DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - shares | 9 Months Ended | |
Sep. 30, 2017 | Nov. 01, 2017 | |
DOCUMENT AND ENTITY INFORMATION | ||
Entity Registrant Name | RIGEL PHARMACEUTICALS INC | |
Entity Central Index Key | 1,034,842 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 146,491,092 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 |
BALANCE SHEETS
BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 25,879 | $ 17,632 |
Short-term investments | 42,197 | 57,134 |
Prepaid and other current assets | 1,485 | 1,448 |
Total current assets | 69,561 | 76,214 |
Property and equipment, net | 919 | 1,156 |
Other assets | 770 | 764 |
Total assets | 71,250 | 78,134 |
Current liabilities: | ||
Accounts payable | 2,193 | 5,563 |
Accrued compensation | 4,743 | 4,085 |
Accrued research and development | 4,408 | 5,881 |
Other accrued liabilities | 1,517 | 1,033 |
Deferred liability - sublease, current portion | 1,248 | 3,222 |
Deferred rent, current portion | 897 | 2,804 |
Total current liabilities | 15,006 | 22,588 |
Long-term portion of deferred liability - sublease | 238 | |
Long-term portion of deferred rent | 279 | |
Other long-term liabilities | 77 | 2 |
Commitments | ||
Stockholders' equity: | ||
Preferred stock | ||
Common stock | 125 | 100 |
Additional paid-in capital | 1,169,032 | 1,115,807 |
Accumulated other comprehensive loss | (7) | (18) |
Accumulated deficit | (1,112,983) | (1,060,862) |
Total stockholders' equity | 56,167 | 55,027 |
Total liabilities and stockholders' equity | $ 71,250 | $ 78,134 |
CONDENSED STATEMENTS OF OPERATI
CONDENSED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
CONDENSED STATEMENTS OF OPERATIONS | ||||
Contract revenues from collaborations | $ 900 | $ 3,760 | $ 4,484 | $ 17,383 |
Costs and expenses: | ||||
Research and development | 10,808 | 16,171 | 34,708 | 51,812 |
General and administrative | 7,947 | 4,558 | 23,177 | 13,755 |
Restructuring charges | 5,770 | 5,770 | ||
Total costs and expenses | 18,755 | 26,499 | 57,885 | 71,337 |
Loss from operations | (17,855) | (22,739) | (53,401) | (53,954) |
Gain on disposal of assets | 732 | |||
Interest income | 195 | 110 | 548 | 328 |
Net loss | $ (17,660) | $ (22,629) | $ (52,121) | $ (53,626) |
Net loss per share, basic and diluted (in dollars per share) | $ (0.14) | $ (0.24) | $ (0.43) | $ (0.58) |
Weighted average shares used in computing net loss per share, basic and diluted (in shares) | 124,628 | 95,454 | 120,282 | 92,844 |
CONDENSED STATEMENTS OF COMPREH
CONDENSED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
CONDENSED STATEMENTS OF COMPREHENSIVE LOSS | ||||
Net loss | $ (17,660) | $ (22,629) | $ (52,121) | $ (53,626) |
Other comprehensive income (loss): | ||||
Net unrealized gain (loss) on short-term investments | 12 | (44) | 11 | 53 |
Comprehensive loss | $ (17,648) | $ (22,673) | $ (52,110) | $ (53,573) |
CONDENSED STATEMENTS OF CASH FL
CONDENSED STATEMENTS OF CASH FLOWS - USD ($) | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Operating activities | ||
Net loss | $ (52,121,000) | $ (53,626,000) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock-based compensation expense | 2,928,000 | 4,667,000 |
Gain on disposal of assets | (732,000) | |
Loss on sublease | 495,000 | |
Depreciation and amortization | 352,000 | 798,000 |
Non-cash restructuring charges | 818,000 | |
Net amortization of premium on short-term investment | (198,000) | |
Changes in assets and liabilities: | ||
Accounts receivable | 203,000 | |
Prepaid and other current assets | 16,000 | 1,253,000 |
Other assets | 96,000 | 130,000 |
Accounts payable | (3,390,000) | (1,245,000) |
Accrued compensation | 658,000 | (1,699,000) |
Accrued research and development | (1,473,000) | 2,733,000 |
Other accrued liabilities | 447,000 | (92,000) |
Deferred revenue | (13,427,000) | |
Deferred rent and other long term liabilities | (4,920,000) | (3,938,000) |
Net cash used in operating activities | (57,842,000) | (63,425,000) |
Investing activities | ||
Purchases of short-term investments | (64,235,000) | (82,523,000) |
Maturities of short-term investments | 79,381,000 | 106,091,000 |
Proceeds from disposal of assets | 732,000 | |
Capital expenditures | (111,000) | (798,000) |
Net cash provided by investing activities | 15,767,000 | 22,770,000 |
Financing activities | ||
Net proceeds from issuances of common stock upon exercise of options and participation in employee stock purchase plan | 1,580,000 | 932,000 |
Proceeds from sale and issuance of common stock, net of offering costs | 48,742,000 | 22,217,000 |
Net cash provided by financing activities | 50,322,000 | 23,149,000 |
Net increase (decrease) in cash and cash equivalents | 8,247,000 | (17,506,000) |
Cash and cash equivalents at beginning of period | 17,632,000 | 43,456,000 |
Cash and cash equivalents at end of period | $ 25,879,000 | $ 25,950,000 |
Nature of Operations
Nature of Operations | 9 Months Ended |
Sep. 30, 2017 | |
Nature of Operations | |
Nature of Operations | 1. Nature of Operations We were incorporated in the state of Delaware on June 14, 1996. We are engaged in the discovery and development of novel small molecule drugs that significantly improve the lives of patients with immune and hematological disorders, cancer and rare diseases. |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2017 | |
Basis of Presentation | |
Basis of Presentation | 2. Our accompanying unaudited condensed financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP), for interim financial information and pursuant to the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities Act of 1933, as amended (Securities Act). Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. These unaudited condensed financial statements include only normal and recurring adjustments that we believe are necessary to fairly state our financial position and the results of our operations and cash flows. Interim-period results are not necessarily indicative of results of operations or cash flows for a full-year or any subsequent interim period. The balance sheet at December 31, 2016 has been derived from audited financial statements at that date, but does not include all disclosures required by U.S. GAAP for complete financial statements. Because all of the disclosures required by U.S. GAAP for complete financial statements are not included herein, these interim unaudited condensed financial statements and the notes accompanying them should be read in conjunction with our audited financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2016. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results could differ from these estimates. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2017 | |
Recent Accounting Pronouncements | |
Recent Accounting Pronouncements | 3. Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09— Revenue from Contracts with Customers , which supersedes the revenue recognition requirements under ASC Topic 605, Revenue Recognition , and most industry-specific guidance under the ASC. The core principle of ASU No. 2014-09 is that an entity should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU No. 2014-09 defines a five step process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than required under existing U.S. GAAP including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. ASU No. 2014-09 also requires additional disclosures to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. ASU No. 2014-09 allows for either full retrospective or modified retrospective adoption. In July 2015, the FASB deferred by one year the effective date of ASU No. 2014-09 with the new effective date beginning after December 15, 2017, and the interim periods within that year and will allow early adoption for all entities as of the original effective date for public business entities, which was annual reporting periods beginning after December 15, 2016. We plan to adopt this new standard on January 1, 2018 using the modified retrospective approach. The adoption of ASU No. 2014-09 may have a material effect on our financial statements. To date, our revenues have been derived from license and collaboration agreements. The consideration we are eligible to receive under these agreements includes upfront payments, progress dependent contingent payments on events achieved by our collaboration partners, and royalties on net sales of products sold by such partners under the agreements. Each license and collaboration agreement is unique and will need to be assessed separately under the five-step process of the new standard. ASU No. 2014-09 differs from the current accounting standard in many respects, such as in the accounting for variable consideration, including milestone payments or contingent payments. Under our current accounting policy, we recognize contingent payments as revenue in the period that the payment-triggering event occurred or is achieved. However, under the new accounting standard, it is possible to start to recognize contingent payments before the payment-triggering event is completely achieved, subject to management’s assessment of whether it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. We have performed a preliminary assessment of the impact of the new standard on our active license and collaboration agreements and have identified the revenue streams. Although we are continuing to assess the impact of this new guidance, we believe that the most significant impact may relate to the timing of recognition of certain future milestone payments as revenue depending on the assessed probability of achievement for these milestones as of the date of adoption. In February 2016, the FASB issued ASU No. 2016-02— Leases , which is aimed at making leasing activities more transparent, and requires substantially all leases be recognized by lessees on their balance sheet as a right-of-use asset and corresponding lease liability, including leases currently accounted for as operating leases. The guidance is effective for all interim and annual reporting periods beginning after December 15, 2018. Early adoption is permitted. We plan to adopt this new standard on January 1, 2019. We are currently evaluating the potential impact of the adoption of ASU No. 2016-02 on our financial statements and cannot estimate the impact of adoption at this time. In March 2016, the FASB issued ASU No. 2016-09— Improvements to Employee Share-Based Payment Accounting , which is intended to simplify several aspects of the accounting for share-based payment award transactions, including the income tax consequences, an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows. We adopted ASU No. 2016-09 on January 1, 2017. Under this guidance, on a prospective basis, companies will no longer record excess tax benefits and certain tax deficiencies in additional paid-in capital. Instead, they will record all excess tax benefits and tax deficiencies as income tax expense or benefit in the income statement. In addition, the guidance eliminates the requirement that excess tax benefits be realized before companies can recognize them. The ASU requires a cumulative-effect adjustment for previously unrecognized excess tax benefits in opening retained earnings in the annual period of adoption. Upon adoption, we recognized additional excess tax benefit as a deferred tax asset with a corresponding increase to our deferred tax asset valuation allowance, which did not result in a net impact to retained earnings. Additionally, as provided for under this new guidance, we elected to account for forfeitures as they occur. The adoption of this aspect of the guidance did not have a material impact on our financial statements. |
Stock Award Plans
Stock Award Plans | 9 Months Ended |
Sep. 30, 2017 | |
Stock Award Plans | |
Stock Award Plans | 4. We have four stock option plans, our 2011 Equity Incentive Plan (2011 Plan), 2000 Equity Incentive Plan (2000 Plan), 2000 Non-Employee Directors’ Stock Option Plan (Directors’ Plan) and the Inducement Plan, that provide for granting to our officers, directors and all other employees and consultants options to purchase shares of our common stock. We also have our Employee Stock Purchase Plan (Purchase Plan), wherein eligible employees can purchase shares of our common stock at a price per share equal to the lesser of 85% of the fair market value on the first day of the offering period or 85% of the fair market value on the purchase date. The fair value of each option award is estimated on the date of grant using the Black-Scholes option pricing model which considered our stock price, as well as assumptions regarding a number of complex and subjective variables. These variables include, but are not limited to, volatility, expected term, risk-free interest rate and dividends. We estimate volatility over the expected term of the option using historical share price performance. For expected term, we take into consideration our historical data of options exercised, cancelled and expired. The risk-free rate is based on the U.S. Treasury constant maturity rate. We have not paid and do not expect to pay dividends in the foreseeable future. We use the straight-line attribution method over the requisite employee service period for the entire award in recognizing stock-based compensation expense. In connection with the adoption of ASU No. 2016-09— Improvements to Employee Share-Based Payment Accounting, on January 1, 2017, we have elected to account for forfeitures as they occur. We granted performance-based stock options to purchase shares of our common stock which will vest upon the achievement of certain corporate performance-based milestones. We determined the fair values of these performance-based stock options using the Black-Scholes option pricing model at the date of grant. For the portion of the performance-based stock options of which the performance condition is considered probable of achievement, we recognize stock-based compensation expense on the related estimated fair value of such options on a straight-line basis from the date of grant up to the date when we expect the performance condition will be achieved. For the performance conditions that are not considered probable of achievement at the grant date or upon quarterly re-evaluation, prior to the event actually occurring, we recognize the related stock-based compensation expense when the event occurs or when we can determine that the performance condition is probable of achievement. In those cases, we recognize the change in estimate at the time we determine the condition is probable of achievement (by recognizing stock-based compensation expense as cumulative catch-up adjustment as if we had estimated at the grant date that the performance condition would have been achieved) and recognize the remaining compensation cost up to the date when we expect the performance condition will be achieved, if any. |
Net Loss Per Share
Net Loss Per Share | 9 Months Ended |
Sep. 30, 2017 | |
Net Loss Per Share | |
Net Loss Per Share | 5. Net Loss Per Share Basic net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period and the number of additional shares of common stock that would have been outstanding if potentially dilutive securities had been issued. Potentially dilutive securities include a warrant to purchase our common shares and stock options and shares issuable under our stock award plans. The dilutive effect of these potentially dilutive securities is reflected in diluted earnings per share by application of the treasury stock method. Under the treasury stock method, an increase in the fair market value of our common stock can result in a greater dilutive effect from potentially dilutive securities. We had securities which could potentially dilute basic loss per share, but were excluded from the computation of diluted net loss per share, as their effect would have been antidilutive. These securities consist of the following (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Outstanding stock options 20,721 20,897 20,721 20,897 Warrant to purchase common stock — 200 — 200 Purchase Plan 69 63 69 63 20,790 21,160 20,790 21,160 |
Stock-based Compensation
Stock-based Compensation | 9 Months Ended |
Sep. 30, 2017 | |
Stock-based Compensation | |
Stock-based Compensation | 6. Total stock-based compensation expense related to all of our share-based payments that we recognized for the three and nine months ended September 30, 2017 and 2016 were as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 General and administrative $ 591 $ 572 $ 1,950 $ 1,921 Research and development 282 643 978 2,746 Restructuring charges — 499 — 499 Total stock-based compensation expense $ 873 $ 1,714 $ 2,928 $ 5,166 The fair value of each option award is estimated on the date of grant using the Black-Scholes option pricing model. We have segregated option awards into the following three homogenous groups for the purposes of determining fair values of options: officers and directors, all other employees, and consultants. We determined weighted-average valuation assumptions separately for each of these groups as follows: · Volatility—We estimated volatility using our historical share price performance over the expected life of the option. We also considered other factors, such as implied volatility, our current clinical trials and other company activities that may affect the volatility of our stock in the future. We determined that at this time historical volatility is more indicative of our expected future stock performance than implied volatility. · Expected term—For options granted to consultants, we use the contractual term of the option, which is generally ten years, for the initial valuation of the option and the remaining contractual term of the option for the succeeding periods. We analyzed various historical data to determine the applicable expected term for each of the other option groups. This data included: (1) for exercised options, the term of the options from option grant date to exercise date; (2) for cancelled options, the term of the options from option grant date to cancellation date, excluding non-vested option forfeitures; and (3) for options that remained outstanding at the balance sheet date, the term of the options from option grant date to the end of the reporting period and the estimated remaining term of the options. The consideration and calculation of the above data gave us reasonable estimates of the expected term for each employee group. We also considered the vesting schedules of the options granted and factors surrounding exercise behavior of the option groups, our current market price and company activity that may affect our market price. In addition, we considered the optionee type (i.e., officers and directors or all other employees) and other factors that may affect the expected term of the option. · Risk-free interest rate—The risk-free interest rate is based on U.S. Treasury constant maturity rates with similar terms to the expected term of the options for each option group. · Dividend yield—The expected dividend yield is 0% as we have not paid and do not expect to pay dividends in the future. In connection with the adoption of ASU No. 2016-09 on January 1, 2017, we have elected to account for forfeitures as they occur and its adoption did not have a material impact on our financial statements. The following table summarizes the weighted-average assumptions relating to options granted pursuant to our equity incentive plans, including the performance-based stock option awards which will vest upon the achievement of certain corporate performance-based milestones or corporate sales target, for the three and nine months ended September 30, 2017 and 2016: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Risk-free interest rate % — % % Expected term (in years) — Dividend yield % — % % Expected volatility % — % % The exercise price of stock options is at the market price of our common stock on the date immediately preceding the date of grant. Options become exercisable at varying dates and generally expire 10 years from the date of grant. We granted options to purchase 3,485,175 shares of common stock during the nine months ended September 30, 2017 with a grant-date weighted-average fair value of $1.36 per share. As of September 30, 2017, we have 1,385,000 shares related to outstanding performance-based stock option awards with a grant date fair value of $2.0 million which will vest upon achievement of certain corporate performance-based milestones. We did not consider these corporate-based milestones as probable of achievement as of September 30, 2017. Accordingly, no stock-based compensation expense was recognized for these outstanding performance-based stock option awards. As of September 30, 2017, there was approximately $7.4 million of total unrecognized stock-based compensation cost related to all unvested options granted under our equity incentive plans. At September 30, 2017, there were 11,450,149 shares of common stock available for future grant under our equity incentive plans and 526,281 options to purchase shares were exercised during the nine months ended September 30, 2017. Employee Stock Purchase Plan Our Purchase Plan permits eligible employees to purchase common stock at a discount through payroll deductions during defined offering periods. The price at which the stock is purchased is equal to the lesser of 85% of the fair market value of the common stock on the first day of the offering or 85% of the fair market value of our common stock on the purchase date. The initial offering period commenced on the effective date of our initial public offering. The fair value of awards granted under our Purchase Plan is estimated on the date of grant using the Black-Scholes option pricing model, which uses weighted-average assumptions. Our Purchase Plan provides for a twenty-four month offering period comprised of four six-month purchase periods with a look-back option. A look-back option is a provision in our Purchase Plan under which eligible employees can purchase shares of our common stock at a price per share equal to the lesser of 85% of the fair market value on the first day of the offering period or 85% of the fair market value on the purchase date. Our Purchase Plan also includes a feature that provides for a new offering period to begin when the fair market value of our common stock on any purchase date during an offering period falls below the fair market value of our common stock on the first day of such offering period. This feature is called a “reset.” Participants are automatically enrolled in the new offering period. We had a “reset” on July 1, 2016 because the fair market value of our stock on June 30, 2016 was lower than the fair market value of our stock on January 5, 2015, the first day of the offering period. We applied modification accounting in accordance with ASC Topic No. 718, Stock Compensation, to determine the incremental fair value associated with this Purchase Plan “reset” and will recognize the related stock-based compensation expense according to FASB ASC Subtopic No. 718-50, Employee Share Purchase Plans . The total incremental fair value for this Purchase Plan “reset” was approximately $1.0 million and will be recognized from July 1, 2016 to June 30, 2018. As of September 30, 2017, there were approximately 2,324,942 shares reserved for future issuance under the Purchase Plan. The following table summarizes the weighted-average assumptions related to our Purchase Plan for the nine months ended September 30, 2017 and 2016. Expected volatilities for our Purchase Plan are based on the historical volatility of our stock. Expected term represents the weighted-average of the purchase periods within the offering period. The risk-free interest rate for periods within the expected term is based on U.S. Treasury constant maturity rates. Nine Months Ended September 30, 2017 2016 Risk-free interest rate % % Expected term (in years) Dividend yield % % Expected volatility % % |
Research and Development Accrua
Research and Development Accruals | 9 Months Ended |
Sep. 30, 2017 | |
Research and Development Accruals | |
Research and Development Accruals | 7. Research and Development Accruals We have various contracts with third parties related to our research and development activities. Costs that are incurred but not billed to us as of the end of the period are accrued. We make estimates of the amounts incurred in each period based on the information available to us and our knowledge of the nature of the contractual activities generating such costs. Clinical trial contract expenses are accrued based on units of activity. Expenses related to other research and development contracts, such as research contracts, toxicology study contracts and manufacturing contracts are estimated to be incurred generally on a straight-line basis over the duration of the contracts. Raw materials and study materials purchased for us by third parties are expensed at the time of purchase. In the first quarter of 2017, we entered into a consulting agreement with a third party, pursuant to which we may be required to pay amounts ranging from $1.5 million to $4.0 million if certain future regulatory milestone events occur. As of September 30, 2017, we do not consider any of the future regulatory milestone events as probable of occurring. As such, no expense was recognized for the three and nine months ended September 30, 2017. |
Sponsored Research and License
Sponsored Research and License Agreements | 9 Months Ended |
Sep. 30, 2017 | |
Sponsored Research and License Agreements | |
Sponsored Research and License Agreements | 8. We conduct research and development programs independently and in connection with our corporate collaborators. We are a party to a collaboration agreement with Bristol-Myers Squibb Company (BMS) for the discovery, development and commercialization of cancer immunotherapies based on our small molecule TGF beta receptor kinase inhibitors, as discussed below. Our participation In February 2015, we entered into a collaboration agreement with BMS for the discovery, development and commercialization of cancer immunotherapies based on our extensive portfolio of small molecule TGF beta receptor kinase inhibitors. Under the collaboration agreement, BMS will have exclusive rights and will be solely responsible for the clinical development and commercialization of any products. Pursuant to the collaboration agreement with BMS, we received a noncreditable and non-refundable upfront payment of $30.0 million in March 2015. We are also entitled to receive development and regulatory contingent fees that could exceed $309.0 million for a successful compound approved in certain indications. In addition, we are also eligible to receive tiered royalties on the net sales of any products from the collaboration. BMS shall also reimburse us for agreed upon costs based on a contractual cost per full-time equivalent employee in connection with the performance of research activities during the research term. Under the collaboration agreement, we were obligated to provide the following deliverables: (i) granting of license rights to our program, (ii) participation in the Joint Research Committee, and (iii) performance of research activities. We concluded that these deliverables were a single unit of accounting as the license did not have stand-alone value apart from the other deliverables. Accordingly, the $30.0 million upfront payment was recognized ratably as revenue from the effective date of the agreement and was fully amortized in September 2016, the end of the research term. We believed that straight-line recognition of this revenue was appropriate as the research was performed ratably over the research period. During the three and nine months ended September 30, 2016, we recognized revenue of $3.8 million and $13.4 million, respectively, relating to the upfront payment. During the nine months ended September 30, 2016, we recognized revenue of $290,000 relating to the research activities we performed. There were no revenues recognized related to research activities during the three months ended September 30, 2016. At the end of the initial research term, we were not notified by BMS of its intention to extend the initial research term under which we would perform research activities. However, BMS does continue to evaluate compounds from the extensive portfolio under the agreement, on its own. As of September 30, 2016, all deliverables under the agreement have been delivered. In June 2011, we entered into an exclusive license agreement with BerGenBio for the development and commercialization of an oncology program. BerGenBio is responsible for all activities it wishes to perform under the license we granted to it. In February 2017, we received $3.3 million from BerGenBio as a result of BerGenBio advancing BGB324, an AXL kinase inhibitor licensed under the agreement, to a Phase 2 clinical study. In June 2016, we received contingent payments of $1.7 million relating to a time-based non-refundable fee and $2.0 million relating to BerGenBio’s exercise of certain option rights before the prescription period to exercise the rights expired. All deliverables under the agreement had been previously delivered, as such, the above payments of $3.3 million in 2017 and $3.7 million in 2016, triggered by the above time-based and contingent events were recognized as revenue in the first quarter of 2017 and second quarter of 2016, respectively. |
Cash, Cash Equivalents and Shor
Cash, Cash Equivalents and Short-Term Investments | 9 Months Ended |
Sep. 30, 2017 | |
Cash, Cash Equivalents and Short-Term Investments | |
Cash, Cash Equivalents and Short-Term Investments | 9. Cash, Cash Equivalents and Short-Term Investments Cash, cash equivalents and short-term investments consisted of the following (in thousands): September 30, December 31, 2017 2016 Cash $ 385 $ 240 Money market funds 5,099 9,496 U.S. treasury bills 3,000 4,300 Government-sponsored enterprise securities 3,655 16,459 Corporate bonds and commercial paper 55,937 44,271 $ 68,076 $ 74,766 Reported as: Cash and cash equivalents $ 25,879 $ 17,632 Short-term investments 42,197 57,134 $ 68,076 $ 74,766 Cash equivalents and short-term investments include the following securities with gross unrealized gains and losses (in thousands): Gross Gross Amortized Unrealized Unrealized September 30, 2017 Cost Gains Losses Fair Value U.S. treasury bills $ 3,000 $ — $ — $ 3,000 Government-sponsored enterprise securities 3,656 — (1) 3,655 Corporate bonds and commercial paper 55,943 — (6) 55,937 Total $ 62,599 $ — $ (7) $ 62,592 Gross Gross Amortized Unrealized Unrealized December 31, 2016 Cost Gains Losses Fair Value U.S. treasury bills $ 4,300 $ — $ — $ 4,300 Government-sponsored enterprise securities 16,457 3 (1) 16,459 Corporate bonds and commercial paper 44,291 2 (22) 44,271 Total $ 65,048 $ 5 $ (23) $ 65,030 As of September 30, 2017, our cash equivalents and short-term investments, which have contractual maturities within one year, had a weighted-average time to maturity of approximately 75 days. We view our short-term investments portfolio as available for use in current operations. We have the ability to hold all investments as of September 30, 2017 through their respective maturity dates. At September 30, 2017, we had no investments that had been in a continuous unrealized loss position for more than 12 months. As of September 30, 2017, a total of 21 individual securities had been in an unrealized loss position for 12 months or less, and the losses were determined to be temporary. The gross unrealized losses above were caused by interest rate increases. No significant facts or circumstances have arisen to indicate that there has been any significant deterioration in the creditworthiness of the issuers of the securities held by us. Based on our review of these securities, including the assessment of the duration and severity of the unrealized losses and our ability and intent to hold the investments until maturity, there were no other-than-temporary impairments for these securities at September 30, 2017. The following table shows the fair value and gross unrealized losses of our investments in individual securities that are in an unrealized loss position, aggregated by investment category (in thousands): September 30, 2017 Fair Value Unrealized Losses Government-sponsored enterprise securities $ 3,655 $ (1) Corporate bonds and commercial paper 22,269 (6) Total $ 25,924 $ (7) |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value | |
Fair Value | 10. Fair Value Under FASB ASC 820, Fair Value Measurements and Disclosures , fair value is defined as the price at which an asset could be exchanged or a liability transferred in a transaction between knowledgeable, willing parties in the principal or most advantageous market for the asset or liability. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or parameters are not available, valuation models are applied. Assets and liabilities recorded at fair value in our financial statements are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities, are as follows: Level 1—Inputs are unadjusted, quoted prices in active markets for identical assets at the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. The fair valued assets we hold that are generally included under this Level 1 are money market securities where fair value is based on publicly quoted prices. Level 2—Inputs, other than quoted prices included in Level 1, that are either directly or indirectly observable for the asset or liability through correlation with market data at the reporting date and for the duration of the instrument’s anticipated life. The fair valued assets we hold that are generally assessed under Level 2 included government-sponsored enterprise securities, U.S. treasury bills and corporate bonds and commercial paper. We utilize third party pricing services in developing fair value measurements where fair value is based on valuation methodologies such as models using observable market inputs, including benchmark yields, reported trades, broker/dealer quotes, bids, offers and other reference data. We use quotes from external pricing service providers and other on-line quotation systems to verify the fair value of investments provided by our third party pricing service providers. We review independent auditor’s reports from our third party pricing service providers particularly regarding the controls over pricing and valuation of financial instruments and ensure that our internal controls address certain control deficiencies, if any, and complementary user entity controls are in place. Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities and which reflect management’s best estimate of what market participants would use in pricing the asset or liability at the reporting date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. We do not have fair valued assets classified under Level 3. Fair Value on a Recurring Basis Financial assets measured at fair value on a recurring basis are categorized in the tables below based upon the lowest level of significant input to the valuations (in thousands): Assets at Fair Value as of September 30, 2017 Level 1 Level 2 Level 3 Total Money market funds $ 5,099 $ — $ — $ 5,099 U.S. treasury bills — 3,000 — 3,000 Government-sponsored enterprise securities — 3,655 — 3,655 Corporate bonds and commercial paper — 55,937 — 55,937 Total $ 5,099 $ 62,592 $ — $ 67,691 Assets at Fair Value as of December 31, 2016 Level 1 Level 2 Level 3 Total Money market funds $ 9,496 $ — $ — $ 9,496 U.S. treasury bills — 4,300 — 4,300 Government-sponsored enterprise securities — 16,459 — 16,459 Corporate bonds and commercial paper — 44,271 — 44,271 Total $ 9,496 $ 65,030 $ — $ 74,526 |
Lease Agreements
Lease Agreements | 9 Months Ended |
Sep. 30, 2017 | |
Lease Agreements | |
Lease Agreements | 11. We currently lease our research and office space under a noncancelable lease agreement with our landlord, HCP BTC, LLC (formerly known as Slough BTC, LLC) which was set to expire in 2018. The lease term provides for renewal option for up to two additional periods of five years each. In July 2017, we exercised our option to extend the term of our lease for another five years through January 2023 and modified the amount of monthly base rent during such renewal period. We reevaluated our lease classification and continue to classify our lease as operating lease during the renewal period. In December 2014, we entered into a sublease agreement with an unrelated third party to occupy approximately 57,000 square feet of our research and office space. In connection with this sublease, we recognized a loss on sublease of $9.3 million during the fourth quarter of 2014. In February 2017, we entered into an amendment to the sublease agreement to increase the subleased research and office space for an additional 9,328 square feet under the same term of the sublease, and recognized an additional loss on sublease of $495,000. Effective July 2017, the sublease agreement was amended primarily to extend the term of the sublease through January 2023 and modified the monthly base rent to equal the amount we will pay our landlord. Because the future sublease income under the extended sublease agreement is the same as the amount we will pay our landlord, we did not recognize any additional loss on sublease. We expect to receive approximately $23.0 million in future sublease income (excluding our subtenant’s share of facilities operating expenses) through January 2023. We record rent expense on a straight-line basis for our lease, net of sublease income. For our sublease arrangement which we classified as an operating lease, our loss on the sublease was comprised of the present value of our future payments to our landlord less the present value of our future rent payments expected from our subtenant over the term of the sublease. The liability arising from this sublease agreement was determined using a credit-adjusted risk-free rate to discount the estimated future net cash flows. The changes in the liability related to the sublease agreement for the nine months ended September 30, 2017 were as follows (in thousands): Balance at January 1, 2017 $ 3,460 Increase in deferred liability 495 Accretion of deferred liability 141 Amortization of deferred liability (2,848) Balance at September 30, 2017 $ 1,248 |
Equity Offerings
Equity Offerings | 9 Months Ended |
Sep. 30, 2017 | |
Equity Offerings | |
Equity Offerings | 12. In February 2017, we completed an underwritten public offering in which we sold 23,000,000 shares of our common stock pursuant to an effective registration statement at a price to the public of $2.00 per share. We received proceeds of approximately $43.0 million, net of underwriting discounts and commissions and offering expenses. In October 2017, we completed another underwritten public offering in which we sold 20,815,000 shares of our common stock pursuant to an effective registration statement at a price to the public of $3.35 per share. We received proceeds of approximately $65.3 million, net of underwriting discounts and commissions and offering expenses. In August 2015, we entered into a Controlled Equity Offering SM Sales Agreement (Original Sales Agreement) with Cantor Fitzgerald & Co. (Cantor), as sales agent, pursuant to which we may sell, through Cantor, up to an aggregate of $30.0 million in shares of our common stock. As of September 30, 2016, all the shares under the Original Sales Agreement have been fully sold. In May 2017, we entered into an Amendment No. 1 (Amended Sales Agreement) to the Controlled Equity Offering SM Sales Agreement pursuant to which we may offer and sell, through Cantor, additional shares of our common stock, up to an aggregate offering price of $40.0 million. These additional shares are in addition to the shares of common stock sold under the Original Sales Agreement. During the nine months ended September 30, 2017, 2,166,093 shares of common stock were sold under the Amended Sales Agreement, with an aggregate net proceeds of $5.7 million. In October 2017, we terminated the Amended Sales Agreement with Cantor. All sales of our common stock were made pursuant to a shelf registration statement filed by us in May 2015 and declared effective by the Securities and Exchange Commission (SEC) in July 2015. Cantor acted as our sole sales agent for all sales made under the Amended Sales Agreement for a low single-digit commission on gross proceeds. The common stock was sold at prevailing market prices at the time of the sale. |
Restructuring Charges
Restructuring Charges | 9 Months Ended |
Sep. 30, 2017 | |
Restructuring Charges. | |
Restructuring Charges | 13. In September 2016, we announced that we had reduced our workforce by 46 positions, mostly in the research area. We also announced that effective September 15, 2016, Donald G. Payan, M.D, retired from the board of directors and from his position as Executive Vice President and President of Discovery and Research. We recorded restructuring charges during the third quarter of 2016 of approximately $5.8 million, which included $5.0 million of severance costs paid in cash, $319,000 impairment of certain property and equipment, and $499,000 of non-cash stock-based compensation expense as a result of the modification of our former executive’s stock options. At September 30, 2017, the remaining accrued restructuring cost of $64,000 related to COBRA benefits is classified under Accrued Compensation in the Condensed Balance Sheet. |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Net Loss Per Share | |
Schedule of antidilutive securities | These securities consist of the following (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Outstanding stock options 20,721 20,897 20,721 20,897 Warrant to purchase common stock — 200 — 200 Purchase Plan 69 63 69 63 20,790 21,160 20,790 21,160 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Stock-based Compensation | |
Schedule of stock-based compensation expense related to all of the entity's share-based awards | Total stock-based compensation expense related to all of our share-based payments that we recognized for the three and nine months ended September 30, 2017 and 2016 were as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 General and administrative $ 591 $ 572 $ 1,950 $ 1,921 Research and development 282 643 978 2,746 Restructuring charges — 499 — 499 Total stock-based compensation expense $ 873 $ 1,714 $ 2,928 $ 5,166 |
Summary of weighted-average assumptions relating to options granted pursuant to equity incentive plans | Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Risk-free interest rate % — % % Expected term (in years) — Dividend yield % — % % Expected volatility % — % % |
Summary of weighted-average assumptions used to calculate fair value of purchase rights granted under Employee Stock Purchase Plan | Nine Months Ended September 30, 2017 2016 Risk-free interest rate % % Expected term (in years) Dividend yield % % Expected volatility % % |
Cash, Cash Equivalents and Sh21
Cash, Cash Equivalents and Short-Term Investments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Cash, Cash Equivalents and Short-Term Investments | |
Schedule of cash, cash equivalents and short-term investments | Cash, cash equivalents and short-term investments consisted of the following (in thousands): September 30, December 31, 2017 2016 Cash $ 385 $ 240 Money market funds 5,099 9,496 U.S. treasury bills 3,000 4,300 Government-sponsored enterprise securities 3,655 16,459 Corporate bonds and commercial paper 55,937 44,271 $ 68,076 $ 74,766 Reported as: Cash and cash equivalents $ 25,879 $ 17,632 Short-term investments 42,197 57,134 $ 68,076 $ 74,766 |
Schedule of cash equivalents and short-term investments including the securities with unrealized gains and losses | Cash equivalents and short-term investments include the following securities with gross unrealized gains and losses (in thousands): Gross Gross Amortized Unrealized Unrealized September 30, 2017 Cost Gains Losses Fair Value U.S. treasury bills $ 3,000 $ — $ — $ 3,000 Government-sponsored enterprise securities 3,656 — (1) 3,655 Corporate bonds and commercial paper 55,943 — (6) 55,937 Total $ 62,599 $ — $ (7) $ 62,592 Gross Gross Amortized Unrealized Unrealized December 31, 2016 Cost Gains Losses Fair Value U.S. treasury bills $ 4,300 $ — $ — $ 4,300 Government-sponsored enterprise securities 16,457 3 (1) 16,459 Corporate bonds and commercial paper 44,291 2 (22) 44,271 Total $ 65,048 $ 5 $ (23) $ 65,030 |
Schedule of fair value and gross unrealized losses of the entity's investments in unrealized loss position | The following table shows the fair value and gross unrealized losses of our investments in individual securities that are in an unrealized loss position, aggregated by investment category (in thousands): September 30, 2017 Fair Value Unrealized Losses Government-sponsored enterprise securities $ 3,655 $ (1) Corporate bonds and commercial paper 22,269 (6) Total $ 25,924 $ (7) |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value | |
Schedule of financial assets measured at fair value on a recurring basis | Financial assets measured at fair value on a recurring basis are categorized in the tables below based upon the lowest level of significant input to the valuations (in thousands): Assets at Fair Value as of September 30, 2017 Level 1 Level 2 Level 3 Total Money market funds $ 5,099 $ — $ — $ 5,099 U.S. treasury bills — 3,000 — 3,000 Government-sponsored enterprise securities — 3,655 — 3,655 Corporate bonds and commercial paper — 55,937 — 55,937 Total $ 5,099 $ 62,592 $ — $ 67,691 Assets at Fair Value as of December 31, 2016 Level 1 Level 2 Level 3 Total Money market funds $ 9,496 $ — $ — $ 9,496 U.S. treasury bills — 4,300 — 4,300 Government-sponsored enterprise securities — 16,459 — 16,459 Corporate bonds and commercial paper — 44,271 — 44,271 Total $ 9,496 $ 65,030 $ — $ 74,526 |
Lease Agreements (Tables)
Lease Agreements (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Lease Agreements | |
Schedule of changes in liability related to sublease agreement | The changes in the liability related to the sublease agreement for the nine months ended September 30, 2017 were as follows (in thousands): Balance at January 1, 2017 $ 3,460 Increase in deferred liability 495 Accretion of deferred liability 141 Amortization of deferred liability (2,848) Balance at September 30, 2017 $ 1,248 |
Stock Award Plans (Details)
Stock Award Plans (Details) | 9 Months Ended |
Sep. 30, 2017plan | |
Stock Based Compensation | |
Number of stock option plans | 4 |
Purchase plan | |
Stock Based Compensation | |
Purchase price of common shares as a percentage of the fair market value on the first day of the offering period | 85.00% |
Purchase price of common shares as a percentage of the fair market value on the purchase date | 85.00% |
Net Loss Per Share (Details)
Net Loss Per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Antidilutive securities excluded from the computation of diluted net loss per share | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 20,790 | 21,160 | 20,790 | 21,160 |
Employee stock option | ||||
Antidilutive securities excluded from the computation of diluted net loss per share | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 20,721 | 20,897 | 20,721 | 20,897 |
Warrant to purchase common stock | ||||
Antidilutive securities excluded from the computation of diluted net loss per share | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 200 | 200 | ||
Purchase plan | ||||
Antidilutive securities excluded from the computation of diluted net loss per share | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 69 | 63 | 69 | 63 |
Stock-based Compensation (Detai
Stock-based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Stock-based compensation expense related to stock-based awards | ||||
Total stock-based compensation expense | $ 873 | $ 1,714 | $ 2,928 | $ 5,166 |
General and administrative | ||||
Stock-based compensation expense related to stock-based awards | ||||
Total stock-based compensation expense | 591 | 572 | 1,950 | 1,921 |
Research and development | ||||
Stock-based compensation expense related to stock-based awards | ||||
Total stock-based compensation expense | $ 282 | 643 | $ 978 | 2,746 |
Restructuring charges | ||||
Stock-based compensation expense related to stock-based awards | ||||
Total stock-based compensation expense | $ 499 | $ 499 |
Stock-based Compensation - Opti
Stock-based Compensation - Options (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017USD ($)shares | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)item$ / sharesshares | Sep. 30, 2016USD ($) | |
Stock Based Compensation | ||||
Share-based compensation | $ | $ 873 | $ 1,714 | $ 2,928 | $ 5,166 |
Additional disclosures | ||||
Shares of common stock available for future grant | shares | 11,450,149 | 11,450,149 | ||
Employee stock option | ||||
Stock Based Compensation | ||||
Number of homogenous groups for purposes of determining fair values of options | item | 3 | |||
Contractual term of the option | 10 years | |||
Weighted-average assumptions relating to options granted | ||||
Risk-free interest rate (as a percent) | 2.10% | 2.20% | 1.70% | |
Expected term (in years) | 6 years 2 months 12 days | 6 years 8 months 12 days | 6 years 4 months 24 days | |
Dividend yield (as a percent) | 0.00% | 0.00% | 0.00% | |
Expected volatility (as a percent) | 64.40% | 63.20% | 63.30% | |
Additional disclosures | ||||
Total unrecognized compensation costs | $ | $ 7,400 | $ 7,400 | ||
Options exercised during the period (in shares) | shares | 526,281 | |||
Employee stock option | Granted 2017 | ||||
Additional disclosures | ||||
Options granted (in shares) | shares | 3,485,175 | |||
Grant-date weighted-average fair value (in dollars per share) | $ / shares | $ 1.36 | |||
Employee stock option | Consultant | ||||
Stock Based Compensation | ||||
Contractual term of the option | 10 years | |||
Employee stock option | Recipient of performance shares | Granted 2017 | ||||
Stock Based Compensation | ||||
Share-based compensation | $ | $ 0 | |||
Additional disclosures | ||||
Options granted (in shares) | shares | 1,385,000 | |||
Employee stock option | Recipient of performance shares | Vesting upon achievement of corporate performance-based milestones | Granted 2017 | ||||
Additional disclosures | ||||
Grant date fair value of performance stock options awards | $ | $ 2,000 |
Stock-based Compensation - Purc
Stock-based Compensation - Purchase Plan (Details) - Purchase plan $ in Millions | 9 Months Ended | |
Sep. 30, 2017USD ($)itemshares | Sep. 30, 2016 | |
Additional disclosures | ||
Award offering period | 24 months | |
Number of purchase periods per award offering period | item | 4 | |
Award purchase period | 6 months | |
Purchase price expressed as a percentage of fair market value of common stock on the purchase date | 85.00% | |
Purchase price expressed as a percentage of fair market value of common stock on the first day of the offering period | 85.00% | |
Total incremental fair value for the Purchase Plan reset | $ | $ 1 | |
Shares reserved for future issuance | shares | 2,324,942 | |
Weighted-average assumptions relating to Purchase Plan | ||
Risk-free interest rate (as a percent) | 0.60% | 0.50% |
Expected term (in years) | 1 year 9 months 18 days | 1 year 6 months |
Dividend yield (as a percent) | 0.00% | 0.00% |
Expected volatility (as a percent) | 64.60% | 63.00% |
Research and Development Accr29
Research and Development Accruals (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2017 | Sep. 30, 2017 | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Consulting agreement, expense recognized | $ 0 | $ 0 |
Minimum | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Consulting agreement, contingent liability | 1.5 | |
Maximum | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Consulting agreement, contingent liability | $ 4 |
Sponsored Research and Licens30
Sponsored Research and License Agreements (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Feb. 28, 2017 | Jun. 30, 2016 | Mar. 31, 2015 | Mar. 31, 2017 | Sep. 30, 2016 | Jun. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Collaborative arrangement | ||||||||
Collaborations | ||||||||
Maximum amount of contingent payments receivable | $ 532,400,000 | |||||||
Specified Development Events | Collaborative arrangement | ||||||||
Collaborations | ||||||||
Maximum amount of contingent payments receivable | 145,500,000 | |||||||
Specified Regulatory Events | Collaborative arrangement | ||||||||
Collaborations | ||||||||
Maximum amount of contingent payments receivable | 345,600,000 | |||||||
Specified Product Launch Events | Collaborative arrangement | ||||||||
Collaborations | ||||||||
Maximum amount of contingent payments receivable | 41,300,000 | |||||||
Bristol-Myers Squibb Company | ||||||||
Collaborations | ||||||||
Noncreditable and nonrefundable upfront payment by BMS | $ 30,000,000 | |||||||
Revenue recognized | $ 3,800,000 | $ 13,400,000 | ||||||
Bristol-Myers Squibb Company | Research Activities | ||||||||
Collaborations | ||||||||
Revenue recognized | $ 0 | $ 290,000 | ||||||
Bristol-Myers Squibb Company | Minimum | ||||||||
Collaborations | ||||||||
Contingent payments | $ 309,000,000 | |||||||
Ber Gen Bio A S | ||||||||
Collaborations | ||||||||
Contingent payments | $ 1,700,000 | |||||||
Collaborative payment received | $ 3,300,000 | |||||||
Revenue recognized | $ 3,300,000 | $ 3,700,000 | ||||||
Payment received from exercise of option rights | $ 2,000,000 |
Cash, Cash Equivalents and Sh31
Cash, Cash Equivalents and Short-Term Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
Cash, cash equivalent and short term investments | ||||
Cash and cash equivalents | $ 25,879 | $ 17,632 | $ 25,950 | $ 43,456 |
Short-term investments | 42,197 | 57,134 | ||
Cash, cash equivalents and short-term investments | 68,076 | 74,766 | ||
Money market funds | ||||
Cash, cash equivalent and short term investments | ||||
Cash, cash equivalents and short-term investments | 5,099 | 9,496 | ||
U.S. treasury bills | ||||
Cash, cash equivalent and short term investments | ||||
Cash, cash equivalents and short-term investments | 3,000 | 4,300 | ||
Government-sponsored enterprises securities | ||||
Cash, cash equivalent and short term investments | ||||
Cash, cash equivalents and short-term investments | 3,655 | 16,459 | ||
Corporate bonds and commercial paper | ||||
Cash, cash equivalent and short term investments | ||||
Cash, cash equivalents and short-term investments | 55,937 | 44,271 | ||
Cash | ||||
Cash, cash equivalent and short term investments | ||||
Cash, cash equivalents and short-term investments | $ 385 | $ 240 |
Cash, Cash Equivalents and Sh32
Cash, Cash Equivalents and Short-Term Investments - Gross Unrealized Gains and Losses (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Cash equivalents and available-for-sale securities | ||
Amortized Cost | $ 62,599 | $ 65,048 |
Gross Unrealized Gains | 5 | |
Gross Unrealized Losses | (7) | (23) |
Fair Value | 62,592 | 65,030 |
U.S. treasury bills | ||
Cash equivalents and available-for-sale securities | ||
Amortized Cost | 3,000 | 4,300 |
Fair Value | 3,000 | 4,300 |
Government-sponsored enterprises securities | ||
Cash equivalents and available-for-sale securities | ||
Amortized Cost | 3,656 | 16,457 |
Gross Unrealized Gains | 3 | |
Gross Unrealized Losses | (1) | (1) |
Fair Value | 3,655 | 16,459 |
Corporate bonds and commercial paper | ||
Cash equivalents and available-for-sale securities | ||
Amortized Cost | 55,943 | 44,291 |
Gross Unrealized Gains | 2 | |
Gross Unrealized Losses | (6) | (22) |
Fair Value | $ 55,937 | $ 44,271 |
Cash, Cash Equivalents and Sh33
Cash, Cash Equivalents and Short-Term Investments - Unrealized Loss Position (Details) $ in Thousands | Sep. 30, 2017USD ($)item | Sep. 30, 2017USD ($)item |
Fair value and gross unrealized losses of investments in individual securities in unrealized loss position | ||
Weighted-average time to maturity of cash equivalents and available-for-sale securities | 75 days | |
Number of investments in continuous unrealized loss position for more than twelve months | item | 0 | 0 |
Number of individual securities in unrealized loss position for twelve months or less | item | 21 | 21 |
Other-than-temporary impairments of securities | $ 0 | |
Fair Value | 25,924 | $ 25,924 |
Unrealized Losses | (7) | |
Government-sponsored enterprises securities | ||
Fair value and gross unrealized losses of investments in individual securities in unrealized loss position | ||
Fair Value | 3,655 | 3,655 |
Unrealized Losses | (1) | |
Corporate bonds and commercial paper | ||
Fair value and gross unrealized losses of investments in individual securities in unrealized loss position | ||
Fair Value | $ 22,269 | 22,269 |
Unrealized Losses | $ (6) |
Fair Value (Details)
Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value | ||
Investments at fair value | $ 62,592 | $ 65,030 |
Estimate Of Fair Value Fair Value Disclosure | ||
Fair Value | ||
Investments at fair value | 67,691 | 74,526 |
U.S. treasury bills | ||
Fair Value | ||
Investments at fair value | 3,000 | 4,300 |
Government-sponsored enterprises securities | ||
Fair Value | ||
Investments at fair value | 3,655 | 16,459 |
Corporate bonds and commercial paper | ||
Fair Value | ||
Investments at fair value | 55,937 | 44,271 |
Fair value inputs Level 1 | ||
Fair Value | ||
Investments at fair value | 5,099 | 9,496 |
Fair value inputs Level 2 | ||
Fair Value | ||
Investments at fair value | 62,592 | 65,030 |
Fair value measurements recurring | Money market funds | Estimate Of Fair Value Fair Value Disclosure | ||
Fair Value | ||
Investments at fair value | 5,099 | 9,496 |
Fair value measurements recurring | U.S. treasury bills | Estimate Of Fair Value Fair Value Disclosure | ||
Fair Value | ||
Investments at fair value | 3,000 | 4,300 |
Fair value measurements recurring | Government-sponsored enterprises securities | Estimate Of Fair Value Fair Value Disclosure | ||
Fair Value | ||
Investments at fair value | 3,655 | 16,459 |
Fair value measurements recurring | Corporate bonds and commercial paper | Estimate Of Fair Value Fair Value Disclosure | ||
Fair Value | ||
Investments at fair value | 55,937 | 44,271 |
Fair value measurements recurring | Fair value inputs Level 1 | Money market funds | ||
Fair Value | ||
Investments at fair value | 5,099 | 9,496 |
Fair value measurements recurring | Fair value inputs Level 2 | U.S. treasury bills | ||
Fair Value | ||
Investments at fair value | 3,000 | 4,300 |
Fair value measurements recurring | Fair value inputs Level 2 | Government-sponsored enterprises securities | ||
Fair Value | ||
Investments at fair value | 3,655 | 16,459 |
Fair value measurements recurring | Fair value inputs Level 2 | Corporate bonds and commercial paper | ||
Fair Value | ||
Investments at fair value | $ 55,937 | $ 44,271 |
Lease Agreements (Details)
Lease Agreements (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended |
Feb. 28, 2017USD ($)ft² | Dec. 31, 2014USD ($)ft² | Sep. 30, 2017USD ($)item | |
Sublease Agreement | |||
Number of lease renewal periods | item | 2 | ||
Lease renewal term (in years) | 5 years | ||
Area of real estate property (square feet) | ft² | 9,328 | 57,000 | |
Expected income from sublease | $ 23,000,000 | ||
Loss on sublease | $ 495,000 | $ 9,300,000 | 495,000 |
Beginning Balance | 3,460,000 | ||
Increase in deferred liability | 495,000 | ||
Accretion of deferred liability | 141,000 | ||
Amortization of deferred liability | (2,848,000) | ||
Ending Balance | $ 1,248,000 |
Equity Offerings (Details)
Equity Offerings (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 9 Months Ended | ||||
Oct. 31, 2017 | May 31, 2017 | Feb. 28, 2017 | Aug. 31, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | |
Aggregate proceeds | $ 48,742 | $ 22,217 | ||||
Common stock | ||||||
Number of shares of common stock sold (in shares) | 20,815,000 | 23,000,000 | 2,166,093 | |||
Share price (in dollars per share) | $ 3.35 | $ 2 | ||||
Aggregate proceeds | $ 65,300 | $ 43,000 | $ 5,700 | |||
Cantor | Common stock | ||||||
Maximum value of shares available under Controlled Equity Offering | $ 40,000 | $ 30,000 |
Restructuring Charges (Details)
Restructuring Charges (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($)employee | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | |
Restructuring Charges | ||||
Number of positions eliminated | employee | 46 | |||
Restructuring charges | $ 5,770,000 | $ 5,770,000 | ||
Restructuring charges paid or to be paid in cash | 5,000,000 | |||
Restructuring, asset impairment charges | 319,000 | |||
Total stock-based compensation expense | $ 873,000 | 1,714,000 | $ 2,928,000 | 5,166,000 |
Restructuring charges related to severance, COBRA benefits and outplacement costs | $ 64,000 | $ 64,000 | ||
Restructuring charges | ||||
Restructuring Charges | ||||
Total stock-based compensation expense | $ 499,000 | $ 499,000 |