Company: LGNZZ
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0000886163-25-000051
Chunk: 72

Company: LIGAND PHARMACEUTICALS INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 8
Chunk 72
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oyalties earned on successfully commercialized products generated from R&D arrangements are recognized as revenue from intangible royalty assets in the same period in which the sale of the commercialized product occurs. Fixed or milestone payments receivable based on the achievement of contractual criteria for products arising out of our R&D arrangements are recognized as contract revenue and other income in the period that the milestone threshold is met. Derivative AssetsDerivative 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 in Note 3, Castle Creek and Agenus Transactions), (b) rights to receive from Primrose Bio 50% of milestone payments on two contracts previously entered into by Primordial Genetics (“Primrose mRNA”), (c) Castle Creek Milestone (as defined in Note 3, Castle Creek and Agenus Transactions), (d) Agenus Warrant (as defined in Note 3, Castle Creek and Agenus Transactions), and (e) Castle Creek Warrant (as defined in Note 3, Castle Creek and Agenus Transactions).All derivatives are measured at fair value on the condensed consolidated balance sheets. Derivative assets consist of the following (in thousands):June 30, 2025December 31, 2024Agenus Partner Programs$5,841 $6,326 Primrose mRNA2,836 3,451 Castle Creek Milestone2,100 — Agenus Warrant1,706 806 Castle Creek Warrant5,475 —      Total noncurrent derivative assets$17,958 $10,583 A change in the fair value of Agenus Partner Programs, Primrose mRNA and Castle Creek Milestone derivatives that amounted to $(0.8) million, $(0.7) million and $0.3 million, respectively, for the three months ended June 30, 2025, was included in fair value adjustments to partner program derivatives in the condensed consolidated statement of operations. A change in the fair value of Agenus Partner Programs, Primrose mRNA and Castle Creek Milestone derivatives that amounted to $(0.5) million, $(0.6) million and $0.3 million, respectively, for the six months ended June 30, 2025, was included in fair value adjustments to partner program derivatives in the condensed consolidated statement of