Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 15, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,624,180,194 | ||
Entity Common Stock, Shares Outstanding | 60,030,076 | ||
Documents Incorporated by Reference | Portions of the registrant’s proxy statement to be filed with the Securities and Exchange Commission pursuant to Regulation 14A in connection with the registrant’s 2021 Annual Meeting of Stockholders, which will be filed subsequent to the date hereof, are incorporated by reference into Part III of this Form 10-K. Such proxy statement will be filed with the Securities and Exchange Commission not later than 120 days following the end of the registrant’s fiscal year ended December 31, 2022. | ||
Entity Central Index Key | 0001326732 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Firm ID | 49 |
Auditor Name | RSM US LLP |
Auditor Location | Los Angeles, California |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 53,942 | $ 143,480 |
Marketable debt securities | 526,689 | 153,767 |
Marketable equity securities | 42,431 | 36,860 |
Accounts receivable | 28,997 | 66,384 |
Prepaid expenses and other current assets | 23,283 | 23,877 |
Total current assets | 675,342 | 424,368 |
Property and equipment, net | 59,183 | 28,240 |
Patents, licenses, and other intangible assets, net | 18,500 | 16,493 |
Marketable debt securities - long term | 3,826 | 300,465 |
Equity securities | 54,383 | 31,262 |
Notes receivable - long term | 0 | 5,000 |
Right of use asset | 34,419 | 31,730 |
Other assets | 613 | 653 |
Total assets | 846,266 | 838,211 |
Current liabilities | ||
Accounts payable | 10,088 | 14,001 |
Accrued expenses | 18,728 | 19,443 |
Lease liabilities | 4,708 | 0 |
Deferred revenue | 30,320 | 37,294 |
Total current liabilities | 63,844 | 70,738 |
Lease liabilities, net of current portion | 54,926 | 33,969 |
Total liabilities | 118,770 | 104,707 |
Commitments and contingencies (see note 9) | ||
Stockholders’ equity | ||
Preferred stock, $0.01 par value: 10,000,000 authorized shares; -0- issued and outstanding shares at December 31, 2022 and 2021 | 0 | 0 |
Common stock, $0.01 par value: 200,000,000 authorized shares; 59,997,713 issued and outstanding shares at December 31, 2022 and 59,355,558 issued and outstanding at December 31, 2021 | 601 | 595 |
Additional paid-in capital | 1,072,132 | 1,017,523 |
Accumulated other comprehensive income | (6,952) | (1,510) |
Accumulated deficit | (338,285) | (283,104) |
Total stockholders’ equity | 727,496 | 733,504 |
Total liabilities and stockholders’ equity | $ 846,266 | $ 838,211 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred Stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 59,997,713 | 59,355,558 |
Common stock, shares outstanding (in shares) | 59,997,713 | 59,355,558 |
Statements of Comprehensive Inc
Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue | |||
Collaborations, licenses, milestones, and royalties | $ 164,579 | $ 275,111 | $ 122,694 |
Operating expenses | |||
Research and development | 199,563 | 192,507 | 169,802 |
General and administrative | 47,489 | 38,837 | 29,689 |
Total operating expenses | 247,052 | 231,344 | 199,491 |
Income (loss) from operations | (82,473) | 43,767 | (76,797) |
Other income (expense) | |||
Interest income, net | 4,817 | 849 | 7,264 |
Other income (expense), net | (286) | (1,274) | 95 |
Gain on equity securities, net | 23,434 | 39,289 | 105 |
Total other income, net | 27,965 | 38,864 | 7,464 |
Income (loss) before income tax | (54,508) | 82,631 | (69,333) |
Income tax expense | 673 | 0 | 0 |
Net income (loss) | (55,181) | 82,631 | (69,333) |
Other comprehensive income (loss) | |||
Net unrealized loss on marketable securities available-for-sale | (5,442) | (1,584) | (1,087) |
Comprehensive income (loss) | $ (60,623) | $ 81,047 | $ (70,420) |
Net income (loss) per share attributable to common stockholders: | |||
Basic (in dollars per share) | $ (0.93) | $ 1.42 | $ (1.21) |
Diluted (in dollars per share) | $ (0.93) | $ 1.37 | $ (1.21) |
Weighted average shares used to compute net income (loss) per share attributable to common stockholders: | |||
Basic (in shares) | 59,652,461 | 58,379,641 | 57,212,737 |
Diluted (in shares) | 59,652,461 | 60,495,455 | 57,212,737 |
Statements of Stockholders' Equ
Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid in-Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Beginning balance (in shares) at Dec. 31, 2019 | 56,902,301 | ||||
Beginning balance at Dec. 31, 2019 | $ 593,201 | $ 569 | $ 887,873 | $ 1,161 | $ (296,402) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock awards (in shares) | 858,470 | ||||
Issuance of common stock upon exercise of stock awards | 16,617 | $ 9 | 16,608 | ||
Issuance of common stock under the Employee Stock Purchase Plan (in shares) | 50,318 | ||||
Issuance of common stock under the Employee Stock Purchase Plan | 1,427 | $ 1 | 1,426 | ||
Issuance of restricted stock units (in shares) | 62,355 | ||||
Issuance of restricted stock units | 0 | $ 1 | (1) | ||
Comprehensive income (loss) | (70,420) | (1,087) | (69,333) | ||
Stock-based compensation | 31,619 | 31,619 | |||
Ending balance (in shares) at Dec. 31, 2020 | 57,873,444 | ||||
Ending balance at Dec. 31, 2020 | 572,444 | $ 580 | 937,525 | 74 | (365,735) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Sale of common stock (in shares) | 748,062 | ||||
Sale of common stock | 28,920 | $ 7 | 28,913 | ||
Issuance of common stock upon exercise of stock awards (in shares) | 520,240 | ||||
Issuance of common stock upon exercise of stock awards | 12,281 | $ 5 | 12,276 | ||
Issuance of common stock under the Employee Stock Purchase Plan (in shares) | 62,257 | ||||
Issuance of common stock under the Employee Stock Purchase Plan | 1,837 | $ 1 | 1,836 | ||
Issuance of restricted stock units (in shares) | 151,555 | ||||
Issuance of restricted stock units | 0 | $ 2 | (2) | ||
Comprehensive income (loss) | 81,047 | (1,584) | 82,631 | ||
Stock-based compensation | 36,975 | 36,975 | |||
Ending balance (in shares) at Dec. 31, 2021 | 59,355,558 | ||||
Ending balance at Dec. 31, 2021 | 733,504 | $ 595 | 1,017,523 | (1,510) | (283,104) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock awards (in shares) | 195,485 | ||||
Issuance of common stock upon exercise of stock awards | 3,610 | $ 2 | 3,608 | ||
Issuance of common stock under the Employee Stock Purchase Plan (in shares) | 105,597 | ||||
Issuance of common stock under the Employee Stock Purchase Plan | 2,092 | $ 1 | 2,091 | ||
Issuance of restricted stock units (in shares) | 341,073 | ||||
Issuance of restricted stock units | 0 | $ 3 | (3) | ||
Comprehensive income (loss) | (60,623) | (5,442) | (55,181) | ||
Stock-based compensation | 48,913 | 48,913 | |||
Ending balance (in shares) at Dec. 31, 2022 | 59,997,713 | ||||
Ending balance at Dec. 31, 2022 | $ 727,496 | $ 601 | $ 1,072,132 | $ (6,952) | $ (338,285) |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities | |||
Net income (loss) | $ (55,181) | $ 82,631 | $ (69,333) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 8,799 | 7,491 | 5,794 |
Amortization of premium (accretion of discount) on marketable securities | 127 | 3,160 | (272) |
Stock-based compensation | 48,913 | 36,975 | 31,619 |
Abandonment of capitalized intangible assets | 1,510 | 934 | 535 |
Loss on disposal of assets | 145 | 462 | 4 |
Gain on sale of marketable securities available-for-sale | 0 | 0 | (153) |
Equity received in connection with license agreement | (5,397) | (22,379) | (26,660) |
Equity received in connection with sale of financial assets | 0 | (3,300) | 0 |
Cash redemption of equity received in connection with license agreement | 0 | 0 | 5,390 |
Change in fair value of equity securities | (23,434) | (20,988) | (105) |
Equity securities impairment | 138 | 762 | 0 |
Changes in operating assets and liabilities: | |||
Accounts receivable and contract assets | 37,387 | (54,941) | 10,131 |
Interest receivable from marketable debt securities | (530) | 655 | 1,190 |
Prepaid expenses and other assets | 634 | (13,151) | (4,170) |
Income tax | 0 | 0 | 895 |
Contract asset and deposits | 0 | 12,059 | (12,401) |
Accounts payable | (3,913) | 5,047 | (1,235) |
Accrued expenses | (715) | 1,840 | 8,608 |
Lease liabilities and ROU assets | 22,976 | 1,211 | (325) |
Deferred revenue | (6,974) | (55,321) | 45,484 |
Net cash provided by (used in) operating activities | 24,485 | (16,853) | (5,004) |
Cash flows from investing activities | |||
Proceeds from sale and maturities of marketable securities available-for-sale | 306,607 | 485,152 | 757,617 |
Proceeds from sale of property and equipment | 0 | 19 | 1 |
Purchase of marketable securities | (387,928) | (509,597) | (643,658) |
Purchase of intangible assets | (4,910) | (2,682) | (3,229) |
Purchase of property and equipment | (38,494) | (13,299) | (10,539) |
Conversion (purchase) of convertible note | 5,000 | (5,000) | 0 |
Exercise of stock options | 0 | (842) | 0 |
Net cash provided by (used in) investing activities | (119,725) | (46,249) | 100,192 |
Cash flows from financing activities | |||
Proceeds from issuance of common stock upon exercise of stock awards | 3,610 | 12,281 | 16,617 |
Proceeds from issuance of common stock from Employee Stock Purchase Plan | 2,092 | 1,837 | 1,427 |
Proceeds from issuance of common stock | 0 | 28,920 | 0 |
Net cash provided by financing activities | 5,702 | 43,038 | 18,044 |
Net (decrease) increase in cash and cash equivalents | (89,538) | (20,064) | 113,232 |
Cash and cash equivalents, beginning of year | 143,480 | 163,544 | 50,312 |
Cash and cash equivalents, end of year | 53,942 | 143,480 | 163,544 |
Cash paid for: | |||
Interest | 13 | 14 | 15 |
Taxes | 700 | 0 | 0 |
Supplemental Schedule of Noncash Activities | |||
Net unrealized gain (loss) on marketable securities available-for-sale | (5,442) | (1,584) | (1,087) |
Addition of right-of-use asset | $ 6,155 | $ 24,047 | $ 3,127 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Description of Business Xencor, Inc. (we, us, our, or the Company) was incorporated in California in 1997 and reincorporated in Delaware in September 2004. We are a clinical-stage biopharmaceutical company focused on discovering and developing engineered monoclonal bispecific antibody and cytokine therapeutics to treat patients with cancer and autoimmune diseases who have unmet medical needs. We create our product candidates using our proprietary XmAb technology platforms, which focus on the portion of an antibody that interacts with multiple segments of the immune system, referred to as the Fc domain, which is constant and interchangeable among antibodies. Our engineered Fc domains, the XmAb technology, can increase antibody immune inhibition, improve cytotoxicity, extend half-life and most recently are used to create bispecific antibodies and cytokines. Our operations are based in Monrovia, California and San Diego, California. Basis of Presentation The Company’s financial statements as of December 31, 2022, 2021, and 2020 and for the years then ended have been prepared in accordance with accounting principles generally accepted in the United States (U.S.). Use of Estimates The preparation of 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, evaluation of intangible assets, investments, leases and other assets for evidence of impairment, fair value measurements, and contingencies. Significant estimates in these financial statements include estimates made for royalty revenue, accrued research and development expenses, stock-based compensation expenses, intangible assets, incremental borrowing rate for right-of-use asset and lease liability, 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. Recent Accounting Pronouncements Pronouncements Not yet Effective In June 2022, the Financial Accounting Standards Board (FASB) issued ASU No. 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restriction s, which is effective for fiscal years beginning on and after December 15, 2023, and interim periods within those fiscal years. The standard clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and is not considered in measuring fair value. The Company does not anticipate that the standard will have a significant impact on its financial statements. Revenue Recognition We have, to date, earned revenue from research and development collaborations, which may include research and development services, licenses of our internally developed technologies, licenses of our internally developed drug candidates, or combinations of these. The terms of our license, research and development, and collaboration agreements generally include non-refundable upfront payments, research funding, co-development payments and reimbursements, license fees, and milestone and other contingent payments to us for the achievement of defined collaboration objectives and certain clinical, regulatory and sales-based events, as well as royalties on sales of any commercialized products. The terms of our licensing agreements include non-refundable upfront fees, annual licensing fees, and contractual payment obligations for the achievement of pre-defined preclinical, clinical, regulatory and sales-based events by our partners. The licensing agreements also include royalties on sales of any commercialized products by our partners. We recognize revenue through the five-step process in accordance with Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers , when control of the promised goods or services is transferred to our customers in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Deferred Revenue Deferred revenue arises from payments received in advance of the culmination of the earnings process. We have classified deferred revenue for which we stand ready to perform within the next 12 months as a current liability. We recognize deferred revenue as revenue in future periods when the applicable revenue recognition criteria have been met. The total amounts reported as deferred revenue were $30.3 million and $37.3 million at December 31, 2022 and 2021, respectively. Accounts Receivable Accounts receivable primarily consists of royalty and milestone revenues receivable from our license and collaboration agreements, as well as receivables arising from cost-sharing development activities. We did not record an allowance for doubtful accounts at December 31, 2022 or 2021, as we expect to collect all receivables within the terms, which are generally between 30 and 60 days. Research and Development Expenses Research and development expenses include costs we incur for our own and for our collaborators’ research and development activities. Research and development costs are expensed as incurred. These costs consist primarily of salaries and benefits, including associated stock-based compensation, laboratory supplies, facility costs, and applicable overhead expenses of personnel directly involved in the research and development of new technology and products, as well as fees paid to other entities that conduct certain research and development activities on our behalf. We estimate preclinical study and clinical trial expenses based on the services performed pursuant to the contracts with research institutions and clinical research organizations that conduct and manage preclinical studies and clinical trials on our behalf based on the actual time and expenses they incurred. Further, we accrue expenses related to clinical trials based on the level of patient enrollment and activity according to the related agreement. We monitor patient enrollment levels and related activity to the extent reasonably possible and adjust estimates accordingly. We capitalize acquired research and development technology licenses and third-party contract rights where such assets have an alternative use and amortize the costs over the shorter of the license term or the expected useful life. We review the license arrangements and the amortization period on a regular basis and adjust the carrying value or the amortization period of the licensed rights if there is evidence of a change in the carrying value or useful life of the asset. Cash and Cash Equivalents We consider cash equivalents to be only those investments which are highly liquid, readily convertible to cash and which mature within three months from the date of purchase. Marketable Debt 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 and does not intend to sell these securities, and it is not more likely than not the Company will be required to sell the securities before recovery of the amortized cost basis. 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 years ended in December 31, 2022 and 2021, respectively. Accrued interest on marketable debt securities is included in marketable securities’ carrying value. Accrued interest was $1.3 million and $0.8 million at December 31, 2022 and 2021, respectively. 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. During the years ended December 31, 2022 and 2021, the Company recorded an unrealized loss of $5.4 million and $1.6 million, respectively, in its portfolio of marketable debt securities. The unrealized losses were due to the changing interest rate environment and are not due to changes in the credit quality of the underlying securities. The unrealized losses were recorded in other comprehensive income (loss) for the years then ended. The Company receives equity securities in connection with certain licensing transactions with its partners. These investments in an equity security 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 remeasures 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 gains or losses on the sale of the securities will be recognized within other income (expense) in the Statement of Comprehensive Income (Loss) in the period of sale. The Company also has investments in equity securities without a readily determinable fair value, where the Company elects the measurement alternative to record at their 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. During the years ended December 31, 2022 and 2021, the Company recorded an impairment charge of $0.1 million and $0.8 million, respectively, in connection with equity securities without a readily determinable fair value. During the years ended December 31, 2022 and 2021, the Company recorded a net gain of $23.4 million and $39.3 million, respectively, in connection with its equity investments. Concentrations of Risk Cash, cash equivalents, and marketable debt securities are financial instruments that potentially subject the Company to concentrations of risk. We invest our cash in corporate debt securities and U.S. sponsored agencies with strong credit ratings. We have established guidelines relative to diversification and maturities that are designed to help ensure safety and liquidity. These guidelines are periodically reviewed to take advantage of trends in yields and interest rates. Cash and cash equivalents are maintained at financial institutions, and at times, balances may exceed federally insured limits. We have never experienced any losses related to these balances. Amounts on deposit in excess of federally insured limits at December 31, 2022 and 2021 approximated $53.6 million and $143.2 million, respectively. We have payables with two service providers that represent 45% of our total payables and with four service providers that represented 64% of our total payables at December 31, 2022 and 2021, respectively. We rely on five critical suppliers for the manufacture of our drug product for use in our clinical trials. While we believe that there are alternative vendors available, a change in manufacturing vendors could cause a delay in the availability of drug product and result in a delay of conducting and completing our clinical trials. No other vendor accounted for more than 10% of total payables at December 31, 2022 or 2021. We have receivables with four service providers that represent 91% of our total receivables and with two service providers that represent 84% of our total receivables at December 31, 2022 and 2021, respectively. The receivables are related to royalty revenues from our licensing and collaboration agreements. No other customer accounted for more than 10% of total receivables at December 31, 2022 or 2021. Fair Value of Financial Instruments Our financial instruments primarily consist of cash and cash equivalents, marketable debt securities, accounts receivable, accounts payable, and accrued expenses. Marketable debt securities and cash equivalents are carried at fair value. The fair value of a financial instrument is the amount that would be received in an asset sale or paid to transfer a liability in an orderly transaction between unaffiliated market participants. The fair value of the other financial instruments closely approximate their fair value due to their short maturities. The Company accounts for recurring and non-recurring fair value measurements in accordance with FASB ASC 820, Fair Value Measurements and Disclosures . ASC 820 defines fair value, establishes a fair value hierarchy for assets and liabilities measured at fair value, and requires expanded disclosure about fair value measurements. The ASC 820 hierarchy ranks the quality of reliable inputs, or assumptions, used in the determination of fair value and requires assets and liabilities carried at fair value to be classified and disclosed in one of the following three categories: Level 1— Fair value is determined by using unadjusted quoted prices that are available in active markets for identical assets or liabilities. Level 2— Fair value is determined by using inputs other than Level 1 quoted prices that are directly or indirectly observable. Inputs can include quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in markets that are not active. Related inputs can also include those used in valuation or other pricing models, such as interest rates and yield curves that can be corroborated by observable market data. Level 3— Fair value is determined by inputs that are unobservable and not corroborated by market data. Use of these inputs involves significant and subjective judgments to be made by the reporting entity – e.g. determining an appropriate discount factor for illiquidity associated with a given security. 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): December 31, 2022 Total Level 1 Level 2 Level 3 Money Market Funds in Cash and Cash Equivalents $ 40,967 $ 40,967 $ — $ — Corporate Securities 200,626 — 200,626 — Government Securities 329,889 — 329,889 — $ 571,482 $ 40,967 $ 530,515 $ — December 31, 2021 Total Level 1 Level 2 Level 3 Money Market Funds in Cash and Cash Equivalents $ 123,892 $ 123,892 $ — $ — Corporate Securities 144,418 — 144,418 — Government Securities 309,814 — 309,814 — $ 578,124 $ 123,892 $ 454,232 $ — 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 years ended December 31, 2022 and 2021, there were no transfers between Level 1 and Level 2. Property and Equipment Property and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets. Expenditures for repairs and maintenance are charged to expense as incurred, while renewals and improvements are capitalized. Useful lives by asset category are as follows: Computers, software and equipment 3 - 5 years Furniture and fixtures 5 - 7 years Leasehold improvements 5 - 7 years or remaining lease term, whichever is less Patents, Licenses, and Other Intangible Assets The cost of acquiring licenses is capitalized and amortized on the straight-line basis over the shorter of the term of the license or its estimated economic life, ranging from 1 to 18 years. Third-party costs incurred for acquiring patents are capitalized. Capitalized costs are accumulated until the earlier of the period that a patent is issued, or we abandon the patent claims. Cumulative capitalized patent costs are amortized on a straight-line basis from the date of issuance over the shorter of the patent term or the estimated useful economic life of the patent, ranging from 3 to 27 years. Our senior management, with advice from outside patent counsel, assesses three primary criteria to determine if a patent will be capitalized initially: i) technical feasibility, ii) magnitude and scope of new technical function covered by the patent compared to the company’s existing technology and patent portfolio, particularly assessing the value added to our product candidates or licensing business, and iii) legal issues, primarily assessment of patentability and prosecution cost. We review our intellectual property on a regular basis to determine if there are changes in the estimated useful life of issued patents and if any capitalized costs for unissued patents should be abandoned. Capitalized patent costs related to abandoned patent filings are charged off in the period of the decision to abandon. During 2022, 2021, and 2020, we abandoned previously capitalized patent and licensing related charges of $1.5 million, $0.9 million, and $0.5 million, respectively. The carrying amount and accumulated amortization of patents, licenses, and other intangibles is as follows (in thousands): December 31, 2022 2021 Patents, definite life $ 14,535 $ 13,231 Patents, pending issuance 9,328 8,821 Licenses and other amortizable intangible assets 3,908 2,474 Nonamortizable intangible assets (trademarks) 399 399 Total gross carrying amount 28,170 24,925 Accumulated amortization—patents (7,781) (6,800) Accumulated amortization—licenses and other (1,889) (1,632) Total intangible assets, net $ 18,500 $ 16,493 Amortization expense for patents, licenses, and other intangible assets was $1.4 million, $1.2 million, and $1.1 million for the years ended December 31, 2022, 2021, and 2020, respectively. Future amortization expense for patent, licenses, and other intangible assets recorded as of December 31, 2022, and for which amortization has commenced, is as follows: Year ended (in thousands) 2023 $ 1,165 2024 1,123 2025 1,110 2026 1,097 2027 1,096 Thereafter 3,181 Total $ 8,772 The above amortization expense forecast is an estimate. Actual amounts of amortization expense may differ from estimated amounts due to additional intangible asset acquisitions, impairment of intangible assets, accelerated amortization of intangible assets, and other events. As of December 31, 2022, the Company has $9.3 million of intangible assets which are in-process and have not been placed in service, and accordingly amortization on these assets has not commenced. Long-Lived Assets Management reviews long-lived assets which include fixed assets and amortizable intangibles for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset (or asset group) may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets. We did not recognize a loss from impairment for the years ended December 31, 2022, 2021, or 2020. Income Taxes We account for income taxes in accordance with accounting guidance which requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed annually for differences between the financial statement and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense is the tax payable or refundable for the period plus or minus the change during the period in deferred tax assets and liabilities. We assess our income tax positions and record tax benefits for all years subject to examination based upon our evaluation of the facts, circumstances, and information available at the reporting date. For those tax positions where there is greater than 50% likelihood that a tax benefit will be sustained, we have recorded the largest amount of tax benefit that may potentially be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where there is a 50% or less likelihood that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. We did not have any material uncertain tax positions at December 31, 2022 or 2021. Our policy is to recognize interest and penalties on taxes, if any, as a component of income tax expense. The Tax Cuts and Jobs Act of 2017 (TCJA) enacted on December 22, 2017 included several key provisions impacting the accounting for and reporting of income taxes. The most significant provisions reduced the U.S. corporate statutory tax rate from 35% to 21%, eliminated the corporate Alternative Minimum Tax (AMT) system, and made changes to the carryforward of net operating losses beginning on January 1, 2018. The TCJA changed the income tax treatment of research and development expenses requiring such costs to be capitalized and amortized over several years beginning effective January 1, 2022. The tax reform also provided for a refund of unused AMT carryforwards for years beginning after December 31, 2017. We received an income tax refund during the year ended December 31, 2020 of $0.8 million each year related to our federal AMT carryforwards. Stock-Based Compensation We recognize compensation expense using a fair-value-based method for costs related to all share-based payments, including stock options, restricted stock units (RSUs), and shares issued under our Employee Stock Purchase Plan (ESPP). Stock-based compensation cost related to employees and directors is measured at the grant date, based on the fair-value-based measurement of the award using the Black-Scholes method, and is recognized as expense over the requisite service period on a straight-line basis. We account for forfeitures when they occur. We recorded stock-based compensation and expense for stock-based awards to employees, directors, and consultants of approximately $48.9 million, $37.0 million, and $31.6 million for the years ended December 31, 2022, 2021, and 2020, respectively. Net Income (Loss) Per 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: Basic net income (loss) per common share is computed by dividing the net income or loss by the weighted-average number of common shares outstanding during the period. Potentially dilutive securities were included in the diluted net income per common share calculation for 2021. In 2022 and 2020, we excluded all options and awards from the calculations because we reported net losses in the period, and the inclusion of such shares would have had an antidilutive effect. Year Ended December 31, 2022 2021 2020 (in thousands, except share and per share data) Basic Numerator: Net income (loss) attributable to common stockholders for basic net income (loss) per share $ (55,181) $ 82,631 $ (69,333) Denominator: Weighted-average common shares outstanding 59,652,461 58,379,641 57,212,737 Basic net income (loss) per common share $ (0.93) $ 1.42 $ (1.21) Diluted Numerator: Net income (loss) attributable to common stockholders for diluted net income (loss) per share $ (55,181) $ 82,631 $ (69,333) Denominator: Weighted average number of common shares outstanding used in computing basic net income (loss) per common share 59,652,461 58,379,641 57,212,737 Dilutive effect of employee stock options, RSUs, and ESPP — 2,115,814 — Weighted-average number of common shares outstanding used in computing diluted net income (loss) per common share 59,652,461 60,495,455 57,212,737 Diluted net income (loss) per common share $ (0.93) $ 1.37 $ (1.21) For the years ended December 31, 2022 and 2020, all outstanding potentially dilutive securities were excluded from the calculation as the effect of including such securities would have been anti-dilutive. For the year ended December 31, 2021, we excluded 1,196,268 shares of options and RSUs from the calculation of diluted net income per common share because the inclusion of such shares would have had an anti-dilutive effect. Segment Reporting The Company determines its segment reporting based upon the way the business is organized for making operating decisions and assessing performance. The Company has only one operating segment related to the development of pharmaceutical products. |
Comprehensive Income (Loss)
Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2022 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Comprehensive Income (Loss) | Comprehensive Income (Loss)Comprehensive income (loss) is comprised of net income (loss) and other comprehensive income (loss). For the years ended December 31, 2022, 2021, and 2020, the only component of other comprehensive income (loss) is net unrealized gain (loss) on marketable debt securities. There were no material reclassifications out of accumulated other comprehensive loss during the year ended December 31, 2022. |
Marketable Debt and Equity Secu
Marketable Debt and Equity Securities | 12 Months Ended |
Dec. 31, 2022 | |
Marketable Securities [Abstract] | |
Marketable Debt and Equity Securities | Marketable Debt and Equity Securities The Company’s marketable debt securities held as of December 31, 2022 and 2021 are summarized below: December 31, 2022 Amortized Gross Gross Fair Value (in thousands) Money Market Funds $ 40,967 $ — $ — $ 40,967 Corporate Securities 201,752 — (1,126) 200,626 Government Securities 335,705 3 (5,819) 329,889 $ 578,424 $ 3 $ (6,945) $ 571,482 Reported as Cash and cash equivalents $ 40,967 Marketable securities 530,515 Total investments $ 571,482 December 31, 2021 Amortized Gross Gross Fair Value (in thousands) Money Market Funds $ 123,892 $ — $ — $ 123,892 Corporate Securities 144,584 — (166) 144,418 Government Securities 311,148 1 (1,335) 309,814 $ 579,624 $ 1 $ (1,501) $ 578,124 Reported as Cash and cash equivalents $ 123,892 Marketable securities 454,232 Total investments $ 578,124 The maturities of the Company’s marketable debt securities as of December 31, 2022 are as follows: Amortized Estimated (in thousands) Mature in one year or less $ 533,626 $ 526,689 Mature within two years 3,831 3,826 $ 537,457 $ 530,515 The unrealized losses on available-for-sale investments and their related fair values as of December 31, 2022 and 2021 are as follows: December 31, 2022 Less than 12 months 12 months or greater Fair value Unrealized losses Fair value Unrealized losses (in thousands) Corporate Securities $ 132,658 $ (1,121) $ 3,826 $ (5) Government Securities 324,933 (5,819) — — $ 457,591 $ (6,940) $ 3,826 $ (5) December 31, 2021 Less than 12 months 12 months or greater Fair value Unrealized losses Fair value Unrealized losses (in thousands) Corporate Securities $ 50,337 $ (51) $ 45,872 $ (115) Government Securities 39,909 (54) 254,593 (1,281) $ 90,246 $ (105) $ 300,465 $ (1,396) The unrealized losses from the listed securities are 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 December 31, 2022 and 2021 are as follows: Fair Value Fair Value Astria Common Stock $ 9,529 $ 3,449 INmune Common Stock 11,954 19,233 Viridian Common Stock 20,948 14,178 $ 42,431 $ 36,860 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 evaluates such investments at each reporting period for evidence of impairment or observable price changes in orderly transactions for the identical or a similar investment of the same issuer. During the year ended December 31, 2022, the Company recorded an impairment charge of $0.1 million related to the Astria preferred stock. Equity securities without a readily determinable fair value and their carrying values (in thousands) as of December 31, 2022 and 2021 are as follows: Carrying Value Carrying Value Astria Preferred Stock $ 174 $ 312 Zenas Preferred Stock 54,209 30,950 $ 54,383 $ 31,262 In 2018, the Company received equity shares in Quellis Biosciences, Inc. (Quellis) in connection with a licensing transaction. In 2021, Quellis merged into Catabasis Pharmaceuticals, Inc. (Catabasis), and the Company received common and preferred stock in Catabasis in exchange for its Quellis equity. In June 2021, shares of the Catabasis preferred stock were exchanged for shares of Catabasis common stock; the shares of the Catabasis common stock have a readily determinable fair value. In September 2021, Catabasis changed its name to Astria Therapeutics, Inc. (Astria). The Company accounts for the shares in Astria common stock at their fair value each reporting period and the adjustment in the fair value of the Astria common stock has been recorded in unrealized gain (loss) on equity securities for the year ended December 31, 2022. The Company records its investment in the shares of Astria preferred stock as an equity interest without a readily determinable fair value. The Company elected to record the original shares of preferred stock at their initial cost and to review the carrying value for impairment or other changes in carrying value at each reporting period. The Company subsequently recorded impairment charges of $0.1 million and $0.8 million related to its investment in Astria’s preferred stock in 2022 and 2021, respectively. In 2017, the Company received shares of common stock of INmune Bio, Inc. (INmune) and an option to acquire additional shares of INmune’s common stock in connection with a licensing transaction. The Company received a second option to acquire additional shares of INmune common stock in connection with a designee appointed by us serving on the board of directors of INmune. The Company originally recorded its investment at cost pursuant to ASC 323, Investments – Equity Method and Joint Ventures . In June 2021, the Company entered into an Option Cancellation Agreement with INmune and received $15.0 million in proceeds and an additional shares of INmune common stock in exchange for the initial option. During 2021, the Company determined that it should no longer account for its investment in INmune under the equity method. In September 2021, the Company exercised its second option to purchase 108,000 shares of INmune common stock for $0.8 million and the Company recorded a gain of $0.9 million on the purchase. The Company's current share holdings, which consist of common stock of INmune, have a readily determinable fair value, and the adjustment in the fair value of the shares of INmune common stock was recorded in gain (loss) on equity securities for the year ended December 31, 2022. In December 2021, the Company received shares of common stock of Viridian Therapeutics, Inc. (Viridian) in connection with the Viridian Agreement. In December 2022, the Company received additional shares of common stock of Viridian in connection with the Second Viridian Agreement (defined below). The shares of Viridian common stock are classified as equity securities with a readily determinable fair value and the adjustment in the fair value of the shares of Viridian common stock was recorded in gain (loss) on equity securities for the year ended at December 31, 2022. 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 an identical or a similar investment of the same issuer. In 2021, the Company received a warrant to receive equity from Zenas in connection with the Second Zenas Agreement (defined below). In 2021, the Company purchased a convertible promissory note from Zenas. In 2022, the Zenas warrant was exchanged for additional equity in Zenas. In 2022, the convertible note and accrued interest through the conversion date were exchanged for equity shares in Zenas. We recognized an unrealized gain of $21.9 million from the warrant exchange and the conversion of the promissory note. During the year ended December 31, 2022, there was no impairment related to this investment. Unrealized gains and losses recognized on equity securities (in thousands) during the year ended December 31, 2022 and 2021 consist of the following: Year Ended December 31, 2022 2021 Net gains recognized on equity securities $ 23,434 $ 39,289 Less: net gains recognized on equity securities redeemed — 18,301 Unrealized gain (losses) recognized on equity securities $ 23,434 $ 20,988 |
Sale of Additional Common Stock
Sale of Additional Common Stock | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Sale of Additional Common Stock | Sale of Additional Common StockUnder the terms of the Stock Purchase Agreement (defined below), Johnson & Johnson Innovation, JJDC, Inc. (JJDC), purchased $25.0 million of newly issued unregistered shares of the Company’s common stock, priced at a 30-day volume-weighted average price of $33.4197 per share as of October 1, 2021. The Company issued 748,062 shares of common stock to JJDC on November 12, 2021. The issued shares are subject to customary resale restrictions pursuant to Rule 144 of the Securities Act of 1933. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consist of the following: December 31, 2022 2021 (in thousands) Computers, software and equipment $ 45,159 $ 41,955 Furniture and fixtures 539 539 Leasehold and tenant improvements 41,774 8,574 Total gross carrying amount 87,472 51,068 Less accumulated depreciation and amortization (28,289) (22,828) Total property and equipment, net $ 59,183 $ 28,240 Leasehold and tenant improvements consist primarily of leasehold construction at our new Pasadena headquarters. Depreciation expense related to property and equipment in 2022, 2021, and 2020 was $7.4 million, $6.3 million, and $4.7 million, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our effective tax rate differs from the statutory federal income tax rate, primarily as a result of the changes in valuation allowance. The provision for income taxes for the year ended December 31, 2022 was $0.7 million.There was no provision for taxes for the years ended December 31, 2021 and December 31, 2020. A reconciliation of the federal statutory income tax to our effective income tax is as follows (in thousands): Year Ended 2022 2021 2020 Federal statutory income tax $ (11,447) $ 17,352 $ (14,559) State and local income taxes (615) 783 (4,659) Research and development credit (9,366) (10,492) (9,669) Stock-based compensation 3,384 2,424 529 Foreign-derived intangible income (1,449) — — Other (74) 95 56 Change in state rate 44 2,599 — Net change in valuation allowance 20,196 (12,761) 28,302 Income tax provision $ 673 $ — $ — The tax effect of temporary differences that give rise to a significant portion of the deferred tax assets and liabilities at December 31, 2022 and 2021 is presented below (in thousands): December 31, 2022 2021 Deferred income tax assets Net operating loss carryforwards $ 32,898 $ 46,629 Research credits 54,825 48,128 Unrealized loss on securities 1,573 327 Capitalized lease assets 5,564 489 Accrued compensation 14,484 9,207 Capitalized research and development costs 21,338 — Gross deferred income tax assets 130,682 104,780 Valuation allowance (115,010) (93,580) Net deferred income tax assets 15,672 11,200 Deferred income tax liabilities Patent costs (2,885) (3,416) Deferred revenue 3,225 (3,508) Licensing costs (124) (151) Capitalized legal costs (9) (13) Depreciation (6,532) (288) Unrealized gain on securities (9,347) (3,824) Gross deferred income tax liabilities (15,672) (11,200) Net deferred income tax asset $ — $ — The Tax Cuts and Jobs Act of 2017 (TCJA) was enacted in December 2017 and made substantial changes in the U.S. tax system. One of the changes was elimination of the AMT tax system for corporations and allowance of an income tax refund for AMT tax credit carryforwards. We have received an income tax refund of $0.8 million for the year ended December 31, 2020 for U.S. AMT credit carryforwards. The other significant change made by the TCJA requires research and development costs incurred after December 31, 2021 to be capitalized and amortized over several years. We have recorded a deferred asset as of December 31, 2022 for such capitalized research and development costs. We have net deferred tax assets relating primarily to net operating loss carryforwards and research and development tax credit carryforwards. Due to the uncertainty surrounding the realization of the benefits of our deferred tax assets in future tax periods, we have placed a valuation allowance against our deferred tax assets at December 31, 2022 and 2021. The Company recognizes valuation allowances to reduce deferred tax assets to the amount that is more likely than not to be realized. The Company’s net deferred income tax asset is not more likely than not to be realized due to the lack of sufficient sources of future taxable income and cumulative losses that have resulted over the years. During the year ended December 31, 2022, the valuation allowance increased by $21.4 million. The Company’s tax years starting in 2018 through 2021 remain open to potential examination by the U.S. and state taxing authorities due to carryforwards of net operating losses. As of December 31, 2022, we had cumulative net operating loss carryforwards for federal and state income tax purposes of $102.4 million and $162.1 million, respectively, and available tax credit carryforwards of approximately $38.7 million for federal income tax purposes and $20.4 million for state income tax purposes, which can be carried forward to offset future taxable income, if any. The federal net operating loss carryforwards consist of $59.0 million of losses incurred prior to January 1, 2018, which are subject to carryforward limitations and $43.4 million of losses incurred after January 1, 2018, which may be carried forward indefinitely. Our federal net operating loss carryforwards expire starting in 2027, state net operating loss carryforwards expire starting in 2035, and federal tax credit carryforwards begin to expire in 2034. Utilization of our net operating loss and tax credit carryforwards are subject to a substantial annual limitation under Section 382 of the Code due to the fact that we have experienced ownership changes. As a result of these changes, certain of our net operating loss and tax credit carryforwards may expire before we can use them. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Our Board of Directors and the requisite stockholders previously approved the 2010 Equity Incentive Plan (the 2010 Plan). In October 2013, our Board of Directors approved the 2013 Equity Incentive Plan (the 2013 Plan), and in November 2013, our stockholders approved the 2013 Plan. The 2013 Plan provides for the grant of incentive stock options, nonstatutory stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, performance stock awards, performance cash awards, and other stock awards. The 2013 Plan became effective as of December 2, 2013, the date of the pricing of the Company’s initial public offering. 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 December 31, 2022, the total number of shares of common stock available for issuance under the 2013 Plan was 14,792,799. 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 by 4% of the total number of issued and outstanding shares of common stock as of December 31 of the immediately preceding year. On January 1, 2022, the total number of shares of common stock available for issuance under the 2013 Plan was increased by 2,374,222 shares, which is included in the number of shares available for issuance above. As of December 31, 2022, a total of 14,535,306 options have been granted under the 2013 Plan. As of December 31, 2022, the Company has awarded 1,999,817 RSUs to certain employees pursuant to the 2013 Plan. Vesting of these awards will be annually over equal installments, either a two In November 2013, our Board of Directors and stockholders approved the 2013 Employee Stock Purchase Plan (ESPP), which became effective as of December 5, 2013. Under the ESPP our employees may elect to have between 1-15% of their compensation withheld to purchase shares of the Company’s common stock at a discount. The ESPP had an initial two-year term that includes four six-month purchase periods, and employee withholding amounts may be used to purchase Company stock during each six-month purchase period. The initial two-year term ended in December 2015 and pursuant to the provisions of the ESPP, the second two-year term began automatically upon the end of the initial term. The total number of shares that can be purchased with the withholding amounts are based on the lower of 85% of the Company’s common stock price at the initial offering date or 85% of the Company’s stock price at each purchase date. As of December 31, 2022, the total number of shares of common stock available for issuance under the ESPP is 539,392. Unless otherwise determined by our Board, beginning on January 1, 2014, and continuing until the expiration of the ESPP, the total number 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, the total number of shares of common stock available for issuance under the ESPP was increased by 593,555 shares on January 1, 2022. As of December 31, 2022, we have issued a total of 635,449 shares of common stock under the ESPP. Total employee, director and non-employee stock-based compensation expense recognized was as follows: Year Ended (in thousands) 2022 2021 2020 General and administrative $ 17,281 $ 12,813 $ 10,769 Research and development 31,632 24,162 20,850 $ 48,913 $ 36,975 $ 31,619 Year Ended (in thousands) 2022 2021 2020 Stock options $ 29,758 $ 27,909 $ 26,045 ESPP 1,174 992 804 RSUs 17,981 8,074 4,770 $ 48,913 $ 36,975 $ 31,619 Information with respect to stock options outstanding is as follows: December 31, 2022 2021 2020 Exercisable options 6,679,948 5,576,430 4,668,179 Weighted average exercise price per share of exercisable options $ 26.99 $ 24.15 $ 21.75 Weighted average grant date fair value per share of options granted during the year $ 15.45 $ 21.65 $ 16.96 Options available for future grants 3,622,319 3,597,371 3,346,092 Weighted average remaining contractual life 6.30 6.65 7.00 The following table summarizes stock option activity for the years ended December 31, 2022 and 2021: Number of Weighted- Average Exercise Price (Per Share) (1) Weighted- Aggregate Intrinsic Value (in thousands) (2) Balances at December 31, 2019 7,174,319 $ 24.03 7.32 $ 79,116 Options granted 1,679,324 33.08 Options forfeited (243,384) 32.93 Options exercised (3) (858,470) 19.36 Balances at December 31, 2020 7,751,789 26.23 7.00 $ 134,941 Options granted 1,827,234 41.22 Options forfeited (382,454) 36.15 Options exercised (3) (520,240) 23.61 Balances at December 31, 2021 8,676,329 29.11 6.65 $ 100,057 Options granted 2,135,233 29.45 Options forfeited (533,435) 34.09 Options exercised (3) (195,485) 18.46 Balances at December 31, 2022 10,082,642 $ 29.12 6.30 $ 27,141 As of December 31, 2022 Options vested and expected to vest 10,082,642 $ 29.12 6.30 $ 27,141 Exercisable 6,679,948 $ 26.99 5.10 $ 26,979 ______________________________ (1) The weighted average exercise price per share is determined using exercise price per share for stock options. (2) The aggregate intrinsic value is calculated as the difference between the exercise price of the option and the fair value of our common stock for in-the-money options at December 31, 2022 and 2021. (3) The total intrinsic value of stock options exercised was $1.6 million, $9.2 million, and $16.3 million for the years ended December 31, 2022, 2021 and 2020 respectively. We estimated the fair value of employee and non-employee awards using the Black-Scholes valuation model. The fair value of employee stock options is being amortized on a straight-line basis over the requisite service period of the awards. Management estimates the probability of non-employee awards being vested based upon an evaluation of the non-employee achieving their specific performance goals. Options are issued at the fair market value of our stock on the date of grant. The fair value of employee stock options was estimated using the following weighted average assumptions for the years ended December 31, 2022, 2021 and 2020: Options 2022 2021 2020 Common stock fair value per share $19.74 - 38.08 $30.65- 49.47 $20.69 - 45.91 Expected volatility 51.51% - 54.36% 53.91% - 56.82% 52.93% - 58.95% Risk-free interest rate 1.57% - 4.34% 0.47% - 1.33% 0.29% - 1.71% Expected dividend yield — — — Expected term (in years) 6.00 - 7.65 6.00 - 7.65 5.23 - 7.65 ESPP 2022 2021 2020 Expected term (years) 0.5 - 2.0 0.5 - 2.0 0.5 - 2.0 Expected volatility 43.19% - 55.72% 46.08% - 66.37% 50.77% - 66.37% Risk-free interest rate 0.13% - 4.72% 0.04% - 1.65% 0.09% - 1.65% Expected dividend yield — — — The expected term of stock options represents the average period the stock options are expected to remain outstanding. The expected stock price volatility for our stock options for the years ended December 31, 2022, 2021, and 2020 was determined using a blended volatility by examining the historical volatility for industry peer companies and the volatility of our stock from the effective date that our shares were publicly traded on a national stock exchange. We determined the average expected life of stock options based on the anticipated time period between the measurement date and the exercise date by examining the option holders’ past exercise patterns. The risk-free interest rate assumption is based on the U.S. Treasury instruments, for which the term was consistent with the expected term of our stock options. The expected dividend assumption is based on our history and expectation of dividend payouts. We have not paid dividends and did not have any dividend payout at December 31, 2022. The following table summarizes RSU activity for the years ended December 31, 2022: Number of Weighted- Unvested at December 31, 2019 90,006 $ 34.66 Granted 348,288 32.51 Vested (62,355) 32.61 Forfeited (17,114) 32.33 Unvested at December 31, 2020 358,825 $ 33.04 Granted 670,700 39.11 Vested (151,555) 32.76 Forfeited (51,822) 36.68 Unvested at December 31, 2021 826,148 $ 37.79 Granted 875,330 29.45 Vested (341,073) 37.37 Forfeited (127,854) 33.66 Unvested at December 31, 2022 1,232,551 $ 32.41 As of December 31, 2022 and 2021, the unamortized compensation expense related to unvested stock options was $52.6 million and $54.5 million, respectively. The remaining unamortized compensation expense will be recognized over the next 2.43 years. At December 31, 2022 and 2021, the unamortized compensation expense was $1.2 million and $2.3 million respectively under our ESPP. The remaining unamortized expense will be recognized over the next 0.94 years. At December 31, 2022 and 2021, the unamortized compensation expense related to unvested restricted stock units was $28.3 million and $24.8 million, respectively. The remaining unamortized compensation expense will be recognized over the next 1.90 years. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases The Company leases office and laboratory space in Monrovia, California under two separate leases that expire in January 2023 and December 2025, respectively with an option to renew for an additional five years at then market rates. The Company has assessed that it is unlikely to exercise the lease term extension option. For the year ended December 31, 2022, ROU assets obtained in exchange for new operating lease liabilities are $0.3 million. The Company leases additional office space in San Diego, California through August 2022, with an option to extend for an additional five years. In May 2022, the Company entered into an amendment to the lease to extend the lease term through December 31, 2023. The Company has assessed that it is unlikely to exercise the option to extend the lease term. In June 2021, the Company entered into an 18-month lease for office space in Monrovia, California. The lease began August 1, 2021 and terminated January 31, 2023. ROU assets obtained in exchange for new operating lease liabilities are $0.3 million In June 2021, the Company entered into an Agreement of Lease (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 first quarter of 2023. The term of the Halstead Lease will become effective in two phases. The first phase commences on July 14, 2021 and encompasses 83,083 square feet while the second phase commences no later than July 1, 2025 and encompasses an additional 46,460 square feet. The term of the Halstead Lease is 13 years from the first phase commencement date. The Company received delivery of the first phase premises 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 $17.0 million and $3.3 million in connection with the Phase 1 and Phase 2 building improvements, respectively. The initial base monthly rent is $386,336, 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 to August 1, 2022 and to amend other provisions of the Halstead Lease to reflect the new start date of the lease. In August 2022, the Halstead lease was amended to increase the amount of the tenant allowance by$5.0 million with a corresponding increase in total rental payments. The Company is eligible to receive total tenant allowance under the lease for the phase 1 space of $22.0 million and the initial base rent is increased to $416,246 , or $5.01 per square foot. For the year ended December 31, 2021, ROU assets obtained in exchange for new operating lease liabilities are $29.7 million. The Company received delivery of the second phase premises on December 1, 2022. For the year ended December 31, 2022, ROU assets obtained in exchange for new operating lease liabilities are $15.3 million. The Company’s lease agreements do not contain any residual value guarantees or restrictive covenants. The following table reconciles the undiscounted cash flows for the operating leases at December 31, 2022 to the operating lease liabilities recorded on the balance sheet (in thousands): Years ending December 31, 2023 $ 6,558 2024 6,072 2025 7,392 2026 8,589 2027 8,829 Thereafter 75,512 Total undiscounted lease payments 112,952 Less: Tenant allowance (5,459) Less: Imputed interest (47,859) Present value of lease payments $ 59,634 Lease liabilities - short-term $ 4,708 Lease liabilities - long-term 54,926 Total lease liabilities $ 59,634 The following table summarizes lease costs, cash, and other disclosures for the years ended December 31, 2022, 2021, and 2020 (in thousands): Year Ended 2022 2021 2020 Operating lease cost $ 6,588 $ 4,342 $ 2,503 Variable lease cost 506 58 150 Total lease costs $ 7,094 $ 4,400 $ 2,653 Cash paid for amounts included in the measurement of lease liabilities $ 2,869 $ 2,773 $ 2,233 Weighted-average remaining lease term —operating leases (in years) 12.0 12.3 7.4 Weighted-average discount rate —operating leases 8.9 % 5.8 % 5.5 % |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies 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. We are 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 our balance sheet. We have also entered into agreements with third party vendors which will require us to make future payments upon the delivery of goods and services in future periods. Guarantees In the normal course of business, we indemnify certain employees and other parties, such as collaboration partners and other parties that perform certain work on behalf of, or for the Company or take licenses to our technologies. We have agreed to hold these parties harmless against losses arising from our breach of representations or covenants, intellectual property infringement or other claims made against these parties in performance of their work with us. These agreements typically limit the time within which the party may seek indemnification by us and the amount of the claim. It is not possible to prospectively determine the maximum potential amount of liability under these indemnification agreements since we have not had any prior indemnification claims on which to base the calculation. Further, each potential claim would be based on the unique facts and circumstances of the claim and the particular provisions of each agreement. We are not aware of any potential claims and we did not record a liability as of December 31, 2022 and 2021. |
Collaboration and Licensing Agr
Collaboration and Licensing Agreements | 12 Months Ended |
Dec. 31, 2022 | |
Collaboration and Licensing Agreements | |
Collaboration and Licensing Agreements | Collaboration and Licensing Agreements Following is a summary description of the material revenue arrangements, including arrangements that generated revenue in the period ended December 31, 2022, 2021, and 2020. The revenue reported for each agreement has been adjusted to reflect the adoption of ASC 606 for each period presented. Aimmune Therapeutics, Inc. In 2020, the Company entered into a License, Development and Commercialization Agreement (the Aimmune Agreement) with Aimmune Therapeutics, Inc. (Aimmune) pursuant to which the Company granted Aimmune an exclusive worldwide license to XmAb7195, which was renamed AIMab7195. The Company received an upfront payment and is eligible to receive development, regulatory and, sales and tiered royalties on net sales of approved products from high-single to mid-teen percentage range. No revenue was recognized for the year ended December 31, 2022 and 2021. There is no deferred revenue as of December 31, 2022 or 2021 related to this agreement. Alexion Pharmaceuticals, Inc. In January 2013, the Company entered into an option and license agreement with Alexion Pharmaceuticals, Inc. (Alexion). Under the terms of the agreement, the Company granted to Alexion an exclusive research license, with limited sublicensing rights, to make and use our Xtend technology. Alexion exercised its rights to include our technology in ALXN1210, which is now marketed as Ultomiris. The Company is eligible to receive contractual milestones for certain commercial achievements, and the Company is also entitled to receive royalties based on a percentage of net sales of such products sold by Alexion, its affiliates, or its sub licensees, 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. In 2020, Alexion completed certain regulatory submissions for Ultomiris, and the Company received a total of $10.0 million in milestone payments. During 2020, the Company also recorded royalty revenue of $16.2 million in connection with reported net sales of Ultomiris by Alexion. In 2021, the Company recorded royalty revenue of $22.2 million on net sales. In 2022, the Company recorded royalty revenue of $29.4 million on net sales. The total revenue recognized under this arrangement was $29.4 million , $22.2 million, and $26.2 million for the years ended December 31, 2022, 2021, and 2020, respectively. As of December 31, 2022, there is a receivable of $14.8 million , and there is no deferred revenue related to this agreement. 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. Amgen has advanced one of the discovery programs, now AMG509, into clinical development. The Company is eligible to receive future development, regulatory and sales milestones in total for the program and is eligible to receive royalties on any global net sales of products. No revenue was recognized for the year ended December 31, 2022, 2021, or 2020. As of December 31, 2022, there was no deferred revenue related to the arrangement. Astellas Pharma Inc. Effective March 2019, the Company entered into a Research and License Agreement (Astellas Agreement) with Astellas Pharma Inc. (Astellas) pursuant to which the Company and Astellas conducted a discovery program to characterize compounds and products for development and commercialization. Under the Astellas Agreement, Astellas was granted a worldwide exclusive license, with the right to sublicense products in the field created by the research activities. The Company received an upfront payment and is eligible to receive development, regulatory and 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. Astellas has advanced an antibody that was delivered into development, and we received a milestone related to the candidate in 2020. Astellas advanced the candidate into Phase 1 studies in 2022 and we received a $5.0 million milestone. The Company recognized $2.5 million of revenue in 2020, and $5.0 million of revenue in 2022 under the agreement. There is no deferred revenue as of December 31, 2022. Astria Therapeutics, 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. The Company received an equity interest in Quellis and is eligible to receive development, regulatory and sales milestones. The Company is also 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 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. In September 2021, Catabasis changed its name to Astria. The Company recorded an impairment charge of $0.1 million for its investment in Astria preferred stock for the year ended December 31, 2022. The Company recognized unrealized gain of $6.1 million and $4.5 million related to its equity interest in Astria for the years ended December 31, 2022 and 2021, respectively. There is no deferred revenue as of December 31, 2022 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, the Company’s IL-15/IL15Rα-Fc candidate. Under the terms of the Genentech Agreement, Genentech received an exclusive worldwide license to XmAb306 and Genentech and Xencor will jointly collaborate on worldwide development of XmAb306. The Company determined that the transaction price of the Genentech Agreement at inception was $120.0 million consisting of the upfront payment, and allocated the transaction price to each of the separate performance obligations using the relative standalone selling price with $111.7 million allocated to the license to XmAb306, $4.1 million allocated to the additional program and $4.2 million allocated to the research services. 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, and the $8.3 million allocated to the research activities was recognized over a period of time through the end of the research term or the time that a program is delivered to Genentech. 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. No revenue was recognized for the year ended December 31, 2022. For the years ended December 31, 2021 and 2020, we recognized $2.5 million and $3.5 million of income, respectively, from the Genentech Agreement. As of December 31, 2022, there was a $0.2 million receivable related to cost-sharing development activities during the fourth quarter of 2022. There is no deferred revenue as of December 31, 2022. Gilead Sciences, Inc. In January 2020, the Company entered into a Technology License Agreement (the Gilead Agreement) with Gilead Sciences, Inc. (Gilead), in which the Company provided Gilead 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. Gilead is responsible for all development and commercialization activities for all target candidates. The Company received an upfront payment and is eligible to receive development, regulatory and, 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. In the second quarter of 2020, Gilead exercised options on three additional antibody compounds, and in April 2020, we received a total of $7.5 million in payment of the three options. No revenue was recognized for the year ended December 31, 2022 and 2021. The Company recognized $13.5 million of revenue related to the Gilead Agreement for the year ended December 31, 2020. There is no deferred revenue as of December 31, 2022 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 shares of INmune common stock and an option to acquire additional shares of INmune. The Company also received a second option to acquire additional shares of INmune common stock with a designee appointed by us serving on the board of directors of INmune. 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 initial option to INmune for the total consideration of $18.3 million which includes $15.0 million in cash and additional shares of INmune common stock. The Company recorded a realized gain of $18.3 million according to ASC 860, Transfer and Servicing , and recorded the additional shares of INmune common stock according to ASC 321, Investments – Equity Securities . During the three months 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 months ended June 30, 2021. In September 2021, the Company exercised its second to purchase additional shares of INmune common stock for $0.8 million. The Company recognized an unrealized gain of $2.0 million, which consists of $1.1 million of fair value of the option and $0.9 million gain on the purchase, as other income for the three months ended September 30, 2021. For the year ended December 31, 2022, the Company recorded $7.3 million of unrealized loss related to its investment in INmune. For the year ended December 31, 2021, the Company recorded $15.1 million of unrealized gain and $18.3 million of realized gain related to its investment in INmune. No revenue was recognized for the years ended December 31, 2022, 2021, or 2020. 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 December 31, 2022 or 2021. At June 30, 2021, the Company determined that it no longer has a significant influence in INmune and that INmune is no longer a related party. Janssen Biotech, Inc. Janssen Agreement In November 2020, the Company entered into a Collaboration and License Agreement (the Janssen Agreement) with Janssen Biotech, Inc. (Janssen) pursuant to which Xencor and Janssen conducted research and development activities to discover novel CD28 bispecific antibodies for the treatment of prostate cancer. Janssen and Xencor will conducted joint research activities 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 and is eligible to receive development, regulatory and, 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. Pursuant to the Janssen Agreement, upon development of a bispecific candidate by Janssen through proof of concept, we have the right to opt-in to fund 20% of development costs and to perform 30% of detailing efforts in the U.S. If we exercise this right, we will be eligible to receive tiered royalties in the low-double digit to mid-teen percentage range. The Company allocated the transaction price to the single performance obligation, delivery of CD28 bispecific antibodies to Janssen. The Company recognized the $50.0 million transaction price as it satisfied its performance obligation to deliver CD28 bispecific antibodies to Janssen. The Company recognized revenue related to the performance obligation over the expected period of time to complete and deliver the CD28 bispecific antibodies to Janssen using the expected input method which considers an estimate of the Company’s efforts to complete the research activities outlined in the Janssen Agreement. In November 2021, the Company completed its performance obligations under the research activities and delivered CD28 bispecific antibodies to Janssen. In December 2021, Janssen selected a bispecific CD28 candidate for further development, and we received a milestone of $5.0 million. For the year ended December 31, 2021 the Company recognized as revenue the $50.0 million transaction price in connection with the completion of the research activities and the $5.0 million milestone for selection of an antibody candidate by Janssen. No revenue was recognized under this agreement in 2022. Second Janssen Agreement On October 1, 2021, the Company entered into a second Collaboration and License Agreement (the Second Janssen Agreement) with Janssen pursuant to which the Company granted Janssen an exclusive worldwide license to develop, manufacture, and commercialize plamotamab, the Company’s CD20 x CD3 development candidate, and pursuant to which Xencor and Janssen will conduct research and development activities to discover novel CD28 bispecific antibodies. The parties will conduct joint research activities for up to a two-year period to discover XmAb bispecific antibodies against CD28 and undisclosed B cell tumor-targets with Janssen receiving exclusive worldwide rights, subject to certain Xencor opt-in rights, to develop, manufacture and commercialize pharmaceutical products that contain one or more of such discovered antibodies (CD28 Licensed Antibodies). The Agreement became effective on November 5, 2021. Pursuant to the Second Janssen Agreement, the Company received an upfront payment of $100.0 million and is eligible to receive up to $1,187.5 million in milestones which include $289.4 million in development milestones, $378.1 million in regulatory milestones and $520.0 million in sales milestones. Under the terms of the Stock Purchase Agreement, Johnson & Johnson Innovation, JJDC, Inc. (JJDC), agreed to purchase $25.0 million of newly issued unregistered shares of the Company’s common stock, priced at a 30-day volume-weighted average price of $33.4197 per share as of October 1, 2021. The Company issued JJDC 748,062 shares of its common stock which had a fair market value of $28.9 million when the shares were transferred. The Company will collaborate with Janssen on further clinical development of plamotamab with Janssen and share development costs with Janssen paying 80% and the Company paying 20% of certain development costs. The Company is generally responsible for conducting research activities under the Second Janssen Agreement, and Janssen is generally responsible for all development, manufacturing, and commercialization activities for CD28 Licensed Antibodies that are advanced. Under the Second Janssen Agreement, the Company granted Janssen an exclusive worldwide right to its plamotamab program and the Company will conduct research activities and apply its CD28 bispecific Fc technology to antibodies targeting B-cells. Upon completion of the research activities Janssen will have options to advance up to four identified candidates 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. 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 Second Janssen Agreement under the provisions of ASC 606. We have determined that Janssen is a customer for purposes of the delivery of specific performance obligations under the Second Janssen Agreement and applied the provisions of ASC 606 to the transaction. The Company identified the following performance obligations under the Second Janssen Agreement: (i) the license to the plamotamab program, and (ii) research services during a two-year period to create up to four CD28 bispecific candidates targeting B-cell antigens. The Company determined that the license and the research services are separate performance obligations because they are capable of being distinct and are distinct in the context of the Second Janssen Agreement. The license to plamotamab has standalone functionality as Janssen has exclusive worldwide rights to the program, including the right to sublicense to third parties. Janssen has significant experience and capabilities in developing and commercializing drug candidates similar to plamotamab, and Janssen is capable of performing these activities without the Company’s involvement. Upon the transfer of the license of plamotamab and the related data and materials, Janssen could develop and commercialize plamotamab without further assistance from the Company. The Company determined that the research services for potential CD28 candidates was a separate standalone performance obligation. The Second Janssen Agreement provides an outline of an integrated research plan for the programs to be conducted by the two companies, and the research activities are separate and distinct from the license to plamotamab. The Company determined the standalone selling price of the license to be $58.5 million using the adjusted market assessment approach considering similar collaboration and license agreements and transactions. The standalone selling price for the research services to be performed during the research term was determined to be $37.6 million using the market approach which was derived from the Company’s experience and information from providing similar research services. The Company determined that the transaction price of the Second Janssen Agreement at inception was $96.1 million consisting of the $100.0 million upfront payment reduced by the $3.9 million discount on the proceeds received from the sale of Company common stock to Janssen. 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 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 each of the separate performance obligations using the relative standalone selling price with $58.5 million allocated to the license to the plamotamab program and $37.6 million allocated to the research services. The Company recognized the $58.5 million allocated to the license when it satisfied its performance obligation and transferred the license to Janssen in November 2021. The license was transferred upon the effective date of the Second Janssen Agreement and when the Company subsequently transferred certain data related to the program to Janssen. The $37.6 million allocated to the research services is being recognized over a period of time through the end of the research term that services are rendered as we determine that the input method is the appropriate approach to recognize income for such services. A total of $7.0 million and $0.3 million of revenue related to the research services was recognized in each of the years ended December 31, 2022 and December 31, 2021, respectively. The Company recognized $7.0 million and $113.8 million of revenue related to the two Janssen agreements for the years ended December 31, 2022 and 2021, respectively. No revenue was recognized under this arrangement for the year ended December 31, 2020. There is $30.3 million in deferred revenue as of December 31, 2022 related to our obligation to complete research activities and deliver CD28 bispecific antibodies under the Second Janssen Agreement. MorphoSys AG In June 2010, the Company entered into a Collaboration and License Agreement with MorphoSys AG (MorphoSys), which was subsequently amended in March 2012 and in 2020. The agreement provides MorphoSys with an exclusive worldwide license to the Company’s patents and know-how to research, develop, and commercialize the Company’s 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. The Company recognized a total of $7.8 million of royalty revenue on net sales of Monjuvi for the year ended December 31, 2022. The Company recognized a total of $12.5 million of milestone revenue related to clinical studies and royalties of $5.9 million on net sales of Monjuvi for the year ended December 31, 2021. There was $39.0 million of revenue recognized under this arrangement for the year ended December 31, 2020. As of December 31, 2022, the Company has no deferred revenue related to this agreement and has recorded a receivable of $2.2 million for royalties due. Novartis Institute for Biomedical Research, Inc. In June 2016, the Company entered into a Collaboration and License Agreement (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 granted Novartis certain exclusive rights to research, develop and commercialize XmAb14045 (vibecotamab) 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. In August 2021, Novartis notified the Company it was terminating its rights with respect to the vibecotamab program, which will be effective in February 2022. Under the Novartis Agreement, Novartis is responsible for its share of vibecotamab development costs through August 2022. We completed delivery of two Global Discovery Programs under the Agreement. Under ASC 606, revenue is recognized at the time that the Company’s performance obligation for each Global Discovery is completed upon delivery of each discovery program to Novartis. The Company delivered two discovery programs to Novartis and recognized $40.1 million of revenue in the period that each program was delivered. The Company’s obligations to provide research services under the Agreement for additional Global Discovery Programs expired in 2021, and we recognized $40.1 million of research revenue from deferred revenue. In June 2021, Novartis selected an Fc candidate and received a non-exclusive license to the Company’s Fc technology. 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 year ended December 31, 2021, Novartis advanced the Fc candidate into development and initiated clinical studies and the Company recognized $3.0 million of revenue related to the milestones. During the year ended December 31, 2021, the Company recognized $43.1 million of revenue. No revenue was recognized during the years ended December 31, 2022 and 2020. There was a $0.03 million receivable and no deferred revenue as of December 31, 2022 related to the arrangement. Omeros Corporation In August 2020, the Company entered into a Technology License Agreement (the Omeros Agreement) with Omeros Corporation (Omeros), in which the Company provided Omeros a non-exclusive license to its Xtend Fc technology, an exclusive license to apply its Xtend technology to an initial identified antibody and options to apply its Xtend technology to three additional antibodies. Omeros is responsible for all development and commercialization activities for all target candidates. The Company received an upfront payment and is eligible to receive development, regulatory and, sales milestones for each product incorporating the antibodies selected. In addition, the Company is eligible to receive royalties in the mid-single digit percentage range on net sales of approved products. There was no revenue recognized for the year ended December 31, 2022 and 2021. The Company recognized $5.0 million of revenue related to the Omeros Agreement for the year ended December 31, 2020. There is no deferred revenue as of December 31, 2022 related to this agreement. Vir Biotechnology, Inc. In 2019, the Company entered into a Patent License Agreement (the Vir Agreement) with Vir Biotechnology (Vir) pursuant to which the Company provided a non-exclusive license to its Xtend technology for up to two targets. Under the terms of the Vir Agreement, the Company received a total of $2.0 million in upfront and milestone payments and is eligible to receive additional milestones of $154.0 million which include $4.0 million of development milestones, $30.0 million of regulatory milestones and $120.0 million of sales milestones. In addition, the Company is eligible to receive royalties on the net sales of approved products in the low-single digits. Vir initiated a Phase 1 study with a licensed antibody in 2019, and in the second quarter of 2020, it initiated a Phase 1 study with a second licensed antibody. 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 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 antibody, and the Company is eligible to receive royalties on the net sales of approved products in the mid-single digit percentage range. Vir and its marketing partner, GSK, began recording sales for sotrovimab beginning in June 2021. In 2022 and 2021, we recognized royalty revenue of $114.9 million and $52.2 million , respectively related to this agreement. 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, and the payment was received in August 2021. The Company recognized $115.4 million , $52.7 million, and $0.3 million of revenues related to the agreement for the years ended December 31, 2022, 2021, and 2020, respectively. There is no deferred revenue as of December 31, 2022 related to this agreement. As of December 31, 2022, the Company has recorded a receivable of $4.8 million for royalties due related to this agreement. Viridian Therapeutics, Inc. In December 2020, we entered into a Technology License Agreement (Viridian Agreement) with Viridian Therapeutics, Inc. (Viridian), in which we provided Viridian a non-exclusive license to our Xtend Fc technology and an exclusive license to apply our Xtend Fc technology to antibodies targeting IGF-1R. Viridian is responsible for all development and commercialization activities. We received an upfront payment of shares of Viridian common stock valued at $6.0 million and are eligible to receive development, regulatory and sales milestones. We are also eligible to receive royalties in the mid-single digit percentage range on net sales of approved products. The Company allocated $6.0 million of the transaction price to the licenses to the Xtend Fc technology and recognized income for the licenses at inception of the arrangement when Viridian began benefiting access to it. In December 2021, we entered into a second Technology License Agreement (Second Viridian Agreement) with Viridian for a non-exclusive license to certain antibody libraries developed by us. Under the Second Viridian Agreement, Viridian received a one-year research license to review the antibodies and the right to select up to three antibodies for further development. Viridian is responsible for all further development of the selected antibodies. We received an upfront payment shares of Viridian common stock valued at $7.5 million and are eligible to receive up to $24.8 million in milestones, which include $1.8 million in development milestones, $3.0 million in regulatory milestones and $20.0 million in sales milestones in addition to royalties on net sales of approved products under the Second Viridian Agreement. The Company evaluated the Second Viridian Agreement under the revenue recognition standard ASC 606 and identified the following performance obligation that it deemed to be distinct at the inception of the contract: • non-exclusive license to certain antibody libraries created by the Company The Company considered the license as functional intellectual property as Viridian |
401(k) Plan
401(k) Plan | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
401(k) Plan | 401(k) PlanWe have a 401(k) plan covering all full-time employees. Employees may make pre-tax contributions up to the maximum allowable by the Internal Revenue Code. Effective January 1, 2018, the Company contributes 100% of the first 1% of participating employees’ contribution and 50% of the next 5% of participating employees’ contribution, for a maximum of 3.5% employer contribution. Effective March 31, 2020, the Company contributes 100% of the first 1% of participating employees’ contribution and 50% of the next 6% of participating employees’ contribution, for a maximum of 4.0% of employer contribution. Participants are immediately vested in their employee contributions; employer contributions are vested over a three-year period with one-third for each year of a participating employee’s service. Employer contributions made for the years ended December 31, 2022, 2021, and 2020 were $1.4 million, $1.1 million, and $0.8 million, respectively. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Polices) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Company’s financial statements as of December 31, 2022, 2021, and 2020 and for the years then ended have been prepared in accordance with accounting principles generally accepted in the United States (U.S.). |
Use of Estimates | Use of Estimates The preparation of 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, evaluation of intangible assets, investments, leases and other assets for evidence of impairment, fair value measurements, and contingencies. Significant estimates in these financial statements include estimates made for royalty revenue, accrued research and development expenses, stock-based compensation expenses, intangible assets, incremental borrowing rate for right-of-use asset and lease liability, 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. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Pronouncements Not yet Effective In June 2022, the Financial Accounting Standards Board (FASB) issued ASU No. 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restriction s, which is effective for fiscal years beginning on and after December 15, 2023, and interim periods within those fiscal years. The standard clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and is not considered in measuring fair value. The Company does not anticipate that the standard will have a significant impact on its financial statements. |
Revenue Recognition | Revenue Recognition We have, to date, earned revenue from research and development collaborations, which may include research and development services, licenses of our internally developed technologies, licenses of our internally developed drug candidates, or combinations of these. The terms of our license, research and development, and collaboration agreements generally include non-refundable upfront payments, research funding, co-development payments and reimbursements, license fees, and milestone and other contingent payments to us for the achievement of defined collaboration objectives and certain clinical, regulatory and sales-based events, as well as royalties on sales of any commercialized products. The terms of our licensing agreements include non-refundable upfront fees, annual licensing fees, and contractual payment obligations for the achievement of pre-defined preclinical, clinical, regulatory and sales-based events by our partners. The licensing agreements also include royalties on sales of any commercialized products by our partners. We recognize revenue through the five-step process in accordance with Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers , when control of the promised goods or services is transferred to our customers in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. |
Deferred Revenue | Deferred RevenueDeferred revenue arises from payments received in advance of the culmination of the earnings process. We have classified deferred revenue for which we stand ready to perform within the next 12 months as a current liability. We recognize deferred revenue as revenue in future periods when the applicable revenue recognition criteria have been met. |
Accounts Receivable | Accounts Receivable Accounts receivable primarily consists of royalty and milestone revenues receivable from our license and collaboration agreements, as well as receivables arising from cost-sharing development activities. We did not record an allowance for doubtful accounts at December 31, 2022 or 2021, as we expect to collect all receivables within the terms, which are generally between 30 and 60 days. |
Research and Development Expenses | Research and Development Expenses Research and development expenses include costs we incur for our own and for our collaborators’ research and development activities. Research and development costs are expensed as incurred. These costs consist primarily of salaries and benefits, including associated stock-based compensation, laboratory supplies, facility costs, and applicable overhead expenses of personnel directly involved in the research and development of new technology and products, as well as fees paid to other entities that conduct certain research and development activities on our behalf. We estimate preclinical study and clinical trial expenses based on the services performed pursuant to the contracts with research institutions and clinical research organizations that conduct and manage preclinical studies and clinical trials on our behalf based on the actual time and expenses they incurred. Further, we accrue expenses related to clinical trials based on the level of patient enrollment and activity according to the related agreement. We monitor patient enrollment levels and related activity to the extent reasonably possible and adjust estimates accordingly. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider cash equivalents to be only those investments which are highly liquid, readily convertible to cash and which mature within three months from the date of purchase. |
Marketable Debt and Equity Securities | Marketable Debt 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 and does not intend to sell these securities, and it is not more likely than not the Company will be required to sell the securities before recovery of the amortized cost basis. 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 years ended in December 31, 2022 and 2021, respectively. Accrued interest on marketable debt securities is included in marketable securities’ carrying value. Accrued interest was $1.3 million and $0.8 million at December 31, 2022 and 2021, respectively. 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. During the years ended December 31, 2022 and 2021, the Company recorded an unrealized loss of $5.4 million and $1.6 million, respectively, in its portfolio of marketable debt securities. The unrealized losses were due to the changing interest rate environment and are not due to changes in the credit quality of the underlying securities. The unrealized losses were recorded in other comprehensive income (loss) for the years then ended. The Company receives equity securities in connection with certain licensing transactions with its partners. These investments in an equity security 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 remeasures 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 gains or losses on the sale of the securities will be recognized within other income (expense) in the Statement of Comprehensive Income (Loss) in the period of sale. The Company also has investments in equity securities without a readily determinable fair value, where the Company elects the measurement alternative to record at their 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. During the years ended December 31, 2022 and 2021, the Company recorded an impairment charge of $0.1 million and $0.8 million, respectively, in connection with equity securities without a readily determinable fair value. |
Concentrations of Risk | Concentrations of Risk Cash, cash equivalents, and marketable debt securities are financial instruments that potentially subject the Company to concentrations of risk. We invest our cash in corporate debt securities and U.S. sponsored agencies with strong credit ratings. We have established guidelines relative to diversification and maturities that are designed to help ensure safety and liquidity. These guidelines are periodically reviewed to take advantage of trends in yields and interest rates. Cash and cash equivalents are maintained at financial institutions, and at times, balances may exceed federally insured limits. We have never experienced any losses related to these balances. Amounts on deposit in excess of federally insured limits at December 31, 2022 and 2021 approximated $53.6 million and $143.2 million, respectively. We have payables with two service providers that represent 45% of our total payables and with four service providers that represented 64% of our total payables at December 31, 2022 and 2021, respectively. We rely on five critical suppliers for the manufacture of our drug product for use in our clinical trials. While we believe that there are alternative vendors available, a change in manufacturing vendors could cause a delay in the availability of drug product and result in a delay of conducting and completing our clinical trials. No other vendor accounted for more than 10% of total payables at December 31, 2022 or 2021. We have receivables with four service providers that represent 91% of our total receivables and with two service providers that represent 84% of our total receivables at December 31, 2022 and 2021, respectively. The receivables are related to royalty revenues from our licensing and collaboration agreements. No other customer accounted for more than 10% of total receivables at December 31, 2022 or 2021. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Our financial instruments primarily consist of cash and cash equivalents, marketable debt securities, accounts receivable, accounts payable, and accrued expenses. Marketable debt securities and cash equivalents are carried at fair value. The fair value of a financial instrument is the amount that would be received in an asset sale or paid to transfer a liability in an orderly transaction between unaffiliated market participants. The fair value of the other financial instruments closely approximate their fair value due to their short maturities. The Company accounts for recurring and non-recurring fair value measurements in accordance with FASB ASC 820, Fair Value Measurements and Disclosures . ASC 820 defines fair value, establishes a fair value hierarchy for assets and liabilities measured at fair value, and requires expanded disclosure about fair value measurements. The ASC 820 hierarchy ranks the quality of reliable inputs, or assumptions, used in the determination of fair value and requires assets and liabilities carried at fair value to be classified and disclosed in one of the following three categories: Level 1— Fair value is determined by using unadjusted quoted prices that are available in active markets for identical assets or liabilities. Level 2— Fair value is determined by using inputs other than Level 1 quoted prices that are directly or indirectly observable. Inputs can include quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in markets that are not active. Related inputs can also include those used in valuation or other pricing models, such as interest rates and yield curves that can be corroborated by observable market data. Level 3— Fair value is determined by inputs that are unobservable and not corroborated by market data. Use of these inputs involves significant and subjective judgments to be made by the reporting entity – e.g. determining an appropriate discount factor for illiquidity associated with a given security. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets. Expenditures for repairs and maintenance are charged to expense as incurred, while renewals and improvements are capitalized. Useful lives by asset category are as follows: Computers, software and equipment 3 - 5 years Furniture and fixtures 5 - 7 years Leasehold improvements 5 - 7 years or remaining lease term, whichever is less |
Patents, Licenses, and Other Intangible Assets | Patents, Licenses, and Other Intangible AssetsThe cost of acquiring licenses is capitalized and amortized on the straight-line basis over the shorter of the term of the license or its estimated economic life, ranging from 1 to 18 years. Third-party costs incurred for acquiring patents are capitalized. Capitalized costs are accumulated until the earlier of the period that a patent is issued, or we abandon the patent claims. Cumulative capitalized patent costs are amortized on a straight-line basis from the date of issuance over the shorter of the patent term or the estimated useful economic life of the patent, ranging from 3 to 27 years. Our senior management, with advice from outside patent counsel, assesses three primary criteria to determine if a patent will be capitalized initially: i) technical feasibility, ii) magnitude and scope of new technical function covered by the patent compared to the company’s existing technology and patent portfolio, particularly assessing the value added to our product candidates or licensing business, and iii) legal issues, primarily assessment of patentability and prosecution cost. We review our intellectual property on a regular basis to determine if there are changes in the estimated useful life of issued patents and if any capitalized costs for unissued patents should be abandoned. Capitalized patent costs related to abandoned patent filings are charged off in the period of the decision to abandon. |
Long-Lived Assets | Long-Lived AssetsManagement reviews long-lived assets which include fixed assets and amortizable intangibles for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset (or asset group) may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets. |
Income Taxes | Income Taxes We account for income taxes in accordance with accounting guidance which requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed annually for differences between the financial statement and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense is the tax payable or refundable for the period plus or minus the change during the period in deferred tax assets and liabilities. We assess our income tax positions and record tax benefits for all years subject to examination based upon our evaluation of the facts, circumstances, and information available at the reporting date. For those tax positions where there is greater than 50% likelihood that a tax benefit will be sustained, we have recorded the largest amount of tax benefit that may potentially be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where there is a 50% or less likelihood that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. We did not have any material uncertain tax positions at December 31, 2022 or 2021. Our policy is to recognize interest and penalties on taxes, if any, as a component of income tax expense. The Tax Cuts and Jobs Act of 2017 (TCJA) enacted on December 22, 2017 included several key provisions impacting the accounting for and reporting of income taxes. The most significant provisions reduced the U.S. corporate statutory tax rate from 35% to 21%, eliminated the corporate Alternative Minimum Tax (AMT) system, and made changes to the carryforward of net operating losses beginning on January 1, 2018. The TCJA changed the income tax treatment of research and development expenses requiring such costs to be capitalized and amortized over several years beginning effective January 1, 2022. The tax reform also provided for a refund of unused AMT carryforwards for years beginning after December 31, 2017. We received an income tax refund during the year ended December 31, 2020 of $0.8 million each year related to our federal AMT carryforwards. |
Stock-Based Compensation | Stock-Based CompensationWe recognize compensation expense using a fair-value-based method for costs related to all share-based payments, including stock options, restricted stock units (RSUs), and shares issued under our Employee Stock Purchase Plan (ESPP). Stock-based compensation cost related to employees and directors is measured at the grant date, based on the fair-value-based measurement of the award using the Black-Scholes method, and is recognized as expense over the requisite service period on a straight-line basis. We account for forfeitures when they occur. |
Net Income (Loss) Per Share | Net Income (Loss) Per 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: Basic net income (loss) per common share is computed by dividing the net income or loss by the weighted-average number of common shares outstanding during the period. Potentially dilutive securities were included in the diluted net income per common share calculation for 2021. In 2022 and 2020, we excluded all options and awards from the calculations because we reported net losses in the period, and the inclusion of such shares would have had an antidilutive effect. |
Segment Reporting | Segment Reporting The Company determines its segment reporting based upon the way the business is organized for making operating decisions and assessing performance. The Company has only one operating segment related to the development of pharmaceutical products. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of assets recorded at fair value | The assets recorded at fair value are classified within the hierarchy as follows for the periods reported (in thousands): December 31, 2022 Total Level 1 Level 2 Level 3 Money Market Funds in Cash and Cash Equivalents $ 40,967 $ 40,967 $ — $ — Corporate Securities 200,626 — 200,626 — Government Securities 329,889 — 329,889 — $ 571,482 $ 40,967 $ 530,515 $ — December 31, 2021 Total Level 1 Level 2 Level 3 Money Market Funds in Cash and Cash Equivalents $ 123,892 $ 123,892 $ — $ — Corporate Securities 144,418 — 144,418 — Government Securities 309,814 — 309,814 — $ 578,124 $ 123,892 $ 454,232 $ — |
Schedule of useful lives by asset category | Useful lives by asset category are as follows: Computers, software and equipment 3 - 5 years Furniture and fixtures 5 - 7 years Leasehold improvements 5 - 7 years or remaining lease term, whichever is less |
Schedule of finite-lived intangible assets | The carrying amount and accumulated amortization of patents, licenses, and other intangibles is as follows (in thousands): December 31, 2022 2021 Patents, definite life $ 14,535 $ 13,231 Patents, pending issuance 9,328 8,821 Licenses and other amortizable intangible assets 3,908 2,474 Nonamortizable intangible assets (trademarks) 399 399 Total gross carrying amount 28,170 24,925 Accumulated amortization—patents (7,781) (6,800) Accumulated amortization—licenses and other (1,889) (1,632) Total intangible assets, net $ 18,500 $ 16,493 |
Schedule of indefinite-lived intangible assets | The carrying amount and accumulated amortization of patents, licenses, and other intangibles is as follows (in thousands): December 31, 2022 2021 Patents, definite life $ 14,535 $ 13,231 Patents, pending issuance 9,328 8,821 Licenses and other amortizable intangible assets 3,908 2,474 Nonamortizable intangible assets (trademarks) 399 399 Total gross carrying amount 28,170 24,925 Accumulated amortization—patents (7,781) (6,800) Accumulated amortization—licenses and other (1,889) (1,632) Total intangible assets, net $ 18,500 $ 16,493 |
Future amortization expense for patents, licenses, and other intangible assets | Future amortization expense for patent, licenses, and other intangible assets recorded as of December 31, 2022, and for which amortization has commenced, is as follows: Year ended (in thousands) 2023 $ 1,165 2024 1,123 2025 1,110 2026 1,097 2027 1,096 Thereafter 3,181 Total $ 8,772 |
Schedule of basic and diluted net income (loss) per common share | Basic and diluted net income (loss) per common share is computed as follows: Basic net income (loss) per common share is computed by dividing the net income or loss by the weighted-average number of common shares outstanding during the period. Potentially dilutive securities were included in the diluted net income per common share calculation for 2021. In 2022 and 2020, we excluded all options and awards from the calculations because we reported net losses in the period, and the inclusion of such shares would have had an antidilutive effect. Year Ended December 31, 2022 2021 2020 (in thousands, except share and per share data) Basic Numerator: Net income (loss) attributable to common stockholders for basic net income (loss) per share $ (55,181) $ 82,631 $ (69,333) Denominator: Weighted-average common shares outstanding 59,652,461 58,379,641 57,212,737 Basic net income (loss) per common share $ (0.93) $ 1.42 $ (1.21) Diluted Numerator: Net income (loss) attributable to common stockholders for diluted net income (loss) per share $ (55,181) $ 82,631 $ (69,333) Denominator: Weighted average number of common shares outstanding used in computing basic net income (loss) per common share 59,652,461 58,379,641 57,212,737 Dilutive effect of employee stock options, RSUs, and ESPP — 2,115,814 — Weighted-average number of common shares outstanding used in computing diluted net income (loss) per common share 59,652,461 60,495,455 57,212,737 Diluted net income (loss) per common share $ (0.93) $ 1.37 $ (1.21) |
Marketable Debt and Equity Se_2
Marketable Debt and Equity Securities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Marketable Securities [Abstract] | |
Schedule of marketable securities | The Company’s marketable debt securities held as of December 31, 2022 and 2021 are summarized below: December 31, 2022 Amortized Gross Gross Fair Value (in thousands) Money Market Funds $ 40,967 $ — $ — $ 40,967 Corporate Securities 201,752 — (1,126) 200,626 Government Securities 335,705 3 (5,819) 329,889 $ 578,424 $ 3 $ (6,945) $ 571,482 Reported as Cash and cash equivalents $ 40,967 Marketable securities 530,515 Total investments $ 571,482 December 31, 2021 Amortized Gross Gross Fair Value (in thousands) Money Market Funds $ 123,892 $ — $ — $ 123,892 Corporate Securities 144,584 — (166) 144,418 Government Securities 311,148 1 (1,335) 309,814 $ 579,624 $ 1 $ (1,501) $ 578,124 Reported as Cash and cash equivalents $ 123,892 Marketable securities 454,232 Total investments $ 578,124 |
Schedule of maturities of marketable securities | The maturities of the Company’s marketable debt securities as of December 31, 2022 are as follows: Amortized Estimated (in thousands) Mature in one year or less $ 533,626 $ 526,689 Mature within two years 3,831 3,826 $ 537,457 $ 530,515 |
Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value | The unrealized losses on available-for-sale investments and their related fair values as of December 31, 2022 and 2021 are as follows: December 31, 2022 Less than 12 months 12 months or greater Fair value Unrealized losses Fair value Unrealized losses (in thousands) Corporate Securities $ 132,658 $ (1,121) $ 3,826 $ (5) Government Securities 324,933 (5,819) — — $ 457,591 $ (6,940) $ 3,826 $ (5) December 31, 2021 Less than 12 months 12 months or greater Fair value Unrealized losses Fair value Unrealized losses (in thousands) Corporate Securities $ 50,337 $ (51) $ 45,872 $ (115) Government Securities 39,909 (54) 254,593 (1,281) $ 90,246 $ (105) $ 300,465 $ (1,396) |
Schedule of equity securities with readily determinable fair value | Equity securities with a readily determinable fair value and their fair values (in thousands) as of December 31, 2022 and 2021 are as follows: Fair Value Fair Value Astria Common Stock $ 9,529 $ 3,449 INmune Common Stock 11,954 19,233 Viridian Common Stock 20,948 14,178 $ 42,431 $ 36,860 |
Schedule of equity securities without readily determinable fair value | Equity securities without a readily determinable fair value and their carrying values (in thousands) as of December 31, 2022 and 2021 are as follows: Carrying Value Carrying Value Astria Preferred Stock $ 174 $ 312 Zenas Preferred Stock 54,209 30,950 $ 54,383 $ 31,262 |
Schedule of net gains and losses | Unrealized gains and losses recognized on equity securities (in thousands) during the year ended December 31, 2022 and 2021 consist of the following: Year Ended December 31, 2022 2021 Net gains recognized on equity securities $ 23,434 $ 39,289 Less: net gains recognized on equity securities redeemed — 18,301 Unrealized gain (losses) recognized on equity securities $ 23,434 $ 20,988 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | Property and equipment consist of the following: December 31, 2022 2021 (in thousands) Computers, software and equipment $ 45,159 $ 41,955 Furniture and fixtures 539 539 Leasehold and tenant improvements 41,774 8,574 Total gross carrying amount 87,472 51,068 Less accumulated depreciation and amortization (28,289) (22,828) Total property and equipment, net $ 59,183 $ 28,240 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of the federal statutory income tax rate to our effective income tax rate | A reconciliation of the federal statutory income tax to our effective income tax is as follows (in thousands): Year Ended 2022 2021 2020 Federal statutory income tax $ (11,447) $ 17,352 $ (14,559) State and local income taxes (615) 783 (4,659) Research and development credit (9,366) (10,492) (9,669) Stock-based compensation 3,384 2,424 529 Foreign-derived intangible income (1,449) — — Other (74) 95 56 Change in state rate 44 2,599 — Net change in valuation allowance 20,196 (12,761) 28,302 Income tax provision $ 673 $ — $ — |
Schedule of tax effect of temporary differences that give rise to a significant portion of the deferred tax assets and liabilities | The tax effect of temporary differences that give rise to a significant portion of the deferred tax assets and liabilities at December 31, 2022 and 2021 is presented below (in thousands): December 31, 2022 2021 Deferred income tax assets Net operating loss carryforwards $ 32,898 $ 46,629 Research credits 54,825 48,128 Unrealized loss on securities 1,573 327 Capitalized lease assets 5,564 489 Accrued compensation 14,484 9,207 Capitalized research and development costs 21,338 — Gross deferred income tax assets 130,682 104,780 Valuation allowance (115,010) (93,580) Net deferred income tax assets 15,672 11,200 Deferred income tax liabilities Patent costs (2,885) (3,416) Deferred revenue 3,225 (3,508) Licensing costs (124) (151) Capitalized legal costs (9) (13) Depreciation (6,532) (288) Unrealized gain on securities (9,347) (3,824) Gross deferred income tax liabilities (15,672) (11,200) Net deferred income tax asset $ — $ — |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of total employee, director and non-employee stock-based compensation expense recognized | Total employee, director and non-employee stock-based compensation expense recognized was as follows: Year Ended (in thousands) 2022 2021 2020 General and administrative $ 17,281 $ 12,813 $ 10,769 Research and development 31,632 24,162 20,850 $ 48,913 $ 36,975 $ 31,619 Year Ended (in thousands) 2022 2021 2020 Stock options $ 29,758 $ 27,909 $ 26,045 ESPP 1,174 992 804 RSUs 17,981 8,074 4,770 $ 48,913 $ 36,975 $ 31,619 |
Schedule of stock options outstanding | Information with respect to stock options outstanding is as follows: December 31, 2022 2021 2020 Exercisable options 6,679,948 5,576,430 4,668,179 Weighted average exercise price per share of exercisable options $ 26.99 $ 24.15 $ 21.75 Weighted average grant date fair value per share of options granted during the year $ 15.45 $ 21.65 $ 16.96 Options available for future grants 3,622,319 3,597,371 3,346,092 Weighted average remaining contractual life 6.30 6.65 7.00 |
Summary of stock option activity | The following table summarizes stock option activity for the years ended December 31, 2022 and 2021: Number of Weighted- Average Exercise Price (Per Share) (1) Weighted- Aggregate Intrinsic Value (in thousands) (2) Balances at December 31, 2019 7,174,319 $ 24.03 7.32 $ 79,116 Options granted 1,679,324 33.08 Options forfeited (243,384) 32.93 Options exercised (3) (858,470) 19.36 Balances at December 31, 2020 7,751,789 26.23 7.00 $ 134,941 Options granted 1,827,234 41.22 Options forfeited (382,454) 36.15 Options exercised (3) (520,240) 23.61 Balances at December 31, 2021 8,676,329 29.11 6.65 $ 100,057 Options granted 2,135,233 29.45 Options forfeited (533,435) 34.09 Options exercised (3) (195,485) 18.46 Balances at December 31, 2022 10,082,642 $ 29.12 6.30 $ 27,141 As of December 31, 2022 Options vested and expected to vest 10,082,642 $ 29.12 6.30 $ 27,141 Exercisable 6,679,948 $ 26.99 5.10 $ 26,979 ______________________________ (1) The weighted average exercise price per share is determined using exercise price per share for stock options. (2) The aggregate intrinsic value is calculated as the difference between the exercise price of the option and the fair value of our common stock for in-the-money options at December 31, 2022 and 2021. |
Schedule of weighted average assumptions used for estimation of fair value of stock options | The fair value of employee stock options was estimated using the following weighted average assumptions for the years ended December 31, 2022, 2021 and 2020: Options 2022 2021 2020 Common stock fair value per share $19.74 - 38.08 $30.65- 49.47 $20.69 - 45.91 Expected volatility 51.51% - 54.36% 53.91% - 56.82% 52.93% - 58.95% Risk-free interest rate 1.57% - 4.34% 0.47% - 1.33% 0.29% - 1.71% Expected dividend yield — — — Expected term (in years) 6.00 - 7.65 6.00 - 7.65 5.23 - 7.65 |
Schedule of weighted average assumptions used for estimation of fair value of ESPP | The fair value of employee stock options was estimated using the following weighted average assumptions for the years ended December 31, 2022, 2021 and 2020: ESPP 2022 2021 2020 Expected term (years) 0.5 - 2.0 0.5 - 2.0 0.5 - 2.0 Expected volatility 43.19% - 55.72% 46.08% - 66.37% 50.77% - 66.37% Risk-free interest rate 0.13% - 4.72% 0.04% - 1.65% 0.09% - 1.65% Expected dividend yield — — — |
Summary of restricted stock unit activity | The following table summarizes RSU activity for the years ended December 31, 2022: Number of Weighted- Unvested at December 31, 2019 90,006 $ 34.66 Granted 348,288 32.51 Vested (62,355) 32.61 Forfeited (17,114) 32.33 Unvested at December 31, 2020 358,825 $ 33.04 Granted 670,700 39.11 Vested (151,555) 32.76 Forfeited (51,822) 36.68 Unvested at December 31, 2021 826,148 $ 37.79 Granted 875,330 29.45 Vested (341,073) 37.37 Forfeited (127,854) 33.66 Unvested at December 31, 2022 1,232,551 $ 32.41 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of operating lease liabilities maturities | The following table reconciles the undiscounted cash flows for the operating leases at December 31, 2022 to the operating lease liabilities recorded on the balance sheet (in thousands): Years ending December 31, 2023 $ 6,558 2024 6,072 2025 7,392 2026 8,589 2027 8,829 Thereafter 75,512 Total undiscounted lease payments 112,952 Less: Tenant allowance (5,459) Less: Imputed interest (47,859) Present value of lease payments $ 59,634 Lease liabilities - short-term $ 4,708 Lease liabilities - long-term 54,926 Total lease liabilities $ 59,634 |
Summary of lease costs and cash disclosures | The following table summarizes lease costs, cash, and other disclosures for the years ended December 31, 2022, 2021, and 2020 (in thousands): Year Ended 2022 2021 2020 Operating lease cost $ 6,588 $ 4,342 $ 2,503 Variable lease cost 506 58 150 Total lease costs $ 7,094 $ 4,400 $ 2,653 Cash paid for amounts included in the measurement of lease liabilities $ 2,869 $ 2,773 $ 2,233 Weighted-average remaining lease term —operating leases (in years) 12.0 12.3 7.4 Weighted-average discount rate —operating leases 8.9 % 5.8 % 5.5 % |
Collaboration and Licensing A_2
Collaboration and Licensing Agreements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Collaboration and Licensing Agreements | |
Schedule of revenue by licensees | The $164.6 million, $275.1 million, and $122.7 million of revenue recorded for the years ended December 31, 2022, 2021, and 2020, respectively, were earned principally from the following licensees (in millions): Year Ended 2022 2021 2020 Aimmune $ — $ — $ 9.6 Alexion 29.4 22.2 26.2 Astellas 5.0 — 3.5 Genentech — 2.5 3.5 Gilead — — 13.5 Janssen 7.0 113.8 — MorphoSys 7.8 18.4 39.0 Novartis — 43.1 — Omeros — — 5.0 Vir 115.4 52.7 0.3 Viridian — 7.5 6.0 Zenas — 14.9 16.1 Total $ 164.6 $ 275.1 $ 122.7 |
Schedule of disaggregation of revenue | The table below summarizes the disaggregation of revenue recorded for the years ended December 31, 2022, 2021, and 2020 (in millions): Year Ended 2022 2021 2020 Research collaboration $ 7.0 $ 93.0 $ 4.5 Milestone 5.5 21.0 50.2 Licensing — 80.8 50.2 Royalties 152.1 80.3 17.8 Total $ 164.6 $ 275.1 $ 122.7 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Deferred Revenue (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accounting Policies [Abstract] | ||
Deferred revenue | $ 30,320 | $ 37,294 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Accounts Receivable (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Minimum | |
Accounts Receivable Collection Period [Line Items] | |
Collection period | 30 days |
Maximum | |
Accounts Receivable Collection Period [Line Items] | |
Collection period | 60 days |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Marketable Debt and Equity Securities (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | |||
Impairment loss or recoveries | $ 0 | $ 0 | |
Accrued interest | 1,300,000 | 800,000 | |
Unrealized loss on marketable debt securities | 5,400,000 | 1,600,000 | |
Equity securities impairment | 100,000 | 800,000 | |
Net gains recognized on equity securities | $ 23,434,000 | $ 39,289,000 | $ 105,000 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Concentrations of Risk (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Concentrations of risk | ||
Amounts on deposit in excess of federally insured limits approximately | $ 53.6 | $ 143.2 |
Accounts Receivable | Customer Concentration Risk | Major Customers | ||
Concentrations of risk | ||
Concentration risk percentage | 91% | 84% |
Accounts Payable | Supplier Concentration Risk | Major Vendors | ||
Concentrations of risk | ||
Concentration risk percentage | 45% | |
Accounts Payable | Supplier Concentration Risk | Top Vendor | ||
Concentrations of risk | ||
Concentration risk percentage | 64% | 64% |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value of Financial Instruments | ||
Money Market Funds in Cash and Cash Equivalents | $ 53,942 | $ 143,480 |
Marketable securities | 530,515 | |
Money Market Funds in Cash and Cash Equivalents | ||
Fair Value of Financial Instruments | ||
Money Market Funds in Cash and Cash Equivalents | 40,967 | 123,892 |
Corporate Securities | ||
Fair Value of Financial Instruments | ||
Marketable securities | 200,626 | 144,418 |
Government Securities | ||
Fair Value of Financial Instruments | ||
Marketable securities | 329,889 | 309,814 |
Fair Value, Recurring | ||
Fair Value of Financial Instruments | ||
Total Fair Value | 571,482 | 578,124 |
Fair Value, Recurring | Money Market Funds in Cash and Cash Equivalents | ||
Fair Value of Financial Instruments | ||
Money Market Funds in Cash and Cash Equivalents | 40,967 | 123,892 |
Fair Value, Recurring | Corporate Securities | ||
Fair Value of Financial Instruments | ||
Marketable securities | 200,626 | 144,418 |
Fair Value, Recurring | Government Securities | ||
Fair Value of Financial Instruments | ||
Marketable securities | 329,889 | 309,814 |
Level 1 | Fair Value, Recurring | ||
Fair Value of Financial Instruments | ||
Total Fair Value | 40,967 | 123,892 |
Level 1 | Fair Value, Recurring | Money Market Funds in Cash and Cash Equivalents | ||
Fair Value of Financial Instruments | ||
Money Market Funds in Cash and Cash Equivalents | 40,967 | 123,892 |
Level 1 | Fair Value, Recurring | Corporate Securities | ||
Fair Value of Financial Instruments | ||
Marketable securities | 0 | 0 |
Level 1 | Fair Value, Recurring | Government Securities | ||
Fair Value of Financial Instruments | ||
Marketable securities | 0 | 0 |
Level 2 | Fair Value, Recurring | ||
Fair Value of Financial Instruments | ||
Total Fair Value | 530,515 | 454,232 |
Level 2 | Fair Value, Recurring | Money Market Funds in Cash and Cash Equivalents | ||
Fair Value of Financial Instruments | ||
Money Market Funds in Cash and Cash Equivalents | 0 | 0 |
Level 2 | Fair Value, Recurring | Corporate Securities | ||
Fair Value of Financial Instruments | ||
Marketable securities | 200,626 | 144,418 |
Level 2 | Fair Value, Recurring | Government Securities | ||
Fair Value of Financial Instruments | ||
Marketable securities | 329,889 | 309,814 |
Level 3 | Fair Value, Recurring | ||
Fair Value of Financial Instruments | ||
Total Fair Value | 0 | 0 |
Level 3 | Fair Value, Recurring | Money Market Funds in Cash and Cash Equivalents | ||
Fair Value of Financial Instruments | ||
Money Market Funds in Cash and Cash Equivalents | 0 | 0 |
Level 3 | Fair Value, Recurring | Corporate Securities | ||
Fair Value of Financial Instruments | ||
Marketable securities | 0 | 0 |
Level 3 | Fair Value, Recurring | Government Securities | ||
Fair Value of Financial Instruments | ||
Marketable securities | $ 0 | $ 0 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Property and Equipment (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Computers, software and equipment | Minimum | |
Property and Equipment | |
Estimated useful lives of the assets | 3 years |
Computers, software and equipment | Maximum | |
Property and Equipment | |
Estimated useful lives of the assets | 5 years |
Furniture and fixtures | Minimum | |
Property and Equipment | |
Estimated useful lives of the assets | 5 years |
Furniture and fixtures | Maximum | |
Property and Equipment | |
Estimated useful lives of the assets | 7 years |
Leasehold improvements | Minimum | |
Property and Equipment | |
Estimated useful lives of the assets | 5 years |
Leasehold improvements | Maximum | |
Property and Equipment | |
Estimated useful lives of the assets | 7 years |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Patents, Licenses, and Other Intangible Assets (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) criteria | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Patents, licenses, and other intangible assets | |||
Number of primary criteria to determine capitalization of patent | criteria | 3 | ||
Abandonment of capitalized intangible assets | $ 1,510 | $ 934 | $ 535 |
Total gross carrying amount | 28,170 | 24,925 | |
Total intangible assets, net | 18,500 | 16,493 | |
Amortization expense for patents, licenses, and other intangible assets | 1,400 | 1,200 | $ 1,100 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
2023 | 1,165 | ||
2024 | 1,123 | ||
2025 | 1,110 | ||
2026 | 1,097 | ||
2027 | 1,096 | ||
Thereafter | 3,181 | ||
Total | 8,772 | ||
Nonamortizable intangible assets (trademarks) | |||
Patents, licenses, and other intangible assets | |||
Nonamortizable intangible assets (trademarks) | $ 399 | 399 | |
Licensing Agreements | Minimum | |||
Patents, licenses, and other intangible assets | |||
Estimated economic life | 1 year | ||
Licensing Agreements | Maximum | |||
Patents, licenses, and other intangible assets | |||
Estimated economic life | 18 years | ||
Patents | |||
Patents, licenses, and other intangible assets | |||
Accumulated amortization | $ (7,781) | (6,800) | |
Patents | Minimum | |||
Patents, licenses, and other intangible assets | |||
Estimated economic life | 3 years | ||
Patents | Maximum | |||
Patents, licenses, and other intangible assets | |||
Estimated economic life | 27 years | ||
Patents, definite life | |||
Patents, licenses, and other intangible assets | |||
Amortizable intangible assets | $ 14,535 | 13,231 | |
Patents, pending issuance | |||
Patents, licenses, and other intangible assets | |||
Amortizable intangible assets | 9,328 | 8,821 | |
Licenses and other amortizable intangible assets | |||
Patents, licenses, and other intangible assets | |||
Amortizable intangible assets | 3,908 | 2,474 | |
Accumulated amortization | $ (1,889) | $ (1,632) |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Income Taxes (Details) $ in Millions | Dec. 31, 2020 USD ($) |
Domestic Tax Authority | |
Income Taxes [Line Items] | |
Income tax refund | $ 0.8 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Stock-Based Compensation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Stock-Based Compensation | |||
Stock-based compensation | $ 48.9 | $ 37 | $ 31.6 |
Summary of Significant Accou_13
Summary of Significant Accounting Policies - Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Numerator: | |||
Net income (loss) attributable to common stockholders for basic net income (loss) per share | $ (55,181) | $ 82,631 | $ (69,333) |
Denominator: | |||
Weighted-average common shares outstanding, basic (in shares) | 59,652,461 | 58,379,641 | 57,212,737 |
Net income (loss) per common share, basic (in dollars per share) | $ (0.93) | $ 1.42 | $ (1.21) |
Numerator: | |||
Net income (loss) attributable to common stockholders for diluted net income (loss) per share | $ (55,181) | $ 82,631 | $ (69,333) |
Denominator: | |||
Weighted-average common shares outstanding, basic (in shares) | 59,652,461 | 58,379,641 | 57,212,737 |
Dilutive effect of employee stock options and ESPP (in shares) | 0 | 2,115,814 | 0 |
Weighted-average common shares outstanding, diluted (in shares) | 59,652,461 | 60,495,455 | 57,212,737 |
Net income (loss) per common share, diluted (in dollars per share) | $ (0.93) | $ 1.37 | $ (1.21) |
Securities excluded in calculation of EPS (in shares) | 1,196,268 |
Summary of Significant Accou_14
Summary of Significant Accounting Policies - Segments (Details) | 12 Months Ended |
Dec. 31, 2022 segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Marketable Debt and Equity Se_3
Marketable Debt and Equity Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Available-for-sale Securities | ||
Money Market Funds in Cash and Cash Equivalents | $ 53,942 | $ 143,480 |
Amortized Cost | 537,457 | |
Amortized Cost | 578,424 | 579,624 |
Gross Unrealized Gains | 3 | 1 |
Gross Unrealized Losses | (6,945) | (1,501) |
Marketable securities | 530,515 | |
Total investments | 571,482 | 578,124 |
Money Market Funds in Cash and Cash Equivalents | ||
Schedule of Available-for-sale Securities | ||
Money Market Funds in Cash and Cash Equivalents | 40,967 | 123,892 |
Corporate Securities | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost | 201,752 | 144,584 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (1,126) | (166) |
Marketable securities | 200,626 | 144,418 |
Government Securities | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost | 335,705 | 311,148 |
Gross Unrealized Gains | 3 | 1 |
Gross Unrealized Losses | (5,819) | (1,335) |
Marketable securities | 329,889 | 309,814 |
Cash and cash equivalents | ||
Schedule of Available-for-sale Securities | ||
Money Market Funds in Cash and Cash Equivalents | 40,967 | 123,892 |
Marketable securities | ||
Schedule of Available-for-sale Securities | ||
Marketable securities | $ 530,515 | $ 454,232 |
Marketable Debt and Equity Se_4
Marketable Debt and Equity Securities - Maturities (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Amortized Cost | |
Mature in one year or less | $ 533,626 |
Mature within two years | 3,831 |
Amortized Cost | 537,457 |
Estimated Fair Value | |
Mature in one year or less | 526,689 |
Mature within two years | 3,826 |
Estimated Fair Value | $ 530,515 |
Marketable Debt and Equity Se_5
Marketable Debt and Equity Securities - Unrealized Losses (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Available-for-sale Securities | ||
Fair value, less than 12 months | $ 457,591 | $ 90,246 |
Unrealized losses, less than 12 months | (6,940) | (105) |
Fair value, 12 months or greater | 3,826 | 300,465 |
Unrealized losses, 12 months or greater | (5) | (1,396) |
Corporate Securities | ||
Schedule of Available-for-sale Securities | ||
Fair value, less than 12 months | 132,658 | 50,337 |
Unrealized losses, less than 12 months | (1,121) | (51) |
Fair value, 12 months or greater | 3,826 | 45,872 |
Unrealized losses, 12 months or greater | (5) | (115) |
Government Securities | ||
Schedule of Available-for-sale Securities | ||
Fair value, less than 12 months | 324,933 | 39,909 |
Unrealized losses, less than 12 months | (5,819) | (54) |
Fair value, 12 months or greater | 0 | 254,593 |
Unrealized losses, 12 months or greater | $ 0 | $ (1,281) |
Marketable Debt and Equity Se_6
Marketable Debt and Equity Securities - Equity Securities with Readily Determinable Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Equity Securities | ||
Equity securities with readily determinable fair value | $ 42,431 | $ 36,860 |
Common Stock | ||
Equity Securities | ||
Equity securities with readily determinable fair value | 42,431 | 36,860 |
Astria/Catabasis | Common Stock | ||
Equity Securities | ||
Equity securities with readily determinable fair value | 9,529 | 3,449 |
INmune | Common Stock | ||
Equity Securities | ||
Equity securities with readily determinable fair value | 11,954 | 19,233 |
Viridian | Common Stock | ||
Equity Securities | ||
Equity securities with readily determinable fair value | $ 20,948 | $ 14,178 |
Marketable Debt and Equity Se_7
Marketable Debt and Equity Securities - Equity Securities without Readily Determinable Fair Value (Details) - Preferred Stock - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Equity securities without readily determinable fair value | ||
Equity securities without readily determinable fair value | $ 54,383 | $ 31,262 |
Astria/Catabasis | ||
Equity securities without readily determinable fair value | ||
Equity securities without readily determinable fair value | 174 | 312 |
Zenas | ||
Equity securities without readily determinable fair value | ||
Equity securities without readily determinable fair value | $ 54,209 | $ 30,950 |
Marketable Debt and Equity Se_8
Marketable Debt and Equity Securities - Equity Securities Transactions (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Sep. 30, 2021 | Jun. 30, 2021 | Nov. 30, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Equity Securities | ||||||
Equity securities impairment | $ 100 | $ 800 | ||||
Net gains recognized on equity securities | 23,434 | 39,289 | $ 105 | |||
Astria/Catabasis | Preferred Stock | ||||||
Equity Securities | ||||||
Equity securities impairment | 100 | $ 800 | ||||
Zenas | Warrant | Notes Receivable | ||||||
Equity Securities | ||||||
Unrealized gain on warrant exchange and conversion of promissory note | $ 21,900 | |||||
License Agreement | INmune | ||||||
Equity Securities | ||||||
Cash consideration on sale of option | $ 15,000 | |||||
License Agreement | INmune | Common Stock | ||||||
Equity Securities | ||||||
Cash consideration on sale of option | $ 15,000 | |||||
Number of shares acquired | 108,000 | |||||
Purchase amount of share options or equity in noncash transaction | $ 800 | |||||
Net gains recognized on equity securities | $ 900 | |||||
License Agreement | Zenas | ||||||
Equity Securities | ||||||
Purchase amount of share options or equity in noncash transaction | $ 16,100 |
Marketable Debt and Equity Se_9
Marketable Debt and Equity Securities - Net Gains and Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Marketable Securities [Abstract] | |||
Net gains recognized on equity securities | $ 23,434 | $ 39,289 | $ 105 |
Less: net gains recognized on equity securities redeemed | 0 | 18,301 | |
Unrealized gain (losses) recognized on equity securities | $ 23,434 | $ 20,988 | $ 105 |
Sale of Additional Common Sto_2
Sale of Additional Common Stock (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Oct. 01, 2021 USD ($) d $ / shares shares | Dec. 31, 2021 USD ($) shares | |
Proceeds from sale of common stock | $ 28,920 | |
Second Collaboration And License Agreement | Common Stock | Johnson & Johnson Innovation, JJDC, Inc. | ||
Proceeds from sale of common stock | $ 25,000 | |
Number of trading days | d | 30 | |
Weighted average price (in dollars per share) | $ / shares | $ 33.4197 | |
Total equity shares (in shares) | shares | 748,062 | |
Common Stock | ||
Proceeds from sale of common stock | $ 7 | |
Total equity shares (in shares) | shares | 748,062 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property and Equipment | |||
Total gross carrying amount | $ 87,472 | $ 51,068 | |
Less accumulated depreciation and amortization | (28,289) | (22,828) | |
Total property and equipment, net | 59,183 | 28,240 | |
Depreciation expense | 7,400 | 6,300 | $ 4,700 |
Computers, software and equipment | |||
Property and Equipment | |||
Total gross carrying amount | 45,159 | 41,955 | |
Furniture and fixtures | |||
Property and Equipment | |||
Total gross carrying amount | 539 | 539 | |
Leaseholds and Leasehold Improvements [Member] | |||
Property and Equipment | |||
Total gross carrying amount | $ 41,774 | $ 8,574 |
Income Taxes - Reconciliation t
Income Taxes - Reconciliation to effective income tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of federal statutory income tax to effective income tax | |||
Federal statutory income tax | $ (11,447) | $ 17,352 | $ (14,559) |
State and local income taxes | (615) | 783 | (4,659) |
Research and development credit | (9,366) | (10,492) | (9,669) |
Stock-based compensation | 3,384 | 2,424 | 529 |
Foreign-derived intangible income | (1,449) | 0 | 0 |
Other | (74) | 95 | 56 |
Change in state rate | 44 | 2,599 | 0 |
Net change in valuation allowance | 20,196 | (12,761) | 28,302 |
Income tax provision | $ 673 | $ 0 | $ 0 |
Income Taxes - Deferred tax ass
Income Taxes - Deferred tax assets and liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred income tax assets | ||
Net operating loss carryforwards | $ 32,898 | $ 46,629 |
Research credits | 54,825 | 48,128 |
Unrealized loss on securities | 1,573 | 327 |
Capitalized lease assets | 5,564 | 489 |
Accrued compensation | 14,484 | 9,207 |
Capitalized research and development costs | 21,338 | 0 |
Gross deferred income tax assets | 130,682 | 104,780 |
Valuation allowance | (115,010) | (93,580) |
Net deferred income tax assets | 15,672 | 11,200 |
Deferred income tax liabilities | ||
Patent costs | (2,885) | (3,416) |
Deferred revenue | 3,225 | (3,508) |
Licensing costs | (124) | (151) |
Capitalized legal costs | (9) | (13) |
Depreciation | (6,532) | (288) |
Unrealized gain on securities | (9,347) | (3,824) |
Gross deferred income tax liabilities | (15,672) | (11,200) |
Net deferred income tax asset | $ 0 | $ 0 |
Income Taxes - TCJA and net ope
Income Taxes - TCJA and net operating loss carryforwards (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2020 | |
Income Taxes [Line Items] | ||
Increase (decrease) in deferred tax asset valuation allowance | $ 21.4 | |
Domestic Tax Authority | ||
Income Taxes [Line Items] | ||
Income tax refund | $ 0.8 | |
Cumulative net operating loss carryforwards | 102.4 | |
Tax credit carryforwards | 38.7 | |
State and Local Jurisdiction [Member] | ||
Income Taxes [Line Items] | ||
Cumulative net operating loss carryforwards | 162.1 | |
Tax credit carryforwards | 20.4 | |
Years Prior to 2018 | Domestic Tax Authority | ||
Income Taxes [Line Items] | ||
Cumulative net operating loss carryforwards | 59 | |
Years After 2018 | Domestic Tax Authority | ||
Income Taxes [Line Items] | ||
Cumulative net operating loss carryforwards | $ 43.4 |
Stock-Based Compensation - Plan
Stock-Based Compensation - Plan Details (Details) | 12 Months Ended | 108 Months Ended | |||
Jan. 01, 2022 shares | Dec. 31, 2022 period shares | Dec. 31, 2021 shares | Dec. 31, 2020 shares | Dec. 31, 2022 period shares | |
Stock options | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Total number of shares of common stock available for issuance (in shares) | 3,622,319 | 3,597,371 | 3,346,092 | 3,622,319 | |
ESPP | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Total number of shares of common stock available for issuance (in shares) | 539,392 | 539,392 | |||
Increase in shares of common stock available for issuance (in shares) | 593,555 | ||||
Awards issued under the plan (in shares) | 635,449 | ||||
Initial term of plan | 2 years | ||||
Number of six month purchase periods | period | 4 | 4 | |||
Purchase period | 6 months | ||||
Second term of plan | 2 years | ||||
ESPP | Minimum | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Percentage of compensation that employees may withhold to purchase stock at a discount | 1% | 1% | |||
ESPP | Maximum | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Annual percentage increase in shares of common stock available for issuance | 1% | ||||
Percentage of compensation that employees may withhold to purchase stock at a discount | 15% | 15% | |||
Purchase price as percentage of stock price at the initial offering date | 85% | ||||
Purchase price as percentage of stock price at the purchase date | 85% | ||||
Annual increase in shares of common stock available for issuance | 621,814 | ||||
RSUs | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Restricted stock granted (in shares) | 875,330 | 670,700 | 348,288 | ||
The 2010 Plan | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Total number of shares of common stock available for issuance (in shares) | 0 | 0 | |||
The 2013 Plan | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Total number of shares of common stock available for issuance (in shares) | 14,792,799 | 14,792,799 | |||
Annual percentage increase in shares of common stock available for issuance | 4% | ||||
Increase in shares of common stock available for issuance (in shares) | 2,374,222 | ||||
Awards issued under the plan (in shares) | 14,535,306 | ||||
The 2013 Plan | RSUs | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Restricted stock granted (in shares) | 1,999,817 | ||||
The 2013 Plan | RSUs | Minimum | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Vesting period | 2 years | ||||
The 2013 Plan | RSUs | Maximum | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Vesting period | 3 years |
Stock-Based Compensation - Empl
Stock-Based Compensation - Employee Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Total employee, director and non-employee stock-based compensation expense | $ 48,913 | $ 36,975 | $ 31,619 |
Stock options | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Total employee, director and non-employee stock-based compensation expense | 29,758 | 27,909 | 26,045 |
ESPP | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Total employee, director and non-employee stock-based compensation expense | 1,174 | 992 | 804 |
RSUs | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Total employee, director and non-employee stock-based compensation expense | 17,981 | 8,074 | 4,770 |
General and administrative | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Total employee, director and non-employee stock-based compensation expense | 17,281 | 12,813 | 10,769 |
Research and development | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Total employee, director and non-employee stock-based compensation expense | $ 31,632 | $ 24,162 | $ 20,850 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Options Outstanding (Details) - Stock options - $ / shares | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Aggregate Intrinsic Value (in thousands) | ||||
Exercisable options (in shares) | 6,679,948 | 5,576,430 | 4,668,179 | |
Weighted-average exercise price per share of exercisable options (in dollars per share) | $ 26.99 | $ 24.15 | $ 21.75 | |
Weighted average grant date fair value per share of options granted during the year (in dollars per share) | $ 15.45 | $ 21.65 | $ 16.96 | |
Total number of shares of common stock available for issuance (in shares) | 3,622,319 | 3,597,371 | 3,346,092 | |
Weighted-average remaining contractual life | 6 years 3 months 18 days | 6 years 7 months 24 days | 7 years | 7 years 3 months 25 days |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock Option Activity (Details) - Stock options - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Number of Shares | ||||
Balance at the beginning of the period (in shares) | 8,676,329 | 7,751,789 | 7,174,319 | |
Options granted (in shares) | 2,135,233 | 1,827,234 | 1,679,324 | |
Options forfeited (in shares) | (533,435) | (382,454) | (243,384) | |
Options exercised (in shares) | (195,485) | (520,240) | (858,470) | |
Balance at the end of the period (in shares) | 10,082,642 | 8,676,329 | 7,751,789 | 7,174,319 |
Options vested and expected to vest (in shares) | 10,082,642 | |||
Exercisable (in shares) | 6,679,948 | 5,576,430 | 4,668,179 | |
Weighted-Average Exercise Price (Per Share) | ||||
Balance at the beginning of the period (in dollars per share) | $ 29.11 | $ 26.23 | $ 24.03 | |
Options granted (in dollars per share) | 29.45 | 41.22 | 33.08 | |
Options forfeited (in dollars per share) | 34.09 | 36.15 | 32.93 | |
Options exercised (in dollars per share) | 18.46 | 23.61 | 19.36 | |
Balance at the end of the period (in dollars per share) | 29.12 | 29.11 | 26.23 | $ 24.03 |
Options vested and expected to vest (in dollars per share) | 29.12 | |||
Exercisable (in dollars per share) | $ 26.99 | $ 24.15 | $ 21.75 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Additional Disclosures [Abstract] | ||||
Weighted-average remaining contractual term, balance outstanding | 6 years 3 months 18 days | 6 years 7 months 24 days | 7 years | 7 years 3 months 25 days |
Weighted-average remaining contractual term, options vested and expected to vest | 6 years 3 months 18 days | |||
Weighted-average remaining contractual term, exercisable | 5 years 1 month 6 days | |||
Aggregate intrinsic value, balance outstanding | $ 27,141 | $ 100,057 | $ 134,941 | $ 79,116 |
Aggregate intrinsic value, options vested and expected to vest | 27,141 | |||
Aggregate intrinsic value, exercisable | 26,979 | |||
Intrinsic value of options exercised | $ 1,600 | $ 9,200 | $ 16,300 |
Stock-Based Compensation - FV o
Stock-Based Compensation - FV of Employee Stock Options (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Weighted average assumptions for estimated fair value of employee stock options | |||
Expected dividend yield | 0% | 0% | 0% |
Stock options | |||
Weighted average assumptions for estimated fair value of employee stock options | |||
Common stock fair value per share minimum (in dollars per share) | $ 19.74 | $ 30.65 | $ 20.69 |
Common stock fair value per share maximum (in dollars per share) | $ 38.08 | $ 49.47 | $ 45.91 |
Expected volatility, low end of range (as a percent) | 51.51% | 53.91% | 52.93% |
Expected volatility, high end of range (as a percent) | 54.36% | 56.82% | 58.95% |
Risk-free interest rate, low end of range (as a percent) | 1.57% | 0.47% | 0.29% |
Risk-free interest rate, high end of range (as a percent) | 4.34% | 1.33% | 1.71% |
Stock options | Minimum | |||
Weighted average assumptions for estimated fair value of employee stock options | |||
Expected term (in years) | 6 years | 6 years | 5 years 2 months 23 days |
Stock options | Maximum | |||
Weighted average assumptions for estimated fair value of employee stock options | |||
Expected term (in years) | 7 years 7 months 24 days | 7 years 7 months 24 days | 7 years 7 months 24 days |
ESPP | |||
Weighted average assumptions for estimated fair value of employee stock options | |||
Expected volatility, low end of range (as a percent) | 43.19% | 46.08% | 50.77% |
Expected volatility, high end of range (as a percent) | 55.72% | 66.37% | 66.37% |
Risk-free interest rate, low end of range (as a percent) | 0.13% | 0.04% | 0.09% |
Risk-free interest rate, high end of range (as a percent) | 4.72% | 1.65% | 1.65% |
ESPP | Minimum | |||
Weighted average assumptions for estimated fair value of employee stock options | |||
Expected term (in years) | 6 months | 6 months | 6 months |
ESPP | Maximum | |||
Weighted average assumptions for estimated fair value of employee stock options | |||
Expected term (in years) | 2 years | 2 years | 2 years |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Units (Details) - RSUs - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Number of Shares | |||
Beginning balance (in shares) | 826,148 | 358,825 | 90,006 |
Granted (in shares) | 875,330 | 670,700 | 348,288 |
Vested (in shares) | (341,073) | (151,555) | (62,355) |
Forfeited (in shares) | (127,854) | (51,822) | (17,114) |
Ending balance (in shares) | 1,232,551 | 826,148 | 358,825 |
Weighted- Average Grant Date Fair Value (Per Unit) | |||
Weighted-average grant date fair value, beginning balance (in dollars per share) | $ 37.79 | $ 33.04 | $ 34.66 |
Weighted-average grant date fair value, granted (in dollars per share) | 29.45 | 39.11 | 32.51 |
Weighted-average grant date fair value, vested (in dollars per share) | 37.37 | 32.76 | 32.61 |
Weighted-average grant date fair value, forfeited (in dollars per share) | 33.66 | 36.68 | 32.33 |
Weighted -average grant date fair value, ending balance (in dollars per share) | $ 32.41 | $ 37.79 | $ 33.04 |
Stock-Based Compensation - Unam
Stock-Based Compensation - Unamortized Compensation Expense for Unvested Stock Options (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Stock options | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Unamortized compensation expense related to unvested stock options and ESPP | $ 52.6 | $ 54.5 |
Period to recognize unamortized compensation expense | 2 years 5 months 4 days | |
ESPP | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Unamortized compensation expense related to unvested stock options and ESPP | $ 1.2 | 2.3 |
Period to recognize unamortized compensation expense | 11 months 8 days | |
RSUs | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Period to recognize unamortized compensation expense | 1 year 10 months 24 days | |
Unamortized compensation expense related to unvested restricted stock units | $ 28.3 | $ 24.8 |
Leases - Agreements (Details)
Leases - Agreements (Details) | 1 Months Ended | 12 Months Ended | |||||
Jul. 14, 2021 USD ($) ft² uSDollarPerSquareFoot | Aug. 31, 2022 USD ($) uSDollarPerSquareFoot | Jun. 30, 2021 ft² phase | Dec. 31, 2022 USD ($) lease | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Jul. 01, 2025 USD ($) ft² | |
Lessee, Lease, Description [Line Items] | |||||||
Addition of right-of-use asset | $ 6,155,000 | $ 24,047,000 | $ 3,127,000 | ||||
Monrovia, CA - office and laboratory space | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Number of leases | lease | 2 | ||||||
Option to extend | true | ||||||
Renewal term | 5 years | ||||||
Addition of right-of-use asset | $ 300,000 | ||||||
Monrovia, CA - office and laboratory space with additional space | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Addition of right-of-use asset | $ 300,000 | ||||||
Lease term | 18 months | ||||||
San Diego, CA - office space | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Option to extend | true | ||||||
Renewal term | 5 years | ||||||
Pasadena, CA - office and laboratory space | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Addition of right-of-use asset | $ 15,300,000 | $ 29,700,000 | |||||
Area of property | ft² | 83,083 | 129,543 | |||||
Lease term | 13 years | ||||||
Phases of lease term | phase | 2 | ||||||
Improvement allowance | $ 17,000,000 | $ 22,000,000 | |||||
Initial base monthly rent | $ 386,336 | $ 416,246 | |||||
Rent expense per square foot | uSDollarPerSquareFoot | 4.65 | 5.01 | |||||
Rent increase (as a percentage) | 3% | ||||||
Increase to tenant allowance | $ 5,000,000 | ||||||
Forecast | Pasadena, CA - office and laboratory space | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Area of property | ft² | 46,460 | ||||||
Improvement allowance | $ 3,300,000 |
Leases - Undiscounted Cash Flow
Leases - Undiscounted Cash Flows (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
2023 | $ 6,558 | |
2024 | 6,072 | |
2025 | 7,392 | |
2026 | 8,589 | |
2027 | 8,829 | |
Thereafter | 75,512 | |
Total undiscounted lease payments | 112,952 | |
Less: Tenant allowance | (5,459) | |
Less: Imputed interest | (47,859) | |
Present value of lease payments | 59,634 | |
Lease liabilities - short-term | 4,708 | $ 0 |
Lease liabilities - long-term | $ 54,926 | $ 33,969 |
Leases - Lease Costs (Details)
Leases - Lease Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Operating lease cost | $ 6,588 | $ 4,342 | $ 2,503 |
Variable lease cost | 506 | 58 | 150 |
Total lease costs | 7,094 | 4,400 | 2,653 |
Cash paid for amounts included in the measurement of lease liabilities | $ 2,869 | $ 2,773 | $ 2,233 |
Weighted-average remaining lease term | 12 years | 12 years 3 months 18 days | 7 years 4 months 24 days |
Weighted-average discount rate | 8.90% | 5.80% | 5.50% |
Collaboration and Licensing A_3
Collaboration and Licensing Agreements - Narrative (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Oct. 01, 2021 USD ($) candidate agreement d $ / shares shares | Dec. 31, 2021 USD ($) candidate | Nov. 30, 2021 USD ($) | Sep. 30, 2021 USD ($) | Jun. 30, 2021 USD ($) | Dec. 31, 2020 USD ($) | Nov. 30, 2020 USD ($) candidate | Aug. 31, 2020 item | Apr. 30, 2020 USD ($) | Jan. 31, 2020 compound | Jun. 30, 2016 target | Sep. 30, 2021 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2020 option | Dec. 31, 2022 USD ($) program | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) target | Dec. 31, 2019 USD ($) | Dec. 31, 2018 USD ($) | Nov. 30, 2022 USD ($) | Mar. 31, 2020 USD ($) | Feb. 28, 2019 USD ($) | |
Collaboration research and licensing agreements | ||||||||||||||||||||||
Receivable | $ 66,384,000 | $ 28,997,000 | $ 66,384,000 | |||||||||||||||||||
Unrealized gain (losses) recognized on equity securities | 23,434,000 | 20,988,000 | $ 105,000 | |||||||||||||||||||
Realized gain on investment | 0 | 18,301,000 | ||||||||||||||||||||
Net gains recognized on equity securities | 23,434,000 | 39,289,000 | 105,000 | |||||||||||||||||||
Proceeds from sale of common stock | 28,920,000 | |||||||||||||||||||||
Zenas | ||||||||||||||||||||||
Collaboration research and licensing agreements | ||||||||||||||||||||||
Increase in estimated fair value of equity securities | $ 17,900,000 | |||||||||||||||||||||
Zenas | Warrant | ||||||||||||||||||||||
Collaboration research and licensing agreements | ||||||||||||||||||||||
Equity shares estimated fair value | 34,500,000 | |||||||||||||||||||||
Zenas | Convertible Debt Securities | ||||||||||||||||||||||
Collaboration research and licensing agreements | ||||||||||||||||||||||
Equity shares estimated fair value | $ 7,700,000 | |||||||||||||||||||||
License, Development, and Commercialization Agreement | Aimmune | ||||||||||||||||||||||
Collaboration research and licensing agreements | ||||||||||||||||||||||
Revenue recognized | 0 | 0 | ||||||||||||||||||||
Deferred revenue | 0 | 0 | 0 | |||||||||||||||||||
Option and license agreement | Alexion | ||||||||||||||||||||||
Collaboration research and licensing agreements | ||||||||||||||||||||||
Revenue recognized | 29,400,000 | 22,200,000 | 26,200,000 | |||||||||||||||||||
Deferred revenue | 0 | |||||||||||||||||||||
Receivable | 14,800,000 | |||||||||||||||||||||
Option and license agreement | Alexion | Royalties | ||||||||||||||||||||||
Collaboration research and licensing agreements | ||||||||||||||||||||||
Revenue recognized | 29,400,000 | 22,200,000 | 16,200,000 | |||||||||||||||||||
Option and license agreement | Alexion | Milestone | ||||||||||||||||||||||
Collaboration research and licensing agreements | ||||||||||||||||||||||
Revenue recognized | 10,000,000 | |||||||||||||||||||||
Research and License Agreement | Amgen, Inc. | ||||||||||||||||||||||
Collaboration research and licensing agreements | ||||||||||||||||||||||
Revenue recognized | 0 | 0 | 0 | |||||||||||||||||||
Deferred revenue | $ 0 | |||||||||||||||||||||
Research and License Agreement | Amgen, Inc. | Discovery Program | ||||||||||||||||||||||
Collaboration research and licensing agreements | ||||||||||||||||||||||
Number of discovery programs in clinical development | program | 1 | |||||||||||||||||||||
Research and License Agreement | Astellas | ||||||||||||||||||||||
Collaboration research and licensing agreements | ||||||||||||||||||||||
Revenue recognized | $ 5,000,000 | 2,500,000 | ||||||||||||||||||||
Deferred revenue | 0 | |||||||||||||||||||||
Proceeds from milestone payments | 5,000,000 | |||||||||||||||||||||
Research and License Agreement | Novartis | Milestone | ||||||||||||||||||||||
Collaboration research and licensing agreements | ||||||||||||||||||||||
Revenue recognized | 3,000,000 | |||||||||||||||||||||
Collaboration and License Agreement | Genentech | ||||||||||||||||||||||
Collaboration research and licensing agreements | ||||||||||||||||||||||
Revenue recognized | 0 | 2,500,000 | 3,500,000 | |||||||||||||||||||
Transaction price | $ 120,000,000 | |||||||||||||||||||||
Cost sharing receivable (payable) | 200,000 | |||||||||||||||||||||
Collaboration and License Agreement | Genentech | XmAb306 | ||||||||||||||||||||||
Collaboration research and licensing agreements | ||||||||||||||||||||||
Standalone selling price | 111,700,000 | |||||||||||||||||||||
Collaboration and License Agreement | Genentech | XmAb435 | ||||||||||||||||||||||
Collaboration research and licensing agreements | ||||||||||||||||||||||
Standalone selling price | $ 4,100,000 | |||||||||||||||||||||
Collaboration and License Agreement | Genentech | Research service | ||||||||||||||||||||||
Collaboration research and licensing agreements | ||||||||||||||||||||||
Deferred revenue | 0 | |||||||||||||||||||||
Transaction price | 8,300,000 | |||||||||||||||||||||
Standalone selling price | $ 4,200,000 | |||||||||||||||||||||
Collaboration and License Agreement | Janssen | ||||||||||||||||||||||
Collaboration research and licensing agreements | ||||||||||||||||||||||
Revenue recognized | 5,000,000 | 0 | 0 | |||||||||||||||||||
Deferred revenue | 30,300,000 | |||||||||||||||||||||
Transaction price | $ 50,000,000 | |||||||||||||||||||||
Percentage of funding for development costs | 20% | |||||||||||||||||||||
Percentage of co-detailing activities | 30% | |||||||||||||||||||||
Research license term | 2 years | |||||||||||||||||||||
Number of collaboration and license agreements | agreement | 2 | |||||||||||||||||||||
Collaboration and License Agreement | Janssen | Research collaboration | ||||||||||||||||||||||
Collaboration research and licensing agreements | ||||||||||||||||||||||
Revenue recognized | 50,000,000 | |||||||||||||||||||||
Collaboration and License Agreement | MorphoSys | ||||||||||||||||||||||
Collaboration research and licensing agreements | ||||||||||||||||||||||
Revenue recognized | 39,000,000 | |||||||||||||||||||||
Deferred revenue | 0 | |||||||||||||||||||||
Collaboration and License Agreement | MorphoSys | Royalties | ||||||||||||||||||||||
Collaboration research and licensing agreements | ||||||||||||||||||||||
Revenue recognized | 7,800,000 | 5,900,000 | ||||||||||||||||||||
Contract asset | 2,200,000 | |||||||||||||||||||||
Collaboration and License Agreement | MorphoSys | Milestone | ||||||||||||||||||||||
Collaboration research and licensing agreements | ||||||||||||||||||||||
Revenue recognized | 12,500,000 | |||||||||||||||||||||
Collaboration and License Agreement | Novartis | ||||||||||||||||||||||
Collaboration research and licensing agreements | ||||||||||||||||||||||
Revenue recognized | 0 | 43,100,000 | 0 | |||||||||||||||||||
Deferred revenue | 0 | |||||||||||||||||||||
Receivable | $ 30,000 | |||||||||||||||||||||
Collaboration and License Agreement | Novartis | Global Discovery Program | ||||||||||||||||||||||
Collaboration research and licensing agreements | ||||||||||||||||||||||
Revenue recognized | 40,100,000 | $ 40,100,000 | ||||||||||||||||||||
Number of programs delivered | program | 2 | |||||||||||||||||||||
Collaboration and License Agreement | Novartis | FC Licenses | Maximum | ||||||||||||||||||||||
Collaboration research and licensing agreements | ||||||||||||||||||||||
Number of targets against which non-exclusive license is provided | target | 10 | |||||||||||||||||||||
Collaboration and License Agreements | Janssen | ||||||||||||||||||||||
Collaboration research and licensing agreements | ||||||||||||||||||||||
Revenue recognized | $ 7,000,000 | 113,800,000 | ||||||||||||||||||||
License Agreement | INmune | ||||||||||||||||||||||
Collaboration research and licensing agreements | ||||||||||||||||||||||
Unrealized gain (losses) recognized on equity securities | (7,300,000) | 15,100,000 | ||||||||||||||||||||
Consideration on sale of option | $ 18,300,000 | |||||||||||||||||||||
Cash consideration on sale of option | 15,000,000 | |||||||||||||||||||||
Realized gain on investment | 18,300,000 | 18,300,000 | ||||||||||||||||||||
License Agreement | INmune | Common Stock | ||||||||||||||||||||||
Collaboration research and licensing agreements | ||||||||||||||||||||||
Unrealized gain (losses) recognized on equity securities | $ 2,000,000 | |||||||||||||||||||||
Cash consideration on sale of option | 15,000,000 | |||||||||||||||||||||
Purchase amount of share options or equity in noncash transaction | $ 800,000 | |||||||||||||||||||||
Gain on fair value of option | 1,100,000 | |||||||||||||||||||||
Net gains recognized on equity securities | $ 900,000 | |||||||||||||||||||||
License Agreement | INmune | Other Income | ||||||||||||||||||||||
Collaboration research and licensing agreements | ||||||||||||||||||||||
Unrealized gain (losses) recognized on equity securities | $ 27,800,000 | |||||||||||||||||||||
License Agreement | INmune | Other Income | Common Stock | ||||||||||||||||||||||
Collaboration research and licensing agreements | ||||||||||||||||||||||
Net gains recognized on equity securities | $ 900,000 | |||||||||||||||||||||
License Agreement | Zenas | ||||||||||||||||||||||
Collaboration research and licensing agreements | ||||||||||||||||||||||
Revenue recognized | 0 | 14,900,000 | 16,100,000 | |||||||||||||||||||
Deferred revenue | $ 0 | |||||||||||||||||||||
Transaction price | $ 14,900,000 | $ 16,100,000 | ||||||||||||||||||||
Purchase amount of share options or equity in noncash transaction | $ 16,100,000 | |||||||||||||||||||||
Number of drug candidates | candidate | 3 | |||||||||||||||||||||
Number of collaboration and license agreements | program | 2 | |||||||||||||||||||||
Percentage of equity of private company | 15% | 15% | ||||||||||||||||||||
Milestones or royalties in transaction price | $ 0 | $ 0 | ||||||||||||||||||||
Patent License Agreement | Vir | ||||||||||||||||||||||
Collaboration research and licensing agreements | ||||||||||||||||||||||
Revenue recognized | $ 115,400,000 | 52,700,000 | $ 300,000 | |||||||||||||||||||
Deferred revenue | 0 | |||||||||||||||||||||
Receivable | 4,800,000 | |||||||||||||||||||||
Potential milestone payment | $ 154,000,000 | |||||||||||||||||||||
Number of different target programs | target | 2 | |||||||||||||||||||||
Upfront and milestone payment received | 2,000,000 | |||||||||||||||||||||
Contract asset | $ 500,000 | $ 500,000 | ||||||||||||||||||||
Patent License Agreement | Vir | Royalties | ||||||||||||||||||||||
Collaboration research and licensing agreements | ||||||||||||||||||||||
Revenue recognized | 114,900,000 | 52,200,000 | ||||||||||||||||||||
Second Collaboration And License Agreement | Janssen | ||||||||||||||||||||||
Collaboration research and licensing agreements | ||||||||||||||||||||||
Transaction price | $ 96,100,000 | |||||||||||||||||||||
Research license term | 2 years | |||||||||||||||||||||
Nonrefundable upfront payment | $ 100,000,000 | |||||||||||||||||||||
Potential milestone payment | 1,187,500,000 | |||||||||||||||||||||
Proceeds from sale of common stock | $ 28,900,000 | |||||||||||||||||||||
Share development percentage | 80% | |||||||||||||||||||||
Percentage of responsibility for development costs | 20% | |||||||||||||||||||||
Number of candidates for which option to advance for development and commercialization | candidate | 4 | |||||||||||||||||||||
Number of drug candidates | candidate | 4 | |||||||||||||||||||||
Discount on proceeds from sale | $ 3,900,000 | |||||||||||||||||||||
Second Collaboration And License Agreement | Janssen | Research service | ||||||||||||||||||||||
Collaboration research and licensing agreements | ||||||||||||||||||||||
Revenue recognized | 7,000,000 | 300,000 | ||||||||||||||||||||
Standalone selling price | 37,600,000 | |||||||||||||||||||||
Performance obligation | 37,600,000 | 37,600,000 | ||||||||||||||||||||
Second Collaboration And License Agreement | Janssen | Licensing | ||||||||||||||||||||||
Collaboration research and licensing agreements | ||||||||||||||||||||||
Revenue recognized | 58,500,000 | 58,500,000 | ||||||||||||||||||||
Standalone selling price | 58,500,000 | |||||||||||||||||||||
Second Collaboration And License Agreement | Johnson & Johnson Innovation, JJDC, Inc. | Common Stock | ||||||||||||||||||||||
Collaboration research and licensing agreements | ||||||||||||||||||||||
Proceeds from sale of common stock | $ 25,000,000 | |||||||||||||||||||||
Number of trading days | d | 30 | |||||||||||||||||||||
Weighted average price (in dollars per share) | $ / shares | $ 33.4197 | |||||||||||||||||||||
Total equity shares (in shares) | shares | 748,062 | |||||||||||||||||||||
Second Collaboration And License Agreement | Zenas | ||||||||||||||||||||||
Collaboration research and licensing agreements | ||||||||||||||||||||||
Potential milestone payment | 470,000,000 | |||||||||||||||||||||
Warrants | $ 14,900,000 | |||||||||||||||||||||
Licensing Agreements | INmune | ||||||||||||||||||||||
Collaboration research and licensing agreements | ||||||||||||||||||||||
Revenue recognized | 0 | 0 | $ 0 | |||||||||||||||||||
Technology License Agreement | Astria/Catabasis | ||||||||||||||||||||||
Collaboration research and licensing agreements | ||||||||||||||||||||||
Deferred revenue | 0 | |||||||||||||||||||||
Impairment charge | 100,000 | |||||||||||||||||||||
Unrealized gain (losses) recognized on equity securities | 6,100,000 | 4,500,000 | ||||||||||||||||||||
Technology License Agreement | Gilead | ||||||||||||||||||||||
Collaboration research and licensing agreements | ||||||||||||||||||||||
Revenue recognized | $ 7,500,000 | 0 | 0 | 13,500,000 | ||||||||||||||||||
Deferred revenue | 0 | |||||||||||||||||||||
Number of additional antibody compounds | compound | 3 | |||||||||||||||||||||
Number of options exercised | option | 3 | |||||||||||||||||||||
Technology License Agreement | Viridian | ||||||||||||||||||||||
Collaboration research and licensing agreements | ||||||||||||||||||||||
Revenue recognized | 0 | 7,500,000 | 6,000,000 | |||||||||||||||||||
Deferred revenue | 0 | |||||||||||||||||||||
Purchase amount of share options or equity in noncash transaction | $ 7,500,000 | $ 6,000,000 | ||||||||||||||||||||
Research license term | 1 year | |||||||||||||||||||||
Number of antibodies | candidate | 3 | |||||||||||||||||||||
Technology License Agreement | Viridian | Maximum | ||||||||||||||||||||||
Collaboration research and licensing agreements | ||||||||||||||||||||||
Potential milestone payment | $ 24,800,000 | 24,800,000 | ||||||||||||||||||||
Technology License Agreement | Viridian | Xtend Fc Technology | ||||||||||||||||||||||
Collaboration research and licensing agreements | ||||||||||||||||||||||
Transaction price | $ 6,000,000 | 6,000,000 | ||||||||||||||||||||
Technology License Agreement | Viridian | Antibody Libraries | ||||||||||||||||||||||
Collaboration research and licensing agreements | ||||||||||||||||||||||
Transaction price | 7,500,000 | 7,500,000 | ||||||||||||||||||||
Technology License Agreement | Omeros | ||||||||||||||||||||||
Collaboration research and licensing agreements | ||||||||||||||||||||||
Revenue recognized | 0 | 0 | $ 5,000,000 | |||||||||||||||||||
Deferred revenue | $ 0 | |||||||||||||||||||||
Number of additional antibodies | item | 3 | |||||||||||||||||||||
Development-based | Patent License Agreement | Vir | ||||||||||||||||||||||
Collaboration research and licensing agreements | ||||||||||||||||||||||
Potential milestone payment | 4,000,000 | |||||||||||||||||||||
Development-based | Second Collaboration And License Agreement | Janssen | ||||||||||||||||||||||
Collaboration research and licensing agreements | ||||||||||||||||||||||
Potential milestone payment | $ 289,400,000 | |||||||||||||||||||||
Development-based | Technology License Agreement | Viridian | ||||||||||||||||||||||
Collaboration research and licensing agreements | ||||||||||||||||||||||
Potential milestone payment | 1,800,000 | 1,800,000 | ||||||||||||||||||||
Regulatory-based | Patent License Agreement | Vir | ||||||||||||||||||||||
Collaboration research and licensing agreements | ||||||||||||||||||||||
Potential milestone payment | 30,000,000 | |||||||||||||||||||||
Regulatory-based | Second Collaboration And License Agreement | Janssen | ||||||||||||||||||||||
Collaboration research and licensing agreements | ||||||||||||||||||||||
Potential milestone payment | 378,100,000 | |||||||||||||||||||||
Regulatory-based | Technology License Agreement | Viridian | ||||||||||||||||||||||
Collaboration research and licensing agreements | ||||||||||||||||||||||
Potential milestone payment | 3,000,000 | 3,000,000 | ||||||||||||||||||||
Sales-based | Patent License Agreement | Vir | ||||||||||||||||||||||
Collaboration research and licensing agreements | ||||||||||||||||||||||
Potential milestone payment | $ 120,000,000 | |||||||||||||||||||||
Sales-based | Second Collaboration And License Agreement | Janssen | ||||||||||||||||||||||
Collaboration research and licensing agreements | ||||||||||||||||||||||
Potential milestone payment | $ 520,000,000 | |||||||||||||||||||||
Sales-based | Technology License Agreement | Viridian | ||||||||||||||||||||||
Collaboration research and licensing agreements | ||||||||||||||||||||||
Potential milestone payment | $ 20,000,000 | $ 20,000,000 |
Collaboration and Licensing A_4
Collaboration and Licensing Agreements - Revenue Recognition (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Collaboration research and licensing agreements | |||
Revenue recorded | $ 164,579 | $ 275,111 | $ 122,694 |
Research collaboration | |||
Collaboration research and licensing agreements | |||
Revenue recorded | 7,000 | 93,000 | 4,500 |
Milestone | |||
Collaboration research and licensing agreements | |||
Revenue recorded | 5,500 | 21,000 | 50,200 |
Licensing | |||
Collaboration research and licensing agreements | |||
Revenue recorded | 0 | 80,800 | 50,200 |
Royalties | |||
Collaboration research and licensing agreements | |||
Revenue recorded | 152,100 | 80,300 | 17,800 |
Aimmune | |||
Collaboration research and licensing agreements | |||
Revenue recorded | 0 | 0 | 9,600 |
Alexion | |||
Collaboration research and licensing agreements | |||
Revenue recorded | 29,400 | 22,200 | 26,200 |
Astellas | |||
Collaboration research and licensing agreements | |||
Revenue recorded | 5,000 | 0 | 3,500 |
Genentech | |||
Collaboration research and licensing agreements | |||
Revenue recorded | 0 | 2,500 | 3,500 |
Gilead | |||
Collaboration research and licensing agreements | |||
Revenue recorded | 0 | 0 | 13,500 |
Janssen | |||
Collaboration research and licensing agreements | |||
Revenue recorded | 7,000 | 113,800 | 0 |
MorphoSys | |||
Collaboration research and licensing agreements | |||
Revenue recorded | 7,800 | 18,400 | 39,000 |
Novartis | |||
Collaboration research and licensing agreements | |||
Revenue recorded | 0 | 43,100 | 0 |
Omeros | |||
Collaboration research and licensing agreements | |||
Revenue recorded | 0 | 0 | 5,000 |
Vir | |||
Collaboration research and licensing agreements | |||
Revenue recorded | 115,400 | 52,700 | 300 |
Viridian | |||
Collaboration research and licensing agreements | |||
Revenue recorded | 0 | 7,500 | 6,000 |
Zenas | |||
Collaboration research and licensing agreements | |||
Revenue recorded | $ 0 | $ 14,900 | $ 16,100 |
401(k) Plan (Details)
401(k) Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Mar. 31, 2020 | Jan. 01, 2018 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined contribution plan employer matching contribution percent | 4% | 3.50% | |||
Vesting period | 3 years | ||||
Annual vesting percentage | 33% | ||||
Employer contributions | $ 1.4 | $ 1.1 | $ 0.8 | ||
1% of participating employee contributions | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Percentage of company matching to defined contribution plan | 100% | 100% | |||
Defined contribution plan employer matching contribution percent | 1% | 1% | |||
5% of participating employee contributions | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Percentage of company matching to defined contribution plan | 50% | ||||
Defined contribution plan employer matching contribution percent | 5% | ||||
6% of participating employee contributions | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Percentage of company matching to defined contribution plan | 50% | ||||
Defined contribution plan employer matching contribution percent | 6% |