Company: LGNZZ
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000886163-25-000036
Chunk: 64

Company: LIGAND PHARMACEUTICALS INC
Filing Date: 2025-05-09
Form: 10-Q
Item: Item 8
Chunk 64
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 in our condensed consolidated statements of operations. As of December 31, 2024, equity method investment in Primrose Bio had been written down to zero. Therefore, our proportionate share of net loss of Primrose Bio for the three months ended March 31, 2025 was not recorded.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. There was no impairment to our equity method investment during the three months ended March 31, 2025 or 2024. Any income or loss from our equity method investments (including the impairment) is presented in other non-operating (expense) income, net in our condensed consolidated statement of operations.Other InvestmentsOther investments represent our investments in equity securities of third parties that do not result in us having a control or significant influence from such investments. 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 condensed consolidated statements of operations.Other investments consist of the following (in thousands):March 31,December 31,20252024Equity securities in Primrose Bio$6,712 $6,712 InvIOs investment4,196 4,196      Total other investments$10,908 $10,908 In connection with the sale of the Pelican business and investment in Primrose Bio transaction in September 2023, since the preferred stock and restricted share investment in Primrose Bio has a substantive liquidation preference, it is not substantially similar to the common stock investment and is therefore recorded as an equity security under ASC 321, Investments - Equity Securities. We determined that the Series A preferred stock and reserve stock investments 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. There were no observable price changes or impairments identified for the