Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 31, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | ALLK | |
Entity Registrant Name | Allakos Inc. | |
Entity Central Index Key | 0001564824 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Common Stock, Shares Outstanding | 43,185,253 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-38582 | |
Entity Tax Identification Number | 454798831 | |
Entity Address, Address Line One | 975 Island Drive | |
Entity Address, Address Line Two | Suite 201 | |
Entity Address, City or Town | Redwood City | |
Entity Address, State or Province | California | |
Entity Address, Postal Zip Code | 94065 | |
City Area Code | 650 | |
Local Phone Number | 597-5002 |
BALANCE SHEETS (Unaudited)
BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 36,457 | $ 33,660 |
Investments in marketable securities | 116,614 | 145,246 |
Prepaid expenses and other current assets | 1,270 | 2,703 |
Total current assets | 154,341 | 181,609 |
Property and equipment, net | 8,734 | 8,848 |
Operating lease right-of-use assets | 5,908 | 0 |
Other long-term assets | 802 | 802 |
Total assets | 169,785 | 191,259 |
Current liabilities: | ||
Accounts payable | 2,966 | 2,092 |
Accrued expenses and other current liabilities | 6,343 | 3,164 |
Total current liabilities | 9,309 | 5,256 |
Other long-term liabilities | 8,326 | 2,009 |
Total liabilities | 17,635 | 7,265 |
Commitments and contingencies (Note 6) | ||
Stockholders' equity: | ||
Preferred stock, $0.001 par value per share; 20,000 shares authorized as of June 30, 2019 and December 31, 2018; no shares issued and outstanding as of June 30, 2019 and December 31, 2018 | 0 | 0 |
Common stock, $0.001 par value per share; 200,000 shares authorized as of June 30, 2019 and December 31, 2018; 43,184 and 42,117 shares issued and outstanding as of June 30, 2019 and December 31, 2018, respectively | 43 | 42 |
Additional paid-in capital | 295,130 | 288,079 |
Accumulated other comprehensive gain (loss) | 114 | (15) |
Accumulated deficit | (143,137) | (104,112) |
Total stockholders’ equity | 152,150 | 183,994 |
Total liabilities and stockholders’ equity | $ 169,785 | $ 191,259 |
BALANCE SHEETS (Unaudited) (Par
BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 43,184,000 | 42,117,000 |
Common stock, shares outstanding | 43,184,000 | 42,117,000 |
STATEMENTS OF OPERATIONS AND CO
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Operating expenses | ||||
Research and development | $ 14,111 | $ 7,149 | $ 29,209 | $ 13,550 |
General and administrative | 5,946 | 2,375 | 11,775 | 4,683 |
Total operating expenses | 20,057 | 9,524 | 40,984 | 18,233 |
Loss from operations | (20,057) | (9,524) | (40,984) | (18,233) |
Interest income, net | 971 | 292 | 2,001 | 516 |
Other income (expense), net | 14 | (145) | (42) | (145) |
Net loss | (19,072) | (9,377) | (39,025) | (17,862) |
Unrealized gain on marketable securities, net of tax | 84 | 3 | 129 | 3 |
Comprehensive loss | $ (18,988) | $ (9,374) | $ (38,896) | $ (17,859) |
Net loss per common share: | ||||
Basic and diluted | $ (0.44) | $ (4.17) | $ (0.91) | $ (8.36) |
Weighted-average number of common shares outstanding: | ||||
Basic and diluted | 43,115 | 2,248 | 42,868 | 2,137 |
STATEMENTS OF CONVERTIBLE PREFE
STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) (unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Gain (Loss) | Accumulated Deficit | Convertible Preferred Stock |
Balance, Shares at Dec. 31, 2017 | 2,114 | |||||
Balance at Dec. 31, 2017 | $ (58,768) | $ 3 | $ 1,803 | $ 0 | $ (60,574) | |
Temporary Equity, Balance, Shares at Dec. 31, 2017 | 30,971 | |||||
Temporary Equity, Balance at Dec. 31, 2017 | $ 142,969 | |||||
Stock-based compensation expense | 614 | 0 | 614 | 0 | 0 | 0 |
Vesting of restricted common stock | 6 | 0 | 6 | 0 | 0 | 0 |
Net loss | (8,485) | $ 0 | 0 | 0 | (8,485) | $ 0 |
Balance, Shares at Mar. 31, 2018 | 2,114 | |||||
Balance at Mar. 31, 2018 | (66,633) | $ 3 | 2,423 | 0 | (69,059) | |
Temporary Equity, Balance, Shares at Mar. 31, 2018 | 30,971 | |||||
Temporary Equity, Balance at Mar. 31, 2018 | $ 142,969 | |||||
Balance, Shares at Dec. 31, 2017 | 2,114 | |||||
Balance at Dec. 31, 2017 | (58,768) | $ 3 | 1,803 | 0 | (60,574) | |
Temporary Equity, Balance, Shares at Dec. 31, 2017 | 30,971 | |||||
Temporary Equity, Balance at Dec. 31, 2017 | $ 142,969 | |||||
Unrealized gain on marketable securities, net of tax | 3 | |||||
Net loss | (17,862) | |||||
Balance, Shares at Jun. 30, 2018 | 2,530 | |||||
Balance at Jun. 30, 2018 | (75,272) | $ 3 | 3,158 | 3 | (78,436) | |
Temporary Equity, Balance, Shares at Jun. 30, 2018 | 30,971 | |||||
Temporary Equity, Balance at Jun. 30, 2018 | $ 143,019 | |||||
Balance, Shares at Mar. 31, 2018 | 2,114 | |||||
Balance at Mar. 31, 2018 | (66,633) | $ 3 | 2,423 | 0 | (69,059) | |
Temporary Equity, Balance, Shares at Mar. 31, 2018 | 30,971 | |||||
Temporary Equity, Balance at Mar. 31, 2018 | $ 142,969 | |||||
Stock-based compensation expense | 438 | 0 | 438 | 0 | 0 | 0 |
Proceeds from repayment of recourse promissory note | 50 | |||||
Issuance of common stock upon exercise of stock options | 291 | $ 0 | 291 | 0 | 0 | 0 |
Issuance of common stock upon exercise of stock options, Shares | 416 | |||||
Vesting of restricted common stock | 6 | $ 0 | 6 | 0 | 0 | 0 |
Unrealized gain on marketable securities, net of tax | 3 | 0 | 0 | 3 | 0 | 0 |
Net loss | (9,377) | $ 0 | 0 | 0 | (9,377) | $ 0 |
Balance, Shares at Jun. 30, 2018 | 2,530 | |||||
Balance at Jun. 30, 2018 | (75,272) | $ 3 | 3,158 | 3 | (78,436) | |
Temporary Equity, Balance, Shares at Jun. 30, 2018 | 30,971 | |||||
Temporary Equity, Balance at Jun. 30, 2018 | $ 143,019 | |||||
Balance, Shares at Dec. 31, 2018 | 42,117 | |||||
Balance at Dec. 31, 2018 | 183,994 | $ 42 | 288,079 | (15) | (104,112) | |
Temporary Equity, Balance, Shares at Dec. 31, 2018 | 0 | |||||
Temporary Equity, Balance at Dec. 31, 2018 | $ 0 | |||||
Stock-based compensation expense | 2,834 | 0 | 2,834 | 0 | 0 | 0 |
Issuance of common stock upon exercise of stock options | 368 | $ 1 | 367 | 0 | 0 | 0 |
Issuance of common stock upon exercise of stock options, Shares | 968 | |||||
Issuance of common stock upon 2018 ESPP purchase | 595 | $ 0 | 595 | 0 | 0 | 0 |
Issuance of common stock upon 2018 ESPP purchase, Shares | 39 | |||||
Vesting of restricted common stock | 6 | $ 0 | 6 | 0 | 0 | 0 |
Unrealized gain on marketable securities, net of tax | 45 | 0 | 0 | 45 | 0 | 0 |
Net loss | (19,953) | $ 0 | 0 | 0 | (19,953) | $ 0 |
Balance, Shares at Mar. 31, 2019 | 43,124 | |||||
Balance at Mar. 31, 2019 | 167,889 | $ 43 | 291,881 | 30 | (124,065) | |
Temporary Equity, Balance, Shares at Mar. 31, 2019 | 0 | |||||
Temporary Equity, Balance at Mar. 31, 2019 | $ 0 | |||||
Balance, Shares at Dec. 31, 2018 | 42,117 | |||||
Balance at Dec. 31, 2018 | $ 183,994 | $ 42 | 288,079 | (15) | (104,112) | |
Temporary Equity, Balance, Shares at Dec. 31, 2018 | 0 | |||||
Temporary Equity, Balance at Dec. 31, 2018 | $ 0 | |||||
Issuance of common stock upon exercise of stock options, Shares | 1,029 | |||||
Unrealized gain on marketable securities, net of tax | $ 129 | |||||
Net loss | (39,025) | |||||
Balance, Shares at Jun. 30, 2019 | 43,184 | |||||
Balance at Jun. 30, 2019 | 152,150 | $ 43 | 295,130 | 114 | (143,137) | |
Temporary Equity, Balance, Shares at Jun. 30, 2019 | 0 | |||||
Temporary Equity, Balance at Jun. 30, 2019 | $ 0 | |||||
Balance, Shares at Mar. 31, 2019 | 43,124 | |||||
Balance at Mar. 31, 2019 | 167,889 | $ 43 | 291,881 | 30 | (124,065) | |
Temporary Equity, Balance, Shares at Mar. 31, 2019 | 0 | |||||
Temporary Equity, Balance at Mar. 31, 2019 | $ 0 | |||||
Stock-based compensation expense | 3,105 | 0 | 3,105 | 0 | 0 | 0 |
Issuance of common stock upon exercise of stock options | 138 | $ 0 | 138 | 0 | 0 | 0 |
Issuance of common stock upon exercise of stock options, Shares | 60 | |||||
Vesting of restricted common stock | 6 | $ 0 | 6 | 0 | 0 | 0 |
Unrealized gain on marketable securities, net of tax | 84 | 0 | 0 | 84 | 0 | 0 |
Net loss | (19,072) | $ 0 | 0 | 0 | (19,072) | $ 0 |
Balance, Shares at Jun. 30, 2019 | 43,184 | |||||
Balance at Jun. 30, 2019 | $ 152,150 | $ 43 | $ 295,130 | $ 114 | $ (143,137) | |
Temporary Equity, Balance, Shares at Jun. 30, 2019 | 0 | |||||
Temporary Equity, Balance at Jun. 30, 2019 | $ 0 |
STATEMENTS OF CASH FLOWS (unaud
STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities | ||
Net loss | $ (39,025) | $ (17,862) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 732 | 119 |
Accretion of tenant improvement allowance | 0 | (21) |
Stock-based compensation | 5,939 | 1,052 |
Net amortization of premiums and discounts on marketable securities | (1,330) | (89) |
Noncash lease expense | 142 | 0 |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other current assets | 1,508 | (2,051) |
Other long-term assets | 0 | (22) |
Accounts payable | 874 | (647) |
Accrued expenses and other current liabilities | 3,314 | 1,861 |
Other long-term liabilities | 144 | 211 |
Net cash used in operating activities | (27,702) | (17,449) |
Cash flows from investing activities | ||
Purchases of marketable securities | (115,984) | (44,746) |
Purchases of property and equipment | (618) | (1,650) |
Proceeds from maturities of marketable securities | 146,000 | 0 |
Net cash provided by (used in) investing activities | 29,398 | (46,396) |
Cash flows from financing activities | ||
Proceeds from issuance of common stock under the 2018 ESPP | 595 | 0 |
Proceeds from exercise of stock options, net of repurchases | 506 | 291 |
Proceeds from the repayment of recourse promissory note | 0 | 50 |
Payments for deferred financing costs | 0 | (1,606) |
Net cash provided by (used in) financing activities | 1,101 | (1,265) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 2,797 | (65,110) |
Cash, cash equivalents and restricted cash, beginning of period | 34,462 | 85,207 |
Cash, cash equivalents and restricted cash, end of period | 37,259 | 20,097 |
Noncash investing and financing items: | ||
Right-of-use assets obtained in exchange for lease obligations (1) | 6,050 | 0 |
Property and equipment purchased in accounts payable | 0 | 14 |
Lessor funded lease incentives included in property and equipment | 0 | 1,386 |
Deferred initial public offering costs in accounts payable and accrued expenses | 0 | 858 |
Vesting of restricted common stock subject to repurchase | $ 12 | $ 12 |
Organization and Business
Organization and Business | 6 Months Ended |
Jun. 30, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Business | 1. Organization and Business Allakos Inc. (“Allakos” or the “Company”) was incorporated in the state of Delaware in March 2012. Allakos is a clinical stage biopharmaceutical company focused on the development of AK002 for the treatment of eosinophil and mast cell related diseases. The Company’s primary activities to date have included establishing its facilities, recruiting personnel, conducting research and development of its product candidates and raising capital. The Company’s operations are located in Redwood City, California. Liquidity Matters Since inception, the Company has incurred net losses and negative cash flows from operations. During the six months ended June 30, 2019, the Company incurred a net loss of $39.0 million and used $27.7 million of cash in operations. At June 30, 2019, the Company had an accumulated deficit of $143.1 million and does not expect to experience positive cash flows from operating activities in the foreseeable future. The Company has financed its operations to date primarily through the sale of common stock and issuance of convertible preferred stock. Management expects to incur additional operating losses in the future as the Company continues to further develop, seek regulatory approval for and, if approved, commence commercialization of its product candidates. The Company had $153.1 million of cash, cash equivalents and marketable securities at June 30, 2019. Management believes that this amount is sufficient to fund the Company’s operations for at least the next 12 months from the issuance date of these financial statements. Initial Public Offering and Related Transactions On July 23, 2018, the Company completed an initial public offering (“IPO”), selling 8,203,332 shares of common stock at an offering price of $18.00 per share. Proceeds from the IPO, net of underwriting discounts and commissions, were $137.3 million. Concurrently with the IPO, the Company completed a private placement of 250,000 shares of common stock at the IPO offering price of $18.00 per share to an existing stockholder. Proceeds from this private placement were $4.5 million. In connection with the completion of the IPO on July 23, 2018, all then outstanding shares of convertible preferred stock were converted into 30,971,627 shares of common stock. Upon the completion of IPO, the Company’s certificate of incorporation was amended and restated. Under the amended and restated certificate of incorporation, the Company’s authorized capital stock consists of 200,000,000 shares of common stock with a par value $0.001 per share and 20,000,000 shares of convertible preferred stock with a par value $0.001 per share. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The unaudited interim financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts and disclosures reported in the financial statements and accompanying notes. The interim balance sheet as of June 30, 2019, the statements of operations and comprehensive loss, statements of convertible preferred stock and stockholders’ equity (deficit) and statements of cash flows for the six months ended June 30, 2019 and 2018 are unaudited. The unaudited interim financial statements have been prepared on the same basis as the audited 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 financial position as of June 30, 2019 and its results of operations and comprehensive loss for the three and six months ended June 30, 2019 and 2018 and its cash flows for the six months ended June 30, 2019 and 2018. Certain information and note disclosures normally included in annual audited financial statements prepared in accordance with U.S. GAAP have been omitted. The financial data and the other financial information disclosed in these notes to the interim financial statements are also unaudited. The results of operations for any interim period are not necessarily indicative of the results to be expected for the entire year or for any other future annual or interim period. The balance sheet as of December 31, 2018 included herein was derived from the audited financial statements as of that date. These interim financial statements should be read in conjunction with the Company’s audited financial statements included in the Company’s Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission (the “SEC”) on March 14, 2019. Use of Estimates Management uses significant judgment when making estimates related to common stock valuation and related stock-based compensation expense, accrued expenses related to clinical trials, calculation of right-of-use assets and lease liabilities, and deferred tax valuation allowances. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates under different assumptions or conditions, and those differences could be material to the financial position and results of operations. Concentration of Credit Risk and Other Risks and Uncertainties Financial instruments that potentially subject the Company to credit risk principally consist of cash, cash equivalents and marketable securities. These financial instruments are held in accounts at a single financial institution that management believes possesses high credit quality. Amounts on deposit with this financial institution have and will continue to exceed federally-insured limits. The Company has not experienced any losses on its cash deposits. Additionally, the Company’s investment policy limits its investments to certain types of securities issued by the U.S. government and its agencies. The Company is subject to a number of risks similar to that of other early-stage biopharmaceutical companies, including, but not limited to, the need to obtain adequate additional funding, possible failure of current or future clinical trials, its reliance on third-parties to conduct its clinical trials, the need to obtain regulatory and marketing approvals for its product candidates, competitive developments, the need to successfully commercialize and gain market acceptance of the Company’s product candidates, its right to develop and commercialize its product candidates pursuant to the terms and conditions of the licenses granted to the Company, protection of proprietary technology, the ability to make milestone, royalty or other payments due under licensing agreements, and the need to secure and maintain adequate manufacturing arrangements with third-parties. If the Company does not successfully commercialize or partner its product candidates, it will be unable to generate product revenue or achieve profitability. Cash, Cash Equivalents and Restricted Cash The Company considers all highly liquid investments with original maturities of three months or less from the date of purchase to be cash equivalents. Restricted cash as of June 30, 2019 represents $0.8 million in deposits restricted from withdrawal and held by a bank in the form of collateral for an irrevocable standby letter of credit held as security for the lease of the Company’s facility in Redwood City, California. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Company’s balance sheets and which, in aggregate, represent the amounts reported in the accompanying statements of cash flows (in thousands): June 30, December 31, 2019 2018 Cash and cash equivalents $ 36,457 $ 33,660 Restricted cash in other long-term assets, deposit for lease facility 802 802 Total cash, cash equivalents and restricted cash $ 37,259 $ 34,462 June 30, December 31, 2018 2017 Cash and cash equivalents $ 19,295 $ 85,207 Restricted cash in other long-term assets, deposit for lease facility 802 — Total cash, cash equivalents and restricted cash $ 20,097 $ 85,207 The tables above exclude the fair value of the Company’s investments in marketable securities that are considered available-for-sale. Marketable Securities The Company invests in marketable securities, primarily securities issued by the U.S. government and its agencies. The Company’s marketable securities are considered available-for-sale and are classified as current assets even when the stated maturities of the underlying securities exceed one year from the date of the current balance sheet being reported. This classification reflects management’s ability and intent to utilize proceeds from the sale of such investments to fund ongoing operations. Unrealized gains and losses are excluded from earnings and are reported as a component of accumulated comprehensive income (loss). The cost of securities sold is determined using the specific-identification method. Interest earned and adjustments for the amortization of premiums and discounts on investments are included in interest income, net, on the statements of operations and comprehensive loss. Realized gains and losses and declines in fair value judged to be other than temporary, if any, on investments in marketable securities are included in other income (expense), net, on the statements of operations and comprehensive loss. Leases Effective January 1, 2019, the Company accounts for its leases in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 842, “Leases” (“ASC 842”). Prior period amounts continue to be reported in accordance with the Company’s historic accounting under previous lease guidance. Additionally, the Company elected a number of optional practical expedients made available under the ASC 842 transition guidance. Such elections include (i) carrying forward the Company’s historical lease classifications, (ii) foregoing a re-evaluation of historical contracts to identify embedded leases, (iii) foregoing a re-assessment of initial direct costs related to leases that existed prior to adoption, (iv) combining lease and non-lease components, and (v) recognizing lease expense for all contracts with an initial term of 12 months or less within the statements of operations and comprehensive loss on a straight-line basis over the requisite lease term. The Company accounts for its leases by recording right-of-use assets and lease liabilities on the Balance Sheet. Right-of-use assets represent the Company’s right to use an underlying asset over the lease term and include any lease payments made prior to the lease commencement date and exclude lease incentives. Lease liabilities represent the present value of the total lease payments over the lease term, calculated using the Company’s incremental borrowing rate. In determining the Company’s incremental borrowing rate, consideration is given to the term of the lease and the Company’s credit risk. The Company’s recognizes options to extend or terminate a lease when it is reasonably certain that the Company will exercise any such options. Lease expense is recognized on a straight-line basis over the expected lease term. Research and Development Expense Research and development costs are expensed as incurred. Research and development costs include, among others, consulting costs, salaries, benefits, travel, stock-based compensation, laboratory supplies and other non-capital equipment utilized for in-house research, allocation of facilities and overhead costs and external costs paid to third-parties that conduct research and development activities on the Company’s behalf. Amounts incurred in connection with license agreements are also included in research and development expense. Advance payments for goods or services to be rendered in the future for use in research and development activities are deferred and included in prepaid expenses and other current assets. The deferred amounts are expensed as the related goods are delivered or the services are performed. Accrued Research and Development Costs Service agreements with contract research organizations (“CROs”) and contract development and manufacturing organizations (“CDMOs”) comprise a significant component of the Company’s research and development activities. External costs for CROs and CDMOs are recognized as the services are incurred. The Company accrues for expenses resulting from obligations under agreements with its third-parties for which the timing of payments does not match the periods over which the materials or services are provided to the Company. Accruals are recorded based on estimates of services received and efforts expended pursuant to agreements established with CROs, CDMOs and other outside service providers. These estimates are typically based on contracted amounts applied to the proportion of work performed and determined through analysis with internal personnel and external service providers as to the progress or stage of completion of the services. The Company makes judgements and estimates in determining the accrual balance in each reporting period. In the event advance payments are made to a CRO, CDMO or other outside service provider, the payments are recorded within prepaid expenses and other current assets and subsequently recognized as research and development expense when the associated services have been performed. As actual costs become known, the Company adjusts its liabilities and assets. Inputs, such as the extent of services received and the duration of services to be performed, may vary from the Company’s estimates, which will result in adjustments to research and development 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. The Company’s historical estimates have not been materially different from actual amounts recorded. Comprehensive Loss Comprehensive loss is defined as the change in stockholders’ equity (deficit) during a period from transactions and other events and circumstances from non-owner sources and consists primarily of unrealized gains and losses on the Company’s investments in marketable securities. Net Loss per Share The Company calculates basic net loss per share by dividing the net loss attributable to common stockholders by the weighted-average shares of common stock outstanding during the period. The Company calculates diluted net loss per share after giving consideration to all potentially dilutive securities outstanding during the period using the treasury-stock and if-converted methods, except where the effect of including such securities would be inception, the effect from potentially dilutive securities would have been anti-dilutive and therefore has been excluded from the calculation of diluted net loss per share. Basic and diluted net loss per share was calculated as follows (in thousands, except per share data): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Numerator: Net loss $ (19,072 ) $ (9,377 ) $ (39,025 ) $ (17,862 ) Denominator: Weighted-average shares of common stock outstanding, basic and diluted 43,115 2,248 42,868 2,137 Net loss per share, basic and diluted $ (0.44 ) $ (4.17 ) $ (0.91 ) $ (8.36 ) The following table sets forth the potentially dilutive securities that have been excluded from the calculation of diluted net loss per share due to their anti-dilutive effect for the periods indicated (in thousands): Three and Six Months Ended June 30, 2019 2018 Series A convertible preferred stock — 20,866 Series B convertible preferred stock — 10,105 Options to purchase common stock 6,976 6,529 Warrants to purchase common stock — 48 Unvested restricted common stock 19 76 Shares issuable under 2018 Employee Stock Purchase Plan 27 — Total 7,022 37,624 Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASC 842 which became effective for fiscal years beginning after December 15, 2018. ASC 842 requires an entity to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. The recognition, measurement and presentation of expenses will depend on the lease’s classification as a finance or operating lease. ASC 842 also requires certain quantitative and qualitative disclosures about leasing arrangements. The Company adopted ASC 842 using a modified retrospective approach effective January 1, 2019, recording a right-of-use asset of $6.1 million and a long-term lease liability of $8.2 million. Adoption of ASC 842 did not result in a cumulative effect adjustment to accumulated deficit. See Note 6 for further disclosure. In August 2018, the SEC adopted amendments to certain disclosure requirements in the Securities Act Release No. 33-10532, Disclosure Update and Simplification. Under the amendments, the Company must provide an analysis of changes in each caption of stockholders' equity (deficit) presented in the balance sheet in a note or separate statement. The Company adopted the amendments during the three months ended March 31, 2019. The adoption of the amendments did not have a material impact on the Company’s financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In August 2018, the FASB issued Accounting Standards Update (“ASU”) No. 2018-13, Fair Value Measurement In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (ASC Topic 326): Measurement of Credit Losses on Financial Instruments , as clarified in ASU No. 2019-04 and ASU No. 2019-05 . This guidance will require Companies to recognize an allowance for credit losses on available-for-sale debt securities rather than the current approach of recording a reduction to the carrying value of the asset. The ASU is effective for fiscal years beginning after December 15, 2019 and interim periods therein. Early adoption is permitted for annual periods beginning after December 15, 2018 and interim periods therein. The Company is currently evaluating the effects of this ASU on its financial statements and related disclosures and does not expect there to be a material impact. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 3. Fair Value Measurements The Company measures and reports certain financial instruments as assets and liabilities at fair value on a recurring basis. The Company’s financial assets measured at fair value on a recurring basis were as follows (in thousands): June 30, 2019 Level 1 Level 2 Level 3 Total Cash equivalents Money market funds $ 34,122 $ — $ — $ 34,122 Total cash equivalents $ 34,122 $ — $ — $ 34,122 Marketable securities U.S. treasuries $ 116,614 $ — $ — $ 116,614 Total marketable securities $ 116,614 $ — $ — $ 116,614 Total cash equivalents and marketable securities $ 150,736 $ — $ — $ 150,736 December 31, 2018 Level 1 Level 2 Level 3 Total Cash equivalents Money market funds $ 31,555 $ — $ — $ 31,555 Total cash equivalents $ 31,555 $ — $ — $ 31,555 Marketable securities U.S. treasuries $ 145,246 $ — $ — $ 145,246 Total marketable securities $ 145,246 $ — $ — $ 145,246 Total cash equivalents and marketable securities $ 176,801 $ — $ — $ 176,801 The Company evaluates transfers between levels at the end of each reporting period. There were no transfers of assets or liabilities between levels during the three and six months ended June 30, 2019 and 2018. |
Marketable Securities
Marketable Securities | 6 Months Ended |
Jun. 30, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Marketable Securities | 4. Marketable Securities All marketable securities were considered available-for-sale at June 30, 2019. The amortized cost, gross unrealized holding gains or losses, and fair value of the Company’s marketable securities by major security type at June 30, 2019 and December 31, 2018 are summarized in the table below (in thousands): June 30, 2019 Amortized Cost Basis Unrealized Gains Unrealized Losses Fair Value Marketable securities U.S. treasuries $ 116,500 $ 114 $ — $ 116,614 Total marketable securities $ 116,500 $ 114 $ — $ 116,614 December 31, 2018 Amortized Cost Basis Unrealized Gains Unrealized Losses Fair Value Marketable securities U.S. treasuries $ 145,261 $ — $ (15 ) $ 145,246 Total marketable securities $ 145,261 $ — $ (15 ) $ 145,246 The Company had no other-than-temporary impairments on its marketable securities during the three and six months ended June 30, 2019 and 2018. The Company has the intent and ability to hold all marketable securities until their maturities. |
Balance Sheet Components and Su
Balance Sheet Components and Supplemental Disclosures | 6 Months Ended |
Jun. 30, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components and Supplemental Disclosures | 5. Balance Sheet Components and Supplemental Disclosures Property and Equipment, Net Property and equipment, net, consisted of the following (in thousands): June 30, December 31, 2019 2018 Laboratory equipment $ 3,825 $ 3,272 Furniture and office equipment 1,695 1,666 Leasehold improvements 4,581 4,545 10,101 9,483 Less accumulated depreciation (1,367 ) (635 ) Property and equipment, net $ 8,734 $ 8,848 Depreciation and amortization expense for the three months ended June 30, 2019 and 2018 was $0.4 million and $0.1 million, respectively. Depreciation and amortization expense for the six months ended June 30, 2019 and 2018 was $0.7 million and $0.1 million, respectively. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following (in thousands): June 30, December 31, 2019 2018 Accrued outside professional services $ 3,236 $ 1,964 Accrued compensation and benefits 2,827 1,041 Lease liability, current 273 — Lease incentive obligation, current — 123 Other current liabilities 7 36 Total $ 6,343 $ 3,164 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 6. Commitments and Contingencies Lease Obligations As described in Note 2, the Company adopted ASC 842 effective January 1, 2019. Prior period amounts have not been adjusted and continue to be reported in accordance with the Company’s previous accounting method. The Company terminated its previous lease agreement for its San Carlos, California office during the year ended December 31, 2018 and as of June 30, 2019, the Company’s outstanding lease obligations primarily relate to leased office and laboratory space under a single noncancelable operating lease entered into during January 2018. The lease agreement includes a contractual lease term which commenced upon substantial completion and delivery of the premises in November 2018. The base term of the lease is 10.75 years and includes an option to extend for an additional term of 5 years. This option to extend the lease term has not been included in the Company’s calculations under ASC 842 as the exercise of the option is highly uncertain and therefore deemed not probable. The Company’s lease agreement included a $1.4 million tenant improvement allowance that has been applied to the total cost of tenant improvements made to the leased premises. Tenant improvement allowances received were recorded as leasehold improvements with an offsetting adjustment included in the Company’s calculation of its right-of-use asset under ASC 842. Leasehold improvements are depreciated over the term of the lease. The Company has performed an evaluation of its other contracts with vendors in accordance with ASC 842 and has determined that, except for the lease described above, none of its other contracts contain a lease. The balance sheet classification of the Company’s lease liabilities at June 30, 2019 was as follows (in thousands): Operating lease liabilities Current portion included in accrued expenses and other current liabilities $ 273 Non-current portion included in other long-term liabilities 8,326 Total operating lease liabilities $ 8,599 The components of lease costs, which were included in operating expenses in the Company’s statements of operations and comprehensive loss were as follows (in thousands): Three Months Ended Six Months Ended June 30, 2019 June 30, 2019 Operating lease cost $ 280 $ 560 Variable cost 91 178 Total lease costs $ 371 $ 738 As of June 30, 2019, the maturities of the Company’s operating lease liabilities are as follows (in thousands): Fiscal Year Ending December 31, 2019 (remaining 6 months) $ 503 2020 1,233 2021 1,270 2022 1,308 2023 1,348 Thereafter 8,304 Total lease payments 13,966 Less: Present value adjustment 5,367 Operating lease liabilities $ 8,599 Operating lease liabilities are based on the net present value of the remaining lease payments over the remaining lease term. In determining the present value of lease payments, the Company used its incremental borrowing rate based on the information available at the lease commencement date. As of June 30, 2019, the remaining lease term is 10.1 years and the discount rate used to determine the operating lease liability was 10.0%. As of June 30, 2019, the Company is not party to any lease agreements containing material residual value guarantees or material restrictive covenants. Purchase Obligations The Company has entered into contractual agreements with various research and development organizations and suppliers in the normal course of its business. All contracts are terminable, with varying provisions regarding termination. If a contract were to be terminated, the Company would only be obligated for the products or services that the Company had received through the time of termination as well as any non-cancelable minimum payments contractually agreed upon prior to the effective date of termination. In the case of terminating a clinical trial agreement with an investigational site conducting clinical activities on behalf of the Company, the Company would also be obligated to provide continued support for appropriate safety procedures through completion or termination of the associated study. At June 30, 2019, the Company had $14.7 million of non-cancelable purchase obligations under these agreements. In-Licensing Agreements The Company has entered into exclusive and non-exclusive, royalty bearing license agreements with third-parties for certain intellectual property. Under the terms of the license agreements, the Company is obligated to pay milestone payments upon the achievement of specified clinical, regulatory and commercial milestones. Actual amounts due under the license agreements will vary depending on factors including, but not limited to, the number of products developed and the Company’s ability to further develop and commercialize the licensed products. The Company is also subject to future royalty payments based on sales of the licensed products. In-licensing payments to third-parties for milestones are recognized as research and development expense in the period of achievement. The Company recognized $0.3 million of milestone expense for the three and six months ended June 30, 2018. The Company did not recognize any milestone expense during the three and six months ended June 30, 2019. Milestone payments are not creditable against royalties. As of June 30, 2019, the Company has not incurred any royalty liabilities related to its license agreements, as product sales have not yet commenced. Exclusive License Agreement with The Johns Hopkins University In December 2013, the Company entered into a license agreement with The Johns Hopkins University (“JHU”) for a worldwide exclusive license to develop, use, manufacture and commercialize covered product candidates including AK002, which was amended in September 2016. Under the terms of the agreement, the Company has made upfront and milestone payments of $0.3 million through June 30, 2019 and may be required to make aggregate additional milestone payments of up to $4.0 million. The Company also issued 88,887 shares of common stock as consideration under the JHU license agreement. In addition to milestone payments, the Company is also subject to single-digit royalties to JHU based on future net sales of each licensed therapeutic product candidate by the Company and its affiliates and sublicensees, with up to a low six-digit dollar minimum annual royalty payment. Non-exclusive License Agreement with BioWa Inc. and Lonza Sales AG In October 2013, the Company entered into a tripartite agreement with BioWa Inc. (“BioWa”), and Lonza Sales AG (“Lonza”), for the non-exclusive worldwide license to develop and commercialize product candidates including AK002 that are manufactured using a technology jointly developed and owned by BioWa and Lonza. Under the terms of the agreement, the Company has made milestone payments of $0.4 million through June 30, 2019 and may be required to make aggregate additional milestone payments of up to $41.0 million. In addition to milestone payments, the Company is also subject to minimum annual commercial license fees of $40,000 per year to BioWa until such time as BioWa receives royalty payments, as well as low single-digit royalties to BioWa and to Lonza. Royalties are based on future net sales by the Company and its affiliates and sublicensees and vary dependent on Lonza’s participation as sole manufacturer for commercial production. Indemnification Agreements The Company has entered into indemnification agreements with certain directors and officers that require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. To date, no such matters have arisen and the Company does not believe that the outcome of any claims under indemnification arrangements will have a material adverse effect on its financial positions, results of operations or cash flows. Accordingly, the Company has not recorded a liability related to such indemnifications at June 30, 2019. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 7. Stock-Based Compensation Total stock-based compensation expense recognized is as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Research and development $ 1,044 $ 167 $ 2,097 $ 335 General and administrative 2,061 272 3,842 717 Total $ 3,105 $ 439 $ 5,939 $ 1,052 No income tax benefits for stock-based compensation expense have been recognized for the three and six months ended June 30, 2019 and 2018 as a result of the Company’s full valuation allowance applied to net deferred tax assets and net operating loss carryforwards. Equity Incentive Plans In July 2018, the Board of Directors adopted the 2018 Equity Incentive Plan (the “2018 Plan”). The 2018 Plan provides for the grant of incentive stock options, non-statutory stock options, restricted stock awards, restricted stock units, stock appreciation rights and other stock-based awards. The Company initially reserved 4,000,000 shares of common stock for issuance under the 2018 Plan. The number of shares of common stock that may be issued under the 2018 Plan will automatically increase on each January 1, beginning with the fiscal year ending December 31, 2019, equal to the least Following the IPO and upon the effectiveness of the 2018 Plan, the Company’s 2012 Equity Incentive Plan, as amended, (the “2012 Plan”), terminated and no further awards will be granted thereunder. All outstanding awards under the 2012 Plan will continue to be governed by their existing terms. Any shares subject to awards granted under the 2012 Plan that, on or after the termination of the 2012 Plan, expire or terminate and shares previously issued pursuant to awards granted under the 2012 Plan that, on or after the termination of the 2012 Plan, are forfeited or repurchased by the Company will be transferred into the 2018 Plan. As of June 30, 2019, the maximum number of shares that may be added to the 2018 Plan pursuant to the preceding clause is 5,470,458 shares. Prior to its termination, the 2012 Plan provided for the grant of stock options, stock appreciation rights, restricted stock and restricted stock units to employees, directors and consultants. Stock options granted under the 2012 Plan generally vest over four years and expire no more than 10 years from the date of grant. The following weighted-average assumptions were used to calculate the fair value of stock-based awards granted to employees and directors during the periods indicated: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Risk-free interest rate 2.19 % 2.93 % 2.22 % 2.66 % Expected volatility 67.68 % 75.00 % 67.81 % 76.66 % Expected dividend yield — — — — Expected term (in years) 5.86 6.08 5.88 5.99 The Company’s stock option activity during the six months ended June 30, 2019 is summarized as follows (number of shares in thousands): Weighted- Average Options Exercise Outstanding Price Balance at December 31, 2018 7,811 $ 8.60 Granted 238 $ 39.65 Exercised (1,029 ) $ 0.69 Forfeited (44 ) $ 39.11 Balance at June 30, 2019 6,976 $ 10.64 Options exercisable 3,359 $ 1.74 Options vested and expected to vest 6,940 $ 10.60 During the three and six months ended June 30, 2019 and 2018, the Company did not grant any stock options with performance-based or market-based vesting conditions, nor did the Company grant any stock options to non-employees in exchange for services. As of June 30, 2019, total unrecognized stock-based compensation expense relating to unvested stock options was $37.3 million. This amount is expected to be recognized over a weighted-average period of 3.1 years. 2018 Employee Stock Purchase Plan In July 2018, the Company’s Board of Directors and stockholders approved the 2018 Employee Stock Purchase Plan (the “2018 ESPP”). There are 500,000 shares of common stock initially reserved for issuance under the 2018 ESPP. The number of shares of common stock that may be issued under the 2018 ESPP will automatically increase on each January 1, beginning with the fiscal year ending December 31, 2019, equal to the least of (i) 1,000,000 shares, (ii) 1% of the outstanding shares of common stock as of the last day of the immediately preceding fiscal year and (iii) such other amount determined by the 2018 ESPP administrator. Under the 2018 ESPP, employees may purchase shares of the Company’s common stock at a price per share equal to 85 % of the lower of the fair market value of the common stock on the first trading day of the offering period or on the exercise date. The 2018 ESPP provides for consecutive, overlapping 24-month offering periods, each of which will include purchase periods. The first offering period commenced on July 18 , 2018 and will end on the first trading day on or before August 15, 2020 . The second offering period commence d on February 15, 2019 . During the three and six months ended June 30 , 2019 , stock-based compensation expense related to the 2018 ESPP was $ 0.2 million and $ 0.3 million, respectively . |
Defined Contribution Plans
Defined Contribution Plans | 6 Months Ended |
Jun. 30, 2019 | |
Defined Contribution Pension And Other Postretirement Plans Disclosure [Abstract] | |
Defined Contribution Plans | 8. Defined Contribution Plans In January 2018, the Company established a defined contribution plan under Section 401(k) of the Internal Revenue Code (the “401(k) plan”). The 401(k) plan covers all employees who meet defined minimum age and service requirements. Employee contributions are voluntary and are determined on an individual basis, limited to the maximum amount allowable under U.S. federal tax regulations. The Company makes matching contributions of up to 4% of the eligible employees’ compensation to the 401(k) plan. During the three and six months ended June 30, 2019, the Company made contributions to the 401(k) plan of $0.1 million and $0.2 million, respectively. During each of the three and six months ended June 30, 2018, the Company made contributions to the 401(k) plan of $0.1 million. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited interim financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts and disclosures reported in the financial statements and accompanying notes. The interim balance sheet as of June 30, 2019, the statements of operations and comprehensive loss, statements of convertible preferred stock and stockholders’ equity (deficit) and statements of cash flows for the six months ended June 30, 2019 and 2018 are unaudited. The unaudited interim financial statements have been prepared on the same basis as the audited 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 financial position as of June 30, 2019 and its results of operations and comprehensive loss for the three and six months ended June 30, 2019 and 2018 and its cash flows for the six months ended June 30, 2019 and 2018. Certain information and note disclosures normally included in annual audited financial statements prepared in accordance with U.S. GAAP have been omitted. The financial data and the other financial information disclosed in these notes to the interim financial statements are also unaudited. The results of operations for any interim period are not necessarily indicative of the results to be expected for the entire year or for any other future annual or interim period. The balance sheet as of December 31, 2018 included herein was derived from the audited financial statements as of that date. These interim financial statements should be read in conjunction with the Company’s audited financial statements included in the Company’s Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission (the “SEC”) on March 14, 2019. |
Use of Estimates | Use of Estimates Management uses significant judgment when making estimates related to common stock valuation and related stock-based compensation expense, accrued expenses related to clinical trials, calculation of right-of-use assets and lease liabilities, and deferred tax valuation allowances. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates under different assumptions or conditions, and those differences could be material to the financial position and results of operations. |
Concentration of Credit Risk and Other Risks and Uncertainties | Concentration of Credit Risk and Other Risks and Uncertainties Financial instruments that potentially subject the Company to credit risk principally consist of cash, cash equivalents and marketable securities. These financial instruments are held in accounts at a single financial institution that management believes possesses high credit quality. Amounts on deposit with this financial institution have and will continue to exceed federally-insured limits. The Company has not experienced any losses on its cash deposits. Additionally, the Company’s investment policy limits its investments to certain types of securities issued by the U.S. government and its agencies. The Company is subject to a number of risks similar to that of other early-stage biopharmaceutical companies, including, but not limited to, the need to obtain adequate additional funding, possible failure of current or future clinical trials, its reliance on third-parties to conduct its clinical trials, the need to obtain regulatory and marketing approvals for its product candidates, competitive developments, the need to successfully commercialize and gain market acceptance of the Company’s product candidates, its right to develop and commercialize its product candidates pursuant to the terms and conditions of the licenses granted to the Company, protection of proprietary technology, the ability to make milestone, royalty or other payments due under licensing agreements, and the need to secure and maintain adequate manufacturing arrangements with third-parties. If the Company does not successfully commercialize or partner its product candidates, it will be unable to generate product revenue or achieve profitability. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash The Company considers all highly liquid investments with original maturities of three months or less from the date of purchase to be cash equivalents. Restricted cash as of June 30, 2019 represents $0.8 million in deposits restricted from withdrawal and held by a bank in the form of collateral for an irrevocable standby letter of credit held as security for the lease of the Company’s facility in Redwood City, California. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Company’s balance sheets and which, in aggregate, represent the amounts reported in the accompanying statements of cash flows (in thousands): June 30, December 31, 2019 2018 Cash and cash equivalents $ 36,457 $ 33,660 Restricted cash in other long-term assets, deposit for lease facility 802 802 Total cash, cash equivalents and restricted cash $ 37,259 $ 34,462 June 30, December 31, 2018 2017 Cash and cash equivalents $ 19,295 $ 85,207 Restricted cash in other long-term assets, deposit for lease facility 802 — Total cash, cash equivalents and restricted cash $ 20,097 $ 85,207 The tables above exclude the fair value of the Company’s investments in marketable securities that are considered available-for-sale. |
Marketable Securities | Marketable Securities The Company invests in marketable securities, primarily securities issued by the U.S. government and its agencies. The Company’s marketable securities are considered available-for-sale and are classified as current assets even when the stated maturities of the underlying securities exceed one year from the date of the current balance sheet being reported. This classification reflects management’s ability and intent to utilize proceeds from the sale of such investments to fund ongoing operations. Unrealized gains and losses are excluded from earnings and are reported as a component of accumulated comprehensive income (loss). The cost of securities sold is determined using the specific-identification method. Interest earned and adjustments for the amortization of premiums and discounts on investments are included in interest income, net, on the statements of operations and comprehensive loss. Realized gains and losses and declines in fair value judged to be other than temporary, if any, on investments in marketable securities are included in other income (expense), net, on the statements of operations and comprehensive loss. |
Leases | Leases Effective January 1, 2019, the Company accounts for its leases in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 842, “Leases” (“ASC 842”). Prior period amounts continue to be reported in accordance with the Company’s historic accounting under previous lease guidance. Additionally, the Company elected a number of optional practical expedients made available under the ASC 842 transition guidance. Such elections include (i) carrying forward the Company’s historical lease classifications, (ii) foregoing a re-evaluation of historical contracts to identify embedded leases, (iii) foregoing a re-assessment of initial direct costs related to leases that existed prior to adoption, (iv) combining lease and non-lease components, and (v) recognizing lease expense for all contracts with an initial term of 12 months or less within the statements of operations and comprehensive loss on a straight-line basis over the requisite lease term. The Company accounts for its leases by recording right-of-use assets and lease liabilities on the Balance Sheet. Right-of-use assets represent the Company’s right to use an underlying asset over the lease term and include any lease payments made prior to the lease commencement date and exclude lease incentives. Lease liabilities represent the present value of the total lease payments over the lease term, calculated using the Company’s incremental borrowing rate. In determining the Company’s incremental borrowing rate, consideration is given to the term of the lease and the Company’s credit risk. The Company’s recognizes options to extend or terminate a lease when it is reasonably certain that the Company will exercise any such options. Lease expense is recognized on a straight-line basis over the expected lease term. |
Research and Development Expense | Research and Development Expense Research and development costs are expensed as incurred. Research and development costs include, among others, consulting costs, salaries, benefits, travel, stock-based compensation, laboratory supplies and other non-capital equipment utilized for in-house research, allocation of facilities and overhead costs and external costs paid to third-parties that conduct research and development activities on the Company’s behalf. Amounts incurred in connection with license agreements are also included in research and development expense. Advance payments for goods or services to be rendered in the future for use in research and development activities are deferred and included in prepaid expenses and other current assets. The deferred amounts are expensed as the related goods are delivered or the services are performed. |
Accrued Research and Development Costs | Accrued Research and Development Costs Service agreements with contract research organizations (“CROs”) and contract development and manufacturing organizations (“CDMOs”) comprise a significant component of the Company’s research and development activities. External costs for CROs and CDMOs are recognized as the services are incurred. The Company accrues for expenses resulting from obligations under agreements with its third-parties for which the timing of payments does not match the periods over which the materials or services are provided to the Company. Accruals are recorded based on estimates of services received and efforts expended pursuant to agreements established with CROs, CDMOs and other outside service providers. These estimates are typically based on contracted amounts applied to the proportion of work performed and determined through analysis with internal personnel and external service providers as to the progress or stage of completion of the services. The Company makes judgements and estimates in determining the accrual balance in each reporting period. In the event advance payments are made to a CRO, CDMO or other outside service provider, the payments are recorded within prepaid expenses and other current assets and subsequently recognized as research and development expense when the associated services have been performed. As actual costs become known, the Company adjusts its liabilities and assets. Inputs, such as the extent of services received and the duration of services to be performed, may vary from the Company’s estimates, which will result in adjustments to research and development 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. The Company’s historical estimates have not been materially different from actual amounts recorded. |
Comprehensive Loss | Comprehensive Loss Comprehensive loss is defined as the change in stockholders’ equity (deficit) during a period from transactions and other events and circumstances from non-owner sources and consists primarily of unrealized gains and losses on the Company’s investments in marketable securities. |
Net Loss per Share | Net Loss per Share The Company calculates basic net loss per share by dividing the net loss attributable to common stockholders by the weighted-average shares of common stock outstanding during the period. The Company calculates diluted net loss per share after giving consideration to all potentially dilutive securities outstanding during the period using the treasury-stock and if-converted methods, except where the effect of including such securities would be inception, the effect from potentially dilutive securities would have been anti-dilutive and therefore has been excluded from the calculation of diluted net loss per share. Basic and diluted net loss per share was calculated as follows (in thousands, except per share data): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Numerator: Net loss $ (19,072 ) $ (9,377 ) $ (39,025 ) $ (17,862 ) Denominator: Weighted-average shares of common stock outstanding, basic and diluted 43,115 2,248 42,868 2,137 Net loss per share, basic and diluted $ (0.44 ) $ (4.17 ) $ (0.91 ) $ (8.36 ) The following table sets forth the potentially dilutive securities that have been excluded from the calculation of diluted net loss per share due to their anti-dilutive effect for the periods indicated (in thousands): Three and Six Months Ended June 30, 2019 2018 Series A convertible preferred stock — 20,866 Series B convertible preferred stock — 10,105 Options to purchase common stock 6,976 6,529 Warrants to purchase common stock — 48 Unvested restricted common stock 19 76 Shares issuable under 2018 Employee Stock Purchase Plan 27 — Total 7,022 37,624 |
Recent Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASC 842 which became effective for fiscal years beginning after December 15, 2018. ASC 842 requires an entity to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. The recognition, measurement and presentation of expenses will depend on the lease’s classification as a finance or operating lease. ASC 842 also requires certain quantitative and qualitative disclosures about leasing arrangements. The Company adopted ASC 842 using a modified retrospective approach effective January 1, 2019, recording a right-of-use asset of $6.1 million and a long-term lease liability of $8.2 million. Adoption of ASC 842 did not result in a cumulative effect adjustment to accumulated deficit. See Note 6 for further disclosure. In August 2018, the SEC adopted amendments to certain disclosure requirements in the Securities Act Release No. 33-10532, Disclosure Update and Simplification. Under the amendments, the Company must provide an analysis of changes in each caption of stockholders' equity (deficit) presented in the balance sheet in a note or separate statement. The Company adopted the amendments during the three months ended March 31, 2019. The adoption of the amendments did not have a material impact on the Company’s financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In August 2018, the FASB issued Accounting Standards Update (“ASU”) No. 2018-13, Fair Value Measurement In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (ASC Topic 326): Measurement of Credit Losses on Financial Instruments , as clarified in ASU No. 2019-04 and ASU No. 2019-05 . This guidance will require Companies to recognize an allowance for credit losses on available-for-sale debt securities rather than the current approach of recording a reduction to the carrying value of the asset. The ASU is effective for fiscal years beginning after December 15, 2019 and interim periods therein. Early adoption is permitted for annual periods beginning after December 15, 2018 and interim periods therein. The Company is currently evaluating the effects of this ASU on its financial statements and related disclosures and does not expect there to be a material impact. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Company’s balance sheets and which, in aggregate, represent the amounts reported in the accompanying statements of cash flows (in thousands): June 30, December 31, 2019 2018 Cash and cash equivalents $ 36,457 $ 33,660 Restricted cash in other long-term assets, deposit for lease facility 802 802 Total cash, cash equivalents and restricted cash $ 37,259 $ 34,462 June 30, December 31, 2018 2017 Cash and cash equivalents $ 19,295 $ 85,207 Restricted cash in other long-term assets, deposit for lease facility 802 — Total cash, cash equivalents and restricted cash $ 20,097 $ 85,207 |
Calculation of Basic and Diluted Net Loss per Share | Basic and diluted net loss per share was calculated as follows (in thousands, except per share data): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Numerator: Net loss $ (19,072 ) $ (9,377 ) $ (39,025 ) $ (17,862 ) Denominator: Weighted-average shares of common stock outstanding, basic and diluted 43,115 2,248 42,868 2,137 Net loss per share, basic and diluted $ (0.44 ) $ (4.17 ) $ (0.91 ) $ (8.36 ) |
Summary of Potentially Dilutive Securities Excluded from Calculation of Diluted Net Loss per Share | The following table sets forth the potentially dilutive securities that have been excluded from the calculation of diluted net loss per share due to their anti-dilutive effect for the periods indicated (in thousands): Three and Six Months Ended June 30, 2019 2018 Series A convertible preferred stock — 20,866 Series B convertible preferred stock — 10,105 Options to purchase common stock 6,976 6,529 Warrants to purchase common stock — 48 Unvested restricted common stock 19 76 Shares issuable under 2018 Employee Stock Purchase Plan 27 — Total 7,022 37,624 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Assets Measured at Fair Value on Recurring Basis | The Company measures and reports certain financial instruments as assets and liabilities at fair value on a recurring basis. The Company’s financial assets measured at fair value on a recurring basis were as follows (in thousands): June 30, 2019 Level 1 Level 2 Level 3 Total Cash equivalents Money market funds $ 34,122 $ — $ — $ 34,122 Total cash equivalents $ 34,122 $ — $ — $ 34,122 Marketable securities U.S. treasuries $ 116,614 $ — $ — $ 116,614 Total marketable securities $ 116,614 $ — $ — $ 116,614 Total cash equivalents and marketable securities $ 150,736 $ — $ — $ 150,736 December 31, 2018 Level 1 Level 2 Level 3 Total Cash equivalents Money market funds $ 31,555 $ — $ — $ 31,555 Total cash equivalents $ 31,555 $ — $ — $ 31,555 Marketable securities U.S. treasuries $ 145,246 $ — $ — $ 145,246 Total marketable securities $ 145,246 $ — $ — $ 145,246 Total cash equivalents and marketable securities $ 176,801 $ — $ — $ 176,801 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Summary of Amortized Cost, Gross Unrealized Holding Gains or Losses, and Fair Value of Marketable Securities | All marketable securities were considered available-for-sale at June 30, 2019. The amortized cost, gross unrealized holding gains or losses, and fair value of the Company’s marketable securities by major security type at June 30, 2019 and December 31, 2018 are summarized in the table below (in thousands): June 30, 2019 Amortized Cost Basis Unrealized Gains Unrealized Losses Fair Value Marketable securities U.S. treasuries $ 116,500 $ 114 $ — $ 116,614 Total marketable securities $ 116,500 $ 114 $ — $ 116,614 December 31, 2018 Amortized Cost Basis Unrealized Gains Unrealized Losses Fair Value Marketable securities U.S. treasuries $ 145,261 $ — $ (15 ) $ 145,246 Total marketable securities $ 145,261 $ — $ (15 ) $ 145,246 |
Balance Sheet Components and _2
Balance Sheet Components and Supplemental Disclosures (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net, consisted of the following (in thousands): June 30, December 31, 2019 2018 Laboratory equipment $ 3,825 $ 3,272 Furniture and office equipment 1,695 1,666 Leasehold improvements 4,581 4,545 10,101 9,483 Less accumulated depreciation (1,367 ) (635 ) Property and equipment, net $ 8,734 $ 8,848 |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following (in thousands): June 30, December 31, 2019 2018 Accrued outside professional services $ 3,236 $ 1,964 Accrued compensation and benefits 2,827 1,041 Lease liability, current 273 — Lease incentive obligation, current — 123 Other current liabilities 7 36 Total $ 6,343 $ 3,164 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Balance Sheet Classification of Company's Lease Liabilities | The balance sheet classification of the Company’s lease liabilities at June 30, 2019 was as follows (in thousands): Operating lease liabilities Current portion included in accrued expenses and other current liabilities $ 273 Non-current portion included in other long-term liabilities 8,326 Total operating lease liabilities $ 8,599 |
Summary of Components of Lease Costs | The components of lease costs, which were included in operating expenses in the Company’s statements of operations and comprehensive loss were as follows (in thousands): Three Months Ended Six Months Ended June 30, 2019 June 30, 2019 Operating lease cost $ 280 $ 560 Variable cost 91 178 Total lease costs $ 371 $ 738 |
Summary of Maturities of Operating Lease Liabilities | As of June 30, 2019, the maturities of the Company’s operating lease liabilities are as follows (in thousands): Fiscal Year Ending December 31, 2019 (remaining 6 months) $ 503 2020 1,233 2021 1,270 2022 1,308 2023 1,348 Thereafter 8,304 Total lease payments 13,966 Less: Present value adjustment 5,367 Operating lease liabilities $ 8,599 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Total Stock-Based Compensation Expense Recognized | Total stock-based compensation expense recognized is as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Research and development $ 1,044 $ 167 $ 2,097 $ 335 General and administrative 2,061 272 3,842 717 Total $ 3,105 $ 439 $ 5,939 $ 1,052 |
Summary of Weighted-Average Assumptions Used to Calculate Fair Value of Stock-based Awards Granted | The following weighted-average assumptions were used to calculate the fair value of stock-based awards granted to employees and directors during the periods indicated: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Risk-free interest rate 2.19 % 2.93 % 2.22 % 2.66 % Expected volatility 67.68 % 75.00 % 67.81 % 76.66 % Expected dividend yield — — — — Expected term (in years) 5.86 6.08 5.88 5.99 |
Summary of Stock Option Activity | The Company’s stock option activity during the six months ended June 30, 2019 is summarized as follows (number of shares in thousands): Weighted- Average Options Exercise Outstanding Price Balance at December 31, 2018 7,811 $ 8.60 Granted 238 $ 39.65 Exercised (1,029 ) $ 0.69 Forfeited (44 ) $ 39.11 Balance at June 30, 2019 6,976 $ 10.64 Options exercisable 3,359 $ 1.74 Options vested and expected to vest 6,940 $ 10.60 |
Organization and Business - Add
Organization and Business - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Jul. 23, 2018 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 |
Organization and Business [Line Items] | ||||||||
Net loss | $ 19,072 | $ 19,953 | $ 9,377 | $ 8,485 | $ 39,025 | $ 17,862 | ||
Cash used in operations | 27,702 | $ 17,449 | ||||||
Accumulated deficit | 143,137 | 143,137 | $ 104,112 | |||||
Cash, cash equivalents and marketable securities | $ 153,100 | $ 153,100 | ||||||
Common stock, shares authorized | 200,000,000 | 200,000,000 | 200,000,000 | 200,000,000 | ||||
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | ||||
Preferred stock, shares authorized | 20,000,000 | 20,000,000 | 20,000,000 | 20,000,000 | ||||
Preferred stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | ||||
Common Stock | ||||||||
Organization and Business [Line Items] | ||||||||
Net loss | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Proceeds from IPO, net of underwriting discounts and commissions | $ 137,300 | |||||||
Proceeds from private placement | $ 4,500 | |||||||
Initial Public Offering | Common Stock | ||||||||
Organization and Business [Line Items] | ||||||||
Common stock shares sold | 8,203,332 | |||||||
Common stock offering price per share | $ 18 | |||||||
Convertible preferred stock converted into shares of common stock | 30,971,627 | |||||||
Private Placement | Common Stock | ||||||||
Organization and Business [Line Items] | ||||||||
Common stock shares sold | 250,000 | |||||||
Common stock offering price per share | $ 18 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Summary Of Significant Accounting Policies [Line Items] | |||||
Restricted cash in long term assets, deposit for lease facility | $ 802 | $ 802 | $ 802 | $ 0 | |
Right-of-use asset | 5,908 | $ 0 | |||
Lease liability | $ 8,599 | ||||
ASC 842 | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Right-of-use asset | $ 6,100 | ||||
Lease liability | $ 8,200 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Supplemental Cash Flow Elements [Abstract] | ||||
Cash and cash equivalents | $ 36,457 | $ 33,660 | $ 19,295 | $ 85,207 |
Restricted cash in other long-term assets, deposit for lease facility | 802 | 802 | 802 | 0 |
Total cash, cash equivalents and restricted cash | $ 37,259 | $ 34,462 | $ 20,097 | $ 85,207 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Calculation of Basic and Diluted Net Loss per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Numerator: | ||||||
Net loss | $ (19,072) | $ (19,953) | $ (9,377) | $ (8,485) | $ (39,025) | $ (17,862) |
Weighted-average number of common shares outstanding: | ||||||
Weighted-average shares of common stock outstanding, basic and diluted | 43,115 | 2,248 | 42,868 | 2,137 | ||
Net loss per share, basic and diluted | $ (0.44) | $ (4.17) | $ (0.91) | $ (8.36) |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Summary of Potentially Dilutive Securities Excluded from Calculation of Diluted Net Loss per Share (Details) - shares shares in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potentially dilutive securities excluded from calculation of diluted net loss per share due to anti-dilutive effect | 7,022 | 37,624 |
Series A Convertible Preferred Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potentially dilutive securities excluded from calculation of diluted net loss per share due to anti-dilutive effect | 0 | 20,866 |
Series B Convertible Preferred Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potentially dilutive securities excluded from calculation of diluted net loss per share due to anti-dilutive effect | 0 | 10,105 |
Options to Purchase Common Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potentially dilutive securities excluded from calculation of diluted net loss per share due to anti-dilutive effect | 6,976 | 6,529 |
Warrants to Purchase Common Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potentially dilutive securities excluded from calculation of diluted net loss per share due to anti-dilutive effect | 0 | 48 |
Unvested Restricted Common Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potentially dilutive securities excluded from calculation of diluted net loss per share due to anti-dilutive effect | 19 | 76 |
Shares Issuable under 2018 Employee Stock Purchase Plan | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potentially dilutive securities excluded from calculation of diluted net loss per share due to anti-dilutive effect | 27 | 0 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Financial Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities | $ 116,614 | $ 145,246 |
Fair Value, Measurements, Recurring Basis | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 34,122 | 31,555 |
Marketable securities | 116,614 | 145,246 |
Total cash equivalents and marketable securities | 150,736 | 176,801 |
Fair Value, Measurements, Recurring Basis | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 34,122 | 31,555 |
Marketable securities | 116,614 | 145,246 |
Total cash equivalents and marketable securities | 150,736 | 176,801 |
Fair Value, Measurements, Recurring Basis | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Marketable securities | 0 | 0 |
Total cash equivalents and marketable securities | 0 | 0 |
Fair Value, Measurements, Recurring Basis | Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Marketable securities | 0 | 0 |
Total cash equivalents and marketable securities | 0 | 0 |
Fair Value, Measurements, Recurring Basis | Money Market Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 34,122 | 31,555 |
Fair Value, Measurements, Recurring Basis | Money Market Funds | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 34,122 | 31,555 |
Fair Value, Measurements, Recurring Basis | Money Market Funds | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Fair Value, Measurements, Recurring Basis | Money Market Funds | Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Fair Value, Measurements, Recurring Basis | U.S. Treasuries | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities | 116,614 | 145,246 |
Fair Value, Measurements, Recurring Basis | U.S. Treasuries | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities | 116,614 | 145,246 |
Fair Value, Measurements, Recurring Basis | U.S. Treasuries | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Fair Value, Measurements, Recurring Basis | U.S. Treasuries | Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities | $ 0 | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | ||||
Transfers of assets between level 1 to level 2 | $ 0 | $ 0 | $ 0 | $ 0 |
Transfers of assets between level 2 to level 1 | 0 | 0 | 0 | 0 |
Transfers of liabilities between level 1 to level 2 | 0 | 0 | 0 | 0 |
Transfers of liabilities between level 2 to level 1 | 0 | 0 | 0 | 0 |
Transfers of assets into level 3 | 0 | 0 | 0 | 0 |
Transfers of assets out of level 3 | 0 | 0 | 0 | 0 |
Transfers of liabilities into level 3 | 0 | 0 | 0 | 0 |
Transfers of liabilities out of level 3 | $ 0 | $ 0 | $ 0 | $ 0 |
Marketable Securities - Marketa
Marketable Securities - Marketable Securities - Summary of Amortized Cost, Gross Unrealized Holding Gains or Losses, and Fair Value of Marketable Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost Basis | $ 116,500 | $ 145,261 |
Unrealized Gains | 114 | 0 |
Unrealized Losses | 0 | (15) |
Fair Value | 116,614 | 145,246 |
U.S. Treasuries | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost Basis | 116,500 | 145,261 |
Unrealized Gains | 114 | 0 |
Unrealized Losses | 0 | (15) |
Fair Value | $ 116,614 | $ 145,246 |
Marketable Securities - Additio
Marketable Securities - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Investments Debt And Equity Securities [Abstract] | ||||
Other-than-temporary impairments on marketable securities | $ 0 | $ 0 | $ 0 | $ 0 |
Balance Sheet Components and _3
Balance Sheet Components and Supplemental Disclosures - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 10,101 | $ 9,483 |
Less accumulated depreciation | (1,367) | (635) |
Property and equipment, net | 8,734 | 8,848 |
Laboratory Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 3,825 | 3,272 |
Furniture And Office Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 1,695 | 1,666 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 4,581 | $ 4,545 |
Balance Sheet Components and _4
Balance Sheet Components and Supplemental Disclosures - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Balance Sheet Related Disclosures [Abstract] | ||||
Depreciation and amortization | $ 400 | $ 100 | $ 732 | $ 119 |
Balance Sheet Components and _5
Balance Sheet Components and Supplemental Disclosures - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Payables And Accruals [Abstract] | ||
Accrued outside professional services | $ 3,236 | $ 1,964 |
Accrued compensation and benefits | 2,827 | 1,041 |
Lease liability, current | 273 | 0 |
Lease incentive obligation, current | 0 | 123 |
Other current liabilities | 7 | 36 |
Total | $ 6,343 | $ 3,164 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 67 Months Ended | 69 Months Ended | ||||
Jan. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2013 | |
Commitments And Contingencies [Line Items] | |||||||||
Lease agreement initiation period | 2018-01 | ||||||||
Base term of lease | 10 years 9 months | ||||||||
Lease term extension period | 5 years | ||||||||
Tenant improvement allowance | $ 1,400,000 | ||||||||
Remaining lease term | 10 years 1 month 6 days | ||||||||
Operating lease liability discount rate | 10.00% | 10.00% | 10.00% | 10.00% | |||||
Non-cancelable purchase obligations | $ 14,700,000 | $ 14,700,000 | $ 14,700,000 | $ 14,700,000 | |||||
Common stock, shares issued | 43,184,000 | 43,184,000 | 43,184,000 | 43,184,000 | 42,117,000 | ||||
In-Licensing Agreements | |||||||||
Commitments And Contingencies [Line Items] | |||||||||
Milestone expense | $ 0 | $ 300,000 | $ 0 | $ 300,000 | |||||
Accrued Royalties | $ 0 | $ 0 | $ 0 | $ 0 | |||||
Exclusive License Agreement with The Johns Hopkins University | |||||||||
Commitments And Contingencies [Line Items] | |||||||||
Upfront and milestone payments | 300,000 | ||||||||
Common stock, shares issued | 88,887 | ||||||||
Exclusive License Agreement with The Johns Hopkins University | Maximum | |||||||||
Commitments And Contingencies [Line Items] | |||||||||
Aggregate additional milestone payments | $ 4,000,000 | ||||||||
Non-exclusive License Agreement with BioWa Inc. and Lonza Sales AG | |||||||||
Commitments And Contingencies [Line Items] | |||||||||
Milestone payments | 400,000 | ||||||||
Non-exclusive License Agreement with BioWa Inc. and Lonza Sales AG | Minimum | |||||||||
Commitments And Contingencies [Line Items] | |||||||||
Annual commercial license fees | 40,000 | ||||||||
Non-exclusive License Agreement with BioWa Inc. and Lonza Sales AG | Maximum | |||||||||
Commitments And Contingencies [Line Items] | |||||||||
Aggregate additional milestone payments | $ 41,000,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Summary of Balance Sheet Classifications of Company's Lease Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Operating lease liabilities | ||
Current portion included in accrued expenses and other current liabilities | $ 273 | $ 0 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiabilitiesCurrent | |
Non-current portion included in other long-term liabilities | $ 8,326 | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent | |
Total operating lease liabilities | $ 8,599 |
Commitments and Contingencies_3
Commitments and Contingencies - Summary of Components of Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 280 | $ 560 |
Variable cost | 91 | 178 |
Total lease costs | $ 371 | $ 738 |
Commitments and Contingencies_4
Commitments and Contingencies - Summary of Maturities of Operating Lease Liabilities (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Operating Lease Liabilities Payments Due [Abstract] | |
2019 (remaining 6 months) | $ 503 |
2020 | 1,233 |
2021 | 1,270 |
2022 | 1,308 |
2023 | 1,348 |
Thereafter | 8,304 |
Total lease payments | 13,966 |
Present value adjustment | 5,367 |
Operating lease liabilities | $ 8,599 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Total Stock-Based Compensation Expense Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 3,105 | $ 439 | $ 5,939 | $ 1,052 |
Research and Development | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 1,044 | 167 | 2,097 | 335 |
General and Administrative | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 2,061 | $ 272 | $ 3,842 | $ 717 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Tax benefits for stock-based compensation expense recognized | $ 0 | $ 0 | $ 0 | $ 0 | |
Stock options granted | 238,000 | ||||
Total unrecognized stock-based compensation expense relating to unvested stock options | 37,300,000 | $ 37,300,000 | |||
Total stock-based compensation expense | $ 3,105,000 | $ 439,000 | $ 5,939,000 | $ 1,052,000 | |
Performance-Based Vesting | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock options granted | 0 | 0 | 0 | 0 | |
Market-Based Vesting | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock options granted | 0 | 0 | 0 | 0 | |
Service-Based Vesting | Non-Employees | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock options granted | 0 | 0 | 0 | 0 | |
Stock Options | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Weighted-average recognition period | 3 years 1 month 6 days | ||||
2018 Employee Stock Purchase Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Common stock shares reserved for issuance | 500,000 | ||||
Increase in number of common stock shares reserved for issuance per year | 1,000,000 | ||||
Percentage increase in shares reserved for issuance per year | 1.00% | ||||
Price as a percentage of fair market value of common stock | 85.00% | ||||
Consecutive overlapping offering period | 24 months | ||||
First offering period commence date | Jul. 18, 2018 | ||||
First offering period end date | Aug. 15, 2020 | ||||
Second offering period commence date | Feb. 15, 2019 | ||||
Total stock-based compensation expense | $ 200,000 | $ 300,000 | |||
2018 Equity Incentive Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Common stock shares reserved for issuance | 4,000,000 | ||||
Increase in number of common stock shares reserved for issuance per year | 5,000,000 | ||||
Percentage increase in shares reserved for issuance per year | 5.00% | ||||
Maximum number of additional shares authorized to be added to the Plan | 5,470,458 | ||||
2012 Equity Incentive Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Award vesting period | 4 years | ||||
2012 Equity Incentive Plan | Maximum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Option expiration period | 10 years |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Weighted-Average Assumptions Used to Calculate Fair Value of Stock-based Awards Granted (Details) - Employees and Directors - Stock Options | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Risk-free interest rate | 2.19% | 2.93% | 2.22% | 2.66% |
Expected volatility | 67.68% | 75.00% | 67.81% | 76.66% |
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Expected term (in years) | 5 years 10 months 9 days | 6 years 29 days | 5 years 10 months 17 days | 5 years 11 months 26 days |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Stock Option Activity (Details) - $ / shares shares in Thousands | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Options Outstanding, Beginning balance | 7,811 |
Options Outstanding, Granted | 238 |
Options Outstanding, Exercised | (1,029) |
Options Outstanding, forfeited | (44) |
Options Outstanding, Ending balance | 6,976 |
Options Outstanding, Options exercisable | 3,359 |
Options Outstanding, Options vested and expected to vest | 6,940 |
Weighted Average Exercise Price, Beginning balance | $ 8.60 |
Weighted Average Exercise Price, Granted | 39.65 |
Weighted Average Exercise Price, Exercised | 0.69 |
Weighted Average Exercise Price, Forfeited | 39.11 |
Weighted Average Exercise Price, Ending balance | 10.64 |
Weighted Average Exercise Price, Options exercisable | 1.74 |
Weighted Average Exercise Price, Options vested and expected to vest | $ 10.60 |
Defined Contribution Plans - Ad
Defined Contribution Plans - Additional Information (Details) - 401(K) Plan - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Defined Contribution Plan Disclosure [Line Items] | ||||
Employer contribution matching percentage | 4.00% | |||
Contributions made by employer | $ 0.1 | $ 0.1 | $ 0.2 | $ 0.1 |