Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 19, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2020 | ||
Trading Symbol | KOD | ||
Entity Registrant Name | KODIAK SCIENCES INC. | ||
Entity Central Index Key | 0001468748 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity File Number | 001-38682 | ||
Entity Tax Identification Number | 27-0476525 | ||
Entity Address, Address Line One | 1200 Page Mill Road | ||
Entity Address, City or Town | Palo Alto | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94304 | ||
City Area Code | 650 | ||
Local Phone Number | 281-0850 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Interactive Data Current | Yes | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Title of 12(b) Security | Common stock, par value $0.0001 | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Common Stock, Shares Outstanding | 51,162,424 | ||
Entity Public Float | $ 1.6 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the registrant’s definitive Proxy Statement relating to the 2021 Annual Meeting of Stockholders are incorporated herein by reference in Part III of this Annual Report on Form 10-K to the extent stated herein. The proxy statement will be filed with the Securities and Exchange Commission within 120 days of the registrant’s fiscal year ended December 31, 2020. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 944,396 | $ 211,797 |
Marketable securities | 24,578 | 124,684 |
Prepaid expenses and other current assets | 3,031 | 2,749 |
Total current assets | 972,005 | 339,230 |
Marketable securities | 11,696 | |
Restricted cash | 6,324 | 140 |
Property and equipment, net | 5,136 | 996 |
Operating lease right-of-use asset | 73,672 | 1,790 |
Other assets | 10,210 | 5,014 |
Total assets | 1,067,347 | 358,866 |
Current liabilities: | ||
Accounts payable | 8,646 | 2,619 |
Accrued and other current liabilities | 20,402 | 8,658 |
Operating lease liability | 2,374 | 434 |
Total current liabilities | 31,422 | 11,711 |
Operating lease liability, net of current portion | 75,028 | 1,501 |
Liability related to sale of future royalties | 99,890 | |
Other liabilities | 256 | 295 |
Total liabilities | 206,596 | 13,507 |
Commitments and contingencies (Note 7) | ||
Stockholders’ equity: | ||
Preferred stock, $0.0001 par value, 10,000,000 shares authorized; 0 shares issued and outstanding at December 31, 2020 and 2019 | ||
Common stock, $0.0001 par value, 490,000,000 shares authorized at December 31, 2020 and 2019; 51,112,302 and 44,413,404 shares issued and outstanding at December 31, 2020 and 2019, respectively | 5 | 5 |
Additional paid-in capital | 1,151,920 | 503,475 |
Accumulated other comprehensive income | 53 | 10 |
Accumulated deficit | (291,227) | (158,131) |
Total stockholders’ equity | 860,751 | 345,359 |
Total liabilities and stockholders’ equity | $ 1,067,347 | $ 358,866 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred Stock, shares issued | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 490,000,000 | 490,000,000 |
Common stock, shares issued | 51,112,302 | 44,413,404 |
Common stock, shares outstanding | 51,112,302 | 44,413,404 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating expenses | |||
Research and development | $ 107,389 | $ 37,506 | $ 18,793 |
General and administrative | 28,618 | 11,684 | 7,581 |
Total operating expenses | 136,007 | 49,190 | 26,374 |
Loss from operations | (136,007) | (49,190) | (26,374) |
Interest income | 2,902 | 1,568 | 617 |
Interest expense (includes $nil, $nil and $3,030 attributable to related parties for the years ended December 31, 2020, 2019 and 2018, respectively) | (25) | (8) | (5,519) |
Other income (expense), net (includes $49, $nil, and $2,736 expenses attributable to related parties for the years ended December 31, 2020, 2019, and 2018, respectively) | 34 | 265 | (4,688) |
Loss on extinguishment of debt (includes $1,587 attributable to related parties for the year ended December 31, 2018) | (5,479) | ||
Net loss | $ (133,096) | $ (47,365) | $ (41,443) |
Net loss per common share, basic and diluted | $ (2.91) | $ (1.25) | $ (2.77) |
Weighted-average common shares outstanding used in computing net loss per common share, basic and diluted | 45,741,845 | 37,853,616 | 14,976,515 |
Other comprehensive income | |||
Change in unrealized gains related to available-for-sale debt securities, net of tax | $ 43 | $ 10 | |
Total other comprehensive income | 43 | 10 | |
Comprehensive loss | $ (133,053) | $ (47,355) | $ (41,443) |
Consolidated Statements of Op_2
Consolidated Statements of Operations and Comprehensive Loss (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2018 | |
Income Statement [Abstract] | ||
Interest expense attributable to related parties | $ 3,030 | |
Other income (expense) attributable to related parties | $ 49 | 2,736 |
Loss on extinguishment of debt attributable to related parties | $ 1,587 |
Consolidated Statements of Rede
Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) - USD ($) $ in Thousands | Total | Redeemable Convertible Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income | Accumulated Deficit |
Beginning Balance at Dec. 31, 2017 | $ (68,738) | $ 1 | $ 584 | $ (69,323) | ||
Redeemable convertible preferred stock, shares outstanding, beginning balance at Dec. 31, 2017 | 12,385,154 | |||||
Redeemable convertible preferred stock, beginning balance at Dec. 31, 2017 | $ 50,017 | |||||
Beginning balance, shares at Dec. 31, 2017 | 7,936,434 | |||||
Issuance of common stock upon exercise of stock options | 49 | 49 | ||||
Issuance of common stock upon exercise of stock options, shares | 47,800 | |||||
Issuance of restricted stock awards, shares | 27,500 | |||||
Conversion of redeemable convertible preferred stock into common stock | 50,017 | $ 1 | 50,016 | |||
Conversion of redeemable convertible preferred stock into common stock, shares | (12,385,154) | |||||
Conversion of redeemable convertible preferred stock into common stock | $ (50,017) | |||||
Conversion of redeemable convertible preferred stock into common stock, shares | 12,385,154 | |||||
Conversion of redeemable convertible preferred stock warrants into common stock warrants | 5,000 | 5,000 | ||||
Issuance of common stock upon exercise of common stock warrants, shares | 100,000 | |||||
Conversion of 2017 and 2018 convertible notes into common stock | 55,733 | $ 1 | 55,732 | |||
Conversion of 2017 and 2018 convertible notes into common stock, shares | 6,932,969 | |||||
Issuance of common stock in connection with initial public offering/follow-on offering, net of offering costs | 83,459 | $ 1 | 83,458 | |||
Issuance of common stock in connection with initial public offering/follow-on offering, net of offering costs, shares | 9,400,000 | |||||
Stock-based compensation expense | 2,756 | 2,756 | ||||
Net loss | (41,443) | (41,443) | ||||
Ending Balance at Dec. 31, 2018 | 86,833 | $ 4 | 197,595 | (110,766) | ||
Ending balance, shares at Dec. 31, 2018 | 36,829,857 | |||||
Issuance of common stock upon exercise of stock options | 2,287 | 2,287 | ||||
Issuance of common stock upon exercise of stock options, shares | 662,079 | |||||
Vesting of restricted stock units, net of taxes withheld | (132) | (132) | ||||
Vesting of restricted stock units, net of taxes withheld, shares | 21,467 | |||||
Issuance of common stock upon exercise of common stock warrants, shares | 1 | |||||
Issuance of common stock in connection with initial public offering/follow-on offering, net of offering costs | 297,616 | $ 1 | 297,615 | |||
Issuance of common stock in connection with initial public offering/follow-on offering, net of offering costs, shares | 6,900,000 | |||||
Stock-based compensation expense | 6,110 | 6,110 | ||||
Other comprehensive income | 10 | $ 10 | ||||
Net loss | (47,365) | (47,365) | ||||
Ending Balance at Dec. 31, 2019 | 345,359 | $ 5 | 503,475 | 10 | (158,131) | |
Ending balance, shares at Dec. 31, 2019 | 44,413,404 | |||||
Issuance of common stock upon exercise of stock options | 6,248 | 6,248 | ||||
Issuance of common stock upon exercise of stock options, shares | 704,675 | |||||
Vesting of restricted stock units, net of taxes withheld | (487) | (487) | ||||
Vesting of restricted stock units, net of taxes withheld, shares | 22,001 | |||||
Issuance of common stock in connection with initial public offering/follow-on offering, net of offering costs | 612,016 | 612,016 | ||||
Issuance of common stock in connection with initial public offering/follow-on offering, net of offering costs, shares | 5,972,222 | |||||
Stock-based compensation expense | 30,668 | 30,668 | ||||
Other comprehensive income | 43 | 43 | ||||
Net loss | (133,096) | (133,096) | ||||
Ending Balance at Dec. 31, 2020 | $ 860,751 | $ 5 | $ 1,151,920 | $ 53 | $ (291,227) | |
Ending balance, shares at Dec. 31, 2020 | 51,112,302 |
Consolidated Statements of Re_2
Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Of Stockholders Equity [Abstract] | |||
Offering costs with respect to issuance of common stock in connection with initial public offering/follow-on offering | $ 32,984 | $ 19,784 | $ 10,542 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities | |||
Net loss | $ (133,096) | $ (47,365) | $ (41,443) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation | 477 | 538 | 490 |
Non-cash interest expense and amortization of debt discount and issuance cost | 0 | 0 | 5,482 |
Change in fair value of redeemable convertible preferred stock warrant liability | 0 | 0 | 2,700 |
Change in fair value of derivative instrument | 0 | 0 | 1,988 |
Extinguishment of debt | 5,479 | ||
Stock-based compensation | 30,668 | 6,110 | 2,665 |
Amortization (accretion) of premium (discount) on marketable securities | (51) | (241) | |
Amortization of operating lease right-of-use asset | 3,731 | 373 | |
Amortization of issuance costs | 49 | 0 | 0 |
Changes in assets and liabilities: | |||
Prepaid expense and other current assets | (218) | (168) | (1,995) |
Other assets | (1,814) | (4,511) | 0 |
Accounts payable | 5,224 | 1,569 | (2,323) |
Accrued and other current liabilities | 11,748 | 4,932 | (2,105) |
Operating lease liability | (146) | (383) | |
Other liabilities | 0 | 0 | 31 |
Net cash used in operating activities | (83,428) | (39,146) | (29,031) |
Cash flows from investing activities | |||
Purchase of property and equipment | (3,814) | (437) | (78) |
Deposits on property and equipment | (3,184) | (503) | |
Purchases of marketable securities | (86,317) | (150,961) | |
Maturities of marketable securities | 198,149 | 14,400 | |
Net cash provided by (used in) investing activities | 104,834 | (136,998) | (581) |
Cash flows from financing activities | |||
Proceeds from issuance of common stock in connection with offering, net of offering costs | 612,016 | 297,616 | 83,755 |
Proceeds from issuance of common stock upon option exercise | 6,248 | 2,287 | 49 |
Payments for restricted stock units, net of taxes withheld | (487) | (132) | |
Proceeds from issuance of convertible notes (includes $9,560 from related parties for the years ended December 31, 2018) | 33,000 | ||
Debt issuance cost | 0 | 0 | (140) |
Proceeds from sale of future royalties, net of issuance costs | 99,643 | 0 | 0 |
Principal payments of capital lease | (5) | (48) | (108) |
Principal payments of tenant improvement allowance payable | (38) | (36) | (85) |
Net cash provided by financing activities | 717,377 | 299,687 | 116,471 |
Net increase in cash, cash equivalents and restricted cash | 738,783 | 123,543 | 86,859 |
Cash, cash equivalents and restricted cash, at beginning of year | 211,937 | 88,394 | 1,535 |
Cash, cash equivalents and restricted cash, at end of year | 950,720 | 211,937 | 88,394 |
Reconciliation of cash, cash equivalents and restricted cash to consolidated balance sheets | |||
Cash and cash equivalents | 944,396 | 211,797 | 88,254 |
Restricted cash | 6,324 | 140 | 140 |
Cash, cash equivalents and restricted cash, at end of year | 950,720 | 211,937 | 88,394 |
Supplemental cash flow information: | |||
Cash paid for interest | 25 | 8 | 19 |
Supplemental disclosures of non-cash investing and financing information: | |||
Operating lease right-of-use asset obtained in exchange for operating lease liability | 75,614 | 2,163 | |
Purchase of property and equipment under accounts payable | 803 | 0 | 0 |
Unpaid offering costs | 238 | 459 | 205 |
Offering costs paid in restricted stock awards | 0 | 0 | 91 |
Derivative instrument related to convertible notes | $ 0 | $ 0 | $ 6,603 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Statement Of Cash Flows [Abstract] | |
Proceeds from issuance of convertible notes | $ 9,560 |
The Company
The Company | 12 Months Ended |
Dec. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
The Company | 1. The Company Kodiak Sciences Inc. (the “Company”) is a clinical stage biopharmaceutical company specializing in novel therapeutics to treat high-prevalence ophthalmic diseases. The Company devotes substantially all of its time and efforts to performing research and development, raising capital and recruiting personnel. Initial Public Offering In 2018, the Company sold and issued 9,400,000 shares of common stock, including the underwriters’ full exercise of their over-allotment option, at a price to the public of $10.00 per share for gross proceeds of $94.0 million. The aggregate net proceeds to the Company from the IPO, inclusive of the partial over-allotment option exercise, were $83.5 million after deducting underwriting discounts and commissions and other offering costs. Upon the closing of the IPO, all convertible preferred shares then outstanding automatically converted into 12,385,154 shares of common stock, 500,000 redeemable convertible preferred stock warrants automatically converted into common stock warrants and 100,000 of such warrants were exercised immediately following the closing of the IPO. The 2017 convertible notes converted into 2,637,292 shares of common stock and the 2018 convertible notes converted into 4,295,677 shares of common stock upon closing of the IPO. In connection with the IPO, the Company amended and restated its certificate of incorporation and bylaws. Follow-On Offering In December 2019, the Company sold and issued 6,900,000 shares of common stock, including the underwriters’ full exercise of their over-allotment option, at a price to the public of $46.00 per share for gross proceeds of $317.4 million. The aggregate net proceeds to the Company from the follow-on offering were $297.6 million after deducting underwriting discounts and commissions and other offering costs. In November 2020, the Company sold and issued 5,972,222 shares of common stock, including the underwriters’ full exercise of their over-allotment option, at a price to the public of $108.00 per share for gross proceeds of $645.0 million. The aggregate net proceeds to the Company from the follow-on offering were $612.0 million after deducting underwriting discounts and commissions and other offering costs. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). Reclassification Certain prior period amounts in the consolidated financial statements have been reclassified to conform to the current period presentation. Principles of Consolidation The consolidated financial statements include the Company’s accounts and the accounts of Kodiak Sciences Financing Corporation and Kodiak Sciences China, the Company’s direct wholly owned subsidiaries, incorporated in the United States and Cayman Islands, respectively, and Kodiak Sciences GmbH and Kodiak Sciences Valais GmbH, the Company’s indirect wholly owned subsidiaries, both incorporated in Switzerland. All intercompany accounts and transactions have been eliminated. The functional and reporting currency of the Company and its subsidiaries is the U.S. dollar. The aggregate foreign currency transaction loss included in determining net loss was $0.3 million, less than $0.1 million and $0.3 million for the years ended December 31, 2020, 2019 and 2018, respectively. Segments The Company operates and manages its business as one reportable and operating segment, which is the business of research and development of drugs for ophthalmic diseases. The chief operating decision maker reviews financial information on an aggregate basis for purposes of allocating resources and evaluating financial performance. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and expenses during the reporting period. The impact of the ongoing COVID-19 pandemic continues to evolve. As a result, certain estimates and assumptions required increased judgment and carried a higher degree of variability and volatility, including but not limited to, the fair value of marketable securities, performance-based equity awards, and research and development accruals. As events continue to unfold and additional information becomes available, these estimates may change materially in future periods. Actual results could differ from those estimates. Risk and Uncertainties In March 2020, the World Health Organization declared a pandemic due to the global COVID-19 outbreak. The significant uncertainties caused by the ongoing COVID-19 pandemic may negatively impact the Company’s operations, liquidity, and capital resources and will depend on certain evolving developments, including the duration and spread of the outbreak, regulatory and private sector responses and the impact on employees and vendors including supply chain and clinical partners, all of which are uncertain and cannot be predicted. During this pandemic, the Company continues to work closely with clinical sites towards maximal patient safety and the lowest number of missed visits and study discontinuations. The Company has taken and continues to take proactive measures to maintain the integrity of its ongoing clinical studies. Despite these efforts, the ongoing COVID-19 pandemic could significantly impact clinical trial enrollment and completion of its clinical studies. The Company will continue to monitor the COVID-19 situation and its impact on the ability to continue the development of, and seek regulatory approvals for, the Company’s product candidates, and begin to commercialize any approved products. The Company’s future results of operations involve a number of risks and uncertainties common to clinical-stage companies in the biotechnology industry. The Company’s product candidates are in development and the Company operates in an environment of rapid change in technology and substantial competition from other pharmaceutical and biotechnology companies. Products developed by the Company require approvals from the U.S. Food and Drug Administration (“FDA”) or other international regulatory agencies prior to commercial sales. There can be no assurance that any of the Company’s product candidates will receive the necessary approvals. If the Company is denied approval, approval is delayed or the Company is unable to maintain approvals, it could have a materially adverse impact on the Company. Even if the Company’s product development efforts are successful, it is uncertain when, if ever, the Company will generate significant revenue from product sales. The Company expects to incur substantial operating losses for the next several years and will need to obtain additional financing in order to complete clinical trials and launch and commercialize any product candidates for which it receives regulatory approval. There can be no assurance that such financing will be available or will be on terms acceptable by the Company. Concentration of Credit Risk Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash, cash equivalents and marketable securities. As of December 31, 2020 and 2019, cash, cash equivalents and marketable securities were invested primarily in money market funds, overnight repurchase agreements, U.S. treasury securities, commercial paper and corporate notes through highly rated financial institutions. Investments are restricted, in accordance with the Company’s investment policy, to a concentration limit per issuer or sector. Cash and Cash Equivalents The Company considers all highly liquid investments with stated maturities of three months or less at the date of purchase to be cash equivalents. Marketable Securities The Company invests excess cash balances in marketable securities. The investments in marketable securities are classified as either held-to-maturity or available-for-sale based on facts and circumstances present at the time of purchase. Marketable securities with a remaining maturity date greater than one year are classified as non-current. The Company’s marketable securities consist of U.S. treasury securities, commercial paper, and corporate bonds. Marketable securities are carried at fair value with the unrealized gains and losses included in other comprehensive income (loss) as a component of stockholders’ equity until realized. Any premium or discount arising at purchase of marketable debt securities is amortized and/or accreted to other income (expense), net over the life of the instrument. Realized gains and losses are determined using the specific identification method and are included in other income (expense), net. If any adjustment to fair value reflects a decline in value of the investment, the Company considers all available evidence to evaluate the extent to which the decline is “other-than-temporary” and, if so, marks the investment to market through a charge to the Company’s statement of operations and comprehensive loss. Restricted Cash As of December 31, 2020, and 2019, the Company had $6.3 million and $0.1 million, respectively, of long-term restricted cash deposited with a financial institution. The entire amount is held in separate bank accounts to support letter of credit agreements related to the Company’s U.S. corporate offices. Fair Value of Financial Instruments Accounting Standards Codification (“ASC”) 820, Fair Value Measurement Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As a basis for considering market participant assumptions in fair value measurements, ASC 820 establishes a three-tier fair value hierarchy that distinguishes between the following: Level 1 —Observable inputs, such as quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2 —Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 —Unobservable inputs which reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and inputs to the model. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument's level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The carrying amounts of the Company’s financial instruments consisting of cash and cash equivalents, prepaid expenses and other current assets, accounts payable and accrued liabilities and other current liabilities, approximate fair value due to their relatively short maturities. Leases The Company determines if an arrangement is, or contains, a lease at inception and then classifies the lease as operating or financing based on the underlying terms and conditions of the contract. Leases with terms greater than one year are initially recognized on the balance sheet as right-of-use assets and lease liabilities based on the present value of lease payments over the expected lease term. The interest rate implicit in lease contracts is typically not readily determinable. As such, the Company utilizes the incremental borrowing rate, which is the rate incurred to borrow, on a collateralized basis, an amount equal to the lease payments over a similar term and in a similar economic environment of the applicable country or region. Variable lease payments are excluded from the right of use assets and operating lease liabilities and are recognized in the period in which the obligation for those payments is incurred. Property and Equipment, Net Property and equipment are stated at cost less accumulated depreciation for acquired assets. Depreciation is computed using the straight-line method over the estimated useful lives of assets, which is generally four years for laboratory equipment, three years for computer equipment and office equipment, five years for computer software and five to seven years for furniture and fixtures. Leasehold improvements are stated at cost and amortized over the shorter of the useful life of the assets or the length of the lease. Upon sale or retirement of assets, the costs and related accumulated depreciation are removed from the consolidated balance sheet and the resulting gain or loss is reflected in operations. Maintenance and repairs are charged to operations as incurred. Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability is measured by comparison of the carrying amount to the future undiscounted net cash flows which the assets are expected to generate. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the projected discounted future net cash flows arising from the assets. There have been no such impairments of long-lived assets in the years ended December 31, 2020 and 2019. Research and Development Expenses Costs related to research, design and development of products are charged to research and development expense as incurred. Research and development costs include, but are not limited to, payroll and personnel expenses, including stock-based compensation, laboratory supplies, outside services and allocated overhead, including rent, equipment, depreciation and utilities. Accrued Research and Development The Company has entered into various agreements with various third parties, including clinical investigator sites, contract research organizations (“CROs”) and contract manufacturing organizations (“CMOs”), to provide research and development activities. The Company’s accrued research and development costs are estimated based on the level of services performed, including the phase or completion of events, and contracted costs. Accrued clinical trial and related costs are estimated using data such as patient enrollment, clinical site activations or information provided by outside service providers regarding their actual costs incurred. Management determined accrual estimates through reports from and discussions with clinical personnel and outside service providers as to the progress of trials, or the services completed. The estimated costs of research and development provided, but not yet invoiced, are included in accrued and other current liabilities on the consolidated balance sheets. If the actual timing of the performance of services or the level of effort varies from the original estimates, the Company will adjust the accrual accordingly. Payments made to third parties under these arrangements in advance of the performance of the related services are recorded as prepaid expenses or other assets until the services are rendered. Stock-Based Compensation The Company accounts for stock-based compensation in accordance with the provisions of ASC 718, Compensation-Stock The Company accounts for forfeitures as they occur. Prior to the adoption of Accounting Standards Update ("ASU") No. 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting ("ASU 2018-07"), the measurement date for non-employee awards was generally the date the services are completed, resulting in financial reporting period adjustments to stock-based compensation during the vesting terms for changes in the fair value of the awards. After adoption of ASU 2018-07 as of January 1, 2019 , the measurement date for non-employee awards is the date of grant without changes in the fair value of the award. The Company has certain stock options and restricted stock units that vest in conjunction with certain performance conditions. At each reporting date, the Company is required to evaluate whether achievement of the performance conditions is probable. Compensation expense is recorded over the appropriate service period based upon the Company's assessment of accomplishing each performance provision. Income Taxes The Company accounts for income taxes under the asset and liability method, which requires, among other things, that deferred income taxes be provided for temporary differences between the tax basis of the Company’s assets and liabilities and their financial statement reported amounts. In addition, deferred tax assets are recorded for the future benefit of utilizing net operating losses (“NOLs”) and research and development credit carryforwards and are measured using the enacted tax rates and laws that will be in effect when such items are expected to reverse. A valuation allowance is provided against deferred tax assets unless it is more likely than not that they will be realized. The Company accounts for uncertain tax positions by assessing all material positions taken in any assessment or challenge by relevant taxing authorities. Assessing an uncertain tax position begins with the initial determination of the position’s sustainability and is measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. The Company’s policy is to recognize interest and penalties related to the underpayment of income taxes as a component of income tax expense or benefit. To date, there have been no interest or penalties charged in relation to the unrecognized tax benefits. Comprehensive Loss Comprehensive loss is composed of net loss and other comprehensive income (loss). Other comprehensive income (loss) consists primarily of unrealized gains and losses on debt securities. Liability related to Sale of Future Royalties On December 1, 2019, the Company and its subsidiary Kodiak Sciences GmbH entered into a funding agreement with Baker Bros. Advisors, LP (“BBA”), which holds more than 5% of the Company’s stock, pursuant to which BBA purchased the right to receive a capped 4.5% royalty on future net sales of KSI-301, the Company’s anti-VEGF antibody biopolymer conjugate therapy, in exchange for $225.0 million. Under the terms of the funding agreement, there is no obligation to repay any funding amount received, other than through the capped royalty payments on future product revenues. The Company recorded the funding amount paid by BBA as a liability on the consolidated balance sheet net of issuance costs , in accordance with ASC 730, Research and Development . Under ASC 730, the significant related party relationship between the Company and BBA creates an implicit obligation to repay the funding amount paid to the Company. Once royalty payments to BBA are determined to be probable and estimable, and if such amounts exceed the liability balance, the Company will impute interest to accrete the liability on a prospective basis based on such estimates. If and when the Company makes royalty payments under the funding agreement, it would reduce the liability balance at such time. Refer to Note 14. Credit Losses – Available-for-Sale Debt Securities For available-for-sale debt securities in an unrealized loss position, the Company will periodically assess its portfolio for impairment. The assessment first considers the intent or requirement to sell the security. If either of these criteria are met, the amortized cost basis will be written down to fair value through earnings. If not met, the Company will evaluate whether the decline resulted from credit losses or other factors by considering the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and any adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security is compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses will be recorded, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income or loss, as applicable. Net Loss per Share Attributable to Common Stockholders Basic net loss per common share is calculated by dividing the net loss attributable to common stockholders by the weighted-average number of common stock outstanding during the period, without consideration of potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common stock and potentially dilutive securities outstanding for the period. For purposes of this calculation, the redeemable convertible preferred stock, preferred stock warrants, convertible notes, common stock subject to repurchase, and stock options are considered to be potentially dilutive securities. Basic and diluted net loss attributable to common stockholders per share is presented in conformity with the two-class method required for participating securities as the redeemable convertible preferred stock is considered a participating security. The Company’s participating securities do not have a contractual obligation to share in the Company’s losses. As such, the net loss is attributed entirely to common stockholders. Since the Company has reported net loss for all periods presented, diluted net loss per share is the same as basic net loss per common share for those periods. Recent a p From time to time, new accounting pronouncements are issued by the FASB, under its ASC or other standard setting bodies, and adopted by the Company as of the specified effective date, unless otherwise discussed below. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) i.e., Leases (Topic 842), Codification Improvements Leases (Topic 842), Targeted Improvements Leases The Company adopted ASC 842 effective January 1, 2019 using the modified retrospective approach to recognize a cumulative-effect adjustment on the effective date and to not adjust financial information and disclosures required under the new lease standards for comparative prior periods. The Company did not elect for the package of practical expedients and assessed all contracts at the transition date. The Company did not utilize the practical expedient which allows the use of hindsight in determining lease term and assessing impairment in right-of-use assets. The Company elected to apply the practical expedient and accounted for each lease component and related non-lease component as one single component. The Company elected the practical expedient not to recognize leases with terms of one year or less on the balance sheet. The adoption of the new lease standards on January 1, 2019 resulted in the initial recognition of right-of-use asset of $2.2 million and operating lease liability of $2.3 million and derecognition of noncurrent deferred liabilities of $0.2 million related to the operating lease for the Company’s office and laboratory space in Palo Alto, California on the consolidated balance sheets with no material impact to the consolidated statements of operations, stockholders’ equity or cash flows. Refer to Note 7. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 362): Measurement of Credit Losses on Financial Statements Codification Improvements to Topic 326, Financial Instruments—Credit Losses which intends to improve financial reporting by requiring earlier recognition of credit losses on certain financial assets, such as available-for-sale debt securities. The Company assessed the In August 2018, the FASB issued ASU 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurements Among the changes, entities will no longer be required to disclose the amount of and reasons for transfers between Levels 1 and 2 of the fair value hierarchy but will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which clarifies the accounting for implementation, set-up, and other upfront costs incurred in cloud computing arrangements. The Company adopted this new guidance as of January 1, 2020, which did not impact its consolidated financial statements and related disclosures. New Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, net | 3. Property and Equipment, net Property and equipment, net consists of the following (in thousands): December 31, 2020 December 31, 2019 Leasehold improvement $ 1,285 $ 1,265 Laboratory equipment 3,351 1,125 Furniture and fixtures 214 204 Computer hardware 31 — Computer software 89 79 Office equipment 107 94 Construction in progress 2,229 — Total property and equipment 7,306 2,767 Less: Accumulated depreciation (2,170 ) (1,771 ) Property and equipment, net $ 5,136 $ 996 All property and equipment are maintained in the United States and Switzerland. Depreciation expense, including depreciation of assets under capital leases, was $0.5 million, $0.5 million and $0.5 million for the years ended December 31, 2020, 2019 and 2018, respectively. |
Accrued Liabilities and Other C
Accrued Liabilities and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Accounts Payable And Accrued Liabilities Current [Abstract] | |
Accrued Liabilities and Other Current Liabilities | 4. Accrued Liabilities and Other Current Liabilities Accrued liabilities and other current liabilities consist of the following (in thousands): December 31, 2020 December 31, 2019 Accrued clinical trial and related costs $ 11,119 $ 4,056 Accrued research and development 3,082 838 Accrued salaries and benefits 5,094 3,108 Accrued legal fees 252 302 Accrued professional fees 253 195 Accrued other liabilities 602 159 Total accrued and other current liabilities $ 20,402 $ 8,658 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 5. Fair Value Measurements The following tables present the Company’s fair value hierarchy for assets and liabilities measured at fair value on a recurring basis (in thousands): Fair Value Measurements at December 31, 2020 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 917,485 $ — $ — $ 917,485 Marketable securities: U.S. treasury securities — 10,006 — 10,006 Corporate notes — 14,572 — 14,572 Total $ 917,485 $ 24,578 $ — $ 942,063 Fair Value Measurements at December 31, 2019 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 155,276 $ — $ — $ 155,276 Repurchase agreement 50,000 — — 50,000 Commercial paper — 5,987 — 5,987 Marketable securities: U.S. treasury securities — 50,185 — 50,185 Commercial paper — 34,533 — 34,533 Corporate notes — 51,662 — 51,662 Total $ 205,276 $ 142,367 $ — $ 347,643 As of December 31, 2020, the fair value of the liability related to sale of future royalties is based on our current estimates of future royalties expected to be paid to BBA, which are considered Level 3 inputs. Refer to Note 14. There were no liabilities measured at fair value on a recurring and non-recurring basis as of December 31, 2019. There were no transfers of assets or liabilities between the fair value measurement levels during the years ended December 31, 2020 and 2019. |
Marketable Securities
Marketable Securities | 12 Months Ended |
Dec. 31, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Marketable Securities | 6. Marketable Securities The marketable securities are classified as available-for-sale and consist of U.S. treasury securities, corporate notes and commercial paper. The fair value measurement data for marketable securities is obtained from independent pricing services. The Company validates the prices provided by the third-party pricing services by understanding the valuation methods and data sources used and analyzing the pricing data in certain instances. The following table summarizes the marketable securities (in thousands): December 31, 2020 Amortized Cost Unrealized Gains Unrealized Losses Fair Value U.S. treasury securities $ 10,003 $ 3 — $ 10,006 Corporate notes 14,522 50 — 14,572 Total marketable securities, current $ 24,525 $ 53 $ — $ 24,578 December 31, 2019 Amortized Cost Unrealized Gains Unrealized Losses Fair Value U.S. treasury securities $ 50,190 $ — $ (5 ) $ 50,185 Commercial paper 34,532 1 — 34,533 Corporate notes 39,956 13 (3 ) 39,966 Total marketable securities, current $ 124,678 $ 14 $ (8 ) $ 124,684 Corporate notes $ 11,692 $ 4 $ — $ 11,696 Total marketable securities, noncurrent $ 11,692 $ 4 $ — $ 11,696 All marketable securities held at December 31 , 2020 , 2020 , 2020 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 7. Commitments and Contingencies Leases Palo Alto, California Leases In June 2020, the Company entered into lease agreements for two buildings at 1200 and 1250 Page Mill Road in Palo Alto, California, which are now the Company’s U.S. corporate offices. The facilities are approximately 82,662 The Company continues to lease office and laboratory space at 2631 Hanover Street Switzerland Lease In April 2020, the Company entered into a lease agreement for office and laboratory space at Rottenstrasse 5 in Visp, Switzerland. The space is approximately 1,000 square meters. The initial lease term is 5 years, with automatic renewals every 5 years for a maximum lease term of 15 years. The monthly rent during the initial 5-year term will be approximately 32 thousand Swiss Francs plus certain operating expenses and taxes. Under ASC 842, the Company classified these leases as operating leases and recorded right-of-use assets and lease liabilities on the lease commencement date. The maturities of the operating lease liabilities as of December 31, 2020 were as follows (in thousands): Year ending December 31, As of December 31, 2020 2021 $ 4,288 2022 7,660 2023 14,598 2024 15,037 2025 15,475 Thereafter 71,462 Total undiscounted lease payments 128,520 Less: imputed interest (51,118 ) Total operating lease liabilities $ 77,402 The minimum lease payments above do not include any related common area maintenance charges or real estate taxes. The weighted-average remaining lease terms and weighted-average discount rates were as follows: December 31, 2020 December 31, 2019 Weighted-average remaining lease term (in years) 9.5 3.8 Weighted-average discount rate 6.7 % 8.5 % Embedded lease In August 2020, the Company and its subsidiary Kodiak Sciences GmbH entered into a manufacturing agreement with a contract manufacturing organization for the clinical and commercial supply of drug substance for KSI-301, the Company’s proprietary therapeutic candidate for the treatment and prevention of retinal vascular diseases. A custom-built manufacturing suite is planned to be completed and dedicated to the manufacture of the Company’s drug substance with an estimated capital contribution of 40 million Swiss Francs from the Company. Construction of the manufacturing suite is targeted for completion in 2021. The Company will be required to pay annual suite fees of 12 million Swiss Francs for 2021 and 16 million Swiss Francs for each year thereafter, which covers the manufacturing fees for a specified number of batches, and the Company may pay for additional batches to be manufactured. The manufacturing agreement has an initial term of eight years, and the Company has the right to extend the term up to a total of 16 years. The Company concluded that this agreement contains an embedded lease as the custom-built manufacturing suite will be dedicated for the Company’s use. As of December 31, 2020, the Company did not have control of this manufacturing space and therefore, did not record a right-of-use asset and corresponding lease liability. These commitments are not included in the above table. Manufacturing Agreement The Company has entered into service agreements with Lonza AG and its affiliates (“Lonza”), pursuant to which Lonza agreed to perform activities in connection with the manufacturing process of certain compounds. 2020 Other Funding Commitments In the normal course of business, the Company enters into agreements with third-parties for services to be provided to the Company. Generally, these agreements provide for termination upon notice, with specified amounts due upon termination based on the timing of termination and the terms of the agreement. The actual amounts and timing of payments under these agreements are uncertain and contingent upon the initiation and completion of services to be provided to the Company. As of December 31, 2020 and 2019, the total amount of noncancellable purchase commitments, including potential cancellation fees were $0.5 million and $0.7 million, respectively. The Company is also party to a cancellable assignment and license agreement that would require the Company to make milestone payments of up to $33.2 million and royalty payments on net sales of products utilizing KSI-201 and related technology. Such milestones and royalties are dependent on future activity or product sales and are not estimable. The Company has also entered into various cancellable license agreements for certain technology. The Company may be obligated to make payments on future sales of specified products associated with such license agreements. Such payments are dependent on future product sales and are not estimable. Tenant Improvement Allowance Payable In May 2013, the Company entered into a tenant improvement allowance agreement with its landlord. The agreement allowed the Company to draw down $0.3 million for tenant improvements related to the office lease over the period from the execution of the agreement to October 2018 In March 2016, the Company entered into a lease amendment, under which the Company is allowed to draw down an additional allowance of $0.4 million for tenant improvements related to the office lease over the period from the execution of the agreement to October 2023 As of December 31, 2020 and 2019 0.1 2020 and 2019 Legal Proceedings From time to time, the Company may become involved in legal proceedings arising from the ordinary course of its business. Management is currently not aware of any matters that could have a material adverse effect on the Company’s financial position, results of operations or cash flows. The Company records a legal liability when it believes that it is both probable that a liability may be imputed, and the amount of the liability can be reasonably estimated. Significant judgment by the Company is required to determine both probability and the estimated amount. Indemnification To the extent permitted under Delaware law, the Company has agreed to indemnify its directors and officers for certain events or occurrences while the director or officer is, or was serving, at the Company’s request in such capacity. The indemnification period covers all pertinent events and occurrences during the director’s or officer’s service. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is not specified in the agreements; however, the Company has director and officer insurance coverage that reduces its exposure and enables the Company to recover a portion of any future amounts paid. The Company believes the estimated fair value of these indemnification agreements in excess of applicable insurance coverage is minimal. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes The provision (benefit) for income taxes consists of the following (in thousands): Year Ended December 31, 2020 Year Ended December 31, 2019 Year Ended December 31, 2018 Current: Federal $ — $ — $ — State — — — Foreign 14 — — Total current $ 14 $ — $ — Deferred: Federal $ — $ — $ — State — — — Foreign — — — Total deferred $ — $ — $ — Provision (Benefit) for income taxes $ 14 $ — $ — The components of loss before income taxes were as follows (in thousands): Year Ended December 31, 2020 Year Ended December 31, 2019 Year Ended December 31, 2018 United States $ (17,273 ) $ 2,633 $ (17,273 ) Foreign (115,809 ) (49,998 ) (24,170 ) Total loss before income taxes $ (133,082 ) $ (47,365 ) $ (41,443 ) The tax effects of temporary differences that give rise to significant components of the net deferred tax assets are as follows (in thousands): December 31, 2020 December 31, 2019 December 31, 2018 Deferred tax assets: Net operating loss carryforwards $ 28,451 $ 18,523 $ 11,044 Intangible assets 12,088 12,112 7,588 Research and development tax credits 10,527 4,037 1,559 Stock-based compensation 8,405 1,539 394 Accruals 1,367 885 700 Operating lease liability 22,276 577 - Property and equipment 127 143 109 Total deferred tax assets 83,241 37,816 21,394 Valuation allowance (62,005 ) (37,249 ) (21,394 ) Net deferred tax assets 21,236 567 — Deferred tax liabilities: Operating lease right-of-use asset (21,234 ) (534 ) — Capitalized legal fees (2 ) (33 ) — Total deferred tax liabilities (21,236 ) (567 ) — Total net deferred tax assets $ — $ — $ — The Company has recorded a full valuation allowance against its net deferred tax assets due to the uncertainty as to whether such assets will be realized. The net change in the total valuation allowance for the years ended December 31, 2020, 2019 and 2018 was an increase of approximately $24.8 million, $15.9 million and $8.2 million, respectively. NOLs and tax credit carry-forwards are subject to review and possible adjustment by the Internal Revenue Service (“IRS”) and may become subject to an annual limitation in the event of certain cumulative changes in the ownership interest of significant shareholders over a three-year period in excess of 50% as defined under Sections 382 and 383 in the Internal Revenue Code, which could limit the amount of tax attributes that can be utilized annually to offset future taxable income or tax liabilities. The amount of the annual limitation is determined based on the Company’s value immediately prior to the ownership change. Subsequent ownership changes may further affect the limitation in future years. The Company has completed a Section 382 study through December 31, 2020 which concluded no such ownership change had occurred through December 31, 2020 . As of December 31, 2020, the Company had $50.1 million of federal and $171.0 million of state net operating loss available to offset future taxable income. A portion of the federal net operating loss carryforwards begin to expire in 2035 and the state net operating loss carryforwards begin to expire in 2035, if not utilized. $32.0 million of the federal net operating loss are not subject to expiration. As of December 31, 2020, the Company also had federal and state research and development credit carryforwards of $10.2 million and $4.9 million, respectively. The federal research and development credit carryforwards expire beginning 2035. The California tax credit can be carried forward indefinitely. A reconciliation of the Company’s effective tax rate to the statutory U.S. federal rate is as follows: December 31, 2020 December 31, 2019 December 31, 2018 Federal statutory income tax rate 21.0 % 21.0 % 21.0 % State taxes 4.3 11.0 5.6 Foreign tax rate differential (7.9 ) (12.4 ) (3.8 ) Change in valuation allowance (17.3 ) (30.5 ) (18.3 ) Stock-based compensation 6.7 7.7 (0.6 ) Research tax credit 3.8 3.3 1.3 Other — (0.1 ) (0.1 ) Sale of future royalties (9.4 ) — — Section 162(m) (1.2 ) — — Fair value adjustments — — (2.4 ) Extinguishment of convertible note — — (2.7 ) Provision for income taxes 0.0 % 0.0 % 0.0 % The Company recognizes benefits of uncertain tax positions if it is more likely than not that such positions will be sustained upon examination based solely on their technical merits, as the largest amount of benefit that is more likely than not to be realized upon the ultimate settlement. As of December 31, 2020, 2019 and 2018, none of the unrecognized tax benefits would affect income tax expense with consideration of the valuation allowance. The Company does not anticipate the uncertain tax positions will materially change in the next 12 months. It is the Company's policy to include penalties and interest expense related to income taxes as a component of other expense, net as necessary. The beginning and ending unrecognized tax benefits amounts are as follows (in thousands): December 31, 2020 December 31, 2019 December 31, 2018 Unrecognized tax benefits at beginning of period $ 1,838 $ 398 $ 357 Increases related to prior year tax positions — — - Increases related to current year tax positions 2,812 1,440 41 Unrecognized tax benefits at end of period $ 4,650 $ 1,838 $ 398 The Company files income tax returns in the United States and Switzerland. The Company is not currently under examination by income tax authorities in federal, state or other jurisdictions. All tax returns remain open for examination by the federal and state authorities for three and four years, respectively, from the date of utilization of any net operating loss or credits. |
Preferred Stock
Preferred Stock | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Preferred Stock | 9. Preferred Stock As of December 31, 2020 and 2019 |
Common Stock
Common Stock | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Common Stock | 10. Common Stock As of December 31, 2020 and 2019 The Company had reserved common stock for future issuances as follows: December 31, 2020 December 31, 2019 Exercise of options outstanding and release of restricted shares 7,257,221 6,830,442 Exercise of common stock warrants outstanding 399,999 399,999 Issuance of common stock under the 2018 Equity Incentive Plan 2,742,183 2,118,877 Issuance of common stock under the 2018 Employee Share Purchase Plan 460,000 460,000 Total 10,859,403 9,809,318 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 11. Stock-Based Compensation 2018 Equity Incentive Plan In August 2018, the Company adopted the 2018 Equity Incentive Plan (“2018 Plan”), which became effective on the business day prior to the effectiveness of the registration statement relating to the IPO. The 2018 Plan initially reserved 4,300,000 shares of common stock for the issuance of incentive stock options ("ISOs"), nonstatutory stock options, restricted stock, restricted stock units (“RSUs”), stock appreciation rights, performance units and performance shares to employees, directors and consultants of the Company. The number of shares available for issuance will increase annually on the first day of each fiscal year beginning in 2019 equal to the least of (1) 4,300,000 shares, and (2) 4% of outstanding shares of common stock as of the last day of the immediately preceding year, and (3) such other amount as determined by the board of directors. The exercise price of options must be equal to at least the fair market value of the common stock on the grant date. For ISOs, the term may not exceed The number of shares available for issuance increased by 1,776,761 shares in 2020 and there were 2,742,183 shares available for grant under the 2018 Plan as of December 31, 2020. Shares Subject to Repurchase The Company has a right of repurchase with respect to unvested shares issued upon early exercise of options at an amount equal to the lower of (1) the exercise price of each restricted share being repurchased and (2) the fair market value of such restricted share at the time the Company’s right of repurchase is exercised. The Company’s right to repurchase these shares lapses as those shares vest over the requisite service period. Shares purchased by employees pursuant to the early exercise of stock options are not deemed, for accounting purposes, to be issued until those shares vest according to their respective vesting schedules. Cash received for early exercised stock options is recorded as accrued liabilities and other current liabilities on the consolidated balance sheet and is reclassified to common stock and additional paid-in capital as such shares vest. At December 31, 2020 and 2019, there are no early exercised stock options that remained subject to the Company’s right of repurchase. Stock Options Stock option activity under the 2018 Plan and 2015 Plan is summarized as follows: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2019 6,671,542 $ 17.90 8.73 $ 362,081 Granted 1,068,335 $ 55.27 Exercised (704,675 ) $ 8.89 Forfeited or canceled (137,926 ) $ 25.07 Outstanding at December 31, 2020 6,897,276 $ 24.52 8.07 $ 841,704 Shares exercisable December 31, 2020 3,769,990 Vested and expected to vest December 31, 2020 6,897,276 The weighted-average grant date fair value of the stock options granted for 2020, 2019 and 2018 was $32.44, $34.11 and $4.36 per share, respectively. The aggregate intrinsic value represents the value of the Company’s closing stock price on the last trading day of the period in excess of the weighted-average exercise price multiplied by the number of options outstanding or exercisable. Employee Stock Options Prior to the Company’s IPO, the fair value of the shares of common stock underlying the stock options was determined by the board of directors with assistance from management and external appraisers as there has been no historical public market for the Company’s common stock. Subsequent to the Company’s IPO, the fair value of the Company’s common stock is determined based on its closing market price. The Company estimated the fair value of employee stock options using the Black-Scholes valuation model. The fair value of employee stock options was estimated using the following weighted-average assumptions: Year Ended December 31, 2020 Year Ended December 31, 2019 Year Ended December 31, 2018 Expected volatility 66 % 68 % 59 % Risk-free interest rate 0.39 % 1.65 % 2.82 % Dividend yield 0 % 0 % 0 % Expected term 6.00 5.78 6.06 Expected Term . The expected term is calculated using the simplified method, which is available where there is insufficient historical data about exercise patterns and post-vesting employment termination behavior. The simplified method is based on the vesting period and the contractual term for each grant, or for each vesting-tranche for awards with graded vesting. The mid-point between the vesting date and the maximum contractual expiration date is used as the expected term under this method. For awards with multiple vesting-tranches, the times from grant until the mid-points for each of the tranches may be averaged to provide an overall expected term. Expected Volatility . As the Company does not have sufficient trading history for its common stock, our approach to estimating expected volatility is to phase in our own common stock trading history and supplement the remaining historical information with an average historical stock price volatility of a peer group of publicly traded companies to be representative of its expected future stock price volatility. For purposes of identifying these peer companies, the Company considered the industry, stage of development, size and financial leverage of potential comparable companies. For each grant, the Company measured historical volatility over a period equivalent to the expected term. The Company will continue to apply this process until a sufficient amount of historical information regarding the volatility of its own stock price becomes available. Risk-Free Interest Rate . The risk-free interest rate is based on the implied yield currently available on U.S. Treasury zero-coupon issues with a remaining term equivalent to the expected term of a stock award. Expected Dividend Rate . The Company has not paid and does not anticipate paying any dividends in the near future. Accordingly, the Company has estimated the dividend yield to be zero. The total fair value of employee options vested during the years ended December 31, 2020, 2019 and 2018 was $19.7 million, $4.6 million and $1.2 million, respectively. Stock-based compensation expense recognized during the years ended December 31, 2020, 2019 and 2018 for options granted to employees was $20.8 million, $5.7 million and $2.0 million, respectively. Non-Employee Stock Options The Company granted 41,500, 15,000 and 215,000 stock options to non-employees during the years ended December 31, 2020, 2019 and 2018, respectively. Subsequent to the adoption of ASU 2018-07 effective January 1, 2019, existing stock options granted to non-employees will no longer be revalued, and the estimated fair value of new stock options granted to non-employees will be calculated on the date of grant and not remeasured, similar to stock options granted to employees. The fair value of non-employee stock options was estimated using the following weighted-average assumptions: Year Ended December 31, 2020 Year Ended December 31, 2019 Year Ended December 31, 2018 Expected volatility 67 % 73 % 68 % Risk-free interest rate 0.36 % 1.61 % 2.71 % Dividend yield 0 % 0 % 0 % Expected term 5.56 6.08 9.30 Stock-based compensation expense recognized during the years ended December 31, 2020, 2019 and 2018 for options granted to non-employees was $0.7 million, $0.1 million and $0.4 million, respectively. Restricted Shares Restricted share activity, including restricted stock awards (“RSAs”), restricted stock units (“RSUs”), and performance-based restricted stock units (“PSUs”), under the 2018 Plan and 2015 Plan is summarized as follows: Number of Restricted Shares Weighted Average Grant Date Fair Value Unvested at December 31, 2019 160,747 $ 60.81 Granted 236,045 $ 52.18 Vested (23,848 ) $ 9.21 Shares withheld related to net share settlement of RSUs (7,999 ) $ 9.90 Canceled (5,000 ) $ 72.46 Unvested at December 31, 2020 359,945 $ 59.54 Restricted Stock Awards Under the terms of the restricted stock agreements, the awards vest over four years, which is the requisite service period. Recipients of restricted stock awards generally have voting and dividend rights with respect to such shares upon grant without regard to vesting. Shares of restricted stock that do not vest are subject to forfeiture. The Company recognizes stock-based compensation expense for RSAs on a straight-line basis over the requisite service period for the entire award. The Company did not grant any RSA to employees in 2020. The total fair value of RSAs vested during the years ended December 31, 2020, 2019 and 2018 was $nil million, less than $0.1 million and $0.2 million, respectively. Stock-based compensation expense recognized during the years ended December 31, 2020, 2019 and 2018 for RSAs was $nil million, less than $0.1 million and $0.2 million, respectively. Restricted Stock Units RSUs will vest in four equal annual installments over four years, which is the requisite service period after that date. The Company granted 236,045 RSUs to employees in 2020. The total fair value of RSUs vested during the year ended December 31, 2020 and 2019 was $0.3 million and $0.3 million, respectively. Stock-based compensation expense recognized during the years ended December 31, 2020, 2019 and 2018 for RSUs was $1.9 million, $0.3 million, and less than $0.1 million, respectively. Performance-Based Stock Options and Restricted Stock Units These performance-based equity awards will vest one-quarter upon the achievement of specific clinical development milestones. The remaining shares will then vest in three equal annual installments after that date. Performance-based stock options are recorded as expense beginning when vesting events are determined to be probable. The Company did not grant performance-based equity awards to employees in 2020. None The fair value of performance-based stock options was estimated using the following weighted-average assumptions: Year Ended December 31, 2019 Expected volatility 72 % Risk-free interest rate 1.67 % Dividend yield 0 % Expected term 6.31 The weighted-average grant date fair value was $47.89 per share for performance-based stock options and $73.51 per share for performance-based restricted stock units. 2018 Employee Share Purchase Plan In August 2018, the Company adopted the 2018 Employee Share Purchase Plan (“ESPP”), which became effective on the business day prior to the effectiveness of the registration statement relating to the IPO. A total of 460,000 shares of common stock were initially reserved for issuance under the ESPP. The initial offering period of the ESPP was authorized by the Company’s board of directors and commenced on January 4, 2021. Stock-Based Compensation Expense Stock-based compensation is classified in the consolidated statements of operations and comprehensive loss as follows (in thousands): Year Ended December 31, 2020 Year Ended December 31, 2019 Year Ended December 31, 2018 Research and development $ 16,957 $ 3,496 $ 1,535 General and administrative 13,711 2,614 1,073 Total stock-based compensation $ 30,668 $ 6,110 $ 2,608 As of December 31, 2020, the Company had $91.4 million of unrecognized compensation expense related to unvested stock options and unvested restricted stock awards and units that is expected to be recognized over a weighted-average period of 2.9 years . |
Net Loss per Share Attributable
Net Loss per Share Attributable to Common Stockholders | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net Loss per Share Attributable to Common Stockholders | 12. Net Loss per Share Attributable to Common Stockholders The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders which excludes shares which are legally outstanding, but subject to repurchase by the Company (in thousands, except share and per share data): Year Ended December 31, 2020 Year Ended December 31, 2019 Year Ended December 31, 2018 Numerator: Net loss attributable to common stockholders $ (133,096 ) $ (47,365 ) $ (41,443 ) Denominator: Weighted-average shares outstanding 45,741,845 37,869,291 15,136,197 Less: weighted-average unvested restricted shares and shares subject to repurchase — (15,675 ) (159,682 ) Weighted-average shares outstanding used in computing net loss per share attributable to common stockholders, basic and diluted 45,741,845 37,853,616 14,976,515 Net loss per share attributable to common stockholders, basic and diluted $ (2.91 ) $ (1.25 ) $ (2.77 ) The following potentially dilutive securities, presented on an as-converted to common stock basis, were excluded from the computation of diluted net loss per share attributable to common stockholders for the period presented because including them would have been antidilutive: Year Ended December 31, 2020 Year Ended December 31, 2019 Year Ended December 31, 2018 Exercise of options outstanding 6,897,276 6,671,542 5,135,267 Unvested restricted shares 359,945 160,747 50,450 Total 7,257,221 6,832,289 5,185,717 |
401(k) Plan
401(k) Plan | 12 Months Ended |
Dec. 31, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
401(k) plan | 13. 401(k) Plan In 2011, the Company adopted a 401(k) retirement and savings plan covering all employees. The 401(k) plan allows employees to make pre- and post-tax contributions up to the maximum allowable amount set by the Internal Revenue Service. The 401(k) plan was amended to include an employer matching provision in 2019. The Company will make matching contributions of 100% of employee contributions up to a maximum of 50% of the individual maximum contribution limit allowed under the IRS rules. For the year ended December 31, 2020 and 2019, the expense related to the matching contributions was $0.6 million and $0.3 million, respectively. |
Liability Related to Sale of Fu
Liability Related to Sale of Future Royalties | 12 Months Ended |
Dec. 31, 2020 | |
Liability Related To Sale Of Future Royalties [Abstract] | |
Liability related to Sale of Future Royalties | 14. Liability related to Sale of Future Royalties On December 1, 2019, the Company and its subsidiary Kodiak Sciences GmbH entered into a funding agreement with BBA, which holds more than 5% of the Company’s stock, pursuant to which BBA purchased the right to receive a capped 4.5% royalty on future net sales of KSI-301, the Company’s anti-VEGF antibody biopolymer conjugate therapy, in exchange for $225.0 million. The royalty terminates upon the date that BBA has received an aggregate amount equal to 4.5 times the funding amount paid to the Company, unless earlier terminated or repurchased by the Company. Under the terms of the funding agreement, there is no obligation to repay any funding amount received, other than through the capped royalty payments on future product revenues. The Company has the option, exercisable at any point during the term of the funding agreement, to repurchase 100% of the royalties due to BBA for a purchase price equal to 4.5 times the funding amount paid to the Company as of such time, less amounts paid by the Company to BBA. The closing of the funding agreement was subject to certain conditions and occurred in February 2020. The Company received $100.0 million of the funding on February 4, 2020. The remaining $125.0 million, subject to delivery of notice by the Company, payable upon enrollment of 50% of the patients in the RVO clinical program. The Company recorded the initial $100.0 million payment as a liability on the consolidated balance sheet net of issuance costs. Once royalty payments to BBA are determined to be probable and estimable, and if such amounts exceed the liability balance, the Company will impute interest to accrete the liability on a prospective basis based on such estimates. If and when the Company makes royalty payments under the funding agreement, it would reduce the liability balance at such time. As of December 31, 2020, royalty payments are not probable and estimable. For the year ended December 31, 2020, no interest expense was recognized for the liability related to the sale of future royalties. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | 15. Selected Quarterly Financial Data (unaudited) The following table provides the selected quarterly financial information for the years , 2020 and 2019 Three Months Ended March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020 Loss from operations $ (25,723 ) $ (26,779 ) $ (36,663 ) $ (46,842 ) Net loss $ (24,392 ) $ (25,999 ) $ (36,122 ) $ (46,583 ) Net loss per share attributable to common stockholders, basic and diluted $ (0.54 ) $ (0.58 ) $ (0.80 ) $ (0.97 ) Three Months Ended March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 Loss from operations $ (8,460 ) $ (11,814 ) $ (12,732 ) $ (16,184 ) Net loss $ (7,984 ) $ (11,385 ) $ (12,380 ) $ (15,616 ) Net loss per share attributable to common stockholders, basic and diluted $ (0.21 ) $ (0.31 ) $ (0.33 ) $ (0.40 ) |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). |
Reclassification | Reclassification Certain prior period amounts in the consolidated financial statements have been reclassified to conform to the current period presentation. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the Company’s accounts and the accounts of Kodiak Sciences Financing Corporation and Kodiak Sciences China, the Company’s direct wholly owned subsidiaries, incorporated in the United States and Cayman Islands, respectively, and Kodiak Sciences GmbH and Kodiak Sciences Valais GmbH, the Company’s indirect wholly owned subsidiaries, both incorporated in Switzerland. All intercompany accounts and transactions have been eliminated. The functional and reporting currency of the Company and its subsidiaries is the U.S. dollar. The aggregate foreign currency transaction loss included in determining net loss was $0.3 million, less than $0.1 million and $0.3 million for the years ended December 31, 2020, 2019 and 2018, respectively. |
Segments | Segments The Company operates and manages its business as one reportable and operating segment, which is the business of research and development of drugs for ophthalmic diseases. The chief operating decision maker reviews financial information on an aggregate basis for purposes of allocating resources and evaluating financial performance. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and expenses during the reporting period. The impact of the ongoing COVID-19 pandemic continues to evolve. As a result, certain estimates and assumptions required increased judgment and carried a higher degree of variability and volatility, including but not limited to, the fair value of marketable securities, performance-based equity awards, and research and development accruals. As events continue to unfold and additional information becomes available, these estimates may change materially in future periods. Actual results could differ from those estimates. |
Risk and Uncertainties | Risk and Uncertainties In March 2020, the World Health Organization declared a pandemic due to the global COVID-19 outbreak. The significant uncertainties caused by the ongoing COVID-19 pandemic may negatively impact the Company’s operations, liquidity, and capital resources and will depend on certain evolving developments, including the duration and spread of the outbreak, regulatory and private sector responses and the impact on employees and vendors including supply chain and clinical partners, all of which are uncertain and cannot be predicted. During this pandemic, the Company continues to work closely with clinical sites towards maximal patient safety and the lowest number of missed visits and study discontinuations. The Company has taken and continues to take proactive measures to maintain the integrity of its ongoing clinical studies. Despite these efforts, the ongoing COVID-19 pandemic could significantly impact clinical trial enrollment and completion of its clinical studies. The Company will continue to monitor the COVID-19 situation and its impact on the ability to continue the development of, and seek regulatory approvals for, the Company’s product candidates, and begin to commercialize any approved products. The Company’s future results of operations involve a number of risks and uncertainties common to clinical-stage companies in the biotechnology industry. The Company’s product candidates are in development and the Company operates in an environment of rapid change in technology and substantial competition from other pharmaceutical and biotechnology companies. Products developed by the Company require approvals from the U.S. Food and Drug Administration (“FDA”) or other international regulatory agencies prior to commercial sales. There can be no assurance that any of the Company’s product candidates will receive the necessary approvals. If the Company is denied approval, approval is delayed or the Company is unable to maintain approvals, it could have a materially adverse impact on the Company. Even if the Company’s product development efforts are successful, it is uncertain when, if ever, the Company will generate significant revenue from product sales. The Company expects to incur substantial operating losses for the next several years and will need to obtain additional financing in order to complete clinical trials and launch and commercialize any product candidates for which it receives regulatory approval. There can be no assurance that such financing will be available or will be on terms acceptable by the Company. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash, cash equivalents and marketable securities. As of December 31, 2020 and 2019, cash, cash equivalents and marketable securities were invested primarily in money market funds, overnight repurchase agreements, U.S. treasury securities, commercial paper and corporate notes through highly rated financial institutions. Investments are restricted, in accordance with the Company’s investment policy, to a concentration limit per issuer or sector. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with stated maturities of three months or less at the date of purchase to be cash equivalents. |
Marketable Securities | Marketable Securities The Company invests excess cash balances in marketable securities. The investments in marketable securities are classified as either held-to-maturity or available-for-sale based on facts and circumstances present at the time of purchase. Marketable securities with a remaining maturity date greater than one year are classified as non-current. The Company’s marketable securities consist of U.S. treasury securities, commercial paper, and corporate bonds. Marketable securities are carried at fair value with the unrealized gains and losses included in other comprehensive income (loss) as a component of stockholders’ equity until realized. Any premium or discount arising at purchase of marketable debt securities is amortized and/or accreted to other income (expense), net over the life of the instrument. Realized gains and losses are determined using the specific identification method and are included in other income (expense), net. If any adjustment to fair value reflects a decline in value of the investment, the Company considers all available evidence to evaluate the extent to which the decline is “other-than-temporary” and, if so, marks the investment to market through a charge to the Company’s statement of operations and comprehensive loss. |
Restricted Cash | Restricted Cash As of December 31, 2020, and 2019, the Company had $6.3 million and $0.1 million, respectively, of long-term restricted cash deposited with a financial institution. The entire amount is held in separate bank accounts to support letter of credit agreements related to the Company’s U.S. corporate offices. |
Fair Value Measurements | Fair Value of Financial Instruments Accounting Standards Codification (“ASC”) 820, Fair Value Measurement Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As a basis for considering market participant assumptions in fair value measurements, ASC 820 establishes a three-tier fair value hierarchy that distinguishes between the following: Level 1 —Observable inputs, such as quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2 —Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 —Unobservable inputs which reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and inputs to the model. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument's level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The carrying amounts of the Company’s financial instruments consisting of cash and cash equivalents, prepaid expenses and other current assets, accounts payable and accrued liabilities and other current liabilities, approximate fair value due to their relatively short maturities. |
Leases | Leases The Company determines if an arrangement is, or contains, a lease at inception and then classifies the lease as operating or financing based on the underlying terms and conditions of the contract. Leases with terms greater than one year are initially recognized on the balance sheet as right-of-use assets and lease liabilities based on the present value of lease payments over the expected lease term. The interest rate implicit in lease contracts is typically not readily determinable. As such, the Company utilizes the incremental borrowing rate, which is the rate incurred to borrow, on a collateralized basis, an amount equal to the lease payments over a similar term and in a similar economic environment of the applicable country or region. Variable lease payments are excluded from the right of use assets and operating lease liabilities and are recognized in the period in which the obligation for those payments is incurred. |
Property and Equipment, Net | Property and Equipment, Net Property and equipment are stated at cost less accumulated depreciation for acquired assets. Depreciation is computed using the straight-line method over the estimated useful lives of assets, which is generally four years for laboratory equipment, three years for computer equipment and office equipment, five years for computer software and five to seven years for furniture and fixtures. Leasehold improvements are stated at cost and amortized over the shorter of the useful life of the assets or the length of the lease. Upon sale or retirement of assets, the costs and related accumulated depreciation are removed from the consolidated balance sheet and the resulting gain or loss is reflected in operations. Maintenance and repairs are charged to operations as incurred. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability is measured by comparison of the carrying amount to the future undiscounted net cash flows which the assets are expected to generate. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the projected discounted future net cash flows arising from the assets. There have been no such impairments of long-lived assets in the years ended December 31, 2020 and 2019. |
Research and Development Expenses | Research and Development Expenses Costs related to research, design and development of products are charged to research and development expense as incurred. Research and development costs include, but are not limited to, payroll and personnel expenses, including stock-based compensation, laboratory supplies, outside services and allocated overhead, including rent, equipment, depreciation and utilities. |
Accrued Research And Development | Accrued Research and Development The Company has entered into various agreements with various third parties, including clinical investigator sites, contract research organizations (“CROs”) and contract manufacturing organizations (“CMOs”), to provide research and development activities. The Company’s accrued research and development costs are estimated based on the level of services performed, including the phase or completion of events, and contracted costs. Accrued clinical trial and related costs are estimated using data such as patient enrollment, clinical site activations or information provided by outside service providers regarding their actual costs incurred. Management determined accrual estimates through reports from and discussions with clinical personnel and outside service providers as to the progress of trials, or the services completed. The estimated costs of research and development provided, but not yet invoiced, are included in accrued and other current liabilities on the consolidated balance sheets. If the actual timing of the performance of services or the level of effort varies from the original estimates, the Company will adjust the accrual accordingly. Payments made to third parties under these arrangements in advance of the performance of the related services are recorded as prepaid expenses or other assets until the services are rendered. |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for stock-based compensation in accordance with the provisions of ASC 718, Compensation-Stock The Company accounts for forfeitures as they occur. Prior to the adoption of Accounting Standards Update ("ASU") No. 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting ("ASU 2018-07"), the measurement date for non-employee awards was generally the date the services are completed, resulting in financial reporting period adjustments to stock-based compensation during the vesting terms for changes in the fair value of the awards. After adoption of ASU 2018-07 as of January 1, 2019 , the measurement date for non-employee awards is the date of grant without changes in the fair value of the award. The Company has certain stock options and restricted stock units that vest in conjunction with certain performance conditions. At each reporting date, the Company is required to evaluate whether achievement of the performance conditions is probable. Compensation expense is recorded over the appropriate service period based upon the Company's assessment of accomplishing each performance provision. |
Income Taxes | Income Taxes The Company accounts for income taxes under the asset and liability method, which requires, among other things, that deferred income taxes be provided for temporary differences between the tax basis of the Company’s assets and liabilities and their financial statement reported amounts. In addition, deferred tax assets are recorded for the future benefit of utilizing net operating losses (“NOLs”) and research and development credit carryforwards and are measured using the enacted tax rates and laws that will be in effect when such items are expected to reverse. A valuation allowance is provided against deferred tax assets unless it is more likely than not that they will be realized. The Company accounts for uncertain tax positions by assessing all material positions taken in any assessment or challenge by relevant taxing authorities. Assessing an uncertain tax position begins with the initial determination of the position’s sustainability and is measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. The Company’s policy is to recognize interest and penalties related to the underpayment of income taxes as a component of income tax expense or benefit. To date, there have been no interest or penalties charged in relation to the unrecognized tax benefits. |
Comprehensive Loss | Comprehensive Loss Comprehensive loss is composed of net loss and other comprehensive income (loss). Other comprehensive income (loss) consists primarily of unrealized gains and losses on debt securities. |
Liability related to Sale of Future Royalties | Liability related to Sale of Future Royalties On December 1, 2019, the Company and its subsidiary Kodiak Sciences GmbH entered into a funding agreement with Baker Bros. Advisors, LP (“BBA”), which holds more than 5% of the Company’s stock, pursuant to which BBA purchased the right to receive a capped 4.5% royalty on future net sales of KSI-301, the Company’s anti-VEGF antibody biopolymer conjugate therapy, in exchange for $225.0 million. Under the terms of the funding agreement, there is no obligation to repay any funding amount received, other than through the capped royalty payments on future product revenues. The Company recorded the funding amount paid by BBA as a liability on the consolidated balance sheet net of issuance costs , in accordance with ASC 730, Research and Development . Under ASC 730, the significant related party relationship between the Company and BBA creates an implicit obligation to repay the funding amount paid to the Company. Once royalty payments to BBA are determined to be probable and estimable, and if such amounts exceed the liability balance, the Company will impute interest to accrete the liability on a prospective basis based on such estimates. If and when the Company makes royalty payments under the funding agreement, it would reduce the liability balance at such time. Refer to Note 14. |
Credit Losses – Available-for-Sale Debt Securities | Credit Losses – Available-for-Sale Debt Securities For available-for-sale debt securities in an unrealized loss position, the Company will periodically assess its portfolio for impairment. The assessment first considers the intent or requirement to sell the security. If either of these criteria are met, the amortized cost basis will be written down to fair value through earnings. If not met, the Company will evaluate whether the decline resulted from credit losses or other factors by considering the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and any adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security is compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses will be recorded, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income or loss, as applicable. |
Net Loss per Share Attributable to Common Stockholders | Net Loss per Share Attributable to Common Stockholders Basic net loss per common share is calculated by dividing the net loss attributable to common stockholders by the weighted-average number of common stock outstanding during the period, without consideration of potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common stock and potentially dilutive securities outstanding for the period. For purposes of this calculation, the redeemable convertible preferred stock, preferred stock warrants, convertible notes, common stock subject to repurchase, and stock options are considered to be potentially dilutive securities. Basic and diluted net loss attributable to common stockholders per share is presented in conformity with the two-class method required for participating securities as the redeemable convertible preferred stock is considered a participating security. The Company’s participating securities do not have a contractual obligation to share in the Company’s losses. As such, the net loss is attributed entirely to common stockholders. Since the Company has reported net loss for all periods presented, diluted net loss per share is the same as basic net loss per common share for those periods. |
Recent Accounting Pronouncements | Recent a p From time to time, new accounting pronouncements are issued by the FASB, under its ASC or other standard setting bodies, and adopted by the Company as of the specified effective date, unless otherwise discussed below. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) i.e., Leases (Topic 842), Codification Improvements Leases (Topic 842), Targeted Improvements Leases The Company adopted ASC 842 effective January 1, 2019 using the modified retrospective approach to recognize a cumulative-effect adjustment on the effective date and to not adjust financial information and disclosures required under the new lease standards for comparative prior periods. The Company did not elect for the package of practical expedients and assessed all contracts at the transition date. The Company did not utilize the practical expedient which allows the use of hindsight in determining lease term and assessing impairment in right-of-use assets. The Company elected to apply the practical expedient and accounted for each lease component and related non-lease component as one single component. The Company elected the practical expedient not to recognize leases with terms of one year or less on the balance sheet. The adoption of the new lease standards on January 1, 2019 resulted in the initial recognition of right-of-use asset of $2.2 million and operating lease liability of $2.3 million and derecognition of noncurrent deferred liabilities of $0.2 million related to the operating lease for the Company’s office and laboratory space in Palo Alto, California on the consolidated balance sheets with no material impact to the consolidated statements of operations, stockholders’ equity or cash flows. Refer to Note 7. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 362): Measurement of Credit Losses on Financial Statements Codification Improvements to Topic 326, Financial Instruments—Credit Losses which intends to improve financial reporting by requiring earlier recognition of credit losses on certain financial assets, such as available-for-sale debt securities. The Company assessed the In August 2018, the FASB issued ASU 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurements Among the changes, entities will no longer be required to disclose the amount of and reasons for transfers between Levels 1 and 2 of the fair value hierarchy but will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which clarifies the accounting for implementation, set-up, and other upfront costs incurred in cloud computing arrangements. The Company adopted this new guidance as of January 1, 2020, which did not impact its consolidated financial statements and related disclosures. New Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Summary of Property and Equipment, net | Property and equipment, net consists of the following (in thousands): December 31, 2020 December 31, 2019 Leasehold improvement $ 1,285 $ 1,265 Laboratory equipment 3,351 1,125 Furniture and fixtures 214 204 Computer hardware 31 — Computer software 89 79 Office equipment 107 94 Construction in progress 2,229 — Total property and equipment 7,306 2,767 Less: Accumulated depreciation (2,170 ) (1,771 ) Property and equipment, net $ 5,136 $ 996 |
Accrued Liabilities and Other_2
Accrued Liabilities and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounts Payable And Accrued Liabilities Current [Abstract] | |
Schedule of Accrued Liabilities and Other Current Liabilities | Accrued liabilities and other current liabilities consist of the following (in thousands): December 31, 2020 December 31, 2019 Accrued clinical trial and related costs $ 11,119 $ 4,056 Accrued research and development 3,082 838 Accrued salaries and benefits 5,094 3,108 Accrued legal fees 252 302 Accrued professional fees 253 195 Accrued other liabilities 602 159 Total accrued and other current liabilities $ 20,402 $ 8,658 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value Hierarchy for Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present the Company’s fair value hierarchy for assets and liabilities measured at fair value on a recurring basis (in thousands): Fair Value Measurements at December 31, 2020 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 917,485 $ — $ — $ 917,485 Marketable securities: U.S. treasury securities — 10,006 — 10,006 Corporate notes — 14,572 — 14,572 Total $ 917,485 $ 24,578 $ — $ 942,063 Fair Value Measurements at December 31, 2019 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 155,276 $ — $ — $ 155,276 Repurchase agreement 50,000 — — 50,000 Commercial paper — 5,987 — 5,987 Marketable securities: U.S. treasury securities — 50,185 — 50,185 Commercial paper — 34,533 — 34,533 Corporate notes — 51,662 — 51,662 Total $ 205,276 $ 142,367 $ — $ 347,643 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Summary of Marketable Securities Held | The following table summarizes the marketable securities (in thousands): December 31, 2020 Amortized Cost Unrealized Gains Unrealized Losses Fair Value U.S. treasury securities $ 10,003 $ 3 — $ 10,006 Corporate notes 14,522 50 — 14,572 Total marketable securities, current $ 24,525 $ 53 $ — $ 24,578 December 31, 2019 Amortized Cost Unrealized Gains Unrealized Losses Fair Value U.S. treasury securities $ 50,190 $ — $ (5 ) $ 50,185 Commercial paper 34,532 1 — 34,533 Corporate notes 39,956 13 (3 ) 39,966 Total marketable securities, current $ 124,678 $ 14 $ (8 ) $ 124,684 Corporate notes $ 11,692 $ 4 $ — $ 11,696 Total marketable securities, noncurrent $ 11,692 $ 4 $ — $ 11,696 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Maturities of Operating Lease Liabilities | The maturities of the operating lease liabilities as of December 31, 2020 were as follows (in thousands): Year ending December 31, As of December 31, 2020 2021 $ 4,288 2022 7,660 2023 14,598 2024 15,037 2025 15,475 Thereafter 71,462 Total undiscounted lease payments 128,520 Less: imputed interest (51,118 ) Total operating lease liabilities $ 77,402 |
Summary of Lessee, Weighted Average Remaining Lease Term and Weighted Average Discount Rates | The weighted-average remaining lease terms and weighted-average discount rates were as follows: December 31, 2020 December 31, 2019 Weighted-average remaining lease term (in years) 9.5 3.8 Weighted-average discount rate 6.7 % 8.5 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision (Benefit) for Income Taxes | The provision (benefit) for income taxes consists of the following (in thousands): Year Ended December 31, 2020 Year Ended December 31, 2019 Year Ended December 31, 2018 Current: Federal $ — $ — $ — State — — — Foreign 14 — — Total current $ 14 $ — $ — Deferred: Federal $ — $ — $ — State — — — Foreign — — — Total deferred $ — $ — $ — Provision (Benefit) for income taxes $ 14 $ — $ — |
Components of Loss before Income Taxes | The components of loss before income taxes were as follows (in thousands): Year Ended December 31, 2020 Year Ended December 31, 2019 Year Ended December 31, 2018 United States $ (17,273 ) $ 2,633 $ (17,273 ) Foreign (115,809 ) (49,998 ) (24,170 ) Total loss before income taxes $ (133,082 ) $ (47,365 ) $ (41,443 ) |
Components of Deferred Tax Assets | The tax effects of temporary differences that give rise to significant components of the net deferred tax assets are as follows (in thousands): December 31, 2020 December 31, 2019 December 31, 2018 Deferred tax assets: Net operating loss carryforwards $ 28,451 $ 18,523 $ 11,044 Intangible assets 12,088 12,112 7,588 Research and development tax credits 10,527 4,037 1,559 Stock-based compensation 8,405 1,539 394 Accruals 1,367 885 700 Operating lease liability 22,276 577 - Property and equipment 127 143 109 Total deferred tax assets 83,241 37,816 21,394 Valuation allowance (62,005 ) (37,249 ) (21,394 ) Net deferred tax assets 21,236 567 — Deferred tax liabilities: Operating lease right-of-use asset (21,234 ) (534 ) — Capitalized legal fees (2 ) (33 ) — Total deferred tax liabilities (21,236 ) (567 ) — Total net deferred tax assets $ — $ — $ — |
Schedule of Reconciliation of Effective Tax Rate to Statutory U.S. Federal Rate | A reconciliation of the Company’s effective tax rate to the statutory U.S. federal rate is as follows: December 31, 2020 December 31, 2019 December 31, 2018 Federal statutory income tax rate 21.0 % 21.0 % 21.0 % State taxes 4.3 11.0 5.6 Foreign tax rate differential (7.9 ) (12.4 ) (3.8 ) Change in valuation allowance (17.3 ) (30.5 ) (18.3 ) Stock-based compensation 6.7 7.7 (0.6 ) Research tax credit 3.8 3.3 1.3 Other — (0.1 ) (0.1 ) Sale of future royalties (9.4 ) — — Section 162(m) (1.2 ) — — Fair value adjustments — — (2.4 ) Extinguishment of convertible note — — (2.7 ) Provision for income taxes 0.0 % 0.0 % 0.0 % |
Summary of Unrecognized Tax Benefits Amounts | The beginning and ending unrecognized tax benefits amounts are as follows (in thousands): December 31, 2020 December 31, 2019 December 31, 2018 Unrecognized tax benefits at beginning of period $ 1,838 $ 398 $ 357 Increases related to prior year tax positions — — - Increases related to current year tax positions 2,812 1,440 41 Unrecognized tax benefits at end of period $ 4,650 $ 1,838 $ 398 |
Common Stock (Tables)
Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Schedule of Common Stock Reserved for Future Issuances | The Company had reserved common stock for future issuances as follows: December 31, 2020 December 31, 2019 Exercise of options outstanding and release of restricted shares 7,257,221 6,830,442 Exercise of common stock warrants outstanding 399,999 399,999 Issuance of common stock under the 2018 Equity Incentive Plan 2,742,183 2,118,877 Issuance of common stock under the 2018 Employee Share Purchase Plan 460,000 460,000 Total 10,859,403 9,809,318 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock Options Activity Under 2018 Plan and 2015 Plan | Stock option activity under the 2018 Plan and 2015 Plan is summarized as follows: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2019 6,671,542 $ 17.90 8.73 $ 362,081 Granted 1,068,335 $ 55.27 Exercised (704,675 ) $ 8.89 Forfeited or canceled (137,926 ) $ 25.07 Outstanding at December 31, 2020 6,897,276 $ 24.52 8.07 $ 841,704 Shares exercisable December 31, 2020 3,769,990 Vested and expected to vest December 31, 2020 6,897,276 |
Fair Value of Employee Stock Options Estimated Using Weighted-average Assumptions | The Company estimated the fair value of employee stock options using the Black-Scholes valuation model. The fair value of employee stock options was estimated using the following weighted-average assumptions: Year Ended December 31, 2020 Year Ended December 31, 2019 Year Ended December 31, 2018 Expected volatility 66 % 68 % 59 % Risk-free interest rate 0.39 % 1.65 % 2.82 % Dividend yield 0 % 0 % 0 % Expected term 6.00 5.78 6.06 |
Fair Value of Non-Employee Stock Options Estimated Using Weighted-average Assumptions | The fair value of non-employee stock options was estimated using the following weighted-average assumptions: Year Ended December 31, 2020 Year Ended December 31, 2019 Year Ended December 31, 2018 Expected volatility 67 % 73 % 68 % Risk-free interest rate 0.36 % 1.61 % 2.71 % Dividend yield 0 % 0 % 0 % Expected term 5.56 6.08 9.30 |
Summary of Restricted Shares | Restricted share activity, including restricted stock awards (“RSAs”), restricted stock units (“RSUs”), and performance-based restricted stock units (“PSUs”), under the 2018 Plan and 2015 Plan is summarized as follows: Number of Restricted Shares Weighted Average Grant Date Fair Value Unvested at December 31, 2019 160,747 $ 60.81 Granted 236,045 $ 52.18 Vested (23,848 ) $ 9.21 Shares withheld related to net share settlement of RSUs (7,999 ) $ 9.90 Canceled (5,000 ) $ 72.46 Unvested at December 31, 2020 359,945 $ 59.54 |
Fair Value of Performance Based Awards and RSUs Estimated Using Weighted-average Assumptions | The fair value of performance-based stock options was estimated using the following weighted-average assumptions: Year Ended December 31, 2019 Expected volatility 72 % Risk-free interest rate 1.67 % Dividend yield 0 % Expected term 6.31 |
Summary of Stock-based Compensation Classified in Condensed Consolidated Statements of Operations and Comprehensive Loss | Stock-based compensation is classified in the consolidated statements of operations and comprehensive loss as follows (in thousands): Year Ended December 31, 2020 Year Ended December 31, 2019 Year Ended December 31, 2018 Research and development $ 16,957 $ 3,496 $ 1,535 General and administrative 13,711 2,614 1,073 Total stock-based compensation $ 30,668 $ 6,110 $ 2,608 |
Net Loss per Share Attributab_2
Net Loss per Share Attributable to Common Stockholders (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Loss per Share Attributable to Common Stockholders | The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders which excludes shares which are legally outstanding, but subject to repurchase by the Company (in thousands, except share and per share data): Year Ended December 31, 2020 Year Ended December 31, 2019 Year Ended December 31, 2018 Numerator: Net loss attributable to common stockholders $ (133,096 ) $ (47,365 ) $ (41,443 ) Denominator: Weighted-average shares outstanding 45,741,845 37,869,291 15,136,197 Less: weighted-average unvested restricted shares and shares subject to repurchase — (15,675 ) (159,682 ) Weighted-average shares outstanding used in computing net loss per share attributable to common stockholders, basic and diluted 45,741,845 37,853,616 14,976,515 Net loss per share attributable to common stockholders, basic and diluted $ (2.91 ) $ (1.25 ) $ (2.77 ) |
Summary of Anti-dilutive Securities Excluded from Computation of Diluted Net Loss per Share | The following potentially dilutive securities, presented on an as-converted to common stock basis, were excluded from the computation of diluted net loss per share attributable to common stockholders for the period presented because including them would have been antidilutive: Year Ended December 31, 2020 Year Ended December 31, 2019 Year Ended December 31, 2018 Exercise of options outstanding 6,897,276 6,671,542 5,135,267 Unvested restricted shares 359,945 160,747 50,450 Total 7,257,221 6,832,289 5,185,717 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | The following table provides the selected quarterly financial information for the years , 2020 and 2019 Three Months Ended March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020 Loss from operations $ (25,723 ) $ (26,779 ) $ (36,663 ) $ (46,842 ) Net loss $ (24,392 ) $ (25,999 ) $ (36,122 ) $ (46,583 ) Net loss per share attributable to common stockholders, basic and diluted $ (0.54 ) $ (0.58 ) $ (0.80 ) $ (0.97 ) Three Months Ended March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 Loss from operations $ (8,460 ) $ (11,814 ) $ (12,732 ) $ (16,184 ) Net loss $ (7,984 ) $ (11,385 ) $ (12,380 ) $ (15,616 ) Net loss per share attributable to common stockholders, basic and diluted $ (0.21 ) $ (0.31 ) $ (0.33 ) $ (0.40 ) |
The Company - Additional Inform
The Company - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 09, 2018 | Nov. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Net proceeds from initial public offering | $ 83,500 | |||||
Net proceeds from issuance of common stock | $ 612,016 | $ 297,616 | $ 83,755 | |||
Redeemable Convertible Preferred Stock | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Conversion of redeemable convertible preferred stock into common stock, shares | (12,385,154) | |||||
Common Stock | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Stock issued during period | 5,972,222 | 6,900,000 | 9,400,000 | |||
Conversion of 2017 and 2018 convertible notes into common stock, shares | 6,932,969 | |||||
Initial Public Offering | Common Stock | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Stock issued during period | 9,400,000 | |||||
Share issued price, per share | $ 10 | |||||
Gross proceeds from initial public offering | $ 94,000 | |||||
Conversion of redeemable convertible preferred stock into common stock, shares | 12,385,154 | |||||
Initial Public Offering | Common Stock | 2017 Convertible Notes | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Conversion of 2017 and 2018 convertible notes into common stock, shares | 2,637,292 | |||||
Initial Public Offering | Common Stock | 2018 Convertible Notes | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Conversion of 2017 and 2018 convertible notes into common stock, shares | 4,295,677 | |||||
Initial Public Offering | Common Stock | Redeemable Convertible Preferred Stock | Warrants Exercised Into Convertible Preferred Shares Then Converted | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Warrants exercised into common stock shares | 100,000 | |||||
Initial Public Offering | Common Stock | Redeemable Convertible Preferred Stock | Warrant | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Conversion of preferred stock warrants into common stock warrants, shares | 500,000 | |||||
Follow-On Offering | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Gross proceeds from issuance of common stock | $ 645,000 | $ 317,400 | ||||
Net proceeds from issuance of common stock | $ 612,000 | $ 297,600 | ||||
Follow-On Offering | Common Stock | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Stock issued during period | 5,972,222 | 6,900,000 | ||||
Share issued price, per share | $ 108 | $ 46 | $ 46 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) | Dec. 01, 2019USD ($) | Dec. 31, 2020USD ($)Segment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jan. 01, 2019USD ($) |
Summary of Significant Accounting Policies [Line Items] | |||||
Foreign currency transaction loss | $ (300,000) | $ (300,000) | |||
Number of reportable segments | Segment | 1 | ||||
Number of operating segments | Segment | 1 | ||||
Long-term restricted cash | $ 6,324,000 | $ 140,000 | $ 140,000 | ||
Impairment of long-lived assets | 0 | 0 | |||
Unrecognized tax benefits, interest and penalties charged | 0 | ||||
Operating lease right-of-use asset | 73,672,000 | 1,790,000 | |||
Operating lease liability | 77,402,000 | ||||
Accounting Standards Update 2016-02 | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Operating lease right-of-use asset | $ 2,200,000 | ||||
Operating lease liability | 2,300,000 | ||||
Derecognition of noncurrent deferred liabilities | $ 200,000 | ||||
ASU 2016-13 | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Allowance for credit losses for available-for-sale debt securities | $ 0 | ||||
Baker Bros. Advisors LP | Funding Agreement | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Capped percentage of royalty on future net sales | 4.50% | ||||
Contractual obligation under funding agreement | $ 225,000,000 | ||||
Laboratory Equipment | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Property and equipment estimated useful lives of assets | 4 years | ||||
Computer Equipment and Office Equipment | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Property and equipment estimated useful lives of assets | 3 years | ||||
Computer Software | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Property and equipment estimated useful lives of assets | 5 years | ||||
Deposited with Financial Institution | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Long-term restricted cash | $ 6,300,000 | 100,000 | |||
Maximum | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Foreign currency transaction loss | $ (100,000) | ||||
Maximum | Furniture and Fixtures | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Property and equipment estimated useful lives of assets | 7 years | ||||
Minimum | Baker Bros. Advisors LP | Funding Agreement | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Ownership percentage threshold | 5.00% | ||||
Minimum | Furniture and Fixtures | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Property and equipment estimated useful lives of assets | 5 years |
Property and Equipment, Net - S
Property and Equipment, Net - Summary of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Property Plant and Equipment [Line Items] | ||
Total property and equipment | $ 7,306 | $ 2,767 |
Less: Accumulated depreciation | (2,170) | (1,771) |
Property and equipment, net | 5,136 | 996 |
Leasehold Improvement | ||
Property Plant and Equipment [Line Items] | ||
Total property and equipment | 1,285 | 1,265 |
Laboratory Equipment | ||
Property Plant and Equipment [Line Items] | ||
Total property and equipment | 3,351 | 1,125 |
Furniture and Fixtures | ||
Property Plant and Equipment [Line Items] | ||
Total property and equipment | 214 | 204 |
Computer Hardware | ||
Property Plant and Equipment [Line Items] | ||
Total property and equipment | 31 | |
Computer Software | ||
Property Plant and Equipment [Line Items] | ||
Total property and equipment | 89 | 79 |
Office Equipment | ||
Property Plant and Equipment [Line Items] | ||
Total property and equipment | 107 | $ 94 |
Construction in Progress | ||
Property Plant and Equipment [Line Items] | ||
Total property and equipment | $ 2,229 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |||
Depreciation | $ 477 | $ 538 | $ 490 |
Accrued Liabilities and Other_3
Accrued Liabilities and Other Current Liabilities - Schedule of Accrued Liabilities and Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts Payable And Accrued Liabilities Current [Abstract] | ||
Accrued clinical trial and related costs | $ 11,119 | $ 4,056 |
Accrued research and development | 3,082 | 838 |
Accrued salaries and benefits | 5,094 | 3,108 |
Accrued legal fees | 252 | 302 |
Accrued professional fees | 253 | 195 |
Accrued other liabilities | 602 | 159 |
Total accrued and other current liabilities | $ 20,402 | $ 8,658 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Fair Value Hierarchy for Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total | $ 942,063 | $ 347,643 |
Money Market Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 917,485 | 155,276 |
U.S. Treasury Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities | 10,006 | 50,185 |
Corporate Notes | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities | 14,572 | 51,662 |
Repurchase Agreement | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 50,000 | |
Commercial Paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 5,987 | |
Marketable securities | 34,533 | |
Quoted Price in Active Markets (Level 1) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total | 917,485 | 205,276 |
Quoted Price in Active Markets (Level 1) | Money Market Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 917,485 | 155,276 |
Quoted Price in Active Markets (Level 1) | U.S. Treasury Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Quoted Price in Active Markets (Level 1) | Corporate Notes | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Quoted Price in Active Markets (Level 1) | Repurchase Agreement | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 50,000 | |
Quoted Price in Active Markets (Level 1) | Commercial Paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
Marketable securities | 0 | |
Significant Observable Inputs (Level 2) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total | 24,578 | 142,367 |
Significant Observable Inputs (Level 2) | Money Market Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Significant Observable Inputs (Level 2) | U.S. Treasury Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities | 10,006 | 50,185 |
Significant Observable Inputs (Level 2) | Corporate Notes | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities | 14,572 | 51,662 |
Significant Observable Inputs (Level 2) | Repurchase Agreement | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
Significant Observable Inputs (Level 2) | Commercial Paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 5,987 | |
Marketable securities | 34,533 | |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Money Market Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Significant Unobservable Inputs (Level 3) | U.S. Treasury Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Corporate Notes | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities | $ 0 | 0 |
Significant Unobservable Inputs (Level 3) | Repurchase Agreement | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
Significant Unobservable Inputs (Level 3) | Commercial Paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
Marketable securities | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Transfers of assets or liabilities between the fair value measurement levels | $ 0 | $ 0 |
Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Liability measured at fair value | 0 | 0 |
Nonrecurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Liability measured at fair value | $ 0 | $ 0 |
Marketable Securities - Summary
Marketable Securities - Summary of Marketable Securities Held (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Marketable Securities [Line Items] | ||
Amortized Cost, current | $ 24,525 | $ 124,678 |
Unrealized Gains, current | 53 | 14 |
Unrealized Losses, current | (8) | |
Fair Value, current | 24,578 | 124,684 |
Amortized Cost, noncurrent | 11,692 | |
Unrealized Gains, noncurrent | 4 | |
Fair Value, noncurrent | 11,696 | |
U.S. Treasury Securities | ||
Marketable Securities [Line Items] | ||
Amortized Cost, current | 10,003 | 50,190 |
Unrealized Gains, current | 3 | |
Unrealized Losses, current | (5) | |
Fair Value, current | 10,006 | 50,185 |
Commercial Paper | ||
Marketable Securities [Line Items] | ||
Amortized Cost, current | 34,532 | |
Unrealized Gains, current | 1 | |
Fair Value, current | 34,533 | |
Corporate Notes | ||
Marketable Securities [Line Items] | ||
Amortized Cost, current | 14,522 | 39,956 |
Unrealized Gains, current | 50 | 13 |
Unrealized Losses, current | (3) | |
Fair Value, current | $ 14,572 | 39,966 |
Amortized Cost, noncurrent | 11,692 | |
Unrealized Gains, noncurrent | 4 | |
Fair Value, noncurrent | $ 11,696 |
Marketable Securities - Additio
Marketable Securities - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Marketable Securities [Line Items] | |
Realized gains or losses recognized on sale or maturity of available-for-sale debt securities | $ 0 |
Marketable securities with unrealized losses | $ 0 |
Maximum | |
Marketable Securities [Line Items] | |
Marketable securities, contractual maturities | 1 year |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) SFr in Thousands, ft² in Millions | 1 Months Ended | 12 Months Ended | |||||||
Aug. 31, 2020CHF (SFr) | Jun. 30, 2020USD ($)ft²Building | Apr. 30, 2020CHF (SFr)m² | Mar. 31, 2016USD ($) | May 31, 2013USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jul. 01, 2020USD ($) | |
Commitments And Contingencies Disclosure [Line Items] | |||||||||
Operating lease right-of-use asset | $ 73,672,000 | $ 1,790,000 | |||||||
Lease liabilities | 77,402,000 | ||||||||
Current portion of tenant improvement allowance payable | 20,402,000 | 8,658,000 | |||||||
Other liabilities, non-current portion of tenant Improvement allowance payable | 256,000 | 295,000 | |||||||
Tenant Improvement Allowance Payable | |||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||
Other liabilities, non-current portion of tenant Improvement allowance payable | 300,000 | 300,000 | |||||||
Purchase Commitments | |||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||
Noncancellable purchase commitments, including potential cancellation fees | 500,000 | 700,000 | |||||||
Lonza | Service Agreements | |||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||
Cancelable and/ or non-cancelable contractual obligations, total | $ 242,300,000 | 4,700,000 | |||||||
Contractual obligation period | 10 years | ||||||||
Unrecorded unconditional purchase obligation, expenses recognized | $ 16,800,000 | 7,900,000 | $ 2,800,000 | ||||||
Unrecorded unconditional purchase obligation, cancellation fees | 0 | ||||||||
Maximum | Tenant Improvement Allowance Payable | |||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||
Current portion of tenant improvement allowance payable | 100,000 | $ 100,000 | |||||||
Maximum | Cancellable Assignment and License Agreement | |||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||
Milestone payments | 33,200,000 | ||||||||
Clinical and Commercial Supply of Drug Substance | Manufacturing Agreement | |||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||
Estimated capital contribution | SFr | SFr 40,000 | ||||||||
Annual suite fees payment for 2021 | SFr | 12,000 | ||||||||
Annual suite fees payment each year after 2021 | SFr | SFr 16,000 | ||||||||
Manufacturing agreement initial term | 8 years | ||||||||
Clinical and Commercial Supply of Drug Substance | Maximum | Manufacturing Agreement | |||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||
Manufacturing agreement term that can be extended | 16 years | ||||||||
Leasehold Improvements | California | |||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||
Improvements allowance payable to be drawn | $ 400,000 | ||||||||
Interest rate | 8.00% | ||||||||
Lease term | Oct. 31, 2023 | ||||||||
Debt instrument term | 10 years | ||||||||
Lease Agreement on June 2020 | California | |||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||
Number of buildings leased | Building | 2 | ||||||||
Cash-collateralized letter of credit | $ 10,900,000 | $ 6,200,000 | |||||||
Lease Agreement on June 2020 | 1200 Page Mill Road in Palo Alto | California | |||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||
Lease area | ft² | 82,662 | ||||||||
Initial lease term | 6 years 6 months | ||||||||
Monthly rent expense | $ 600,000 | ||||||||
Annual rent year-over-year increase percentage | 3.00% | ||||||||
Total rent abatement | $ 7,200,000 | ||||||||
Lessee operating lease option to extend | 6.5 years | ||||||||
Tenant improvement allowance | $ 1,200,000 | ||||||||
Lease Agreement on June 2020 | 1250 Page Mill Road in Palo Alto | California | |||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||
Lease area | ft² | 72,812 | ||||||||
Initial lease term | 13 years | ||||||||
Monthly rent expense | $ 500,000 | ||||||||
Annual rent year-over-year increase percentage | 3.00% | ||||||||
Total rent abatement | $ 6,300,000 | ||||||||
Lessee operating lease option to extend | 5 years | ||||||||
Tenant improvement allowance | $ 10,600,000 | ||||||||
Number of options to extend lease term | 2 | ||||||||
Lease Agreement on April 2020 | Rottenstrasse 5 in Visp | Switzerland | |||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||
Lease area | m² | 1,000 | ||||||||
Initial lease term | 5 years | ||||||||
Monthly rent expense | SFr | SFr 32 | ||||||||
Automatic renewal interval | 5 years | ||||||||
Lease Agreement on April 2020 | Rottenstrasse 5 in Visp | Switzerland | Maximum | |||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||
Lessee, operating lease, term of contract | 15 years | ||||||||
Lease Agreement on April and June 2020 | |||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||
Operating lease right-of-use asset | 0 | ||||||||
Lease liabilities | $ 0 | ||||||||
Tenant Improvement Allowance Agreement | Leasehold Improvements | California | |||||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||||
Improvements allowance payable to be drawn | $ 300,000 | ||||||||
Interest rate | 8.00% | ||||||||
Lease term | Oct. 31, 2018 |
Commitments and Contingencies_2
Commitments and Contingencies - Summary of Maturities of Operating Lease Liabilities (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Operating Lease | |
2021 | $ 4,288 |
2022 | 7,660 |
2023 | 14,598 |
2024 | 15,037 |
2025 | 15,475 |
Thereafter | 71,462 |
Total undiscounted lease payments | 128,520 |
Less: imputed interest | (51,118) |
Total operating lease liabilities | $ 77,402 |
Commitments and Contingencies_3
Commitments and Contingencies - Summary of Lessee, Weighted Average Remaining Lease Term and Weighted Average Discount Rates (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
Commitments And Contingencies Disclosure [Abstract] | ||
Weighted-average remaining lease term (in years) | 9 years 6 months | 3 years 9 months 18 days |
Weighted-average discount rate | 6.70% | 8.50% |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision (Benefit) for Income Taxes (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Current: | |
Foreign | $ 14 |
Total current | 14 |
Deferred: | |
Provision (Benefit) for income taxes | $ 14 |
Income Taxes - Components of Lo
Income Taxes - Components of Loss before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (17,273) | $ 2,633 | $ (17,273) |
Foreign | (115,809) | (49,998) | (24,170) |
Total loss before income taxes | $ (133,082) | $ (47,365) | $ (41,443) |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | |||
Net operating loss carryforwards | $ 28,451 | $ 18,523 | $ 11,044 |
Intangible assets | 12,088 | 12,112 | 7,588 |
Research and development tax credits | 10,527 | 4,037 | 1,559 |
Stock-based compensation | 8,405 | 1,539 | 394 |
Accruals | 1,367 | 885 | 700 |
Operating lease liability | 22,276 | 577 | 0 |
Property and equipment | 127 | 143 | 109 |
Total deferred tax assets | 83,241 | 37,816 | 21,394 |
Valuation allowance | (62,005) | (37,249) | (21,394) |
Net deferred tax assets | 21,236 | 567 | 0 |
Deferred tax liabilities: | |||
Operating lease right-of-use asset | (21,234) | (534) | 0 |
Capitalized legal fees | (2) | (33) | 0 |
Total deferred tax liabilities | $ (21,236) | (567) | 0 |
Total net deferred tax assets | $ 0 | $ 0 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes [Line Items] | |||
Increase in valuation allowance | $ 24,800 | $ 15,900 | $ 8,200 |
Research and development credit carryforwards | 10,527 | $ 4,037 | $ 1,559 |
Federal | |||
Income Taxes [Line Items] | |||
Net operating loss | $ 50,100 | ||
Net operating loss carryforwards expiration start year | 2035 | ||
Research and development credit carryforwards | $ 10,200 | ||
Tax credit carryforwards expiration start year | 2035 | ||
Number of periods open for examination | 3 years | ||
Federal | Net Operating Loss Not Subject to Expiration | |||
Income Taxes [Line Items] | |||
Net operating loss | $ 32,000 | ||
State | |||
Income Taxes [Line Items] | |||
Net operating loss | $ 171,000 | ||
Net operating loss carryforwards expiration start year | 2035 | ||
Research and development credit carryforwards | $ 4,900 | ||
Number of periods open for examination | 4 years | ||
California | |||
Income Taxes [Line Items] | |||
Tax credit carryforward, expiration year | indefinitely |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Effective Tax Rate to Statutory U.S. Federal Rate (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory income tax rate | 21.00% | 21.00% | 21.00% |
State taxes | 4.30% | 11.00% | 5.60% |
Foreign tax rate differential | (7.90%) | (12.40%) | (3.80%) |
Change in valuation allowance | (17.30%) | (30.50%) | (18.30%) |
Stock-based compensation | 6.70% | 7.70% | (0.60%) |
Research tax credit | 3.80% | 3.30% | 1.30% |
Other | (0.10%) | (0.10%) | |
Sale of future royalties | (9.40%) | ||
Section 162(m) | (1.20%) | ||
Fair value adjustments | (2.40%) | ||
Extinguishment of convertible note | (2.70%) | ||
Provision for income taxes | 0.00% | 0.00% | 0.00% |
Income Taxes - Summary of Unrec
Income Taxes - Summary of Unrecognized Tax Benefits Amounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits at beginning of period | $ 1,838 | $ 398 | $ 357 |
Increases related to prior year tax positions | 0 | 0 | 0 |
Increases related to current year tax positions | 2,812 | 1,440 | 41 |
Unrecognized tax benefits at end of period | $ 4,650 | $ 1,838 | $ 398 |
Preferred Stock - Additional In
Preferred Stock - Additional Information (Details) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Class Of Stock [Line Items] | ||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Maximum | ||
Class Of Stock [Line Items] | ||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Common Stock - Additional Infor
Common Stock - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2020Vote$ / sharesshares | Dec. 31, 2019Vote$ / sharesshares | |
Equity [Abstract] | ||
Common stock, shares authorized | shares | 490,000,000 | 490,000,000 |
Common stock, par value | $ / shares | $ 0.0001 | $ 0.0001 |
Common stock, number of vote per share | Vote | 1 | 1 |
Common Stock - Schedule of Comm
Common Stock - Schedule of Common Stock Reserved for Future Issuances (Details) - shares | Dec. 31, 2020 | Dec. 31, 2019 |
Class Of Stock [Line Items] | ||
Common stock reserved for future issuances | 10,859,403 | 9,809,318 |
Stock Options Outstanding and Release of Restricted Shares | ||
Class Of Stock [Line Items] | ||
Common stock reserved for future issuances | 7,257,221 | 6,830,442 |
2018 Equity Incentive Plan | ||
Class Of Stock [Line Items] | ||
Common stock reserved for future issuances | 2,742,183 | 2,118,877 |
2018 Employee Share Purchase Plan | ||
Class Of Stock [Line Items] | ||
Common stock reserved for future issuances | 460,000 | 460,000 |
Warrant | ||
Class Of Stock [Line Items] | ||
Common stock reserved for future issuances | 399,999 | 399,999 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense recognized | $ 30,668,000 | $ 6,110,000 | $ 2,608,000 |
Common stock, shares reserved for issuance | 10,859,403 | 9,809,318 | |
Unrecognized stock-based compensation expense | $ 91,400,000 | ||
Unrecognized stock-based compensation weighted-average period expected for recognition | 2 years 10 months 24 days | ||
Employee Stock Options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock options, weighted-average grant date fair value | $ 32.44 | $ 34.11 | $ 4.36 |
Dividends paid | $ 0 | ||
Expected dividend payment | $ 0 | ||
Dividend yield | 0.00% | 0.00% | 0.00% |
Total fair value of employee options vested | $ 19,700,000 | $ 4,600,000 | $ 1,200,000 |
Stock-based compensation expense recognized | $ 20,800,000 | $ 5,700,000 | $ 2,000,000 |
Non-employee Stock Options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Dividend yield | 0.00% | 0.00% | 0.00% |
Stock options, granted | 41,500 | 15,000 | 215,000 |
Options Granted to Non-employees | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense recognized | $ 700,000 | $ 100,000 | $ 400,000 |
Restricted Stock Awards (RSAs) | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Awards vesting period | 4 years | ||
Stock-based compensation expense recognized | 100,000 | 200,000 | |
Stock-based compensation of total fair value vested | $ 100,000 | 200,000 | |
Stock units, granted | 236,045 | ||
Awards vested | 23,848 | ||
Weighted-average grant date fair value | $ 59.54 | $ 60.81 | |
Restricted Stock Units (RSUs) | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Awards vesting period | 4 years | ||
Stock-based compensation expense recognized | $ 1,900,000 | $ 300,000 | |
Stock-based compensation of total fair value vested | $ 300,000 | 300,000 | |
Stock units, granted | 236,045 | ||
Restricted Stock Units (RSUs) | Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense recognized | $ 100,000 | ||
Performance Based Equity Awards | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense recognized | $ 7,200,000 | $ 100,000 | |
Stock options, granted | 0 | ||
Vesting period | These performance-based equity awards will vest one-quarter upon the achievement of specific clinical development milestones. The remaining shares will then vest in three equal annual installments after that date. | ||
Awards vested | 0 | 0 | |
Performance-based Stock Options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Dividend yield | 0.00% | ||
Weighted-average grant date fair value | $ 47.89 | ||
Performance Based Restricted Stock Units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Weighted-average grant date fair value | $ 73.51 | ||
2018 Equity Incentive Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of shares increases annually | 1,776,761 | ||
Awards vesting period | 4 years | ||
Number of shares available for grant | 2,742,183 | ||
2018 Equity Incentive Plan | Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of shares increases annually | 4,300,000 | ||
Percentage of outstanding stock | 4.00% | ||
2018 Equity Incentive Plan | Incentive Stock Options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Common stock, shares reserved for issuance | 4,300,000 | ||
2018 Equity Incentive Plan | Incentive Stock Options | Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Options, periods granted | 10 years | ||
2018 Equity Incentive Plan | ISO Granted to a Greater than 10% Stockholder | Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Options, periods granted | 5 years | ||
Options exercise price, percentage of estimated fair value of shares on grant date | 110.00% | ||
2018 Employee Share Purchase Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Common stock, shares reserved for issuance | 460,000 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Options Activity Under 2018 Plan and 2015 Plan (Details) - 2018 Plan and 2015 Equity Incentive Plan - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Number of Options | ||
Beginning balance | 6,671,542 | |
Granted | 1,068,335 | |
Exercised | (704,675) | |
Forfeited or canceled | (137,926) | |
Ending balance | 6,897,276 | 6,671,542 |
Shares exercisable | 3,769,990 | |
Vested and expected to vest | 6,897,276 | |
Weighted Average Exercise Price | ||
Beginning balance | $ 17.90 | |
Granted | 55.27 | |
Exercised | 8.89 | |
Forfeited or canceled | 25.07 | |
Ending balance | $ 24.52 | $ 17.90 |
Weighted Average Remaining Contractual Term (in years) | ||
Weighted Average Remaining Contractual Term (in years) | 8 years 25 days | 8 years 8 months 23 days |
Aggregate Intrinsic Value | ||
Beginning balance | $ 841,704 | $ 362,081 |
Stock-Based Compensation - Fair
Stock-Based Compensation - Fair Value of Employee Stock Options Estimated Using Weighted-average Assumptions (Details) - Employee Stock Options | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected volatility | 66.00% | 68.00% | 59.00% |
Risk-free interest rate | 0.39% | 1.65% | 2.82% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Expected term | 6 years | 5 years 9 months 10 days | 6 years 21 days |
Stock-Based Compensation - Fa_2
Stock-Based Compensation - Fair Value of Non-employee Stock Options Estimated Using Weighted-average Assumptions (Details) - Non-employee Stock Options | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected volatility | 67.00% | 73.00% | 68.00% |
Risk-free interest rate | 0.36% | 1.61% | 2.71% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Expected term | 5 years 6 months 21 days | 6 years 29 days | 9 years 3 months 18 days |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Restricted Shares (Details) - Restricted Stock Awards (RSAs) | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Number of Restricted Shares | |
Unvested, beginning balance | shares | 160,747 |
Granted | shares | 236,045 |
Vested | shares | (23,848) |
Shares withheld related to net share settlement of RSUs | shares | (7,999) |
Canceled | shares | (5,000) |
Unvested, ending balance | shares | 359,945 |
Weighted Average Grant Date Fair Value | |
Unvested, beginning balance | $ / shares | $ 60.81 |
Granted | $ / shares | 52.18 |
Vested | $ / shares | 9.21 |
Shares withheld related to net share settlement of RSUs | $ / shares | 9.90 |
Canceled | $ / shares | 72.46 |
Unvested, ending balance | $ / shares | $ 59.54 |
Stock-Based Compensation - Fa_3
Stock-Based Compensation - Fair Value of Performance-based Stock Options Estimated Using Weighted-average Assumptions (Details) - Performance-based Stock Options | 12 Months Ended |
Dec. 31, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Expected volatility | 72.00% |
Risk-free interest rate | 1.67% |
Dividend yield | 0.00% |
Expected term | 6 years 3 months 21 days |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Stock-based Compensation Classified in Condensed Consolidated Statements of Operations and Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | $ 30,668 | $ 6,110 | $ 2,608 |
Research and Development | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | 16,957 | 3,496 | 1,535 |
General and Administrative | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | $ 13,711 | $ 2,614 | $ 1,073 |
Net Loss per Share Attributab_3
Net Loss per Share Attributable to Common Stockholders - Computation of Basic and Diluted Net Loss per Share Attributable to Common Stockholders (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Numerator: | |||||||||||
Net loss | $ (46,583) | $ (36,122) | $ (25,999) | $ (24,392) | $ (15,616) | $ (12,380) | $ (11,385) | $ (7,984) | $ (133,096) | $ (47,365) | $ (41,443) |
Denominator: | |||||||||||
Weighted-average shares outstanding | 45,741,845 | 37,869,291 | 15,136,197 | ||||||||
Less: weighted-average unvested restricted shares and shares subject to repurchase | 0 | (15,675) | (159,682) | ||||||||
Weighted-average common shares outstanding used in computing net loss per common share, basic and diluted | 45,741,845 | 37,853,616 | 14,976,515 | ||||||||
Net loss per share attributable to common stockholders, basic and diluted | $ (0.97) | $ (0.80) | $ (0.58) | $ (0.54) | $ (0.40) | $ (0.33) | $ (0.31) | $ (0.21) | $ (2.91) | $ (1.25) | $ (2.77) |
Net Loss per Share Attributab_4
Net Loss per Share Attributable to Common Stockholders - Summary of Anti-dilutive Securities Excluded from Computation of Diluted Net Loss per Share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from the computation of diluted net loss per share | 7,257,221 | 6,832,289 | 5,185,717 |
Employee Stock Options | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from the computation of diluted net loss per share | 6,897,276 | 6,671,542 | 5,135,267 |
Unvested Restricted Shares | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from the computation of diluted net loss per share | 359,945 | 160,747 | 50,450 |
401(k) Plan - Additional Inform
401(k) Plan - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Contribution Plan Disclosure [Line Items] | ||
Plan name | 401(k) | |
Defined Contribution Plan, Plan Name [Extensible List] | kod:RetirementAndSavingsPlanMember | |
Employer matching contribution, percent of match | 100.00% | |
Expense related to matching contributions | $ 0.6 | $ 0.3 |
IRS | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Defined contribution plan, employer matching contribution cap on employee contribution limit | 50.00% |
Liability Related to Sale of _2
Liability Related to Sale of Future Royalties - Additional Information (Details) - USD ($) | Feb. 04, 2020 | Dec. 01, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Feb. 29, 2020 |
Related Party Transaction [Line Items] | ||||||
Proceeds from sale of future royalties | $ 99,643,000 | $ 0 | $ 0 | |||
Liability related to sale of future royalties | 99,890,000 | |||||
Baker Bros. Advisors LP | Funding Agreement | ||||||
Related Party Transaction [Line Items] | ||||||
Capped percentage of royalty on future net sales | 4.50% | |||||
Contractual obligation under funding agreement | $ 225,000,000 | |||||
Percentage of repurchase of royalties | 100.00% | |||||
Proceeds from sale of future royalties | $ 100,000,000 | |||||
Funds to be payable upon enrollment of patients | $ 125,000,000 | |||||
Percentage of patients to be enrolled | 50.00% | |||||
Liability related to sale of future royalties | 100,000,000 | |||||
Interest expense, liability related to sale of future royalties | $ 0 | |||||
Baker Bros. Advisors LP | Funding Agreement | Minimum | ||||||
Related Party Transaction [Line Items] | ||||||
Ownership percentage | 5.00% |
Selected Quarterly Financial _3
Selected Quarterly Financial Data - Schedule of Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Loss from operations | $ (46,842) | $ (36,663) | $ (26,779) | $ (25,723) | $ (16,184) | $ (12,732) | $ (11,814) | $ (8,460) | $ (136,007) | $ (49,190) | $ (26,374) |
Net loss | $ (46,583) | $ (36,122) | $ (25,999) | $ (24,392) | $ (15,616) | $ (12,380) | $ (11,385) | $ (7,984) | $ (133,096) | $ (47,365) | $ (41,443) |
Net loss per share attributable to common stockholders, basic and diluted | $ (0.97) | $ (0.80) | $ (0.58) | $ (0.54) | $ (0.40) | $ (0.33) | $ (0.31) | $ (0.21) | $ (2.91) | $ (1.25) | $ (2.77) |