Income taxes |
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| Income taxes | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income taxes |
The effective income tax rate of 12.0% and 6.3% during the three and nine months ended September 30, 2025 (during the three and nine months ended September 30, 2024, (0.1%) and 1.0%, respectively) was substantially lower than the enacted rate of 25.8% in the Netherlands as the Company recorded a valuation allowance against its net deferred tax assets in the Netherlands and a partial valuation allowance against its net deferred tax assets in France. Since 2023, the Company has been engaged with the Dutch tax authorities regarding the tax treatment of the $375.0 million upfront payment received in exchange for the rights to the lowest royalty tier on CSL Behring’s worldwide net sales of HEMGENIX®. Refer to Note 8, “Royalty Financing Agreement”. In September 2025, the Dutch tax authorities communicated their position that, for Dutch corporate income tax purposes, the upfront payment would be treated as taxable income in 2023. This would result in a taxable profit instead of a net operating loss for that year. On a provisional basis, the recognition of the $375.0 million upfront payment as taxable income resulted in the consumption of $30.3 million of losses carried forward, as well as the release of the associated valuation allowance. During the three and nine months ended September 30, 2025, the Company recorded, on a discrete basis, an estimate of $7.5 million of current tax expense related to the Dutch operations and $1.1 million of related interest expense, in accordance with ASC 740, Income Taxes. These estimates remain subject to change upon finalization of the 2023 filing position. In connection with the estimate and associated release of the valuation allowance, the Company allocated part of such release to the tax benefit of share issuance costs incurred in 2019. This resulted in an increase in additional paid-in capital as well as deferred tax expenses of $0.9 million. The following table summarizes the income tax (expense) / benefit for the three and nine months ended September 30, 2025 and 2024, respectively:
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