Company: LGNZZ
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0000886163-25-000051
Chunk: 37

Company: LIGAND PHARMACEUTICALS INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 1
Chunk 37
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 months as cash is received by us from proceeds from the sale or partnering of any of the Metabasis drug development programs, among other triggering events. The liability for the CVRs is determined using quoted prices in a market that is not active for the underlying CVR. The carrying amount of the liability may fluctuate significantly based upon quoted market prices and actual amounts paid under the agreements may be materially different than the carrying amount of the liability. Several of the Metabasis drug development programs have been outlicensed to Viking, including VK2809. VK2809 is a novel selective TR-β agonist with potential in multiple indications, including hypercholesterolemia, dyslipidemia, NASH, and X-ALD. Under the terms of the agreement with Viking, we may be entitled to up to $375 million of development, regulatory and commercial milestones and tiered royalties on potential future sales including a $10 million payment upon initiation of a Phase 3 clinical trial. During the three months ended June 30, 2025 and 2024, we recorded a change in the fair value of the Metabasis CVR liability that amounted to $0.1 million and $1.1 million, respectively, to mark to market. During the six months ended June 30, 2025 and 2024, we recorded a change in the fair value of the Metabasis CVR liability that amounted to $1.9 million and $1.1 million, respectively, to mark to market.  A reconciliation of the level 3 financial instruments as of June 30, 2025 is as follows (in thousands):AssetsFair value of level 3 financial instruments as of December 31, 2024$10,583 Additions to derivative assets7,620 Fair value adjustments to derivative assets(245)Fair value of level 3 financial instruments as of June 30, 2025$17,958 LiabilitiesFair value of level 3 financial instruments as of December 31, 2024$383 Payments to CVR holders and other contingent payments(50)Fair value adjustments to contingent liabilities18 Fair value of level 3 financial instruments as of June 30, 2025$351 

25

Assets Measured on a Non-Recurring BasisWe 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