Diego, CA. As part of the transaction, we received 2,146,957 common shares, 4,278,293 preferred shares and 474,746 restricted shares of Primrose Bio. Simultaneous with the merger, we entered into a purchase and sale agreement with Primrose Bio and contributed $15 million in exchange for 50% of potential development milestones and certain commercial milestones from two contracts previously entered into by Primordial Genetics. In addition, starting January 1, 2025, we will receive 25% of sales revenue of PeliCRM197 above $3 million and 35% of all PeliCRM197 licensing revenue in perpetuity. We retained contractual relationships utilizing the Pelican Expression Technology, including the commercial royalty rights to Jazz’s Rylaze, Merck’s Vaxneuvance and V116 vaccines, Alvogen’s Teriparatide, Serum Institute of India’s vaccine programs, including Pneumosil and MenFive vaccines, among others. We determined that the sale of Pelican meets the definition of a deconsolidation of a business. Net assets sold together with allocated goodwill and cash consideration paid were as follows (in thousands): Property and equipment, net $ 8,250 Intangible assets 19,895 Other assets 717 Operating lease right-of-use assets 8,693 Finance lease right-of-use assets 20 Accrued liabilities (630) Deferred revenue (495) Long-term operating lease liabilities (8,445) Other liabilities (74) Net assets sold 27,931 Allocated goodwill 4,132 Cash consideration paid 15,000 $ 47,063 Fair value of the consideration received includes the following (in thousands): Equity method investment $ 13,706 Equity securities 32,278 Derivative assets 3,200 $ 49,184 Goodwill allocated to the selling business based on the relative fair value of the Pelican business and Ligand that was written off was $4.1 million, resulting in a $2.1 million gain on sale of Pelican recorded to income (loss) from operations for the three and nine months ended September 30, 2023. Transaction costs of $1.2 million were allocated to the equity method investment and equity securities based on the relative fair value. As described above, we will receive 25% of sales revenue of PeliCRM197 above $3 million and 35% of all PeliCRM197 licensing revenue in perpetuity. The considerations are under the loss recovery model and they will be measured based on the gain contingency model under ASC 450, Contingencies , and thus, will be recognized as the underlying contingencies are resolved. In addition, we will receive 50% of potential development milestones and certain commercial milestones from two contracts previously entered into by Primordial Genetics. The considerations were recognized as derivative assets with a fair value of $3.2 million, at the disposition date, which was included in noncurrent derivative assets in our condensed consolidated balance sheet. They are recognized as derivative assets under ASC 815, Derivatives and Hedging , as they have two underlyings (development and commercial milestones) and (i) the commercial milestones are dependent on the development milestones and (ii) the commercial milestone underlying is not determined to be predominate. The derivative assets were recorded at fair value as of September 18, 2023, and will be marketed to fair value at each reporting period going forward. During the three and nine months ended September 30, 2024, a loss of $0.6 million was recorded to market the derivative assets to fair value and was included in fair value adjustments to partner program derivatives in our condensed consolidated statement of operations. For additional information, see Note 7, Fair Value Measurements . Investments in Primrose Bio We account for our common stock investment in Primrose Bio under the equity method as we have the ability to exercise significant influence over Primrose Bio's operating and financial results. In applying the equity method, we record the investment at fair value. Our proportionate share of net loss of Primrose Bio is recorded in our condensed consolidated statements of operations. Our equity method investments are reviewed for indicators of impairment at each reporting period and are written down to fair value if there is evidence of a loss in value that is other-than-temporary. In June 2024, Primrose Bio received an equity investment from an equity firm. In July 2024, Primrose Bio raised additional funds from another equity firm. As a result, we recognized an impairment loss on our equity method investment in the amount of $5.8 million during the nine months ended September 30, 2024. There was no impairment to our equity method investment during the three months ended September 30, 2024. Our share of the net loss of Primrose Bio for the three and nine months ended September 30, 2024 was $1.2 million and $5.8 million, respectively, which reduced Ligand's equity method investment accordingly. Any income or loss from our equity method investments (including the impairment) is presented in other non-operating income (expense) in our condensed consolidated statement of operations. We determined that the Series A preferred stock and reserve stock investment in Primrose Bio did not have a readily determinable fair value and therefore elected the measurement alternative in ASC 321 to subsequently record the investment at cost, less any impairments, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer. When fair value becomes determinable, from observable price changes in orderly transactions, our investment will be marked to fair value. Our investment in Series A preferred stock and reserve stock has been reduced by $0.03 million and $25.79 million during the three and nine months ended September 30, 2024 in connection with the above mentioned equity funding received by Primrose Bio in June and July 2024. Former President and Chief Operating Officer Matt Korenberg served as a board member of Primrose Bio beginning in Q4 2023. His employment with Ligand concluded in October 2024, after which Lauren Hay, Vice President of Strategic Planning & Investment Analytics, succeeded him as a board member of Primrose Bio. On March 23, 2022, we entered into the Separation Agreement to separate our OmniAb Business and the Merger Agreement, pursuant to which APAC would combine with OmniAb, and acquire Ligand's OmniAb Business, in a Reverse Morris Trust transaction (collectively, the “Transactions”). After the closing date of the Transactions on November 1, 2022, the historical financial results of OmniAb have been reflected in our consolidated financial statements as discontinued operations under GAAP for all periods presented through the date of the Distribution. Pursuant to the Transaction Agreements, Ligand contributed to OmniAb cash and certain specific assets and liabilities constituting the OmniAb Business. Pursuant to the Distribution, Ligand distributed on a pro rata basis to its shareholders as of October 26, 2022 shares of the common stock of OmniAb representing 100% of Ligand’s interest in OmniAb. Immediately following the Distribution, Merger Sub merged with and into OmniAb, with OmniAb continuing as the surviving company in the merger and as a wholly owned subsidiary of New OmniAb. The entire transaction was completed on November 1, 2022, and following the merger, New OmniAb is an independent, publicly traded company whose common stock trades on Nasdaq under the symbol “OABI.” After the Distribution, we do not beneficially own any shares of common stock in OmniAb and no longer consolidate OmniAb into our financial results for periods ending after November 1, 2022. Discontinued operations

Financial Royalty Assets, net (

Financial Royalty Assets, net (formerly known as Commercial License Rights)	9 Months Ended
	Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Financial Royalty Assets, net (formerly known as Commercial License Rights)	Financial Royalty Assets, net (formerly known as Commercial License Rights) Financial royalty assets consist of the following (in thousands): September 30, 2024 December 31, 2023 Gross carrying value (2) Allowance (1) Net carrying value (2) Gross carrying value Allowance (1) Net carrying value Apeiron $ 113,371 $ (735) $ 112,636 $ — $ — $ — Agenus (Bot/Bal) 40,815 (408) 40,407 — — — Elutia (CorMatrix) 10,032 (2,607) 7,425 13,304 (7,490) 5,814 Selexis 242 (58) 184 940 (179) 761 Ovid (Soticlestat) 4,122 (41) 4,081 30,310 (303) 30,007 Tolerance Therapeutics (TZIELD) 25,698 (101) 25,597 25,810 (101) 25,709 Ensifentrine inventors 16,018 (481) 15,537 — — — Total financial royalty assets, net $ 210,298 $ (4,431) $ 205,867 $ 70,364 $ (8,073) $ 62,291 (1) The amounts of allowance include cumulated allowance for changes in expected cash flows and cumulated allowance for current expected credit losses. (2) The amounts include $6.6 million current portion of financial royalty assets which represents an estimation for current quarter royalty receipts that are collected during the subsequent quarter. This portion is presented in other current assets on our condensed consolidated balance sheet as of September 30, 2024. Financial royalty assets represent a portfolio of future milestone and royalty payment rights acquired in the Apeiron Acquistion in July 2024, from Agenus in May 2024, Selexis, S.A. (“Selexis”) in April 2013 and May 2015, CorMatrix Cardiovascular, Inc. (“CorMatrix”) in May 2016, which was later acquired by Aziyo (Aziyo changed its corporate name to Elutia Inc. (“Elutia”) in September 2023) in 2017, Ovid Therapeutics Inc. (“Ovid”) in October 2023, Tolerance Therapeutics, Inc. (“Tolerance Therapeutics”) in November 2023, and from certain ensifentrine inventors in March and August 2024. During the nine months ended September 30, 2024, we recorded a $26.2 million impairment loss for Ovid (Soticlestat) financial royalty asset and a $0.3 million impairment loss for Selexis financial royalty asset. There was no impairment loss for the three months ended September 30, 2024. During the three and nine months ended September 30, 2023, we recorded a $0.9 million impairment loss for Selexis financial royalty asset as a result of reduced programs. Apeiron financial royalty assets As discussed in Note 4, Acquisitions , we acquired certain financial royalty assets within the Apeiron Acquisition, including QARZIBA and certain InvIOs programs. As QARZIBA is a commercial phase program, we are able to reasonably estimate future cash flows and, as such, we recognized income from QARZIBA financial royalty assets starting from the Apeiron Acquisition effective date. We accounted for the InvIOs financial royalty assets using the non-accrual method until we are able to reliably estimate future cash flows. Elutia Agreement In 2016, Ligand entered into a purchase agreement to acquire certain financial royalty assets from CorMatrix. In 2017, CorMatrix sold its marketed products to Elutia where Elutia assumed the Ligand royalty obligation. In 2017, we amended the terms of the royalty agreement with Elutia where we received $10 million to buydown the royalty rates on the products CorMatrix sold to Elutia (the “CorMatrix Asset Sale”). Per the amended agreement with Elutia, we will receive a 5% royalty, with certain annual minimum payments, on the products Elutia acquired in the CorMatrix Asset Sale and up to $10 million of milestones tied to cumulative net sales of these products. The royalty agreement will terminate on May 31, 2027. During 2023, due to Elutia's nonpayment of the minimum payments under the amended royalty agreement over several quarters, we placed the Elutia asset on the non-accrual method. In January 2024, we executed an amendment to our agreement with Elutia which will allow us to reliably estimate future cash flows. As such, the Elutia asset was switched from the non-accrual method to the effective interest method during the first quarter of 2024. We further considered the current and expected future economic and market conditions, current company performance and recent payments received from Elutia. During the three and nine months ended September 30, 2024 we recorded a reduction of $0.3 million and $4.9 million, respectively, to Elutia allowance of expected credit loss. The credit loss adjustments were recorded as a gain in general and administrative expense in our condensed consolidated statement of operations for the three and nine months ended September 30, 2024. During the three and nine months ended September 30, 2023 we recorded an increase of $3.2 million to Elutia allowance of expected credit loss. Soticlestat Agreement In October 2023, we made an investment of $30 million to acquire a 13% portion of the royalties and milestones owed to Ovid Therapeutics related to the potential approval and commercialization of soticlestat. In June 2024, Takeda announced topline results of the phase 3 clinical trial of soticlestat, missing its primary endpoint to reduce convulsive seizure frequency compared to placebo in patients with Dravet syndrome, and missing its primary endpoint to reduce major Motor Drop seizure frequency compared to a placebo in patients with Lennox-Gastaut syndrome. As a result, in the nine months ended September 30, 2024, we recognized an impairment over the soticlestat financial royalty asset of $26.2 million. The fair value of the soticlestat financial royalty asset was determined using a discounted cash flow approach, utilizing the mostly-likely cash flows which considered the probability of success for the underlying clinical program and discount rate of 17% which contemplates the underlying credit and business risk of the partnered program. As of September 30, 2024, management continues to account for the soticlestat financial royalty asset using the non-accrual method until we are able to reliably estimate future cash flows. TZIELD Agreement In November 2023, we acquired Tolerance Therapeutics for $20 million in cash. Tolerance Therapeutics is a holding company, owned by the inventors of TZIELD (teplizumab), and is owed a royalty of less than 1% on worldwide net sales of TZIELD. TZIELD is marketed by Sanofi, starting in 2023. For tax purposes this transaction was treated as a stock deal, so there is no step-up in basis and tax attributes. Therefore, a deferred tax liability (DTL) of $5.5 million was recognized on the book basis and tax basis difference and recorded to the book value of the Tolerance financial royalty asset. Due to the early stages of TZIELD's commercialization, management has placed the investment on the non-accrual method until we are able to reliably estimate future cash flows. Ensifentrine Inventors Agreements In March and August 2024, we acquired future milestone and royalty rights related to ensifentrine from certain ensifentrine inventors for a total of $3.8 million and $13.6 million, respectively. On June 26, 2024, Verona Pharma plc (Nasdaq: VRNA) received FDA approval for ensifentrine for the maintenance treatment of patients with chronic obstructive pulmonary disease (“COPD”). During three months ended September 30, 2024, Verona started commercial sales of ensifentrine (marketed as Ohtuvayre TM ) in the U.S. Due to the early stages of Ohtuvayre's commercialization, management has placed the investment on the non-accrual method until we are able to reliably estimate future cash flows.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2024
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, 2024 December 31, 2023 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Short-term investments, excluding Viking (1) $ 19,575 $ 73,139 $ — $ 92,714 $ 7,291 $ 107,879 $ — $ 115,170 Investment in Viking common stock 63,310 — — 63,310 32,185 — — 32,185 Derivative assets (2) — — 30,379 30,379 — — 3,531 3,531 Total assets $ 82,885 $ 73,139 $ 30,379 $ 186,403 $ 39,476 $ 107,879 $ 3,531 $ 150,886 Liabilities: Contingent liabilities - CyDex $ — $ — $ 223 $ 223 $ — $ — $ 320 $ 320 Contingent liabilities - Metabasis (3) — 3,768 — 3,768 — 2,878 — 2,878 Total liabilities $ — $ 3,768 $ 223 $ 3,991 $ — $ 2,878 $ 320 $ 3,198 (1) Excluding our investment in Viking, corporate equity securities, and US government securities, 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 bond 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 had investment in warrants resulting from Seelos Therapeutics Inc. milestone payments that were settled in shares during the first quarter of 2019 and were at level 3 of the fair value hierarchy, based on Black-Scholes value estimated by management on the last day of the period. This investment in warrants expired in January 2024. (2) Derivative assets include instruments used for risk-management purposes, and other instruments. Derivative assets which are not used for risk management purposes include: (a) acquired rights in future milestone and royalty payments from Agenus Partnered Programs, (b) Agenus Warrant, (c) Upsize Option, (d) Viking Share Collar (e) and rights to receive from Primrose Bio 50% of milestones on two contracts previously entered into by Primordial Genetics. The considerations were recognized as derivative assets included under current derivative assets and noncurrent derivative assets in our condensed consolidated balance sheet. They are recognized as derivative assets under ASC 815, Derivatives and Hedging. The fair value of the Agenus Partnered Programs and the Primrose Bio derivative assets was determined using a discounted cash flow approach, utilizing the mostly-likely cash flows which considered the probability of success for the underlying clinical programs. The discount rate used contemplates the underlying credit and business risk of the partnered programs. At September 30, 2024, the discount rates used range between 15% and 25%. At December 31, 2023, the discount rate used was 25%. The fair value of the Agenus Warrant and Viking Share Collar was determined using a Black-Scholes-Merton model. The fair value of the Upsize Option was determined using a binomial option pricing model. (3) 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, 2024, we adjusted the balance of the Metabasis CVR liability by decreasing $0.2 million and increasing $0.9 million, respectively, to mark to market. During the three and nine months ended September 30, 2023, we adjusted the balance of the Metabasis CVR liability by decreasing $0.1 million and increasing $0.002 million, respectively, to mark to market. A reconciliation of the level 3 financial instruments as of September 30, 2024 is as follows (in thousands): Assets Fair value of level 3 financial instruments as of December 31, 2023 $ 3,531 Additions to derivative assets 34,185 Fair value adjustments to derivative assets (7,337) Fair value of level 3 financial instruments as of September 30, 2024 $ 30,379 Liabilities Fair value of level 3 financial instruments as of December 31, 2023 $ 320 Payments to CVR holders and other contingent payments (200) Fair value adjustments to contingent liabilities 103 Fair value of level 3 financial instruments as of September 30, 2024 $ 223 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, intangible assets with estimated useful lives and long-lived assets. We evaluate goodwill 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 evaluate intangible assets with estimated useful lives whenever circumstances occur indicating that intangible assets may not be recoverable An impairment evaluation is based on an undiscounted cash flow analysis at the lowest level at which cash flows of the long-lived assets are largely independent of other groups of assets and liabilities. There was no impairment of our goodwill, intangible assets, or long-lived assets recorded during the three and nine months ended September 30, 2024 and 2023. Fair Value of Financial Instruments Our cash and cash equivalents, accounts receivable, other current assets, financial royalty assets, accounts payable, accrued liabilities, deferred revenue, current operating lease liabilities, current finance lease liabilities and Novan (Pelthos) other long-term liabilities are financial instruments and are recorded at cost in the consolidated balance sheets. The estimated fair value of these financial instruments approximates their carrying value.

Debt

Debt	9 Months Ended
	Sep. 30, 2024
Debt Disclosure [Abstract]
Debt	Debt Revolving Credit Facility On October 12, 2023, we entered into a $75 million revolving credit facility (the “Revolving Credit Facility”) with Citibank, N.A. as the Administrative Agent (as defined in the Credit Agreement). We, our material domestic subsidiaries, as Guarantors (as defined in the Credit Agreement), and the Lenders (as defined in the Credit Agreement) entered into a credit agreement (the “Credit Agreement”) with the Administrative Agent, under which the Lenders, the Swingline Lender and the L/C Issuer (each as defined in the Credit Agreement) agreed to make revolving loans, swingline loans and other financial accommodations to us (including the issuance of letters of credit) in an aggregate amount of up to $75 million. Borrowings under the Revolving Credit Facility accrue interest at a rate equal to either Term Secured Overnight Financing Rate (“Term SOFR”) or a specified base rate plus an applicable margin linked to our leverage ratio, ranging from 1.75% to 2.50% per annum for Term SOFR loans and 0.75% to 1.50% per annum for base rate loans. The Revolving Credit Facility is subject to a commitment fee payable on the unused Revolving Credit Facility commitments ranging from 0.30% to 0.45%, depending on our leverage ratio. During the term of the Revolving Credit Facility, we may borrow, repay and re-borrow amounts available under the Revolving Credit Facility, subject to voluntary reductions of the swing line, letter of credit and revolving credit commitments. Borrowings under the Revolving Credit Facility are secured by certain of our collateral and that of the Guarantors. In specified circumstances, additional guarantors are required to be added to the Credit Agreement. The Credit Agreement contains customary affirmative and negative covenants, including certain financial maintenance covenants, and events of default applicable to us. In the event of violation of the representations, warranties and covenants made in the Credit Agreement, we may not be able to utilize the Revolving Credit Facility or repayment of amounts owed thereunder could be accelerated. Amendment to Revolving Credit Facility On July 8, 2024, we entered into the first amendment (the “Amendment”) to the Credit Agreement, which amends the Credit Agreement to, among other things, increase the aggregate revolving credit facility amount from $75 million to $125 million. As of September 30, 2024, we had $124.4 million in available borrowing under the Revolving Credit Facility, after utilizing $0.6 million for letter of credit. The maturity date of the Revolving Credit Facility, as amended, is October 12, 2026. As of September 30, 2024, there were no events of default or violation of any covenants under our financing obligations.

Income Tax

Income Tax	9 Months Ended
	Sep. 30, 2024
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 foreign and state jurisdictions with different statutory rates, the use of previously unbenefited tax loss carryforwards to reduce foreign taxes, benefits related to tax credits, and the tax impact of non-deductible expenses, stock award activities and other permanent differences between income before income taxes and taxable income. The effective tax rate for the three months ended September 30, 2024 and 2023 was (13.1)% and 15.4%, respectively, and the nine months ended September 30, 2024 and 2023 was 35.1% and 23.5%, respectively. The variance from the U.S. federal statutory tax rate of 21% for the three and nine months ended September 30, 2024 was primarily due to Internal Revenue Code Section 162(m) limitation on deduction for officer compensation, other non-deductible items, and income from foreign operations, which were partially offset by the foreign derived intangible income tax benefit. The variance from the U.S. federal statutory tax rate of 21% for the three and nine months ended September 30, 2023 was primarily due to Internal Revenue Code Section 162(m) limitation on deduction for officer compensation, non-deductible incentive stock option (ISO) related stock compensation expense, which were partially offset by foreign derived intangible income tax benefit during the period.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2024
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 10, Stockholders’ Equity , of the Notes to Consolidated Financial Statements in our 2023 Annual Report. In June 2024, our stockholders approved the amendment and restatement of the Ligand Pharmaceuticals Incorporated 2002 Stock Incentive Plan, which increased the shares available for issuance by 1.3 million. 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, 2023 2,640,458 $ 65.70 350,905 $ 81.22 Granted 743,117 $ 85.71 318,588 $ 85.23 Options exercised/RSUs vested (784,467) $ 59.07 (126,793) $ 85.55 Forfeited (57,161) $ 70.71 (42,870) $ 72.32 Balance as of September 30, 2024 2,541,947 $ 73.48 499,830 $ 83.44 As of September 30, 2024, outstanding options to purchase 1.4 million shares were exercisable with a weighted average exercise price per share of $70.27. 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, 2024, 26,244 shares were available for future purchases under the ESPP. 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 common stock having an aggregate offering price of up to $100 million in “at the market” offerings through the Agent (the “ATM Offering”). The Shelf Registration Statement included a prospectus covering the offering, issuance and sale of up to $100 million of our common stock from time to time through the ATM Offering. The shares to be sold under the Sales Agreement may be issued and sold pursuant to the Shelf Registration Statement. During the three and nine months ended September 30, 2024, we issued 334,325 shares of common stock in the ATM Offering, generating proceeds of $34.3 million, net of commissions and other transaction costs. Share Repurchases In April 2023, our Board of Directors (the “Board”) has approved a stock repurchase program authorizing, but not requiring, the repurchase of up to $50 million of our common stock from time to time through April 2026. We expect to acquire shares, if at all, primarily through open-market transactions in accordance with all applicable requirements of Rule 10b-18 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). 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. Authorization to repurchase $50 million of our common stock remained available as of September 30, 2024.

Commitment and Contingencies

Commitment and Contingencies	9 Months Ended
	Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitment and Contingencies	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 us and no individualized factual allegations have been advanced against us in any of the three filed complaints. We reject all claims raised in the complaints and intend to vigorously defend against these matters. 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 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. Operating Leases

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023
Pay vs Performance Disclosure
Net income (loss)	$ (7,172)	$ (51,911)	$ 86,139	$ (10,273)	$ 2,290	$ 41,949	$ 27,056	$ 33,966

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Sep. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Basis of Presentation and Sum_2

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business	Business We are a biopharmaceutical company enabling scientific advancement through supporting the clinical development of high-value medicines. We do this by providing financing, licensing our technologies or both. We operate in one reportable segment: development and licensing of biopharmaceutical assets.
Basis of Presentation	Basis of Presentation
Reclassification	Reclassification Certain reclassifications have been made to the previously issued audited consolidated financial statements to conform with the current period presentation. Specifically, within the consolidated balance sheet as of December 31, 2023, our commercial license and other economic rights line has been reclassified to long-term portion of financial royalty assets, net, and to other assets, and a portion of other investments has been reclassified from other assets. Moreover, noncurrent derivative assets as of December 31, 2023, have been reclassified from other assets. In addition, within the unaudited condensed consolidated statement of operations for the three and nine months ended September 30, 2023, royalties have been reclassified to revenue from intangible royalty assets, and a portion of the contract revenue has been reclassified to income from financial royalty assets.
Discontinued Operations	Discontinued Operations The Company determined that the spin-off of the OmniAb Business in November 2022 met the criteria for classification as a discontinued operation in accordance with ASC Subtopic 205-20, Discontinued Operations (“ASC 205-20”). Accordingly, the accompanying condensed consolidated financial statements have been updated to present the results of all discontinued operations reported as a separate component of loss in the condensed consolidated statements of operations and comprehensive loss (see Note 5, Spin-off of OmniAb ). All disclosures have been adjusted to reflect continuing operations.
Use of Estimates	Use of Estimates The preparation of unaudited condensed consolidated financial statements in conformity with GAAP requires the use of estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements and the accompanying notes. Actual results may differ from those estimates.
Revenue and Other Income	Revenue and Other Income Our revenue is generated primarily from royalties on sales of products commercialized by our partners, Captisol material sales, income from financial royalty assets, and contract revenue for license fees, technical, regulatory and sales-based milestone payments. Other operating income is primarily related to milestone income received for financial royalty assets that have been fully amortized or where there is no underlying asset recognized on the consolidated balance sheets. 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. Revenue from Intangible Royalty Assets We receive royalty revenue from intangible royalty assets 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 when 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. Income from Financial Royalty Assets Effective January 1, 2024, we introduced a new line item “income from financial royalty assets”, which was included in “contract revenue” in prior periods. Accordingly, the prior year period amounts have been reclassified to align with the current period presentation. We recognize income from financial royalty assets when there is a reasonable expectation about the timing and amount of cash flows expected to be collected. Income is calculated by multiplying the carrying value of the financial royalty asset by the periodic effective interest rate. We account for financial royalty assets related to developmental pipeline or recently commercialized products on a non-accrual basis. Developmental pipeline products are non-commercialized, non-approved products that require FDA or other regulatory approval, and thus have uncertain cash flows. Newly commercialized products typically do not have an established reliable sales pattern, and thus have uncertain cash flows. 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 and Other Income 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. 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. Other income is primarily related to milestone income received for financial royalty assets that have been fully amortized or where there is no underlying asset recognized on the consolidated balance sheets. Deferred Revenue
Short-term Investments	Short-term Investments 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, 2024 and 2023.
Accounts Receivable and Allowance for Credit Losses	Accounts Receivable and Allowance for Credit Losses
Inventory	Inventory Inventory, which consists of finished goods (Captisol), is stated at the lower of cost or net realizable value. We determine cost using the specific identification method.
Financial Royalty Assets, net (formerly known as Commercial License Rights)	Financial Royalty Assets, net (formerly known as Commercial License Rights) Financial royalty assets represent a portfolio of future milestone and royalty payment rights acquired that are passive in nature (i.e., we do not own the intellectual property or have the right to commercialize the underlying products). Although a financial royalty asset does not have the contractual terms typical of a loan (such as contractual principal and interest), we account for financial royalty assets under ASC 310, Receivables . Our financial royalty assets are classified similar to loans receivable and are measured at amortized cost using the prospective effective interest method described in ASC 835-30 Imputation of Interest . The effective interest rate is calculated by forecasting the expected cash flows to be received over the life of the asset relative to the initial invested amount. The effective interest rate is recalculated in each reporting period as the difference between expected cash flows and actual cash flows are realized and as there are changes to expected future cash flows. The gross carrying value of a financial royalty asset is made up of the opening balance, or net purchase price for a new financial royalty asset, which is increased by accrued interest income (except for assets under the non-accrual method) and decreased by cash receipts in the period to arrive at the ending balance. We evaluate financial royalty assets for recoverability on an individual basis by comparing the effective interest rate at each reporting date to that of the prior period. If the effective interest rate is lower for the current period than the prior period, and if the gross cash flows have declined (expected and collected), we record provision expense for the change in expected cash flows. The provision is measured as the difference between the financial royalty asset’s amortized cost basis and the net present value of the expected future cash flows, calculated using the prior period’s effective interest rate. In addition to the above allowance, we recognize an allowance for current expected credit losses under ASC 326, Financial Instruments – Credit Losses on our financial royalty assets. The credit rating, which is primarily based on publicly available data and updated quarterly, is the primary credit quality indicator used to determine the credit loss provision. The carrying value of financial royalty assets is presented net of the cumulative allowance for changes in expected future cash flows and expected credit losses. The initial amount and subsequent revisions in allowances for changes in expected future cash flows and expected credit losses are recorded as part of general and administrative expenses on the condensed consolidated statements of operations. When we are reasonably certain that a part of a financial royalty asset’s net carrying value (or all of it) is not recoverable, we recognize a permanent impairment which is recorded in a financial royalty asset impairment on the condensed consolidated statements of operations. To the extent there was an allowance previously recorded for this asset, the amount of such impairment is written off against the allowance at the time that such a determination is made. Any future recoveries from such impairment are recognized when cash is collected in a respective period earnings. The current portion of financial royalty assets represents an estimation for current quarter royalty receipts which are collected during the subsequent quarter. This portion is presented in other current assets on our consolidated balance sheets, net of the allowance for expected credit losses.
Derivative Assets	Derivative Assets Derivative assets include instruments used for risk-management purposes, and other instruments. Derivative assets which are not used for risk management purposes, include: (a) acquired rights in future milestone and royalty payments from Agenus Partnered Programs (as defined below), (b) Agenus Warrant (as defined below), (c) option to invest up to $25 million to milestone and royalty rights which expires on June 30, 2025 ("Upsize Option"), and (d) rights to receive from Primrose Bio 50% of milestones on two contracts previously entered into by Primordial Genetics.
Equity Method Investment	Equity Method Investment Investments that we do not consolidate but in which we have significant influence over the operating and financial policies of the investee are classified as equity method investments and are accounted for using the equity method of accounting. In applying the equity method of accounting, investments are initially recorded at cost and are subsequently adjusted based on our proportionate share of net income or loss of the investee, net of any distributions received from the investee and any impairment.
Other Investments	Other Investments Other investments represent our investments in equity securities of third parties in which we do not have control or significant influence. Our equity securities investments do not have a readily determinable or estimable fair value and are measured using the measurement alternative, which is cost less impairment, if any, and adjustments resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer. The amount of such impairment or adjustment recognized during the period is presented in other non-operating income (expense) in our condensed consolidated statements of operations.
Share-Based Compensation	Share-Based Compensation
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.
Foreign Currency Translation	Foreign Currency Translation The Euro is the functional currency of Apeiron and the corresponding financial statements have been translated into U.S. Dollars in accordance with ASC 830-30, Translation of Financial Statements . Assets and liabilities are translated at end-of-period rates while revenues and expenses are translated at average rates in effect during the period in which the activity took place. Equity is translated at historical rates and the resulting cumulative translation adjustments are included as a component of accumulated other comprehensive income (loss).
Accounting Standards Not Yet Adopted	Accounting Standards Not Yet Adopted In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures . The update, among other things, requires disclosure of certain significant segment expenses. We will adopt the updated accounting guidance in our Annual Report on Form 10-K for the year ending December 31, 2024. We do not expect the adoption of the new accounting guidance will have a material impact to our consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . The update requires a public business entity to disclose, on an annual basis, a tabular rate reconciliation using both percentages and currency amounts, broken out into specified categories with certain reconciling items further broken out by nature and jurisdiction to the extent those items exceed a specified threshold. In addition, all entities are required to disclose income taxes paid, net of refunds received disaggregated by federal, state/local, and foreign and by jurisdiction if the amount is at least 5% of total income tax payments, net of refunds received. Adoption of the ASU allows for either the prospective or retrospective application of the amendment and is effective for annual periods beginning after December 15, 2024, with early adoption permitted. We have not yet completed the assessment of the impact of ASU 2023-09 on our consolidated financial statements. In November 2024, the FASB issued ASU No. 2024-03, Income Statement—Reporting Comprehensive Income (Subtopic 220-40): Expense Disaggregation Disclosures . This update requires entities to disaggregate operating expenses into specific categories, such as salaries and wages, depreciation, and amortization, to provide enhanced transparency into the nature and function of expenses. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, with early adoption permitted. ASU 2024-03 may be applied retrospectively or prospectively. We are currently evaluating the new guidance to determine the impact it may have on our consolidated financial statements and related disclosures. We do not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material impact on our consolidated financial statements or disclosures.

Basis of Presentation and Sum_3

Basis of Presentation and Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Revenue by Source	The following table represents disaggregation of royalties, Captisol and contract revenue and other income (in thousands): Three months ended Nine months ended September 30, September 30, 2024 2023 2024 2023 Royalties Kyprolis $ 11,599 $ 10,537 $ 27,229 $ 24,862 Evomela 1,747 2,497 5,877 7,404 Teriparatide injection 2,376 2,800 6,520 9,913 Rylaze 3,886 3,678 10,070 9,315 Filspari 3,206 1,122 7,402 1,707 Vaxneuvance 1,466 1,313 3,962 2,990 Other 2,272 1,916 6,452 5,256 Revenue from intangible royalty assets 26,552 23,863 67,512 61,447 Income from financial royalty assets 5,157 25 6,454 1,026 31,709 23,888 73,966 62,473 Captisol 6,255 8,608 22,967 24,450 Contract revenue and other income Milestone and other 13,848 372 25,444 16,290 Other income — — 1,944 — Contract revenue and other income 13,848 372 27,388 16,290 Total $ 51,812 $ 32,868 $ 124,321 $ 103,213
Schedule of Short-Term Investments	Our short-term investments consist of the following at September 30, 2024 and December 31, 2023 (in thousands): September 30, 2024 Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Bond fund $ 39,512 $ — $ (265) $ 39,247 U.S. government securities 19,051 31 — 19,082 Bank deposits 12,280 21 — 12,301 Corporate bonds 10,969 30 (3) 10,996 Commercial paper 10,591 5 (1) 10,595 Corporate equity securities 6,551 — (6,058) 493 $ 98,954 $ 87 $ (6,327) 92,714 Viking common stock 63,310 Total short-term investments $ 156,024 December 31, 2023 Bond fund $ 63,763 $ — $ (537) $ 63,226 Bank deposits 17,165 12 (1) 17,176 Corporate bonds 14,850 40 (2) 14,888 Commercial paper 11,578 9 (1) 11,586 U.S. government securities 6,736 18 (3) 6,751 Municipal bonds 1,007 — (4) 1,003 Corporate equity securities 5,775 — (5,235) 540 $ 120,874 $ 79 $ (5,783) 115,170 Viking common stock 32,185 Total short-term investments $ 147,355
Schedule of Available-for-Sale Debt Securities	The following table summarizes our available-for-sale debt securities by contractual maturity (in thousands): September 30, 2024 Amortized Cost Fair Value Within one year $ 91,072 $ 91,152 After one year through five years 4,647 4,655 Total $ 95,719 $ 95,807
Schedule of Goodwill and Other Identifiable Intangible Assets	Goodwill and other identifiable intangible assets consist of the following (in thousands): September 30, December 31, 2024 2023 Indefinite-lived intangible assets Goodwill $ 105,250 $ 103,370 Definite lived intangible assets Complete technology 39,249 42,911 Less: accumulated amortization (19,072) (20,894) Trade name 2,642 2,642 Less: accumulated amortization (1,810) (1,710) Customer relationships 29,600 29,600 Less: accumulated amortization (20,280) (19,161) Contractual relationships 360,000 360,000 Less: accumulated amortization (115,424) (93,782) Total goodwill and other identifiable intangible assets, net $ 380,155 $ 402,976
Schedule of Derivative Assets	Derivative assets consist of the following (in thousands): September 30, December 31, 2024 2023 Agenus Upsize Option (expires on 6/30/25) $ 3,815 $ — Viking shares collar 7,318 — Total current derivative assets $ 11,133 $ — Primrose mRNA $ 2,921 $ 3,531 Agenus Partner Programs 14,099 — Agenus Warrant (5 years contractual term) 2,226 — Total noncurrent derivative assets $ 19,246 $ 3,531
Schedule of Other Investment	Other investments consist of the following (in thousands): September 30, December 31, 2024 2023 Equity securities in Primrose Bio $ 6,712 $ 32,726 InvIOs investment 4,196 — Neuritek warrants — 3,000 Palvella Series C preferred stock 1,000 1,000 Total other investments $ 11,908 $ 36,726
Schedule of Inventory in Other Assets	inventory (raw materials and work in process related to the manufacturing of finished goods) for the preparation of commercial supplies of ZELSUVMI™ by Pelthos Therapeutics, a wholly owned subsidiary of Ligand. For additional information on ZELSUVMI, see Note 4, Acquisitions . Below is a summary of the inventory included in other current assets (in thousands): September 30, December 31, 2024 2023 Raw materials $ 2,495 $ 420 Work in process 260 195 Total Pelthos inventory in other current assets $ 2,755 $ 615
Schedule of Accrued Liabilities	Accrued liabilities consist of the following (in thousands): September 30, December 31, 2024 2023 Compensation $ 3,830 $ 4,682 Subcontractor 1,756 1,756 Professional fees 3,296 2,394 Customer deposit 621 621 Supplier 276 303 Royalties owed to third parties 2,989 900 Amounts owed to former licensees — 45 Other 2,832 1,766 Total accrued liabilities $ 15,600 $ 12,467
Schedule of Other Long Term Liabilities	Other long-term liabilities consist of the following (in thousands): September 30, December 31, 2024 2023 Unrecognized tax benefits $ 14,481 $ 14,039 Novan (Pelthos) contract liability 15,324 13,700 Other long-term liabilities 69 19 $ 29,874 $ 27,758
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, 2024 2023 2024 2023 SBC - Research and development expenses $ 982 $ 1,639 $ 2,588 $ 5,362 SBC - General and administrative expenses 14,189 5,245 30,977 14,660 $ 15,171 $ 6,884 $ 33,565 $ 20,022
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, 2024 2023 2024 2023 Risk-free interest rate 4.4% 4.3% 4.3% 4.1% Dividend yield — — — — Expected volatility 44.7% 44.7% 44.7% 51.5% Expected term (years) 4.7 5.2 4.7 5.3
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, 2024 2023 2024 2023 Weighted average shares outstanding: 18,419 17,380 18,061 17,241 Dilutive potential common shares: Restricted stock — — 173 82 Stock options — — 340 302 2023 Notes — — — 159 Shares used to compute diluted income (loss) per share 18,419 17,380 18,574 17,784 Potentially dilutive shares excluded from calculation due to anti-dilutive effect 1,099 4,762 1,815 4,663

Sale of Pelican Business and _2

Sale of Pelican Business and Investment in Primrose Bio (Tables)	9 Months Ended
	Sep. 30, 2024
Discontinued Operations and Disposal Groups [Abstract]
Schedule of Carrying Amounts of Major Classes of Assets and Liabilities Related to Assets Held for Sale	We determined that the sale of Pelican meets the definition of a deconsolidation of a business. Net assets sold together with allocated goodwill and cash consideration paid were as follows (in thousands): Property and equipment, net $ 8,250 Intangible assets 19,895 Other assets 717 Operating lease right-of-use assets 8,693 Finance lease right-of-use assets 20 Accrued liabilities (630) Deferred revenue (495) Long-term operating lease liabilities (8,445) Other liabilities (74) Net assets sold 27,931 Allocated goodwill 4,132 Cash consideration paid 15,000 $ 47,063
Schedule of Fair Value of the Consideration	Fair value of the consideration received includes the following (in thousands): Equity method investment $ 13,706 Equity securities 32,278 Derivative assets 3,200 $ 49,184

Acquisitions (Tables)

Acquisitions (Tables)	9 Months Ended
	Sep. 30, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	The amount of purchase consideration was allocated to the acquisition date fair values of acquired assets and assumed liabilities as follows (in thousands): Cash and cash equivalents $ 13,437 Contract assets (financial royalty assets) 106,156 Other assets 8,965 Accounts payable and accrued liabilities (3,740) Income tax payable (1,276) Deferred tax liabilities, net (18,109) Total fair value of net assets acquired $ 105,433 Restricted cash $ 583 Property and equipment, net 13,054 Operating lease right-of-use asset 3,683 Other assets 137 Deferred tax asset 1,013 Intangible assets acquired 10,700 Goodwill 3,709 Deferred revenue (4,508) Operating lease liabilities (3,683) Other liabilities (13,700) Cash paid for Novan, including restricted cash received 10,988 DIP loan fees and interest 1,162 Total consideration $ 12,150

Financial Royalty Assets, net_2

Financial Royalty Assets, net (formerly known as Commercial License Rights) (Tables)	9 Months Ended
	Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Financial Royalty Assets	Financial royalty assets consist of the following (in thousands): September 30, 2024 December 31, 2023 Gross carrying value (2) Allowance (1) Net carrying value (2) Gross carrying value Allowance (1) Net carrying value Apeiron $ 113,371 $ (735) $ 112,636 $ — $ — $ — Agenus (Bot/Bal) 40,815 (408) 40,407 — — — Elutia (CorMatrix) 10,032 (2,607) 7,425 13,304 (7,490) 5,814 Selexis 242 (58) 184 940 (179) 761 Ovid (Soticlestat) 4,122 (41) 4,081 30,310 (303) 30,007 Tolerance Therapeutics (TZIELD) 25,698 (101) 25,597 25,810 (101) 25,709 Ensifentrine inventors 16,018 (481) 15,537 — — — Total financial royalty assets, net $ 210,298 $ (4,431) $ 205,867 $ 70,364 $ (8,073) $ 62,291 (1) The amounts of allowance include cumulated allowance for changes in expected cash flows and cumulated allowance for current expected credit losses. (2) The amounts include $6.6 million current portion of financial royalty assets which represents an estimation for current quarter royalty receipts that are collected during the subsequent quarter. This portion is presented in other current assets on our condensed consolidated balance sheet as of September 30, 2024.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2024
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, 2024 December 31, 2023 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Short-term investments, excluding Viking (1) $ 19,575 $ 73,139 $ — $ 92,714 $ 7,291 $ 107,879 $ — $ 115,170 Investment in Viking common stock 63,310 — — 63,310 32,185 — — 32,185 Derivative assets (2) — — 30,379 30,379 — — 3,531 3,531 Total assets $ 82,885 $ 73,139 $ 30,379 $ 186,403 $ 39,476 $ 107,879 $ 3,531 $ 150,886 Liabilities: Contingent liabilities - CyDex $ — $ — $ 223 $ 223 $ — $ — $ 320 $ 320 Contingent liabilities - Metabasis (3) — 3,768 — 3,768 — 2,878 — 2,878 Total liabilities $ — $ 3,768 $ 223 $ 3,991 $ — $ 2,878 $ 320 $ 3,198 (1) Excluding our investment in Viking, corporate equity securities, and US government securities, 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 bond 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 had investment in warrants resulting from Seelos Therapeutics Inc. milestone payments that were settled in shares during the first quarter of 2019 and were at level 3 of the fair value hierarchy, based on Black-Scholes value estimated by management on the last day of the period. This investment in warrants expired in January 2024. (2) Derivative assets include instruments used for risk-management purposes, and other instruments. Derivative assets which are not used for risk management purposes include: (a) acquired rights in future milestone and royalty payments from Agenus Partnered Programs, (b) Agenus Warrant, (c) Upsize Option, (d) Viking Share Collar (e) and rights to receive from Primrose Bio 50% of milestones on two contracts previously entered into by Primordial Genetics. The considerations were recognized as derivative assets included under current derivative assets and noncurrent derivative assets in our condensed consolidated balance sheet. They are recognized as derivative assets under ASC 815, Derivatives and Hedging. The fair value of the Agenus Partnered Programs and the Primrose Bio derivative assets was determined using a discounted cash flow approach, utilizing the mostly-likely cash flows which considered the probability of success for the underlying clinical programs. The discount rate used contemplates the underlying credit and business risk of the partnered programs. At September 30, 2024, the discount rates used range between 15% and 25%. At December 31, 2023, the discount rate used was 25%. The fair value of the Agenus Warrant and Viking Share Collar was determined using a Black-Scholes-Merton model. The fair value of the Upsize Option was determined using a binomial option pricing model. (3) 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, 2024, we adjusted the balance of the Metabasis CVR liability by decreasing $0.2 million and increasing $0.9 million, respectively, to mark to market. During the three and nine months ended September 30, 2023, we adjusted the balance of the Metabasis CVR liability by decreasing $0.1 million and increasing $0.002 million, respectively, to mark to market.
Schedule of Reconciliation of Level 3 Financial Instruments	A reconciliation of the level 3 financial instruments as of September 30, 2024 is as follows (in thousands): Assets Fair value of level 3 financial instruments as of December 31, 2023 $ 3,531 Additions to derivative assets 34,185 Fair value adjustments to derivative assets (7,337) Fair value of level 3 financial instruments as of September 30, 2024 $ 30,379 Liabilities Fair value of level 3 financial instruments as of December 31, 2023 $ 320 Payments to CVR holders and other contingent payments (200) Fair value adjustments to contingent liabilities 103 Fair value of level 3 financial instruments as of September 30, 2024 $ 223

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2024
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, 2023 2,640,458 $ 65.70 350,905 $ 81.22 Granted 743,117 $ 85.71 318,588 $ 85.23 Options exercised/RSUs vested (784,467) $ 59.07 (126,793) $ 85.55 Forfeited (57,161) $ 70.71 (42,870) $ 72.32 Balance as of September 30, 2024 2,541,947 $ 73.48 499,830 $ 83.44
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, 2023 2,640,458 $ 65.70 350,905 $ 81.22 Granted 743,117 $ 85.71 318,588 $ 85.23 Options exercised/RSUs vested (784,467) $ 59.07 (126,793) $ 85.55 Forfeited (57,161) $ 70.71 (42,870) $ 72.32 Balance as of September 30, 2024 2,541,947 $ 73.48 499,830 $ 83.44

Basis of Presentation and Sum_4

Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Details) shares in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	Jan. 31, 2010 cvr	Sep. 30, 2024 USD ($) position shares	Sep. 30, 2023 USD ($) shares	Sep. 30, 2024 USD ($) position segment shares	Sep. 30, 2023 USD ($) shares	Jun. 30, 2024 USD ($)	May 29, 2024 USD ($)	Dec. 31, 2023 USD ($)	Sep. 18, 2023 contract
Property, Plant and Equipment
Number of reportable segments | segment				1
Revenue recognized that was previously deferred		$ 200,000	$ 0	$ 1,200,000	$ 0
Sale of Viking common stock (in shares) | shares		0	0	700	4,500
Gain on sale of Viking common stock				$ 60,000,000	$ 37,200,000
Number of positions in an unrealized loss position | position		32		32
Unrealized losses		$ (10,000)		$ (10,000)
Amortized cost				50,000
Credit losses related to available-for-sale debt securities		0	$ 0		0
(Decrease) increase in allowance for credit losses		(10,000)	100,000	(130,000)	140,000
Inventory write-down		100,000	0	200,000	0
Inventory		16,740,000		16,740,000				$ 23,969,000
Fair value adjustments to partner program derivatives		$ (7,812,000)	0	$ (7,812,000)	0
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]		Gain (Loss) on Investments		Gain (Loss) on Investments
Received amount expended		$ 5,675,000	$ 5,532,000	$ 17,000,000	$ 19,049,000
Employee retention credit		2,300,000		2,300,000
Financial royalty liability current		6,600,000		6,600,000
Prepaid expense		$ 2,200,000		$ 2,200,000
Potentially dilutive shares excluded from calculation due to anti-dilutive effect (in shares) | shares		1,099	4,762	1,815	4,663
Metabasis
Property, Plant and Equipment
Number of CVRs issued per acquiree share | cvr	4
Share-based Compensation
Property, Plant and Equipment
Potentially dilutive shares excluded from calculation due to anti-dilutive effect (in shares) | shares		700	300
Performance Shares
Property, Plant and Equipment
Performance period for awards (in years)				3 years
Minimum | Performance Shares
Property, Plant and Equipment
Payout range (as a percent)				0%
Maximum | Performance Shares
Property, Plant and Equipment
Payout range (as a percent)				200%
Other Derivatives
Property, Plant and Equipment
Fair value adjustments to partner program derivatives		$ (8,000,000)		$ (6,800,000)
Agenus Partnered Program
Property, Plant and Equipment
Additional maximum investment							$ 25,000,000
Percentage of milestones (as a percent)									50%
Agenus Partnered Program | Primordial Genetics
Property, Plant and Equipment
Number of contracts | contract									2
Viking | Collars
Property, Plant and Equipment
Fair value adjustments to partner program derivatives		(7,900,000)		7,300,000
Agenus, Inc. | Partner Programs
Property, Plant and Equipment
Fair value adjustments to partner program derivatives		(7,200,000)		(7,200,000)
Primrose Bio
Property, Plant and Equipment
Fair value adjustments to partner program derivatives		$ (600,000)	$ 0	$ (600,000)	$ 0
Palvella
Property, Plant and Equipment
Convertible note						$ 2,500,000
Convertible note maturity period (in years)						3 years
Palvella | Minimum
Property, Plant and Equipment
Interest in sales revenue (as a percent)		8%		8%
Palvella | Maximum
Property, Plant and Equipment
Interest in sales revenue (as a percent)		9.80%		9.80%
Palvella | Royalty Agreements
Property, Plant and Equipment
Additional royalties receivable under sales-based milestones		$ 5,000,000		$ 5,000,000
Received amount expended				700,000
Captisol
Property, Plant and Equipment
Inventory		$ 3,300,000		$ 3,300,000				$ 4,600,000

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, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Disaggregation of Revenue
Total revenues	$ 51,812	$ 32,868	$ 124,321	$ 103,213
Royalties
Disaggregation of Revenue
Total revenues	31,709	23,888	73,966	62,473
Revenue from intangible royalty assets
Disaggregation of Revenue
Total revenues	26,552	23,863	67,512	61,447
Kyprolis
Disaggregation of Revenue
Total revenues	11,599	10,537	27,229	24,862
Evomela
Disaggregation of Revenue
Total revenues	1,747	2,497	5,877	7,404
Teriparatide injection
Disaggregation of Revenue
Total revenues	2,376	2,800	6,520	9,913
Rylaze
Disaggregation of Revenue
Total revenues	3,886	3,678	10,070	9,315
Filspari
Disaggregation of Revenue
Total revenues	3,206	1,122	7,402	1,707
Vaxneuvance
Disaggregation of Revenue
Total revenues	1,466	1,313	3,962	2,990
Other
Disaggregation of Revenue
Total revenues	2,272	1,916	6,452	5,256
Income from financial royalty assets
Disaggregation of Revenue
Total revenues	5,157	25	6,454	1,026
Captisol
Disaggregation of Revenue
Total revenues	6,255	8,608	22,967	24,450
Contract revenue and other income
Disaggregation of Revenue
Total revenues	13,848	372	27,388	16,290
Milestone and other
Disaggregation of Revenue
Total revenues	13,848	372	25,444	16,290
Other income
Disaggregation of Revenue
Total revenues	$ 0	$ 0	$ 1,944	$ 0

Basis of Presentation and Sum_6

Basis of Presentation and Summary of Significant Accounting Policies - Investment Categories (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Debt Securities, Available-for-sale
Amortized cost	$ 98,954	$ 120,874
Gross unrealized gains	87	79
Gross unrealized losses	(6,327)	(5,783)
Estimated fair value	92,714	115,170
Total short-term investments	156,024	147,355
Bond fund
Debt Securities, Available-for-sale
Amortized cost	39,512	63,763
Gross unrealized gains	0	0
Gross unrealized losses	(265)	(537)
Estimated fair value	39,247	63,226
U.S. government securities
Debt Securities, Available-for-sale
Amortized cost	19,051	6,736
Gross unrealized gains	31	18
Gross unrealized losses	0	(3)
Estimated fair value	19,082	6,751
Bank deposits
Debt Securities, Available-for-sale
Amortized cost	12,280	17,165
Gross unrealized gains	21	12
Gross unrealized losses	0	(1)
Estimated fair value	12,301	17,176
Corporate bonds
Debt Securities, Available-for-sale
Amortized cost	10,969	14,850
Gross unrealized gains	30	40
Gross unrealized losses	(3)	(2)
Estimated fair value	10,996	14,888
Commercial paper
Debt Securities, Available-for-sale
Amortized cost	10,591	11,578
Gross unrealized gains	5	9
Gross unrealized losses	(1)	(1)
Estimated fair value	10,595	11,586
Municipal bonds
Debt Securities, Available-for-sale
Amortized cost		1,007
Gross unrealized gains		0
Gross unrealized losses		(4)
Estimated fair value		1,003
Corporate equity securities
Debt Securities, Available-for-sale
Amortized cost	6,551	5,775
Gross unrealized gains	0	0
Gross unrealized losses	(6,058)	(5,235)
Estimated fair value	493	540
Common Stock
Debt Securities, Available-for-sale
Viking common stock	$ 63,310	$ 32,185

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, 2024 USD ($)
Amortized Cost
Within one year	$ 91,072
After one year through five years	4,647
Total	95,719
Fair Value
Within one year	91,152
After one year through five years	4,655
Total	$ 95,807

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, 2024	Dec. 31, 2023
Summary of Goodwill and Other Identifiable Intangible Assets
Goodwill	$ 105,250	$ 103,370
Total goodwill and other identifiable intangible assets, net	380,155	402,976
Complete technology
Summary of Goodwill and Other Identifiable Intangible Assets
Definite lived intangible assets	39,249	42,911
Less: accumulated amortization	(19,072)	(20,894)
Trade name
Summary of Goodwill and Other Identifiable Intangible Assets
Definite lived intangible assets	2,642	2,642
Less: accumulated amortization	(1,810)	(1,710)
Customer relationships
Summary of Goodwill and Other Identifiable Intangible Assets
Definite lived intangible assets	29,600	29,600
Less: accumulated amortization	(20,280)	(19,161)
Contractual relationships
Summary of Goodwill and Other Identifiable Intangible Assets
Definite lived intangible assets	360,000	360,000
Less: accumulated amortization	$ (115,424)	$ (93,782)

Basis of Presentation and Sum_9

Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Derivative Assets (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Dec. 31, 2023	Sep. 18, 2023
Derivative [Line Items]
Total current derivative assets	$ 11,133	$ 0
Total noncurrent derivative assets	19,246	3,531	$ 3,200
Primrose Bio
Derivative [Line Items]
Total noncurrent derivative assets	2,921	3,531
Equity Option | Agenus, Inc.
Derivative [Line Items]
Total current derivative assets	3,815	0
Total noncurrent derivative assets	$ 2,226	0
Derivative, term of contract (in years)	5 years
Collars | Viking
Derivative [Line Items]
Total current derivative assets	$ 7,318	0
Partner Programs | Agenus, Inc.
Derivative [Line Items]
Total noncurrent derivative assets	$ 14,099	$ 0

Basis of Presentation and Su_10

Basis of Presentation and Summary of Significant Accounting Policies - Other Investment (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Summary of Investment Holdings
Total other investments	$ 11,908	$ 36,726
Equity Securities | Primrose Bio
Summary of Investment Holdings
Total other investments	6,712	32,726
Equity Securities | InvIOs
Summary of Investment Holdings
Total other investments	4,196	0
Neuritek warrants
Summary of Investment Holdings
Total other investments	0	3,000
Palvella Series C preferred stock
Summary of Investment Holdings
Total other investments	$ 1,000	$ 1,000

Basis of Presentation and Su_11

Basis of Presentation and Summary of Significant Accounting Policies - Inventory in Other Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Inventory [Line Items]
Total Pelthos inventory in other current assets	$ 16,740	$ 23,969
Zelsuvmi
Inventory [Line Items]
Raw materials	2,495	420
Work in process	260	195
Total Pelthos inventory in other current assets	$ 2,755	$ 615

Basis of Presentation and Su_12

Basis of Presentation and Summary of Significant Accounting Policies - Accrued Liabilities and Other Long-Term Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Accrued Liabilities
Compensation	$ 3,830	$ 4,682
Subcontractor	1,756	1,756
Professional fees	3,296	2,394
Customer deposit	621	621
Supplier	276	303
Royalties owed to third parties	2,989	900
Amounts owed to former licensees	0	45
Other	2,832	1,766
Total accrued liabilities	$ 15,600	$ 12,467

Basis of Presentation and Su_13

Basis of Presentation and Summary of Significant Accounting Policies - Other Long-term Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Unrecognized tax benefits	$ 14,481	$ 14,039
Novan (Pelthos) contract liability	15,324	13,700
Other long-term liabilities	69	19
Other long-term liabilities	$ 29,874	$ 27,758

Basis of Presentation and Su_14

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, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Basis of Presentation
Share-based compensation expense	$ 15,171	$ 6,884	$ 33,565	$ 20,022
SBC - Research and development expenses
Basis of Presentation
Share-based compensation expense	982	1,639	2,588	5,362
SBC - General and administrative expenses
Basis of Presentation
Share-based compensation expense	$ 14,189	$ 5,245	$ 30,977	$ 14,660

Basis of Presentation and Su_15

Basis of Presentation and Summary of Significant Accounting Policies - Fair Value Valuation Assumptions (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Risk-free interest rate (as a percent)	4.40%	4.30%	4.30%	4.10%
Dividend yield (as a percent)	0%	0%	0%	0%
Expected volatility (as a percent)	44.70%	44.70%	44.70%	51.50%
Expected term (years)	4 years 8 months 12 days	5 years 2 months 12 days	4 years 8 months 12 days	5 years 3 months 18 days

Basis of Presentation and Su_16

Basis of Presentation and Summary of Significant Accounting Policies - Net (Loss) Gain Per Share (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share
Weighted average shares outstanding (in shares)	18,419	17,380	18,061	17,241
Dilutive potential common shares:
Shares used to compute diluted income (loss) per share (in shares)	18,419	17,380	18,574	17,784
Potentially dilutive shares excluded from calculation due to anti-dilutive effect (in shares)	1,099	4,762	1,815	4,663
Restricted stock
Dilutive potential common shares:
Dilutive potential common shares (in shares)	0	0	173	82
Stock options
Dilutive potential common shares:
Dilutive potential common shares (in shares)	0	0	340	302
2023 Notes
Dilutive potential common shares:
Dilutive potential common shares (in shares)	0	0	0	159

Agenus Transaction (Details)

Agenus Transaction (Details) $ in Thousands	May 29, 2024 USD ($) $ / shares shares	Sep. 30, 2024 USD ($) $ / shares	Dec. 31, 2023 USD ($)
Asset Acquisition [Line Items]
Net carrying value		$ 205,867	$ 62,291
Agenus, Inc.
Asset Acquisition [Line Items]
Net carrying value	$ 75,000	$ 40,407	$ 0
Royalties right to receive (as a percent)	18.75%
Maximum capital sourcing	$ 100,000
Maximum financing royalty asset	$ 200,000
Warrants term (in years)	5 years
Securities called by warrants (in shares) | shares	867,052
Exercise price (in USD per share) | $ / shares	$ 17.3
Agenus, Inc. | Expected Term
Asset Acquisition [Line Items]
Derivative liability, measurement input	4	3.7
Agenus, Inc. | Option Volatility
Asset Acquisition [Line Items]
Derivative liability, measurement input	0.84	0.99
Agenus, Inc. | Risk Free Interest Rate
Asset Acquisition [Line Items]
Derivative liability, measurement input	0.047	0.036
Agenus, Inc. | Share Price
Asset Acquisition [Line Items]
Derivative liability, measurement input | $ / shares	15.03	5.48
Agenus, Inc. | BMS-986442
Asset Acquisition [Line Items]
Future milestones right to receive (as a percent)	31.875%
Agenus, Inc. | AGEN2373
Asset Acquisition [Line Items]
Future milestones right to receive (as a percent)	31.875%
Agenus, Inc. | INCAGN2385
Asset Acquisition [Line Items]
Future milestones right to receive (as a percent)	31.875%
Agenus, Inc. | INCAGN2390
Asset Acquisition [Line Items]
Future milestones right to receive (as a percent)	31.875%
Agenus, Inc. | MK-4830
Asset Acquisition [Line Items]
Future milestones right to receive (as a percent)	31.875%
Agenus, Inc. | UGN-301
Asset Acquisition [Line Items]
Future milestones right to receive (as a percent)	31.875%
Agenus, Inc. | BOT/BAL
Asset Acquisition [Line Items]
Future royalties (as a percent)	2.625%
Agenus Partnered Program
Asset Acquisition [Line Items]
Additional maximum investment	$ 25,000

Sale of Pelican Business and _3

Sale of Pelican Business and Investment in Primrose Bio - Narrative (Details) $ in Thousands		3 Months Ended		9 Months Ended
	Sep. 18, 2023 USD ($) contract milestone shares	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Jan. 01, 2025 USD ($)	Dec. 31, 2023 USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations
Gain on sale of Pelican		$ 0	$ 2,121	$ 0	$ 2,121
Noncurrent derivative assets	$ 3,200	19,246		$ 19,246			$ 3,531
Derivative Asset Noncurrent, Statement Of Financial Position, Extensible Enumeration, Not Disclosed Flag				condensed consolidated balance sheet
Loss on derivative instruments				$ (14,655)	0
Losses from equity method investment in Primrose Bio				11,576	0
Primrose Bio
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations
Impairment of equity method investment		0		5,800
Losses from equity method investment in Primrose Bio		1,200		5,800
Decrease in value of investment		30		25,790
Primrose Bio
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations
Consideration paid for an interest in potential development milestone	$ 15,000
Noncurrent derivative assets		2,921		2,921			$ 3,531
Primrose Bio | PeliCRM197 | Forecast
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations
Sales revenue milestone						$ 3,000
Primrose Bio | Below 3 million | PeliCRM197 | Forecast
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations
Interest in sales revenue (as a percent)						25%
Primrose Bio | Above 3 million | PeliCRM197 | Forecast
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations
Interest in sales revenue (as a percent)						35%
Agenus Partnered Program
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations
Percentage of milestones (as a percent)	50%
Agenus Partnered Program | Primordial Genetics
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations
Number of contracts | contract	2
Number of milestones (milestone) | milestone	2
Loss on derivative instruments		$ (600)		$ (600)
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Pelican Technology Holdings, Inc.
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations
Consideration paid for an interest in potential development milestone	$ 15,000
Goodwill written off					4,100
Gain on sale of Pelican			$ 2,100		$ 2,100
Business exit costs	$ 1,200
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Pelican Technology Holdings, Inc. | Restricted Stock Awards
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations
Shares received as consideration (in shares) | shares	474,746
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Pelican Technology Holdings, Inc. | Common Stock
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations
Shares received as consideration (in shares) | shares	2,146,957
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Pelican Technology Holdings, Inc. | Preferred Stock
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations
Shares received as consideration (in shares) | shares	4,278,293

Sale of Pelican Business and _4

Sale of Pelican Business and Investment in Primrose Bio - Net Asset (Details) - Disposal Group, Disposed of by Sale, Not Discontinued Operations - Pelican Technology Holdings, Inc. $ in Thousands	Sep. 18, 2023 USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations
Property and equipment, net	$ 8,250
Intangible assets	19,895
Other assets	717
Operating lease right-of-use assets	8,693
Finance lease right-of-use assets	20
Accrued liabilities	(630)
Deferred revenue	(495)
Long-term operating lease liabilities	(8,445)
Other liabilities	(74)
Net assets sold	27,931
Allocated goodwill	4,132
Cash consideration paid	15,000
Total	$ 47,063

Sale of Pelican Business and _5

Sale of Pelican Business and Investment in Primrose Bio - Fair Value of the Consideration (Details) - Disposal Group, Disposed of by Sale, Not Discontinued Operations - Pelican Technology Holdings, Inc. $ in Thousands	Sep. 18, 2023 USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations
Cash consideration paid	$ 49,184
Equity method investment
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations
Cash consideration paid	13,706
Equity securities
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations
Cash consideration paid	32,278
Derivative assets
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations
Cash consideration paid	$ 3,200

Acquisitions - Narrative (Detai

Acquisitions - Narrative (Details) € in Millions				9 Months Ended		12 Months Ended
	Jul. 15, 2024 USD ($)	Jul. 15, 2024 EUR (€)	Sep. 27, 2023 USD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)
Business Acquisition
Cash paid for InvIOs investment				$ 4,196,000	$ 0
InvIOs Holding AG
Business Acquisition
Cash paid for InvIOs investment	$ 4,200,000
Equity issuance cost	200,000
InvIOs Holding AG | Investor
Business Acquisition
Cash paid for InvIOs investment	8,800,000	€ 8
APEIRON
Business Acquisition
Aggregate acquisition amount	100,500,000
Contingent earn-out payment	28,000,000
Deferred transaction costs	4,900,000
Contract assets (financial royalty assets)	106,156,000			106,156,000
Deferred tax liability	$ 18,109,000
Intangible assets acquired				$ 0
Novan, Inc.
Business Acquisition
Aggregate acquisition amount			$ 12,150,000
Contract assets (financial royalty assets)					0
Cash payments for acquisition			15,000,000
Liabilities incurred			15,000,000
Intangible assets acquired			$ 10,700,000		$ 10,700,000
Acquired (as a percent)			10.30%
Cash acquired from acquisition			$ 2,800,000
Acquisition related costs						$ 3,100,000
Goodwill acquired that is expected to be deductible for tax purposes			$ 0
Discount rate used to value intangible assets acquired (as a percent)			29%
Weighted-average estimated useful life of finite-lived intangible assets acquired (in years)			15 years
Other liabilities			$ 13,700,000
Research and development			$ 25,000,000
Novan, Inc. | Discount Rate | Valuation Technique, Discounted Cash Flow
Business Acquisition
Contingent liability measurement input (as a percent)			0.14
Novan, Inc. | Core Technology
Business Acquisition
Intangible assets acquired			$ 12,200,000
Novan, Inc. | Bridge Loan
Business Acquisition
Liabilities incurred			$ 3,000,000

Acquisitions - Fair Values of A

Acquisitions - Fair Values of Assets Acquired and Liabilities Assumed (Details) - APEIRON - USD ($) $ in Thousands	Sep. 30, 2024	Jul. 15, 2024
Business Acquisition
Cash and cash equivalents		$ 13,437
Contract assets (financial royalty assets)	$ 106,156	106,156
Other assets		8,965
Accounts payable and accrued liabilities		(3,740)
Income tax payable		(1,276)
Deferred tax liabilities, net		(18,109)
Total fair value of net assets acquired		$ 105,433

Acquisitions - Assets Acquired

Acquisitions - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands		9 Months Ended
	Sep. 27, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Business Acquisition
Goodwill		$ 105,250		$ 103,370
Cash paid for Novan, including restricted cash received		$ 0	$ 10,405
Novan, Inc.
Business Acquisition
Restricted cash	$ 583
Property and equipment, net	13,054
Operating lease right-of-use asset	3,683
Other assets	137
Deferred tax asset	1,013
Intangible assets acquired	10,700		10,700
Goodwill	3,709		3,709
Deferred revenue	(4,508)
Operating lease liabilities	(3,683)
Other liabilities	(13,700)
Cash paid for Novan, including restricted cash received	10,988		$ 10,405
DIP loan fees and interest	1,162
Total consideration	$ 12,150

Spin-off of OmniAb (Details)

Spin-off of OmniAb (Details) $ in Millions	9 Months Ended
	Sep. 30, 2024 USD ($)	Oct. 26, 2022
Segment Reporting, Revenue Reconciling Item
Deferred tax asset adjustment	$ (1.7)
Discontinued operations
Segment Reporting, Revenue Reconciling Item
Percentage of voting interests disposed (as a percent)		1

Financial Royalty Assets, net_3

Financial Royalty Assets, net (formerly known as Commercial License Rights) - Schedule of Financial Royalty Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Aug. 31, 2024	May 29, 2024	Mar. 31, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets
Gross carrying value	$ 210,298				$ 70,364
Allowance	(4,431)				(8,073)
Net carrying value	205,867				62,291
Financial royalty liability current	6,600
Apeiron
Finite-Lived Intangible Assets
Gross carrying value	113,371				0
Allowance	(735)				0
Net carrying value	112,636				0
Agenus (Bot/Bal)
Finite-Lived Intangible Assets
Gross carrying value	40,815				0
Allowance	(408)				0
Net carrying value	40,407		$ 75,000		0
Elutia (CorMatrix)
Finite-Lived Intangible Assets
Gross carrying value	10,032				13,304
Allowance	(2,607)				(7,490)
Net carrying value	7,425				5,814
Selexis
Finite-Lived Intangible Assets
Gross carrying value	242				940
Allowance	(58)				(179)
Net carrying value	184				761
Ovid (Soticlestat)
Finite-Lived Intangible Assets
Gross carrying value	4,122				30,310
Allowance	(41)				(303)
Net carrying value	4,081				30,007
Tolerance Therapeutics (TZIELD)
Finite-Lived Intangible Assets
Gross carrying value	25,698				25,810
Allowance	(101)				(101)
Net carrying value	25,597				25,709
Ensifentrine inventors
Finite-Lived Intangible Assets
Gross carrying value	16,018	$ 13,600		$ 3,800	0
Allowance	(481)				0
Net carrying value	$ 15,537				$ 0

Financial Royalty Assets, net_4

Financial Royalty Assets, net (formerly known as Commercial License Rights) - Narrative (Details)		1 Months Ended	3 Months Ended		9 Months Ended
	May 31, 2017 USD ($)	Nov. 30, 2023 USD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Aug. 31, 2024 USD ($)	Mar. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)	Oct. 31, 2023 USD ($)
Finite-Lived Intangible Assets
Impairment loss of financial royalty assets			$ 0		$ 26,491,000	$ 924,000
Gross carrying value			210,298,000		210,298,000				$ 70,364,000
Tolerance Therapeutics (TZIELD)
Finite-Lived Intangible Assets
Product royalty (as a percent)		1%
Cash payments for acquisition		$ 20,000,000
Deferred tax liability		$ 5,500,000
Ovid (Soticlestat)
Finite-Lived Intangible Assets
Impairment loss of financial royalty assets					26,200,000
Gross carrying value			$ 4,122,000		$ 4,122,000				30,310,000
Ovid (Soticlestat) | Discount Rate
Finite-Lived Intangible Assets
Discount rate (as a percent)			0.17		0.17
Ovid (Soticlestat) | Soticlestat
Finite-Lived Intangible Assets
Consideration paid for an interest in potential development milestone										$ 30,000,000
Interest in sales revenue (as a percent)										13%
Selexis
Finite-Lived Intangible Assets
Impairment loss of financial royalty assets				$ 900,000	$ 300,000	900,000
Gross carrying value			$ 242,000		242,000				940,000
Elutia (CorMatrix)
Finite-Lived Intangible Assets
Proceeds from royalties received	$ 10,000,000
Product royalty (as a percent)	5%
Credit loss adjustment			(300,000)	$ 3,200,000	(4,900,000)	$ 3,200,000
Gross carrying value			10,032,000		10,032,000				13,304,000
Elutia (CorMatrix) | Maximum
Finite-Lived Intangible Assets
Additional royalties receivable under sales-based milestones	$ 10,000,000
Ensifentrine inventors
Finite-Lived Intangible Assets
Gross carrying value			$ 16,018,000		$ 16,018,000		$ 13,600,000	$ 3,800,000	$ 0

Fair Value Measurements - Asset

Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended		12 Months Ended
	Jan. 31, 2010 cvr	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)	Sep. 18, 2023 contract
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset Statement Of Financial Position Extensible Enumeration Not Disclosed Flag				Derivative assets(2)		Derivative assets(2)
Number of CVR series | cvr	4
Agenus Partnered Program
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Percentage of milestones (as a percent)							50%
Agenus Partnered Program | Discount Rate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount rate (as a percent)						0.25
Agenus Partnered Program | Primordial Genetics
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Number of contracts | contract							2
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		$ 10,000
Minimum | Agenus Partnered Program | Discount Rate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount rate (as a percent)		0.15		0.15
Maximum | Agenus Partnered Program | Discount Rate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount rate (as a percent)		0.25		0.25
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		$ 375,000
Metabasis
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Number of CVRs issued per acquiree share | cvr	4
Number of CVRs issued from each CVR series | cvr	1
Frequency of cash payments to CVR holders	6 months
(Decrease) increase of mark-to-market adjustment of CVR liability		(200)	$ (100)	900	$ 2
Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment in Viking common stock		63,310		63,310		$ 32,185
Derivative asset		30,379		30,379		3,531
Total assets		186,403		186,403		150,886
Total liabilities		3,991		3,991		3,198
Recurring | Short-term investments, excluding Viking
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, fair value		92,714		92,714		115,170
Recurring | Contingent liabilities | CyDex
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent liabilities		223		223		320
Recurring | Contingent liabilities | Metabasis
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent liabilities		3,768		3,768		2,878
Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment in Viking common stock		63,310		63,310		32,185
Derivative asset		0		0		0
Total assets		82,885		82,885		39,476
Total liabilities		0		0		0
Recurring | Level 1 | Short-term investments, excluding Viking
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, fair value		19,575		19,575		7,291
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 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment in Viking common stock		0		0		0
Derivative asset		0		0		0
Total assets		73,139		73,139		107,879
Total liabilities		3,768		3,768		2,878
Recurring | Level 2 | Short-term investments, excluding Viking
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, fair value		73,139		73,139		107,879
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		3,768		3,768		2,878
Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment in Viking common stock		0		0		0
Derivative asset		30,379		30,379		3,531
Total assets		30,379		30,379		3,531
Total liabilities		223		223		320
Recurring | Level 3 | Short-term investments, excluding Viking
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		223		223		320
Recurring | Level 3 | Contingent liabilities | Metabasis
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent liabilities		$ 0		$ 0		$ 0

Fair Value Measurements - Recon

Fair Value Measurements - Reconciliation of Level 3 Financial Instruments (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2024 USD ($)
Assets
Beginning balance	$ 3,531
Additions to derivative assets	34,185
Fair value adjustments to derivative assets	(7,337)
Ending balance	$ 30,379
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Gain (Loss) on Investments
Liabilities
Beginning balance	$ 320
Payments to CVR holders and other contingent payments	(200)
Fair value adjustments to contingent liabilities	103
Ending balance	$ 223
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Non Cash Change In Estimated Fair Value Of Contingent Value Rights

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Fair Value Disclosures [Abstract]
Goodwill and intangible asset impairment	$ 0	$ 0	$ 0	$ 0
Tangible asset impairment charges	$ 0	$ 0	$ 0	$ 0

Debt (Details)

Debt (Details) - Revolving Credit Facility - USD ($)	Oct. 12, 2023	Sep. 30, 2024	Jul. 08, 2024
Line of Credit Facility
Maximum borrowing capacity	$ 75,000,000		$ 125,000,000
Line of Credit
Line of Credit Facility
Available borrowing		$ 124,400,000
Letters of credit outstanding		$ 600,000
Minimum
Line of Credit Facility
Line of credit facility, interest rate (as a percent)	0.30%
Minimum | Secured Overnight Financing Rate (SOFR)
Line of Credit Facility
Variable rate (as a percent)	1.75%
Minimum | Base Rate
Line of Credit Facility
Variable rate (as a percent)	0.75%
Maximum
Line of Credit Facility
Line of credit facility, interest rate (as a percent)	0.45%
Maximum | Secured Overnight Financing Rate (SOFR)
Line of Credit Facility
Variable rate (as a percent)	2.50%
Maximum | Base Rate
Line of Credit Facility
Variable rate (as a percent)	1.50%

Income Tax (Details)

Income Tax (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Effective income tax rate (as a percent)	(13.10%)	15.40%	35.10%	23.50%

Stockholders' Equity - Narrativ

Stockholders' Equity - Narrative (Details) - USD ($)	1 Months Ended	3 Months Ended	9 Months Ended
	Jun. 30, 2024	Sep. 30, 2024	Sep. 30, 2024	Apr. 30, 2023	Sep. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award
Outstanding options that are exercisable (in shares)		1,400,000	1,400,000
Outstanding options that are exercisable, weighted average exercise price (in USD per share)		$ 70.27	$ 70.27
Employee Stock Purchase Plan
Authorized stock repurchase amount				$ 50,000,000
Remaining authorized stock repurchase amount		$ 50,000,000	$ 50,000,000
At-the Market Equity Offering
Employee Stock Purchase Plan
Sale of stock, authorized offering amount					$ 100,000,000
Sale of common stock (in shares)		334,325	334,325
Common stock aggregate offering price			$ 34,300,000
2002 Stock Incentive Plan | Stock Options
Share-based Compensation Arrangement by Share-based Payment Award
Increase the number of shares under the 2002 stock incentive plan (in shares)	1,300,000
Amended ESPP
Employee Stock Purchase Plan
Share purchase price as percent of market price (as a percent)			85%
Shares available for future purchases (in shares)			26,244

Stockholders' Equity - Stock Op

Stockholders' Equity - Stock Option Plan and Restricted Stock Activity (Details)	9 Months Ended
	Sep. 30, 2024 $ / shares shares
Shares
Balance at beginning of period (in shares) | shares	2,640,458
Granted (in shares) | shares	743,117
Options exercised (in shares) | shares	(784,467)
Forfeited (in shares) | shares	(57,161)
Balance at end of period (in shares) | shares	2,541,947
Weighted-Average Exercise Price
Balance at beginning of period (in USD per share) | $ / shares	$ 65.70
Granted (in USD per share) | $ / shares	85.71
Options exercised (in USD per share) | $ / shares	59.07
Forfeited (in USD per share) | $ / shares	70.71
Balance at end of period (in USD per share) | $ / shares	$ 73.48
Restricted Stock Awards
Restricted Stock Awards
Nonvested at beginning of period (in shares) | shares	350,905
Granted (in shares) | shares	318,588
RSUs vested (in shares) | shares	(126,793)
Forfeited (in shares) | shares	(42,870)
Nonvested at end of period (in shares) | shares	499,830
Weighted-Average Grant Date Fair Value
Nonvested at beginning of period (in USD per share) | $ / shares	$ 81.22
Granted (in USD per share) | $ / shares	85.23
RSUs vested (in USD per share) | $ / shares	85.55
Forfeited (in USD per share) | $ / shares	72.32
Nonvested at end of period (in USD per share) | $ / shares	$ 83.44

Commitment and Contingencies (D

Commitment and Contingencies (Details) $ in Millions		9 Months Ended
	Oct. 31, 2019 complaint	Sep. 30, 2024 USD ($)
Loss Contingencies [Line Items]
Increase in operating lease assets		$ 1.6
Increase in operating lease liability		$ 1.6
US District Court for the Northern District of Ohio
Loss Contingencies [Line Items]
Number of civil complaints filed against entity | complaint	3