Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 08, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | CALA | |
Entity Registrant Name | Calithera Biosciences, Inc. | |
Entity Central Index Key | 0001496671 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Common Stock, Shares Outstanding | 53,775,304 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-36644 | |
Entity Tax Identification Number | 272366329 | |
Entity Address, Address Line One | 343 Oyster Point Blvd. | |
Entity Address, Address Line Two | Suite 200 | |
Entity Address, City or Town | South San Francisco | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94080 | |
City Area Code | 650 | |
Local Phone Number | 870-1000 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 21,661 | $ 51,058 |
Short-term investments | 111,933 | 85,095 |
Receivables from collaborations | 1,712 | 1,997 |
Prepaid expenses and other current assets | 1,492 | 2,102 |
Total current assets | 136,798 | 140,252 |
Other assets | 361 | 569 |
Restricted cash | 440 | 440 |
Property and equipment, net | 1,106 | 1,464 |
Operating lease right-of-use asset | 7,614 | |
Total assets | 146,319 | 142,725 |
Current liabilities: | ||
Accounts payable | 713 | 1,247 |
Accrued and other liabilities | 17,792 | 13,634 |
Total current liabilities | 18,505 | 14,881 |
Noncurrent operating lease liability | 7,155 | |
Deferred rent | 1,130 | |
Total liabilities | 25,660 | 16,011 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock, $0.0001 par value, 200,000 shares authorized as of September 30, 2019, and December 31, 2018; 53,775 and 38,834 shares issued and outstanding as of September 30, 2019, and December 31, 2018, respectively | 5 | 4 |
Additional paid-in capital | 384,962 | 322,993 |
Accumulated deficit | (264,373) | (196,170) |
Accumulated other comprehensive income (loss) | 65 | (113) |
Total stockholders’ equity | 120,659 | 126,714 |
Total liabilities and stockholders’ equity | $ 146,319 | $ 142,725 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 53,775,000 | 38,834,000 |
Common stock, shares outstanding | 53,775,000 | 38,834,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue: | ||||
Total revenue | $ 22,254 | |||
Type of Revenue [Extensible List] | us-gaap:LicenseAndServiceMember | us-gaap:LicenseAndServiceMember | us-gaap:LicenseAndServiceMember | us-gaap:LicenseAndServiceMember |
Operating expenses: | ||||
Research and development | $ 17,221 | $ 16,420 | $ 58,388 | $ 49,218 |
General and administrative | 3,906 | 3,087 | 12,054 | 10,093 |
Total operating expenses | 21,127 | 19,507 | 70,442 | 59,311 |
Loss from operations | (21,127) | (19,507) | (70,442) | (37,057) |
Interest and other income, net | 834 | 658 | 2,310 | 1,927 |
Net loss | $ (20,293) | $ (18,849) | $ (68,132) | $ (35,130) |
Net loss per share, basic and diluted | $ (0.38) | $ (0.52) | $ (1.52) | $ (0.98) |
Weighted average common shares used to compute net loss per share, basic and diluted | 53,775 | 36,405 | 44,703 | 36,021 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net loss | $ (20,293) | $ (18,849) | $ (68,132) | $ (35,130) |
Other comprehensive gain: | ||||
Net unrealized gain on available-for-sale securities | 27 | 77 | 178 | 96 |
Total comprehensive loss | $ (20,266) | $ (18,772) | $ (67,954) | $ (35,034) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Public Offering | At-the-Market Offering | Common Stock | Common StockPublic Offering | Common StockAt-the-Market Offering | Additional Paid-In Capital | Additional Paid-In CapitalPublic Offering | Additional Paid-In CapitalAt-the-Market Offering | Accumulated Deficit | Accumulated Other Comprehensive (Loss) Income |
Balance at Dec. 31, 2017 | $ 150,307 | $ 4 | $ 300,906 | $ (150,333) | $ (270) | ||||||
Balance, shares at Dec. 31, 2017 | 35,759,000 | ||||||||||
Exercise of stock options | 247 | 247 | |||||||||
Exercise of stock options, shares | 125,000 | ||||||||||
Issuance of common stock per employee stock plan purchases | 370 | 370 | |||||||||
Issuance of common stock per employee stock plan purchases, shares | 118,000 | ||||||||||
Issuance of stock | $ 5,611 | $ 5,611 | |||||||||
Issuance of stock, shares | 1,202,000 | ||||||||||
Stock-based compensation expense | 5,617 | 5,617 | |||||||||
Cumulative-effect adjustment from adoption of accounting standard | ASC 606 | 8,792 | 8,792 | |||||||||
Net loss | (35,130) | (35,130) | |||||||||
Unrealized gain on available-for-sale securities | 96 | 96 | |||||||||
Balance at Sep. 30, 2018 | 135,910 | $ 4 | 312,751 | (176,671) | (174) | ||||||
Balance, shares at Sep. 30, 2018 | 37,204,000 | ||||||||||
Balance at Jun. 30, 2018 | 147,166 | $ 4 | 305,235 | (157,822) | (251) | ||||||
Balance, shares at Jun. 30, 2018 | 35,963,000 | ||||||||||
Exercise of stock options | 89 | 89 | |||||||||
Exercise of stock options, shares | 40,000 | ||||||||||
Issuance of stock | 5,611 | 5,611 | |||||||||
Issuance of stock, shares | 1,201,000 | ||||||||||
Stock-based compensation expense | 1,816 | 1,816 | |||||||||
Net loss | (18,849) | (18,849) | |||||||||
Unrealized gain on available-for-sale securities | 77 | 77 | |||||||||
Balance at Sep. 30, 2018 | 135,910 | $ 4 | 312,751 | (176,671) | (174) | ||||||
Balance, shares at Sep. 30, 2018 | 37,204,000 | ||||||||||
Balance at Dec. 31, 2018 | 126,714 | $ 4 | 322,993 | (196,170) | (113) | ||||||
Balance, shares at Dec. 31, 2018 | 38,834,000 | ||||||||||
Exercise of stock options | $ 229 | 229 | |||||||||
Exercise of stock options, shares | 82,000 | 82,000 | |||||||||
Issuance of common stock per employee stock plan purchases | $ 378 | 378 | |||||||||
Issuance of common stock per employee stock plan purchases, shares | 91,000 | ||||||||||
Issuance of stock | $ 53,761 | $ 2,523 | $ 1 | $ 53,760 | $ 2,523 | ||||||
Issuance of stock, shares | 14,375,000 | 393,000 | |||||||||
Stock-based compensation expense | 5,008 | 5,008 | |||||||||
Cumulative-effect adjustment from adoption of accounting standard | ASC 2018-07 | 71 | (71) | |||||||||
Net loss | (68,132) | (68,132) | |||||||||
Unrealized gain on available-for-sale securities | 178 | 178 | |||||||||
Balance at Sep. 30, 2019 | 120,659 | $ 5 | 384,962 | (264,373) | 65 | ||||||
Balance, shares at Sep. 30, 2019 | 53,775,000 | ||||||||||
Balance at Jun. 30, 2019 | 139,382 | $ 5 | 383,419 | (244,080) | 38 | ||||||
Balance, shares at Jun. 30, 2019 | 53,771,000 | ||||||||||
Exercise of stock options | 13 | 13 | |||||||||
Exercise of stock options, shares | 4,000 | ||||||||||
Stock-based compensation expense | 1,530 | 1,530 | |||||||||
Net loss | (20,293) | (20,293) | |||||||||
Unrealized gain on available-for-sale securities | 27 | 27 | |||||||||
Balance at Sep. 30, 2019 | $ 120,659 | $ 5 | $ 384,962 | $ (264,373) | $ 65 | ||||||
Balance, shares at Sep. 30, 2019 | 53,775,000 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash Flows Used in Operating Activities | ||
Net loss | $ (68,132,000) | $ (35,130,000) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 366,000 | 375,000 |
Amortization of premiums on investments | (730,000) | (124,000) |
Stock-based compensation | 5,008,000 | 5,617,000 |
Non-cash lease expense | 1,012,000 | |
Changes in operating assets and liabilities: | ||
Receivables from collaborations | 285,000 | (667,000) |
Prepaid expenses and other current assets | 435,000 | 1,179,000 |
Other assets | 208,000 | (617,000) |
Accounts payable | (534,000) | (563,000) |
Accrued liabilities | 2,813,000 | 1,164,000 |
Lease liability | (1,081,000) | |
Deferred revenue | 0 | (22,254,000) |
Deferred rent, non-current | 66,000 | |
Net cash used in operating activities | (60,350,000) | (50,954,000) |
Cash Flows (Used in) Provided by Investing Activities | ||
Purchases of investments | (127,980,000) | (47,292,000) |
Proceeds from sale and maturity of investments | 102,050,000 | 104,870,000 |
Purchases of property and equipment | (8,000) | (184,000) |
Net cash (used in) provided by investing activities | (25,938,000) | 57,394,000 |
Cash Flows Provided by Financing Activities | ||
Proceeds from issuance of common stock upon public offering, net | 53,760,000 | |
Proceeds from issuance of common stock through an at-the-market offering, net | 2,523,000 | 5,603,000 |
Proceeds from stock option exercises and employee stock plan purchases | 608,000 | 617,000 |
Net cash provided by financing activities | 56,891,000 | 6,220,000 |
Net (decrease) increase in cash, cash equivalents, and restricted cash | (29,397,000) | 12,660,000 |
Cash, cash equivalents, and restricted cash at beginning of period | 51,498,000 | 48,915,000 |
Cash, cash equivalents, and restricted cash at end of period | $ 22,101,000 | $ 61,575,000 |
Organization and Basis of Prese
Organization and Basis of Presentation | 9 Months Ended |
Sep. 30, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Basis of Presentation | 1. Organization and Basis of Presentation Organization Calithera Biosciences, Inc., or the Company, was incorporated in the State of Delaware on March 9, 2010. The Company is a clinical-stage biopharmaceutical company focused on discovering and developing small molecule drugs that target novel and critical metabolic pathways in tumor and cancer-fighting immune cells. The Company’s principal operations are based in South San Francisco, California, and it operates in one segment. Presentation The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Calithera Biosciences UK Limited and Calithera Biosciences Ireland Limited. All significant intercompany accounts and transactions have been eliminated from the condensed consolidated financial statements. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Unaudited Interim Financial Information The interim condensed consolidated balance sheet as of September 30, 2019, the statements of operations, comprehensive loss, and stockholders’ equity for the three and nine months ended September 30, 2019 and 2018, and the statements of cash flows for the nine months ended September 30, 2019 and 2018 are unaudited. The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the annual financial statements and reflect, in the opinion of management, all adjustments of a normal and recurring nature that are necessary for the fair presentation of the Company’s condensed consolidated financial statements included in this report. The financial data and the other information disclosed in these notes to the condensed consolidated financial statements related to the three and nine-month periods are also unaudited. The results of operations for the nine months ended September 30, 2019 are not necessarily indicative of the results to be expected for the year ending December 31, 2019 or for any other future annual or interim period. The balance sheet as of December 31, 2018 included herein was derived from the audited consolidated financial statements as of that date. These condensed consolidated financial statements should be read in conjunction with the Company’s audited financial statements included in the Company’s Form 10-K as filed with the Securities and Exchange Commission, or SEC. Use of Estimates The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or GAAP. The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, management evaluates its estimates, including those related to clinical trial accrued liabilities, revenue recognition, fair value of marketable securities, income taxes, and stock-based compensation. Management bases its estimates on historical experience and on various other market specific and relevant assumptions that management believes to be reasonable under the circumstances. Actual results could differ from those estimates. Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less at the date of purchase to be cash equivalents. Cash equivalents, which consist primarily of amounts invested in money market accounts, are stated at fair value. Investments All investments have been classified as “available-for-sale” and are carried at estimated fair value as determined based upon quoted market prices or pricing models for similar securities. Management determines the appropriate classification of its investments at the time of purchase and reevaluates such designation as of each balance sheet date. Unrealized gains and losses are excluded from earnings and are reported as a component of comprehensive loss. Realized gains and losses and declines in fair value judged to be other than temporary, if any, on available-for-sale securities are included in interest and other income, net. The cost of securities sold is based on the specific-identification method. Interest on marketable securities is included in interest and other income, net. Restricted Cash Restricted cash consists of money market funds held by the Company’s financial institution as collateral for the Company’s obligations under its facility lease for the Company’s corporate headquarters in South San Francisco, California. Concentrations of Credit Risk Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash, cash equivalents, investments and restricted cash. The Company invests in a variety of financial instruments and, by its policy, limits these financial instruments to high credit quality securities issued by the U.S. government, U.S. government-sponsored agencies and highly rated banks and corporations, subject to certain concentration limits. The Company’s cash, cash equivalents, investments and restricted cash are held by financial institutions in the United States that management believes are of high credit quality. Amounts on deposit may at times exceed federally insured limits. All of the Company’s collaboration revenue and the majority of the Company’s receivables from collaborations are derived from its collaboration and license agreement with Incyte Corporation, or Incyte, as described in Note 10, Collaboration and Licensing Agreements - Incyte Collaboration and License Agreement . Revenue Recognition The Company records revenue in accordance with Accounting Standards Codification, or ASC No. 2014-09, Revenue from Contracts with Customers (Topic 606), The Company has a collaboration and license agreement with Incyte, or the Incyte Collaboration Agreement, that is within the scope of ASC 606, under which it licenses certain rights to one of its product candidates to Incyte Corporation. The terms of this arrangement include payment to the Company of a non-refundable, upfront license fee, and potential development, regulatory and sales milestones, and sales royalties. Each of these payments results in collaboration revenues, except for revenues from royalties on net sales of licensed products, which would be classified as royalty revenues. In determining the appropriate amount of revenue to be recognized as it fulfills its obligations under its agreement, the Company performs the following steps: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. As part of the accounting for these arrangements, the Company must develop assumptions that require judgment to determine the stand-alone selling price for each performance obligation identified in the contract. Licenses of Intellectual Property: If the license to the Company’s intellectual property is determined to be distinct from the other performance obligations identified in the arrangement, the Company recognizes revenues from non-refundable, upfront fees allocated to the license when the license is transferred to the licensee and the licensee is able to use and benefit from the license. For licenses that are bundled with other promised goods or services, the Company utilizes judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress for purposes of recognizing revenue from non-refundable, upfront fees. The Company evaluates the measure of progress each reporting period and, if necessary, adjusts the measure of performance and related revenue recognition. Milestone Payments: At the inception of each arrangement that includes development, regulatory or commercial milestone payments, the Company evaluates whether the milestones are considered probable of being reached and estimates the amount to be included in the transaction price using the most likely amount method. If it is probable that a significant reversal of cumulative revenue would not occur, the associated milestone value is included in the transaction price. Milestone payments that are not within the control of the Company or the licensee, such as regulatory approvals, are not considered probable of being achieved until those approvals are received or the underlying activity has been completed . The transaction price is then allocated to each performance obligation on a relative stand-alone selling price basis, for which the Company recognizes revenue as or when the performance obligations under the contract are satisfied. At the end of each subsequent reporting period, the Company re-evaluates the probability of achievement of such development milestones and any related constraint, and if necessary, adjusts its estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect collaboration revenue in the period of adjustment. Royalties: For arrangements that include sales-based royalties, including milestone payments based on the level of sales, and the license is deemed to be the predominant item to which the royalties relate, the Company recognizes revenue at the later of (i) when the related sales occur, or (ii) when the performance obligation to which some or all of the royalty has been allocated has been satisfied (or partially satisfied). To date, the Company has not recognized any royalty revenue resulting from any of its licensing arrangements. Contract Balances Upfront payments and fees are recorded as deferred revenue upon receipt or when due, and may require deferral of revenue recognition to a future period until the Company performs its obligations under these arrangements. Amounts payable to the Company are recorded as accounts receivable when the Company’s right to consideration is unconditional. The Company does not assess whether a contract has a significant financing component if the expectation at contract inception is such that the period between payment by the licensees and the transfer of the promised goods or services to the licensees will be one year or less. The Company had no contract assets or liabilities as of September 30, 2019, and had no changes in contract assets and liabilities during the nine months ended September 30, 2019. Accrued Research and Development Costs The Company records accrued liabilities for estimated costs of research and development activities conducted by third-party service providers, which include the conduct of preclinical and clinical studies, and contract manufacturing activities. The Company records the estimated costs of research and development activities based upon the estimated amount of services provided but not yet invoiced, and includes these costs in accrued and other liabilities in the consolidated balance sheets and within research and development expense in the consolidated statements of operations. These costs are a significant component of the Company’s research and development expenses. The Company accrues for these costs based on factors such as estimates of the work completed and in accordance with agreements established with its third-party service providers under the service agreements. The Company makes significant judgments and estimates in determining the accrued liabilities balance in each reporting period. As actual costs become known, the Company adjusts its accrued liabilities. The Company has not experienced any material differences between accrued costs and actual costs incurred. However, the status and timing of actual services performed, number of patients enrolled, and the rate of patient enrollments may vary from the Company’s estimates, resulting in adjustments to expense in future periods. Changes in these estimates that result in material changes to the Company’s accruals could materially affect the Company’s results of operations. Leases Effective January 1, 2019, the Company adopted ASU No. 2016-02, Leases (Topic 842), ROU assets represent the Company’s right to use an underlying asset during the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that it will exercise that option. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company estimates an incremental borrowing rate based on the information available at commencement date, in determining the present value of lease payments. The operating lease ROU asset also includes lease incentives. Lease expense is recognized on a straight-line basis over the lease term. The Company elected to not separate lease components and non-lease components for its long-term facility lease. Variable lease payments include lease operating expenses. Net Loss Per Share Basic net loss per share is calculated by dividing the net loss by the weighted average number of shares of common stock outstanding during the period without consideration of common stock equivalents. Since the Company was in a loss position for all periods presented, basic net loss per share is the same as diluted net loss per share for all periods as the inclusion of all potential common shares outstanding would have been anti-dilutive. Recent Accounting Pronouncements Recently Adopted Accounting Guidance In 2016, the Financial Accounting Standards Board, or FASB, issued ASU 842, which is aimed at making leasing activities more transparent, and requires substantially all leases be recognized by lessees on their balance sheet as a right-of-use asset and corresponding lease liability. The ASU was previously required to be applied with a modified retrospective approach to each prior reporting period presented. Leases (Topic 842) In June 2018, the FASB issued ASU No. 2018-07, Compensation – Stock Compensation Topic 718): Improvements to Nonemployee Share-Based Payment Accounting, In August 2018, the SEC adopted amendments to certain disclosure requirements in Securities Act Release No. 33-10532, Disclosure Update and Simplification Accounting Guidance Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, . In May 2019, the FASB issued ASU No. 2019-05, Targeted Transition Relief , which provides transition guidance to entities that elect the fair value option for eligible instruments. In August 2018, the FASB issued ASU 2018-13 , Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement The adoption of this guidance is not expected to have a significant impact on the Company’s disclosures. In November 2018, the FASB issued ASU 2018-18— Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606, |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 3. Fair Value Measurements Fair value accounting is applied for all financial assets and liabilities that are recognized or disclosed at fair value in the condensed consolidated financial statements on a recurring basis (at least annually). Financial instruments include cash and cash equivalents, investments, receivables from collaborations, accounts payable, accrued liabilities and the current portion of deferred revenue that approximate fair value due to their relatively short maturities. Assets and liabilities recorded at fair value on a recurring basis in the balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair values. Fair value is defined as the exchange price that would be received for an asset or an exit price that would be paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The authoritative guidance on fair value measurements establishes a three tier fair value hierarchy for disclosure of fair value measurements as follows: Level 1 —Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date; Level 2 —Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities; and Level 3 —Unobservable inputs that are significant to the measurement of the fair value of the assets or liabilities that are supported by little or no market data. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Where quoted prices are available in an active market, securities are classified as Level 1. The Company classifies money market funds as Level 1. When quoted market prices are not available for the specific security, then the Company estimates fair value by using quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs obtained from various third party data providers, including but not limited to, benchmark yields, interest rate curves, reported trades, broker/dealer quotes and market reference data. The Company classifies its corporate notes and U.S. government agency securities as Level 2. Level 2 inputs for the valuations are limited to quoted prices for similar assets or liabilities in active markets and inputs other than quoted prices that are observable for the asset or liability. There were no transfers between Level 1 and Level 2 during the periods presented. The following table sets forth the fair value of our financial assets and liabilities, allocated into Level 1, Level 2 and Level 3, that were measured on a recurring basis (in thousands): September 30, 2019 Level 1 Level 2 Level 3 Total Financial Assets: Money market funds $ 12,782 $ — $ — $ 12,782 Corporate notes and commercial paper — 53,508 — 53,508 U.S. treasury securities — 61,203 — 61,203 U.S. government agency securities — 5,810 — 5,810 Total financial assets $ 12,782 $ 120,521 $ — $ 133,303 December 31, 2018 Level 1 Level 2 Level 3 Total Financial Assets: Money market funds $ 14,077 $ — $ — $ 14,077 Corporate notes and commercial paper — 73,733 — 73,733 U.S. treasury securities — 20,334 — 20,334 U.S. government agency securities — 28,072 — 28,072 Total financial assets $ 14,077 $ 122,139 $ — $ 136,216 |
Financial Instruments
Financial Instruments | 9 Months Ended |
Sep. 30, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Financial Instruments | 4. Financial Instruments Cash equivalents and investments, all of which are classified as available-for-sale securities and restricted cash, consisted of the following (in thousands): September 30, 2019 December 31, 2018 Cost Unrealized Gain Unrealized (Loss) Estimated Fair Value Cost Unrealized Gain Unrealized (Loss) Estimated Fair Value Money market funds $ 12,782 $ — $ — $ 12,782 $ 14,077 $ — $ — $ 14,077 Corporate notes and commercial paper 53,481 29 (2 ) 53,508 73,769 — (36 ) 73,733 U.S. treasury securities 61,166 37 — 61,203 20,334 4 (4 ) 20,334 U.S. government agency securities 5,809 1 — 5,810 28,149 — (77 ) 28,072 $ 133,238 $ 67 $ (2 ) $ 133,303 $ 136,329 $ 4 $ (117 ) $ 136,216 Classified as: Cash equivalents $ 20,930 $ 50,681 Short-term investments 111,933 85,095 Restricted cash 440 440 Total cash equivalents, restricted cash and investments $ 133,303 $ 136,216 At September 30, 2019, the remaining contractual maturities of available-for-sale securities were less than one year. There have been no significant realized gains or losses on available-for-sale securities for the periods presented. As of September 30, 2019, unrealized losses on cash equivalents and investments were $2,000 and the losses were deemed to be temporary. The gross unrealized loss that had been in a continuous loss position for 12 months or longer was $0 and $59,000 as of September 30, 2019, and December 31, 2018, respectively. As of September 30, 2019, the Company had a total of $134.0 million in cash, cash equivalents, restricted cash and short-term investments, which includes $0.7 million in cash and $133.3 million in cash equivalents, restricted cash and investments. |
Accrued and Other Liabilities
Accrued and Other Liabilities | 9 Months Ended |
Sep. 30, 2019 | |
Payables And Accruals [Abstract] | |
Accrued and Other Liabilities | 5. Accrued and Other Liabilities Accrued and other liabilities consist of the following (in thousands): September 30, 2019 December 31, 2018 Accrued clinical and manufacturing expenses $ 8,692 $ 6,316 Accrued payroll and related expenses 4,390 3,529 Collaboration reimbursement advances 1,787 2,467 Current portion of lease liability 1,429 — Other 1,494 1,322 Total accrued and other liabilities $ 17,792 $ 13,634 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | 6. Leases On January 1, 2019, the Company adopted ASU 842, which requires leases with a duration greater than twelve months to be recognized on the balance sheet. We adopted the standard using the modified retrospective approach with an effective date as of the beginning the Company’s fiscal year, January 1, 2019. Prior period financial information was not recast under the new standard, and therefore, those amounts are not presented below. The Company elected the package of transition provisions available for expired or existing contracts, which allowed it to carryforward its historical assessments of 1) whether contracts are or contain leases, 2) lease classification and 3) initial direct costs. The Company also elected the hindsight practical expedient, and elected to not separate lease and non-lease components. The Company has a non-cancelable facility lease agreement, or the Lease, for office and laboratory facilities in South San Francisco, California, with a remaining lease term of 4.34 years, through January 2024, and a two-year renewal option prior to expiration. The renewal option to extend the Lease was not considered in the determination of the right-of-use asset or the lease liability for the Lease as the Company did not consider it reasonably certain that it would exercise any such option. The Lease provides that the Company is obligated to pay certain variable costs, including taxes and operating expenses. The Lease is classified as an operating lease. In addition, the Company has a non-cancelable sublease agreement for a portion of its facilities through February 2020. The sublease agreement provides that the subtenant is obligated to pay its share of the variable costs under the Lease. The Company has measured the present value of its lease liability using an estimated incremental borrowing rate of 9%. The components of net operating lease costs included in the condensed consolidated statement of operations for the three and nine months ended September 30, 2019, were as follows (in thousands): Lease Costs for the Three Months Ended September 30, 2019 Straight-line rent expense related to facility operating lease $ 544 Variable rent expense related to operating lease 347 Sublease income (280 ) Variable sublease income (133 ) Net operating lease costs $ 478 Lease Costs for the Nine Months Ended September 30, 2019 Straight-line rent expense related to facility operating lease $ 1,633 Variable rent expense related to operating lease 979 Sublease income (835 ) Variable sublease income (376 ) Net operating lease costs $ 1,401 Cash paid for amounts included in the measurement of the lease liabilities for the three and nine months ended September 30, 2019, was $0.6 million and $1.7 million, respectively, and was included in net cash used in operating activities in the Company’s condensed consolidated statements of cash flows. Supplemental balance sheet information related to the Company’s operating lease as of September 30, 2019, was as follows (in thousands): Classification Assets: Operating lease right-of-use asset $ 7,614 Current Liabilities: Current portion included in accrued and other liabilities $ 1,429 Noncurrent Liabilities: Noncurrent operating lease liability $ 7,155 The maturities of the Company’s lease liability as of September 30, 2019, was as follows (in thousands): Year ending December 31: 2019 (excluding the nine months ended September 30, 2019) $ 383 2020 2,342 2021 2,413 2022 2,485 2023 2,560 2024 219 Total lease payments 10,402 Less: interest (1,818 ) Present value of lease liability $ 8,584 |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | 7. Stockholders’ Equity Public Offering In June 2019, the Company entered into an underwriting agreement with SVB Leerink LLC, Wells Fargo Securities, LLC, and William Blair & Company, LLC (collectively, the Underwriters), pursuant to which the Company issued and sold 14,375,000 shares of common stock, including 1,875,000 shares sold pursuant to the Underwriters’ exercise in full of their option to purchase additional shares. The price to the public in the offering was $4.00 per share, and the Underwriters purchased the shares from the Company at a price of $3.76 per share. The net proceeds to the Company from this public offering were approximately $53.8 million, after deducting underwriting discounts and commissions and other offering expenses. At-the-Market Offering In August 2017, the Company entered into a sales agreement with Cowen and Company LLC, or Cowen, as sales agent and underwriter, pursuant to which the Company could issue and sell shares of its common stock with an aggregate maximum offering price of $50.0 million under an at-the-market offering program, or ATM program. The Company will pay Cowen up to 3% of gross proceeds for any common stock sold through the sales agreement. During the nine months ended September 30, 2019, the Company sold an aggregate of 392,904 shares at an average price of approximately $6.64 per share for gross proceeds of $2.6 million, resulting in net proceeds of $2.5 million after underwriting fees and offering expenses. As of September 30, 2019, $31.6 million of common stock remained available for sale under the ATM program. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 8. Stock-Based Compensation A summary of stock option activity was as follows (in thousands, except weighted-average exercise price and contractual term amounts): Options Outstanding Number of Shares Underlying Outstanding Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Aggregate Value Intrinsic Outstanding — December 31, 2018 4,669 $ 7.86 Options granted 2,139 $ 4.74 Options exercised (82 ) $ 2.81 Options cancelled (70 ) $ 9.23 Outstanding — September 30, 2019 6,656 $ 6.90 7.35 $ 177 Exercisable — September 30, 2019 3,450 $ 7.90 5.95 $ 177 Total stock-based compensation expense related to the Company’s 2010 Equity Incentive Plan, 2014 Equity Incentive Plan and the 2014 Employee Stock Purchase Plan was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Research and development $ 832 $ 1,013 $ 2,718 $ 3,021 General and administrative 698 803 2,290 2,596 Total stock-based compensation $ 1,530 $ 1,816 $ 5,008 $ 5,617 |
Net Loss Per Share
Net Loss Per Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | 9. Net Loss per Share Since the Company was in a loss position for all periods presented, diluted net loss per share is the same as basic net loss per share for all periods as the inclusion of all potential common shares outstanding would have been anti-dilutive. Potentially dilutive securities that were not included in the diluted net loss per share calculations because they would be anti-dilutive were as follows (in thousands): September 30, 2019 2018 Options to purchase common stock 6,656 4,534 Employee stock plan purchases 74 116 Total 6,730 4,650 |
Collaboration and Licensing Agr
Collaboration and Licensing Agreements | 9 Months Ended |
Sep. 30, 2019 | |
Licensing Agreements [Abstract] | |
Collaboration and Licensing Agreements | 10. Collaboration and Licensing Agreements Incyte Collaboration and License Agreement On January 27, 2017, the Company entered into a collaboration and license agreement with Incyte, or the Incyte Collaboration Agreement. Under the terms of the Incyte Collaboration Agreement, the Company granted Incyte an exclusive, worldwide license to develop and commercialize its small molecule arginase inhibitors for hematology and oncology indications. The parties are collaborating on and co-funding the development of the licensed products, with Incyte bearing 70% and the Company bearing 30% of global development costs. The parties will share profits and losses in the United States, with 60% to Incyte and 40% to the Company. The Company will have the right to co-detail the licensed products in the United States, and Incyte will pay the Company tiered royalties ranging from the low to mid-double digits on net sales of licensed products outside the United States. The Company may opt out of its co-funding obligation, in which case the United States profit sharing will no longer be in effect, and Incyte will pay the Company tiered royalties ranging from the low to mid-double digits on net sales of licensed products both in the United States and outside the United States, and additional royalties to reimburse the Company for previously incurred development costs. Under the Incyte Collaboration Agreement, the Company received an upfront payment of $45.0 million in February 2017. In March 2017, the Company achieved a development milestone of $12.0 million, for which the Company received payment in May of 2017. The Company is also eligible to receive up to an additional $418.0 million in potential development, regulatory and sales milestones. The Incyte Collaboration Agreement also provides that the Company may choose to opt out of its co-funding obligations at any time. In this scenario, the potential development, regulatory and commercialization milestones from Incyte will be up to an additional $738.0 million. The Company would no longer be eligible to receive future United States profits and losses but would be eligible to receive tiered royalty payments on future global sales, including United States sales. In addition, if the Company opts out, the Company will receive an incremental 3% royalty on annual net sales in the United States of such licensed product until such incremental royalty equals 120% of previous development expenditures incurred by the Company. The Incyte Collaboration Agreement is considered to be under the scope of FASB Topic 808, Collaborative Arrangements The performance obligations under the Incyte Collaboration Agreement consist of intellectual property licenses and the performance of certain manufacturing and manufacturing technology transfer services. associated manufacturing and technology transfer services Subsequent to the adoption of ASC 606 on January 1, 2018, the Company determined the transaction price to be $57.0 million, representing the $45.0 million upfront payment and the $12.0 million developmental milestone payment from Incyte that was earned in March 2017. The $57.0 million transaction price was recognized over the performance period, based on the measure of progress toward completion for the combined performance obligation. The measure of progress towards completion was based on the effort of certain employees within the Company who dedicated time to complete the manufacturing services and technology transfer to Incyte. As of June 30, 2018, the manufacturing services and technology transfer to Incyte was completed. For the three and nine months ended September 30, 2018, the Company recognized revenue from its collaboration with Incyte totaling $0 and $22.3 million, respectively, related to the completion of the combined performance obligation. No revenue was recognized during the three and nine months ended September 30, 2019, related to the Incyte Collaboration Agreement. Net costs associated with co-development activities performed under the agreement are included in research and development expenses in the accompanying unaudited condensed consolidated statements of operations, with any reimbursement of costs by Incyte reflected as a reduction of such expenses. For the three and nine months ended September 30, 2019, net costs reimbursable by Incyte were $0.1 million and $0.6 million, respectively. For the three and nine months ended September 30, 2018, net costs reimbursable by Incyte were $0.6 million and $3.2 million, respectively. As of September 30, 2019, and December 31, 2018, the receivable due from Incyte was $1.7 million and $2.0 million, respectively. Bristol-Myers Squibb and Pfizer Collaboration Agreements In December 2016, the Company entered into a clinical trial collaboration and supply agreement with Bristol-Myers Squibb, or BMS, to evaluate BMS’s PD-1 inhibitor nivolumab (OPDIVO®) in combination with telaglenastat. In November 2017, the agreement was expanded such that certain development costs would be shared. In July 2019, with the enrollment on the trial complete, the collaboration with Bristol-Myers was discontinued. In October 2018, the Company entered into a clinical trial collaboration and supply agreement with Pfizer to evaluate Pfizer’s PARP inhibitor talazoparib (Talzenna) and CDK4/6 inhibitor palbociclib (Ibrance), each in combination with telaglenastat. Under the terms of the clinical collaborations, BMS and Pfizer each provide reimbursement of certain development costs. Costs associated with development activities performed under the clinical collaborations are included in research and development expenses in the accompanying consolidated statements of operations, with any reimbursements of costs reflected as a reduction of such expenses. For the three and nine months ended September 30, 2019, and September 2018, net costs reimbursed and reimbursable by BMS and Pfizer were not material to the condensed consolidated financial statements. Symbioscience License Agreement In December 2014, the Company entered into an exclusive license agreement with Mars, Inc., by and through its Mars Symbioscience division, or Symbioscience, under which the Company has been granted the exclusive, worldwide license to develop and commercialize Symbioscience’s portfolio of arginase inhibitors for use in human healthcare, or the Symbioscience License Agreement. There were no expenses related to its licensing arrangement with Mars Symbioscience recorded in the three and nine months ended September 30, 2019. The Company may make future payments of up to $23.6 million contingent upon attainment of various development and regulatory milestones and $95.0 million contingent upon attainment of various sales milestones. Additionally, the Company will pay royalties on sales of the licensed product, if such product sales are ever achieved. If the Company develops additional licensed products, after achieving regulatory approval of the first licensed product, the Company would owe additional regulatory milestone payments and additional royalty payments based on sales of such additional licensed products. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Unaudited Interim Financial Information | Unaudited Interim Financial Information The interim condensed consolidated balance sheet as of September 30, 2019, the statements of operations, comprehensive loss, and stockholders’ equity for the three and nine months ended September 30, 2019 and 2018, and the statements of cash flows for the nine months ended September 30, 2019 and 2018 are unaudited. The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the annual financial statements and reflect, in the opinion of management, all adjustments of a normal and recurring nature that are necessary for the fair presentation of the Company’s condensed consolidated financial statements included in this report. The financial data and the other information disclosed in these notes to the condensed consolidated financial statements related to the three and nine-month periods are also unaudited. The results of operations for the nine months ended September 30, 2019 are not necessarily indicative of the results to be expected for the year ending December 31, 2019 or for any other future annual or interim period. The balance sheet as of December 31, 2018 included herein was derived from the audited consolidated financial statements as of that date. These condensed consolidated financial statements should be read in conjunction with the Company’s audited financial statements included in the Company’s Form 10-K as filed with the Securities and Exchange Commission, or SEC. |
Use of Estimates | Use of Estimates The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or GAAP. The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, management evaluates its estimates, including those related to clinical trial accrued liabilities, revenue recognition, fair value of marketable securities, income taxes, and stock-based compensation. Management bases its estimates on historical experience and on various other market specific and relevant assumptions that management believes to be reasonable under the circumstances. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less at the date of purchase to be cash equivalents. Cash equivalents, which consist primarily of amounts invested in money market accounts, are stated at fair value. |
Investments | Investments All investments have been classified as “available-for-sale” and are carried at estimated fair value as determined based upon quoted market prices or pricing models for similar securities. Management determines the appropriate classification of its investments at the time of purchase and reevaluates such designation as of each balance sheet date. Unrealized gains and losses are excluded from earnings and are reported as a component of comprehensive loss. Realized gains and losses and declines in fair value judged to be other than temporary, if any, on available-for-sale securities are included in interest and other income, net. The cost of securities sold is based on the specific-identification method. Interest on marketable securities is included in interest and other income, net. |
Restricted Cash | Restricted Cash Restricted cash consists of money market funds held by the Company’s financial institution as collateral for the Company’s obligations under its facility lease for the Company’s corporate headquarters in South San Francisco, California. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash, cash equivalents, investments and restricted cash. The Company invests in a variety of financial instruments and, by its policy, limits these financial instruments to high credit quality securities issued by the U.S. government, U.S. government-sponsored agencies and highly rated banks and corporations, subject to certain concentration limits. The Company’s cash, cash equivalents, investments and restricted cash are held by financial institutions in the United States that management believes are of high credit quality. Amounts on deposit may at times exceed federally insured limits. All of the Company’s collaboration revenue and the majority of the Company’s receivables from collaborations are derived from its collaboration and license agreement with Incyte Corporation, or Incyte, as described in Note 10, Collaboration and Licensing Agreements - Incyte Collaboration and License Agreement . |
Revenue Recognition | Revenue Recognition The Company records revenue in accordance with Accounting Standards Codification, or ASC No. 2014-09, Revenue from Contracts with Customers (Topic 606), The Company has a collaboration and license agreement with Incyte, or the Incyte Collaboration Agreement, that is within the scope of ASC 606, under which it licenses certain rights to one of its product candidates to Incyte Corporation. The terms of this arrangement include payment to the Company of a non-refundable, upfront license fee, and potential development, regulatory and sales milestones, and sales royalties. Each of these payments results in collaboration revenues, except for revenues from royalties on net sales of licensed products, which would be classified as royalty revenues. In determining the appropriate amount of revenue to be recognized as it fulfills its obligations under its agreement, the Company performs the following steps: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. As part of the accounting for these arrangements, the Company must develop assumptions that require judgment to determine the stand-alone selling price for each performance obligation identified in the contract. Licenses of Intellectual Property: If the license to the Company’s intellectual property is determined to be distinct from the other performance obligations identified in the arrangement, the Company recognizes revenues from non-refundable, upfront fees allocated to the license when the license is transferred to the licensee and the licensee is able to use and benefit from the license. For licenses that are bundled with other promised goods or services, the Company utilizes judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress for purposes of recognizing revenue from non-refundable, upfront fees. The Company evaluates the measure of progress each reporting period and, if necessary, adjusts the measure of performance and related revenue recognition. Milestone Payments: At the inception of each arrangement that includes development, regulatory or commercial milestone payments, the Company evaluates whether the milestones are considered probable of being reached and estimates the amount to be included in the transaction price using the most likely amount method. If it is probable that a significant reversal of cumulative revenue would not occur, the associated milestone value is included in the transaction price. Milestone payments that are not within the control of the Company or the licensee, such as regulatory approvals, are not considered probable of being achieved until those approvals are received or the underlying activity has been completed . The transaction price is then allocated to each performance obligation on a relative stand-alone selling price basis, for which the Company recognizes revenue as or when the performance obligations under the contract are satisfied. At the end of each subsequent reporting period, the Company re-evaluates the probability of achievement of such development milestones and any related constraint, and if necessary, adjusts its estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect collaboration revenue in the period of adjustment. Royalties: For arrangements that include sales-based royalties, including milestone payments based on the level of sales, and the license is deemed to be the predominant item to which the royalties relate, the Company recognizes revenue at the later of (i) when the related sales occur, or (ii) when the performance obligation to which some or all of the royalty has been allocated has been satisfied (or partially satisfied). To date, the Company has not recognized any royalty revenue resulting from any of its licensing arrangements. Contract Balances Upfront payments and fees are recorded as deferred revenue upon receipt or when due, and may require deferral of revenue recognition to a future period until the Company performs its obligations under these arrangements. Amounts payable to the Company are recorded as accounts receivable when the Company’s right to consideration is unconditional. The Company does not assess whether a contract has a significant financing component if the expectation at contract inception is such that the period between payment by the licensees and the transfer of the promised goods or services to the licensees will be one year or less. The Company had no contract assets or liabilities as of September 30, 2019, and had no changes in contract assets and liabilities during the nine months ended September 30, 2019. |
Accrued Research and Development Costs | Accrued Research and Development Costs The Company records accrued liabilities for estimated costs of research and development activities conducted by third-party service providers, which include the conduct of preclinical and clinical studies, and contract manufacturing activities. The Company records the estimated costs of research and development activities based upon the estimated amount of services provided but not yet invoiced, and includes these costs in accrued and other liabilities in the consolidated balance sheets and within research and development expense in the consolidated statements of operations. These costs are a significant component of the Company’s research and development expenses. The Company accrues for these costs based on factors such as estimates of the work completed and in accordance with agreements established with its third-party service providers under the service agreements. The Company makes significant judgments and estimates in determining the accrued liabilities balance in each reporting period. As actual costs become known, the Company adjusts its accrued liabilities. The Company has not experienced any material differences between accrued costs and actual costs incurred. However, the status and timing of actual services performed, number of patients enrolled, and the rate of patient enrollments may vary from the Company’s estimates, resulting in adjustments to expense in future periods. Changes in these estimates that result in material changes to the Company’s accruals could materially affect the Company’s results of operations. |
Leases | Leases Effective January 1, 2019, the Company adopted ASU No. 2016-02, Leases (Topic 842), ROU assets represent the Company’s right to use an underlying asset during the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that it will exercise that option. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company estimates an incremental borrowing rate based on the information available at commencement date, in determining the present value of lease payments. The operating lease ROU asset also includes lease incentives. Lease expense is recognized on a straight-line basis over the lease term. The Company elected to not separate lease components and non-lease components for its long-term facility lease. Variable lease payments include lease operating expenses. |
Net Loss Per Share | Net Loss Per Share Basic net loss per share is calculated by dividing the net loss by the weighted average number of shares of common stock outstanding during the period without consideration of common stock equivalents. Since the Company was in a loss position for all periods presented, basic net loss per share is the same as diluted net loss per share for all periods as the inclusion of all potential common shares outstanding would have been anti-dilutive. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Accounting Guidance In 2016, the Financial Accounting Standards Board, or FASB, issued ASU 842, which is aimed at making leasing activities more transparent, and requires substantially all leases be recognized by lessees on their balance sheet as a right-of-use asset and corresponding lease liability. The ASU was previously required to be applied with a modified retrospective approach to each prior reporting period presented. Leases (Topic 842) In June 2018, the FASB issued ASU No. 2018-07, Compensation – Stock Compensation Topic 718): Improvements to Nonemployee Share-Based Payment Accounting, In August 2018, the SEC adopted amendments to certain disclosure requirements in Securities Act Release No. 33-10532, Disclosure Update and Simplification Accounting Guidance Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, . In May 2019, the FASB issued ASU No. 2019-05, Targeted Transition Relief , which provides transition guidance to entities that elect the fair value option for eligible instruments. In August 2018, the FASB issued ASU 2018-13 , Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement The adoption of this guidance is not expected to have a significant impact on the Company’s disclosures. In November 2018, the FASB issued ASU 2018-18— Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606, |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets and Liabilities | The following table sets forth the fair value of our financial assets and liabilities, allocated into Level 1, Level 2 and Level 3, that were measured on a recurring basis (in thousands): September 30, 2019 Level 1 Level 2 Level 3 Total Financial Assets: Money market funds $ 12,782 $ — $ — $ 12,782 Corporate notes and commercial paper — 53,508 — 53,508 U.S. treasury securities — 61,203 — 61,203 U.S. government agency securities — 5,810 — 5,810 Total financial assets $ 12,782 $ 120,521 $ — $ 133,303 December 31, 2018 Level 1 Level 2 Level 3 Total Financial Assets: Money market funds $ 14,077 $ — $ — $ 14,077 Corporate notes and commercial paper — 73,733 — 73,733 U.S. treasury securities — 20,334 — 20,334 U.S. government agency securities — 28,072 — 28,072 Total financial assets $ 14,077 $ 122,139 $ — $ 136,216 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Summary of Available-for-Sale Securities | Cash equivalents and investments, all of which are classified as available-for-sale securities and restricted cash, consisted of the following (in thousands): September 30, 2019 December 31, 2018 Cost Unrealized Gain Unrealized (Loss) Estimated Fair Value Cost Unrealized Gain Unrealized (Loss) Estimated Fair Value Money market funds $ 12,782 $ — $ — $ 12,782 $ 14,077 $ — $ — $ 14,077 Corporate notes and commercial paper 53,481 29 (2 ) 53,508 73,769 — (36 ) 73,733 U.S. treasury securities 61,166 37 — 61,203 20,334 4 (4 ) 20,334 U.S. government agency securities 5,809 1 — 5,810 28,149 — (77 ) 28,072 $ 133,238 $ 67 $ (2 ) $ 133,303 $ 136,329 $ 4 $ (117 ) $ 136,216 Classified as: Cash equivalents $ 20,930 $ 50,681 Short-term investments 111,933 85,095 Restricted cash 440 440 Total cash equivalents, restricted cash and investments $ 133,303 $ 136,216 |
Accrued and Other Liabilities (
Accrued and Other Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Payables And Accruals [Abstract] | |
Summary of Accrued and Other Liabilities | Accrued and other liabilities consist of the following (in thousands): September 30, 2019 December 31, 2018 Accrued clinical and manufacturing expenses $ 8,692 $ 6,316 Accrued payroll and related expenses 4,390 3,529 Collaboration reimbursement advances 1,787 2,467 Current portion of lease liability 1,429 — Other 1,494 1,322 Total accrued and other liabilities $ 17,792 $ 13,634 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Schedule of Components of Net Operating Lease Costs Included in Condensed Consolidated Statement of Operations | The components of net operating lease costs included in the condensed consolidated statement of operations for the three and nine months ended September 30, 2019, were as follows (in thousands): Lease Costs for the Three Months Ended September 30, 2019 Straight-line rent expense related to facility operating lease $ 544 Variable rent expense related to operating lease 347 Sublease income (280 ) Variable sublease income (133 ) Net operating lease costs $ 478 Lease Costs for the Nine Months Ended September 30, 2019 Straight-line rent expense related to facility operating lease $ 1,633 Variable rent expense related to operating lease 979 Sublease income (835 ) Variable sublease income (376 ) Net operating lease costs $ 1,401 |
Supplemental Balance Sheet Information Related to Company's Operating Lease | Supplemental balance sheet information related to the Company’s operating lease as of September 30, 2019, was as follows (in thousands): Classification Assets: Operating lease right-of-use asset $ 7,614 Current Liabilities: Current portion included in accrued and other liabilities $ 1,429 Noncurrent Liabilities: Noncurrent operating lease liability $ 7,155 |
Summary of Maturities of the Companys Lease Liability | The maturities of the Company’s lease liability as of September 30, 2019, was as follows (in thousands) Year ending December 31: 2019 (excluding the nine months ended September 30, 2019) $ 383 2020 2,342 2021 2,413 2022 2,485 2023 2,560 2024 219 Total lease payments 10,402 Less: interest (1,818 ) Present value of lease liability $ 8,584 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Stock Option Activity | A summary of stock option activity was as follows (in thousands, except weighted-average exercise price and contractual term amounts): Options Outstanding Number of Shares Underlying Outstanding Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Aggregate Value Intrinsic Outstanding — December 31, 2018 4,669 $ 7.86 Options granted 2,139 $ 4.74 Options exercised (82 ) $ 2.81 Options cancelled (70 ) $ 9.23 Outstanding — September 30, 2019 6,656 $ 6.90 7.35 $ 177 Exercisable — September 30, 2019 3,450 $ 7.90 5.95 $ 177 |
2010 Equity Incentive Plan, 2014 Equity Incentive Plan and 2014 Employee Stock Purchase Plan | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Stock Based Compensation Expense | Total stock-based compensation expense related to the Company’s 2010 Equity Incentive Plan, 2014 Equity Incentive Plan and the 2014 Employee Stock Purchase Plan was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Research and development $ 832 $ 1,013 $ 2,718 $ 3,021 General and administrative 698 803 2,290 2,596 Total stock-based compensation $ 1,530 $ 1,816 $ 5,008 $ 5,617 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Common Stock Excluded from Calculation of Diluted Net Loss Per Share | Potentially dilutive securities that were not included in the diluted net loss per share calculations because they would be anti-dilutive were as follows (in thousands): September 30, 2019 2018 Options to purchase common stock 6,656 4,534 Employee stock plan purchases 74 116 Total 6,730 4,650 |
Organization and Basis of Pre_2
Organization and Basis of Presentation - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2019Segment | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
State of incorporation | Delaware |
Date of incorporation | Mar. 9, 2010 |
Number of operating segments | 1 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) | Jan. 01, 2019USD ($) | Sep. 30, 2019USD ($)Product | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) |
Summary Of Significant Accounting Policies [Line Items] | ||||
Contract assets | $ 0 | |||
Contract liabilities | 0 | |||
Change in contract assets | 0 | |||
Change in contract liabilities | 0 | $ (22,254,000) | ||
Operating lease right-of-use asset | 7,614,000 | |||
Lease, liability | 8,584,000 | |||
Deferred rent | $ 1,130,000 | |||
ASC 606 | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Cumulative-effect adjustment from adoption of accounting standard | $ 8,792,000 | |||
ASU 842 | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Operating lease right-of-use asset | 8,600,000 | |||
Lease, liability | 9,700,000 | |||
Deferred rent | 1,200,000 | |||
Impact of accumulated deficit upon adoption | $ 0 | |||
ASC 2018-07 | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Cumulative-effect adjustment from adoption of accounting standard | $ 71,000 | |||
Incyte Corporation | ASC 606 | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Number of products covered under collaboration and licensing agreement | Product | 1 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) | Sep. 30, 2019USD ($) |
Fair Value Disclosures [Abstract] | |
Fair value, assets, level 1 to level 2 transfers, amount | $ 0 |
Fair value, assets, level 2 to level 1 transfers, amount | 0 |
Fair value, liabilities, level 1 to level 2 transfers, amount | 0 |
Fair value, assets, level 1 to level 2 transfers, amount | $ 0 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Financial Assets and Liabilities (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total financial assets | $ 133,303 | $ 136,216 |
Corporate notes and commercial paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total financial assets | 53,508 | 73,733 |
Money market funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total financial assets | 12,782 | 14,077 |
U.S. treasury securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total financial assets | 61,203 | 20,334 |
U.S. government agency securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total financial assets | 5,810 | 28,072 |
Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total financial assets | 12,782 | 14,077 |
Level 1 | Money market funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total financial assets | 12,782 | 14,077 |
Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total financial assets | 120,521 | 122,139 |
Level 2 | Corporate notes and commercial paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total financial assets | 53,508 | 73,733 |
Level 2 | U.S. treasury securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total financial assets | 61,203 | 20,334 |
Level 2 | U.S. government agency securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total financial assets | $ 5,810 | $ 28,072 |
Financial Instruments - Summary
Financial Instruments - Summary of Available-for-Sale Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Schedule Of Available For Sale Securities [Line Items] | ||
Cost | $ 133,238 | $ 136,329 |
Unrealized Gain | 67 | 4 |
Unrealized (Loss) | (2) | (117) |
Estimated Fair Value | 133,303 | 136,216 |
Money market funds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost | 12,782 | 14,077 |
Estimated Fair Value | 12,782 | 14,077 |
U.S. treasury securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost | 61,166 | 20,334 |
Unrealized Gain | 37 | 4 |
Unrealized (Loss) | (4) | |
Estimated Fair Value | 61,203 | 20,334 |
U.S. government agency securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost | 5,809 | 28,149 |
Unrealized Gain | 1 | |
Unrealized (Loss) | (77) | |
Estimated Fair Value | 5,810 | 28,072 |
Corporate notes and commercial paper | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost | 53,481 | 73,769 |
Unrealized Gain | 29 | |
Unrealized (Loss) | (2) | (36) |
Estimated Fair Value | 53,508 | 73,733 |
Cash Equivalents | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated Fair Value | 20,930 | 50,681 |
Short-term Investments | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated Fair Value | 111,933 | 85,095 |
Restricted Cash | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated Fair Value | $ 440 | $ 440 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Investments Debt And Equity Securities [Abstract] | ||
Remaining contractual maturities of available-for-sale-securities | less than one year | |
Realized gains (losses) on available-for-sale securities | $ 0 | |
Unrealized losses on cash equivalents and investments | 2,000 | |
Gross unrealized loss in continuous loss position for 12 months or longer | 0 | $ 59,000 |
Cash, cash equivalents, restricted cash and short term investments | 134,000,000 | |
Cash portion included in cash, cash equivalents, restricted cash and investments | 700,000 | |
Cash equivalents, restricted cash and investments | $ 133,300,000 |
Accrued and Other Liabilities -
Accrued and Other Liabilities - Summary of Accrued and Other Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Payables And Accruals [Abstract] | ||
Accrued clinical and manufacturing expenses | $ 8,692 | $ 6,316 |
Accrued payroll and related expenses | 4,390 | 3,529 |
Collaboration reimbursement advances | 1,787 | 2,467 |
Current portion of lease liability | 1,429 | |
Other | 1,494 | 1,322 |
Total accrued and other liabilities | $ 17,792 | $ 13,634 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | |
Leases [Abstract] | ||
Operating lease, description | The Company has a non-cancelable facility lease agreement, or the Lease, for office and laboratory facilities in South San Francisco, California, with a remaining lease term of 4.34 years, through January 2024, and a two-year renewal option prior to expiration. | |
Remaining lease term | 4 years 4 months 2 days | 4 years 4 months 2 days |
Operating lease, renewal term | 2 years | 2 years |
Sublease, description | Company has a non-cancelable sublease agreement for a portion of its facilities through February 2020. | |
Incremental borrowing rate | 9.00% | |
Cash paid for amounts included in the measurement of the lease liabilities | $ 0.6 | $ 1.7 |
Leases - Schedule of Components
Leases - Schedule of Components of Net Operating Lease Costs Included in Condensed Consolidated Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Lease Costs | ||
Straight-line rent expense related to facility operating lease | $ 544 | $ 1,633 |
Variable rent expense related to operating lease | 347 | 979 |
Sublease income | (280) | (835) |
Variable sublease income | (133) | (376) |
Net operating lease costs | $ 478 | $ 1,401 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information Related to Company's Operating Lease (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Assets | |
Operating lease right-of-use asset | $ 7,614 |
Current Liabilities: | |
Current portion included in accrued and other liabilities | $ 1,429 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiabilitiesAndOtherLiabilities |
Noncurrent Liabilities: | |
Noncurrent operating lease liability | $ 7,155 |
Leases - Summary of Maturities
Leases - Summary of Maturities of the Companys Lease Liability (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Operating Lease Liabilities Payments Due [Abstract] | |
2019 (excluding the nine months ended September 30, 2019) | $ 383 |
2020 | 2,342 |
2021 | 2,413 |
2022 | 2,485 |
2023 | 2,560 |
2024 | 219 |
Total lease payments | 10,402 |
Less: interest | (1,818) |
Present value of lease liability | $ 8,584 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Aug. 31, 2017 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Class Of Stock [Line Items] | |||||
Net proceeds from sale of common stock | $ 2,523,000 | $ 5,603,000 | |||
Common Stock | Underwriters | |||||
Class Of Stock [Line Items] | |||||
Common stock price per share | $ 4 | ||||
Underwriting Agreement | Underwriters | |||||
Class Of Stock [Line Items] | |||||
Net proceeds from sale of common stock | $ 53,800,000 | ||||
Underwriting Agreement | Common Stock | Underwriters | |||||
Class Of Stock [Line Items] | |||||
Issuance of stock, shares | 14,375,000,000 | ||||
Number of shares sold pursuant to the Underwriters' option to purchase additional shares | 1,875,000,000 | ||||
Common stock price per share | $ 3.76 | ||||
At-the-Market Offering | Cowen and Company LLC | |||||
Class Of Stock [Line Items] | |||||
Common stock value remained available for sale | $ 31,600,000 | ||||
At-the-Market Offering | Common Stock | |||||
Class Of Stock [Line Items] | |||||
Issuance of stock, shares | 1,201,000 | 393,000 | 1,202,000 | ||
At-the-Market Offering | Common Stock | Cowen and Company LLC | |||||
Class Of Stock [Line Items] | |||||
Issuance of stock, shares | 392,904 | ||||
Net proceeds from sale of common stock | $ 2,500,000 | ||||
Aggregate maximum offering price | $ 50,000,000 | ||||
Shares sold, average price per share | $ 6.64 | ||||
Gross proceeds from sale of common stock | $ 2,600,000 | ||||
At-the-Market Offering | Common Stock | Cowen and Company LLC | Maximum | |||||
Class Of Stock [Line Items] | |||||
Percentage of sales commission on gross proceeds for common stock sold through sales agreement | 3.00% |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2019 | |
Number of Shares Underlying Outstanding Options | |
Outstanding at Beginning balance | 4,669,000 |
Options granted | 2,139,000 |
Options exercised | (82,000) |
Options cancelled | (70,000) |
Outstanding at Ending balance | 6,656,000 |
Exercisable at End of Period | 3,450,000 |
Weighted-Average Exercise Price | |
Outstanding at Beginning balance | $ 7.86 |
Options granted | 4.74 |
Options exercised | 2.81 |
Options cancelled | 9.23 |
Outstanding at Ending balance | 6.90 |
Exercisable at End of Period | $ 7.90 |
Weighted Average Remaining Contractual Term (Years) | |
Outstanding at Ending balance | 7 years 4 months 6 days |
Exercisable at End of Period | 5 years 11 months 12 days |
Aggregate Value Intrinsic | |
Outstanding | $ 177 |
Exercisable at End of Period | $ 177 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Stock-based Compensation Expense (Details) - 2010 Equity Incentive Plan, 2014 Equity Incentive Plan and 2014 Employee Stock Purchase Plan - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation | $ 1,530 | $ 1,816 | $ 5,008 | $ 5,617 |
Research and Development | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation | 832 | 1,013 | 2,718 | 3,021 |
General and Administrative | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation | $ 698 | $ 803 | $ 2,290 | $ 2,596 |
Net Loss Per Share - Common Sto
Net Loss Per Share - Common Stock Excluded from Calculation of Diluted Net Loss Per Share (Details) - shares shares in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 6,730 | 4,650 |
Options to Purchase Common Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 6,656 | 4,534 |
Employee Stock Plan Purchases | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 74 | 116 |
Collaboration and Licensing A_2
Collaboration and Licensing Agreements - Additional Information (Details) - USD ($) | Jan. 27, 2017 | May 31, 2017 | Feb. 28, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Jan. 01, 2018 | Mar. 31, 2017 |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Receivables from collaborations | $ 1,712,000 | $ 1,712,000 | $ 1,997,000 | |||||||
Mars, Inc. | ||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Potential license agreement fee | 23,600,000 | |||||||||
Additional potential payments based on sale of first licensed product | 95,000,000 | |||||||||
License fee | 0 | 0 | ||||||||
Incyte Collaboration Agreement | ||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Percentage of sharing in global development cost | 30.00% | |||||||||
Future profits and losses share percentage | 40.00% | |||||||||
Upfront payment received | $ 45,000,000 | |||||||||
Development milestone achieved | $ 12,000,000 | |||||||||
Development milestone received | $ 12,000,000 | |||||||||
Additional potential development, regulatory and sales milestones receivable | 418,000,000 | 418,000,000 | ||||||||
Upfront consideration allocated to combined unit of accounting | 45,000,000 | |||||||||
Development milestone recognized | 12,000,000 | |||||||||
(Increase) decrease in research and development expenses | 100,000 | $ 600,000 | 600,000 | $ 3,200,000 | ||||||
Receivables from collaborations | 1,700,000 | 1,700,000 | $ 2,000,000 | |||||||
Incyte Collaboration Agreement | ASC 606 | ||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Collaboration agreement transaction price | $ 57,000,000 | |||||||||
Collaboration revenue recognized related to completion of combined performance obligation | $ 0 | $ 0 | $ 0 | $ 22,300,000 | ||||||
Incyte Collaboration Agreement | Opt Out of Co-Funding Obligations | ||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Additional potential development, regulatory and commercialization milestones receivable | $ 738,000,000 | |||||||||
Incremental royalty percentage on annual net sales | 3.00% | |||||||||
Maximum incremental royalty, percentage of previous development expenditure | 120.00% | |||||||||
Incyte Collaboration Agreement | Incyte | ||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Percentage of sharing in global development cost | 70.00% | |||||||||
Future profits and losses share percentage | 60.00% |