☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 61-1807780 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
29 Hartwell Avenue Lexington, Massachusetts | 02421 | |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Common Stock, $0.001 par value | TBIO | The Nasdaq Global Select Market |
Large accelerated filer | ☒ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||
Emerging growth company | ☐ |
Page | ||||||
PART I. | ||||||
1 | ||||||
Item 1. | 1 | |||||
1 | ||||||
2 | ||||||
3 | ||||||
4 | ||||||
6 | ||||||
7 | ||||||
Item 2. | ||||||
Item 3. | ||||||
Item 4. | ||||||
PART II. | ||||||
Item 1. | ||||||
Item 1A. | ||||||
Item 6. | ||||||
June 30, | December 31, | |||||||||||||||
March 31, 2021 | December 31, 2020 | 2021 | 2020 | |||||||||||||
Assets | ||||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | $ | 155,746 | $ | 342,027 | $ | 249,471 | $ | 342,027 | ||||||||
Investments | 499,007 | 312,001 | 417,727 | 312,001 | ||||||||||||
Collaboration receivables | 23,240 | 26,598 | 24,030 | 26,598 | ||||||||||||
Prepaid expenses and other current assets | 16,721 | 11,741 | 20,958 | 11,741 | ||||||||||||
Restricted cash | 4,826 | 4,826 | 4,826 | 4,826 | ||||||||||||
Total current assets | 699,540 | 697,193 | 717,012 | 697,193 | ||||||||||||
Property and equipment, net | 16,563 | 15,372 | 18,249 | 15,372 | ||||||||||||
Right-of-use | 71,154 | 72,957 | 68,123 | 72,957 | ||||||||||||
Goodwill | 21,359 | 21,359 | 21,359 | 21,359 | ||||||||||||
Intangible assets, net | 77,106 | 79,127 | 74,507 | 79,127 | ||||||||||||
Other assets | 4,918 | 3,928 | 5,620 | 3,928 | ||||||||||||
Total assets | $ | 890,640 | $ | 889,936 | $ | 904,870 | $ | 889,936 | ||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Accounts payable | $ | 17,068 | $ | 8,839 | $ | 13,736 | $ | 8,839 | ||||||||
Accrued expenses | 16,240 | 13,202 | 15,079 | 13,202 | ||||||||||||
Current portion of deferred revenue | 72,373 | 67,563 | 41,014 | 67,563 | ||||||||||||
Current portion of operating lease liability | 12,084 | 11,733 | 11,685 | 11,733 | ||||||||||||
Income tax liability | 254 | — | ||||||||||||||
Total current liabilities | 118,019 | 101,337 | 81,514 | 101,337 | ||||||||||||
Contingent consideration | 108,251 | 152,230 | 112,493 | 152,230 | ||||||||||||
Deferred revenue, net of current portion | 226,876 | 228,659 | 252,055 | 228,659 | ||||||||||||
Operating lease liability, net of current portion | 48,604 | 50,953 | 46,171 | 50,953 | ||||||||||||
Total liabilities | 501,750 | 533,179 | 492,233 | 533,179 | ||||||||||||
Commitments and contingencies (Notes 3 and 12) | 0 | 0 | 0 | 0 | ||||||||||||
Stockholders’ equity: | ||||||||||||||||
Preferred stock, $0.001 par value; 10,000,000 shares authorized as of March 31, 2021 and December 31, 2020; 0 shares issued and outstanding as of March 31, 2021 and December 31, 2020 | 0 | — | ||||||||||||||
Common stock, $0.001 par value; 200,000,000 shares authorized as of March 31, 2021 and December 31, 2020; 75,217,672 shares and 75,029,625 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively | 75 | 75 | ||||||||||||||
Preferred stock, $0.001 par value; 10,000,000 shares authorized as of June 30, 2021 and December 31, 2020; 0 shares issued and outstanding as of June 30, 2021 and December 31, 2020 | 0 | — | ||||||||||||||
Common stock, $0.001 par value; 200,000,000 shares authorized as of June 30, 2021 and December 31, 2020; 75,343,712 shares and 75,029,625 shares June 30, 2021 and December 31, 2020, respectively | 75 | 75 | ||||||||||||||
Additional paid-in capital | 775,499 | 769,965 | 782,144 | 769,965 | ||||||||||||
Accumulated deficit | (386,761 | ) | (413,283 | ) | (369,617 | ) | (413,283 | ) | ||||||||
Accumulated other comprehensive income | 77 | — | 35 | — | ||||||||||||
Total stockholders’ equity | 388,890 | 356,757 | 412,637 | 356,757 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 890,640 | $ | 889,936 | $ | 904,870 | $ | 889,936 | ||||||||
Three Months Ended March 31, | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Collaboration revenue | $ | 34,600 | $ | 4,654 | $ | 72,649 | $ | 16,319 | $ | 107,249 | $ | 20,974 | ||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Research and development | 41,140 | 21,439 | 40,477 | 29,002 | 81,617 | 50,442 | ||||||||||||||||||
General and administrative | 10,817 | 7,458 | 11,921 | 8,601 | 22,738 | 16,060 | ||||||||||||||||||
Change in fair value of contingent consideration | (43,979 | ) | (9,452 | ) | 4,242 | 15,347 | (39,737 | ) | 5,895 | |||||||||||||||
Total operating expenses | 7,978 | 19,445 | 56,640 | 52,950 | 64,618 | 72,397 | ||||||||||||||||||
Income (loss) from operations | 26,622 | (14,791 | ) | 16,009 | (36,631 | ) | 42,631 | (51,423 | ) | |||||||||||||||
Other income, net | 154 | 509 | 154 | 343 | 308 | 853 | ||||||||||||||||||
Income (loss) before income tax provision | 26,776 | (14,282 | ) | |||||||||||||||||||||
Income tax provision | (254 | ) | — | |||||||||||||||||||||
Income (loss) before income tax es | 16,163 | (36,288 | ) | 42,939 | (50,570 | ) | ||||||||||||||||||
Income tax benefit | 981 | — | 727 | — | ||||||||||||||||||||
Net income (loss) | $ | 26,522 | $ | (14,282 | ) | $ | 17,144 | $ | (36,288 | ) | $ | 43,666 | $ | (50,570 | ) | |||||||||
Net income (loss) per share—basic | $ | 0.35 | $ | (0.24 | ) | $ | 0.23 | $ | (0.58 | ) | $ | 0.58 | $ | (0.83 | ) | |||||||||
Weighted average common shares outstanding—basic | 75,189,696 | 60,008,217 | 75,254,186 | 62,282,291 | 75,222,119 | 61,145,254 | ||||||||||||||||||
Net income (loss) per share—diluted | $ | 0.34 | $ | (0.24 | ) | $ | 0.21 | $ | (0.58 | ) | $ | 0.55 | $ | (0.83 | ) | |||||||||
Weighted average common shares outstanding—diluted | 79,101,624 | 60,008,217 | 80,026,488 | 62,282,291 | 79,994,422 | 61,145,254 | ||||||||||||||||||
Three Months Ended March 31, | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Net income (loss) | $ | 26,522 | $ | (14,282 | ) | $ | 17,144 | $ | (36,288 | ) | $ | 43,666 | $ | (50,570 | ) | |||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||
Unrealized gains on available-for-sale | 77 | 114 | ||||||||||||||||||||||
Unrealized gains (losses) on available-for-sale | (42 | ) | (315 | ) | 35 | (201 | ) | |||||||||||||||||
Comprehensive income (loss) | $ | 26,599 | $ | (14,168 | ) | $ | 17,102 | $ | (36,603 | ) | $ | 43,701 | $ | (50,771 | ) | |||||||||
Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income | Total Stockholders’ Equity | ||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||
Balances at December 31, 2020 | 75,029,625 | $ | 75 | $ | 769,965 | $ | (413,283 | ) | $ | 0 | $ | 356,757 | ||||||||||||
Exercise of stock options | 188,047 | — | 1,550 | — | — | 1,550 | ||||||||||||||||||
Stock-based compensation expense | — | — | 3,984 | — | — | 3,984 | ||||||||||||||||||
Unrealized gains on available-for-sale | — | — | — | — | 77 | 77 | ||||||||||||||||||
Net income | — | — | — | 26,522 | — | 26,522 | ||||||||||||||||||
Balances at March 31, 2021 | 75,217,672 | $ | 75 | $ | 775,499 | $ | (386,761 | ) | $ | 77 | $ | 388,890 | ||||||||||||
Common Stock | Additional Paid-in | Accumulated | Accumulated Other Comprehensive | Total Stockholders’ | ||||||||||||||||||||
Shares | Amount | Capital | Deficit | Income | Equity | |||||||||||||||||||
Balances at December 31, 2020 | 75,029,625 | $ | 75 | $ | 769,965 | $ | (413,283 | ) | $ | 0 | $ | 356,757 | ||||||||||||
Exercise of stock options | 188,047 | — | 1,550 | — | — | 1,550 | ||||||||||||||||||
Stock-based compensation expense | — | — | 3,984 | — | — | 3,984 | ||||||||||||||||||
Unrealized gains on available-for-sale | — | — | — | — | 77 | 77 | ||||||||||||||||||
Net income | — | — | — | 26,522 | — | 26,522 | ||||||||||||||||||
Balances at March 31, 2021 | 75,217,672 | 75 | 775,499 | (386,761 | ) | 77 | 388,890 | |||||||||||||||||
Exercise of stock options | 98,852 | — | 819 | — | — | 819 | ||||||||||||||||||
Issuance of common stock under employee stock purchase plan | 27,188 | — | 490 | — | — | 490 | ||||||||||||||||||
Stock-based compensation expense | — | — | 5,336 | — | — | 5,336 | ||||||||||||||||||
Unrealized losses on available-for-sale | — | — | — | — | (42 | ) | (42 | ) | ||||||||||||||||
Net income | — | — | — | 17,144 | — | 17,144 | ||||||||||||||||||
Balances at June 30, 2021 | 75,343,712 | $ | 75 | $ | 782,144 | $ | (369,617 | ) | $ | 35 | $ | 412,637 | ||||||||||||
Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income | Total Stockholders’ Equity | ||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||
Balances at December 31, 2019 | 60,022,067 | $ | 60 | $ | 512,231 | $ | (359,496 | ) | $ | 741 | $ | 153,536 | ||||||||||||
Exercise of stock options | 15,596 | — | 132 | — | — | 132 | ||||||||||||||||||
Stock-based compensation expense | — | — | 3,172 | — | — | 3,172 | ||||||||||||||||||
Unrealized gains on available-for-sale | — | — | — | — | 114 | 114 | ||||||||||||||||||
Net loss | — | — | — | (14,282 | ) | — | (14,282 | ) | ||||||||||||||||
Balances at March 31, 2020 | 60,037,663 | $ | 60 | $ | 515,535 | $ | (373,778 | ) | $ | 855 | $ | 142,672 | ||||||||||||
Common Stock | Additional Paid-in | Accumulated | Accumulated Other Comprehensive | Total Stockholders’ | ||||||||||||||||||||
Shares | Amount | Capital | Deficit | Income | Equity | |||||||||||||||||||
Balances at December 31, 2019 | 60,022,067 | $ | 60 | $ | 512,231 | $ | (359,496 | ) | $ | 741 | $ | 153,536 | ||||||||||||
Exercise of stock options | 15,596 | — | 132 | — | — | 132 | ||||||||||||||||||
Stock-based compensation expense | — | — | 3,172 | — | — | 3,172 | ||||||||||||||||||
Unrealized gains on available-for-sale | — | — | — | — | 114 | 114 | ||||||||||||||||||
Net loss | — | — | — | (14,282 | ) | — | (14,282 | ) | ||||||||||||||||
Balances at March 31, 2020 | 60,037,663 | 60 | 515,535 | (373,778 | ) | 855 | 142,672 | |||||||||||||||||
Issuance of common stock in connection with public offerings, net of underwriting discounts and commissions and offering costs | 8,544,982 | 9 | 153,602 | — | — | 153,611 | ||||||||||||||||||
Exercise of stock options | 776,864 | — | 5,699 | — | — | 5,699 | ||||||||||||||||||
Stock-based compensation expense | — | — | 6,014 | — | — | 6,014 | ||||||||||||||||||
Unrealized losses onavailable-for-sale | — | — | — | — | (315 | ) | (315 | ) | ||||||||||||||||
Net loss | — | — | — | (36,288 | ) | — | (36,288 | ) | ||||||||||||||||
Balances at June 30, 2020 | 69,359,509 | $ | 69 | $ | 680,850 | $ | (410,066 | ) | $ | 540 | $ | 271,393 | ||||||||||||
Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
Cash flows from operating activities: | ||||||||
Net income (loss) | $ | 26,522 | $ | (14,282 | ) | |||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||
Depreciation and amortization expense | 2,841 | 1,351 | ||||||
Stock-based compensation expense | 3,984 | 3,172 | ||||||
Change in fair value of contingent consideration | (43,979 | ) | (9,452 | ) | ||||
Changes in operating assets and liabilities: | ||||||||
Collaboration receivables | 3,358 | (1,633 | ) | |||||
Prepaid expenses and other assets | (4,672 | ) | 2,647 | |||||
Right-of-use | 3,049 | 132 | ||||||
Long-term prepaid rent | (1,298 | ) | (3,044 | ) | ||||
Accounts payable | 8,114 | (9,545 | ) | |||||
Accrued expenses | 2,733 | 584 | ||||||
Income tax liabilit y | 254 | — | ||||||
Lease liability | (3,244 | ) | (110 | ) | ||||
Deferred revenue | 3,027 | (1,267 | ) | |||||
Net cash provided by (used in) operating activities | 689 | (31,447 | ) | |||||
Cash flows from investing activities: | ||||||||
Purchases of investments | (186,929 | ) | (27,409 | ) | ||||
Sales and maturities of investments | — | 73,994 | ||||||
Purchases of property and equipment | (1,591 | ) | (2,325 | ) | ||||
Net cash provided by (used in) investing activities | (188,520 | ) | 44,260 | |||||
Cash flows from financing activities: | ||||||||
Payments of public offering costs | — | (57 | ) | |||||
Proceeds from option exercises | 1,550 | 132 | ||||||
Net cash provided by financing activities | 1,550 | 75 | ||||||
Net increase (decrease) in cash, cash equivalents and restricted cash: | (186,281 | ) | 12,888 | |||||
Cash, cash equivalents and restricted cash at beginning of period | 346,853 | 85,530 | ||||||
Cash, cash equivalents and restricted cash at end of period | $ | 160,572 | $ | 98,418 | ||||
Cash, cash equivalents and restricted cash at end of period: | ||||||||
Cash and cash equivalents | $ | 155,746 | $ | 97,468 | ||||
Restricted cash | 4,826 | 950 | ||||||
Total cash, cash equivalents and restricted cash at end of period | $ | 160,572 | $ | 98,418 | ||||
Supplemental disclosure of non-cash investing and financing activities: | ||||||||
Purchases of property and equipment included in accounts payable and accrued expenses | $ | 826 | $ | 764 | ||||
Deferred offering costs included in accounts payable and accrued expenses | $ | — | $ | 120 |
Six Months Ended June 30, | ||||||||
2021 | 2020 | |||||||
Cash flows from operating activities: | ||||||||
Net income (loss) | $ | 43,666 | $ | (50,570 | ) | |||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||
Depreciation and amortization expense | 6,471 | 5,617 | ||||||
Stock-based compensation expense | 9,320 | 9,186 | ||||||
Change in fair value of contingent consideration | (39,737 | ) | 5,895 | |||||
Changes in operating assets and liabilities: | ||||||||
Collaboration receivables | 2,568 | (10,535 | ) | |||||
Prepaid expenses and other assets | (8,521 | ) | 1,472 | |||||
Right-of-use | 6,210 | 270 | ||||||
Long-term prepaid rent | (2,395 | ) | (7,381 | ) | ||||
Accounts payable | 3,900 | (2,783 | ) | |||||
Accrued expenses | 1,571 | 4,013 | ||||||
Lease liability | (6,206 | ) | (244 | ) | ||||
Deferred revenue | (3,153 | ) | (6,429 | ) | ||||
Net cash provided by (used in) operating activities | 13,694 | (51,489 | ) | |||||
Cash flows from investing activities: | ||||||||
Purchases of investments | (185,690 | ) | (27,409 | ) | ||||
Sales and maturities of investments | 80,000 | 111,277 | ||||||
Purchases of property and equipment | (3,419 | ) | (4,446 | ) | ||||
Net cash provided by (used in) investing activities | (109,109 | ) | 79,422 | |||||
Cash flows from financing activities: | ||||||||
Proceeds from public offerings, net of underwriting discounts and commissions | — | 154,292 | ||||||
Payments of public offering costs | — | (443 | ) | |||||
Proceeds from option exercises | 2,369 | 5,831 | �� | |||||
Proceeds from issuance of common stock under employee stock purchase plan | 490 | — | ||||||
Net cash provided by financing activities | 2,859 | 159,680 | ||||||
Net increase (decrease) in cash, cash equivalents and restricted cash: | (92,556 | ) | 187,613 | |||||
Cash, cash equivalents and restricted cash at beginning of period | 346,853 | 85,530 | ||||||
Cash, cash equivalents and restricted cash at end of period | $ | 254,297 | $ | 273,143 | ||||
Cash, cash equivalents and restricted cash at end of period: | ||||||||
Cash and cash equivalents | $ | 249,471 | $ | 272,193 | ||||
Restricted cash | 4,826 | 950 | ||||||
Total cash, cash equivalents and restricted cash at end of period | $ | 254,297 | $ | 273,143 | ||||
Purchases of property and equipment included in accounts payable and accrued expenses | $ | 1,707 | $ | 718 | ||||
Offering costs included in accrued expenses | $ | — | $ | 238 |
Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
Collaboration revenue | $ | 34,600 | $ | 4,654 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Collaboration revenue | $ | 72,649 | $ | 16,319 | $ | 107,249 | $ | 20,974 |
March 31, | December 31, | |||||||
2021 | 2020 | |||||||
Contract liabilities | ||||||||
Deferred revenue | $ | 299,249 | $ | 296,222 |
June 30, | December 31, | |||||||
2021 | 2020 | |||||||
Contract liabilities | ||||||||
Deferred revenue | $ | 293,069 | $ | 296,222 |
March 31, 2021 | ||||||||||||||||
Estimated Life | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||
(In thousands) | ||||||||||||||||
Definite-lived intangible assets: | ||||||||||||||||
MRT | 6 years | $ | 45,992 | $ | (11,177 | ) | $ | 34,815 | ||||||||
Indefinite-lived intangible assets: | ||||||||||||||||
IPR&D - CF | Indefinite | 42,291 | — | 42,291 | ||||||||||||
Total intangible assets, net | $ | 88,283 | $ | (11,177 | ) | $ | 77,106 | |||||||||
December 31, 2020 | ||||||||||||||||
Estimated Life | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||
(In | ||||||||||||||||
Definite-lived intangible assets: | ||||||||||||||||
MRT | 6 years | $ | 45,992 | $ | (9,156 | ) | $ | 36,836 | ||||||||
Indefinite-lived intangible assets: | ||||||||||||||||
IPR&D - CF | Indefinite | 42,291 | — | 42,291 | ||||||||||||
Total intangible assets, net | $ | 88,283 | $ | (9,156 | ) | $ | 79,127 | |||||||||
June 30, 2021 | ||||||||||||||||
Estimated Life | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||
(In thousands) | ||||||||||||||||
Definite-lived intangible assets: | ||||||||||||||||
MRT | 6 years | $ | 45,992 | $ | (13,776 | ) | $ | 32,216 | ||||||||
Indefinite-lived intangible assets: | ||||||||||||||||
IPR&D—CF | Indefinite | 42,291 | — | 42,291 | ||||||||||||
Total intangible assets, net | $ | 88,283 | $ | (13,776 | ) | $ | 74,507 | |||||||||
December 31, 2020 | ||||||||||||||||
Estimated Life | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||
(In thousands) | ||||||||||||||||
Definite-lived intangible assets: | ||||||||||||||||
MRT | 6 years | $ | 45,992 | $ | (9,156 | ) | $ | 36,836 | ||||||||
Indefinite-lived intangible assets: | ||||||||||||||||
IPR&D—CF | Indefinite | 42,291 | — | 42,291 | ||||||||||||
Total intangible assets, net | $ | 88,283 | $ | (9,156 | ) | $ | 79,127 | |||||||||
Fair Value Measurements as of June 30, 2021 Using: | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Money market funds | $ | 0 | $ | 167,938 | $ | 0 | $ | 167,938 | ||||||||
U.S. treasuries | 0 | 359,871 | 0 | 359,871 | ||||||||||||
U.S. government agency bonds | 0 | 57,856 | 0 | 57,856 | ||||||||||||
$ | 0 | $ | 585,665 | $ | 0 | $ | 585,665 | |||||||||
Liabilities: | ||||||||||||||||
Contingent consideration | $ | 0 | $ | 0 | $ | 112,493 | $ | 112,493 | ||||||||
$ | 0 | $ | 0 | $ | 112,493 | $ | 112,493 | |||||||||
Fair Value Measurements as of March 31, 2021 Using: | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Money market funds | $ | 0 | $ | 86,637 | $ | 0 | $ | 86,637 | ||||||||
U.S. treasuries | 0 | 441,082 | 0 | 441,082 | ||||||||||||
U.S. government agency bonds | 0 | 57,925 | 0 | 57,925 | ||||||||||||
$ | 0 | $ | 585,644 | $ | 0 | $ | 585,644 | |||||||||
Liabilities: | ||||||||||||||||
Contingent consideration | $ | 0 | $ | 0 | $ | 108,251 | $ | 108,251 | ||||||||
$ | 0 | $ | 0 | $ | 108,251 | $ | 108,251 | |||||||||
Fair Value Measurements as of December 31, 2020 Using: | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Money market funds | $ | — | $ | 273,827 | $ | — | $ | 273,827 | ||||||||
U.S. treasuries | 0 | 292,001 | — | 292,001 | ||||||||||||
U.S. government agency bonds | — | 20,000 | — | 20,000 | ||||||||||||
$ | — | $ | 585,828 | $ | — | $ | 585,828 | |||||||||
Liabilities: | ||||||||||||||||
Contingent consideration | $ | — | $ | — | $ | 152,230 | $ | 152,230 | ||||||||
$ | — | $ | — | $ | 152,230 | $ | 152,230 | |||||||||
Fair Value Measurements as of December 31, 2020 Using: | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Money market funds | $ | — | $ | 273,827 | $ | — | $ | 273,827 | ||||||||
U.S. treasuries | 0 | 292,001 | — | 292,001 | ||||||||||||
U.S. government agency bonds | — | 20,000 | — | 20,000 | ||||||||||||
$ | — | $ | 585,828 | $ | — | $ | 585,828 | |||||||||
Liabilities: | ||||||||||||||||
Contingent consideration | $ | — | $ | — | $ | 152,230 | $ | 152,230 | ||||||||
$ | — | $ | — | $ | 152,230 | $ | 152,230 | |||||||||
March 31, 2021 | December 31, 2020 | |||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||
Due within one year | $ | 299,369 | $ | 299,451 | $ | 201,606 | $ | 201,596 | ||||||||
Due after one year through two years | 199,561 | 199,556 | 110,395 | 110,405 | ||||||||||||
Total available-for-sale | $ | 498,930 | $ | 499,007 | $ | 312,001 | $ | 312,001 | ||||||||
June 30, 2021 | December 31, 2020 | |||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||
Due within one year | $ | 305,053 | $ | 305,095 | $ | 201,606 | $ | 201,596 | ||||||||
Due after one year through two years | 112,639 | 112,632 | 110,395 | 110,405 | ||||||||||||
Total available-for-sale | $ | 417,692 | $ | 417,727 | $ | 312,001 | $ | 312,001 | ||||||||
Unobservable Inputs Projected Year of Payment | Fair Value at | |||||||||||||||||||||||
March 31, | December 31, | Unobservable Inputs | Fair Value at | |||||||||||||||||||||
2021 | 2020 | Projected Year of Payment | June 30, | December 31, | ||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||
Earnout payments | 2027 - 2039 | $ | 99,122 | $ | 142,250 | 2027 - 2039 | $ | 103,093 | $ | 142,250 | ||||||||||||||
Milestone payments | 2027 - 2032 | 9,129 | 9,980 | 2027 - 2031 | 9,400 | 9,980 | ||||||||||||||||||
$ | 108,251 | $ | 152,230 | $ | 112,493 | $ | 152,230 | |||||||||||||||||
Fair Value | Fair Value | |||||||
Balance as of December 31, 2020 | $ | 152,230 | $ | 152,230 | ||||
Decrease in fair value of contingent consideration | (43,979 | ) | (39,737 | ) | ||||
Balance as of March 31, 2021 | $ | 108,251 | ||||||
Balance as of June 30, 2021 | $ | 112,493 | ||||||
March 31, 2021 | December 2020 | |||||||
Laboratory equipment | $ | 17,403 | $ | 12,710 | ||||
Computer equipment | 933 | 922 | ||||||
Office equipment | 941 | 941 | ||||||
Leasehold improvements | 4,822 | 5,730 | ||||||
Construction in progress | 2,498 | 5,189 | ||||||
26,597 | 25,492 | |||||||
Less: Accumulated depreciation and amortization | (10,034 | ) | (10,120 | ) | ||||
$ | 16,563 | $ | 15,372 | |||||
June 30, | December 31, | |||||||
2021 | 2020 | |||||||
Laboratory equipment | $ | 18,949 | $ | 12,710 | ||||
Computer equipment | 932 | 922 | ||||||
Office equipment | 941 | 941 | ||||||
Leasehold improvements | 5,557 | 5,730 | ||||||
Construction in progress | 2,882 | 5,189 | ||||||
29,261 | 25,492 | |||||||
Less: Accumulated depreciation and amortization | (11,012 | ) | (10,120 | ) | ||||
$ | 18,249 | $ | 15,372 | |||||
March 31, 2021 | December 31, 2020 | June 30, | December 31, | |||||||||||||
2021 | 2020 | |||||||||||||||
Accrued employee compensation and benefits | $ | 5,326 | $ | 5,600 | ||||||||||||
Accrued external research and development expenses | $ | 5,100 | $ | 2,805 | 4,420 | 2,805 | ||||||||||
Accrued employee compensation and benefits | 3,425 | 5,600 | ||||||||||||||
Accrued consultant and professional fees | 1,969 | 1,489 | 2,468 | 1,489 | ||||||||||||
Other | 5,746 | 3,308 | 2,865 | 3,308 | ||||||||||||
$ | 16,240 | $ | 13,202 | $ | 15,079 | $ | 13,202 | |||||||||
Number of Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term | Intrinsic Value | Number of Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term | Intrinsic Value | |||||||||||||||||||||||||
(in years) | (in years) | |||||||||||||||||||||||||||||||
Outstanding as of December 31, 2020 | 9,557,391 | $ | 8.79 | 7.92 | $ | 93,256 | 9,557,391 | $ | 8.79 | 7.92 | $ | 93,256 | ||||||||||||||||||||
Granted | 2,324,110 | $ | 22.77 | 3,126,560 | $ | 21.81 | ||||||||||||||||||||||||||
Exercised | (188,047 | ) | $ | 8.24 | (286,899 | ) | $ | 8.25 | ||||||||||||||||||||||||
Forfeited | (41,941 | ) | $ | 14.88 | (154,303 | ) | $ | 14.68 | ||||||||||||||||||||||||
Outstanding as of March 31, 2021 | 11,651,513 | $ | 11.57 | 8.18 | $ | 73,830 | ||||||||||||||||||||||||||
Outstanding as of June 30, 2021 | 12,242,749 | $ | 12.06 | 8.07 | $ | 189,483 | ||||||||||||||||||||||||||
Exercisable as of March 31, 2021 | 5,456,919 | $ | 7.84 | 7.21 | $ | 47,181 | ||||||||||||||||||||||||||
Vested and expected to vest as of March 31, 2021 | 11,651,513 | $ | 11.57 | 8.18 | $ | 73,830 | ||||||||||||||||||||||||||
Exercisable as of June 30, 2021 | 5,953,908 | $ | 8.14 | 7.07 | $ | 115,421 | ||||||||||||||||||||||||||
Vested and expected to vest as of June 30, 2021 | 12,242,749 | $ | 12.06 | 8.07 | $ | 189,483 |
Six Months Ended June 30, | ||||||||
2021 | 2020 | |||||||
Risk-free interest rate | 1.03 | % | 0.79 | % | ||||
Expected term (in years) | 6.1 | 6.1 | ||||||
Expected volatility | 69.7 | % | 68.6 | % | ||||
Expected dividend yield | 0 | % | 0 | % |
Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
Risk-free interest rate | 1.01 | % | 0.86 | % | ||||
Expected term (in years) | 6.1 | 6.1 | ||||||
Expected volatility | 69.9 | % | 68.0 | % | ||||
Expected dividend yield | 0 | % | 0 | % |
Three Months Ended March 31, | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Research and development expenses | $ | 2,080 | $ | 1,454 | $ | 2,841 | $ | 4,091 | $ | 4,921 | $ | 5,545 | ||||||||||||
General and administrative expenses | 1,904 | 1,718 | 2,495 | 1,923 | 4,399 | 3,641 | ||||||||||||||||||
$ | 3,984 | $ | 3,172 | $ | 5,336 | $ | 6,014 | $ | 9,320 | $ | 9,186 | |||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Basic net income (loss) per common share: | ||||||||||||||||
Numerator: | ||||||||||||||||
Net income (loss) | $ | 17,144 | $ | (36,288 | ) | $ | 43,666 | $ | (50,570 | ) | ||||||
Denominator: | ||||||||||||||||
Weighted average common shares outstanding—basic | 75,254,186 | 62,282,291 | 75,222,119 | 61,145,254 | ||||||||||||
Net income (loss) per share—basic | $ | 0.23 | $ | (0.58 | ) | $ | 0.58 | $ | (0.83 | ) | ||||||
Diluted net income (loss) per common share: | ||||||||||||||||
Numerator: | ||||||||||||||||
Net income (loss) | $ | 17,144 | $ | (36,288 | ) | $ | 43,666 | $ | (50,570 | ) | ||||||
Denominator: | ||||||||||||||||
Weighted average common shares outstanding—diluted | 80,026,488 | 62,282,291 | 79,994,422 | 61,145,254 | ||||||||||||
Net income (loss) per share—diluted | $ | 0.21 | $ | (0.58 | ) | $ | 0.55 | $ | (0.83 | ) |
Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
Basic net income (loss) per common share: | ||||||||
Numerator: | ||||||||
Net income (loss) | $ | 26,522 | $ | (14,282 | ) | |||
Denominator: | ||||||||
Weighted average common shares outstanding—basic | 75,189,696 | 60,008,217 | ||||||
Net income (loss) per share—basic | $ | 0.35 | $ | (0.24 | ) | |||
Diluted net income (loss) per common share: | ||||||||
Numerator: | ||||||||
Net income (loss) | $ | 26,522 | $ | (14,282 | ) | |||
Denominator: | ||||||||
Weighted average common shares outstanding—diluted | 79,101,624 | 60,008,217 | ||||||
Net income (loss) per share—diluted | $ | 0.34 | $ | (0.24 | ) |
Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
Options to purchase common stock | 3,053,207 | 10,983,227 | ||||||
Unvested restricted common stock | 0 | 6,763 | ||||||
3,053,207 | 10,989,990 | |||||||
Six Months Ended June 30, | ||||||||
2021 | 2020 | |||||||
Options to purchase common stock | 3,608,932 | 10,494,989 | ||||||
Unvested restricted common stock | 0 | 1,691 | ||||||
3,608,932 | 10,496,680 | |||||||
Three Months Ended March 31, | Six Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Lease cost | ||||||||||||||||
Operating lease cost | $ | 4,772 | $ | 673 | $ | 9,597 | $ | 1,346 | ||||||||
Total lease cost | $ | 4,772 | $ | 673 | $ | 9,597 | $ | 1,346 | ||||||||
Other information | ||||||||||||||||
Operating cash flows from operating leases | $ | 4,968 | $ | 650 | $ | 9,593 | $ | 1,320 | ||||||||
Operating lease liabilities arising from obtaining right-of-use | 1,246 | — | 1,376 | — | ||||||||||||
Weighted-average remaining lease term | 5 years | 8 years | 5 years | 8 years | ||||||||||||
Weighted-average discount rate | 11.9 | % | 17.5 | % | 12.0 | % | 17.5 | % |
March 31, 2021 | December 31, 2020 | June 30, 2021 | December 31, 2020 | |||||||||||||
2021 | $ | 14,421 | $ | 18,067 | $ | 9,971 | $ | 18,067 | ||||||||
2022 | 15,178 | 15,178 | 15,178 | 15,178 | ||||||||||||
2023 | 15,591 | 15,591 | 15,591 | 15,591 | ||||||||||||
2024 | 16,050 | 16,050 | 16,050 | 16,050 | ||||||||||||
2025 | 12,030 | 12,029 | 12,029 | 12,029 | ||||||||||||
2026 and thereafter | 7,134 | 7,134 | 7,134 | 7,134 | ||||||||||||
Total future minimum lease payments | 80,404 | 84,049 | 75,953 | 84,049 | ||||||||||||
Less: imputed interest | (19,716 | ) | (21,363 | ) | (18,097 | ) | (21,363 | ) | ||||||||
Present value of lease liabilities | $ | 60,688 | $ | 62,686 | $ | 57,856 | $ | 62,686 | ||||||||
Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
(in thousands) | ||||||||
Discovery program | $ | 8,616 | $ | 3,775 | ||||
Vaccine program | 7,570 | 2,589 | ||||||
MRT5005 program | 6,214 | 6,094 | ||||||
Unallocated research and development expenses | 18,740 | 8,981 | ||||||
Total research and development expenses | $ | 41,140 | $ | 21,439 | ||||
Three Months Ended March 31, | Three Months Ended June 30, | |||||||||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | |||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||
Collaboration revenue | $ | 34,600 | $ | 4,654 | $ | 29,946 | $ | 72,649 | $ | 16,319 | $ | 56,330 | ||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Research and development | 41,140 | 21,439 | 19,701 | 40,477 | 29,002 | 11,475 | ||||||||||||||||||
General and administrative | 10,817 | 7,458 | 3,359 | 11,921 | 8,601 | 3,320 | ||||||||||||||||||
Change in fair value of contingent consideration | (43,979 | ) | (9,452 | ) | (34,527 | ) | 4,242 | 15,347 | (11,105 | ) | ||||||||||||||
Total operating expenses | 7,978 | 19,445 | (11,467 | ) | 56,640 | 52,950 | 3,690 | |||||||||||||||||
Income (loss) from operations | 26,622 | (14,791 | ) | 41,413 | 16,009 | (36,631 | ) | 52,640 | ||||||||||||||||
Other income, net | 154 | 509 | (355 | ) | 154 | 343 | (189 | ) | ||||||||||||||||
Income (loss) before income tax provision | 26,776 | (14,282 | ) | 41,058 | ||||||||||||||||||||
Income tax provision | (254 | ) | — | (254 | ) | |||||||||||||||||||
Income (loss) before income taxes | 16,163 | (36,288 | ) | 52,451 | ||||||||||||||||||||
Income tax benefit | 981 | — | 981 | |||||||||||||||||||||
Net income (loss) | $ | 26,522 | $ | (14,282 | ) | $ | 40,804 | $ | 17,144 | $ | (36,288 | ) | $ | 53,432 | ||||||||||
Three Months Ended June 30, | ||||||||||||
2021 | 2020 | Change | ||||||||||
(in thousands) | ||||||||||||
Direct external research and development expenses by program: | ||||||||||||
Discovery program | $ | 8,234 | $ | 2,033 | $ | 6,201 | ||||||
Vaccine program | 8,348 | 9,387 | (1,039 | ) | ||||||||
MRT5005 program | 3,314 | 3,350 | (36 | ) | ||||||||
Unallocated research and development expenses: | ||||||||||||
Personnel related (including stock-based compensation) | 10,300 | 8,791 | 1,509 | |||||||||
Other | 10,281 | 5,441 | 4,840 | |||||||||
Total research and development expenses | $ | 40,477 | $ | 29,002 | $ | 11,475 | ||||||
Six Months Ended June 30, | ||||||||||||
2021 | 2020 | Change | ||||||||||
(in thousands) | ||||||||||||
Collaboration revenue | $ | 107,249 | $ | 20,974 | $ | 86,275 | ||||||
Operating expenses: | ||||||||||||
Research and development | 81,617 | 50,442 | 31,175 | |||||||||
General and administrative | 22,738 | 16,060 | 6,678 | |||||||||
Change in fair value of contingent consideration | (39,737 | ) | 5,895 | (45,632 | ) | |||||||
Total operating expenses | 64,618 | 72,397 | (7,779 | ) | ||||||||
Income (loss) from operations | 42,631 | (51,423 | ) | 94,054 | ||||||||
Other income, net | 308 | 853 | (545 | ) | ||||||||
Income (loss) before income taxes | 42,939 | (50,570 | ) | 93,509 | ||||||||
Income tax benefit | 727 | — | 727 | |||||||||
Net income (loss) | $ | 43,666 | $ | (50,570 | ) | $ | 94,236 | |||||
Three Months Ended March 31, | Six Months Ended June 30, | |||||||||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | |||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||
Direct external research and development expenses by program: | Direct external research and development expenses by program: | |||||||||||||||||||||||
Discovery program | $ | 8,616 | $ | 3,775 | $ | 4,841 | $ | 16,850 | $ | 5,807 | $ | 11,043 | ||||||||||||
Vaccine program | 7,570 | 2,589 | 4,981 | 15,917 | 11,976 | 3,941 | ||||||||||||||||||
MRT5005 program | 6,214 | 6,094 | 120 | 9,528 | 9,444 | 84 | ||||||||||||||||||
Unallocated research and development expenses: | ||||||||||||||||||||||||
Personnel related (including stock-based compensation) | 8,757 | 5,985 | 2,772 | 19,058 | 14,777 | 4,281 | ||||||||||||||||||
Other | 9,983 | 2,996 | 6,987 | 20,264 | 8,438 | 11,826 | ||||||||||||||||||
Total research and development expenses | $ | 41,140 | $ | 21,439 | $ | 19,701 | $ | 81,617 | $ | 50,442 | $ | 31,175 | ||||||||||||
Three Months Ended March 31, | Six Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
(in thousands) | (in thousands) | |||||||||||||||
Net cash provided by (used in) operating activities | $ | 689 | $ | (31,447 | ) | $ | 13,694 | $ | (51,489 | ) | ||||||
Net cash provided by (used in) investing activities | (188,520 | ) | 44,260 | (109,109 | ) | 79,422 | ||||||||||
Net cash provided by financing activities | 1,550 | 75 | 2,859 | 159,680 | ||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | $ | (186,281 | ) | $ | 12,888 | $ | (92,556 | ) | $ | 187,613 | ||||||
* | Filed herewith. |
** | Furnished herewith. |
+ | Indicates a management contract or compensatory arrangement. |
† | Submitted electronically herewith. |
Translate Bio, Inc. | ||||||
Date: | By: | /s/ Ronald C. Renaud, Jr. | ||||
Ronald C. Renaud, Jr. | ||||||
Chief Executive Officer | ||||||
Date: | By: | /s/ Brendan Smith | ||||
Brendan Smith | ||||||
Chief Financial Officer and Treasurer |