Docoh
Loading...

NGM Ngm Biopharmaceuticals

Cover

Cover - shares3 Months Ended
Mar. 31, 2021May 03, 2021
Cover [Abstract]
Document Type10-Q
Document Quarterly Reporttrue
Document Period End DateMar. 31,
2021
Document Transition Reportfalse
Entity File Number001-38853
Entity Registrant NameNGM BIOPHARMACEUTICALS, INC.
Entity Incorporation, State or Country CodeDE
Entity Tax Identification Number26-1679911
Entity Address, Address Line One333 Oyster Point Boulevard
Entity Address, City or TownSouth San Francisco
Entity Address, State or ProvinceCA
Entity Address, Postal Zip Code94080
City Area Code650
Local Phone Number243-5555
Title of 12(b) SecurityCommon Stock, par value $0.001 per share
Trading SymbolNGM
Security Exchange NameNASDAQ
Entity Current Reporting StatusYes
Entity Interactive Data CurrentYes
Entity Small Businessfalse
Entity Emerging Growth Companytrue
Entity Ex Transition Periodfalse
Entity Shell Companyfalse
Entity Common Stock, Shares Outstanding77,018,206
Amendment Flagfalse
Document Fiscal Year Focus2021
Document Fiscal Period FocusQ1
Entity Central Index Key0001426332
Current Fiscal Year End Date--12-31
Entity Filer CategoryAccelerated Filer

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Current assets:
Cash and cash equivalents $ 148,113 $ 147,017
Short-term marketable securities264,543 148,139
Related party receivable from collaboration325 333
Related party contract asset4,600 6,100
Prepaid expenses and other current assets8,268 6,837
Total current assets425,849 308,426
Property and equipment, net13,733 14,526
Restricted cash1,499 1,499
Other non-current assets4,460 4,592
Total assets445,541 329,043
Current liabilities:
Accounts payable7,535 9,663
Accrued liabilities29,763 29,945
Deferred rent, current3,011 2,975
Total current liabilities40,309 42,583
Deferred rent, non-current5,655 6,417
Total liabilities45,964 49,000
Commitments and contingencies (Note 6)
Stockholders' equity:
Preferred stock, $0.001 par value; 10,000,000 shares authorized; no shares issued or outstanding as of March 31, 2021 and December 31, 2020, respectively0 0
Common stock, $0.001 par value; 400,000,000 shares authorized; 76,913,578 and 70,585,364 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively77 71
Additional paid-in capital725,693 578,599
Accumulated other comprehensive income (loss)(18)4
Accumulated deficit(326,175)(298,631)
Total stockholders' equity399,577 280,043
Total liabilities and stockholders' equity $ 445,541 $ 329,043

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Statement of Financial Position [Abstract]
Common stock, par value (in shares) $ 0.001 $ 0.001
Common stock, shares authorized (in shares)400,000,000 400,000,000
Common stock, shares issued (in shares)76,913,578 70,585,364
Common stock, shares outstanding (in shares)76,913,578 70,585,364
Preferred stock, shares outstanding (in shares)0 0
Preferred stock, shares issued (in shares)0 0
Preferred stock, par value (in dollars per share) $ 0.001 $ 0.001
Preferred stock, shares authorized (in shares)10,000,000 10,000,000
Related party contract asset $ 4,600 $ 6,100
Related party receivable from collaboration $ 325 $ 333

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Income Statement [Abstract]
Related party revenue $ 21,575 $ 24,364
Operating expenses:
Research and development40,699 38,439
General and administrative8,721 6,595
Total operating expenses49,420 45,034
Loss from operations(27,845)(20,670)
Interest income, net114 1,175
Other income, net187 380
Net loss $ (27,544) $ (19,115)
Net loss per share, basic and diluted (in dollars per share) $ (0.36) $ (0.28)
Weighted average shares used to compute net loss per share, basic and diluted (in shares)76,034,145 67,396,229

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Statement of Comprehensive Income [Abstract]
Net loss $ (27,544) $ (19,115)
Other comprehensive gain (loss), net of tax:
Net unrealized loss on available-for-sale marketable securities(22)(80)
Total comprehensive loss $ (27,566) $ (19,195)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in ThousandsTotalCommon StockAdditional Paid-In CapitalOther Comprehensive Income (Loss)Accumulated Deficit
Beginning balance (in shares) at Dec. 31, 201966,886,000
Beginning balance at Dec. 31, 2019 $ 330,719 $ 67 $ 526,771 $ 25 $ (196,144)
Issuance of common stock upon exercise of stock options (in shares)984,000
Issuance of common stock upon exercise of stock options3,591 $ 1 3,590
Vesting of common stock from early exercises (in shares)21,000
Vesting of common stock from early exercises162 162
Stock-based compensation expense3,695 3,695
Changes in unrealized (loss) gain on available-for-sale securities(80)(80)
Net loss(19,115)(19,115)
Ending balance (in shares) at Mar. 31, 202067,891,000
Ending balance at Mar. 31, 2020318,972 $ 68 534,218 (55)(215,259)
Beginning balance (in shares) at Dec. 31, 202070,583,000
Beginning balance at Dec. 31, 2020280,043 $ 71 578,599 4 (298,631)
Issuance of common stock under offering, net of issuance costs $ 134,570 $ 5 134,565
Issuance of common stock under offering, net of issuance cost (in shares)5,324,000
Issuance of common stock upon exercise of stock options (in shares)1,000,588 1,001,000
Issuance of common stock upon exercise of stock options $ 5,907 $ 1 5,906
Vesting of common stock from early exercises (in shares)5,000
Vesting of common stock from early exercises41 41
Stock-based compensation expense6,582 6,582
Changes in unrealized (loss) gain on available-for-sale securities(22)(22)
Net loss(27,544)(27,544)
Ending balance (in shares) at Mar. 31, 202176,913,000
Ending balance at Mar. 31, 2021 $ 399,577 $ 77 $ 725,693 $ (18) $ (326,175)

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Cash flows from operating activities
Net loss $ (27,544) $ (19,115)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation1,554 1,731
Amortization of premium (discount) on marketable securities570 (122)
Stock-based compensation expense6,582 3,695
Other non-cash (income) expenses, net(315)120
Changes in operating assets and liabilities:
Related party receivable from collaboration8 4,464
Related party contract asset1,500 0
Prepaid expenses and other assets(1,299)(2,005)
Accounts payable(2,128)(5,343)
Accrued liabilities(427)3,026
Deferred rent(726)(689)
Deferred revenue0 (4,872)
Net cash used in operating activities(22,225)(19,110)
Cash flows from investing activities
Purchase of marketable securities(144,996)(29,399)
Proceeds from sales and maturities of marketable securities28,000 56,837
Purchase of property and equipment(160)(565)
Net cash provided by (used in) investing activities(117,156)26,873
Cash flows from financing activities
Net proceeds from follow on offering134,570 0
Proceeds from issuance of common stock upon exercise of stock options5,907 3,591
Net cash provided by financing activities140,477 3,591
Net increase in cash and cash equivalents1,096 11,354
Cash, cash equivalents and restricted cash at beginning of period148,516 247,472
Cash, cash equivalents and restricted cash at end of period149,612 258,826
Non-cash investing and financing activities:
Vesting of common stock from early exercises41 162
Property and equipment purchases accrued and not yet paid $ 637 $ 270

Organization and Description of

Organization and Description of Business3 Months Ended
Mar. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Description of BusinessOrganization and Description of Business NGM Biopharmaceuticals, Inc. and its wholly-owned subsidiary, collectively referred to as the Company, is focused on discovering and developing novel therapeutics based on scientific understanding of key biological pathways underlying liver and metabolic diseases, retinal diseases and cancer. The Company’s robust portfolio of product candidates range from early discovery to late-stage development and include aldafermin, MK-3655, NGM621, NGM120, NGM707 and NGM438. The Company has additional undisclosed programs that are in various stages of development ranging from functional validation to preclinical development. The Company was incorporated in Delaware in December 2007 and commenced operations in 2008. Its headquarters are located at 333 Oyster Point Blvd., South San Francisco, California 94080.

Summary of Significant Accounti

Summary of Significant Accounting Policies3 Months Ended
Mar. 31, 2021
Accounting Policies [Abstract]
Summary of Significant Accounting PoliciesSummary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or U.S. GAAP, and Regulation S-X for interim consolidated financial information. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes for the year ended December 31, 2020 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 filed with the United States Securities and Exchange Commission, or SEC, on March 15, 2021. These unaudited condensed consolidated financial statements reflect all adjustments that management believes are necessary for a fair presentation of the periods presented. All such adjustments are of a normal recurring nature and are not necessarily indicative of results expected for the full fiscal year or for any subsequent interim period. These unaudited condensed consolidated financial statements include the consolidated accounts of NGM Biopharmaceuticals, Inc. and its wholly-owned foreign subsidiary in Australia. All intercompany balances and transactions have been eliminated upon consolidation. Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make judgments, assumptions and estimates that affect the reported amounts of assets, liabilities, revenues and expenses. Specific accounts that require management estimates include, but are not limited to, the valuation of common stock and the associated stock-based compensation expense, contract manufacturing accruals, clinical trial accruals and revenue recognition in accordance with Accounting Standards Codification 606 or, ASC 606. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results could differ materially from those estimates. Uses and Sources of Liquidity Since inception, the Company has incurred net losses and negative cash flow from operations. During the three months ended March 31, 2021, the Company incurred a net loss of $27.5 million compared to $19.1 million for the three months ended March 31, 2020. As of March 31, 2021, the Company had an accumulated deficit of $326.2 million. The Company expects its accumulated deficit will increase significantly over time and does not expect to experience positive cash flows from operations in the near future. As of March 31, 2021, the Company had $412.7 million of cash, cash equivalents and short-term marketable securities. In January 2021, the Company sold 5,324,074 shares of its common stock through an underwritten public offering at a price to the public of $27.00 per share for aggregate net proceeds to the Company of $134.6 million after deducting underwriting discounts and commissions and other offering expenses paid by the Company. In June 2020, the Company entered into an Open Market Sale Agreement SM , or the Sales Agreement, with Jefferies LLC. During the three months ended March 31, 2021, no shares of the Company's common stock were sold pursuant to the Sales Agreement. As of March 31, 2021, $127.4 million of the Company's common stock remained available to be sold under the Sales Agreement, subject to conditions specified in the Sales Agreement. The Company believes its existing cash, cash equivalents and short-term marketable securities will be sufficient to fund its operations for a period of at least one year from the date of these unaudited condensed consolidated financial statements. To fully implement the Company’s business plan and fund its operations, the Company will need to raise additional capital through public or private equity offerings (which may include potential net proceeds from future sales, if any, under the Sales Agreement), debt financings, government or other third-party funding, collaborations, strategic alliances and licensing arrangements or a combination of the foregoing. Fair Value of Financial Instruments The carrying amounts of cash and cash equivalents, the related party receivable from collaboration and other current assets and liabilities approximate their respective fair values due to their short-term nature. Cash and Cash Equivalents Cash and cash equivalents are stated at fair value. Cash equivalents are securities with an original maturity of three months or less at the time of purchase. The Company limits its credit risk associated with cash and cash equivalents by placing its investments with a bank it believes is highly creditworthy and with highly rated money market funds. As of March 31, 2021 and December 31, 2020, cash and cash equivalents consisted of bank deposits and investments in money market funds. Marketable Securities The appropriate classification of the Company’s marketable securities is determined at the time of purchase and such designations are re-evaluated at each balance sheet date. All of the Company’s securities are considered as available-for-sale and carried at estimated fair values and reported in cash equivalents and short-term marketable securities. Unrealized gains and losses on available-for-sale securities are excluded from net loss and reported in accumulated other comprehensive gain as a separate component of stockholders’ equity. Other income (expense), net, includes interest, amortization of purchase premiums and accretion of purchase discounts, realized gains and losses on sales of securities and other-than-temporary declines in the fair value of securities, if any. The cost of securities sold is based on the specific identification method. The Company’s investments are regularly reviewed for other-than-temporary declines in fair value. This review includes the consideration of the cause of the impairment, including the creditworthiness of the security issuers, the number of securities in an unrealized loss position, the severity and duration of the unrealized losses, whether the Company has the intent to sell the securities and whether it is more likely than not that the Company will be required to sell the securities before the recovery of their amortized cost basis. When the Company determines that the decline in fair value of an investment is below its carrying value and this decline is other-than-temporary, the Company reduces the carrying value of the security it holds and records a loss for the amount of such decline. As of March 31, 2021, the Company did not record any impairment related to other-than-temporary declines in the fair value of securities. Restricted Cash The Company’s restricted cash balance represents collateral required under the Company’s facility lease agreement and is classified as a non-current asset on the condensed consolidated balance sheets, as the collateral will not be returned to the Company within 12 months from the date of these condensed consolidated financial statements. Concentration of Credit and Other Risks Cash and cash equivalents and marketable securities from the Company’s available-for-sale and marketable security portfolio potentially subject the Company to concentrations of credit risk. The Company is invested in money market funds and marketable securities through custodial relationships with major U.S. and Australian banks. Under its investment policy, the Company limits amounts invested in such securities by credit rating, maturity, industry group, investment type and issuer, except for securities issued by the U.S. government. Related party receivables from collaborations are typically unsecured. Accordingly, the Company may be exposed to credit risk generally associated with its current collaboration agreement with Merck Sharp & Dohme Corp., or Merck, and any future collaboration agreements with other collaboration partners. To date, the Company has not experienced any losses related to these receivables. Amounts recognized as revenue prior to the Company having an unconditional right (other than a right that is conditioned only on the passage of time) to receipt are recorded as contract assets in the Company's condensed consolidated balance sheets. Although the Company expects to have an unconditional right to receive such amounts, the Company may be exposed to the risk of not receiving the recorded amounts under its current collaboration agreement with Merck and any future collaboration agreements with other collaboration partners. To date, the Company has not experienced any losses related to contract assets. Merck accounted for 100% of the Company’s revenue for the three months ended March 31, 2021 and 2020. Property and Equipment, Net Property and equipment is recorded at cost and consists of computer equipment, laboratory equipment and office furniture and leasehold improvements. Maintenance and repairs, and training on the use of equipment, are expensed as incurred. Costs that improve assets or extend their economic lives are capitalized. Depreciation is recognized using the straight-line method based on an estimated useful life of the asset, which is as follows: Computer equipment 3 years Laboratory equipment and office furniture 3 years Leasehold improvement Shorter of life of asset or lease term Leases The Company’s lease agreements for its laboratory and office facilities are classified as operating leases. Rent expense is recognized on a straight-line basis over the term of the lease. Incentives granted under the Company’s facilities leases, including allowances to fund leasehold improvements and rent holidays, are capitalized and are recognized as reductions to rental expense on a straight-line basis over the term of the lease. Impairment of Long-Lived Assets Long-lived assets, such as property and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset 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 the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized as the amount by which the carrying amount of the asset exceeds the estimated fair value of the asset. As of March 31, 2021 and December 31, 2020, no revision to the remaining useful lives or write-down of long-lived assets was required. Income Taxes Income taxes are accounted for under the liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and the operating loss and tax credit carryforwards. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Deferred tax assets and liabilities are measured at the balance sheet date using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period such tax rate changes are enacted. Revenue Recognition Accounting Standards Update, or ASU, 2014-09, Revenue from Contracts with Customers (Topic 606) requires an entity to recognize revenue upon the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company applies the following five-step revenue recognition model outlined in ASC 606 to adhere to this core principle: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the Company satisfies a performance obligation. All of the Company’s revenue to date has been generated from its collaboration agreements, primarily its collaboration agreement with Merck. The terms of these agreements generally require the Company to provide (i) license options for its compounds, (ii) research and development services and (iii) non-mandatory services in connection with participation in research or steering committees. Payments received under these arrangements may include non-refundable upfront license fees, partial or complete reimbursement of research and development costs, contingent consideration payments based on the achievement of defined collaboration objectives and royalties on sales of commercialized products. In some agreements, the collaboration partner is solely responsible for meeting defined objectives that trigger contingent or royalty payments. Often the partner only pursues such objectives subsequent to exercising an optional license on compounds identified as a result of the research and development services performed under the collaboration agreement. The Company assesses whether the promises in its arrangements, including any options provided to the partner, are considered distinct performance obligations that should be accounted for separately. Judgment is required to determine whether the license to a compound is distinct from research and development services or participation in research or steering committees, as well as whether options create material rights in the contract. The transaction price in each arrangement is generally comprised of a non-refundable upfront fee and unconstrained variable consideration related to the performance of research and development services. The Company typically submits a budget for the research and development services to the partner in advance of performing the services. The transaction price is allocated to the identified performance obligations based on the standalone selling price, or SSP, of each distinct performance obligation. Judgment is required to determine the SSP. In instances where the SSP is not directly observable, such as when a license or service is not sold separately, SSP is determined using information that may include market conditions and other observable inputs. The Company utilizes judgment to assess the nature of its performance obligations to determine whether they are satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress toward completion. The Company evaluates the measure of progress each reporting period and, if necessary, adjusts the measure of performance and related revenue recognition. The Company’s collaboration agreements may include contingent payments related to specified development and regulatory milestones or contingent payments for royalties based on sales of a commercialized product. Milestones can be achieved for such activities in connection with progress in clinical trials, regulatory filings in various geographical markets and marketing approvals from health authorities. Sales-based royalties are generally related to the volume of annual sales of a commercialized product. At the inception of each agreement that includes such payments, the Company evaluates whether the milestones are considered probable of being achieved and estimates the amount to be included in the transaction price by using the most likely amount method. If it is probable that a significant revenue reversal would not occur, the associated milestone value is included in the transaction price. Milestone payments that are not within the Company’s or its partner’s control, such as those related to regulatory approvals, are not considered probable of being achieved until those approvals are received. The transaction price is then allocated to each performance obligation based on a relative SSP basis. At the end of each subsequent reporting period, the Company re-evaluates the probability of achievement of each such milestone and any related constraint and, if necessary, adjusts its estimate of the overall transaction price. Pursuant to the guidance in ASC 606, sales-based royalties are not included in the transaction price. Instead, royalties are recognized at the later of when the performance obligation is satisfied or partially satisfied, or when the sale that gives rise to the royalty occurs. Research and Development Research and development costs are expensed as incurred. Research and development expenses primarily include salaries and benefits for medical, clinical, quality, preclinical, manufacturing and research personnel, costs related to research activities, preclinical studies, clinical trials, drug manufacturing expenses and allocated overhead and facility occupancy costs. The Company accounts for non-refundable advance payments for goods or services that will be used in future research and development activities as expenses when the goods have been received or when the service has been performed rather than when the payment is made. Clinical trial costs are a component of research and development expenses. The Company expenses costs for its clinical trial activities performed by third parties, including clinical research organizations, or CROs, and other service providers, as they are incurred, based upon estimates of the work completed over the life of the individual study in accordance with associated agreements. The Company uses assessments by internal personnel and information it receives from outside service providers to estimate the clinical trial costs incurred. Stock-Based Compensation The Company’s stock-based compensation programs include stock option grants, as well as shares issued under its 2019 Employee Stock Purchase Plan, or ESPP. Grants are awarded to employees, directors and nonemployees. The Company measures employee and director stock-based compensation expense for all stock-based awards at the grant date based on the fair value measurement of the award. Subsequent to the adoption of ASU No. 2018-07, Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting on January 1, 2019, stock-based compensation expense for non-employee awards is measured based on the fair value on the date of adoption. The expense is recorded on a straight-line basis over the requisite service period, which is generally the vesting period, for the entire award. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures materially differ from estimates. The Company calculates the fair value measurement of stock options using the Black-Scholes option-pricing model. Foreign Currency Transactions The functional currency of NGM Biopharmaceuticals Australia Pty Ltd., the Company’s wholly-owned subsidiary, is the U.S. dollar. Accordingly, all monetary assets and liabilities of the subsidiary are remeasured into U.S. dollars at the current period-end exchange rates and non-monetary assets are remeasured using historical exchange rates. Income and expense elements are remeasured to U.S. dollars using the average exchange rates in effect during the period. Remeasurement gains and losses are recorded as other income (expense), net on the condensed consolidated statements of operations. The Company is subject to foreign currency risk with respect to its clinical and manufacturing contracts denominated in currencies other than the U.S. dollar, primarily British Pounds, Swiss Francs, Australian dollars and the Euro. Payments on contracts denominated in foreign currencies are made at the spot rate on the day of payment. Changes in the exchange rate between billing dates and payment dates are recorded within other income (expense), net, on the condensed consolidated statements of operations. Comprehensive Loss Comprehensive loss is composed of net loss and certain changes in stockholders’ equity that are excluded from net loss, primarily unrealized gains or losses, net of taxes, on the Company’s marketable securities. Net Loss per Share Basic net loss per share is calculated by dividing net loss by the weighted average number of shares outstanding during the period, less shares subject to repurchase and excludes any dilutive effects of stock-based options and awards. Diluted net income per ordinary share is computed by giving effect to all potentially dilutive shares, including common stock issuable upon exercise of stock options. However, where there is a diluted net loss per ordinary share, no adjustment is made for potentially issuable shares since their effect would be anti-dilutive. In this case, diluted net loss per share is equal to basic net loss per share. Net loss per share was computed as follows (in thousands, except share and per share amounts): Three Months Ended 2021 2020 Numerator: Net loss $ (27,544) $ (19,115) Denominator: Weighted average number of shares used in calculating net loss per share—basic and diluted 76,034,145 67,396,229 Net loss per share—basic and diluted $ (0.36) $ (0.28) Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows: Three Months Ended 2021 2020 Options to purchase common stock 11,300,905 10,824,034 Shares committed under ESPP 291,992 396,360 Total 11,592,897 11,220,394 Segment and Geographical Information The Company operates in one business segment. Substantially all of the Company’s long-lived assets, comprised of property and equipment, are based in the United States. For the three months ended March 31, 2021 and 2020, the Company’s revenues were entirely within the United States based upon the location of the Company and Merck. Recent Accounting Pronouncements New accounting pronouncements are issued by the Financial Accounting Standards Board, or FASB, or other standard setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed, the impact of recently issued standards that are not yet effective will not have a material impact on the Company’s results of operations and financial position upon adoption. Under the Jumpstart Our Business Startups Act of 2012, as amended, the JOBS Act, the Company meets the definition of an emerging growth company and has elected the extended transition period for complying with new or revised accounting standards pursuant to Section 107(b) of the JOBS Act. Recently Adopted Accounting Pronouncements In November 2018, the FASB issued ASU 2018-18, Collaborative Arrangements (ASC 808): Clarifying the Interaction between ASC 808 and ASC 606, which clarifies that certain transactions between collaborative arrangement participants should be accounted for as revenue under ASC 606 when the collaborative arrangement participant is a customer. In addition, ASC 808 precludes an entity from presenting consideration from a transaction in a collaborative arrangement as revenue from contracts with customers if the participant is not a customer for that transaction. The Company adopted ASU 2018-18 effective January 1, 2021, noting no material impact on the Company’s results of operations and financial position. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The new guidance modifies ASC 740 to simplify several aspects of accounting for income taxes, including eliminating certain exceptions to the guidance in ASC 740 related to the approach for intraperiod tax allocation. The Company adopted ASU 2019-12 effective January 1, 2021, noting no material impact on the Company’s results of operations and financial position. Recent Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which increases lease transparency and comparability among organizations. Under the new standard, lessees will be required to recognize right-of-use, or ROU, assets and lease liabilities arising from lease arrangements on the balance sheet, with the exception of leases with a term of twelve months or less, which permits a lessee to make an accounting policy election by class of underlying asset not to recognize the ROU assets and lease liabilities. In March 2018, the FASB approved an alternative transition method to the modified retrospective approach, which eliminates the requirement to restate prior period financial statements and allows the cumulative effect of the retrospective allocation to be recorded as an adjustment to the opening balance of retained earnings at the date of adoption. In November 2019, the FASB issued ASU 2019-10, which deferred the effective date for certain ASUs including ASU 2016-02. In June 2020, due to the evolving impacts of the COVID-19 pandemic, the FASB issued ASU 2020-05, which further defers the effective date of ASU 2016-02, which is now effective for the Company’s fiscal year beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. The Company plans to adopt the new lease standard in the fiscal year beginning January 1, 2022, using the optional transition method, which allows the Company to recognize a cumulative-effect adjustment to the opening balance of accumulated deficit at the date of adoption and apply the new disclosure requirements beginning in the

Fair Value Measurements

Fair Value Measurements3 Months Ended
Mar. 31, 2021
Fair Value Disclosures [Abstract]
Fair Value MeasurementsFair Value Measurements Cash equivalents and marketable securities are classified as available-for-sale securities and consisted of the following (in thousands): Amortized Gross Gross Fair As of March 31, 2021 Money market funds $ 124,089 $ — $ — $ 124,089 U.S. government agencies securities 113,153 26 — 113,179 Corporate and agency bonds 76,474 1 (45) 76,430 Commercial paper 74,934 — — 74,934 Totals $ 388,650 $ 27 $ (45) $ 388,632 Classified as: Cash and cash equivalents $ 124,089 Short-term marketable securities (amortized cost of $264,561) 264,543 Total $ 388,632 Amortized Gross Gross Fair As of December 31, 2020 Money market funds $ 137,658 $ — $ — $ 137,658 U.S. government agencies securities 98,647 9 (3) 98,653 Commercial paper 41,945 — — 41,945 Corporate and agency bonds 7,543 — (2) $ 7,541 Totals $ 285,793 $ 9 $ (5) $ 285,797 Classified as: Cash and cash equivalents $ 137,658 Short-term marketable securities (amortized cost of $148,135) 148,139 Total $ 285,797 Cash and cash equivalents in the table above excludes cash on deposit with banks of $24.0 million and $9.4 million as of March 31, 2021 and December 31, 2020, respectively. To date, the Company has not recorded any impairment charges against the market value of its marketable securities. In determining whether a decline is other than temporary, the Company considers various factors including the length of time and extent to which the market value has been less than cost, the financial condition and near-term prospects of the issuer and the Company’s intent and ability to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in market value. As of March 31, 2021 and December 31, 2020, the Company’s marketable securities had remaining contractual maturities less than one year. As of March 31, 2021, there were eleven marketable securities in an unrealized loss position compared to one marketable security in an unrealized loss position as of December 31, 2020. Marketable securities that had been in unrealized loss positions as of March 31, 2021 and December 31, 2020 had been in an unrealized loss position for less than 12 months. The Company does not intend to sell marketable securities that are in an unrealized loss position and it is highly unlikely that the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table summarizes, by major security type, our available-for-sale securities that were measured at fair value on a recurring basis and were categorized using the fair value hierarchy (in thousands): Fair Value Measurements As of March 31, 2021 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 124,089 $ — $ — $ 124,089 U.S. government agencies securities — 113,179 — 113,179 Commercial paper — 74,934 — 74,934 Corporate and agency bonds — 76,430 — 76,430 Totals $ 124,089 $ 264,543 $ — $ 388,632 Fair Value Measurements As of December 31, 2020 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 137,658 $ — $ — $ 137,658 U.S. government agencies securities — 98,653 — 98,653 Commercial paper — 41,945 — 41,945 Corporate and agency bonds — 7,541 — 7,541 Totals $ 137,658 $ 148,139 $ — $ 285,797 The carrying amounts of cash and cash equivalents, the related party receivable and contract asset from collaboration and other current assets and liabilities approximate their respective fair values due to their short-term nature. The Company estimates the fair values of investments in corporate agency bond securities, commercial paper and government agencies securities using Level 2 inputs by taking into consideration valuations obtained from third-party pricing services. There were no transfers of assets or liabilities between the fair value measurement levels during the three months ended March 31, 2021 and year ended December 31, 2020.

Balance Sheet Components

Balance Sheet Components3 Months Ended
Mar. 31, 2021
Statement of Financial Position [Abstract]
Balance Sheet ComponentsBalance Sheet Components Cash, Cash Equivalents and Restricted Cash A reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets to the amount reported within the condensed consolidated statements of cash flows is as follows (in thousands): March 31, December 31, Cash and cash equivalents $ 148,113 $ 147,017 Restricted cash 1,499 1,499 Total cash, cash equivalents and restricted cash $ 149,612 $ 148,516 Property and Equipment Property and equipment consisted of the following (in thousands): March 31, December 31, Leasehold improvements $ 25,880 $ 25,880 Laboratory equipment and office furniture 23,585 23,638 Computer equipment 1,271 1,271 Construction in process 521 48 Total property and equipment, gross 51,257 50,837 Less: accumulated depreciation and amortization (37,524) (36,311) Total property and equipment, net $ 13,733 $ 14,526 Depreciation expense was $1.6 million and $1.7 million for the three months ended March 31, 2021 and 2020, respectively. Accrued Liabilities Accrued liabilities consisted of the following (in thousands): March 31, December 31, Clinical trials and research and development costs $ 9,758 $ 9,316 Manufacturing costs 8,644 8,297 Personnel-related costs 5,962 8,921 Accrued expenses 5,399 3,411 Total accrued liabilities $ 29,763 $ 29,945

Research Collaboration and Lice

Research Collaboration and License Agreements3 Months Ended
Mar. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Research Collaboration and License AgreementsResearch Collaboration and License Agreements Merck In 2015, the Company entered into a collaboration agreement with Merck, or the Collaboration Agreement, covering the discovery, development and commercialization of novel therapies across a range of therapeutic areas, including a broad, multi-year drug discovery and early development program financially supported by Merck, but scientifically directed by the Company with input from Merck. In exchange for certain rights and access to the Company’s drug discovery approach, in April 2015, Merck paid the Company an upfront cash licensing fee of $94.0 million and purchased approximately $106.0 million of the Company’s Series E convertible preferred stock. The Company considered the ASC 606 criteria for combining contracts and determined that the Collaboration Agreement and stock purchase agreement should be combined into a single contract. The Company accounted for the combined agreement based on the fair values of the assets and services exchanged, resulting in $106.0 million allocated to the equity component and $94.0 million allocated to the revenue components. The Collaboration Agreement contemplated an initial five-year research term, and Merck was granted the unilateral right to extend the research phase of the collaboration for two additional two-year terms. Each extension is considered to be and is accounted for as a separate arrangement, if and when the option is exercised by Merck. Under the current terms of the Collaboration Agreement, Merck is required to pay a $20.0 million extension fee each time it elects to exercise its unilateral right to extend the research phase of the collaboration for an additional two-year term. In March 2019, Merck exercised its first option to extend the research phase of the collaboration for two additional years through March 16, 2022. Under the current terms of the Collaboration Agreement, if and when Merck elects to extend the research phase for an additional two years, the level of funding that Merck will provide to the Company during such extension will be negotiated at the time of the extension, subject to certain minimum and maximum funding limits based on a percentage of the then-existing funding. As part of the two-year extension through March 16, 2022, Merck agreed to continue to fund the Company’s research and development efforts up to $75.0 million each year consistent with the initial five-year term and, in lieu of a $20.0 million extension fee that would have otherwise been payable to the Company, Merck agreed to make additional payments totaling up to $20.0 million in support of the Company’s research and development program activities during 2021 and in the first quarter of 2022. Under the current terms of the Collaboration Agreement, Merck was required to notify the Company no later than March 17, 2021 of its unilateral decision whether to exercise its option to extend the research phase of the collaboration for an additional two-year term through March 16, 2024. In March 2021, Merck initiated discussions with the Company with respect to elements of the ongoing collaboration that might be optimized to better address the evolving interests and priorities of both the Company and Merck during the remainder of the current research phase through March 16, 2022 and during any extension of the current research phase and any tail period after the end of the research phase (which tail period is discussed below). In this regard, the parties continue to negotiate potential modifications to the terms of the collaboration. In order to allow negotiations to proceed, the parties agreed to extend the March 17, 2021 deadline for Merck to deliver its extension notification decision until June 30, 2021. The Company has determined the scientific direction and areas of therapeutic interest, with input from Merck, and is primarily responsible for the conduct of all research, preclinical and early clinical development activities, through human proof-of-concept trials. The Company has made the final determinations as to which compounds to advance into and through initial clinical trials and which to progress into a human proof-of-concept trial and the design of any such trials, with input from Merck through various governance committees. Under the current terms of the Collaboration Agreement, upon completion of a human proof-of-concept study for a particular product candidate, regardless of the results of such study, Merck has the one-time option to obtain an exclusive, worldwide license, on specified terms, to that product candidate, as well as to all other molecules that are directed against the same target and that result in the same effect on such target, collectively referred to as a Merck Licensed Program. For each program that Merck licenses, Merck must pay the Company a one-time fee of $20.0 million. If Merck exercises its license option, Merck is responsible, at its own cost, for any further development and any commercialization activities for compounds within the applicable Merck Licensed Program, subject to the Company’s options to cost and profit share worldwide, and to co-detail those compounds in the United States. Where the Company exercises such an option, the compound is referred to as an NGM Optioned Product. If the Company elects to enter into a cost and profit share on an NGM Optioned Product, Merck has agreed to advance to the Company and/or assume up to 25% of the Company’s share of the global development costs, subject to an aggregate cap over the course of the collaboration. All amounts advanced or assumed accrue interest and would be recouped by Merck in full out of the Company’s share of any profits resulting from sales of the NGM Optioned Product before the Company is entitled to receive any of those profits. If the Company does not elect to enter into a cost and profit-sharing arrangement for a compound it has licensed to Merck, the Company is eligible to receive an aggregate of up to $449.0 million in pre-commercial milestone payments upon the achievement of specific clinical development and regulatory events with respect to the licensed compound for the first three indications in the United States, European Union, or EU, and Japan. The Company is also eligible to receive commercial milestone payments of up to $125.0 million and to receive royalties at ascending low-double digit to mid-teen percentage rates, depending on the level of net sales Merck achieves worldwide for each licensed compound. Under the current terms of the Collaboration Agreement, the Company also granted Merck a worldwide, exclusive right to conduct research and development on, and to manufacture, use and commercialize, small molecule compounds identified or developed by Merck that have specified activity against any target that the Company is researching or developing under the research phase of the collaboration and that, but for use of the Company’s confidential and proprietary information, Merck would not have discovered. If Merck ultimately does not exercise its license option to a collaboration compound the Company has taken through a human proof-of-concept study that is directed to any such target, Merck’s research license for its own small molecule program with respect to such target will become non-exclusive, but it will retain an exclusive license to any small molecule compounds that it has, as of that time, identified and developed. Merck has sole responsibility for research and development of any of these small molecule compounds, at its own cost. The Company is eligible to receive milestone and royalty payments on small molecule compounds that are developed by Merck under such a license from the Company, in some cases at the same rates as those the Company is eligible to receive from Merck for a Merck Licensed Program originating from the Company’s own research and development efforts, provided that, but for use of the Company’s confidential and proprietary information, Merck would not have discovered such small molecule compounds. However, the Company will not have the option to cost and profit share or the option to co-detail those small molecule products. Under the current terms of the Collaboration Agreement, during the three-month period before the end of the research phase, Merck has the right to review the Company’s then-existing programs and to elect to designate one or more such programs for which the Company will be required to continue to conduct research and development for up to three years, referred to as the tail period. Merck will pay all of the Company’s internal and external costs for its work on such Merck-designated programs, up to certain funding caps that decrease over the tail period and are each a specified percentage of certain funding actually provided to the Company by Merck during the last 12 months of the research phase. Merck also has the right to take over such Merck-designated programs and conduct such research and development activities itself or in partnership with a third party, at its own cost, or to terminate the tail period after a specified notice period. If Merck terminates the tail period, it has the right to elect to transition to itself or a third-party partner, at its own cost, any clinical trials that are then being conducted in such Merck-designated programs. If the Company completes a human proof-of-concept trial in one of such Merck-designated programs during the tail period or if Merck or its third-party partner completes a human proof-of-concept trial in one of such Merck-designated programs during or after the tail period, then Merck will have a one-time right to exercise its option to an exclusive, worldwide license for the collaboration product candidate tested in the proof-of-concept trial and certain related molecules in that program. Merck will lose its option rights at the end of the tail period with respect to all programs for which no collaboration product candidate has completed a human proof-of-concept trial by such time, except for Merck-designated programs that Merck is continuing to use commercially reasonable efforts to research and develop. The Company evaluated the Collaboration Agreement with Merck under ASC 606. The Company identified the following promised goods or services at the inception of the Collaboration Agreement: (i) license to growth differentiation factor 15, or GDF15, agonist program; (ii) license to pursue research and development and commercialization of small molecule compounds; (iii) performance of research and development services for five years; (iv) two options to extend performance of the research and development services, each for two additional years; and (v) options to obtain licenses to additional compounds after proof-of-concept trials. The Company determined the GDF15 agonist program license and small molecule program license are not distinct from the research and development services, resulting in these items being combined into a single performance obligation. The Company considered whether the options created material rights in the contract and concluded that the fee attached to the exercise of such options approximated the SSP of the promised goods or services included in the options. Therefore, the options do not give rise to material rights, are not performance obligations in the Collaboration Agreement and, if and when exercised, will be accounted for as separate arrangements under ASC 606. Additionally, if a separate arrangement is created by the exercise of an option, such amounts would then be contingent on events outside of either party’s control, such as products proving to be commercially viable and governmental agencies granting regulatory approval. Such contingencies and uncertainties result in the amounts being constrained and withheld from inclusion in the estimated transaction price of a separate arrangement. Consequently, the estimated transaction price related to the Collaboration Agreement is comprised of the up-front payment and the ongoing research and development reimbursements. Any fees associated with options, including upfront fees, funding fees and milestones, are not included in the transaction price as they are associated with options that are not material rights and, thus, are not performance obligations within the Collaboration Agreement. For example, in November 2018, Merck exercised its option for a license to further research and develop MK-3655, an agonistic antibody discovered by the Company that selectively activates fibroblast growth factor receptor 1c-beta-klotho, or FGFR1c/KLB, and other FGFR1c/KLB agonists and paid the Company $20.0 million. The $20.0 million license fee for MK-3655 was not included in the transaction price and was instead recognized in the period of exercise in the fourth quarter of 2018 as the Company had no further obligation related to that license. The Phase 3 clinical study for MK-3655 has not begun, and the Company has not made an election as to whether it will participate in the cost and profit share or receive milestone and royalty payments. The amounts do not impact the estimated transaction price associated with the single performance obligation identified in the Collaboration Agreement. The transaction price associated with the initial five-year term of the Collaboration Agreement consisted of the $94.0 million upfront fee and the funding amounts of up to $75.0 million per year for each of the first five years of the Collaboration Agreement. No milestones or other forms of consideration were included in the transaction price as those amounts are contingent upon Merck exercising an option for licenses on additional compounds and would, therefore, be pursuant to separate arrangements and were not part of the Collaboration Agreement estimated transaction price. As there was only one performance obligation in the Collaboration Agreement, the transaction price was allocated entirely to that performance obligation. At the end of the initial five-year term of the Collaboration Agreement, the remaining contract liability amount of $4.9 million related to the upfront license fee included within the transaction price as of December 31, 2019 was fully earned and recognized during the three months ended March 31, 2020. The Company has fully recognized revenue of approximately $388.1 million related to the single performance obligation associated with the initial five-year term of the Collaboration Agreement. Upon Merck exercising its option to extend the research phase of the collaboration through March 16, 2022, the Company deemed that a separate arrangement containing a distinct two-year performance obligation to provide distinct research and development services was created on March 17, 2020 in accordance with ASC 606. The transaction price of $170.0 million for this two-year performance obligation consists of the potential funding amounts of up to $75.0 million per year plus the additional funding amount of $20.0 million to be made during 2021 and in the first quarter of 2022 if the Company exceeds the $75.0 million funding cap. The Company also uses a cost-based input method to calculate the corresponding amount of revenue to recognize. In applying the cost-based input measure of revenue recognition, the Company measures actual costs incurred relative to budgeted costs to fulfill this distinct two-year performance obligation. These costs consist of full-time equivalent hours plus allowable external (third-party) costs incurred. Revenue is recognized based on actual costs incurred as a percentage of total budgeted costs as the Company completes its performance obligation applied to the transaction price. The Company re-evaluates the estimate of expected costs to satisfy the performance obligation each reporting period and makes adjustments for any significant changes. In addition, the Company also considers any necessary adjustments in an effort to ensure that the transaction price is within the range of potential funding amounts as described above. As such, management applies considerable judgment in estimating expected costs as such costs are key inputs when applying the cost-based input method. As the Company’s estimated measure of progress is updated at each reporting period and revenue is recognized on a cumulative catch-up basis, a significant change in the estimate of expected costs for the remainder of the contract term could have a material impact on revenue recognized (including the possible reversal of previously recognized revenue) at each reporting period, as well as the related impact on contract assets and liabilities. Since the transaction price includes an additional funding amount of $20.0 million to be made during 2021 and in the first quarter of 2022, the timing of when the revenue is recognized for this additional funding amount for performance of the services and when this additional funding amount can be billed resulted in the recognition of a related party contract asset of $4.6 million at March 31, 2021 and $6.1 million at December 31, 2020. In connection with Merck’s purchase of approximately $106.0 million of our Series E convertible preferred stock in 2015, the Company and Merck entered into an agreement whereby Merck agreed to purchase 4,121,683 shares of the Company’s common stock in a separate private placement concurrent with the completion of the Company’s IPO at a price per share equal to the public offering price of $16.00, resulting in Merck owning approximately 19.9% of the Company’s outstanding shares of common stock following the completion of the Company's initial public offering. A breakout of the milestone payments in connection with the potential achievement of certain clinical development events is as follows (in thousands): First Second Third Upon administration of an applicable product to the first patient in the first Phase 3 clinical trial for such product for the given indication $ 35,000 $ 25,250 $ 17,500 A breakout of the milestone payments in connection with the potential achievement of various regulatory events for each of the three indications, for each of the three geographic areas, is as follows (in thousands): First Second Third Total United States $ 75,000 $ 56,250 $ 37,500 $ 168,750 European Union 60,000 45,000 30,000 135,000 Japan 30,000 22,500 15,000 67,500 $ 165,000 $ 123,750 $ 82,500 $ 371,250 Summary of Related Party Revenue The Company recognized revenue from its collaboration and license agreements as follows (in thousands): Three Months Ended 2021 2020 Related party revenue $ 21,575 $ 24,364 For the three months ended March 31, 2021, the Company recognized collaboration and license revenue under the Collaboration Agreement of $21.6 million primarily related to reimbursable research and development activities associated with the performance obligation for the two-year extension period. For the three months ended March 31, 2020, the Company recognized collaboration and license revenue under the Collaboration Agreement of $24.4 million of which $4.9 million related to the upfront license fee under the initial five-year term that ended in March 2020. Related Party Contract Assets and Liabilities

Commitments and Contingencies

Commitments and Contingencies3 Months Ended
Mar. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and ContingenciesCommitments and Contingencies Operating Lease and Lease Guarantee In December 2015, the Company entered into an operating lease for its corporate office space and laboratory facility at 333 Oyster Point Blvd, South San Francisco, California for approximately 122,000 square feet that expires in December 2023. The lease provided a tenant improvement allowance of $15.2 million that the Company used in 2016 towards $22.3 million in total leasehold improvements that are amortized over the lease term of seven years. The 333 Oyster Point lease agreement required a letter of credit in the amount of $2.3 million as a security deposit to the lease, which the Company has recorded as non-current restricted cash on the condensed consolidated balance sheets. The Company has the right to reduce the letter of credit amount by $0.4 million on each of the third anniversary and fourth anniversary of the rent commencement date. In 2020, the Company reduced its letter of credit by $0.4 million and reclassified that amount from restricted cash to cash and cash equivalents on the condensed consolidated balance sheets. In September 2009, the Company entered into an operating lease for a corporate office space and laboratory facility at 630 Gateway Blvd, in South San Francisco, California for approximately 50,000 square feet, as amended in June 2014. In July 2016, the Company assigned the operating lease of 630 Gateway to Merck, as part of the Company’s relocation to 333 Oyster Point. The operating lease expired in November 2020. Following expiration of the operating lease, the Company retains the obligation to indemnify the landlord and Merck under certain limited circumstances, but has no further payment obligations. The Company recognizes rent expense on a straight-line basis over the lease period with the difference recorded as deferred rent. In addition, tenant improvement allowances recorded are amortized as a reduction to rent expense on a straight-line basis over the lease term. Rent expense under these facility operating leases was approximately $0.5 million for each of the three months ended March 31, 2021 and 2020. Future minimum payments under the unassigned lease obligations described above are as follows as of March 31, 2021 (in thousands): Year Ending December 31, 2021 $ 3,874 2022 5,294 2023 5,455 Total $ 14,623 Indemnification In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties and may provide for indemnification of the counterparty. The Company’s exposure under these agreements is unknown because it involves claims that may be made against it in the future but have not yet been made. In accordance with the Company’s amended and restated certificate of incorporation and its amended and restated bylaws, the Company has indemnification obligations to its officers and directors, subject to some limits, with respect to their service in such capacities. The Company has also entered into indemnification agreements with its directors and certain of its officers. To date, the Company has not been subject to any claims, and it maintains director and officer insurance that may enable it to recover a portion of any amounts paid for future potential claims. The Company’s exposure under these agreements is unknown because it involves claims that may be made against it in the future but have not yet been made. The Company believes that the fair value of these indemnification obligations is minimal and, accordingly, it has not recognized any liabilities relating to these obligations for any period presented.

Stockholders' Equity

Stockholders' Equity3 Months Ended
Mar. 31, 2021
Equity [Abstract]
Stockholders' EquityStockholders’ Equity Preferred Stock The Company has 10,000,000 shares of preferred stock authorized, which may be issued at the discretion of the Company’s board of directors. The board of directors may issue shares of preferred stock in one or more series and fix the number, rights, preferences, privileges and restrictions for such series. These rights, preferences and privileges could include dividend rights, conversion rights, voting rights, terms of redemption, liquidation preferences and sinking fund terms. As of March 31, 2021, the Company did not have any shares of preferred stock issued or outstanding. Common Stock Public Offering of Common Stock In January 2021, the Company sold 5,324,074 shares of its common stock through an underwritten public offering at a price to the public of $27.00 per share for aggregate net proceeds to the Company of $134.6 million, after deducting underwriting discounts and commissions and other offering expenses paid by the Company. The offering closed on January 8, 2021. As of March 31, 2021 and December 31, 2020, the Company had 76,913,578 and 70,585,364 shares of common stock outstanding, respectively, which included shares subject to repurchase of 938 and 6,508, respectively, as a result of early exercise of stock options not yet vested. As of March 31, 2021 and December 31, 2020, the Company reserved shares of common stock for issuance as follows: March 31, December 31, Reserve balance for Sales Agreement 14,190,300 14,190,300 Common stock options outstanding 11,300,905 10,017,918 Common stock options available for grant 6,726,717 6,186,497 ESPP shares available for purchase 700,074 700,074 401(k) Matching Plan 21,930 21,930 Total 32,939,926 31,116,719 Open Market Sale Agreement In June 2020, the Company entered into the Sales Agreement with Jefferies relating to the sale of shares of its common stock. In accordance with the terms of the Sales Agreement, the Company may offer and sell shares of its common stock having an aggregate offering price of up to $150.0 million from time to time through Jefferies acting as its sales agent. As of March 31, 2021, $127.4 million of the Company’s common stock remained available to be sold under the Sales Agreement, subject to conditions specified in the Sales Agreement. Stock Option Plan In 2018, the Company adopted the 2018 Equity Incentive Plan, or the 2018 Plan, for eligible employees, officers, directors, advisors and consultants, which provides for the grant of incentive and non-statutory stock options, restricted stock awards and stock appreciation rights. The terms of the stock option agreements, including vesting requirements, are determined by the board of directors, subject to the provisions of the 2018 Plan. Options granted by the Company generally vest within four years and are exercisable from the grant date until ten years after the date of grant. Vesting of certain employee options may be accelerated in the event of a change in control of the Company. Early Exercise of Stock Options The 2018 Plan allows for the granting of options that may be exercised before the options have vested. Shares issued as a result of early exercise that have not vested are subject to repurchase by the Company upon termination of the purchaser’s employment or services, at the price paid by the purchaser, and are not deemed to be issued for accounting purposes until those related shares vest. The amounts received in exchange for these shares have been recorded as a liability on the condensed consolidated balance sheets and will be reclassified into common stock and additional paid-in-capital as the shares vest. The Company’s right to repurchase these shares generally lapses in equal installments over four years beginning from the original vesting commencement date. Since the beginning of March 2021, the Company has not granted any options under the 2018 Plan that can be early exercised prior to vesting. Stock Option Activity A summary of the activity under the 2008 Plan and the 2018 Plan is as follows: Outstanding Options Weighted Aggregate Number of Weighted Balances at December 31, 2020 10,017,918 $ 10.52 6.45 $ 198,097 Options granted 2,341,750 31.50 Options exercised (1,000,588) 5.90 Options cancelled (58,175) 14.79 Balances at March 31, 2021 11,300,905 $ 15.25 7.33 $ 162,188 Vested and expected to vest at March 31, 2021 11,044,810 $ 15.05 7.28 $ 160,638 Exercisable at March 31, 2021 9,232,405 $ 11.54 6.76 $ 162,108 The aggregate intrinsic values of options outstanding, exercisable, vested and expected to vest were calculated as the difference between the exercise price of the options and the estimated fair value of the Company’s common stock. The weighted-average grant date fair value of stock options granted during the three months ended March 31, 2021 and 2020 was $19.83 and $9.73 per share, respectively. The intrinsic value of stock options exercised was $22.3 million and $12.8 million for the three months ended March 31, 2021 and 2020, respectively. Due to the Company’s net operating losses, the Company did not realize any tax benefits from stock-based payment arrangements for the three months ended March 31, 2021 and 2020. Employee Stock-Based Compensation Expense Employee and director stock-based compensation expense for the three months ended March 31, 2021 and 2020 was calculated based on awards ultimately expected to vest and has been reduced for estimated forfeitures. The following table summarizes stock-based compensation expense related to stock-based payment awards previously granted to employees and directors and the Company’s ESPP for the three months ended March 31, 2021 and 2020, which was allocated as follows (in thousands): Three Months Ended 2021 2020 Research and development $ 3,504 $ 1,873 General and administrative 3,011 1,794 Total stock-based compensation expense $ 6,515 $ 3,667 Stock-based compensation expense related to stock-based payment awards to non-employees for the three months ended March 31, 2021 and 2020 was $67,000 and $28,000, respectively. Employee Stock Purchase Plan Under the ESPP, eligible employees are granted the right to purchase shares of the Company's common stock through payroll deductions that cannot exceed 15% of each employee’s salary. The ESPP provides for a 24-month offering period, which includes four six-month purchase periods. At the end of each purchase period, eligible employees are permitted to purchase shares of common stock at the lower of 85% of fair market value at the beginning of the offering period or fair market value at the end of the purchase period. As of March 31, 2021, 299,926 shares of common stock had been purchased under the ESPP.

Income Taxes

Income Taxes3 Months Ended
Mar. 31, 2021
Income Tax Disclosure [Abstract]
Income TaxesIncome TaxesSince inception, the Company has incurred net losses and expects to record a net loss for the year ending December 31, 2021. Additionally, the Company’s net deferred tax assets have been fully offset by a valuation allowance. Therefore, the Company did not record a tax provision for income taxes for the three months ended March 31, 2021 and 2020.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)3 Months Ended
Mar. 31, 2021
Accounting Policies [Abstract]
Basis of Presentation and Principles of ConsolidationBasis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or U.S. GAAP, and Regulation S-X for interim consolidated financial information. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes for the year ended December 31, 2020 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 filed with the United States Securities and Exchange Commission, or SEC, on March 15, 2021. These unaudited condensed consolidated financial statements reflect all adjustments that management believes are necessary for a fair presentation of the periods presented. All such adjustments are of a normal recurring nature and are not necessarily indicative of results expected for the full fiscal year or for any subsequent interim period. These unaudited condensed consolidated financial statements include the consolidated accounts of NGM Biopharmaceuticals, Inc. and its wholly-owned foreign subsidiary in Australia. All intercompany balances and transactions have been eliminated upon consolidation.
Use of EstimatesUse of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make judgments, assumptions and estimates that affect the reported amounts of assets, liabilities, revenues and expenses. Specific accounts that require management estimates include, but are not limited to, the valuation of common stock and the associated stock-based compensation expense, contract manufacturing accruals, clinical trial accruals and revenue recognition in accordance with Accounting Standards Codification 606 or, ASC 606. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results could differ materially from those estimates.
Uses and Sources of LiquidityUses and Sources of Liquidity Since inception, the Company has incurred net losses and negative cash flow from operations. During the three months ended March 31, 2021, the Company incurred a net loss of $27.5 million compared to $19.1 million for the three months ended March 31, 2020. As of March 31, 2021, the Company had an accumulated deficit of $326.2 million. The Company expects its accumulated deficit will increase significantly over time and does not expect to experience positive cash flows from operations in the near future. As of March 31, 2021, the Company had $412.7 million of cash, cash equivalents and short-term marketable securities. In January 2021, the Company sold 5,324,074 shares of its common stock through an underwritten public offering at a price to the public of $27.00 per share for aggregate net proceeds to the Company of $134.6 million after deducting underwriting discounts and commissions and other offering expenses paid by the Company. In June 2020, the Company entered into an Open Market Sale Agreement SM , or the Sales Agreement, with Jefferies LLC. During the three months ended March 31, 2021, no shares of the Company's common stock were sold pursuant to the Sales Agreement. As of March 31, 2021, $127.4 million of the Company's common stock remained available to be sold under the Sales Agreement, subject to conditions specified in the Sales Agreement. The Company believes its existing cash, cash equivalents and short-term marketable securities will be sufficient to fund its operations for a period of at least one year from the date of these unaudited condensed consolidated financial statements.
Fair Value of Financial InstrumentsFair Value of Financial Instruments The carrying amounts of cash and cash equivalents, the related party receivable from collaboration and other current assets and liabilities approximate their respective fair values due to their short-term nature.
Cash and Cash EquivalentsCash and Cash Equivalents Cash and cash equivalents are stated at fair value. Cash equivalents are securities with an original maturity of three months or less at the time of purchase. The Company limits its credit risk associated with cash and cash equivalents by placing its investments with a bank it believes is highly creditworthy and with highly rated money market funds. As of March 31, 2021 and December 31, 2020, cash and cash equivalents consisted of bank deposits and investments in money market funds.
Marketable SecuritiesMarketable Securities The appropriate classification of the Company’s marketable securities is determined at the time of purchase and such designations are re-evaluated at each balance sheet date. All of the Company’s securities are considered as available-for-sale and carried at estimated fair values and reported in cash equivalents and short-term marketable securities. Unrealized gains and losses on available-for-sale securities are excluded from net loss and reported in accumulated other comprehensive gain as a separate component of stockholders’ equity. Other income (expense), net, includes interest, amortization of purchase premiums and accretion of purchase discounts, realized gains and losses on sales of securities and other-than-temporary declines in the fair value of securities, if any. The cost of securities sold is based on the specific identification method. The Company’s investments are regularly reviewed for other-than-temporary declines in fair value. This review includes the consideration of the cause of the impairment, including the creditworthiness of the security issuers, the number of securities in an unrealized loss position, the severity and duration of the unrealized losses, whether the Company has the intent to sell the securities and whether it is more likely than not that the Company will be required to sell the securities before the recovery of their amortized cost basis. When the Company determines that the decline in fair value of an investment is below its carrying value and this decline is other-than-temporary, the Company reduces the carrying value of the security it holds and records a loss for the amount of such decline. As of March 31, 2021, the Company did not record any impairment related to other-than-temporary declines in the fair value of securities.
Restricted CashRestricted Cash The Company’s restricted cash balance represents collateral required under the Company’s facility lease agreement and is classified as a non-current asset on the condensed consolidated balance sheets, as the collateral will not be returned to the Company within 12 months from the date of these condensed consolidated financial statements.
Concentration of Credit and Other RisksConcentration of Credit and Other Risks Cash and cash equivalents and marketable securities from the Company’s available-for-sale and marketable security portfolio potentially subject the Company to concentrations of credit risk. The Company is invested in money market funds and marketable securities through custodial relationships with major U.S. and Australian banks. Under its investment policy, the Company limits amounts invested in such securities by credit rating, maturity, industry group, investment type and issuer, except for securities issued by the U.S. government. Related party receivables from collaborations are typically unsecured. Accordingly, the Company may be exposed to credit risk generally associated with its current collaboration agreement with Merck Sharp & Dohme Corp., or Merck, and any future collaboration agreements with other collaboration partners. To date, the Company has not experienced any losses related to these receivables. Amounts recognized as revenue prior to the Company having an unconditional right (other than a right that is conditioned only on the passage of time) to receipt are recorded as contract assets in the Company's condensed consolidated balance sheets. Although the Company expects to have an unconditional right to receive such amounts, the Company may be exposed to the risk of not receiving the recorded amounts under its current collaboration agreement with Merck and any future collaboration agreements with other collaboration partners. To date, the Company has not experienced any losses related to contract assets. Merck accounted for 100% of the Company’s revenue for the three months ended March 31, 2021 and 2020.
Property and Equipment, NetProperty and Equipment, Net Property and equipment is recorded at cost and consists of computer equipment, laboratory equipment and office furniture and leasehold improvements. Maintenance and repairs, and training on the use of equipment, are expensed as incurred. Costs that improve assets or extend their economic lives are capitalized. Depreciation is recognized using the straight-line method based on an estimated useful life of the asset, which is as follows: Computer equipment 3 years Laboratory equipment and office furniture 3 years Leasehold improvement Shorter of life of asset or lease term
LeasesLeases The Company’s lease agreements for its laboratory and office facilities are classified as operating leases. Rent expense is recognized on a straight-line basis over the term of the lease. Incentives granted under the Company’s facilities leases, including allowances to fund leasehold improvements and rent holidays, are capitalized and are recognized as reductions to rental expense on a straight-line basis over the term of the lease.
Impairment of Long-Lived AssetsImpairment of Long-Lived Assets Long-lived assets, such as property and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset 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 the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized as the amount by which the carrying amount of the asset exceeds the estimated fair value of the asset. As of March 31, 2021 and December 31, 2020, no revision to the remaining useful lives or write-down of long-lived assets was required.
Income TaxesIncome Taxes Income taxes are accounted for under the liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and the operating loss and tax credit carryforwards. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Deferred tax assets and liabilities are measured at the balance sheet date using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period such tax rate changes are enacted.
Revenue RecognitionRevenue Recognition Accounting Standards Update, or ASU, 2014-09, Revenue from Contracts with Customers (Topic 606) requires an entity to recognize revenue upon the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company applies the following five-step revenue recognition model outlined in ASC 606 to adhere to this core principle: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the Company satisfies a performance obligation. All of the Company’s revenue to date has been generated from its collaboration agreements, primarily its collaboration agreement with Merck. The terms of these agreements generally require the Company to provide (i) license options for its compounds, (ii) research and development services and (iii) non-mandatory services in connection with participation in research or steering committees. Payments received under these arrangements may include non-refundable upfront license fees, partial or complete reimbursement of research and development costs, contingent consideration payments based on the achievement of defined collaboration objectives and royalties on sales of commercialized products. In some agreements, the collaboration partner is solely responsible for meeting defined objectives that trigger contingent or royalty payments. Often the partner only pursues such objectives subsequent to exercising an optional license on compounds identified as a result of the research and development services performed under the collaboration agreement. The Company assesses whether the promises in its arrangements, including any options provided to the partner, are considered distinct performance obligations that should be accounted for separately. Judgment is required to determine whether the license to a compound is distinct from research and development services or participation in research or steering committees, as well as whether options create material rights in the contract. The transaction price in each arrangement is generally comprised of a non-refundable upfront fee and unconstrained variable consideration related to the performance of research and development services. The Company typically submits a budget for the research and development services to the partner in advance of performing the services. The transaction price is allocated to the identified performance obligations based on the standalone selling price, or SSP, of each distinct performance obligation. Judgment is required to determine the SSP. In instances where the SSP is not directly observable, such as when a license or service is not sold separately, SSP is determined using information that may include market conditions and other observable inputs. The Company utilizes judgment to assess the nature of its performance obligations to determine whether they are satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress toward completion. The Company evaluates the measure of progress each reporting period and, if necessary, adjusts the measure of performance and related revenue recognition. The Company’s collaboration agreements may include contingent payments related to specified development and regulatory milestones or contingent payments for royalties based on sales of a commercialized product. Milestones can be achieved for such activities in connection with progress in clinical trials, regulatory filings in various geographical markets and marketing approvals from health authorities. Sales-based royalties are generally related to the volume of annual sales of a commercialized product. At the inception of each agreement that includes such payments, the Company evaluates whether the milestones are considered probable of being achieved and estimates the amount to be included in the transaction price by using the most likely amount method. If it is probable that a significant revenue reversal would not occur, the associated milestone value is included in the transaction price. Milestone payments that are not within the Company’s or its partner’s control, such as those related to regulatory approvals, are not considered probable of being achieved until those approvals are received. The transaction price is then allocated to each performance obligation based on a relative SSP basis. At the end of each subsequent reporting period, the Company re-evaluates the probability of achievement of each such milestone and any related constraint and, if necessary, adjusts its estimate of the overall transaction price. Pursuant to the guidance in ASC 606, sales-based royalties are not included in the transaction price. Instead, royalties are recognized at the later of when the performance obligation is satisfied or partially satisfied, or when the sale that gives rise to the royalty occurs.
Research and DevelopmentResearch and Development Research and development costs are expensed as incurred. Research and development expenses primarily include salaries and benefits for medical, clinical, quality, preclinical, manufacturing and research personnel, costs related to research activities, preclinical studies, clinical trials, drug manufacturing expenses and allocated overhead and facility occupancy costs. The Company accounts for non-refundable advance payments for goods or services that will be used in future research and development activities as expenses when the goods have been received or when the service has been performed rather than when the payment is made. Clinical trial costs are a component of research and development expenses. The Company expenses costs for its clinical trial activities performed by third parties, including clinical research organizations, or CROs, and other service providers, as they are incurred, based upon estimates of the work completed over the life of the individual
Stock-Based CompensationStock-Based Compensation The Company’s stock-based compensation programs include stock option grants, as well as shares issued under its 2019 Employee Stock Purchase Plan, or ESPP. Grants are awarded to employees, directors and nonemployees. The Company measures employee and director stock-based compensation expense for all stock-based awards at the grant date based on the fair value measurement of the award. Subsequent to the adoption of ASU No. 2018-07, Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting on January 1, 2019, stock-based compensation expense for non-employee awards is measured based on the fair value on the date of adoption. The expense is recorded on a straight-line basis over the requisite service period, which is generally the vesting period, for the entire award. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures materially differ from estimates. The Company calculates the fair value measurement of stock options using the Black-Scholes option-pricing model.
Foreign Currency TransactionsForeign Currency Transactions The functional currency of NGM Biopharmaceuticals Australia Pty Ltd., the Company’s wholly-owned subsidiary, is the U.S. dollar. Accordingly, all monetary assets and liabilities of the subsidiary are remeasured into U.S. dollars at the current period-end exchange rates and non-monetary assets are remeasured using historical exchange rates. Income and expense elements are remeasured to U.S. dollars using the average exchange rates in effect during the period. Remeasurement gains and losses are recorded as other income (expense), net on the condensed consolidated statements of operations. The Company is subject to foreign currency risk with respect to its clinical and manufacturing contracts denominated in currencies other than the U.S. dollar, primarily British Pounds, Swiss Francs, Australian dollars and the Euro. Payments on contracts denominated in foreign currencies are made at the spot rate on the day of payment. Changes in the exchange rate between billing dates and payment dates are recorded within other income (expense), net, on the condensed consolidated statements of operations.
Comprehensive LossComprehensive LossComprehensive loss is composed of net loss and certain changes in stockholders’ equity that are excluded from net loss, primarily unrealized gains or losses, net of taxes, on the Company’s marketable securities.
Net Loss per ShareNet Loss per Share Basic net loss per share is calculated by dividing net loss by the weighted average number of shares outstanding during the period, less shares subject to repurchase and excludes any dilutive effects of stock-based options and awards. Diluted net income per ordinary share is computed by giving effect to all potentially dilutive shares, including common stock issuable upon exercise of stock options. However, where there is a diluted net loss per ordinary share, no adjustment is made for potentially issuable shares since their effect would be anti-dilutive. In this case, diluted net loss per share is equal to basic net loss per share.
Segment and Geographical InformationSegment and Geographical Information The Company operates in one business segment. Substantially all of the Company’s long-lived assets, comprised of property and equipment, are based in the United States. For the three months ended March 31, 2021 and 2020, the Company’s revenues were entirely within the United States based upon the location of the Company and Merck.
Recent Accounting Pronouncements, Recently Adopted Accounting Pronouncements and Recent Accounting Pronouncements Not Yet AdoptedRecent Accounting Pronouncements New accounting pronouncements are issued by the Financial Accounting Standards Board, or FASB, or other standard setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed, the impact of recently issued standards that are not yet effective will not have a material impact on the Company’s results of operations and financial position upon adoption. Under the Jumpstart Our Business Startups Act of 2012, as amended, the JOBS Act, the Company meets the definition of an emerging growth company and has elected the extended transition period for complying with new or revised accounting standards pursuant to Section 107(b) of the JOBS Act. Recently Adopted Accounting Pronouncements In November 2018, the FASB issued ASU 2018-18, Collaborative Arrangements (ASC 808): Clarifying the Interaction between ASC 808 and ASC 606, which clarifies that certain transactions between collaborative arrangement participants should be accounted for as revenue under ASC 606 when the collaborative arrangement participant is a customer. In addition, ASC 808 precludes an entity from presenting consideration from a transaction in a collaborative arrangement as revenue from contracts with customers if the participant is not a customer for that transaction. The Company adopted ASU 2018-18 effective January 1, 2021, noting no material impact on the Company’s results of operations and financial position. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The new guidance modifies ASC 740 to simplify several aspects of accounting for income taxes, including eliminating certain exceptions to the guidance in ASC 740 related to the approach for intraperiod tax allocation. The Company adopted ASU 2019-12 effective January 1, 2021, noting no material impact on the Company’s results of operations and financial position. Recent Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which increases lease transparency and comparability among organizations. Under the new standard, lessees will be required to recognize right-of-use, or ROU, assets and lease liabilities arising from lease arrangements on the balance sheet, with the exception of leases with a term of twelve months or less, which permits a lessee to make an accounting policy election by class of underlying asset not to recognize the ROU assets and lease liabilities. In March 2018, the FASB approved an alternative transition method to the modified retrospective approach, which eliminates the requirement to restate prior period financial statements and allows the cumulative effect of the retrospective allocation to be recorded as an adjustment to the opening balance of retained earnings at the date of adoption. In November 2019, the FASB issued ASU 2019-10, which deferred the effective date for certain ASUs including ASU 2016-02. In June 2020, due to the evolving impacts of the COVID-19 pandemic, the FASB issued ASU 2020-05, which further defers the effective date of ASU 2016-02, which is now effective for the Company’s fiscal year beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. The Company plans to adopt the new lease standard in the fiscal year beginning January 1, 2022, using the optional transition method, which allows the Company to recognize a cumulative-effect adjustment to the opening balance of accumulated deficit at the date of adoption and apply the new disclosure requirements beginning in the

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)3 Months Ended
Mar. 31, 2021
Accounting Policies [Abstract]
Estimated Useful Life of AssetCosts that improve assets or extend their economic lives are capitalized. Depreciation is recognized using the straight-line method based on an estimated useful life of the asset, which is as follows: Computer equipment 3 years Laboratory equipment and office furniture 3 years Leasehold improvement Shorter of life of asset or lease term
Computation of Net Loss Per Common ShareNet loss per share was computed as follows (in thousands, except share and per share amounts): Three Months Ended 2021 2020 Numerator: Net loss $ (27,544) $ (19,115) Denominator: Weighted average number of shares used in calculating net loss per share—basic and diluted 76,034,145 67,396,229 Net loss per share—basic and diluted $ (0.36) $ (0.28)
Potentially Dilutive Securities Not Included in the Diluted Net Loss Per Share CalculationsPotentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows: Three Months Ended 2021 2020 Options to purchase common stock 11,300,905 10,824,034 Shares committed under ESPP 291,992 396,360 Total 11,592,897 11,220,394

Fair Value Measurements (Tables

Fair Value Measurements (Tables)3 Months Ended
Mar. 31, 2021
Fair Value Disclosures [Abstract]
Summary of Cash and Cash Equivalents and Marketable Securities Classified as Available-for-sale SecuritiesCash equivalents and marketable securities are classified as available-for-sale securities and consisted of the following (in thousands): Amortized Gross Gross Fair As of March 31, 2021 Money market funds $ 124,089 $ — $ — $ 124,089 U.S. government agencies securities 113,153 26 — 113,179 Corporate and agency bonds 76,474 1 (45) 76,430 Commercial paper 74,934 — — 74,934 Totals $ 388,650 $ 27 $ (45) $ 388,632 Classified as: Cash and cash equivalents $ 124,089 Short-term marketable securities (amortized cost of $264,561) 264,543 Total $ 388,632 Amortized Gross Gross Fair As of December 31, 2020 Money market funds $ 137,658 $ — $ — $ 137,658 U.S. government agencies securities 98,647 9 (3) 98,653 Commercial paper 41,945 — — 41,945 Corporate and agency bonds 7,543 — (2) $ 7,541 Totals $ 285,793 $ 9 $ (5) $ 285,797 Classified as: Cash and cash equivalents $ 137,658 Short-term marketable securities (amortized cost of $148,135) 148,139 Total $ 285,797
Summary of Assets and Liabilities Measured at Fair Value on Recurring BasisThe following table summarizes, by major security type, our available-for-sale securities that were measured at fair value on a recurring basis and were categorized using the fair value hierarchy (in thousands): Fair Value Measurements As of March 31, 2021 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 124,089 $ — $ — $ 124,089 U.S. government agencies securities — 113,179 — 113,179 Commercial paper — 74,934 — 74,934 Corporate and agency bonds — 76,430 — 76,430 Totals $ 124,089 $ 264,543 $ — $ 388,632 Fair Value Measurements As of December 31, 2020 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 137,658 $ — $ — $ 137,658 U.S. government agencies securities — 98,653 — 98,653 Commercial paper — 41,945 — 41,945 Corporate and agency bonds — 7,541 — 7,541 Totals $ 137,658 $ 148,139 $ — $ 285,797

Balance Sheet Components (Table

Balance Sheet Components (Tables)3 Months Ended
Mar. 31, 2021
Statement of Financial Position [Abstract]
Schedule of Reconciliation of Cash, Cash Equivalent and Restricted CashA reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets to the amount reported within the condensed consolidated statements of cash flows is as follows (in thousands): March 31, December 31, Cash and cash equivalents $ 148,113 $ 147,017 Restricted cash 1,499 1,499 Total cash, cash equivalents and restricted cash $ 149,612 $ 148,516
Property and EquipmentProperty and equipment consisted of the following (in thousands): March 31, December 31, Leasehold improvements $ 25,880 $ 25,880 Laboratory equipment and office furniture 23,585 23,638 Computer equipment 1,271 1,271 Construction in process 521 48 Total property and equipment, gross 51,257 50,837 Less: accumulated depreciation and amortization (37,524) (36,311) Total property and equipment, net $ 13,733 $ 14,526
Accrued LiabilitiesAccrued liabilities consisted of the following (in thousands): March 31, December 31, Clinical trials and research and development costs $ 9,758 $ 9,316 Manufacturing costs 8,644 8,297 Personnel-related costs 5,962 8,921 Accrued expenses 5,399 3,411 Total accrued liabilities $ 29,763 $ 29,945

Research Collaboration and Li_2

Research Collaboration and License Agreements (Tables)3 Months Ended
Mar. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Milestone Payments by IndicationsA breakout of the milestone payments in connection with the potential achievement of certain clinical development events is as follows (in thousands): First Second Third Upon administration of an applicable product to the first patient in the first Phase 3 clinical trial for such product for the given indication $ 35,000 $ 25,250 $ 17,500 A breakout of the milestone payments in connection with the potential achievement of various regulatory events for each of the three indications, for each of the three geographic areas, is as follows (in thousands): First Second Third Total United States $ 75,000 $ 56,250 $ 37,500 $ 168,750 European Union 60,000 45,000 30,000 135,000 Japan 30,000 22,500 15,000 67,500 $ 165,000 $ 123,750 $ 82,500 $ 371,250
Schedule of Recognized Revenue from Collaboration and License AgreementsThe Company recognized revenue from its collaboration and license agreements as follows (in thousands): Three Months Ended 2021 2020 Related party revenue $ 21,575 $ 24,364

Commitments and Contingencies (

Commitments and Contingencies (Tables)3 Months Ended
Mar. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Future Minimum Commitments under Unassigned Lease ObligationsFuture minimum payments under the unassigned lease obligations described above are as follows as of March 31, 2021 (in thousands): Year Ending December 31, 2021 $ 3,874 2022 5,294 2023 5,455 Total $ 14,623

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)3 Months Ended
Mar. 31, 2021
Equity [Abstract]
Schedule of Shares of Common Stock Reserved for IssuanceAs of March 31, 2021 and December 31, 2020, the Company reserved shares of common stock for issuance as follows: March 31, December 31, Reserve balance for Sales Agreement 14,190,300 14,190,300 Common stock options outstanding 11,300,905 10,017,918 Common stock options available for grant 6,726,717 6,186,497 ESPP shares available for purchase 700,074 700,074 401(k) Matching Plan 21,930 21,930 Total 32,939,926 31,116,719
Summary of Activity under 2008 Plan and 2018 PlanA summary of the activity under the 2008 Plan and the 2018 Plan is as follows: Outstanding Options Weighted Aggregate Number of Weighted Balances at December 31, 2020 10,017,918 $ 10.52 6.45 $ 198,097 Options granted 2,341,750 31.50 Options exercised (1,000,588) 5.90 Options cancelled (58,175) 14.79 Balances at March 31, 2021 11,300,905 $ 15.25 7.33 $ 162,188 Vested and expected to vest at March 31, 2021 11,044,810 $ 15.05 7.28 $ 160,638 Exercisable at March 31, 2021 9,232,405 $ 11.54 6.76 $ 162,108
Summary of Stock Based Compensation ExpenseThe following table summarizes stock-based compensation expense related to stock-based payment awards previously granted to employees and directors and the Company’s ESPP for the three months ended March 31, 2021 and 2020, which was allocated as follows (in thousands): Three Months Ended 2021 2020 Research and development $ 3,504 $ 1,873 General and administrative 3,011 1,794 Total stock-based compensation expense $ 6,515 $ 3,667

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Narrative (Details) $ / shares in Units, $ in Thousands1 Months Ended3 Months Ended
Jan. 31, 2021USD ($)$ / sharessharesMar. 31, 2021USD ($)segmentMar. 31, 2020USD ($)segmentDec. 31, 2020USD ($)
Summary Of Significant Accounting Policies [Line Items]
Net loss $ 27,544 $ 19,115
Accumulated deficit326,175 $ 298,631
Cash, cash equivalents and marketable securities $ 412,700
Number of operating business segment | segment1 1
Common stock remaining to be sold under open market sales agreement $ 127,400
Merck | Revenue | Customer Concentration Risk
Summary Of Significant Accounting Policies [Line Items]
Percentage of revenue100.00%100.00%
Public Stock Offering
Summary Of Significant Accounting Policies [Line Items]
Number of shares issued in transaction (in shares) | shares5,324,074
Share price (in dollars per share) | $ / shares $ 27
Aggregate net proceeds $ 134,600

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Estimated Useful Life of Asset (Details)3 Months Ended
Mar. 31, 2021
Computer equipment
Property, Plant and Equipment [Line Items]
Estimated useful life of asset3 years
Laboratory equipment and office furniture
Property, Plant and Equipment [Line Items]
Estimated useful life of asset3 years

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Computation of Net Loss Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Numerator:
Net loss $ (27,544) $ (19,115)
Denominator:
Weighted average shares used to compute net loss per share, basic and diluted (in shares)76,034,145 67,396,229
Net loss per share—basic and diluted (in dollars per share) $ (0.36) $ (0.28)

Summary of Significant Accoun_7

Summary of Significant Accounting Policies - Potentially Dilutive Securities Not Included in the Diluted Net Loss Per Share Calculations (Details) - shares3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities not included in calculations of diluted per share11,592,897 11,220,394
Options to Purchase Common Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities not included in calculations of diluted per share11,300,905 10,824,034
Share-based Payment Arrangement
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities not included in calculations of diluted per share291,992 396,360

Fair Value Measurements - Summa

Fair Value Measurements - Summary of Cash and Cash Equivalents and Marketable Securities Classified as Available-for-sale Securities (Details) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]
Gross Unrealized Gain $ 27 $ 9
Gross Unrealized Loss(45)(5)
Fair Value388,632 285,797
Amortized Cost388,650 285,793
Money market funds
Debt Securities, Available-for-sale [Line Items]
Gross Unrealized Gain0 0
Gross Unrealized Loss0 0
Fair Value124,089 137,658
Amortized Cost124,089 137,658
U.S. government agencies securities
Debt Securities, Available-for-sale [Line Items]
Gross Unrealized Gain26 9
Gross Unrealized Loss0 (3)
Fair Value113,179 98,653
Amortized Cost113,153 98,647
Commercial paper
Debt Securities, Available-for-sale [Line Items]
Gross Unrealized Gain0 0
Gross Unrealized Loss0 0
Fair Value74,934 41,945
Amortized Cost74,934 41,945
Corporate and agency bonds
Debt Securities, Available-for-sale [Line Items]
Gross Unrealized Gain1 0
Gross Unrealized Loss(45)(2)
Fair Value76,430 7,541
Amortized Cost76,474 7,543
Cash and cash equivalents
Debt Securities, Available-for-sale [Line Items]
Fair Value124,089 137,658
Short-term marketable securities
Debt Securities, Available-for-sale [Line Items]
Fair Value264,543 148,139
Amortized Cost $ 264,561 $ 148,135

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) $ in MillionsMar. 31, 2021USD ($)securityDec. 31, 2020USD ($)security
Fair Value Disclosures [Abstract]
Cash on deposit with banks | $ $ 24 $ 9.4
Number of marketable securities in unrealized loss positions less than 12 months | security11 1

Fair Value Measurements - Sum_2

Fair Value Measurements - Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Fair Value Measurements, Recurring - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Assets:
Fair value of financial assets $ 388,632 $ 285,797
Level 1
Assets:
Fair value of financial assets124,089 137,658
Level 2
Assets:
Fair value of financial assets264,543 148,139
Level 3
Assets:
Fair value of financial assets0 0
Money market funds
Assets:
Fair value of financial assets124,089 137,658
Money market funds | Level 1
Assets:
Fair value of financial assets124,089 137,658
Money market funds | Level 2
Assets:
Fair value of financial assets0 0
Money market funds | Level 3
Assets:
Fair value of financial assets0 0
U.S. government agencies securities
Assets:
Fair value of financial assets113,179 98,653
U.S. government agencies securities | Level 1
Assets:
Fair value of financial assets0 0
U.S. government agencies securities | Level 2
Assets:
Fair value of financial assets113,179 98,653
U.S. government agencies securities | Level 3
Assets:
Fair value of financial assets0 0
Commercial paper
Assets:
Fair value of financial assets74,934 41,945
Commercial paper | Level 1
Assets:
Fair value of financial assets0 0
Commercial paper | Level 2
Assets:
Fair value of financial assets74,934 41,945
Commercial paper | Level 3
Assets:
Fair value of financial assets0 0
Corporate and agency bonds
Assets:
Fair value of financial assets76,430 7,541
Corporate and agency bonds | Level 1
Assets:
Fair value of financial assets0 0
Corporate and agency bonds | Level 2
Assets:
Fair value of financial assets76,430 7,541
Corporate and agency bonds | Level 3
Assets:
Fair value of financial assets $ 0 $ 0

Balance Sheet Components - Sche

Balance Sheet Components - Schedule of Reconciliation of Cash, Cash Equivalent and Restricted Cash (Details) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020Mar. 31, 2020Dec. 31, 2019
Statement of Financial Position [Abstract]
Cash and cash equivalents $ 148,113 $ 147,017
Restricted cash1,499 1,499
Total cash, cash equivalents and restricted cash $ 149,612 $ 148,516 $ 258,826 $ 247,472

Balance Sheet Components - Sc_2

Balance Sheet Components - Schedule of Property and Equipment (Details) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Total property and equipment, gross $ 51,257 $ 50,837
Less: accumulated depreciation and amortization(37,524)(36,311)
Total property and equipment, net13,733 14,526 $ 22,300
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total property and equipment, gross25,880 25,880
Laboratory equipment and office furniture
Property, Plant and Equipment [Line Items]
Total property and equipment, gross23,585 23,638
Computer equipment
Property, Plant and Equipment [Line Items]
Total property and equipment, gross1,271 1,271
Construction in process
Property, Plant and Equipment [Line Items]
Total property and equipment, gross $ 521 $ 48

Balance Sheet Components - Narr

Balance Sheet Components - Narrative (Details) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Statement of Financial Position [Abstract]
Depreciation expense $ 1,554 $ 1,731

Balance Sheet Components - Sc_3

Balance Sheet Components - Schedule of Accrued Liabilities (Details) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Statement of Financial Position [Abstract]
Clinical trials and research and development costs $ 9,758 $ 9,316
Manufacturing costs8,644 8,297
Personnel-related costs5,962 8,921
Accrued expenses5,399 3,411
Total accrued liabilities $ 29,763 $ 29,945

Research Collaboration and Li_3

Research Collaboration and License Agreements - Narrative (Details)Mar. 17, 2020USD ($)Nov. 30, 2018USD ($)Apr. 30, 2015USD ($)segmentMar. 31, 2022USD ($)Mar. 31, 2021USD ($)$ / sharessharesMar. 31, 2020USD ($)Dec. 31, 2019USD ($)Dec. 31, 2020USD ($)
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Performance of R&D services period5 years
Amount of additional fund received for research activities $ 20,000,000
Collaboration and license revenue21,575,000 $ 24,364,000
Related party revenue21,600,000 24,400,000
Related party contract asset4,600,000 $ 6,100,000
Contract liability0 $ 0
Forecast
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Amount of additional fund received for research activities $ 20,000,000
Collaboration Agreement | Merck Sharp & Dohme Corp
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Upfront payment received $ 94,000,000
Proceeds from issuance of preferred stock106,000,000
Fair values of assets and services exchanged allocated to equity component106,000,000
Fair values of assets and services exchanged allocated to revenue component $ 94,000,000
Performance of R&D services period5 years
Number of options to extend performance of research program | segment2
Additional term2 years
Research collaboration and license agreements extension fee $ 20,000,000
Amount of fund received for research activities75,000,000
Upfront license fee $ 20,000,000 $ 4,900,000
Aggregate milestone payments449,000,000
Milestone payments $ 125,000,000 $ 20,000,000
Collaboration and license revenue $ 388,100,000
Transaction price for the two-year performance obligation $ 170,000,000
Collaborative arrangement funding, amount $ 75,000,000
Public offering price of common stock (in dollars per share) | $ / shares $ 16
Percentage of outstanding shares of common stock owned by related party19.90%
Collaboration Agreement | Merck Sharp & Dohme Corp | Subsequent Event
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Milestone payments $ 20,000,000
Collaboration Agreement | Private Placement | Merck Sharp & Dohme Corp
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Sale of common stock (in shares) | shares4,121,683

Research Collaboration and Li_4

Research Collaboration and License Agreements - Schedule of Milestone Payments by Indications (Details) - Collaboration Agreement $ in Thousands3 Months Ended
Mar. 31, 2021USD ($)
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Milestone payments in connection with potential achievement of certain regulatory events $ 371,250
United States
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Milestone payments in connection with potential achievement of certain regulatory events168,750
European Union
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Milestone payments in connection with potential achievement of certain regulatory events135,000
Japan
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Milestone payments in connection with potential achievement of certain regulatory events67,500
First Indication
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Upon administration of an applicable product to the first patient in the first Phase 3 clinical trial for such product for the given indication35,000
Milestone payments in connection with potential achievement of certain regulatory events165,000
First Indication | United States
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Milestone payments in connection with potential achievement of certain regulatory events75,000
First Indication | European Union
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Milestone payments in connection with potential achievement of certain regulatory events60,000
First Indication | Japan
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Milestone payments in connection with potential achievement of certain regulatory events30,000
Second Indication
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Upon administration of an applicable product to the first patient in the first Phase 3 clinical trial for such product for the given indication25,250
Milestone payments in connection with potential achievement of certain regulatory events123,750
Second Indication | United States
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Milestone payments in connection with potential achievement of certain regulatory events56,250
Second Indication | European Union
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Milestone payments in connection with potential achievement of certain regulatory events45,000
Second Indication | Japan
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Milestone payments in connection with potential achievement of certain regulatory events22,500
Third Indication
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Upon administration of an applicable product to the first patient in the first Phase 3 clinical trial for such product for the given indication17,500
Milestone payments in connection with potential achievement of certain regulatory events82,500
Third Indication | United States
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Milestone payments in connection with potential achievement of certain regulatory events37,500
Third Indication | European Union
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Milestone payments in connection with potential achievement of certain regulatory events30,000
Third Indication | Japan
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Milestone payments in connection with potential achievement of certain regulatory events $ 15,000

Research Collaboration and Li_5

Research Collaboration and License Agreements - Schedule of Recognized Revenue from Collaboration and License Agreements (Details) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Related party revenue $ 21,600 $ 24,400
Collaboration Agreement | Merck Sharp & Dohme Corp
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Related party revenue $ 21,575 $ 24,364

Commitments and Contingencies -

Commitments and Contingencies - Narrative (Details) $ in Thousands3 Months Ended
Mar. 31, 2021USD ($)Mar. 31, 2020USD ($)Dec. 31, 2020USD ($)Dec. 31, 2016USD ($)Dec. 31, 2015USD ($)ft²Sep. 30, 2009ft²
Operating Leased Assets [Line Items]
Area of leased property | ft²122,000 50,000
Tenant improvement allowances $ 15,200
Total leasehold improvements $ 13,733 $ 14,526 $ 22,300
Operating lease term7 years
Reduction in letter of credit400
Rent expense500 $ 500
Letter of Credit
Operating Leased Assets [Line Items]
Letter of credit as a security deposit $ 2,300
Reduction in letter of credit $ 400

Commitments and Contingencies_2

Commitments and Contingencies - Future Minimum Commitments under Unassigned Lease Obligations (Details) $ in ThousandsMar. 31, 2021USD ($)
Commitments and Contingencies Disclosure [Abstract]
2021 $ 3,874
20225,294
20235,455
Total $ 14,623

Stockholders' Equity - Narrativ

Stockholders' Equity - Narrative (Details)1 Months Ended3 Months Ended12 Months Ended
Jan. 31, 2021USD ($)$ / sharessharesJun. 30, 2020USD ($)Mar. 31, 2021USD ($)period$ / sharessharesMar. 31, 2020USD ($)$ / sharesDec. 31, 2018Dec. 31, 2020shares
Class of Stock [Line Items]
Preferred stock, shares authorized (in shares)10,000,000 10,000,000
Common stock, shares outstanding (in shares)76,913,578 70,585,364
Stock repurchase plan, authorized (in shares)938 6,508
Aggregate offering price | $ $ 150,000,000
Common stock remaining to be sold under open market sales agreement | $ $ 127,400,000
Weighted-average grant date fair value of stock options, granted (in dollars per share) | $ / shares $ 19.83 $ 9.73
Intrinsic value of stock options exercised | $ $ 22,300,000 $ 12,800,000
Share-based compensation expense | $ $ 67,000 $ 28,000
Common stock, shares issued (in shares)76,913,578 70,585,364
ESPP
Class of Stock [Line Items]
Maximum percentage of payroll deductions of employee's compensation15.00%
Maximum duration for purchase under employee stock purchase plan24 months
Number of purchase periods | period4
Duration of each purchase period6 months
Percentage of purchase of common stock fair market value85.00%
Common stock, shares issued (in shares)299,926
Public Stock Offering
Class of Stock [Line Items]
Number of shares issued in transaction (in shares)5,324,074
Share price (in dollars per share) | $ / shares $ 27
Aggregate net proceeds | $ $ 134,600,000
Minimum
Class of Stock [Line Items]
Stock options, vesting period4 years
Maximum
Class of Stock [Line Items]
Stock options, vesting period10 years

Stockholders' Equity - Schedule

Stockholders' Equity - Schedule of Shares of Common Stock Reserved for Issuance (Details) - sharesMar. 31, 2021Dec. 31, 2020
Class of Stock [Line Items]
Total32,939,926 31,116,719
Reserve balance for Sales Agreement
Class of Stock [Line Items]
Total14,190,300 14,190,300
Common stock options outstanding
Class of Stock [Line Items]
Total11,300,905 10,017,918
Common stock options available for grant
Class of Stock [Line Items]
Total6,726,717 6,186,497
ESPP shares available for purchase
Class of Stock [Line Items]
Total700,074 700,074
401(k) Matching Plan
Class of Stock [Line Items]
Total21,930 21,930

Stockholders' Equity - Summary

Stockholders' Equity - Summary of Activity under 2008 Plan and 2018 Plan (Details) - USD ($) $ / shares in Units, $ in Thousands3 Months Ended12 Months Ended
Mar. 31, 2021Dec. 31, 2020
Number of Options
Beginning balance (in shares)10,017,918
Options grants (in shares)2,341,750
Options exercised (in shares)(1,000,588)
Options cancelled (in shares)(58,175)
Ending balance (in shares)11,300,905 10,017,918
Vested and expected to vest (in shares)11,044,810
Exercisable (in shares)9,232,405
Weighted Average Exercise Price
Ending balance (in dollars per share) $ 15.25 $ 10.52
Options granted (in dollars per share)31.50
Options exercised (in dollars per share)5.90
Options cancelled (in dollars per share)14.79
Beginning balance (in dollars per share)10.52
Vested and expected to vest (in dollars per share)15.05
Exercisable (in dollars per share) $ 11.54
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Weighted Average Remaining Contractual Life (in Years)7 years 3 months 29 days6 years 5 months 12 days
Vested and expected to vest, weighted average remaining contractual life7 years 3 months 10 days
Exercisable, weighted average remaining contractual life6 years 9 months 3 days
Aggregate Intrinsic Value $ 162,188 $ 198,097
Vested and expected to vest, aggregate intrinsic value160,638
Exercisable, aggregate intrinsic value $ 162,108

Stockholders' Equity - Summar_2

Stockholders' Equity - Summary of Stock Based Compensation Expense (Details) - USD ($)3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense $ 67,000 $ 28,000
Employees and Directors | ESPP
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense6,515,000 3,667,000
Employees and Directors | ESPP | Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense3,504,000 1,873,000
Employees and Directors | ESPP | General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense $ 3,011,000 $ 1,794,000