Company: LGNZZ
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000886163-25-000012
Chunk: 177

Company: LIGAND PHARMACEUTICALS INC
Filing Date: 2025-02-28
Form: 10-K
Item: Item 8
Chunk 177
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28%. At December 31, 2023, the discount rate used was 25%. The fair value of the Agenus Warrant 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 

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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. A reconciliation of the level 3 financial instruments as of December 31, 2024 is as follows (in thousands):AssetsFair value of level 3 financial instruments as of December 31, 2023$3,531 Additions to derivative assets35,888 Fair value adjustments to derivative assets(20,010)Exercise of derivative assets(8,826)Fair value of level 3 financial instruments as of December 31, 2024$10,583 LiabilitiesFair 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 liabilities263 Fair value of level 3 financial instruments as of December 31, 2024$383 A reconciliation of the level 3 financial instruments as of December 31, 2023 is as follows