Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 28, 2021 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2021 | |
Entity File Number | 001-36182 | |
Entity Registrant Name | Xencor Inc | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-1622502 | |
Entity Address, Address Line One | 111 West Lemon Avenue | |
Entity Address, City or Town | Monrovia | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 91016 | |
City Area Code | 626 | |
Local Phone Number | 305-5900 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | XNCR | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 58,323,914 | |
Entity Central Index Key | 0001326732 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 115,842 | $ 163,544 |
Marketable securities | 288,976 | 434,156 |
Equity securities | 45,230 | 5,303 |
Accounts receivable | 14,825 | 11,443 |
Contract asset | 500 | 12,500 |
Prepaid expenses and other current assets | 15,594 | 10,726 |
Total current assets | 480,967 | 637,672 |
Property and equipment, net | 23,132 | 21,682 |
Patents, licenses, and other intangible assets, net | 16,384 | 15,977 |
Marketable securities - long term | 153,619 | 1,030 |
Equity securities - long term | 17,146 | 16,071 |
Other assets | 4,354 | 10,812 |
Total assets | 695,602 | 703,244 |
Current liabilities | ||
Accounts payable | 7,112 | 8,954 |
Accrued expenses | 17,328 | 17,603 |
Lease liabilities | 2,322 | 1,889 |
Deferred revenue | 19,200 | 92,615 |
Total current liabilities | 45,962 | 121,061 |
Lease liabilities, net of current portion | 2,702 | 9,739 |
Total liabilities | 48,664 | 130,800 |
Commitments and contingencies | ||
Stockholders' equity | ||
Preferred stock, $0.01 par value: 10,000,000 authorized shares; -0- issued and outstanding shares at June 30, 2021 and December 31, 2020 | ||
Common stock, $0.01 par value: 200,000,000 authorized shares at June 30, 2021 and December 31, 2020; 58,315,485 issued and outstanding at June 30, 2021 and 57,873,444 issued and outstanding at December 31, 2020 | 584 | 580 |
Additional paid-in capital | 962,343 | 937,525 |
Accumulated other comprehensive income (loss) | (15) | 74 |
Accumulated deficit | (315,974) | (365,735) |
Total stockholders' equity | 646,938 | 572,444 |
Total liabilities and stockholders' equity | $ 695,602 | $ 703,244 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
Balance Sheets | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 58,315,485 | 57,873,444 |
Common stock, shares outstanding | 58,315,485 | 57,873,444 |
Statements of Comprehensive Inc
Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue | ||||
Collaborations, licenses, milestones, and royalties | $ 67,447 | $ 13,089 | $ 101,412 | $ 45,474 |
Operating expenses | ||||
Research and development | 49,497 | 43,458 | 90,908 | 77,401 |
General and administrative | 8,863 | 7,231 | 17,090 | 14,449 |
Total operating expenses | 58,360 | 50,689 | 107,998 | 91,850 |
Income (loss) from operations | 9,087 | (37,600) | (6,586) | (46,376) |
Other income (expenses) | ||||
Interest income, net | 147 | 2,090 | 362 | 5,129 |
Other income (expense), net | (6) | 134 | (17) | 133 |
Gain (loss) on equity securities, net | 43,020 | 358 | 56,002 | (1,978) |
Total other income, net | 43,161 | 2,582 | 56,347 | 3,284 |
Net income (loss) | 52,248 | (35,018) | 49,761 | (43,092) |
Other comprehensive income (loss) | ||||
Net unrealized gain (loss) on marketable securities available-for-sale | (112) | 427 | (90) | 322 |
Comprehensive income (loss) | $ 52,136 | $ (34,591) | $ 49,671 | $ (42,770) |
Net income (loss) per share attributable to common stockholders: | ||||
Basic net income (loss) (in dollars per share) | $ 0.90 | $ (0.61) | $ 0.86 | $ (0.76) |
Diluted net income (loss) (in dollars per share) | $ 0.87 | $ (0.61) | $ 0.82 | $ (0.76) |
Weighted average shares used to compute net income (loss) per share attributable to common stockholders: | ||||
Basic (in shares) | 58,247,941 | 57,059,610 | 58,123,319 | 57,003,162 |
Diluted (in shares) | 60,335,339 | 57,059,610 | 60,503,846 | 57,003,162 |
Statements of Stockholders' Equ
Statements of Stockholders' Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Total |
Balance at Dec. 31, 2019 | $ 569 | $ 887,873 | $ 1,161 | $ (296,402) | $ 593,201 |
Balance (in shares) at Dec. 31, 2019 | 56,902,301 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Issuance of common stock upon exercise of stock awards | $ 1 | 1,470 | 1,471 | ||
Issuance of common stock upon exercise of stock awards (in shares) | 79,930 | ||||
Issuance of restricted stock units (in shares) | 19,022 | ||||
Comprehensive income (loss) | (105) | (8,074) | (8,179) | ||
Stock-based compensation | 6,512 | 6,512 | |||
Balance at Mar. 31, 2020 | $ 570 | 895,855 | 1,056 | (304,476) | 593,005 |
Balance (in shares) at Mar. 31, 2020 | 57,001,253 | ||||
Balance at Dec. 31, 2019 | $ 569 | 887,873 | 1,161 | (296,402) | 593,201 |
Balance (in shares) at Dec. 31, 2019 | 56,902,301 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Comprehensive income (loss) | (42,770) | ||||
Balance at Jun. 30, 2020 | $ 572 | 908,084 | 1,483 | (339,494) | 570,645 |
Balance (in shares) at Jun. 30, 2020 | 57,214,253 | ||||
Balance at Mar. 31, 2020 | $ 570 | 895,855 | 1,056 | (304,476) | 593,005 |
Balance (in shares) at Mar. 31, 2020 | 57,001,253 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Issuance of common stock upon exercise of stock awards | $ 2 | 3,273 | 3,275 | ||
Issuance of common stock upon exercise of stock awards (in shares) | 181,856 | ||||
Issuance of restricted stock units (in shares) | 2,800 | ||||
Issuance of common stock under the Employee Stock Purchase Plan | 725 | 725 | |||
Issuance of common stock under the Employee Stock Purchase Plan (in shares) | 28,344 | ||||
Comprehensive income (loss) | 427 | (35,018) | (34,591) | ||
Stock-based compensation | 8,231 | 8,231 | |||
Balance at Jun. 30, 2020 | $ 572 | 908,084 | 1,483 | (339,494) | 570,645 |
Balance (in shares) at Jun. 30, 2020 | 57,214,253 | ||||
Balance at Dec. 31, 2020 | $ 580 | 937,525 | 74 | (365,735) | 572,444 |
Balance (in shares) at Dec. 31, 2020 | 57,873,444 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Issuance of common stock upon exercise of stock awards | $ 2 | 5,337 | 5,339 | ||
Issuance of common stock upon exercise of stock awards (in shares) | 230,701 | ||||
Issuance of restricted stock units | $ 1 | (1) | |||
Issuance of restricted stock units (in shares) | 117,808 | ||||
Comprehensive income (loss) | 23 | (2,487) | (2,464) | ||
Stock-based compensation | 8,293 | 8,293 | |||
Balance at Mar. 31, 2021 | $ 583 | 951,154 | 97 | (368,222) | 583,612 |
Balance (in shares) at Mar. 31, 2021 | 58,221,953 | ||||
Balance at Dec. 31, 2020 | $ 580 | 937,525 | 74 | (365,735) | 572,444 |
Balance (in shares) at Dec. 31, 2020 | 57,873,444 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Comprehensive income (loss) | 49,671 | ||||
Balance at Jun. 30, 2021 | $ 584 | 962,343 | (15) | (315,974) | 646,938 |
Balance (in shares) at Jun. 30, 2021 | 58,315,485 | ||||
Balance at Mar. 31, 2021 | $ 583 | 951,154 | 97 | (368,222) | 583,612 |
Balance (in shares) at Mar. 31, 2021 | 58,221,953 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Issuance of common stock upon exercise of stock awards | $ 1 | 902 | 903 | ||
Issuance of common stock upon exercise of stock awards (in shares) | 52,790 | ||||
Issuance of restricted stock units (in shares) | 10,190 | ||||
Issuance of common stock under the Employee Stock Purchase Plan | 937 | 937 | |||
Issuance of common stock under the Employee Stock Purchase Plan (in shares) | 30,552 | ||||
Comprehensive income (loss) | (112) | 52,248 | 52,136 | ||
Stock-based compensation | 9,350 | 9,350 | |||
Balance at Jun. 30, 2021 | $ 584 | $ 962,343 | $ (15) | $ (315,974) | $ 646,938 |
Balance (in shares) at Jun. 30, 2021 | 58,315,485 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities | ||
Net income (loss) | $ 49,761 | $ (43,092) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Depreciation and amortization | 3,391 | 2,816 |
Amortization of premium (accretion of discount) on marketable securities | 1,711 | (838) |
Stock-based compensation | 17,643 | 14,743 |
Abandonment of capitalized intangible assets | 310 | 167 |
Equity received in connection with license agreement | (4,589) | |
Equity received in connection with sale of financial assets | (3,300) | |
Change in fair value of equity securities | (37,701) | 1,978 |
Gain (loss) on equity securities, net | 56,002 | (1,978) |
(Gain) loss on disposal of assets | (4) | 5 |
Gain on sale of marketable securities available for sale | (153) | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (3,382) | 12,649 |
Interest receivable | 496 | 914 |
Contract asset and deposits | 11,938 | |
Prepaid expenses and other current assets | (4,868) | (843) |
Accounts payable | (1,842) | 324 |
Accrued expenses | (275) | 162 |
Income taxes | 91 | |
Lease liabilities and right of use (ROU) assets | (83) | (110) |
Deferred revenue | (73,415) | (2,446) |
Net cash used in operating activities | (39,620) | (18,222) |
Cash flows from investing activities | ||
Purchase of marketable securities | (231,459) | (302,319) |
Proceeds from sale of property and equipment | 4 | |
Purchase of intangible assets | (1,324) | (1,467) |
Purchase of property and equipment | (4,234) | (2,695) |
Proceeds from maturities and sale of marketable securities | 221,752 | 378,454 |
Net cash (used in) provided by investing activities | (15,261) | 71,973 |
Cash flows from financing activities | ||
Proceeds from issuance of common stock upon exercise of stock awards | 6,242 | 4,746 |
Proceeds from issuance of common stock from Employee Stock Purchase Plan | 937 | 725 |
Net cash provided by financing activities | 7,179 | 5,471 |
Net (decrease) increase in cash and cash equivalents | (47,702) | 59,222 |
Cash and cash equivalents, beginning of year | 163,544 | 50,312 |
Cash and cash equivalents, end of year | 115,842 | 109,534 |
Cash paid during the period for: | ||
Interest | 9 | 11 |
Supplemental disclosures of non-cash investing activities | ||
Unrealized gain (loss) on marketable securities | $ (90) | $ 322 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited interim financial statements for Xencor, Inc. (the Company, Xencor, we or us) have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information. The financial statements include all adjustments (consisting only of normal recurring adjustments) that the management of the Company believes are necessary for a fair presentation of the periods presented. The preparation of interim financial statements requires the use of management’s estimates and assumptions that affect reported amounts of assets and liabilities at the date of the interim financial statements and the reported revenues and expenditures during the reported periods. These interim financial results are not necessarily indicative of the results expected for the full fiscal year or for any subsequent interim period. The accompanying unaudited interim financial statements and related notes should be read in conjunction with the audited financial statements and notes thereto included in the Company’s 2020 Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on February 24, 2021. Use of Estimates The preparation of interim financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, other comprehensive gain (loss) and the related disclosures. On an ongoing basis, management evaluates its estimates, including estimates related to its accrued clinical trial and manufacturing development expenses, stock-based compensation expense, intangible assets, and related amortization. Significant estimates in these interim financial statements include estimates: made for royalty revenue, accrued research and development expenses, stock-based compensation expenses, intangible assets and related amortization, estimated standalone selling price of performance obligations, estimated time for completing delivery of performance obligations under certain arrangements, the likelihood of recognizing variable consideration, the carrying value of equity instruments without a readily determinable fair value, and recoverability of deferred tax assets. Intangible Assets The Company maintains definite-lived intangible assets related to certain capitalized costs of acquired licenses and third-party costs incurred in establishing and maintaining its intellectual property rights to its platform technologies and development candidates. These assets are amortized over their useful lives, which are estimated to be the remaining patent life or the contractual term of the license. The straight-line method is used to record amortization expense. The Company assesses its intangible assets for impairment if indicators are present or changes in circumstances suggest that impairment may exist. There were no impairment charges recorded for the three and six months ended June 30, 2021 and 2020. The Company capitalizes certain in-process intangible assets that are then abandoned when they are no longer pursued or used in current research activities. There was no material abandonment of in-process intangible assets during the three and six months ended June 30, 2021 and 2020. Marketable and Equity Securities The Company has an investment policy that includes guidelines on acceptable investment securities, minimum credit quality, maturity parameters, and concentration and diversification. The Company invests its excess cash primarily in marketable debt securities issued by investment grade institutions. The Company considers its marketable debt securities to be available-for-sale because it is not more likely than not that the Company will be required to sell the securities before recovery of the amortized cost. These assets are carried at fair value and any impairment losses and recoveries related to the underlying issuer’s credit standing are recognized within other income (expense), while non-credit related impairment losses and recoveries are recognized within accumulated other comprehensive income (loss). There were no impairment losses or recoveries recorded for the three and six months ended June 30, 2021 and 2020. Accrued interest on marketable debt securities is included in the marketable securities’ carrying value. Each reporting period, the Company reviews its portfolio of marketable debt securities, using both quantitative and qualitative factors, to determine if each security’s fair value has declined below its amortized cost basis. The Company receives equity securities in connection with certain licensing transactions with its partners. These investments in equity securities are carried at fair value with changes in fair value recognized each period and reported within other income (expense). For equity securities with a readily determinable fair value, the Company re-measures these equity investments at each reporting period until such time that the investment is sold or disposed. If the Company sells an investment, any realized gain or loss on the sale of the securities will be recognized within other income (expense) in the Statements of Comprehensive Income (Loss) in the period of sale. The Company also has investments in equity securities without readily determinable fair values, where the Company elects the measurement alternative to record at its initial cost minus impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Recent Accounting Pronouncements Pronouncements Adopted in 2021 Effective January 1, 2021, the Company adopted ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes Effective January 1, 2021, the Company adopted ASU No. 2020-01, which clarifies that a company should consider observable transactions that require a company to either apply or discontinue the equity method of accounting under Topic 323, Investment – Equity Method and Joint Ventures Investments – Equity Securities Effective January 1, 2021, the Company adopted ASU No. 2020-10, Codification Improvements There have been no other material changes to the significant accounting policies previously disclosed in the Company’s 2020 Annual Report on Form 10-K. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value of Financial Instruments | |
Fair Value of Financial Instruments | 2. Fair Value of Financial Instruments Financial instruments included in the financial statements include cash and cash equivalents, marketable debt and equity securities, accounts receivable, accounts payable, and accrued expenses. Marketable debt securities, equity securities, and cash equivalents are carried at fair value. The fair value of the other financial instruments closely approximates their fair value due to their short-term maturities. The Company accounts for recurring and non-recurring fair value measurements in accordance with FASB Accounting Standards Codification 820, Fair Value Measurements and Disclosures Level 1— Level 2— Level 3— The Company measures the fair value of financial assets using the highest level of inputs that are reasonably available as of the measurement date. The assets recorded at fair value are classified within the hierarchy as follows for the periods reported (in thousands): June 30, 2021 (unaudited) December 31, 2020 Total Total Fair Value Level 1 Level 2 Level 3 Fair Value Level 1 Level 2 Level 3 Available-for-Sale Debt Securities: Money Market Funds $ 71,703 $ 71,703 $ — $ — $ 158,937 $ 158,937 $ — $ — Corporate Securities 104,957 — 104,957 — 119,833 — 119,833 — Government Securities 337,638 — 337,638 — 315,353 — 315,353 — Equity Securities: Securities with Readily Determinable Fair Value 45,230 45,230 — — 5,303 5,303 — — Securities without Readily Determinable Fair Value 17,146 — — 17,146 16,071 — — 16,071 $ 576,674 $ 116,933 $ 442,595 $ 17,146 $ 615,497 $ 164,240 $ 435,186 $ 16,071 Our policy is to record transfers of assets between Level 1 and Level 2 at their fair values as of the end of each reporting period, consistent with the date of the determination of fair value. During the three and six months ended June 30, 2021 and 2020, there were no transfers between Level 1 and Level 2. During the three and six months ended June 30, 2021, an equity investment without a readily determinable fair value was transferred to Level 1 from Level 3. The following table provides a rollforward for recurring Level 3 fair value measurements (in thousands): Securities without Readily Determinable Fair Value Balance at December 31, 2020 $ 16,071 Issuance 12,148 Transfer out of Level 3 (11,073) Balance at June 30, 2021 $ 17,146 The Company held equity securities without readily determinable fair value at June 30, 2021 and December 31, 2020, respectively. The Company elects the measurement alternative to record at its initial cost minus impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. |
Net Income (Loss) Per Common Sh
Net Income (Loss) Per Common Share | 6 Months Ended |
Jun. 30, 2021 | |
Net Income (Loss) Per Common Share | |
Net Income (Loss) Per Common Share | 3. Net Income (Loss) Per Common Share Basic net income (loss) per common share is computed by dividing the net income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding during the period without consideration of common stock equivalents. Diluted net income (loss) per common share is computed by dividing the net income (loss) attributable to common stockholders by the weighted-average number of common stock equivalents outstanding for the period. Potentially dilutive securities consisting of stock issuable pursuant to outstanding options and restricted stock units (RSUs), and stock issuable pursuant to the 2013 Employee Stock Purchase Plan (ESPP) are not included in the per common share calculation in periods when the inclusion of such shares would have an anti-dilutive effect. Basic and diluted net income (loss) per common share is computed as follows: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (in thousands, except share and per share data) Numerator: Net income (loss) attributable to common stockholders $ 52,248 $ (35,018) $ 49,761 $ (43,092) Denominator: Weighted-average common shares outstanding used in computing basic net income (loss) 58,247,941 57,059,610 58,123,319 57,003,162 Effect of dilutive securities 2,087,398 — 2,380,527 — Weighted-average common shares outstanding used in computing diluted net income (loss) 60,335,339 57,059,610 60,503,846 57,003,162 Basic net income (loss) per common share $ 0.90 $ (0.61) $ 0.86 $ (0.76) Diluted net income (loss) per common share $ 0.87 $ (0.61) $ 0.82 $ (0.76) For the three and six months ended June 30, 2021, we excluded 1,374,608 and 698,917 shares of stock issuable pursuant to outstanding options and RSUs from the calculation, respectively, because the inclusion of such shares would have had an antidilutive effect. For the three and six months ended June 30, 2020, all outstanding potentially dilutive securities have been excluded from the calculation of diluted net income (loss) per common share as the effect of including such securities would have been anti-dilutive. |
Comprehensive Income (Loss)
Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2021 | |
Comprehensive Income (Loss) | |
Comprehensive Income (Loss) | 4. Comprehensive Income (Loss) Comprehensive income (loss) is comprised of net income (loss) and other comprehensive income (loss). For the three and six months ended June 30, 2021 and 2020, the only component of other comprehensive income (loss) is net unrealized gain (loss) on marketable securities. There were no material reclassifications out of accumulated other comprehensive income (loss) during the three and six months ended June 30, 2021 and 2020. |
Marketable Securities
Marketable Securities | 6 Months Ended |
Jun. 30, 2021 | |
Marketable Securities | |
Marketable Securities | 5. Marketable and Equity Securities The Company’s marketable debt securities held as of June 30, 2021 and December 31, 2020 are summarized below: Gross Gross Amortized Unrealized Unrealized June 30, 2021 Cost Gains Losses Fair Value (in thousands) Money Market Funds $ 71,703 $ — $ — $ 71,703 Corporate Securities 104,975 13 (31) 104,957 Government Securities 337,625 36 (23) 337,638 $ 514,303 $ 49 $ (54) $ 514,298 Reported as Cash and cash equivalents $ 71,703 Marketable securities 442,595 Total investments $ 514,298 Gross Gross Amortized Unrealized Unrealized December 31, 2020 Cost Gains Losses Fair Value (in thousands) Money Market Funds $ 158,937 $ — $ — $ 158,937 Corporate Securities 119,782 57 (6) 119,833 Government Securities 315,319 37 (3) 315,353 $ 594,038 $ 94 $ (9) $ 594,123 Reported as Cash and cash equivalents $ 158,937 Marketable securities 435,186 Total investments $ 594,123 The maturities of the Company’s marketable debt securities as of June 30, 2021 are as follows: Amortized Estimated June 30, 2021 Cost Fair Value (in thousands) Mature in one year or less $ 288,935 $ 288,976 Mature within two years 153,665 153,619 $ 442,600 $ 442,595 The unrealized losses on available-for-sale investments and their related fair values as of June 30, 2021 and December 31, 2020 are as follows: Less than 12 months 12 months or greater Unrealized Unrealized June 30, 2021 Fair value losses Fair value losses (in thousands) Corporate Securities $ 11,721 $ (4) $ 24,876 $ (27) Government Securities — — 84,888 (23) $ 11,721 $ (4) $ 109,764 $ (50) Less than 12 months 12 months or greater Unrealized Unrealized December 31, 2020 Fair value losses Fair value losses (in thousands) Corporate Securities $ 15,843 $ (6) $ — $ — Government Securities 40,802 (3) — — $ 56,645 $ (9) $ — $ — The unrealized losses from the listed securities are primarily due to a change in the interest rate environment and not a change in the credit quality of the securities. The Company’s equity securities include securities with a readily determinable fair value. These investments are carried at fair value with changes in fair value recognized each period and reported within other income (expense). Equity securities with a readily determinable fair value and their fair values (in thousands) as of June 30, 2021 and December 31, 2020 are as follows: Fair Value Fair Value June 30, 2021 December 31, 2020 Catabasis Common Stock $ 8,102 $ — INmune Common Stock 31,231 — Viridian Common Stock 5,897 5,303 $ 45,230 $ 5,303 The Company also has investments in equity securities without a readily determinable fair value. The Company elects the measurement alternative to record these investments at their initial cost and evaluate such investments at each reporting period for evidence of impairment. Equity securities without a readily determinable fair value and their carrying values (in thousands) as of June 30, 2021 and December 31, 2020 are as follows: Carrying Value Carrying Value June 30, 2021 December 31, 2020 Catabasis Preferred Stock $ 1,075 $ — Zenas Preferred Stock 16,071 16,071 $ 17,146 $ 16,071 In 2018, the Company received equity shares in Quellis Biosciences, Inc. (Quellis), in connection with a licensing transaction. The Company recorded the Quellis equity as securities not having a readily determinable fair value, and the investment was recorded at its original cost. In 2021, Quellis merged into Catabasis Pharmaceuticals, Inc. (Catabasis), and the Company received 259,206 shares of common stock and 3,928 shares of preferred stock in Catabasis in exchange for its Quellis equity. During the three months ended June 30, 2021, 3,581 shares of the Catabasis preferred stock were exchanged for 3,580,539 shares of Catabasis common stock. The 3,839,745 shares of the Catabasis common stock have a readily determinable fair value. The adjustment in the fair value of the Catabasis common stock has been recorded in gain (loss) on equity securities for the three and six months ended June 30, 2021. The Company records its investment in the shares of Catabasis preferred stock as an equity interest without a readily determinable fair value. The Company elected to record the shares of preferred stock at their initial cost and reviews the carrying value for impairment or other changes in carrying value at each reporting period. In 2017, the Company received 1,585,000 shares of common stock of INmune Bio, Inc. and an option to acquire an additional 10% of INmune’s outstanding shares of common stock in connection with a licensing transaction. The Company initially recorded its equity interest, including its option to acquire additional equity in INmune, at cost pursuant to ASC 323, Investments – Equity Method and Joint Ventures shares of INmune common stock have a readily determinable fair value and the adjustment in the fair value of the shares of INmune common stock has been recorded in gain (loss) on equity securities for the three and six months ended June 30, 2021. In 2020, the Company received 322,407 shares of common stock of Viridian in connection with the Viridian Agreement (defined below). The shares of Viridian common stock are classified as equity securities with a readily determinable fair value at June 30, 2021. In 2020, the Company received an equity interest in Zenas BioPharma Limited (Zenas), in connection with the Zenas Agreement (defined below). The Company elected the measurement alternative to carry the Zenas equity at cost minus impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. During the three and six months ended June 30, 2021, there has not been any impairment or observable price changes related to this investment. Net gains and losses recognized on equity securities during the three and six months ended June 30, 2021 and 2020 consist of the following: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Net gains (losses) recognized on equity securities $ 43,020 $ 358 $ 56,002 $ (1,978) Less: net gains recognized on sale of equity securities (18,300) — (18,301) — Unrealized gains (losses) recognized on equity securities $ 24,720 $ 358 $ 37,701 $ (1,978) |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2021 | |
Stock-Based Compensation | |
Stock-Based Compensation | 6. Stock Based Compensation Our Board of Directors (the Board) and the requisite stockholders previously approved the 2010 Equity Incentive Plan (the 2010 Plan). In October 2013, the Board approved the 2013 Equity Incentive Plan (the 2013 Plan), and in November 2013, our stockholders approved the 2013 Plan, which became effective as of December 3, 2013. As of December 2, 2013, we suspended the 2010 Plan, and no additional awards may be granted under the 2010 Plan. Any shares of common stock covered by awards granted under the 2010 Plan that terminate after December 2, 2013 by expiration, forfeiture, cancellation, or other means without the issuance of such shares will be added to the 2013 Plan reserve. As of June 30, 2021, the total number of shares of common stock available for issuance under the 2013 Plan is 13,382,544, which includes 2,684,456 shares of common stock that were available for issuance under the 2010 Plan as of the effective date of the 2013 Plan. Unless otherwise determined by the Board, beginning January 1, 2014, and continuing until the expiration of the 2013 Plan, the total number of shares of common stock available for issuance under the 2013 Plan will automatically increase annually on January 1 of each year by 4% of the total number of issued and outstanding shares of common stock as of December 31 of the immediately preceding year. Pursuant to approval by the Board, the total number of shares of common stock available for issuance under the 2013 Plan was increased by 2,314,937 shares on January 1, 2021. As of June 30, 2021, a total of 12,061,415 options have been granted under the 2013 Plan. In November 2013, the Board and our stockholders approved the ESPP, which became effective as of December 5, 2013. We have reserved a total of 581,286 shares of common stock for issuance under the ESPP. Unless otherwise determined by the Board, beginning on January 1, 2014, and continuing until the expiration of the ESPP, the total number of shares of common stock available for issuance under the ESPP will automatically increase annually on January 1 by the lesser of (i) 1% of the total number of issued and outstanding shares of common stock as of December 31 of the immediately preceding year, or (ii) 621,814 shares of common stock. Pursuant to approval by our Board, there was no increase in the number of authorized shares in the ESPP from 2015 to 2020. As of June 30, 2021, we have issued a total of 498,147 shares of common stock under the ESPP. During the six months ended June 30, 2021, the Company awarded 266,726 RSUs to certain employees. The standard vesting of these awards is generally in three equal annual installments and is contingent on continued service to the Company. The fair value of these awards is determined based on the intrinsic value of the stock on the date of grant and will be recognized as stock-based compensation expense over the requisite service period. As of June 30, 2021, we have granted a total of 720,513 shares of common stock issuable upon the vesting of RSUs. Total employee, director and non-employee stock-based compensation expense recognized for the three and six months ended June 30, 2021 and 2020 are as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 General and administrative $ 3,193 $ 2,804 $ 5,930 $ 5,095 Research and development 6,157 5,427 11,713 9,648 $ 9,350 $ 8,231 $ 17,643 $ 14,743 Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Stock options $ 7,355 $ 6,667 $ 13,885 $ 12,549 ESPP 253 213 501 407 RSUs 1,742 1,351 3,257 1,787 $ 9,350 $ 8,231 $ 17,643 $ 14,743 The following table summarizes option activity under our stock plans and related information: Weighted Weighted Average Average Number of Exercise Remaining Aggregate Shares Subject Price Contractual Intrinsic to Outstanding (Per Term Value Options Share) (in years) (in thousands) Balance at December 31, 2020 7,751,789 $ 26.23 7.00 $ 134,941 Options granted 1,488,576 $ 42.73 Options forfeited (197,440) $ 35.34 Options exercised (283,491) $ 22.02 Balance at June 30, 2021 8,759,434 $ 28.97 6.94 $ 65,388 Exercisable 5,265,826 $ 23.37 5.68 $ 61,080 We calculate the intrinsic value as the difference between the exercise price of the options and the closing price of common stock of $34.49 per share as of June 30, 2021. The weighted-average fair value of options granted during the six-month periods ended June 30, 2021 and 2020 were $22.54 and $16.44 per share, respectively. There were 1,433,699 options granted during the six-month period ended June 30, 2020. We estimated the fair value of each stock option using the Black-Scholes option-pricing model based on the date of grant of such stock option with the following weighted average assumptions for the three and six months ended June 30, 2021 and 2020: Options Options Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Expected term (years) 6.2 5.7 6.2 6.2 Expected volatility 55.3 % 56.1 % 55.6 % 54.3 % Risk-free interest rate 1.03 % 0.41 % 1.02 % 0.84 % Expected dividend yield — % — % — % — % ESPP ESPP Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Expected term (years) 0.5 - 2.0 0.5 - 2.0 0.5 - 2.0 0.5 - 2.0 Expected volatility 46.1 - 66.4 % 50.8 - 62.6 % 46.1 - 66.4 % 50.8 - 62.6 % Risk-free interest rate 0.04 - 1.65 % 0.18 - 1.65 % 0.04 - 1.65 % 0.18 - 1.65 % Expected dividend yield — % — % — % — % As of June 30, 2021, the unamortized compensation expense related to unvested stock options was $65.0 million. The remaining unamortized compensation expense will be recognized over the next 2.8 years. As of June 30, 2021, the unamortized compensation expense under our ESPP was $0.5 million. The remaining unamortized expense will be recognized over the next 0.4 years. The following table summarizes the RSU activity for the six-month period ended June 30, 2021: Weighted Restricted Average Grant Stock Date Fair Value Units (Per unit) Unvested RSUs at December 31, 2020 358,825 $ 33.04 Granted 266,726 42.85 Vested (127,998) 31.71 Forfeited (28,086) 36.16 Unvested RSUs at June 30, 2021 469,467 $ 38.79 As of June 30, 2021, the unamortized compensation expense related to unvested RSUs was $15.7 million. The remaining unamortized expense will be recognized over the next 2.3 years. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2021 | |
Leases | |
Leases | 7. Leases The Company leases office and laboratory space in Monrovia, California under a lease that expires in December 2025 with an option to renew for an additional five years at then market rates. In July 2017, under a separate lease agreement, the Company entered into a lease for additional space in the same building with a lease that continues through September 2022, also with an option to renew for an additional five years . The Company has assessed that it is unlikely to exercise either of the lease term extension options. The Company leases additional office space in San Diego, California through August 2022, with an option to extend for an additional five years . The Company has assessed that it is unlikely to exercise the option to extend the lease term. The Company’s lease agreements do not contain any residual value guarantees or restrictive covenants. In June 2021, the Company entered into an Agreement of Lease (465 Halstead), (the “Halstead Lease”) relating to 129,543 rentable square feet, for laboratory and office space, in Pasadena, California, where the Company intends to move its corporate headquarters in the second half of 2022. The term of the Halstead Lease will become effective in two phases. The first phase commences on July 1, 2022 and encompasses 83,083 square feet while the second phase commences no later than September 30, 2026 and encompasses an additional 46,460 square feet. The term of the Halstead Lease is 13 years from July 1, 2022. The Company received delivery of the premise on July 1, 2021 and is scheduled to complete construction of office, laboratory, and related improvements in the second half of 2022. The Halstead Lease provides the Company with improvement allowances of up to $17,032,015 and $3,252,000 in connection with the Phase 1 and Phase 2 building improvements, respectively. The initial base monthly rent is $386,335.95 , or $4.65 per square foot, and includes increases of three percent annually. The Company will also be responsible for its proportionate share of operating expenses, tax expense, and utility costs. In July 2021, the Halstead Lease was amended to clarify the start date of the new lease as August 1, 2021 and amends other provisions of the Halstead Lease to reflect the new start date of the lease. In June 2021, the Company entered into an 18-month lease for a 7,020 -square-foot office space in Monrovia, California. The lease begins on August 1, 2021 and the initial base monthly rent is $15,000 . The Company received delivery of the premises on July 19, 2021. The following table reconciles the undiscounted cash flows for the operating leases at June 30, 2021 to the operating lease liabilities recorded on the balance sheet (in thousands): Years ending December 31, For the remainder of 2021 $ 1,117 2022 2,093 2023 707 2024 729 2025 688 Total undiscounted lease payments 5,334 Less: Imputed interest (310) Present value of lease payments $ 5,024 Lease liabilities - short-term $ 2,322 Lease liabilities - long-term 2,702 Total lease liabilities $ 5,024 The following table summarizes lease costs and cash payments for the three and six months ended June 30, 2021 and 2020 (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Operating lease cost $ 614 $ 648 $ 1,228 $ 1,297 Variable lease cost 18 38 28 59 Total lease costs $ 632 $ 686 $ 1,256 $ 1,356 Cash paid for amounts included in the measurement of lease liabilities $ 548 $ 566 $ 1,047 $ 1,123 As of June 30, 2021, the weighted-average remaining lease term for operating leases is 3.1 years, and the weighted-average discount rate for operating leases is 4.0% |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies | |
Commitments and Contingencies | 8. Commitments and Contingencies From time to time, the Company may be subject to various litigation and related matters arising in the ordinary course of business. The Company does not believe it is currently subject to any material matters where there is at least a reasonable possibility that a material loss may be incurred. The Company is obligated to make future payments to third parties under in-license agreements, including sublicense fees, royalties, and payments that become due and payable on the achievement of certain development and commercialization milestones. As the amount and timing of sublicense fees and the achievement and timing of these milestones are not probable and estimable, such commitments have not been included on the Company’s balance sheet. The Company has also entered into agreements with third-party vendors that will require us to make future payments upon the delivery of goods and services in future periods. |
Collaboration and Licensing Agr
Collaboration and Licensing Agreements | 6 Months Ended |
Jun. 30, 2021 | |
Collaboration and Licensing Agreements | |
Collaboration and Licensing Agreements | 9. Collaboration and Licensing Agreements The following is a summary description of the material revenue arrangements, including arrangements that generated revenue in the three and six months ended June 30, 2021 and 2020. Aimmune Therapeutics, Inc. On February 4, 2020, the Company entered into a License, Development and Commercialization Agreement (the Aimmune Agreement) with Aimmune pursuant to which the Company granted Aimmune an exclusive worldwide license to XmAb7195, which was renamed AIMab7195. The Company received an upfront payment of $5.0 million and 156,238 shares of Aimmune common stock with an aggregate value of $4.6 million on the closing date. Under the Aimmune Agreement, the Company is also eligible to receive up to $385.0 million in milestones, which includes $22.0 million in development milestones, $53.0 million in regulatory milestones and $310.0 million in sales milestones, and tiered royalties on net sales of approved products from high-single to mid-teen percentage range. No revenue was recognized in the three and six months ended June 30, 2021, or the three months ended June 30, 2020. The Company recognized $9.6 million of revenue related to the agreement for the six months ended June 30, 2020. There is no deferred revenue as of June 30, 2021 related to this agreement. Alexion Pharmaceuticals, Inc. In January 2013, the Company entered into an Option and License Agreement (the Alexion Agreement) with Alexion Pharmaceuticals, Inc. (Alexion). Under the terms of the Alexion Agreement, the Company granted to Alexion an exclusive research license, with limited sublicensing rights, to make and use the Company’s Xtend technology to evaluate and advance compounds. Alexion exercised its rights to one target program, ALXN1210, which is now marketed as Ultomiris®. The Company is eligible to receive contractual milestones for certain commercial achievements and is also entitled to receive royalties based on a percentage of net sales of Ultomiris sold by Alexion, its affiliates or its sublicensees, which percentage is in the low single digits. Alexion’s royalty obligations continue on a product-by-product and country-by-country basis until the expiration of the last-to-expire valid claim in a licensed patent covering the applicable product in such country. At December 31, 2020, the Company recorded a contract asset of $10.0 million related to a contractual sales milestone; the Company received payment for this milestone during the three-month period ended March 31, 2021. Under ASC 606, Revenue from Contracts with Customers Amgen Inc. In September 2015, the Company entered into a research and license agreement (the Amgen Agreement) with Amgen Inc. (Amgen) to develop and commercialize bispecific antibody product candidates using the Company’s proprietary XmAb bispecific Fc technology. Under the Amgen Agreement, the Company granted an exclusive license to Amgen to the rights to our CD38 x CD3 preclinical program and developed AMG 424. Amgen also applied our bispecific Fc technology to create AMG 509, a STEAP1 x CD3 XmAb 2+1 bispecific antibody. In May 2020, Amgen notified the Company that it was terminating its rights with respect to the AMG 424 program, (now XmAb968). Under the terms of the Amgen Agreement, the rights to the AMG 424 program reverted to the Company in connection with the termination. Pursuant to the termination agreement, the Company entered into a supply agreement with Amgen pursuant to which Amgen will provide drug product of AMG 424 to the Company to enable it to conduct additional studies of XmAb968. There is an obligation of $0.9 million due to Amgen in connection with the drug supply agreement. No revenue was recognized under the Amgen Agreement during the three and six months ended June 30, 2021 or 2020. As of June 30, 2021, there is no deferred revenue related to the arrangement. Astellas Pharma Inc. Effective March 29, 2019, the Company entered into a Research and License Agreement (the Astellas Agreement) with Astellas Pharma Inc. (Astellas). Pursuant to the Astellas Agreement, the Company applied its bispecific Fc technology to research antibodies provided by Astellas to generate bispecific antibody candidates and returned the candidates to Astellas for further development and commercialization. Pursuant to the Astellas Agreement, the Company received an upfront payment of $15.0 million and is eligible to receive up to $240.0 million in milestones, which include $32.5 million in development milestones, $57.5 million in regulatory milestones and $150.0 million in sales milestones. The Company recognized the $13.6 million allocated to the bispecific antibodies when it satisfied its performance obligation and transferred the bispecific antibodies to Astellas in June 2019. The $1.4 million allocated to the research activities was recognized as the research services were completed. The Company completed the remaining activities under the research plan during the second quarter of 2020. At December 31, 2020, the Company recorded a contract asset of $2.5 million related to a development milestone; the Company received payment for this milestone in the three-month period ended March 31, 2021. The Company did not recognize revenue related to the arrangement for the three and six months ended June 30, 2021. The Company recognized $0.7 million and $0.9 million revenue for the three and six months ended June 30, 2020, respectively. There is no deferred revenue as of June 30, 2021 related to the arrangement. Catabasis Pharmaceuticals, Inc. / Quellis Biosciences, Inc. In May 2018, the Company entered into an agreement with Quellis, pursuant to which the Company provided Quellis a non-exclusive license to its Xtend Fc technology to apply to an identified antibody. Quellis is responsible for all development and commercialization activities. The Company received an equity interest in Quellis and is eligible to receive up to $66.0 million in milestones, which include $6.0 million in development milestones, $30.0 million in regulatory milestones and $30.0 million in sales milestones. In addition, the Company is eligible to receive royalties in the mid-single digit percentage range on net sales of approved products. In January 2021, Quellis merged into Catabasis, and the Company received common stock and preferred stock of Catabasis stock in exchange for its equity in Quellis. The Company recognized an increase in the fair value of its equity interest for the exchange of shares, which was recorded as unrealized gain for the three months ended March 31, 2021. In June 2021, a portion of the Company’s preferred stock in Catabasis was converted to common stock, which was recorded at its fair value as of June 30, 2021. The remaining Catabasis preferred stock is carried at its original cost and is reviewed for impairment or other changes at each reporting period. The Company recognized a decrease in the fair value of its Catabasis common stock, which was recorded as unrealized loss for the three months ended June 30, 2021. The Company recognized unrealized loss of $3.7 million and unrealized gain of $9.2 million related to its equity interest in Catabasis for the three and six months ended June 30, 2021. There is no deferred revenue as of June 30, 2021 related to this agreement. Genentech, Inc., and F. Hoffmann-La Roche Ltd. In February 2019, the Company entered into a collaboration and license agreement (the Genentech Agreement) with Genentech, Inc. and F. Hoffman-La Roche Ltd (collectively, Genentech) for the development and commercialization of novel IL-15 collaboration products (Collaboration Products), including XmAb306 (also named RG6323), the Company’s IL-15/IL-15Ra candidate. Pursuant to the Genentech Agreement, XmAb306 is designated as a development program and all costs incurred for developing XmAb306 from March 8, 2019, the effective date of the Genentech Agreement, are being shared with Genentech under the initial cost-sharing percentage of 45%. In October 2020, a second candidate, a targeted IL-15 candidate, was designated as a development candidate, and all development costs incurred from the date of designation are being shared with Genentech under the initial cost-sharing percentage of 45%. Pursuant to the Genentech Agreement, the Company and Genentech conducted joint research activities for a two -year period to identify and discover additional IL-15 candidates developed from the Company’s cytokine and bispecific technologies. The two-year research term expired in March 2021. The Company is eligible for clinical milestone payments for new Collaboration Products identified from the research efforts. The Company recognized the $111.7 million allocated to the license when it satisfied its performance obligation and transferred the license to Genentech in March 2019. A total of $8.3 million of the transaction price was allocated to the research activities and is being recognized over a period of time through the end of the research term that services are rendered. The research term expired in the first half of 2021, and the balance in deferred revenue related to the Genentech Agreement was recognized as the Company is no longer required to render services. For the three months ended June 30, 2021 and 2020, the Company recognized $2.3 million and $0.8 million of revenue, respectively. For the six months ended June 30, 2021, and 2020, the Company recognized $2.5 million and $1.5 million of revenue, respectively from the Genentech Agreement. As of June 30, 2021, there is a $2.3 million payable related to cost-sharing development activities during the second quarter of 2021 for the XmAb306 and the targeted IL-15 programs. There is no deferred revenue as of June 30, 2021, as the obligation to perform research activities has expired. Gilead Sciences, Inc. In January 2020, the Company entered into a Technology License Agreement (the Gilead Agreement) with Gilead Sciences, Inc. (Gilead), pursuant to which the Company provided an exclusive license to its Cytotoxic Fc and Xtend Fc technologies for an initial identified antibody and options for up to three additional antibodies directed to the same molecular target. The Company retains the right to grant licenses for other antibodies directed to the target, subject to the Company’s approval. Gilead is responsible for all development and commercialization activities for all target candidates. The Company received an upfront payment of $6.0 million and is eligible to receive up to $67.0 million in milestones, which includes $10.0 million in development milestones, $27.0 million in regulatory milestones and $30.0 million in sales milestones for each product incorporating the antibodies selected. In addition, the Company is eligible to receive royalties in the low-single digit percentage range on net sales of approved products. The Company did not recognize any revenue related to the Gilead Agreement for the three and six months ended June 30, 2021. The Company recognized $7.5 million and $13.5 million of revenue related to the Gilead Agreement for the three and six months ended June 30, 2020, respectively. There is no deferred revenue as of June 30, 2021 related to this agreement. INmune Bio, Inc. In October 2017, the Company entered into a License Agreement (the INmune Agreement) with INmune. Under the terms of the INmune Agreement, the Company provided INmune with an exclusive license to certain rights to a proprietary protein, XPro1595. In connection with the agreement the Company received 1,585,000 shares of INmune common stock and an option to acquire additional shares of INmune. The option had a six-year term from the date of the INmune Agreement and provided the Company the option to purchase up to 10% of the fully diluted outstanding shares of INmune common stock for $10.0 million. The Company initially recorded its equity interest in INmune, including its option to acquire additional INmune shares, at cost pursuant to ASC 323. In June 2021, the Company entered into the First Amendment to License Agreement (the “Amended INmune Agreement”) and an Option Cancellation Agreement (the “Option Agreement”) with INmune. The Amended INmune Agreement modified certain diligence provisions in the INmune Agreement with no change in total consideration or performance obligations. The Option Agreement provided for the sale of the option to INmune for a total consideration of $18.3 million which includes $15.0 million in cash and $3.3 million in additional shares of INmune common stock, which represented an additional 192,533 shares of INmune common stock. The Company recorded a realized gain of $18.3 million according to ASC 860, Transfer and Servicing Investments – Equity Securities During the period ended June 30, 2021, the Company determined that it should no longer record its investment in INmune under the equity method and recorded its investment in INmune pursuant to ASC 321. The Company adjusted the carrying value of this investment by recognizing an unrealized gain of $27.8 million as other income for the three and six months ended June 30, 2021. At the inception of the INmune agreement in 2017, INmune was a related party as a result of the Company's significant influence with respect to its investment in INmune, as determined under ASC 323. The Company did not have any amounts due to or from INmune at June 30, 2021 or December 31, 2020. At June 30, 2021, the Company determined that it no longer has a significant influence in INmune and INmune is no longer a related party. Janssen Biotech, Inc. In November 2020, the Company entered into a Collaboration and License Agreement (the Janssen Agreement) with Janssen Biotech, Inc. (Janssen) pursuant to which the Company and Janssen will conduct research and development activities to discover novel CD28 bispecific antibodies for the treatment of prostate cancer. Janssen and the Company will conduct joint research activities for up to a three-year period to discover XmAb bispecific antibodies against CD28 and against an undisclosed prostate tumor-target with Janssen maintaining exclusive worldwide rights to develop and commercialize licensed products identified from the research activities. Under the Janssen Agreement, the Company will conduct research activities and apply its bispecific Fc technology to antibodies targeting prostate cancer provided by Janssen. Upon completion of the research activities Janssen will have a candidate selection option to advance an identified candidate for development and commercialization. The activities will be conducted under a research plan agreed to by both parties. Janssen will assume full responsibility for development and commercialization of the CD28 bispecific antibody candidate. Pursuant to the Janssen Agreement, the Company received an upfront payment of $50.0 million and is eligible to receive up to $662.5 million in milestones which includes $161.9 million in development milestones, $240.6 million in regulatory milestones and $260.0 million in sales milestones. If commercialized, the Company is eligible to receive royalties on net sales that range from the high-single to low-double digit percentages. The Company evaluated the Janssen Agreement under ASC 606 and identified the performance obligation under the Agreement to be delivery of CD28 bispecific antibodies to Janssen from the research activities outlined in the research plan. The Company determined that the license to the bispecific antibodies is not a separate performance obligation because it is not capable of being distinct; the license to the antibodies cannot be separated from the underlying antibodies. The Company determined that the transaction price of the Janssen Agreement at inception was $50.0 million consisting of the upfront payment. The potential milestones are not included in the transaction price as these are contingent on future events, and the Company would not recognize these in revenue until it is not probable that these would not result in significant reversal of revenue amounts in future periods. The candidate selection option payment is substantive and is a separate performance obligation. The Company will re-assess the transaction price at each reporting period and when event outcomes are resolved or changes in circumstances occur. The Company allocated the transaction price to the single performance obligation, delivery of CD28 bispecific antibodies to Janssen. The Company is recognizing the $50.0 million transaction price as it satisfies its performance obligation to deliver CD28 bispecific antibodies to Janssen. The Company is using the expected input method, which considers an estimate of the Company’s efforts to complete the research activities outlined in the Janssen Agreement. The Company recognized $16.2 million and $30.8 million of revenue under this arrangement for the three and six months ended June 30, 2021, and there is $19.2 million in deferred revenue as of June 30, 2021 related to our obligation to complete research activities and deliver CD28 bispecific antibodies under the Janssen Agreement. MorphoSys AG In June 2010, the Company entered into a Collaboration and License Agreement with MorphoSys AG (MorphoSys), which was subsequently amended. Under the agreement, we granted MorphoSys an exclusive worldwide license to the Company’s patents and know-how to research, develop and commercialize the XmAb5574 product candidate (subsequently renamed MOR208 and tafasitamab) with the right to sublicense under certain conditions. If certain developmental, regulatory and sales milestones are achieved, the Company is eligible to receive future milestone payments and royalties. In February 2020, the U.S. Food and Drug Administration (FDA) accepted MorphoSys’ Biologics License Application (BLA) for tafasitamab and the Company received a milestone payment of $12.5 million. The Company recognized the payment as revenue in the period that the milestone event occurred. On July 31, 2020, the FDA granted accelerated approval to MorphoSys’ BLA for tafasitamab (now Monjuvi®) for marketing in the United States. In connection with the approval, the Company received a milestone payment of $25.0 million. During the three months ended March 31, 2021, MorphoSys reported to us its plans to initiate additional clinical studies of Monjuvi, and the Company recorded a contract asset of $12.5 million as an adjustment to the total transaction price. In April 2021, MorphoSys and Incyte Corporation (Incyte) announced the dosing of the first patient in one of their planned Phase 3 clinical studies and the contract asset was recorded as a receivable. The Company received payment for this receivable in the three months ended June 30, 2021. The Company is eligible to receive royalties in the high-single to low-double digit percentage range on approved sales of Monjuvi. Under ASC 606, the Company recognizes revenue for sales-based royalties upon the subsequent sale of the product. The Company recorded royalties for Monjuvi based on an estimate of sales to be reported by MorphoSys for the three and six months ended June 30, 2021. The Company recognized $1.2 million and $2.6 million of royalty revenue during the three and six months ended June 30, 2021, respectively. The Company also recognized $12.5 million of milestone revenue under this arrangement for each of the six months ended June 30, 2021 and June 30, 2020. As of June 30, 2021, there is a receivable of $1.5 million related to estimated royalties due under the arrangement. As of June 30, 2021, there is no deferred revenue related to this agreement. Novartis Institute for Biomedical Research, Inc. In June 2016, the Company entered into a Collaboration and License Agreement (the Novartis Agreement) with Novartis Institutes for BioMedical Research, Inc. (Novartis), to develop and commercialize bispecific and other Fc engineered antibody drug candidates using the Company’s proprietary XmAb technologies and drug candidates. Pursuant to the Novartis Agreement: ● the Company and Novartis are co-developing vibecotamab worldwide and sharing development costs; ● the Company will apply its bispecific technology in up to four target pair antibodies identified by Novartis (each a Global Discovery Program) during the research term; and ● the Company will provide Novartis with a non-exclusive license to certain of its Fc technologies to apply against up to ten targets identified by Novartis during the research term. We completed delivery of separate Global Discovery Programs in 2017 and in 2018. The research term expired in June 2021 without delivery of additional Global Discovery Programs. In June 2021, Novartis selected an Fc candidate and received a non-exclusive license to the Company’s Fc technology under the Novartis Agreement. Novartis will assume full responsibility for development and commercialization of the licensed Fc product candidate. The Company is eligible to receive development, clinical, and sales milestones and royalties on net sales of approved products for the licensed Fc candidate. During the three and six months ended June 30, 2021, Novartis advanced the Fc candidate into investigational new drug (IND) - enabling studies and the Company recognized a milestone of $1.0 million. The Company recognized $40.1 million of revenue during the three and six months ended June 30, 2021, as a result of the expiration of the research term under the Novartis Agreement. The Company also recognized $1.0 million of milestone revenue during the three and six months ended June 30, 2021. No revenue was recognized during the three and six months ended June 30, 2020. As of June 30, 2021, there is a receivable of $1.0 million related to milestones revenue and $0.8 million related to cost-sharing of development activities for the second quarter of 2021 for the vibecotamab program. There is no deferred revenue as of June 30, 2021 as the research term to deliver additional Global Discovery Programs to Novartis under the arrangement has expired. Vir Biotechnology, Inc. In the third quarter of 2019, the Company entered into a Patent License Agreement (the Vir Agreement) with Vir Biotechnology, Inc. (Vir) pursuant to which the Company provided a non-exclusive license to its Xtend technology for up to two targets. In March 2020, the Company entered into a second Patent License Agreement (the Second Vir Agreement) with Vir pursuant to which the Company provided a non-exclusive license to its Xtend technology to extend the half-life of two novel antibodies Vir is investigating as potential treatments for patients with COVID-19. Under the terms of the Second Vir Agreement, Vir is responsible for all research, development, regulatory and commercial activities for the antibodies, and the Company is eligible to receive royalties on the net sales of approved products in the mid-single digit percentage range. In May 2021, the FDA granted emergency use authorization (EUA) to Vir’s COVID-19 antibody, sotrovimab (VIR-7831), for the treatment of mild-to-moderate COVID-19 in high-risk adults and patients. In February 2021, the Company entered into the Vir Amendment No. 1 to the Vir Agreement and the Vir Amendment No. 1 to the Second Vir Agreement (collectively, the Vir Amendments), in each case, pursuant to which the Company provided a non-exclusive license to additional Fc technology for the targets previously identified in the Vir Agreement and the Second Vir Agreement, respectively. If Vir incorporates additional Fc technologies in the identified targets, the Company is eligible to receive additional royalties on net sales of approved products from low to mid-single digit range. The Company determined that the Second Vir Agreement and the Vir Amendments were modifications of the original Vir Agreement, and that the transfer of the license occurred at inception of the Vir Agreement. The total consideration under the arrangement did not change with the Second Vir Agreement or the Amendments as the Company will potentially receive additional royalty revenue which is variable consideration and is not included in the transaction price. In June 2021, Vir announced its plan to initiate a Phase 2 study for VIR-3434 and subsequently completed dosing of the first patient in such study in July 2021. The Company recorded a $0.5 million contract asset in connection with this milestone event. The Company recognized $0.9 million of royalty revenue and $0.5 million of milestone revenue for the three and six months ended June 30, 2021. The Company recognized $0.3 million of milestone revenue for the three and six months ended June 30, 2020. There is no deferred revenue as of June 30, 2021 related to this agreement. Viridian Therapeutics, Inc. In December 2020, the Company entered into a Technology License Agreement (Viridian Agreement) with Viridian Therapeutics, Inc. (Viridian, formerly MiRagen Therapeutics, Inc.), pursuant to which the Company provided Viridian a non-exclusive license to its Xtend Fc technology and an exclusive license to apply its Xtend Fc technology to antibodies targeting IGF-1R. Viridian is responsible for all development and commercialization activities. The Company received an upfront payment of 322,407 shares of Viridian common stock valued at $6.0 million and is eligible to receive up to $55.0 million in milestones, which includes $10.0 million in development milestones, $20.0 million in regulatory milestones and $25.0 million in sales milestones. If commercialized, the Company is eligible to receive royalties on net sales in the mid-single digit percentage range. The Company recognized revenue of $6.0 million from the Viridian Agreement in 2020, which includes the upfront payment of 322,407 shares of Viridian common stock at their fair value at the date of the Viridian Agreement. At inception of the Viridian Agreement, these shares were recorded at their fair value and are adjusted to their fair value at the end of each reporting period. The Company reported unrealized gain in other income of $0.5 million and $0.6 million for the three and six months ended June 30, 2021 related to the Viridian shares. The Company did not recognize revenue for the three and six months ended June 30, 2021, and there is no deferred revenue as of June 30, 2021 related to this agreement. Zenas BioPharma Limited In November 2020, the Company entered into a License Agreement (the Zenas Agreement) with Zenas, pursuant to which the Company granted Zenas exclusive, worldwide rights to develop and commercialize three preclinical-stage Fc-engineered drug candidates: XmAb6755, XPro9523 and XmAb10171. Under the Zenas Agreement, Zenas will be responsible for all further development and commercialization activities for the drug candidates. The Company received a 15% equity interest in Zenas with a fair value of $16.1 million, and the Company is eligible to receive royalties on net sales of approved products in the mid-single digit to mid-teen percentage range. The total transaction price is $16.1 million, which includes the upfront payment of 15% of the equity of Zenas at its fair value using the measurement alternative under ASC 321 as of the date of the Zenas Agreement. The Company recorded licensing revenue of $16.1 million for the Zenas Agreement for the three months ended December 31, 2020. The equity in Zenas is recorded at the fair value as of the date of the Zenas Agreement and is reviewed each reporting period for impairment or other evidence of change in value. The Company did not record an impairment or change in the value of the Zenas equity at June 30, 2021. The Company did not recognize any revenue related to the Zenas Agreement for the three and six months ended June 30, 2021. There is no deferred revenue as of June 30, 2021 related to this agreement. Revenue earned The revenues recorded for the three and six months ended June 30, 2021 and 2020 were earned principally from the following licensees (in millions): Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Aimmune $ — $ — $ — $ 9.6 Alexion 5.2 3.8 10.5 7.2 Astellas — 0.7 — 0.9 Genentech 2.3 0.8 2.5 1.5 Gilead — 7.5 — 13.5 Janssen 16.2 — 30.8 — MorphoSys 1.2 — 15.1 12.5 Novartis 41.1 — 41.1 — Vir 1.4 0.3 1.4 0.3 Total $ 67.4 $ 13.1 $ 101.4 $ 45.5 The table below summarizes the disaggregation of revenue recorded for the three and six months ended June 30, 2021 and 2020 (in millions): Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Research collaboration $ 58.6 $ 1.5 $ 73.4 $ 2.4 Milestone 1.5 0.3 14.0 12.8 Licensing — 7.5 — 23.1 Royalties 7.3 3.8 14.0 7.2 Total $ 67.4 $ 13.1 $ 101.4 $ 45.5 Remaining Performance Obligations and Deferred Revenue The Company’s remaining performance obligation as of June 30, 2021 is conducting research activities pursuant to research plans under the Janssen Agreement. The Company completed its performance obligations for research activities pursuant to the Astellas Agreement in the second quarter of 2020. The Company’s obligation to perform research services for Genentech and to deliver additional Global Discovery Programs under the Novartis Agreement ended upon expiration of the respective research terms for each agreement in the second quarter of 2021. As of June 30, 2021 and 2020, the Company has deferred revenue of $19.2 million and $44.7 million, respectively. All deferred revenue as of June 30, 2021 is classified as current liabilities as the Company’s obligations to perform services are due on demand when requested by Janssen under the Janssen Agreement. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Taxes | |
Income Taxes | 10. Income taxes There was no provision for income taxes for the three and six months ended June 30, 2021 or 2020. For the three and six months ended June 30, 2021, taxable income was reduced by temporary differences in revenue recognition and from gains in equity securities. As of June 30, 2021, the Company’s deferred income tax assets, consisting primarily of net operating loss and tax credit carryforwards, have been fully offset by a valuation allowance. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Polices) | 6 Months Ended |
Jun. 30, 2021 | |
Summary of Significant Accounting Policies | |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim financial statements for Xencor, Inc. (the Company, Xencor, we or us) have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information. The financial statements include all adjustments (consisting only of normal recurring adjustments) that the management of the Company believes are necessary for a fair presentation of the periods presented. The preparation of interim financial statements requires the use of management’s estimates and assumptions that affect reported amounts of assets and liabilities at the date of the interim financial statements and the reported revenues and expenditures during the reported periods. These interim financial results are not necessarily indicative of the results expected for the full fiscal year or for any subsequent interim period. The accompanying unaudited interim financial statements and related notes should be read in conjunction with the audited financial statements and notes thereto included in the Company’s 2020 Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on February 24, 2021. |
Use of Estimates | Use of Estimates The preparation of interim financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, other comprehensive gain (loss) and the related disclosures. On an ongoing basis, management evaluates its estimates, including estimates related to its accrued clinical trial and manufacturing development expenses, stock-based compensation expense, intangible assets, and related amortization. Significant estimates in these interim financial statements include estimates: made for royalty revenue, accrued research and development expenses, stock-based compensation expenses, intangible assets and related amortization, estimated standalone selling price of performance obligations, estimated time for completing delivery of performance obligations under certain arrangements, the likelihood of recognizing variable consideration, the carrying value of equity instruments without a readily determinable fair value, and recoverability of deferred tax assets. |
Intangible Assets | Intangible Assets The Company maintains definite-lived intangible assets related to certain capitalized costs of acquired licenses and third-party costs incurred in establishing and maintaining its intellectual property rights to its platform technologies and development candidates. These assets are amortized over their useful lives, which are estimated to be the remaining patent life or the contractual term of the license. The straight-line method is used to record amortization expense. The Company assesses its intangible assets for impairment if indicators are present or changes in circumstances suggest that impairment may exist. There were no impairment charges recorded for the three and six months ended June 30, 2021 and 2020. The Company capitalizes certain in-process intangible assets that are then abandoned when they are no longer pursued or used in current research activities. There was no material abandonment of in-process intangible assets during the three and six months ended June 30, 2021 and 2020. |
Marketable and Equity Securities | Marketable and Equity Securities The Company has an investment policy that includes guidelines on acceptable investment securities, minimum credit quality, maturity parameters, and concentration and diversification. The Company invests its excess cash primarily in marketable debt securities issued by investment grade institutions. The Company considers its marketable debt securities to be available-for-sale because it is not more likely than not that the Company will be required to sell the securities before recovery of the amortized cost. These assets are carried at fair value and any impairment losses and recoveries related to the underlying issuer’s credit standing are recognized within other income (expense), while non-credit related impairment losses and recoveries are recognized within accumulated other comprehensive income (loss). There were no impairment losses or recoveries recorded for the three and six months ended June 30, 2021 and 2020. Accrued interest on marketable debt securities is included in the marketable securities’ carrying value. Each reporting period, the Company reviews its portfolio of marketable debt securities, using both quantitative and qualitative factors, to determine if each security’s fair value has declined below its amortized cost basis. The Company receives equity securities in connection with certain licensing transactions with its partners. These investments in equity securities are carried at fair value with changes in fair value recognized each period and reported within other income (expense). For equity securities with a readily determinable fair value, the Company re-measures these equity investments at each reporting period until such time that the investment is sold or disposed. If the Company sells an investment, any realized gain or loss on the sale of the securities will be recognized within other income (expense) in the Statements of Comprehensive Income (Loss) in the period of sale. The Company also has investments in equity securities without readily determinable fair values, where the Company elects the measurement alternative to record at its initial cost minus impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Pronouncements Adopted in 2021 Effective January 1, 2021, the Company adopted ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes Effective January 1, 2021, the Company adopted ASU No. 2020-01, which clarifies that a company should consider observable transactions that require a company to either apply or discontinue the equity method of accounting under Topic 323, Investment – Equity Method and Joint Ventures Investments – Equity Securities Effective January 1, 2021, the Company adopted ASU No. 2020-10, Codification Improvements There have been no other material changes to the significant accounting policies previously disclosed in the Company’s 2020 Annual Report on Form 10-K. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value of Financial Instruments | |
Schedule of assets recorded at fair value | June 30, 2021 (unaudited) December 31, 2020 Total Total Fair Value Level 1 Level 2 Level 3 Fair Value Level 1 Level 2 Level 3 Available-for-Sale Debt Securities: Money Market Funds $ 71,703 $ 71,703 $ — $ — $ 158,937 $ 158,937 $ — $ — Corporate Securities 104,957 — 104,957 — 119,833 — 119,833 — Government Securities 337,638 — 337,638 — 315,353 — 315,353 — Equity Securities: Securities with Readily Determinable Fair Value 45,230 45,230 — — 5,303 5,303 — — Securities without Readily Determinable Fair Value 17,146 — — 17,146 16,071 — — 16,071 $ 576,674 $ 116,933 $ 442,595 $ 17,146 $ 615,497 $ 164,240 $ 435,186 $ 16,071 |
Summary of rollforward of recurring Level 3 fair value measurements | Securities without Readily Determinable Fair Value Balance at December 31, 2020 $ 16,071 Issuance 12,148 Transfer out of Level 3 (11,073) Balance at June 30, 2021 $ 17,146 |
Net Income (Loss) Per Common _2
Net Income (Loss) Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Net Income (Loss) Per Common Share | |
Schedule of basic and diluted net income (loss) per common share | Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (in thousands, except share and per share data) Numerator: Net income (loss) attributable to common stockholders $ 52,248 $ (35,018) $ 49,761 $ (43,092) Denominator: Weighted-average common shares outstanding used in computing basic net income (loss) 58,247,941 57,059,610 58,123,319 57,003,162 Effect of dilutive securities 2,087,398 — 2,380,527 — Weighted-average common shares outstanding used in computing diluted net income (loss) 60,335,339 57,059,610 60,503,846 57,003,162 Basic net income (loss) per common share $ 0.90 $ (0.61) $ 0.86 $ (0.76) Diluted net income (loss) per common share $ 0.87 $ (0.61) $ 0.82 $ (0.76) |
Marketable Securities (Tables)
Marketable Securities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Marketable Securities | |
Schedule of marketable securities | Gross Gross Amortized Unrealized Unrealized June 30, 2021 Cost Gains Losses Fair Value (in thousands) Money Market Funds $ 71,703 $ — $ — $ 71,703 Corporate Securities 104,975 13 (31) 104,957 Government Securities 337,625 36 (23) 337,638 $ 514,303 $ 49 $ (54) $ 514,298 Reported as Cash and cash equivalents $ 71,703 Marketable securities 442,595 Total investments $ 514,298 Gross Gross Amortized Unrealized Unrealized December 31, 2020 Cost Gains Losses Fair Value (in thousands) Money Market Funds $ 158,937 $ — $ — $ 158,937 Corporate Securities 119,782 57 (6) 119,833 Government Securities 315,319 37 (3) 315,353 $ 594,038 $ 94 $ (9) $ 594,123 Reported as Cash and cash equivalents $ 158,937 Marketable securities 435,186 Total investments $ 594,123 |
Schedule of maturities of marketable securities | Amortized Estimated June 30, 2021 Cost Fair Value (in thousands) Mature in one year or less $ 288,935 $ 288,976 Mature within two years 153,665 153,619 $ 442,600 $ 442,595 |
Schedule of unrealized losses on available-for-sale investments | The unrealized losses on available-for-sale investments and their related fair values as of June 30, 2021 and December 31, 2020 are as follows: Less than 12 months 12 months or greater Unrealized Unrealized June 30, 2021 Fair value losses Fair value losses (in thousands) Corporate Securities $ 11,721 $ (4) $ 24,876 $ (27) Government Securities — — 84,888 (23) $ 11,721 $ (4) $ 109,764 $ (50) Less than 12 months 12 months or greater Unrealized Unrealized December 31, 2020 Fair value losses Fair value losses (in thousands) Corporate Securities $ 15,843 $ (6) $ — $ — Government Securities 40,802 (3) — — $ 56,645 $ (9) $ — $ — |
Schedule of equity securities with readily determinable fair value | The Company’s equity securities include securities with a readily determinable fair value. These investments are carried at fair value with changes in fair value recognized each period and reported within other income (expense). Equity securities with a readily determinable fair value and their fair values (in thousands) as of June 30, 2021 and December 31, 2020 are as follows: Fair Value Fair Value June 30, 2021 December 31, 2020 Catabasis Common Stock $ 8,102 $ — INmune Common Stock 31,231 — Viridian Common Stock 5,897 5,303 $ 45,230 $ 5,303 |
Schedule of equity securities without readily determinable fair value | The Company also has investments in equity securities without a readily determinable fair value. The Company elects the measurement alternative to record these investments at their initial cost and evaluate such investments at each reporting period for evidence of impairment. Equity securities without a readily determinable fair value and their carrying values (in thousands) as of June 30, 2021 and December 31, 2020 are as follows: Carrying Value Carrying Value June 30, 2021 December 31, 2020 Catabasis Preferred Stock $ 1,075 $ — Zenas Preferred Stock 16,071 16,071 $ 17,146 $ 16,071 |
Schedule of net gains and losses | Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Net gains (losses) recognized on equity securities $ 43,020 $ 358 $ 56,002 $ (1,978) Less: net gains recognized on sale of equity securities (18,300) — (18,301) — Unrealized gains (losses) recognized on equity securities $ 24,720 $ 358 $ 37,701 $ (1,978) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Stock-Based Compensation | |
Schedule of total employee, director and non-employee stock-based compensation expense recognized | Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 General and administrative $ 3,193 $ 2,804 $ 5,930 $ 5,095 Research and development 6,157 5,427 11,713 9,648 $ 9,350 $ 8,231 $ 17,643 $ 14,743 Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Stock options $ 7,355 $ 6,667 $ 13,885 $ 12,549 ESPP 253 213 501 407 RSUs 1,742 1,351 3,257 1,787 $ 9,350 $ 8,231 $ 17,643 $ 14,743 |
Summary of stock option activity | Weighted Weighted Average Average Number of Exercise Remaining Aggregate Shares Subject Price Contractual Intrinsic to Outstanding (Per Term Value Options Share) (in years) (in thousands) Balance at December 31, 2020 7,751,789 $ 26.23 7.00 $ 134,941 Options granted 1,488,576 $ 42.73 Options forfeited (197,440) $ 35.34 Options exercised (283,491) $ 22.02 Balance at June 30, 2021 8,759,434 $ 28.97 6.94 $ 65,388 Exercisable 5,265,826 $ 23.37 5.68 $ 61,080 |
Schedule of weighted average assumptions used for estimation of fair value of stock options | Options Options Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Expected term (years) 6.2 5.7 6.2 6.2 Expected volatility 55.3 % 56.1 % 55.6 % 54.3 % Risk-free interest rate 1.03 % 0.41 % 1.02 % 0.84 % Expected dividend yield — % — % — % — % |
Schedule of weighted average assumptions used for estimation of fair value of ESPP | ESPP ESPP Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Expected term (years) 0.5 - 2.0 0.5 - 2.0 0.5 - 2.0 0.5 - 2.0 Expected volatility 46.1 - 66.4 % 50.8 - 62.6 % 46.1 - 66.4 % 50.8 - 62.6 % Risk-free interest rate 0.04 - 1.65 % 0.18 - 1.65 % 0.04 - 1.65 % 0.18 - 1.65 % Expected dividend yield — % — % — % — % |
Summary of restricted stock unity activity | Weighted Restricted Average Grant Stock Date Fair Value Units (Per unit) Unvested RSUs at December 31, 2020 358,825 $ 33.04 Granted 266,726 42.85 Vested (127,998) 31.71 Forfeited (28,086) 36.16 Unvested RSUs at June 30, 2021 469,467 $ 38.79 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Leases | |
Schedule of operating lease liabilities maturities | The following table reconciles the undiscounted cash flows for the operating leases at June 30, 2021 to the operating lease liabilities recorded on the balance sheet (in thousands): Years ending December 31, For the remainder of 2021 $ 1,117 2022 2,093 2023 707 2024 729 2025 688 Total undiscounted lease payments 5,334 Less: Imputed interest (310) Present value of lease payments $ 5,024 Lease liabilities - short-term $ 2,322 Lease liabilities - long-term 2,702 Total lease liabilities $ 5,024 |
Summary of lease costs and cash disclosures | Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Operating lease cost $ 614 $ 648 $ 1,228 $ 1,297 Variable lease cost 18 38 28 59 Total lease costs $ 632 $ 686 $ 1,256 $ 1,356 Cash paid for amounts included in the measurement of lease liabilities $ 548 $ 566 $ 1,047 $ 1,123 |
Collaboration and Licensing A_2
Collaboration and Licensing Agreements (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Collaboration and Licensing Agreements | |
Schedule of revenue by licensees | The revenues recorded for the three and six months ended June 30, 2021 and 2020 were earned principally from the following licensees (in millions): Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Aimmune $ — $ — $ — $ 9.6 Alexion 5.2 3.8 10.5 7.2 Astellas — 0.7 — 0.9 Genentech 2.3 0.8 2.5 1.5 Gilead — 7.5 — 13.5 Janssen 16.2 — 30.8 — MorphoSys 1.2 — 15.1 12.5 Novartis 41.1 — 41.1 — Vir 1.4 0.3 1.4 0.3 Total $ 67.4 $ 13.1 $ 101.4 $ 45.5 |
Schedule of disaggregation of revenue | The table below summarizes the disaggregation of revenue recorded for the three and six months ended June 30, 2021 and 2020 (in millions): Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Research collaboration $ 58.6 $ 1.5 $ 73.4 $ 2.4 Milestone 1.5 0.3 14.0 12.8 Licensing — 7.5 — 23.1 Royalties 7.3 3.8 14.0 7.2 Total $ 67.4 $ 13.1 $ 101.4 $ 45.5 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Summary of Significant Accounting Policies | ||||
Impairment of intangible assets | $ 0 | $ 0 | $ 0 | $ 0 |
Impairment loss or recoveries | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
Fair Value of Financial Instruments | |||
Money Market Funds | $ 115,842 | $ 163,544 | |
Marketable Securities | 442,595 | ||
Equity Securities with Readily Determinable Fair Value | 45,230 | 5,303 | |
Equity Securities without Readily Determinable Fair Value, Amount | 17,146 | 16,071 | |
Total Fair Value | 576,674 | 615,497 | |
Transfers from level 1 to level 2 | 0 | $ 0 | |
Transfers from level 2 to level 1 | 0 | $ 0 | |
Money Market Funds | |||
Fair Value of Financial Instruments | |||
Money Market Funds | 71,703 | 158,937 | |
Corporate Securities | |||
Fair Value of Financial Instruments | |||
Marketable Securities | 104,957 | 119,833 | |
Government Securities | |||
Fair Value of Financial Instruments | |||
Marketable Securities | 337,638 | 315,353 | |
Level 1 | |||
Fair Value of Financial Instruments | |||
Equity Securities with Readily Determinable Fair Value | 45,230 | 5,303 | |
Total Fair Value | 116,933 | 164,240 | |
Level 1 | Money Market Funds | |||
Fair Value of Financial Instruments | |||
Money Market Funds | 71,703 | 158,937 | |
Level 2 | |||
Fair Value of Financial Instruments | |||
Total Fair Value | 442,595 | 435,186 | |
Level 2 | Corporate Securities | |||
Fair Value of Financial Instruments | |||
Marketable Securities | 104,957 | 119,833 | |
Level 2 | Government Securities | |||
Fair Value of Financial Instruments | |||
Marketable Securities | 337,638 | 315,353 | |
Level 3 | |||
Fair Value of Financial Instruments | |||
Equity Securities without Readily Determinable Fair Value, Amount | 17,146 | 16,071 | |
Total Fair Value | $ 17,146 | $ 16,071 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Level 3 (Details) - Level 3 - Equity Securities $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Fair Value of Financial Instruments | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value, Beginning Balance | $ 16,071 |
Issuance | 12,148 |
Transfer out of Level 3 | (11,073) |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value, Ending Balance | $ 17,146 |
Net Income (Loss) Per Common _3
Net Income (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Numerator: | ||||
Net income (loss) attributable to common stockholders | $ 52,248 | $ (35,018) | $ 49,761 | $ (43,092) |
Denominator: | ||||
Weighted average common shares outstanding, basic | 58,247,941 | 57,059,610 | 58,123,319 | 57,003,162 |
Effect of dilutive securities | 2,087,398 | 2,380,527 | ||
Weighted average common shares outstanding, diluted | 60,335,339 | 57,059,610 | 60,503,846 | 57,003,162 |
Basic net income (loss) (in dollars per share) | $ 0.90 | $ (0.61) | $ 0.86 | $ (0.76) |
Diluted net income (loss) (in dollars per share) | $ 0.87 | $ (0.61) | $ 0.82 | $ (0.76) |
Net Income (Loss) Per Common _4
Net Income (Loss) Per Common Share - Anti-dilutive securities (Details) - shares | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | |
Net Income (Loss) Per Common Share | ||
Securities excluded in calculation of EPS | 1,374,608 | 698,917 |
Marketable Securities (Details)
Marketable Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Schedule of Available-for-sale Securities | ||
Cash and cash equivalents | $ 115,842 | $ 163,544 |
Investments, amortized cost | 514,303 | 594,038 |
Investments | 514,298 | 594,123 |
Total amortized cost | 442,600 | |
Gross unrealized gains | 49 | 94 |
Gross unrealized losses | (54) | (9) |
Marketable Securities | 442,595 | |
Marketable securities | ||
Schedule of Available-for-sale Securities | ||
Marketable Securities | 442,595 | 435,186 |
Money Market Funds | ||
Schedule of Available-for-sale Securities | ||
Cash and cash equivalents | 71,703 | 158,937 |
Corporate Securities | ||
Schedule of Available-for-sale Securities | ||
Total amortized cost | 104,975 | 119,782 |
Gross unrealized gains | 13 | 57 |
Gross unrealized losses | (31) | (6) |
Marketable Securities | 104,957 | 119,833 |
Government Securities | ||
Schedule of Available-for-sale Securities | ||
Total amortized cost | 337,625 | 315,319 |
Gross unrealized gains | 36 | 37 |
Gross unrealized losses | (23) | (3) |
Marketable Securities | 337,638 | 315,353 |
Cash and Cash Equivalents | ||
Schedule of Available-for-sale Securities | ||
Cash and cash equivalents | $ 71,703 | $ 158,937 |
Marketable Securities - Maturit
Marketable Securities - Maturities (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Amortized Cost | |
Maturing in one year or less | $ 288,935 |
Maturing within two years | 153,665 |
Total amortized cost | 442,600 |
Estimate Fair Value | |
Maturing in one year or less | 288,976 |
Maturing within two years | 153,619 |
Total estimated fair value | $ 442,595 |
Marketable Securities - Unreali
Marketable Securities - Unrealized losses (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Fair value | ||
Fair value, less than 12 months | $ 11,721 | $ 56,645 |
Fair value, 12 months or greater | 109,764 | |
Unrealized losses | ||
Unrealized losses, Less than 12 months | (4) | (9) |
Unrealized losses, 12 months or greater | (50) | |
Corporate Securities | ||
Fair value | ||
Fair value, less than 12 months | 11,721 | 15,843 |
Fair value, 12 months or greater | 24,876 | |
Unrealized losses | ||
Unrealized losses, Less than 12 months | (4) | (6) |
Unrealized losses, 12 months or greater | (27) | |
Government Securities | ||
Fair value | ||
Fair value, less than 12 months | 40,802 | |
Fair value, 12 months or greater | 84,888 | |
Unrealized losses | ||
Unrealized losses, Less than 12 months | $ (3) | |
Unrealized losses, 12 months or greater | $ (23) |
Marketable Securities - Equity
Marketable Securities - Equity Securities with Readily Determinable Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Equity Securities | ||
Equity Securities with Readily Determinable Fair Value | $ 45,230 | $ 5,303 |
Common Stock | ||
Equity Securities | ||
Equity Securities with Readily Determinable Fair Value | 45,230 | 5,303 |
Catabasis | Common Stock | ||
Equity Securities | ||
Equity Securities with Readily Determinable Fair Value | 8,102 | |
INmune | Common Stock | ||
Equity Securities | ||
Equity Securities with Readily Determinable Fair Value | 31,231 | |
MiRagen/Viridian | Common Stock | ||
Equity Securities | ||
Equity Securities with Readily Determinable Fair Value | $ 5,897 | $ 5,303 |
Marketable Securities - Equit_2
Marketable Securities - Equity Securities without Readily Determinable Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Equity securities without readily determinable fair value | ||
Equity Securities without Readily Determinable Fair Value | $ 17,146 | $ 16,071 |
Preferred Stock | ||
Equity securities without readily determinable fair value | ||
Equity Securities without Readily Determinable Fair Value | 17,146 | 16,071 |
Preferred Stock | Catabasis | ||
Equity securities without readily determinable fair value | ||
Equity Securities without Readily Determinable Fair Value | 1,075 | |
Preferred Stock | Zenas Bio Pharma Limited | ||
Equity securities without readily determinable fair value | ||
Equity Securities without Readily Determinable Fair Value | $ 16,071 | $ 16,071 |
Marketable Securities - Equit_3
Marketable Securities - Equity Securities Transactions (Details) - shares | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Dec. 31, 2020 | Oct. 31, 2017 | Jun. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2017 | |
Catabasis | Common Stock | |||||||
Equity Securities | |||||||
Shares received in noncash transaction | 259,206 | ||||||
Total common equity shares | 3,839,745 | ||||||
Number of preferred stock converted (in shares) | 3,580,539 | ||||||
Catabasis | Preferred Stock | |||||||
Equity Securities | |||||||
Shares received in noncash transaction | 3,928 | ||||||
Number of preferred stock converted (in shares) | 3,581 | ||||||
INmune | Common Stock | |||||||
Equity Securities | |||||||
Total common equity shares | 1,777,533 | ||||||
Shares issued upon conversion | 192,533 | ||||||
Technology License Agreement | MiRagen/Viridian | |||||||
Equity Securities | |||||||
Shares received in noncash transaction | 322,407 | 322,407 | |||||
License Agreement | INmune | |||||||
Equity Securities | |||||||
Shares received in noncash transaction | 1,585,000 | 1,585,000 | |||||
Additional equity interests (as a percentage) | 10.00% | ||||||
Shares issued upon conversion | 192,533 |
Marketable Securities - Net gai
Marketable Securities - Net gains and losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Marketable Securities | ||||
Net gains (losses) recognized on equity securities | $ 43,020 | $ 358 | $ 56,002 | $ (1,978) |
Less: net gains recognized on sale of equity securities | (18,300) | (18,301) | ||
Unrealized gains (losses) recognized on equity securities | $ 24,720 | $ 358 | $ 37,701 | $ (1,978) |
Stock Based Compensation (Detai
Stock Based Compensation (Details) | Dec. 02, 2013shares | Jun. 30, 2021itemshares | Jun. 30, 2020shares | Jun. 30, 2021shares | Jan. 01, 2021shares |
Employee stock options | |||||
Stock-based compensation | |||||
Options granted (in shares) | 1,488,576 | 1,433,699 | |||
ESPP | |||||
Stock-based compensation | |||||
Total number of shares of common stock available for issuance | 581,286 | 581,286 | |||
Awards issued under the plan (in shares) | 498,147 | ||||
Increase in shares of common stock available for issuance (in shares) | 0 | ||||
ESPP | Maximum | |||||
Stock-based compensation | |||||
Annual percentage increase in shares of common stock available for issuance | 1.00% | ||||
Annual increase in shares of common stock available for issuance (in shares) | 621,814 | ||||
Restricted stock units | |||||
Stock-based compensation | |||||
Awards issued under the plan (in shares) | 720,513 | ||||
Granted | 266,726 | ||||
Annual installment vesting periods | item | 3 | ||||
The 2013 Plan | |||||
Stock-based compensation | |||||
Total number of shares of common stock available for issuance | 13,382,544 | 13,382,544 | 2,314,937 | ||
Annual percentage increase in shares of common stock available for issuance | 4.00% | ||||
Increase in shares of common stock available for issuance (in shares) | 2,314,937 | ||||
Options granted (in shares) | 12,061,415 | ||||
The 2010 Plan | |||||
Stock-based compensation | |||||
Total number of shares of common stock available for issuance | 2,684,456 | 2,684,456 | |||
Options granted (in shares) | 0 |
Stock-Based Compensation - Empl
Stock-Based Compensation - Employee expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Stock-based compensation | ||||
Total employee, director and non-employee stock-based compensation expense | $ 9,350 | $ 8,231 | $ 17,643 | $ 14,743 |
Employee stock options | ||||
Stock-based compensation | ||||
Total employee, director and non-employee stock-based compensation expense | 7,355 | 6,667 | 13,885 | 12,549 |
ESPP | ||||
Stock-based compensation | ||||
Total employee, director and non-employee stock-based compensation expense | 253 | 213 | 501 | 407 |
Restricted stock units | ||||
Stock-based compensation | ||||
Total employee, director and non-employee stock-based compensation expense | 1,742 | 1,351 | 3,257 | 1,787 |
General and administrative | ||||
Stock-based compensation | ||||
Total employee, director and non-employee stock-based compensation expense | 3,193 | 2,804 | 5,930 | 5,095 |
Research and development | ||||
Stock-based compensation | ||||
Total employee, director and non-employee stock-based compensation expense | $ 6,157 | $ 5,427 | $ 11,713 | $ 9,648 |
Stock-Based Compensation - Opti
Stock-Based Compensation - Option activity (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 |
Employee stock options | ||||
Number of Shares subject to outstanding options | ||||
Balance at the beginning of the period (in shares) | 7,751,789 | |||
Options granted (in shares) | 1,488,576 | 1,433,699 | ||
Options forfeited (in shares) | (197,440) | |||
Options exercised (in shares) | (283,491) | |||
Balance at the end of the period (in shares) | 7,751,789 | 8,759,434 | 8,759,434 | |
Exercisable options (in shares) | 5,265,826 | 5,265,826 | ||
Weighted Average Exercise Price (Per Share) | ||||
Balance at the beginning of the period (in dollars per share) | $ 26.23 | |||
Options granted (in dollars per share) | 42.73 | |||
Options forfeited (in dollars per share) | 35.34 | |||
Options exercised (in dollars per share) | 22.02 | |||
Balance at the end of the period (in dollars per share) | $ 26.23 | 28.97 | $ 28.97 | |
Exercisable (in dollars per share) | $ 23.37 | $ 23.37 | ||
Weighted-average remaining contractual life | 7 years | 6 years 11 months 8 days | ||
Weighted-average remaining contractual life of awards exercisable | 5 years 8 months 4 days | |||
Aggregate intrinsic value of options outstanding | $ 134,941 | $ 65,388 | $ 65,388 | |
Aggregate intrinsic value of options exercisable | $ 61,080 | $ 61,080 | ||
Closing price of common stock (in dollars per share) | $ 34.49 | $ 34.49 | ||
Weighted average fair value of options granted (in dollars per share) | $ 22.54 | $ 16.44 | ||
The 2013 Plan | ||||
Number of Shares subject to outstanding options | ||||
Options granted (in shares) | 12,061,415 |
Stock-Based Compensation - FV o
Stock-Based Compensation - FV of employee stock options (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Employee stock options | ||||
Weighted average assumptions for estimated fair value of employee stock options | ||||
Expected volatility (as a percent) | 55.30% | 56.10% | 55.60% | 54.30% |
Risk-free interest rate (as a percent) | 1.03% | 0.41% | 1.02% | 0.84% |
Expected term (years) | 6 years 2 months 12 days | 5 years 8 months 12 days | 6 years 2 months 12 days | 6 years 2 months 12 days |
Compensation expense | ||||
Unamortized compensation expense related to unvested options | $ 65 | $ 65 | ||
Period to recognize unamortized compensation expense | 2 years 9 months 18 days | |||
ESPP | ||||
Weighted average assumptions for estimated fair value of employee stock options | ||||
Expected volatility, low end of range (as a percent) | 46.10% | 46.10% | 50.80% | |
Expected volatility, high end of range (as a percent) | 66.40% | 66.40% | 62.60% | |
Risk-free interest rate, low end of range (as a percent) | 0.04% | 0.18% | 0.04% | 0.18% |
Risk-free interest rate, high end of range (as a percent) | 1.65% | 1.65% | 1.65% | 1.65% |
Compensation expense | ||||
Unamortized compensation expense related to unvested options | $ 0.5 | $ 0.5 | ||
Period to recognize unamortized compensation expense | 4 months 24 days | |||
ESPP | Minimum | ||||
Weighted average assumptions for estimated fair value of employee stock options | ||||
Expected term (years) | 6 months | 6 months | 6 months | 6 months |
ESPP | Maximum | ||||
Weighted average assumptions for estimated fair value of employee stock options | ||||
Expected term (years) | 2 years | 2 years | 2 years | 2 years |
Stock Based Compensation - Rest
Stock Based Compensation - Restricted stock units (Details) - Restricted stock units $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($)$ / sharesshares | |
Stock-based compensation | |
Beginning balance | shares | 358,825 |
Granted | shares | 266,726 |
Vested | shares | (127,998) |
Forfeited | shares | (28,086) |
Ending balance | shares | 469,467 |
Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares | $ 33.04 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 42.85 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 31.71 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 36.16 |
Weighted Average Grant Date Fair Value, Ending Balance | $ / shares | $ 38.79 |
Compensation expense | |
Unamortized compensation expense related to unvested restricted stock units | $ | $ 15,700 |
Period to recognize unamortized compensation expense | 2 years 3 months 18 days |
Leases (Details)
Leases (Details) | Jul. 01, 2022USD ($)ft² | Jun. 30, 2021USD ($)ft²item | Jun. 30, 2021USD ($)ft² | Sep. 30, 2026USD ($)ft² | Nov. 30, 2020 | Jul. 31, 2017 |
Lessee, Lease, Description [Line Items] | ||||||
Option to extend | true | |||||
For the remainder of 2021 | $ 1,117,000 | $ 1,117,000 | ||||
2022 | 2,093,000 | 2,093,000 | ||||
2023 | 707,000 | 707,000 | ||||
2024 | 729,000 | 729,000 | ||||
2025 | 688,000 | 688,000 | ||||
Total undiscounted lease payments | 5,334,000 | 5,334,000 | ||||
Less: Imputed interest | (310,000) | (310,000) | ||||
Present value of lease payments | $ 5,024,000 | $ 5,024,000 | ||||
Monrovia, CA - office and laboratory space | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Area of property | ft² | 7,020 | 7,020 | ||||
Initial base monthly rent | $ 15,000 | $ 15,000 | ||||
Lease term | 18 months | 18 months | ||||
Renewal term | 5 years | |||||
Monrovia, CA - office and laboratory space with additional space | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Renewal term | 5 years | |||||
San Diego, CA - office space | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Renewal term | 5 years | 5 years | ||||
Pasadena, CA - office and laboratory space | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Area of property | ft² | 129,543 | 129,543 | ||||
Phases of lease term | item | 2 | |||||
Forecast | Pasadena, CA - office and laboratory space | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Area of property | ft² | 83,083 | 46,460 | ||||
Improvement allowance | $ 17,032,015 | $ 3,252,000 | ||||
Initial base monthly rent | $ 386,335.95 | |||||
Rent expense per square foot | 4.65 | |||||
Rent increase (as a percentage) | 3.00% | |||||
Lease term | 13 years |
Leases - Operating lease liabil
Leases - Operating lease liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Leases | ||
Lease liability - short-term | $ 2,322 | $ 1,889 |
Lease liability - long-term | 2,702 | $ 9,739 |
Operating lease liabilities | $ 5,024 |
Leases - Lease costs (Details)
Leases - Lease costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Leases | ||||
Operating lease cost | $ 614 | $ 648 | $ 1,228 | $ 1,297 |
Variable lease cost | 18 | 38 | 28 | 59 |
Total lease costs | 632 | 686 | 1,256 | 1,356 |
Cash paid for amounts included in the measurement of lease liabilities | $ 548 | $ 566 | $ 1,047 | $ 1,123 |
Remaining lease term | 3 years 1 month 6 days | 3 years 1 month 6 days | ||
Discount rate | 4.00% | 4.00% |
Collaboration and Licensing A_3
Collaboration and Licensing Agreements (Details) | Feb. 04, 2020USD ($)shares | Mar. 29, 2019USD ($) | Mar. 08, 2019 | Jun. 30, 2021USD ($)shares | Dec. 31, 2020USD ($)shares | Nov. 30, 2020USD ($)item | Jul. 31, 2020USD ($) | Mar. 31, 2020item | Feb. 29, 2020USD ($) | Jan. 31, 2020USD ($)item | Jun. 30, 2019USD ($) | Feb. 28, 2019 | Oct. 31, 2017USD ($)shares | Jan. 31, 2013Program | Jun. 30, 2021USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Jun. 30, 2020USD ($) | Sep. 30, 2019item | Jun. 30, 2021USD ($)item | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)shares | Dec. 31, 2017shares | Mar. 31, 2019USD ($) | May 31, 2018USD ($) |
Collaboration research and licensing agreements | |||||||||||||||||||||||||
Other income | $ (6,000) | $ 134,000 | $ (17,000) | $ 133,000 | |||||||||||||||||||||
Proceeds from sale of equity securities | 18,300,000 | 18,301,000 | |||||||||||||||||||||||
Unrealized gains (losses) recognized on equity securities | 24,720,000 | 358,000 | 37,701,000 | (1,978,000) | |||||||||||||||||||||
Deferred revenue | $ 19,200,000 | 19,200,000 | 44,700,000 | 19,200,000 | 44,700,000 | ||||||||||||||||||||
Receivable | 14,825,000 | $ 11,443,000 | 14,825,000 | $ 11,443,000 | 14,825,000 | $ 11,443,000 | |||||||||||||||||||
Genentech | Collaboration and License Agreement | |||||||||||||||||||||||||
Collaboration research and licensing agreements | |||||||||||||||||||||||||
Revenue recognized | 2,500,000 | 1,500,000 | |||||||||||||||||||||||
License, Development, and Commercialization Agreement | Aimmune | |||||||||||||||||||||||||
Collaboration research and licensing agreements | |||||||||||||||||||||||||
Nonrefundable upfront payment | $ 5,000,000 | ||||||||||||||||||||||||
Revenue recognized | 0 | 0 | 0 | 9,600,000 | |||||||||||||||||||||
Shares received in noncash transaction | shares | 156,238 | ||||||||||||||||||||||||
Purchase amount of share options or equity in noncash transaction | $ 4,600,000 | ||||||||||||||||||||||||
Deferred revenue | 0 | 0 | 0 | ||||||||||||||||||||||
License, Development, and Commercialization Agreement | Aimmune | Maximum | |||||||||||||||||||||||||
Collaboration research and licensing agreements | |||||||||||||||||||||||||
Potential milestone payment | 385,000,000 | ||||||||||||||||||||||||
Option and License Agreement | Alexion | |||||||||||||||||||||||||
Collaboration research and licensing agreements | |||||||||||||||||||||||||
Revenue recognized | 10,500,000 | 7,200,000 | |||||||||||||||||||||||
Deferred revenue | 0 | 0 | 0 | ||||||||||||||||||||||
Receivable | 10,200,000 | 10,200,000 | 10,200,000 | ||||||||||||||||||||||
Number of different target programs | Program | 1 | ||||||||||||||||||||||||
Option and License Agreement | Alexion | Royalty | |||||||||||||||||||||||||
Collaboration research and licensing agreements | |||||||||||||||||||||||||
Revenue recognized | 5,200,000 | 3,800,000 | |||||||||||||||||||||||
Option and License Agreement | Alexion | Milestone | |||||||||||||||||||||||||
Collaboration research and licensing agreements | |||||||||||||||||||||||||
Contract asset | 10,000,000 | 10,000,000 | 10,000,000 | ||||||||||||||||||||||
Research and License Agreement | Amgen, Inc. | |||||||||||||||||||||||||
Collaboration research and licensing agreements | |||||||||||||||||||||||||
Performance obligation | 900,000 | 900,000 | 900,000 | ||||||||||||||||||||||
Revenue recognized | 0 | 0 | 0 | 0 | |||||||||||||||||||||
Deferred revenue | 0 | 0 | 0 | ||||||||||||||||||||||
Research and License Agreement | Astellas | |||||||||||||||||||||||||
Collaboration research and licensing agreements | |||||||||||||||||||||||||
Nonrefundable upfront payment | $ 15,000,000 | ||||||||||||||||||||||||
Potential milestone payment | 240,000,000 | ||||||||||||||||||||||||
Revenue recognized | 0 | 700,000 | 0 | 900,000 | |||||||||||||||||||||
Deferred revenue | 0 | 0 | 0 | ||||||||||||||||||||||
Research and License Agreement | Astellas | Bispecific | |||||||||||||||||||||||||
Collaboration research and licensing agreements | |||||||||||||||||||||||||
Revenue recognized | $ 13,600,000 | ||||||||||||||||||||||||
Research and License Agreement | Astellas | Research service | |||||||||||||||||||||||||
Collaboration research and licensing agreements | |||||||||||||||||||||||||
Performance obligation | 1,400,000 | ||||||||||||||||||||||||
Research and License Agreement | Astellas | Milestone | |||||||||||||||||||||||||
Collaboration research and licensing agreements | |||||||||||||||||||||||||
Contract asset | 2,500,000 | 2,500,000 | 2,500,000 | ||||||||||||||||||||||
Research and License Agreement | Novartis | |||||||||||||||||||||||||
Collaboration research and licensing agreements | |||||||||||||||||||||||||
Revenue recognized | 1,000,000 | $ 1,000,000 | |||||||||||||||||||||||
Collaboration and License Agreement | Genentech | |||||||||||||||||||||||||
Collaboration research and licensing agreements | |||||||||||||||||||||||||
Initial cost-sharing percentage | 45.00% | ||||||||||||||||||||||||
Research license term | 2 years | ||||||||||||||||||||||||
Revenue recognized | 2,300,000 | 800,000 | |||||||||||||||||||||||
Collaboration and License Agreement | Genentech | XmAb24306 | |||||||||||||||||||||||||
Collaboration research and licensing agreements | |||||||||||||||||||||||||
Cost sharing receivable (payable) | (2,300,000) | (2,300,000) | (2,300,000) | ||||||||||||||||||||||
Collaboration and License Agreement | Genentech | Research service | |||||||||||||||||||||||||
Collaboration research and licensing agreements | |||||||||||||||||||||||||
Performance obligation | $ 8,300,000 | ||||||||||||||||||||||||
Deferred revenue | 0 | 0 | 0 | ||||||||||||||||||||||
Collaboration and License Agreement | Genentech | Licensing | |||||||||||||||||||||||||
Collaboration research and licensing agreements | |||||||||||||||||||||||||
Performance obligation | $ 111,700,000 | ||||||||||||||||||||||||
Collaboration and License Agreement | Janssen Biotech, Inc | |||||||||||||||||||||||||
Collaboration research and licensing agreements | |||||||||||||||||||||||||
Performance obligation | $ 50,000,000 | ||||||||||||||||||||||||
Nonrefundable upfront payment | 50,000,000 | ||||||||||||||||||||||||
Potential milestone payment | 662,500,000 | ||||||||||||||||||||||||
Revenue recognized | 16,200,000 | 30,800,000 | |||||||||||||||||||||||
Deferred revenue | 19,200,000 | 19,200,000 | 19,200,000 | ||||||||||||||||||||||
Collaboration and License Agreement | MorphoSys | |||||||||||||||||||||||||
Collaboration research and licensing agreements | |||||||||||||||||||||||||
Revenue recognized | $ 25,000,000 | ||||||||||||||||||||||||
Contract asset | $ 12,500,000 | ||||||||||||||||||||||||
Deferred revenue | 0 | 0 | 0 | ||||||||||||||||||||||
Collaboration and License Agreement | MorphoSys | Royalty | |||||||||||||||||||||||||
Collaboration research and licensing agreements | |||||||||||||||||||||||||
Revenue recognized | 1,200,000 | 2,600,000 | |||||||||||||||||||||||
Receivable | 1,500,000 | 1,500,000 | 1,500,000 | ||||||||||||||||||||||
Collaboration and License Agreement | MorphoSys | Milestone | |||||||||||||||||||||||||
Collaboration research and licensing agreements | |||||||||||||||||||||||||
Revenue recognized | $ 12,500,000 | 12,500,000 | 12,500,000 | ||||||||||||||||||||||
Collaboration and License Agreement | Novartis | |||||||||||||||||||||||||
Collaboration research and licensing agreements | |||||||||||||||||||||||||
Revenue recognized | 0 | 40,100,000 | 0 | ||||||||||||||||||||||
Deferred revenue | 0 | 0 | $ 0 | ||||||||||||||||||||||
Number of antibody targets for which bispecific technology applied | item | 4 | ||||||||||||||||||||||||
Number of targets against which non-exclusive license is provided | item | 10 | ||||||||||||||||||||||||
Collaboration and License Agreement | Novartis | Milestone | |||||||||||||||||||||||||
Collaboration research and licensing agreements | |||||||||||||||||||||||||
Revenue recognized | 1,000,000 | $ 1,000,000 | |||||||||||||||||||||||
Cost sharing receivable (payable) | 1,000,000 | 1,000,000 | 1,000,000 | ||||||||||||||||||||||
Collaboration and License Agreement | Novartis | Development | |||||||||||||||||||||||||
Collaboration research and licensing agreements | |||||||||||||||||||||||||
Cost sharing receivable (payable) | 800,000 | 800,000 | 800,000 | ||||||||||||||||||||||
Technology License Agreement | Quellis | Maximum | |||||||||||||||||||||||||
Collaboration research and licensing agreements | |||||||||||||||||||||||||
Potential milestone payment | $ 66,000,000 | ||||||||||||||||||||||||
Technology License Agreement | Catabasis | |||||||||||||||||||||||||
Collaboration research and licensing agreements | |||||||||||||||||||||||||
Unrealized gains (losses) recognized on equity securities | (3,700,000) | 9,200,000 | |||||||||||||||||||||||
Deferred revenue | 0 | 0 | 0 | ||||||||||||||||||||||
Technology License Agreement | Gilead | |||||||||||||||||||||||||
Collaboration research and licensing agreements | |||||||||||||||||||||||||
Nonrefundable upfront payment | $ 6,000,000 | ||||||||||||||||||||||||
Potential milestone payment | $ 67,000,000 | ||||||||||||||||||||||||
Revenue recognized | 0 | 7,500,000 | 0 | 13,500,000 | |||||||||||||||||||||
Deferred revenue | 0 | 0 | 0 | ||||||||||||||||||||||
Number of compounds | item | 3 | ||||||||||||||||||||||||
Technology License Agreement | MiRagen/Viridian | |||||||||||||||||||||||||
Collaboration research and licensing agreements | |||||||||||||||||||||||||
Potential milestone payment | $ 55,000,000 | 55,000,000 | 55,000,000 | ||||||||||||||||||||||
Revenue recognized | 0 | $ 6,000,000 | |||||||||||||||||||||||
Shares received in noncash transaction | shares | 322,407 | 322,407 | |||||||||||||||||||||||
Purchase amount of share options or equity in noncash transaction | $ 6,000,000 | ||||||||||||||||||||||||
Unrealized gains (losses) recognized on equity securities | 500,000 | 600,000 | |||||||||||||||||||||||
Deferred revenue | 0 | 0 | 0 | ||||||||||||||||||||||
License Agreement | INmune | |||||||||||||||||||||||||
Collaboration research and licensing agreements | |||||||||||||||||||||||||
Shares received in noncash transaction | shares | 1,585,000 | 1,585,000 | |||||||||||||||||||||||
Purchase amount of share options or equity in noncash transaction | $ 10,000,000 | ||||||||||||||||||||||||
Consideration on sale of option | 18,300,000 | ||||||||||||||||||||||||
Cash consideration on sale of option | 15,000,000 | ||||||||||||||||||||||||
Shares issues on sale of option value | $ 3,300,000 | ||||||||||||||||||||||||
Shares issued upon conversion | shares | 192,533 | ||||||||||||||||||||||||
Proceeds from sale of equity securities | $ 18,300,000 | 18,300,000 | |||||||||||||||||||||||
Unrealized gains (losses) recognized on equity securities | 27,900,000 | ||||||||||||||||||||||||
Additional equity interests (as a percentage) | 10.00% | ||||||||||||||||||||||||
Option term | 6 years | ||||||||||||||||||||||||
License Agreement | INmune | Maximum | |||||||||||||||||||||||||
Collaboration research and licensing agreements | |||||||||||||||||||||||||
Additional equity interests (as a percentage) | 10.00% | ||||||||||||||||||||||||
License Agreement | INmune | Other Income | |||||||||||||||||||||||||
Collaboration research and licensing agreements | |||||||||||||||||||||||||
Unrealized gains (losses) recognized on equity securities | 27,800,000 | 27,800,000 | |||||||||||||||||||||||
License Agreement | Zenas Bio Pharma Limited | |||||||||||||||||||||||||
Collaboration research and licensing agreements | |||||||||||||||||||||||||
Performance obligation | 16,100,000 | ||||||||||||||||||||||||
Revenue recognized | 0 | 0 | |||||||||||||||||||||||
Purchase amount of share options or equity in noncash transaction | $ 16,100,000 | ||||||||||||||||||||||||
Deferred revenue | 0 | 0 | 0 | ||||||||||||||||||||||
Percentage of equity of private company | 15.00% | ||||||||||||||||||||||||
Number of drug candidates | item | 3 | ||||||||||||||||||||||||
License Agreement | Zenas Bio Pharma Limited | Licensing | |||||||||||||||||||||||||
Collaboration research and licensing agreements | |||||||||||||||||||||||||
Revenue recognized | 16,100,000 | ||||||||||||||||||||||||
Patent License Agreement | Vir | |||||||||||||||||||||||||
Collaboration research and licensing agreements | |||||||||||||||||||||||||
Revenue recognized | $ 300,000 | $ 300,000 | |||||||||||||||||||||||
Contract asset | 500,000 | 500,000 | 500,000 | ||||||||||||||||||||||
Deferred revenue | $ 0 | 0 | 0 | ||||||||||||||||||||||
Number of different target programs | item | 2 | 2 | |||||||||||||||||||||||
Patent License Agreement | Vir | Royalty | |||||||||||||||||||||||||
Collaboration research and licensing agreements | |||||||||||||||||||||||||
Revenue recognized | $ 900,000 | ||||||||||||||||||||||||
Patent License Agreement | Vir | Milestone | |||||||||||||||||||||||||
Collaboration research and licensing agreements | |||||||||||||||||||||||||
Revenue recognized | $ 500,000 | ||||||||||||||||||||||||
Development-based | License, Development, and Commercialization Agreement | Aimmune | |||||||||||||||||||||||||
Collaboration research and licensing agreements | |||||||||||||||||||||||||
Potential milestone payment | 22,000,000 | ||||||||||||||||||||||||
Development-based | Research and License Agreement | Astellas | |||||||||||||||||||||||||
Collaboration research and licensing agreements | |||||||||||||||||||||||||
Potential milestone payment | 32,500,000 | ||||||||||||||||||||||||
Development-based | Collaboration and License Agreement | Janssen Biotech, Inc | |||||||||||||||||||||||||
Collaboration research and licensing agreements | |||||||||||||||||||||||||
Potential milestone payment | $ 161,900,000 | ||||||||||||||||||||||||
Development-based | Technology License Agreement | Quellis | |||||||||||||||||||||||||
Collaboration research and licensing agreements | |||||||||||||||||||||||||
Potential milestone payment | 6,000,000 | ||||||||||||||||||||||||
Development-based | Technology License Agreement | Gilead | |||||||||||||||||||||||||
Collaboration research and licensing agreements | |||||||||||||||||||||||||
Potential milestone payment | $ 10,000,000 | ||||||||||||||||||||||||
Development-based | Technology License Agreement | MiRagen/Viridian | |||||||||||||||||||||||||
Collaboration research and licensing agreements | |||||||||||||||||||||||||
Potential milestone payment | 10,000,000 | 10,000,000 | $ 10,000,000 | ||||||||||||||||||||||
Regulatory-based | License, Development, and Commercialization Agreement | Aimmune | |||||||||||||||||||||||||
Collaboration research and licensing agreements | |||||||||||||||||||||||||
Potential milestone payment | 53,000,000 | ||||||||||||||||||||||||
Regulatory-based | Research and License Agreement | Astellas | |||||||||||||||||||||||||
Collaboration research and licensing agreements | |||||||||||||||||||||||||
Potential milestone payment | 57,500,000 | ||||||||||||||||||||||||
Regulatory-based | Collaboration and License Agreement | Janssen Biotech, Inc | |||||||||||||||||||||||||
Collaboration research and licensing agreements | |||||||||||||||||||||||||
Potential milestone payment | 240,600,000 | ||||||||||||||||||||||||
Regulatory-based | Technology License Agreement | Quellis | |||||||||||||||||||||||||
Collaboration research and licensing agreements | |||||||||||||||||||||||||
Potential milestone payment | 30,000,000 | ||||||||||||||||||||||||
Regulatory-based | Technology License Agreement | Gilead | |||||||||||||||||||||||||
Collaboration research and licensing agreements | |||||||||||||||||||||||||
Potential milestone payment | 27,000,000 | ||||||||||||||||||||||||
Regulatory-based | Technology License Agreement | MiRagen/Viridian | |||||||||||||||||||||||||
Collaboration research and licensing agreements | |||||||||||||||||||||||||
Potential milestone payment | 20,000,000 | 20,000,000 | 20,000,000 | ||||||||||||||||||||||
Sales-based | License, Development, and Commercialization Agreement | Aimmune | |||||||||||||||||||||||||
Collaboration research and licensing agreements | |||||||||||||||||||||||||
Potential milestone payment | $ 310,000,000 | ||||||||||||||||||||||||
Sales-based | Research and License Agreement | Astellas | |||||||||||||||||||||||||
Collaboration research and licensing agreements | |||||||||||||||||||||||||
Potential milestone payment | $ 150,000,000 | ||||||||||||||||||||||||
Sales-based | Collaboration and License Agreement | Janssen Biotech, Inc | |||||||||||||||||||||||||
Collaboration research and licensing agreements | |||||||||||||||||||||||||
Potential milestone payment | $ 260,000,000 | ||||||||||||||||||||||||
Sales-based | Technology License Agreement | Quellis | |||||||||||||||||||||||||
Collaboration research and licensing agreements | |||||||||||||||||||||||||
Potential milestone payment | $ 30,000,000 | ||||||||||||||||||||||||
Sales-based | Technology License Agreement | Gilead | |||||||||||||||||||||||||
Collaboration research and licensing agreements | |||||||||||||||||||||||||
Potential milestone payment | $ 30,000,000 | ||||||||||||||||||||||||
Sales-based | Technology License Agreement | MiRagen/Viridian | |||||||||||||||||||||||||
Collaboration research and licensing agreements | |||||||||||||||||||||||||
Potential milestone payment | $ 25,000,000 | $ 25,000,000 | $ 25,000,000 |
Collaborative and Licensing Agr
Collaborative and Licensing Agreements - Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Revenue recorded | $ 67,447 | $ 13,089 | $ 101,412 | $ 45,474 |
Deferred revenue | 19,200 | 44,700 | 19,200 | 44,700 |
Research collaboration | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Revenue recorded | 58,600 | 1,500 | 73,400 | 2,400 |
Milestone | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Revenue recorded | 1,500 | 300 | 14,000 | 12,800 |
Licensing | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Revenue recorded | 7,500 | 23,100 | ||
Royalty | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Revenue recorded | 7,300 | 3,800 | 14,000 | 7,200 |
Aimmune | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Revenue recorded | 9,600 | |||
Alexion | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Revenue recorded | 5,200 | 3,800 | 10,500 | 7,200 |
Astellas | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Revenue recorded | 700 | 900 | ||
Genentech | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Revenue recorded | 2,300 | 800 | 2,500 | 1,500 |
Gilead | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Revenue recorded | 7,500 | 13,500 | ||
Janssen | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Revenue recorded | 16,200 | 30,800 | ||
MorphoSys | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Revenue recorded | 1,200 | 15,100 | 12,500 | |
Novartis | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Revenue recorded | 41,100 | 41,100 | ||
Vir | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Revenue recorded | $ 1,400 | $ 300 | $ 1,400 | $ 300 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Reconciliation of federal statutory income tax to effective income tax | ||||
Income tax expense | $ 0 | $ 0 | $ 0 | $ 0 |