Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 31, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | FPRX | |
Entity Registrant Name | Five Prime Therapeutics, Inc. | |
Entity Central Index Key | 0001175505 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-36070 | |
Entity Tax Identification Number | 26-0038620 | |
Entity Address, Address Line One | 111 Oyster Point Boulevard | |
Entity Address, City or Town | South San Francisco | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94080 | |
City Area Code | 415 | |
Local Phone Number | 365-5600 | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Security Exchange Name | NASDAQ | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Common Stock, Shares Outstanding | 36,627,925 |
Balance Sheets (Unaudited)
Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 58,709 | $ 55,800 |
Marketable securities | 68,349 | 100,580 |
Receivables from collaborative partners | 2,212 | 4,097 |
Prepaid and other current assets | 5,181 | 6,243 |
Total current assets | 134,451 | 166,720 |
Restricted cash | 1,543 | 1,543 |
Property and equipment, net | 17,392 | 22,534 |
Operating lease, right-of-use assets | 29,279 | 30,934 |
Other long-term assets | 2,680 | 2,411 |
Total assets | 185,345 | 224,142 |
Current liabilities: | ||
Accounts payable | 346 | 1,184 |
Accrued personnel-related expenses | 4,371 | 6,805 |
Other accrued liabilities | 10,343 | 9,659 |
Operating lease obligations, current portion | 4,398 | 4,080 |
Deferred revenue, current portion | 548 | 1,296 |
Total current liabilities | 20,006 | 23,024 |
Deferred revenue, long-term portion | 2,198 | 5,113 |
Operating lease obligations, long-term portion | 43,197 | 45,532 |
Stockholders' equity: | ||
Common stock, $0.001 par value; 100,000,000 shares authorized, 36,651,091 issued and 35,481,224 outstanding at June 30, 2020; 36,280,368 issued and 35,219,791 outstanding at December 31, 2019. | 35 | 35 |
Preferred stock, $0.001 par value; 10,000,000 shares authorized; no shares issued and outstanding | ||
Additional paid-in capital | 588,823 | 582,243 |
Accumulated other comprehensive income | 22 | 78 |
Accumulated deficit | (468,936) | (431,883) |
Total stockholders' equity | 119,944 | 150,473 |
Total liabilities and stockholders' equity | $ 185,345 | $ 224,142 |
Balance Sheets (Unaudited) (Par
Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 36,651,091 | 36,280,368 |
Common stock, shares outstanding | 35,481,224 | 35,219,791 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Statements of Operations (Unaud
Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenue: | ||||
Total revenue | $ 3,424 | $ 3,333 | $ 11,838 | $ 8,680 |
Operating expenses: | ||||
Research and development | 12,573 | 29,425 | 31,129 | 61,178 |
General and administrative | 7,995 | 9,661 | 18,486 | 20,171 |
Total operating expenses | 20,568 | 39,086 | 49,615 | 81,349 |
Loss from operations | (17,144) | (35,753) | (37,777) | (72,669) |
Interest income | 207 | 1,363 | 724 | 2,896 |
Other expense, net | (1) | (3) | ||
Loss before income tax | (16,937) | (34,391) | (37,053) | (69,776) |
Net loss | $ (16,937) | $ (34,391) | $ (37,053) | $ (69,776) |
Basic and diluted net loss per common share | $ (0.48) | $ (0.99) | $ (1.05) | $ (2) |
Weighted-average shares used to compute basic and diluted net loss per common share | 35,425 | 34,909 | 35,344 | 34,852 |
Collaboration revenue [Member] | ||||
Revenue: | ||||
Total revenue | $ 3,424 | $ 3,333 | $ 6,838 | $ 8,680 |
License revenue [Member] | ||||
Revenue: | ||||
Total revenue | $ 5,000 |
Statements of Comprehensive Los
Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net loss | $ (16,937) | $ (34,391) | $ (37,053) | $ (69,776) |
Other comprehensive gain: | ||||
Unrealized gain (loss) on marketable securities | 37 | 100 | (56) | 248 |
Comprehensive loss | $ (16,900) | $ (34,291) | $ (37,109) | $ (69,528) |
Statements of Stockholders' Equ
Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings (Accumulated Deficit) [Member] |
Beginning Balance at Dec. 31, 2018 | $ 265,139 | $ 34 | $ 559,892 | $ (106) | $ (294,681) |
Beginning Balance, Shares at Dec. 31, 2018 | 34,745,721 | ||||
Issuance of common stock under equity incentive plans | 222 | 222 | |||
Issuance of common stock under equity incentive plans, Shares | 150,666 | ||||
Repurchase of shares to satisfy tax withholding obligations | (670) | (670) | |||
Repurchase of shares to satisfy tax withholding obligations, Shares | (57,703) | ||||
Stock-based compensation expense | 4,872 | 4,872 | |||
Other comprehensive gain (loss) | 148 | 148 | |||
Net loss | (35,385) | (35,385) | |||
Ending Balance at Mar. 31, 2019 | 234,326 | $ 34 | 564,316 | 42 | (330,066) |
Ending Balance, Shares at Mar. 31, 2019 | 34,838,684 | ||||
Beginning Balance at Dec. 31, 2018 | 265,139 | $ 34 | 559,892 | (106) | (294,681) |
Beginning Balance, Shares at Dec. 31, 2018 | 34,745,721 | ||||
Net loss | (69,776) | ||||
Ending Balance at Jun. 30, 2019 | 206,612 | $ 34 | 570,893 | 142 | (364,457) |
Ending Balance, Shares at Jun. 30, 2019 | 34,964,313 | ||||
Beginning Balance at Mar. 31, 2019 | 234,326 | $ 34 | 564,316 | 42 | (330,066) |
Beginning Balance, Shares at Mar. 31, 2019 | 34,838,684 | ||||
Issuance of common stock under equity incentive plans | 772 | 772 | |||
Issuance of common stock under equity incentive plans, Shares | 131,586 | ||||
Repurchase of shares to satisfy tax withholding obligations | (58) | (58) | |||
Repurchase of shares to satisfy tax withholding obligations, Shares | (5,957) | ||||
Stock-based compensation expense | 5,863 | 5,863 | |||
Other comprehensive gain (loss) | 100 | 100 | |||
Net loss | (34,391) | (34,391) | |||
Ending Balance at Jun. 30, 2019 | 206,612 | $ 34 | 570,893 | 142 | (364,457) |
Ending Balance, Shares at Jun. 30, 2019 | 34,964,313 | ||||
Beginning Balance at Dec. 31, 2019 | $ 150,473 | $ 35 | 582,243 | 78 | (431,883) |
Beginning Balance, Shares at Dec. 31, 2019 | 35,219,791 | 35,219,791 | |||
Issuance of common stock under equity incentive plans, Shares | 169,324 | ||||
Repurchase of shares to satisfy tax withholding obligations | $ (277) | (277) | |||
Repurchase of shares to satisfy tax withholding obligations, Shares | (65,059) | ||||
Stock-based compensation expense | 4,482 | 4,482 | |||
Other comprehensive gain (loss) | (19) | (19) | |||
Net loss | (20,116) | (20,116) | |||
Ending Balance at Mar. 31, 2020 | 134,543 | $ 35 | 586,448 | 59 | (451,999) |
Ending Balance, Shares at Mar. 31, 2020 | 35,324,056 | ||||
Beginning Balance at Dec. 31, 2019 | $ 150,473 | $ 35 | 582,243 | 78 | (431,883) |
Beginning Balance, Shares at Dec. 31, 2019 | 35,219,791 | 35,219,791 | |||
Net loss | $ (37,053) | ||||
Ending Balance at Jun. 30, 2020 | $ 119,944 | $ 35 | 588,823 | 22 | (468,936) |
Ending Balance, Shares at Jun. 30, 2020 | 35,481,224 | 35,481,224 | |||
Beginning Balance at Mar. 31, 2020 | $ 134,543 | $ 35 | 586,448 | 59 | (451,999) |
Beginning Balance, Shares at Mar. 31, 2020 | 35,324,056 | ||||
Issuance of common stock under equity incentive plans | 299 | 299 | |||
Issuance of common stock under equity incentive plans, Shares | 192,759 | ||||
Repurchase of shares to satisfy tax withholding obligations | (103) | (103) | |||
Repurchase of shares to satisfy tax withholding obligations, Shares | (35,591) | ||||
Stock-based compensation expense | 2,179 | 2,179 | |||
Other comprehensive gain (loss) | (37) | (37) | |||
Net loss | (16,937) | (16,937) | |||
Ending Balance at Jun. 30, 2020 | $ 119,944 | $ 35 | $ 588,823 | $ 22 | $ (468,936) |
Ending Balance, Shares at Jun. 30, 2020 | 35,481,224 | 35,481,224 |
Statements of Cash Flows (Unaud
Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Operating activities | ||
Net loss | $ (37,053) | $ (69,776) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 2,022 | 2,664 |
Stock-based compensation expense | 6,661 | 10,735 |
Amortization of discounts and premiums on marketable securities | (172) | (1,446) |
Non-cash operating lease expense | 1,261 | 1,143 |
Write-off of ROU assets | 394 | |
Gain on disposal of property and equipment | (3,617) | |
Changes in operating assets and liabilities: | ||
Receivables from collaborative partners | 1,885 | 2,494 |
Prepaid, other current assets and other long-term assets | 793 | (8) |
Accounts payable | (809) | 2,259 |
Accrued personnel-related expenses | (2,434) | (3,796) |
Deferred revenue | (3,663) | (3,779) |
Other accrued liabilities, and other long-term liabilities | 684 | 4,264 |
Operating lease liabilities | (2,017) | (1,084) |
Net cash used in operating activities | (36,065) | (56,330) |
Investing activities | ||
Purchases of marketable securities | (79,419) | (125,088) |
Maturities of marketable securities | 111,766 | 177,142 |
Purchases of property and equipment | (29) | (1,636) |
Net cash provided by investing activities | 39,055 | 50,418 |
Proceeds from sales of property and equipment | 6,737 | |
Financing activities | ||
Proceeds from issuance of common stock under equity incentive plans | 299 | 993 |
Repurchase of shares to satisfy tax withholding obligations | (380) | (728) |
Net cash (used in) provided by financing activities | (81) | 265 |
Net increase (decrease) in cash and cash equivalents and restricted cash | 2,909 | (5,647) |
Cash, cash equivalents and restricted cash at beginning of period | 57,343 | 45,496 |
Cash, cash equivalents and restricted cash at end of period | 60,252 | 39,849 |
Supplemental disclosure | ||
Property and equipment purchases included in accrued liabilities | 57 | |
Supplemental cash flow information | ||
Cash and cash equivalents at beginning of period | 55,800 | 43,953 |
Restricted cash at beginning of period | 1,543 | 1,543 |
Cash, cash equivalents and restricted cash at beginning of period | 57,343 | 45,496 |
Cash and cash equivalents at end of period | 58,709 | 38,306 |
Restricted cash at end of period | 1,543 | 1,543 |
Cash, cash equivalents and restricted cash at end of period | $ 60,252 | $ 39,849 |
Description of Business
Description of Business | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Description of Business | 1. Description of Business Five Prime Therapeutics, Inc. (we, us, our, or the company) is a clinical-stage biotechnology company focused on developing immune modulators and precision therapies to improve the lives of patients with solid tumor cancers Unaudited Interim Financial Information The accompanying financial information as of June 30, 2020 is unaudited. The financial statements included in this report reflect all adjustments (consisting only of normal recurring adjustments) that our management considers necessary for the fair statement of the results of operations for the interim periods covered and of our financial condition at the date of the interim balance sheet. The accompanying unaudited financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or GAAP, for interim financial information. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. The results for interim periods are not necessarily indicative of the results for the entire year or any other interim period. The accompanying financial statements and related financial information should be read in conjunction with the audited financial statements and the related notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2019, filed with the U.S. Securities and Exchange Commission, or the SEC, on February 27, 2020, or our Annual Report. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes as of the date of the financial statements Management bases its estimates on historical experience and on various other market-specific and relevant assumptions that management believes to be reasonable. The COVID-19 pandemic may impact the clinical and preclinical development timelines for our clinical and preclinical programs. Estimates and assumptions about future events and their effects cannot be determined with certainty and therefore require the exercise of . As of the date of issuance of these financial statements, we are not aware of any specific event or circumstance that would require us to update our estimates, assumptions and judgments or revise the carrying value of our assets or liabilities. These estimates may change as new events occur and additional information is obtained and are recognized in the financial statements as soon as they become known. Actual results could differ from those estimates and any such differences may be material to our financial statements. Restricted Cash Restricted cash consists of a certificate of deposit held by our bank as collateral for a standby letter of credit in the same notional amount by our landlord to secure our obligations under our corporate office and laboratory facility lease that we entered into in December 2016. We are required to maintain this restricted cash balance, the amount of which is subject to reduction starting on January 1, 2023 if certain conditions are met, for the duration of this lease. Fair Value of Financial Instruments We determine the fair value of financial and nonfinancial assets and liabilities using the fair value hierarchy, which describes three levels of inputs that may be used to measure fair value, as follows: Level 1 —Quoted prices in active markets for identical assets or liabilities; Level 2 —Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and 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. We determine the fair value of Level 1 assets using quoted prices in active markets for identical assets. We review trading activity and pricing for Level 2 investments as of each measurement date. Level 2 inputs, which are obtained from various third-party data providers, represent quoted prices for similar assets in active markets and were derived from observable market data, or, if not directly observable, were derived from or corroborated by other observable market data. In certain cases where there is limited activity or less transparency around inputs to valuation, we classify securities as Level 3 within the valuation hierarchy. We do not have any assets or liabilities measured using Level 3 inputs as of June 30, 2020. The following table summarizes our financial instruments that were measured at fair value on a recurring basis by level of input within the fair value hierarchy defined above (in thousands): June 30, 2020 Basis of Fair Value Measurements Total Level 1 Level 2 Level 3 Assets Money market funds $ 26,255 $ 26,255 $ — $ — U.S. Treasury securities 49,549 49,549 — — Agency bonds 8,790 8,790 — — Corporate bonds 9,703 — 9,703 — Commercial paper 10,998 10,998 Certificate of deposit 1,543 1,543 Total $ 106,838 $ 84,594 $ 22,244 $ — December 31, 2019 Basis of Fair Value Measurements Total Level 1 Level 2 Level 3 Assets Money market funds $ 21,706 $ 21,706 $ — $ — U.S. Treasury securities 35,498 35,498 — — Agency bonds 48,834 48,834 — — Corporate bonds 1,800 — 1,800 — Commercial paper 19,195 — 19,195 — Certificate of deposit 1,543 — 1,543 — Total $ 128,576 $ 106,038 $ 22,538 $ — Revenue Recognition We determine revenue recognition for arrangements within the scope of Financial Accounting Standards Board, or FASB, Accounting Standard Update, or ASU, 2014-09, Revenue from Contracts with Customers (Topic 606) The terms of our license and collaborative research and development agreements include upfront and license fees, research, development and other funding or reimbursements, milestone and other contingent payments for the achievement of defined collaboration objectives and certain preclinical, clinical, regulatory and sales-based events, as well as royalties on sales of commercialized products. Arrangements that include upfront payments may require deferral of revenue recognition to a future period until we perform obligations under these arrangements. We record research and development funding payable to us as accounts receivable when our right to consideration is unconditional. The event-based milestone and other contingent payments represent variable consideration, and we use the most likely amount method to estimate this variable consideration. Given the high degree of uncertainty around occurrence of these events, we determine the milestone and other contingent amounts to be fully constrained until the uncertainty associated with these payments is resolved. We will recognize revenue from sales-based royalty payments when or as the sales occur. We will re-evaluate the transaction price in each reporting period as uncertain events are resolved and other changes in circumstances occur. A performance obligation is a promise in a contract to transfer a distinct good or service and is the unit of accounting in Topic 606. A contract’s transaction price is allocated among each distinct performance obligation based on relative standalone selling price and recognized as revenue when, or as, the applicable performance obligation is satisfied. Under Topic 606, we elected to use the practical expedient permitted related to adoption, which does not require us to disclose certain information regarding our remaining performance obligations as of the end of the reporting period prior to the initial date of adoption. Additionally, we elected the practical expedient for certain research and development funding which allows us to recognize revenue in the amount for which we have a right to invoice if our right to consideration is an amount that corresponds directly to the value of our performance completed to date. As a result, we effectively bypass the steps of determining the transaction price and allocating that transaction price to the performance obligation. Net Loss Per Share of Common Stock We compute basic net loss per common share by dividing net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share attributable to common stockholders is the same as basic net loss per share attributable to common stockholders, since the effect of potentially dilutive securities is antidilutive. We excluded the following securities from the calculation of basic net loss per share (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Options to purchase common stock 4,949 4,019 4,376 3,944 Restricted stock awards (RSAs) 1,217 1,227 1,221 1,102 6,166 5,246 5,597 5,046 Restructuring and Other Charges We account for costs related to our restructuring activities in accordance with ASC 420, Exit or Disposal Cost Obligations We recognize other restructuring costs, including lease or other contract termination costs incurred in connection with terminating a contract before the end of its term, when we terminate the contract in accordance with its terms. See Note 7 for additional information regarding charges related to our corporate restructurings. Accounting Pronouncements Adopted in 2020 In November 2018, FASB issued ASU No. 2018-18, Collaborative Arrangements (Topic 808) clarifies when certain transactions between collaborative arrangement participants should be accounted for under Topic 606 and incorporates unit-of-account guidance consistent with Topic 606 to aid in this determination. We adopted ASU 2018-18, effective January 1, 2020, to be applied retrospectively to the date of initial application of Topic 606. The adoption of ASU 2018-18 had no effect on our financial statements and disclosures. In August 2018, FASB issued ASU 2018-13, Fair Value Measurement–Disclosure Framework (Topic 820) In June 2016, FASB issued ASU 2016-13, Financial Instruments–Credit Losses (Topic 326) In April 2015, FASB issued ASU 2018-15, Intangibles–Goodwill and Other–Internal-Use Software (Topic 350) , or ASU 2018-15. ASU 2018-15 requires a customer in a cloud computing arrangement that is a service contract to follow the internal use software guidance to determine which implementation costs to defer and recognize as an asset. We adopted ASU 2018-15, effective January 1, 2020, to be applied p rospectively to all implementation costs incurred after the date of adoption. The adoption of ASU 2018-15 had no effect on our financial statements and disclosures . Accounting Pronouncements Not Yet Adopted In December 2019, FASB issued ASU 2019-12, Income Taxes–Simplifying the Accounting for Income Taxes (Topic 740) |
Cash Equivalents and Marketable
Cash Equivalents and Marketable Securities | 6 Months Ended |
Jun. 30, 2020 | |
Cash And Cash Equivalents [Abstract] | |
Cash Equivalents and Marketable Securities | 3. Cash Equivalents and Marketable Securities The following table summarizes our cash equivalents and marketable securities aggregated by investment category (in thousands): June 30, 2020 Amortized Unrealized Unrealized Estimated Cost Basis Gains Losses Fair Value Money market funds $ 26,255 $ — $ — $ 26,255 U.S. Treasury securities 49,546 3 — 49,549 Agency bonds 8,781 9 — 8,790 Corporate bonds 9,700 3 — 9,703 Commercial paper 10,991 7 — 10,998 Total cash equivalents and marketable securities 105,273 22 — 105,295 Less: cash equivalents (36,946 ) — — (36,946 ) Total marketable securities $ 68,327 $ 22 $ — $ 68,349 December 31, 2019 Amortized Unrealized Unrealized Estimated Cost Basis Gains Losses Fair Value Money market funds $ 21,706 $ — $ — $ 21,706 U.S. Treasury securities 35,471 27 — 35,498 Agency bonds 48,790 44 — 48,834 Corporate bonds 1,800 — — 1,800 Commercial paper 19,188 7 — 19,195 Total cash equivalents and marketable securities 126,955 78 — 127,033 Less: cash equivalents (26,453 ) — — (26,453 ) Total marketable securities $ 100,502 $ 78 $ — $ 100,580 There were no marketable securities in a continuous unrealized loss position for 12 months or less as of June 30, 2020 and December 31, 2019. There were no sales of available-for-sale securities in any of the periods presented. As such, no allowance for credit losses was necessary. As of June 30, 2020, the amortized cost and estimated fair value of our available-for-sale securities by contractual maturity are shown below (in thousands): Amortized Estimated Cost Fair Value Debt securities maturing: In one year or less $ 68,327 $ 68,349 Total marketable securities $ 68,327 $ 68,349 We considered the current and expected future economic and market conditions surrounding the COVID-19 pandemic and determined that the estimate of credit losses was not significantly impacted. |
Equity Incentive Plans
Equity Incentive Plans | 6 Months Ended |
Jun. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Equity Incentive Plans | 4. Equity Incentive Plans The following table summarizes option activity under our equity incentive plans and related information: Options Outstanding Weighted Weighted Average Average Remaining Number of Exercise Price Contractual Shares Per Share Term (years) Balance at December 31, 2019 3,314,722 $ 20.50 Options granted 1,960,502 4.34 Options exercised (27,516 ) 5.11 Options forfeited (192,654 ) 10.28 Options expired (33,929 ) 28.81 Balance at June 30, 2020 5,021,125 14.61 6.96 Options exercisable at June 30, 2020 2,925,075 20.18 5.26 We have granted restricted stock awards, or RSAs, some of which are subject to performance conditions and/or market conditions. RSAs are share awards that entitle the holder to receive freely tradable shares of our common stock upon vesting and are not forfeitable once fully vested. We base the fair value of RSAs on the closing sale price of our common stock on the grant date. For RSAs subject to market conditions, we based the fair value of the awards on a Monte Carlo simulation model. For RSAs subject to performance conditions, we recognize stock-based compensation expense using the accelerated attribution recognition method when it is probable that the performance condition will be achieved and, for RSAs subject to market conditions, we recognize stock-based compensation expense commencing at the grant date over the derived service period. The following table summarizes RSA activity under our 2013 Omnibus Incentive Plan and related information: RSAs Outstanding Weighted-Average Number Grant-Date of Shares Fair Value Unvested balance at December 31, 2019 1,060,577 $ 11.24 RSAs granted 592,950 4.87 RSAs vested (281,684 ) 18.36 RSAs forfeited (202,426 ) 11.40 Unvested balance at June 30, 2020 1,169,417 6.27 As of June 30, 2020, there were 2,269,756 shares of common stock available for future issuance under our 2013 Omnibus Incentive Plan. Stock-Based Compensation Total stock-based compensation expense recognized was as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Research and development $ 722 $ 2,621 $ 1,675 $ 4,383 General and administrative 1,457 3,243 4,986 6,352 Total $ 2,179 $ 5,864 $ 6,661 $ 10,735 We estimated the fair value of stock options using the Black-Scholes option pricing model based on the date of grant of the applicable stock option with the following assumptions: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Expected term (years) 5.0-6.3 5.5-6.3 5.0-6.3 5.5-6.3 Expected volatility 71.6% 67.7% 68.9%-71.6% 67.7% Risk-free interest rate 0.4%-0.5% 2.2% 0.4%-1.3% 2.2-2.5% Expected dividend yield 0% 0% 0% 0% As of June 30, 2020, we had $8.2 million of total unrecognized compensation expense related to unvested stock options that we expect to recognize over a weighted-average period of 3.0 years. Additionally, we had $3.5 million of total unrecognized compensation expense related to employee and director RSAs that we expect to recognize over a weighted-average period of 2.0 years. Stock Option Exchange Program On July 1, 2019, we commenced a tender offer to our employees, excluding executive officers, to exchange eligible stock options for replacement stock options with modified terms, or our exchange offer. Pursuant to the exchange offer, we offered employees who held outstanding stock options granted on or before June 6, 2018 with an exercise price equal to or greater than $18.00 per share, or eligible options, the opportunity to tender each eligible option in exchange for a new stock option with modified terms, or new options. The exchange offer expired at 6:00 p.m., Pacific time, on July 29, 2019. As of the expiration of the exchange offer, there were 510,932 shares of our common stock underlying the eligible options. Pursuant to the exchange offer, 55 employees elected to exchange outstanding stock options, and we accepted for cancellation stock options to purchase an aggregate of 436,648 shares of common stock, representing approximately 85% of the total shares of common stock underlying the eligible options. On July 29, 2019, immediately following the expiration of the exchange offer, we granted new options to purchase 235,419 shares of common stock, each with an exercise price of $5.06 per share, which was the closing price per share of our common stock on Nasdaq on the grant date. As a result, 201,229 shares of common stock returned to the 2013 Omnibus Incentive Plan reserve and became available for future issuance. Each new option vests in equal monthly amounts over either one or three years, depending on whether the tendered eligible option was fully vested as of July 29, 2019, has a maximum term of seven years and was granted as a nonqualified stock option under our 2013 Omnibus Incentive Plan. The exchange of stock options was treated as a modification for accounting purposes. The unamortized incremental expense remaining on the new options was fully recognized as of July 29, 2020 using the Black-Scholes option pricing model over the new service period that began on the modification date of July 29, 2019. We are recognizing the unamortized expense remaining on the tendered options of $0.5 million as of June 30, 2020 over the remainder of the original requisite service period. |
License and Collaboration Arran
License and Collaboration Arrangements | 6 Months Ended |
Jun. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
License and Collaboration Arrangements | 5. License and Collaboration Arrangements The following tables present changes during the six months ended June 30, 2020 in the balances of our contract assets, including receivables from collaboration partners, and contract liabilities, including deferred revenue (in thousands): Contract Assets Balance at December 31, 2019 $ 4,097 Additions 3,174 Deductions (5,059 ) Balance at June 30, 2020 $ 2,212 Contract Liabilities Balance at December 31, 2019 $ 6,409 Additions for advance billings 996 Deductions for performance obligations satisfied in current period (3,259 ) Deductions for updates to the measure of progress and decrease in transaction price from prior periods (1,400 ) Balance at June 30, 2020 $ 2,746 Bristol-Myers Squibb Company Immuno-Oncology Research Collaboration In March 2014, we entered into a research collaboration and license agreement, or the immuno-oncology research collaboration, with Bristol-Myers Squibb Company, or BMS. We identified one performance obligation under the immuno-oncology research collaboration for the research license to access our technology, the exclusive commercial license and research activities. BMS’s option to select additional collaboration targets is not priced at a discount and therefore does not represent one or more performance obligations for which the transaction price would be allocated. The transaction price of $36.1 million includes the $20.0 million non-refundable upfront fee, $13.7 million of research funding and $2.4 million of equity premium. as uncertain events are resolved and other changes in circumstances occur For the three and six months ended June 30, 2020, no adjustments were made to the transaction price. Under the input method, we recognize revenue on the basis of our efforts or inputs applicable to the satisfaction of a performance obligation (e.g., resources consumed, labor hours expended, costs incurred, or time elapsed) relative to the total expected inputs applicable to the satisfaction of that performance obligation. We concluded that we will recognize revenue based on actual costs incurred as a percentage of total budgeted costs as we complete our performance obligation. As the performance obligation was fully satisfied through March 31, 2019, the transaction price of $36.1 million was fully recognized as collaboration revenue. Revenue recognized from the performance obligation was $0 for each of the three months ended June 30, 2020 and 2019, and $0 and $1.4 million for the six months ended June 30, 2020 and 2019, respectively. L icense and Collaboration Agreement On October 14, 2015, we entered into a license and collaboration agreement, or the cabiralizumab collaboration agreement, with BMS. The cabiralizumab collaboration agreement supersedes the clinical trial collaboration agreement we entered into with BMS in November 2014, or the original collaboration agreement. We assessed the two agreements separately as standalone agreements under Topic 606. Under the original collaboration agreement, we identified one performance obligation for the execution of a Phase 1a/1b clinical trial of cabiralizumab in combination with Opdivo ® We used the input method to measure progress toward completion of the performance obligation and concluded that we will recognize revenue based on actual costs incurred by our clinical research organization, or CRO, as a percentage of total budgeted costs as we complete our performance obligation. We will recognize revenue from reimbursements when we have the right to invoice BMS. As the performance obligation was fully satisfied through June 30, 2020, the transaction price of $30.0 million was fully recognized as collaboration revenue. We recognized $0.1 million and $0.9 million of the transaction price as revenue for the three months ended June 30, 2020 and 2019, respectively, and $0.8 million and $2.9 million for the six months ended June 30, 2020 and 2019, respectively. Total revenue recognized for reimbursements for the three months ended June 30, 2020 and 2019 was $0.3 million and $1.0 million, respectively, and for the six months ended June 30, 2020 and 2019 was $1.8 million and $2.4 million, respectively. Under the cabiralizumab collaboration agreement, we identified the following performance obligations: (1) the license grant to BMS and (2) the transfer of licensed know-how to BMS. The transaction price consisted of the $350.0 million non-refundable up-front fee. As t was fully recognized as revenue concurrent with the transfer of the license and know-how in prior years We concluded that the transaction price should not yet include milestone payments that may become due, as they are fully constrained. We will recognize any consideration related to royalties when the related sales occur, as we have determined that these amounts relate predominantly to the license granted and therefore will be recognized upon the occurrence of the related sales. We will re-evaluate the transaction price in each reporting period as uncertain events are resolved and other changes in circumstances occur. For the three and six months ended June 30, 2020, no adjustments were made to the transaction price. Zai Lab (Shanghai) Co., Ltd. In December 2017, we entered into a license and collaboration agreement, or the China collaboration agreement, with Zai Lab (Shanghai) Co., Ltd., or Zai Lab, pursuant to which we granted Zai Lab an exclusive license to develop and commercialize bemarituzumab in China, Hong Kong, Macau and Taiwan. We are currently dosing patients in a global double-blind Phase 2 clinical trial of bemarituzumab in combination with mFOLFOX6 as front-line treatment of patients with advanced gastric or GEJ cancer that overexpresses FGFR2b, which we refer to as our FIGHT trial . We identified the following performance obligations: (1) the license grant to Zai Lab together with the transfer of licensed know-how, development drug supply and global development activities, or the license grant, and (2) the development of companion diagnostics. Zai Lab has the option to purchase commercial drug supply from us pursuant to a separate commercial supply agreement to be negotiated in the future. The commercial drug supply will be accounted for as a separate contract when Zai Lab exercises this option. The transaction price of $8.9 million consists of the $3.0 million of expected reimbursement from Zai Lab for global development activities, $4.2 million non-refundable upfront fee and $1.7 million clinical development milestone payment. We have not included the regulatory milestone payments in the transaction price, as all such milestone amounts are fully constrained. We will recognize any consideration related to royalties when the related sales occur, as we determined that these amounts relate predominantly to the license granted and therefore will be recognized upon the occurrence of the related sales. We concluded that the reimbursement of costs incurred for the development of companion diagnostics qualifies for t We will re-evaluate the transaction price in each reporting period as uncertain events are resolved and other changes in circumstances occur. During the three and six months ended June 30, 2020, the transaction price for the license grant was reduced to $8.9 million from $14.7 million as a result of We use the input method to measure progress toward completion of the performance obligation for the license grant. We concluded that revenue will be recognized based on actual costs incurred by our CRO as a percentage of total budgeted costs as we complete our performance obligation. We will recognize revenue from reimbursements for the development of companion diagnostics when we have the right to invoice Zai Lab. Revenue recognized for the license grant performance obligation was $2.8 million and $0.4 million for the three months ended June 30, 2020 and 2019, respectively, and $3.4 million and $0.6 million for the six months ended June 30, 2020 and 2019, respectively. Total revenue recognized for the companion diagnostics development performance obligation was $0.2 million and $1.0 million for the three months ended June 30, 2020 and 2019, respectively, and $0.9 million and $1.4 million for the six months ended June 30, 2020 and 2019, respectively. Of the remaining transaction price of $2.5 million, we recorded $2.2 million in deferred revenue, which we will recognize over the estimated performance period for satisfaction of the performance obligations. The remaining $0.3 million of the transaction price will be recorded in deferred revenue when invoiced as we complete global development activities. Seattle Genetics, Inc. In February 2020, we entered into a global license agreement, or the Seattle Genetics license agreement, with Seattle Genetics, Inc., or Seattle Genetics, pursuant to which we granted Seattle Genetics an exclusive worldwide license to a family of monoclonal antibodies that are directed to a single target and Seattle Genetics is responsible for research, development, manufacturing and commercialization of novel antibody-drug conjugate products based on these antibodies. Pursuant to the Seattle Genetics license agreement, Seattle Genetics paid us an upfront fee of $5.0 million. Additionally, we are eligible to receive up to (i) $132.0 million in specified developmental and regulatory milestone payments for the first achievement by the first licensed product, (ii) $68.0 million in specified developmental and regulatory milestone payments for the first achievement by the second licensed product, and (iii) $19.0 million in specified developmental and regulatory milestone payments for each achievement by a subsequent licensed product. We are also eligible to receive up to $162.5 million in sales-based contingent payments per licensed product. Seattle Genetics will also be obligated pay us an additional mid-single-digit percentage royalty on net sales of each licensed product in a region until the latest of: (i) 11 years after the first commercial sale of such licensed product in such region; (ii) the expiration of certain patents covering such licensed product in such region; and (iii) the date on which any applicable regulatory exclusivities with respect to such licensed product expires in such region. We are also eligible to receive annual maintenance fees of $0.2 million. Unless earlier terminated by either party, the Seattle Genetics agreement will expire on a licensed product-by-licensed product and region-by-region basis upon the expiration of Seattle Genetics’s payment obligations with respect to each licensed product under the agreement. Seattle Genetics may terminate the agreement in its entirety at any time with advance written notice. Either party may terminate the agreement in its entirety with written notice for the other party’s material breach if such party fails to cure the breach. We may terminate the agreement in its entirety with written notice for Seattle Genetics’s material breach of its diligence obligations with respect to development and obtaining regulatory approval, and may terminate the agreement on a region-by-region basis for Seattle Genetics’s breach of its diligence obligations with respect to timely commercialization of a licensed product in a region following regulatory approval. We may terminate the agreement in its entirety if Seattle Genetics or its affiliates or sublicensees commences a legal action challenging the validity, enforceability or scope of any of our patents in the region. Either party also may terminate the agreement in its entirety upon certain insolvency events involving the other party. Under the Seattle Genetics license agreement, we identified one performance obligation for the license grant. The transaction price consists of the $5.0 million non-refundable upfront fee. As t transaction price of $5.0 million was fully recognized. For the three and six months ended June 30, 2020, no milestone payments were triggered under the Seattle Genetics license agreement. We will recognize any consideration related to sales-based payments (including milestones and royalties) when the related sales occur, as we have determined that these amounts relate predominantly to the license granted and therefore will be recognized on the later to occur of satisfaction of the performance obligation or the occurrence of the related sales. We will re-evaluate the transaction price for the in each reporting period as uncertain events are resolved and other changes in circumstances occur. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Leases | 6. Leases We adopted ASU 2016-02, effective January 1, 2019, using the updated modified retrospective transition method, in which the new standard is applied as of the date of initial adoption. We recognized and measured agreements executed prior to the date of initial adoption that were considered leases on January 1, 2019. No cumulative effect adjustment of initially applying the standard to the opening balance of retained earnings was made upon adoption. We elected the package of practical expedients permitted under the transition guidance that will r etain the lease classification and initial direct costs for any leases that exist prior to adoption of the In addition, we elected the accounting policy of not recording short-term leases with a lease term at the commencement date of twelve months or less on the balance sheet as permitted by the new standard. When available, we use the rate implicit in the lease to discount lease payments to present value; however, our leases do not provide a readily determinable implicit rate. Therefore, we must estimate our incremental borrowing rate to discount the lease payments based on information available at lease commencement. We entered into a lease agreement for our corporate office and laboratory facility in December 2016, which we refer to as the facility lease. We moved into our new corporate office and laboratory facility in December 2017. The facility lease has an initial term of 10 years, beginning on the rent commencement date, with an option to extend the lease for an additional period of five years. We did not have to pay rent until the rent commencement date of January 1, 2018, and rent was reduced by 50% for the first six months. The facility lease contains scheduled rent increases over the lease term. We received lease incentives from our landlord for a portion of the costs of leasehold improvements we made to the premises. In addition, the facility lease required us to deliver an irrevocable standby letter of credit in an amount of $1.5 million to the landlord for the period commencing on the effective date of the facility lease until at least 60 days after the expiration of the lease, subject to 50% reduction on January 1, 2023 if certain conditions are met. In October 2019, we commenced a corporate restructuring to extend our cash runway and ensure long-term sustainability. As part of the restructuring, we are engaged in activities to reduce our corporate facilities footprint by either subletting a significant portion of our current leased space or subletting our current building and relocating to smaller facilities. In July 2018, we entered into a lease agreement for the installation, operational qualifications and performance qualifications of four sequencing instruments to support our bemarituzumab program, which we refer to as the instruments lease. The instruments lease has two three-year May 2020 We have evaluated our leases and determined that, effective upon the adoption of ASU 2016-02, they were all operating leases. The classification of our leases is consistent with our determination under the previous accounting standard. The balance sheet classification of our lease assets and liabilities is presented on our balance sheet. We recognize operating lease cost as a single lease cost, calculated so that the cost of the lease is allocated over the lease term on a straight-line basis. Variable lease payments that are not included in the lease liability are recognized on the statement of operations in the period in which the obligation for those payments is incurred. The termination of the instruments lease was accounted for by derecognizing the lease assets from the balance sheet. The lease liabilities will not be derecognized from the balance sheet until the liability is extinguished when the final lease payment is made. The discount rate of our facility lease is 7%, and the remaining lease term of our facility lease is seven years as of June 30, 2020. The table below reconciles the undiscounted cash flows for each of the first five years and the total of the remaining years to the operating lease labilities recorded on the balance sheet (in thousands): Operating Leases Remainder of 2020 $ 3,993 Years ending December 31, 2021 7,524 2022 7,787 2023 8,064 2024 8,341 2025 and beyond 26,825 Total minimum lease payments $ 62,534 Less: amount of lease payments representing interest (14,939 ) Present value of future minimum lease payments $ 47,595 Less: operating lease obligations, current portion (4,398 ) Operating lease obligations, long-term portion $ 43,197 |
Restructuring and Other Charges
Restructuring and Other Charges | 6 Months Ended |
Jun. 30, 2020 | |
Restructuring And Related Activities [Abstract] | |
Restructuring and Other Charges | 7. Restructuring and other charges In January 2019, we implemented a corporate restructuring, or the January restructuring, to focus our resources on clinical development and late-stage research programs. Pursuant to the January restructuring, we eliminated 41 employee positions, representing approximately 20% of our then-current headcount, primarily in areas relating to research, pathology and manufacturing. The January restructuring was completed during the first quarter of 2019 and restructuring charges amounted to approximately $1.8 million for severance and other benefit costs related to the restructuring. In October 2019, we announced a second corporate restructuring, or the October restructuring, to extend our cash runway and ensure long-term sustainability. As part of the October restructuring, we reduced our workforce by 63 positions across all functions. In addition, we are engaged in activities to reduce our corporate facilities footprint by either subletting a significant portion of our current leased space or subletting our current building and relocating to smaller facilities. We expect the October restructuring to be completed by the end of 2020. As of June 30, 2020, we incurred approximately $6.1 million for severance, other termination costs and employee retention costs related to the October restructuring. Asset Impairment Charge In conjunction with our corporate restructurings, we evaluated the lab equipment we owned and determined that the carrying value was no longer recoverable. An impairment loss of $1.9 million was recorded in our research and development costs within our statement of operations, primarily during the fourth quarter of 2019. We reclassified the lab equipment from property and equipment to assets held for sale within our balance sheet for the first quarter of 2020. In April 2020, we sold the majority of the lab equipment through an auction conducted by a third-party vendor recorded a gain of $3.4 million for the proceeds of such auction against . The following table summarizes management’s estimates of costs that are expected to be incurred that are probable and can be estimated as of June 30, 2020 and the actual costs incurred through June 30, 2020 in connection with our corporate restructurings (in thousands): Total Estimated Restructuring Total Restructuring Cost Incurred Costs To Date Employee retention, severance and termination benefits $ 7,202 $ 6,148 Gains on sale, net asset impairments and other costs (3,298 ) (3,298 ) $ 3,904 $ 2,850 The following table presents the components of restructuring and other related costs for the three and six months ended June 30, 2020 and their location within our income statement (in thousands): For the Three Months Ended For the Six Months Ended June 30, June 30, 2020 2019 2020 2019 Research and development $ (4,999 ) $ — $ (4,018 ) $ 1,893 General and administrative 229 — 252 — Total $ (4,770 ) $ — $ (3,766 ) $ 1,893 The following table presents the activity in the accrued personnel-related expense liability associated with the restructurings for the six months ended June 30, 2020 (in thousands): Total Severance and Retention Costs Accrued balance as of December 31, 2019 $ 1,182 Charges 1,619 Cash payments (1,385 ) Accrued balance as of June 30, 2020 $ 1,416 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes as of the date of the financial statements Management bases its estimates on historical experience and on various other market-specific and relevant assumptions that management believes to be reasonable. The COVID-19 pandemic may impact the clinical and preclinical development timelines for our clinical and preclinical programs. Estimates and assumptions about future events and their effects cannot be determined with certainty and therefore require the exercise of . As of the date of issuance of these financial statements, we are not aware of any specific event or circumstance that would require us to update our estimates, assumptions and judgments or revise the carrying value of our assets or liabilities. These estimates may change as new events occur and additional information is obtained and are recognized in the financial statements as soon as they become known. Actual results could differ from those estimates and any such differences may be material to our financial statements. |
Restricted Cash | Restricted Cash Restricted cash consists of a certificate of deposit held by our bank as collateral for a standby letter of credit in the same notional amount by our landlord to secure our obligations under our corporate office and laboratory facility lease that we entered into in December 2016. We are required to maintain this restricted cash balance, the amount of which is subject to reduction starting on January 1, 2023 if certain conditions are met, for the duration of this lease. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments We determine the fair value of financial and nonfinancial assets and liabilities using the fair value hierarchy, which describes three levels of inputs that may be used to measure fair value, as follows: Level 1 —Quoted prices in active markets for identical assets or liabilities; Level 2 —Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and 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. We determine the fair value of Level 1 assets using quoted prices in active markets for identical assets. We review trading activity and pricing for Level 2 investments as of each measurement date. Level 2 inputs, which are obtained from various third-party data providers, represent quoted prices for similar assets in active markets and were derived from observable market data, or, if not directly observable, were derived from or corroborated by other observable market data. In certain cases where there is limited activity or less transparency around inputs to valuation, we classify securities as Level 3 within the valuation hierarchy. We do not have any assets or liabilities measured using Level 3 inputs as of June 30, 2020. The following table summarizes our financial instruments that were measured at fair value on a recurring basis by level of input within the fair value hierarchy defined above (in thousands): June 30, 2020 Basis of Fair Value Measurements Total Level 1 Level 2 Level 3 Assets Money market funds $ 26,255 $ 26,255 $ — $ — U.S. Treasury securities 49,549 49,549 — — Agency bonds 8,790 8,790 — — Corporate bonds 9,703 — 9,703 — Commercial paper 10,998 10,998 Certificate of deposit 1,543 1,543 Total $ 106,838 $ 84,594 $ 22,244 $ — December 31, 2019 Basis of Fair Value Measurements Total Level 1 Level 2 Level 3 Assets Money market funds $ 21,706 $ 21,706 $ — $ — U.S. Treasury securities 35,498 35,498 — — Agency bonds 48,834 48,834 — — Corporate bonds 1,800 — 1,800 — Commercial paper 19,195 — 19,195 — Certificate of deposit 1,543 — 1,543 — Total $ 128,576 $ 106,038 $ 22,538 $ — |
Revenue Recognition | Revenue Recognition We determine revenue recognition for arrangements within the scope of Financial Accounting Standards Board, or FASB, Accounting Standard Update, or ASU, 2014-09, Revenue from Contracts with Customers (Topic 606) The terms of our license and collaborative research and development agreements include upfront and license fees, research, development and other funding or reimbursements, milestone and other contingent payments for the achievement of defined collaboration objectives and certain preclinical, clinical, regulatory and sales-based events, as well as royalties on sales of commercialized products. Arrangements that include upfront payments may require deferral of revenue recognition to a future period until we perform obligations under these arrangements. We record research and development funding payable to us as accounts receivable when our right to consideration is unconditional. The event-based milestone and other contingent payments represent variable consideration, and we use the most likely amount method to estimate this variable consideration. Given the high degree of uncertainty around occurrence of these events, we determine the milestone and other contingent amounts to be fully constrained until the uncertainty associated with these payments is resolved. We will recognize revenue from sales-based royalty payments when or as the sales occur. We will re-evaluate the transaction price in each reporting period as uncertain events are resolved and other changes in circumstances occur. A performance obligation is a promise in a contract to transfer a distinct good or service and is the unit of accounting in Topic 606. A contract’s transaction price is allocated among each distinct performance obligation based on relative standalone selling price and recognized as revenue when, or as, the applicable performance obligation is satisfied. Under Topic 606, we elected to use the practical expedient permitted related to adoption, which does not require us to disclose certain information regarding our remaining performance obligations as of the end of the reporting period prior to the initial date of adoption. Additionally, we elected the practical expedient for certain research and development funding which allows us to recognize revenue in the amount for which we have a right to invoice if our right to consideration is an amount that corresponds directly to the value of our performance completed to date. As a result, we effectively bypass the steps of determining the transaction price and allocating that transaction price to the performance obligation. |
Net Loss Per Share of Common Stock | Net Loss Per Share of Common Stock We compute basic net loss per common share by dividing net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share attributable to common stockholders is the same as basic net loss per share attributable to common stockholders, since the effect of potentially dilutive securities is antidilutive. We excluded the following securities from the calculation of basic net loss per share (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Options to purchase common stock 4,949 4,019 4,376 3,944 Restricted stock awards (RSAs) 1,217 1,227 1,221 1,102 6,166 5,246 5,597 5,046 |
Restructuring and Other Charges | Restructuring and Other Charges We account for costs related to our restructuring activities in accordance with ASC 420, Exit or Disposal Cost Obligations We recognize other restructuring costs, including lease or other contract termination costs incurred in connection with terminating a contract before the end of its term, when we terminate the contract in accordance with its terms. See Note 7 for additional information regarding charges related to our corporate restructurings. |
Accounting Pronouncements Adopted in 2020 | Accounting Pronouncements Adopted in 2020 In November 2018, FASB issued ASU No. 2018-18, Collaborative Arrangements (Topic 808) clarifies when certain transactions between collaborative arrangement participants should be accounted for under Topic 606 and incorporates unit-of-account guidance consistent with Topic 606 to aid in this determination. We adopted ASU 2018-18, effective January 1, 2020, to be applied retrospectively to the date of initial application of Topic 606. The adoption of ASU 2018-18 had no effect on our financial statements and disclosures. In August 2018, FASB issued ASU 2018-13, Fair Value Measurement–Disclosure Framework (Topic 820) In June 2016, FASB issued ASU 2016-13, Financial Instruments–Credit Losses (Topic 326) In April 2015, FASB issued ASU 2018-15, Intangibles–Goodwill and Other–Internal-Use Software (Topic 350) , or ASU 2018-15. ASU 2018-15 requires a customer in a cloud computing arrangement that is a service contract to follow the internal use software guidance to determine which implementation costs to defer and recognize as an asset. We adopted ASU 2018-15, effective January 1, 2020, to be applied p rospectively to all implementation costs incurred after the date of adoption. The adoption of ASU 2018-15 had no effect on our financial statements and disclosures . |
Accounting Pronouncements Not Yet Adopted | Accounting Pronouncements Not Yet Adopted In December 2019, FASB issued ASU 2019-12, Income Taxes–Simplifying the Accounting for Income Taxes (Topic 740) |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Financial Instruments Measured at Fair Value | The following table summarizes our financial instruments that were measured at fair value on a recurring basis by level of input within the fair value hierarchy defined above (in thousands): June 30, 2020 Basis of Fair Value Measurements Total Level 1 Level 2 Level 3 Assets Money market funds $ 26,255 $ 26,255 $ — $ — U.S. Treasury securities 49,549 49,549 — — Agency bonds 8,790 8,790 — — Corporate bonds 9,703 — 9,703 — Commercial paper 10,998 10,998 Certificate of deposit 1,543 1,543 Total $ 106,838 $ 84,594 $ 22,244 $ — December 31, 2019 Basis of Fair Value Measurements Total Level 1 Level 2 Level 3 Assets Money market funds $ 21,706 $ 21,706 $ — $ — U.S. Treasury securities 35,498 35,498 — — Agency bonds 48,834 48,834 — — Corporate bonds 1,800 — 1,800 — Commercial paper 19,195 — 19,195 — Certificate of deposit 1,543 — 1,543 — Total $ 128,576 $ 106,038 $ 22,538 $ — |
Securities Excluded from Calculation of Basic Net Loss Per Share | We excluded the following securities from the calculation of basic net loss per share (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Options to purchase common stock 4,949 4,019 4,376 3,944 Restricted stock awards (RSAs) 1,217 1,227 1,221 1,102 6,166 5,246 5,597 5,046 |
Cash Equivalents and Marketab_2
Cash Equivalents and Marketable Securities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Cash And Cash Equivalents [Abstract] | |
Summary of Cash Equivalents and Marketable Securities Aggregated by Investment Category | The following table summarizes our cash equivalents and marketable securities aggregated by investment category (in thousands): June 30, 2020 Amortized Unrealized Unrealized Estimated Cost Basis Gains Losses Fair Value Money market funds $ 26,255 $ — $ — $ 26,255 U.S. Treasury securities 49,546 3 — 49,549 Agency bonds 8,781 9 — 8,790 Corporate bonds 9,700 3 — 9,703 Commercial paper 10,991 7 — 10,998 Total cash equivalents and marketable securities 105,273 22 — 105,295 Less: cash equivalents (36,946 ) — — (36,946 ) Total marketable securities $ 68,327 $ 22 $ — $ 68,349 December 31, 2019 Amortized Unrealized Unrealized Estimated Cost Basis Gains Losses Fair Value Money market funds $ 21,706 $ — $ — $ 21,706 U.S. Treasury securities 35,471 27 — 35,498 Agency bonds 48,790 44 — 48,834 Corporate bonds 1,800 — — 1,800 Commercial paper 19,188 7 — 19,195 Total cash equivalents and marketable securities 126,955 78 — 127,033 Less: cash equivalents (26,453 ) — — (26,453 ) Total marketable securities $ 100,502 $ 78 $ — $ 100,580 |
Summary of Marketable Securities in Continuous Unrealized Loss Position | |
Schedule of Amortized Cost and Estimated Fair Value of Available-for-Sale Securities by Contractual Maturity | As of June 30, 2020, the amortized cost and estimated fair value of our available-for-sale securities by contractual maturity are shown below (in thousands): Amortized Estimated Cost Fair Value Debt securities maturing: In one year or less $ 68,327 $ 68,349 Total marketable securities $ 68,327 $ 68,349 |
Equity Incentive Plans (Tables)
Equity Incentive Plans (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Option Activity under Equity Incentive Plans and Related Information | The following table summarizes option activity under our equity incentive plans and related information: Options Outstanding Weighted Weighted Average Average Remaining Number of Exercise Price Contractual Shares Per Share Term (years) Balance at December 31, 2019 3,314,722 $ 20.50 Options granted 1,960,502 4.34 Options exercised (27,516 ) 5.11 Options forfeited (192,654 ) 10.28 Options expired (33,929 ) 28.81 Balance at June 30, 2020 5,021,125 14.61 6.96 Options exercisable at June 30, 2020 2,925,075 20.18 5.26 |
Schedule of Restricted Stock Award Activity under 2013 Omnibus Incentive Plan and Related Information | The following table summarizes RSA activity under our 2013 Omnibus Incentive Plan and related information: RSAs Outstanding Weighted-Average Number Grant-Date of Shares Fair Value Unvested balance at December 31, 2019 1,060,577 $ 11.24 RSAs granted 592,950 4.87 RSAs vested (281,684 ) 18.36 RSAs forfeited (202,426 ) 11.40 Unvested balance at June 30, 2020 1,169,417 6.27 |
Schedule of Stock-Based Compensation Expenses Recognized | Total stock-based compensation expense recognized was as follows (in thousands) Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Research and development $ 722 $ 2,621 $ 1,675 $ 4,383 General and administrative 1,457 3,243 4,986 6,352 Total $ 2,179 $ 5,864 $ 6,661 $ 10,735 |
Schedule of Stock Options Weighted-Average Assumptions | We estimated the fair value of stock options using the Black-Scholes option pricing model based on the date of grant of the applicable stock option with the following assumptions: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Expected term (years) 5.0-6.3 5.5-6.3 5.0-6.3 5.5-6.3 Expected volatility 71.6% 67.7% 68.9%-71.6% 67.7% Risk-free interest rate 0.4%-0.5% 2.2% 0.4%-1.3% 2.2-2.5% Expected dividend yield 0% 0% 0% 0% |
License and Collaboration Arr_2
License and Collaboration Arrangements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Summary of Changes in Balances of Contract Assets and Contract Liabilities | The following tables present changes during the six months ended June 30, 2020 in the balances of our contract assets, including receivables from collaboration partners, and contract liabilities, including deferred revenue (in thousands): Contract Assets Balance at December 31, 2019 $ 4,097 Additions 3,174 Deductions (5,059 ) Balance at June 30, 2020 $ 2,212 Contract Liabilities Balance at December 31, 2019 $ 6,409 Additions for advance billings 996 Deductions for performance obligations satisfied in current period (3,259 ) Deductions for updates to the measure of progress and decrease in transaction price from prior periods (1,400 ) Balance at June 30, 2020 $ 2,746 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Operating Lease Liabilities Payments Due [Abstract] | |
Summary of Undiscounted Cash Flows to Operating Lease Liabilities | The table below reconciles the undiscounted cash flows for each of the first five years and the total of the remaining years to the operating lease labilities recorded on the balance sheet (in thousands): Operating Leases Remainder of 2020 $ 3,993 Years ending December 31, 2021 7,524 2022 7,787 2023 8,064 2024 8,341 2025 and beyond 26,825 Total minimum lease payments $ 62,534 Less: amount of lease payments representing interest (14,939 ) Present value of future minimum lease payments $ 47,595 Less: operating lease obligations, current portion (4,398 ) Operating lease obligations, long-term portion $ 43,197 |
Restructuring and Other Charg_2
Restructuring and Other Charges (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Restructuring And Related Activities [Abstract] | |
Summary of Management's Expected and Actual Costs | The following table summarizes management’s estimates of costs that are expected to be incurred that are probable and can be estimated as of June 30, 2020 and the actual costs incurred through June 30, 2020 in connection with our corporate restructurings (in thousands): Total Estimated Restructuring Total Restructuring Cost Incurred Costs To Date Employee retention, severance and termination benefits $ 7,202 $ 6,148 Gains on sale, net asset impairments and other costs (3,298 ) (3,298 ) $ 3,904 $ 2,850 |
Summary of Components of Restructuring and Other Related Costs and their Location within Income Statement | The following table presents the components of restructuring and other related costs for the three and six months ended June 30, 2020 and their location within our income statement (in thousands): For the Three Months Ended For the Six Months Ended June 30, June 30, 2020 2019 2020 2019 Research and development $ (4,999 ) $ — $ (4,018 ) $ 1,893 General and administrative 229 — 252 — Total $ (4,770 ) $ — $ (3,766 ) $ 1,893 |
Summary of Accrued Personnel-related Expense Liability Associated with Restructuring | The following table presents the activity in the accrued personnel-related expense liability associated with the restructurings for the six months ended June 30, 2020 (in thousands): Total Severance and Retention Costs Accrued balance as of December 31, 2019 $ 1,182 Charges 1,619 Cash payments (1,385 ) Accrued balance as of June 30, 2020 $ 1,416 |
Description of Business - Addit
Description of Business - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2020Segment | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Number of operating segment | 1 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Summary of Financial Instruments Measured at Fair Value (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Total | $ 106,838 | $ 128,576 |
Money market funds [Member] | ||
Assets | ||
Cash equivalents | 26,255 | 21,706 |
Agency Bonds [Member] | ||
Assets | ||
Cash equivalents | 8,790 | 48,834 |
Corporate bonds [Member] | ||
Assets | ||
Cash equivalents | 9,703 | 1,800 |
Commercial paper [Member] | ||
Assets | ||
Cash equivalents | 10,998 | 19,195 |
Certificate of deposit [Member] | ||
Assets | ||
Cash equivalents | 1,543 | 1,543 |
Level 1 [Member] | ||
Assets | ||
Total | 84,594 | 106,038 |
Level 1 [Member] | Money market funds [Member] | ||
Assets | ||
Cash equivalents | 26,255 | 21,706 |
Level 1 [Member] | Agency Bonds [Member] | ||
Assets | ||
Cash equivalents | 8,790 | 48,834 |
Level 2 [Member] | ||
Assets | ||
Total | 22,244 | 22,538 |
Level 2 [Member] | Corporate bonds [Member] | ||
Assets | ||
Cash equivalents | 9,703 | 1,800 |
Level 2 [Member] | Commercial paper [Member] | ||
Assets | ||
Cash equivalents | 10,998 | 19,195 |
Level 2 [Member] | Certificate of deposit [Member] | ||
Assets | ||
Cash equivalents | 1,543 | 1,543 |
U.S. Treasury securities [Member] | ||
Assets | ||
U.S. Treasury securities | 49,549 | 35,498 |
U.S. Treasury securities [Member] | Level 1 [Member] | ||
Assets | ||
U.S. Treasury securities | $ 49,549 | $ 35,498 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Securities Excluded from Calculation of Basic Net Loss Per Share (Detail) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Securities excluded from calculation of diluted net loss per share | 6,166 | 5,246 | 5,597 | 5,046 |
Options to purchase common stock [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Securities excluded from calculation of diluted net loss per share | 4,949 | 4,019 | 4,376 | 3,944 |
Restricted stock awards (RSAs) [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Securities excluded from calculation of diluted net loss per share | 1,217 | 1,227 | 1,221 | 1,102 |
Cash Equivalents and Marketab_3
Cash Equivalents and Marketable Securities - Summary of Cash Equivalents and Marketable Securities Aggregated by Investment Category (Detail) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost Basis | $ 68,327,000 | $ 100,502,000 |
Unrealized Gains | 22,000 | 78,000 |
Unrealized Losses | 0 | 0 |
Estimated Fair Value | 68,349,000 | 100,580,000 |
Money market funds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost Basis | 26,255,000 | 21,706,000 |
Estimated Fair Value | 26,255,000 | 21,706,000 |
U.S. Treasury securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost Basis | 49,546,000 | 35,471,000 |
Unrealized Gains | 3,000 | 27,000 |
Estimated Fair Value | 49,549,000 | 35,498,000 |
Agency Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost Basis | 8,781,000 | 48,790,000 |
Unrealized Gains | 9,000 | 44,000 |
Estimated Fair Value | 8,790,000 | 48,834,000 |
Corporate bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost Basis | 9,700,000 | 1,800,000 |
Unrealized Gains | 3,000 | |
Estimated Fair Value | 9,703,000 | 1,800,000 |
Commercial paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost Basis | 10,991,000 | 19,188,000 |
Unrealized Gains | 7,000 | 7,000 |
Estimated Fair Value | 10,998,000 | 19,195,000 |
Total cash equivalents and marketable securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost Basis | 105,273,000 | 126,955,000 |
Unrealized Gains | 22,000 | 78,000 |
Estimated Fair Value | 105,295,000 | 127,033,000 |
Cash equivalents [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost Basis | (36,946,000) | (26,453,000) |
Estimated Fair Value | $ (36,946,000) | $ (26,453,000) |
Cash Equivalents and Marketab_4
Cash Equivalents and Marketable Securities - Additional Information (Detail) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Investments Debt And Equity Securities [Abstract] | ||
Marketable securities, unrealized loss | $ 0 | $ 0 |
Cash Equivalents and Marketab_5
Cash Equivalents and Marketable Securities - Schedule of Amortized Cost and Estimated Fair Value of Available-for-Sale Securities by Contractual Maturity (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Available For Sale Securities Debt Maturities [Abstract] | ||
Amortized Cost, In one year or less | $ 68,327 | |
Amortized Cost Basis | 68,327 | $ 100,502 |
Estimated Fair Value, In one year or less | 68,349 | |
Total marketable securities, Estimated Fair Value | $ 68,349 | $ 100,580 |
Equity Incentive Plans - Schedu
Equity Incentive Plans - Schedule of Option Activity under Equity Incentive Plans and Related Information (Detail) | 6 Months Ended |
Jun. 30, 2020$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Number of Shares, Beginning balance | shares | 3,314,722 |
Number of Shares, Options granted | shares | 1,960,502 |
Number of Shares, Options exercised | shares | (27,516) |
Number of Shares, Options forfeited | shares | (192,654) |
Number of Shares, Options expired | shares | (33,929) |
Number of Shares, Ending balance | shares | 5,021,125 |
Number of Shares, Options exercisable | shares | 2,925,075 |
Weighted-Average Exercise Price Per Share, Options beginning balance | $ / shares | $ 20.50 |
Weighted-Average Exercise Price Per Share, Options granted | $ / shares | 4.34 |
Weighted-Average Exercise Price Per Share, Options exercised | $ / shares | 5.11 |
Weighted-Average Exercise Price Per Share, Options forfeited | $ / shares | 10.28 |
Weighted-Average Exercise Price Per Share, Options expired | $ / shares | 28.81 |
Weighted-Average Exercise Price Per Share, Options ending balance | $ / shares | 14.61 |
Weighted-Average Exercise Price Per Share, Options exercisable | $ / shares | $ 20.18 |
Weighted-Average Remaining Contractual Terms, Options ending balance | 6 years 11 months 15 days |
Weighted-Average Remaining Contractual Term, Options exercisable | 5 years 3 months 3 days |
Equity Incentive Plans - Sche_2
Equity Incentive Plans - Schedule of Restricted Stock Award Activity under 2013 Omnibus Incentive Plan and Related Information (Detail) - Restricted Stock Awards [Member] | 6 Months Ended |
Jun. 30, 2020$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares, Unvested, beginning balance | shares | 1,060,577 |
Number of Shares, Granted | shares | 592,950 |
Number of Shares, Vested | shares | (281,684) |
Number of Shares, Forfeited | shares | (202,426) |
Number of Shares, Unvested, Ending balance | shares | 1,169,417 |
Weighted-Average Grant-Date Fair Value, Unvested, Beginning balance | $ / shares | $ 11.24 |
Weighted-Average Grant-Date Fair Value, Granted | $ / shares | 4.87 |
Weighted-Average Grant-Date Fair Value, Vested | $ / shares | 18.36 |
Weighted-Average Grant-Date Fair Value, Forfeited | $ / shares | 11.40 |
Weighted-Average Grant-Date Fair Value, Unvested, Ending balance | $ / shares | $ 6.27 |
Equity Incentive Plans - Additi
Equity Incentive Plans - Additional Information (Detail) $ / shares in Units, $ in Millions | Jul. 29, 2019Employee$ / sharesshares | Jun. 30, 2020USD ($)$ / sharesshares | Jul. 01, 2019$ / shares |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total unrecognized compensation expense related to unvested stock options | $ | $ 8.2 | ||
Unrecognized compensation expense expected to recognize, weighted-average period | 3 years | ||
Exercise price per share, new options granted | $ / shares | $ 4.34 | ||
Employees and directors [Member] | Restricted Stock Awards [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Unrecognized compensation expense expected to recognize, weighted-average period | 2 years | ||
Total unrecognized compensation expense related to employee and director RSAs | $ | $ 3.5 | ||
2013 Omnibus Incentive Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of shares of common stock reserved for future issuance | 201,229 | 2,269,756 | |
Stock option exchange offer, maximum term | 7 years | ||
Stock Option Exchange Program [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock option exchange program, description | employees who held outstanding stock options granted on or before June 6, 2018 with an exercise price equal to or greater than $18.00 per share, or eligible options, the opportunity to tender each eligible option in exchange for a new stock option with modified terms, or new options. | ||
Exercise price per share eligible for exchange for new stock option | $ / shares | $ 18 | ||
Maximum number of eligible shares available for issuance | 510,932 | ||
Number of employees elected to exchange outstanding stock options | Employee | 55 | ||
Number of shares cancelled in conjunction with the option exchange offer | 436,648 | ||
Percentage of eligible options to total shares of common stock | 85.00% | ||
Number of shares granted for new options | 235,419 | ||
Exercise price per share, new options granted | $ / shares | $ 5.06 | ||
Unamortized expense remaining on the tendered options | $ | $ 0.5 |
Equity Incentive Plans - Sche_3
Equity Incentive Plans - Schedule of Stock-Based Compensation Expenses Recognized (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense recognized | $ 2,179 | $ 5,864 | $ 6,661 | $ 10,735 |
Research and development [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense recognized | 722 | 2,621 | 1,675 | 4,383 |
General and administrative [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense recognized | $ 1,457 | $ 3,243 | $ 4,986 | $ 6,352 |
Equity Incentive Plans - Sche_4
Equity Incentive Plans - Schedule of Stock Options Assumptions (Detail) - Options [Member] | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected volatility | 71.60% | 67.70% | 67.70% | |
Risk-free interest rate | 2.20% | |||
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Minimum [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected term (years) | 5 years | 5 years 6 months | 5 years | 6 years |
Expected volatility | 68.90% | |||
Risk-free interest rate | 0.40% | 0.40% | 2.20% | |
Maximum [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected term (years) | 6 years 3 months 18 days | 6 years 3 months 18 days | 6 years 3 months 18 days | 6 years 3 months 18 days |
Expected volatility | 71.60% | |||
Risk-free interest rate | 0.50% | 1.30% | 2.50% |
License and Collaboration Arr_3
License and Collaboration Arrangements - Summary of Changes in Balances of Contract Assets and Contract Liabilities (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Contract With Customer Asset And Liability [Abstract] | |
Beginning balance | $ 4,097 |
Additions | 3,174 |
Deductions | (5,059) |
Ending balance | 2,212 |
Beginning balance | 6,409 |
Additions for advance billings | 996 |
Deductions for performance obligations satisfied in current period | (3,259) |
Deductions for updates to the measure of progress and decrease in transaction price from prior periods | (1,400) |
Ending balance | $ 2,746 |
License and Collaboration Arr_4
License and Collaboration Arrangements - Additional Information (Detail) - USD ($) | Oct. 14, 2015 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2015 | Jun. 30, 2020 | Mar. 31, 2019 |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||
Transaction price recognized as collaboration revenue | $ 3,259,000 | |||||||
Bristol-Myers Squibb Company [Member] | ||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||
Non-refundable up-front fee | $ 30,000,000 | |||||||
Bristol-Myers Squibb Company [Member] | Immuno-Oncology Collaboration [Member] | ||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||
Research collaboration and license agreement entered month and year | 2014-03 | |||||||
Transaction price | $ 36,100,000 | |||||||
Non-refundable up-front fee | 20,000,000 | |||||||
Equity premium | 2,400,000 | |||||||
Milestone payment | $ 0 | 0 | ||||||
Adjustments to transaction price | 0 | 0 | ||||||
Research funding received | 13,700,000 | |||||||
Bristol-Myers Squibb Company [Member] | Immuno-Oncology Collaboration [Member] | ASU 2014-09 [Member] | ||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||
Transaction price recognized as collaboration revenue | $ 36,100,000 | |||||||
Bristol-Myers Squibb Company [Member] | Immuno-Oncology Collaboration [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ASU 2014-09 [Member] | Actual Costs Incurred as a Percentage of Total Budgeted Costs [Member] | ||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||
Revenue recognized | 0 | $ 0 | 0 | $ 1,400,000 | ||||
Bristol-Myers Squibb Company [Member] | Cabiralizumab Collaboration Agreement [Member] | ||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||
Non-refundable up-front fee | 350,000,000 | |||||||
Milestone payment | 0 | 0 | ||||||
Adjustments to transaction price | 0 | $ 0 | ||||||
Revenue recognized | $ 30,000,000 | |||||||
License and collaboration agreement entered date | Oct. 14, 2015 | |||||||
Recognized revenue under collaboration arrangement | $ 350,000,000 | |||||||
Bristol-Myers Squibb Company [Member] | Cabiralizumab Collaboration Agreement [Member] | ASU 2014-09 [Member] | ||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||
Revenue recognized | 300,000 | 1,000,000 | $ 1,800,000 | 2,400,000 | ||||
Bristol-Myers Squibb Company [Member] | Cabiralizumab Collaboration Agreement [Member] | ASU 2014-09 [Member] | Actual Costs Incurred as a Percentage of Total Budgeted Costs [Member] | ||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||
Revenue recognized | 100,000 | 900,000 | 800,000 | 2,900,000 | ||||
Zai Lab [Member] | China License and Collaboration Agreement [Member] | ||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||
Non-refundable up-front fee | 4,200,000 | |||||||
Milestone payment | 0 | 0 | ||||||
Adjustments to transaction price | 8,900,000 | 14,700,000 | ||||||
Revenue recognized | 200,000 | 1,000,000 | $ 900,000 | 1,400,000 | ||||
License and collaboration agreement entered month and year | 2017-12 | |||||||
Collaboration and license agreements transaction price | $ 8,900,000 | |||||||
Expected reimbursements | 3,000,000 | 3,000,000 | 3,000,000 | |||||
Receivables related to collaboration agreement | 1,700,000 | 1,700,000 | 1,700,000 | |||||
Remaining transaction price | 2,500,000 | 2,500,000 | 2,500,000 | |||||
Remaining transaction price recorded in deferred revenue | 2,200,000 | 2,200,000 | 2,200,000 | |||||
Remaining transaction price will be recorded in deferred revenue when invoiced | 300,000 | 300,000 | $ 300,000 | |||||
Zai Lab [Member] | China License and Collaboration Agreement [Member] | ASU 2014-09 [Member] | ||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||
Revenue recognized | $ 2,800,000 | $ 400,000 | $ 3,400,000 | $ 600,000 |
License and Collaboration Arr_5
License and Collaboration Arrangements - Additional Information 2 (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2020 | |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||
Transaction price recognized as collaboration revenue | $ 3,259,000 | ||
Seattle Genetics, Inc [Member] | Seattle Genetics License Agreement [Member] | |||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||
Research collaboration and license agreement entered month and year | 2020-02 | ||
Received upfront payment | $ 5,000,000 | ||
Annual maintenance fees receivable | 200,000 | ||
Transaction price | $ 5,000,000 | ||
Transaction price recognized as collaboration revenue | $ 5,000,000 | ||
Milestone payment | $ 0 | 0 | |
Seattle Genetics, Inc [Member] | Seattle Genetics License Agreement [Member] | Consulting Support [Member] | |||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||
Revenue from contracts with customers | 0 | 0 | |
Seattle Genetics, Inc [Member] | Seattle Genetics License Agreement [Member] | Maximum [Member] | |||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||
Sales based contingent payments receivable | 162,500,000 | ||
Seattle Genetics, Inc [Member] | Seattle Genetics License Agreement [Member] | Maximum [Member] | First Licensed Product [Member] | |||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||
Specified development and regulatory milestone payments | 132,000,000 | 132,000,000 | |
Seattle Genetics, Inc [Member] | Seattle Genetics License Agreement [Member] | Maximum [Member] | Second Licensed Product [Member] | |||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||
Specified development and regulatory milestone payments | 68,000,000 | 68,000,000 | |
Seattle Genetics, Inc [Member] | Seattle Genetics License Agreement [Member] | Maximum [Member] | Each Subsequent Licensed Products [Member] | |||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||
Specified development and regulatory milestone payments | $ 19,000,000 | $ 19,000,000 |
Leases - Additional Information
Leases - Additional Information (Detail) | Jan. 01, 2019USD ($) | Jul. 31, 2018InstrumentTerm | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) |
Lessee Lease Description [Line Items] | ||||||
Lease term | 10 years | 10 years | ||||
Lease option additional extend term | 5 years | 5 years | ||||
Rent commencement date | Jan. 1, 2018 | |||||
Percentage of rent reduction in first six months | 50.00% | |||||
Additional lease requirements | In addition, the facility lease required us to deliver an irrevocable standby letter of credit in an amount of $1.5 million to the landlord for the period commencing on the effective date of the facility lease until at least 60 days after the expiration of the lease, subject to 50% reduction on January 1, 2023 if certain conditions are met. In October 2019, we commenced a corporate restructuring to extend our cash runway and ensure long-term sustainability. As part of the restructuring, we are engaged in activities to reduce our corporate facilities footprint by either subletting a significant portion of our current leased space or subletting our current building and relocating to smaller facilities. | |||||
Operating lease cost | $ 1,900,000 | $ 1,500,000 | $ 3,400,000 | $ 3,100,000 | ||
Variable lease cost | 1,000,000 | 500,000 | 1,500,000 | 900,000 | ||
Cash paid for operating lease liabilities | $ 1,900,000 | $ 1,800,000 | $ 3,800,000 | $ 3,000,000 | ||
Discount rate of facility lease | 7.00% | 7.00% | ||||
Remaining facility lease term | 7 years | 7 years | ||||
Bemarituzumab Programs [Member] | ||||||
Lessee Lease Description [Line Items] | ||||||
Lease term | 3 years | |||||
Number of sequencing instruments | Instrument | 4 | |||||
Number of terms available | Term | 2 | |||||
Termination of lease instruments date | 2020 | |||||
Acccrued gain on lease termination | $ 700,000 | |||||
Irrevocable Standby Letter of Credit [Member] | ||||||
Lessee Lease Description [Line Items] | ||||||
Letter of credit | $ 1,500,000 | $ 1,500,000 | ||||
ASU 2016-02 [Member] | ||||||
Lessee Lease Description [Line Items] | ||||||
Cumulative effect on adjustment of initially applying standard | $ 0 |
Leases - Summary of Undiscounte
Leases - Summary of Undiscounted Cash Flows to Operating Lease Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Operating Lease Liabilities Payments Due [Abstract] | ||
Remainder of 2020 | $ 3,993 | |
2021 | 7,524 | |
2022 | 7,787 | |
2023 | 8,064 | |
2024 | 8,341 | |
2025 and beyond | 26,825 | |
Total minimum lease payments | 62,534 | |
Less: amount of lease payments representing interest | (14,939) | |
Present value of future minimum lease payments | 47,595 | |
Less: operating lease obligations, current portion | (4,398) | $ (4,080) |
Operating lease obligations, long-term portion | $ 43,197 | $ 45,532 |
Restructuring and Other Charg_3
Restructuring and Other Charges - Additional Information (Detail) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2019Position | Jan. 31, 2019Employees | Jun. 30, 2020USD ($) | Mar. 31, 2019USD ($) | Jun. 30, 2020USD ($) | |
Restructuring Cost And Reserve [Line Items] | |||||
Number of company's workforce terminated | 63 | 41 | |||
Percentage of company's workforce terminated | 20.00% | ||||
Impairment loss on long lived assets | $ 394 | ||||
Laboratory equipment [Member] | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Gain (loss) on disposition of assets | $ 3,400 | 3,400 | |||
Laboratory equipment [Member] | 2019 Restructure Plan [Member] | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Impairment loss on long lived assets | $ 1,900 | ||||
Severance and Other Benefit Costs [Member] | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Restructuring charges | $ 1,800 | ||||
Severance and Other Termination Costs and Employee Retention [Member] | |||||
Restructuring Cost And Reserve [Line Items] | |||||
Restructuring charges | $ 6,100 |
Restructuring and Other Charg_4
Restructuring and Other Charges - Summary of Management's Expected and Actual Costs (Detail) $ in Thousands | Jun. 30, 2020USD ($) |
Restructuring Cost And Reserve [Line Items] | |
Total Estimated restructuring costs | $ 3,904 |
Total Restructuring cost incurred to date | 2,850 |
Gains on Sale, Net Asset Impairments and Other Costs [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Total Estimated restructuring costs | (3,298) |
Total Restructuring cost incurred to date | (3,298) |
Employee Retention, Severance and Termination Benefits [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Total Estimated restructuring costs | 7,202 |
Total Restructuring cost incurred to date | $ 6,148 |
Restructuring and Other Charg_5
Restructuring and Other Charges - Summary of Components of Restructuring and Other Related Costs and their Location within Income Statement (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | |
Restructuring Cost And Reserve [Line Items] | |||
Total Restructuring cost incurred | $ (4,770) | $ (3,766) | $ 1,893 |
Research and development [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Total Restructuring cost incurred | (4,999) | (4,018) | $ 1,893 |
General and administrative [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Total Restructuring cost incurred | $ 229 | $ 252 |
Restructuring and Other Charg_6
Restructuring and Other Charges - Summary of Accrued Personnel-related Expense Liability Associated with Restructuring (Detail) - Severance and Retention Costs [Member] $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Restructuring Cost And Reserve [Line Items] | |
Accrued balance as of December 31, 2019 | $ 1,182 |
Charges | 1,619 |
Cash payments | (1,385) |
Accrued balance as of June 30, 2020 | $ 1,416 |