Company: LGNZZ
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000886163-25-000012
Chunk: 146

Company: LIGAND PHARMACEUTICALS INC
Filing Date: 2025-02-28
Form: 10-K
Item: Item 8
Chunk 146
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 months ended December 31, 2024, we entered into a put arrangement to hedge against the fluctuation risk in Viking's share price (the “Viking Share Put”) which expired within the same quarter.All derivatives are measured at fair value on the consolidated balance sheets. For additional information, see “Note (8), Fair Value Measurement” and “Note (7), Balance Sheet Account Details”.Equity Method InvestmentInvestments 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.For additional information, see “Note (4), Sale of Pelican Business and Investment in Primrose Bio”.

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Other InvestmentsOther 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 (expense) income, net in our consolidated statements of operations. For additional information, see “Note (7), Balance Sheet Account Details.” Contingent LiabilitiesIn 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) income, net in our consolidated statements of operations. For additional information, see “Note (8), Fair Value Measurement” and “Note (7), Balance Sheet Account Details”.Revenue and Other IncomeOur revenue is generated primarily from royalties on sales of products commercialized by our partners, Captisol