Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 29, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-37471 | |
Entity Registrant Name | PIERIS PHARMACEUTICALS, INC. | |
Entity Incorporation, State or Country Code | NV | |
Entity Tax Identification Number | 30-0784346 | |
Entity Address, Address Line One | 255 State Street | |
Entity Address, Address Line Two | 9th Floor | |
Entity Address, City or Town | Boston, | |
Entity Address, State or Province | MA | |
Entity Address, Country | US | |
Entity Address, Postal Zip Code | 02109 | |
City Area Code | 857 | |
Local Phone Number | 246-8998 | |
Title of 12(b) Security | Common Stock, $0.001 par value per share | |
Trading Symbol | PIRS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 72,062,173 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001583648 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 125,052 | $ 70,436 |
Accounts receivable | 6,646 | 1,706 |
Prepaid expenses and other current assets | 5,949 | 3,579 |
Total current assets | 137,647 | 75,721 |
Property and equipment, net | 19,613 | 22,046 |
Operating lease right-of-use assets | 3,974 | 3,934 |
Other non-current assets | 2,950 | 3,309 |
Total assets | 164,184 | 105,010 |
Current liabilities: | ||
Accounts payable | 3,562 | 1,787 |
Accrued expenses and other current liabilities | 19,685 | 7,731 |
Deferred revenues, current portion | 26,449 | 12,627 |
Total current liabilities | 49,696 | 22,145 |
Deferred revenue, net of current portion | 46,190 | 35,900 |
Operating lease liabilities | 14,445 | 15,932 |
Other long-term liabilities | 0 | 6 |
Total liabilities | 110,331 | 73,983 |
Stockholders’ equity: | ||
Preferred stock | 0 | 0 |
Common stock | 72 | 56 |
ATM proceeds receivable | (1,814) | 0 |
Additional paid-in capital | 302,591 | 242,672 |
Accumulated other comprehensive income (loss) | 616 | (295) |
Accumulated deficit | (247,612) | (211,406) |
Total stockholders’ equity | 53,853 | 31,027 |
Total liabilities and stockholders’ equity | $ 164,184 | $ 105,010 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue | ||||
Customer revenue | $ 2,783 | $ 2,578 | $ 20,189 | $ 22,393 |
Collaboration revenue | 1,274 | 361 | 2,786 | 5,053 |
Total revenue | 4,057 | 2,939 | 22,975 | 27,446 |
Operating expenses | ||||
Research and development | 18,937 | 11,822 | 51,299 | 35,913 |
General and administrative | 4,132 | 4,116 | 12,508 | 13,043 |
Total operating expenses | 23,069 | 15,938 | 63,807 | 48,956 |
Loss from operations | (19,012) | (12,999) | (40,832) | (21,510) |
Other income (expense) | ||||
Interest income | 4 | 55 | 10 | 503 |
Grant income | 1,794 | 0 | 2,590 | 0 |
Other income (expense) | 678 | (1,339) | 2,026 | (1,823) |
Net loss | (16,536) | (14,283) | (36,206) | (22,830) |
Other comprehensive income (loss): | ||||
Foreign currency translation | 382 | 632 | 911 | 1,462 |
Unrealized loss on available-for-sale securities | 0 | (350) | 0 | (249) |
Comprehensive loss | $ (16,154) | $ (14,001) | $ (35,295) | $ (21,617) |
Net loss per share | ||||
Earnings per share, basic (in dollars per share) | $ (0.24) | $ (0.26) | $ (0.58) | $ (0.42) |
Earnings per share, diluted (in dollars per share) | $ (0.24) | $ (0.26) | $ (0.58) | $ (0.42) |
Weighted average number of common shares outstanding | ||||
Weighted average number of shares outstanding, basic (in shares) | 67,730 | 54,340 | 62,019 | 53,976 |
Weighted average number of shares outstanding, diluted (in shares) | 67,730 | 54,340 | 62,019 | 53,976 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Series D Preferred Stock | Series E Preferred Stock | At the market offering | Private placement | Preferred shares | Preferred sharesSeries D Preferred Stock | Preferred sharesSeries E Preferred Stock | Common shares | Common sharesSeries D Preferred Stock | Common sharesSeries E Preferred Stock | Common sharesAt the market offering | Common sharesPrivate placement | ATM proceeds receivable | ATM proceeds receivableAt the market offering | Additional paid-in capital | Additional paid-in capitalSeries D Preferred Stock | Additional paid-in capitalSeries E Preferred Stock | Additional paid-in capitalAt the market offering | Additional paid-in capitalPrivate placement | Accumulated other comprehensive income (loss) | Accumulated deficit |
Balance at beginning of period (in shares) at Dec. 31, 2019 | 11 | 55,212 | ||||||||||||||||||||
Balance at beginning of period at Dec. 31, 2019 | $ 51,352 | $ 0 | $ 55 | $ 0 | $ 227,468 | $ (1,995) | $ (174,176) | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||
Net loss | (22,830) | (22,830) | ||||||||||||||||||||
Foreign currency translation adjustment | 1,462 | 1,462 | 0 | |||||||||||||||||||
Unrealized gain (loss) on investments | (249) | (249) | ||||||||||||||||||||
Stock based compensation expense | 3,916 | 3,916 | ||||||||||||||||||||
Issuance of common stock resulting from exercise of stock options (in shares) | 139 | |||||||||||||||||||||
Issuance of common stock resulting from exercise of stock options | 271 | 271 | ||||||||||||||||||||
Issuance of common stock resulting from purchase of employee stock purchase plan shares (in shares) | 47 | |||||||||||||||||||||
Issuance of common stock resulting from purchase of employee stock purchase plan shares | 145 | 145 | ||||||||||||||||||||
Preferred stock conversion (in shares) | 3 | 3,000 | ||||||||||||||||||||
Preferred stock conversion value | $ 0 | $ (3) | $ 3 | |||||||||||||||||||
Issuance of common stock pursuant to offering (in shares) | 3,571 | |||||||||||||||||||||
Issuance of common stock pursuant to offering value | $ 9,624 | $ 4 | $ 9,620 | |||||||||||||||||||
Balance at end of period (in shares) at Sep. 30, 2020 | 14 | 55,971 | ||||||||||||||||||||
Balance at end of period at Sep. 30, 2020 | 43,691 | $ 0 | $ 56 | 0 | 241,423 | (782) | (197,006) | |||||||||||||||
Balance at beginning of period (in shares) at Jun. 30, 2020 | 14 | 52,399 | ||||||||||||||||||||
Balance at beginning of period at Jun. 30, 2020 | 46,672 | $ 0 | $ 52 | 0 | 230,407 | (1,064) | (182,723) | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||
Net loss | (14,283) | (14,283) | ||||||||||||||||||||
Foreign currency translation adjustment | 632 | 632 | ||||||||||||||||||||
Unrealized gain (loss) on investments | (350) | (350) | ||||||||||||||||||||
Stock based compensation expense | 1,396 | 1,396 | ||||||||||||||||||||
Issuance of common stock pursuant to offering (in shares) | 3,571 | |||||||||||||||||||||
Issuance of common stock pursuant to offering value | 9,624 | $ 4 | 9,620 | |||||||||||||||||||
Balance at end of period (in shares) at Sep. 30, 2020 | 14 | 55,971 | ||||||||||||||||||||
Balance at end of period at Sep. 30, 2020 | 43,691 | $ 0 | $ 56 | 0 | 241,423 | (782) | (197,006) | |||||||||||||||
Balance at beginning of period (in shares) at Dec. 31, 2020 | 14 | 56,003 | ||||||||||||||||||||
Balance at beginning of period at Dec. 31, 2020 | 31,027 | $ 0 | $ 56 | 0 | 242,672 | (295) | (211,406) | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||
Net loss | (36,206) | (36,206) | ||||||||||||||||||||
Foreign currency translation adjustment | 911 | 911 | ||||||||||||||||||||
Stock based compensation expense | 3,895 | 3,895 | ||||||||||||||||||||
Issuance of common stock resulting from exercise of stock options (in shares) | 412 | |||||||||||||||||||||
Issuance of common stock resulting from exercise of stock options | 858 | 858 | ||||||||||||||||||||
Issuance of common stock resulting from purchase of employee stock purchase plan shares (in shares) | 40 | |||||||||||||||||||||
Issuance of common stock resulting from purchase of employee stock purchase plan shares | 96 | 96 | ||||||||||||||||||||
Issuance of common stock resulting from exercise of warrants (in shares) | 1,391 | |||||||||||||||||||||
Issuance of common stock resulting from exercise of warrants | 837 | $ 1 | 836 | |||||||||||||||||||
Preferred stock conversion (in shares) | 4 | 5 | 3,812 | 5,000 | ||||||||||||||||||
Preferred stock conversion value | 0 | $ 0 | $ 4 | $ (5) | (4) | $ 5 | ||||||||||||||||
Issuance of common stock pursuant to offering (in shares) | 7,558 | 7,290 | ||||||||||||||||||||
Issuance of common stock pursuant to offering value | 33,522 | $ 18,913 | $ 8 | $ 8 | $ (1,814) | 35,328 | $ 18,905 | |||||||||||||||
Balance at end of period (in shares) at Sep. 30, 2021 | 16 | 71,505 | ||||||||||||||||||||
Balance at end of period at Sep. 30, 2021 | 53,853 | $ 0 | $ 72 | (1,814) | 302,591 | 616 | (247,612) | |||||||||||||||
Balance at beginning of period (in shares) at Jun. 30, 2021 | 16 | 66,679 | ||||||||||||||||||||
Balance at beginning of period at Jun. 30, 2021 | 46,721 | $ 0 | $ 67 | 0 | 277,496 | 234 | (231,076) | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||
Net loss | (16,536) | (16,536) | ||||||||||||||||||||
Foreign currency translation adjustment | 382 | 382 | ||||||||||||||||||||
Stock based compensation expense | 1,370 | 1,370 | ||||||||||||||||||||
Issuance of common stock resulting from exercise of stock options (in shares) | 272 | |||||||||||||||||||||
Issuance of common stock resulting from exercise of stock options | 566 | 566 | ||||||||||||||||||||
Issuance of common stock pursuant to offering (in shares) | 4,554 | |||||||||||||||||||||
Issuance of common stock pursuant to offering value | $ 21,350 | $ 5 | $ (1,814) | $ 23,159 | ||||||||||||||||||
Balance at end of period (in shares) at Sep. 30, 2021 | 16 | 71,505 | ||||||||||||||||||||
Balance at end of period at Sep. 30, 2021 | $ 53,853 | $ 0 | $ 72 | $ (1,814) | $ 302,591 | $ 616 | $ (247,612) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Payments of stock issuance costs | $ 1.2 | $ 1.8 | ||
At the market offering | ||||
Payments of stock issuance costs | $ 0.8 | $ 0.4 | 1.2 | $ 0.4 |
Private placement | ||||
Payments of stock issuance costs | $ 0.1 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Operating activities: | ||
Net loss | $ (36,206) | $ (22,830) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 1,850 | 1,623 |
Right-of-use asset (accretion) amortization | 70 | 103 |
Stock-based compensation | 3,895 | 3,916 |
Other non-cash transactions | 26 | (293) |
Changes in operating assets and liabilities | 33,789 | (14,792) |
Net cash provided by (used in) operating activities | 3,284 | (32,479) |
Investing activities: | ||
Purchases of property and equipment | (607) | (2,148) |
Proceeds from maturity of investments | 0 | 67,687 |
Purchases of investments | 0 | (41,178) |
Net cash (used in) provided by investing activities | (607) | 24,361 |
Financing activities: | ||
Proceeds from exercise of stock options | 858 | 271 |
Proceeds from exercise of warrants | 837 | 0 |
Proceeds from employee stock purchase plan | 96 | 145 |
Proceeds from issuance of common stock from private placement, net of issuance costs | 18,913 | 0 |
Proceeds from issuance of common stock resulting from ATM sales, net of $1.2M in transaction costs and $1.8M in proceeds receivable | 33,522 | 9,624 |
Net cash provided by financing activities | 54,226 | 10,040 |
Effect of exchange rate change on cash and cash equivalents | (2,287) | 2,708 |
Net increase in cash and cash equivalents | 54,616 | 4,630 |
Cash and cash equivalents at beginning of period | 70,436 | 62,260 |
Cash and cash equivalents at end of period | 125,052 | 66,890 |
Supplemental cash flow disclosures: | ||
Net unrealized loss on investments | 0 | (319) |
Property and equipment included in accounts payable | $ 0 | $ 370 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Cash Flows [Abstract] | ||
Payments of stock issuance costs | $ 1.2 | $ 1.8 |
Corporate Information
Corporate Information | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Corporate Information | Corporate Information Pieris Pharmaceuticals, Inc. was founded in May 2013, and acquired 100% interest in Pieris Pharmaceuticals GmbH (formerly Pieris AG, a German company that was founded in 2001) in December 2014. Pieris Pharmaceuticals, Inc. and its wholly-owned subsidiaries, hereinafter collectively Pieris, or the Company, is a clinical-stage biopharmaceutical company that discovers and develops Anticalin-based drugs to target validated disease pathways in unique and transformative ways. Pieris’ corporate headquarters is located in Boston, Massachusetts and its research facility is located in Hallbergmoos, Germany. Pieris’ clinical pipeline includes an inhaled IL-4Rα antagonist Anticalin protein to treat moderate-to-severe asthma and an immuno-oncology, or IO, bispecific targeting 4-1BB and HER2. The Company’s core Anticalin technology and platform was developed in Germany, and the Company has partnership arrangements with several major multi-national pharmaceutical companies. The Company is subject to risks common to companies in the biotechnology industry, including but not limited to, the need for additional capital, risks of failure of preclinical studies and clinical trials, the need to obtain marketing approval and reimbursement for any drug product candidate that it may identify and develop, the need to successfully commercialize and gain market acceptance of its product candidates, dependence on key personnel, protection of proprietary technology, compliance with government regulations, development of technological innovations by competitors, reliance on third-party manufacturers and the ability to transition from pilot-scale production to large-scale manufacturing of products. As of September 30, 2021, cash and cash equivalents were $125.1 million. The Company’s net loss was $16.5 million and $14.3 million for the quarters ended September 30, 2021 and 2020, respectively. The Company has incurred net losses since inception and had an accumulated deficit of $247.6 million as of September 30, 2021. Net losses and negative cash flows from operations have had, and will continue to have, an adverse effect on the Company’s stockholders’ equity and working capital. The Company expects to continue to incur operating losses for at least the next several years. The future success of the Company is dependent on its ability to identify and develop its product candidates, expand its corporate infrastructure and ultimately upon its ability to attain profitable operations. The Company has devoted substantially all of its financial resources and efforts to research and development and general and administrative expenses to support such research and development. The Company has several research and development programs underway in varying stages of development, and it expects that these programs will continue to require increasing amounts of cash for development, conducting clinical trials, and testing and manufacturing of product material. Cash necessary to fund operations will increase significantly over the next several years as the Company continues to conduct these activities necessary to pursue governmental regulatory approval of clinical-stage programs and other product candidates. The Company plans to raise additional capital to fulfill its operating and capital requirements through public or private equity financings, utilization of its current “ at the market offering ” program, or ATM Program, strategic collaborations, licensing arrangements, government grants and/or the achievement of milestones under its collaborative agreements. The funding requirements of the Company’s operating plans, however, are based on estimates that are subject to risks and uncertainties and may change as a result of many factors currently unknown. Although management continues to pursue these funding plans, there is no assurance that the Company will be successful in obtaining sufficient funding on terms acceptable to the Company to fund continuing operations, if at all. Until such time that the Company can generate substantial product revenues, if ever, the Company expects to finance its cash needs through a combination of equity offerings, debt financings, strategic partnerships, licensing arrangements and government grants. The terms of any future financing may adversely affect the holdings or the rights of the Company’s existing stockholders. The Company believes that its currently available funds will be sufficient to fund the Company’s operations through at least the next twelve months from the issuance of this Quarterly Report on Form 10-Q. The Company’s belief with respect to its ability to fund operations is based on estimates that are subject to risks and uncertainties. If actual results are different from management’s estimates, the Company may need to seek additional funding. If the Company is unable to obtain additional funding on acceptable terms when needed, it may be required to defer or limit some or all of its research, development and/or clinical projects. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies The Company’s significant accounting policies are described in Note 2—Summary of Significant Accounting Policies, in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020. There has been one material addition to the significant accounting policies pertaining to the Company’s policy on government grant income during the nine months ended September 30, 2021. Unaudited Interim Financial Information The accompanying unaudited condensed consolidated financial statements included herein have been prepared by the Company in accordance with accounting principles generally accepted in the United States, or U.S. GAAP, for interim financial information and pursuant to the rules and regulations of the SEC. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, all adjustments, consisting of normal recurring adjustments, and disclosures considered necessary for a fair presentation of interim period results have been included. Interim results for the three and nine months ended September 30, 2021 are not necessarily indicative of results that may be expected for the year ending December 31, 2021. For further information, refer to the financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, which was filed with the SEC on March 31, 2021. Basis of Presentation and Use of Estimates The accompanying condensed consolidated financial statements of Pieris Pharmaceuticals, Inc. and its wholly-owned subsidiaries were prepared in accordance with U.S. GAAP. The condensed consolidated financial statements include the accounts of all subsidiaries. All intercompany balances and transactions have been eliminated. The preparation of the financial statements in accordance with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses and the related disclosures at the date of the financial statements and during the reporting period. Significant estimates are used for, but are not limited to, revenue recognition; deferred tax assets, deferred tax liabilities and valuation allowances; determination of the incremental borrowing rate to calculate right-of-use assets and lease liabilities; beneficial conversion features; fair value of stock options, preferred stock, and warrants; and various accruals. Management evaluates its estimates on an ongoing basis. Actual results and outcomes could differ materially from management’s estimates, judgments and assumptions. Cash, Cash Equivalents and Investments The Company determines the appropriate classification of its investments at the time of purchase. All liquid investments with original maturities of 90 days or less from the purchase date and for which there is an active market are considered to be cash equivalents. The Company’s investments are comprised of money market, asset backed securities, government treasuries and corporate bonds that are classified as available-for-sale in accordance with Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC, 320, Investments—Debt and Equity Securities . The Company classifies investments available to fund current operations as current assets on its balance sheets. Available-for-sale investments are recorded at fair value, with unrealized gains or losses included in accumulated other comprehensive loss on the Company’s balance sheets. Realized gains and losses are determined using the specific identification method and are included as a component of other income. The Company reviews investments for other-than-temporary impairment whenever the fair value of an investment is less than the amortized cost and evidence indicates that an investment’s carrying amount is not recoverable within a reasonable period of time. To determine whether an impairment is other-than temporary, the Company considers its intent to sell or whether it is more likely than not that the Company will be required to sell the investment before recovery of the investment’s amortized cost basis. Evidence considered in this assessment includes reasons for the impairment, the severity and the duration of the impairment and changes in value subsequent to period end. Concentration of Credit Risk and Off-Balance Sheet Risk The Company has no financial instruments with off-balance sheet risk such as foreign exchange contracts, option contracts or other foreign hedging arrangements. Financial instruments that subject Pieris to concentrations of credit risk include cash and cash equivalents, investments, and accounts receivable. The Company’s cash, cash equivalents, and investments are held in accounts with financial institutions that management believes are creditworthy. The Company’s investment policy includes guidelines on the quality of the institutions and financial instruments and defines allowable investments that the Company believes minimizes the exposure to concentration of credit risk. The Company has not experienced any credit losses in such accounts and does not believe it is exposed to any significant credit risk on these funds. Accounts receivable primarily consist of amounts due under strategic partnership and other license agreements with major multi-national pharmaceutical companies for which the Company does not obtain collateral. Fair Value Measurement The Company is required to disclose information on all assets and liabilities reported at fair value that enables an assessment of the inputs used in determining the reported fair values. FASB ASC Topic 820, Fair Value Measurement and Disclosures , established a hierarchy of inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the financial instrument based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the inputs that market participants would use in pricing the financial instrument and are developed based on the best information available in the circumstances. The fair value hierarchy applies only to the valuation inputs used in determining the reported or disclosed fair value of the financial instruments and is not a measure of the investment credit quality. Fair value measurements are classified and disclosed in one of the following three categories: • Level 1 inputs are quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. • Level 2 utilizes quoted market prices in markets that are not active, broker or dealer quotations or alternative pricing sources with reasonable levels of price transparency. • Level 3 inputs are unobservable inputs for the asset or liability in which there is little, if any, market activity for the asset or liability at the measurement date. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Financial instruments measured at fair value on a recurring basis include cash equivalents (see Note 4). An entity may elect to measure many financial instruments and certain other items at fair value at specified election dates. Subsequent unrealized gains and losses on items for which the fair value option has been elected will be reported in net loss. The Company did not elect to measure any additional financial instruments or other items at fair value. Property and Equipment Property and equipment are recorded at acquisition cost, less accumulated depreciation and impairment. Depreciation on property and equipment is calculated using the straight-line method over the remaining estimated useful lives of the assets. Maintenance and repairs to these assets are charged to expenses as occurred. The estimated useful life of the different groups of property and equipment is as follows: Asset Classification Estimated useful life (in years) Leasehold improvements shorter of useful life or remaining life of the lease Laboratory furniture and equipment 8 - 14 Office furniture and equipment 5 - 13 Computer and equipment 3 - 7 Revenue Recognition The Company has entered into several licensing agreements with collaboration partners for the development of Anticalin therapeutics against a variety of targets. The terms of these agreements provide for the transfer of multiple goods or services which may include: (i) licenses, or options to obtain licenses, to the Company’s Anticalin technology and/or specific programs and (ii) research and development activities to be performed on behalf of or with a collaborative partner. Payments to Pieris under these agreements may include upfront fees (which include license and option fees), payments for research and development activities, payments based upon the achievement of certain milestones and royalties on product sales. There are no performance, cancellation, termination or refund provisions in any of the arrangements that could result in material financial consequences to Pieris. Collaborative Arrangements The Company considers the nature and contractual terms of an arrangement and assesses whether the arrangement involves a joint operating activity pursuant to which it is an active participant and exposed to significant risks and rewards with respect to the arrangement. If the Company is an active participant and exposed to the significant risks and rewards with respect to the arrangement, it accounts for these arrangements pursuant to ASC 808, Collaborative Arrangements , or ASC 808, and applies a systematic and rational approach to recognize revenue. The Company classifies payments received as revenue and payments made as a reduction of revenue in the period in which they are earned. Revenue recognized under a collaborative arrangement involving a participant that is not a customer is presented as Collaboration Revenue in the Statement of Operations. Revenue from Contracts with Customers In accordance with ASC 606, revenue is recognized when a customer obtains control of promised goods or services. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled in exchange for these goods and services. To achieve this core principle, the Company applies the following five steps: 1) identify the customer contract; 2) identify the contract’s performance obligations; 3) determine the transaction price; 4) allocate the transaction price to the performance obligations; and 5) recognize revenue when or as a performance obligation is satisfied. The Company evaluates all promised goods and services within a customer contract and determines which of such goods and services are separate performance obligations. This evaluation includes an assessment of whether the good or service is capable of being distinct and whether the good or service is separable from other promises in the contract. In assessing whether promised goods or services are distinct, the Company considers factors such as the stage of development of the underlying intellectual property and the capabilities of the customer to develop the intellectual property on their own or whether the required expertise is readily available. Licensing arrangements are analyzed to determine whether the promised goods or services, which often include licenses, research and development services and governance committee services, are distinct or whether they must be accounted for as part of a combined performance obligation. If the license is considered not to be distinct, the license would then be combined with other promised goods or services as a combined performance obligation. If the Company is involved in a governance committee, it assesses whether its involvement constitutes a separate performance obligation. When governance committee services are determined to be separate performance obligations, the Company determines the fair value to be allocated to this promised service. Certain contracts contain optional and additional items, which are considered marketing offers and are accounted for as separate contracts with the customer if such option is elected by the customer, unless the option provides a material right which would not be provided without entering into the contract. An option that is considered a material right is accounted for as a separate performance obligation. The transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring goods and services to the customer. A contract may contain variable consideration, including potential payments for both milestone and research and development services. For certain potential milestone payments, the Company estimates the amount of variable consideration by using the most likely amount method. In making this assessment, the Company evaluates factors such as the clinical, regulatory, commercial and other risks that must be overcome to achieve the milestone. Each reporting period the Company re-evaluates the probability of achievement of such variable consideration and any related constraints. Pieris will include variable consideration, without constraint, in the transaction price to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. For potential research and development service payments, the Company estimates the amount of variable consideration by using the expected value method, including any approved budget updates arising from additional research or development services. If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price among the performance obligations on a relative standalone selling price basis unless a portion of the transaction price is variable and meets the criteria to be allocated entirely to a performance obligation or to a distinct good or service that forms part of a single performance obligation. The Company allocates the transaction price based on the estimated standalone selling price of the underlying performance obligations or in the case of certain variable consideration to one or more performance obligations. The Company must develop assumptions that require judgment to determine the stand-alone selling price for each performance obligation identified in the contract. The Company utilizes key assumptions to determine the stand-alone selling price, which may include other comparable transactions, pricing considered in negotiating the transaction and the estimated costs to complete the respective performance obligation. Certain variable consideration is allocated specifically to one or more performance obligations in a contract when the terms of the variable consideration relate to the satisfaction of the performance obligation and the resulting amounts allocated to each performance obligation are consistent with the amount the Company would expect to receive for each performance obligation. When a performance obligation is satisfied, revenue is recognized for the amount of the transaction price, excluding estimates of variable consideration that are constrained, that is allocated to that performance obligation on a relative standalone selling price basis. Significant management judgment is required in determining the level of effort required under an arrangement and the period over which the Company is expected to complete its performance obligations under an arrangement. For performance obligations consisting of licenses and other promises, the Company utilizes judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress for purposes of recognizing revenue from non- refundable, up-front fees. The Company evaluates the measure of progress each reporting period and, if necessary, adjusts the measure of performance and related revenue recognition. If the license to the Company’s intellectual property is determined to be distinct from the other performance obligations identified in the arrangement, the Company will recognize revenue from non-refundable, up-front fees allocated to the license when the license is transferred to the customer and the customer is able to use and benefit from the license. Revenue recognized under an arrangement involving a participant that is a customer is presented as Customer Revenue. Milestones and Royalties The Company aggregates milestones into four categories: (i) research milestones, (ii) development milestones, (iii) commercial milestones, and (iv) sales milestones. Research milestones are typically achieved upon reaching certain success criteria as defined in each agreement related to developing an Anticalin protein against the specified target. Development milestones are typically reached when a compound reaches a defined phase of clinical research or passes such phase or upon gaining regulatory approvals. Commercial milestones are typically achieved when an approved pharmaceutical product reaches the status for commercial sale, including regulatory approval. Sales milestones are certain defined levels of net sales by the licensee, such as when a product first achieves global sales or annual sales of a specified amount. There is uncertainty that the events to obtain the research and development milestones will be achieved given the nature of clinical development and the stage of the Company’s technology. The Company has thus determined that all research and development milestones will be constrained until it is deemed probable that a significant revenue reversal will not occur. For revenues from research and development milestones, payments will be recognized consistent with the recognition pattern of the performance obligation to which they relate. For arrangements that include sales-based royalties, including milestone payments based on the level of sales, and for which the license is deemed to be the predominant item to which the royalties relate, the Company recognizes revenue at the later of (i) when the related sales occur, or (ii) when the performance obligation to which some or all of the royalty has been allocated has been satisfied (or partially satisfied). Commercial milestones and sales royalties are determined by sales or usage-based thresholds and will be accounted for under the royalty recognition constraint as constrained variable consideration. Contract Balances The Company recognizes a contract asset when the Company transfers goods or services to a customer before the customer pays consideration or before payment is due, excluding any amounts presented as a receivable (i.e., accounts receivable). A contract asset is an entity’s right to consideration in exchange for goods or services that the entity has transferred to a customer. The contract liabilities (i.e., deferred revenue) primarily relate to contracts where the Company has received payment but has not yet satisfied the related performance obligations. In the event of an early termination of a collaboration agreement, any contract liabilities would be recognized in the period in which all Company obligations under the agreement have been fulfilled. Costs to Obtain and Fulfill a Contract with a Customer Certain costs to obtain customer contracts, including success-based fees paid to third-party service providers, and costs to fulfill customer contracts are capitalized in accordance with FASB ASC 340, Other Assets and Deferred Costs , or ASC 340. These costs are amortized to expense on a systemic basis that is consistent with the transfer to the customer of the goods or services to which the asset relates. The Company will expense the amortization of costs to obtain customer contracts to general and administrative expense and costs to fulfill customer contracts to research and development expense. Government Grants The Company recognizes grants from governmental agencies when there is reasonable assurance that the Company will comply with the conditions attached to the grant arrangement and the grant will be received. The Company evaluates the conditions of each grant as of each reporting period to evaluate whether the Company has reached reasonable assurance of meeting the conditions of each grant arrangement and that it is expected that the grant will be received as a result of meeting the necessary conditions. Grants are recognized in the consolidated statements of operations on a systematic basis over the periods in which the Company recognizes the related costs for which the government grant is intended to compensate. Specifically, grant income related to research and development costs is recognized as such expenses are incurred. Grant income is included as a separate caption within Other income (expense), net in the consolidated statements of operations. Leases In accordance with ASU No. 2016-2, Leases (Topic 842), or ASC 842, and for each of the Company’s leases, the following is recognized: (i) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis and (ii) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term for all leases (with the exception of short-term leases) at the commencement date. The Company determines if an arrangement is a lease at inception. The Company’s contracts are determined to contain a lease within the scope of ASC 842 when all of the following criteria based on the specific circumstances of the arrangement are met: (1) there is an identified asset for which there are no substantive substitution rights; (2) the Company has the right to obtain substantially all of the economic benefits from the identified asset; and (3) the Company has the right to direct the use of the identified asset. At the commencement date, operating lease liabilities and their corresponding right-of-use assets are recorded based on the present value of future lease payments over the expected lease term. The Company’s lease agreements do not provide an implicit rate. As a result, the Company utilizes an estimated incremental borrowing rate to discount lease payments, which is based on the rate of interest the Company would have to pay to borrow a similar amount on a collateralized basis over a similar term and based on observable market data points. Certain adjustments to the right-of-use asset may be required for items such as initial direct costs paid or lease incentives received. Operating lease cost is recognized over the expected term on a straight-line basis. The Company typically only includes an initial lease term in its assessment of a lease agreement. Options to renew a lease are not included in the Company’s assessment unless there is reasonable certainty that the Company will renew. The expected lease term includes noncancellable lease periods and, when applicable, periods covered by an option to extend the lease if the Company is reasonably certain to exercise that option, as well as periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise that option. Assumptions made by the Company at the commencement date are re-evaluated upon occurrence of certain events, including a lease modification. A lease modification results in a separate contract when the modification grants the lessee an additional right of use not included in the original lease and when lease payments increase commensurate with the standalone price for the additional right of use. When a lease modification results in a separate contract, it is accounted for in the same manner as a new lease. Recent Accounting Pronouncement Adopted In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes which amends and aims to simplify accounting disclosure requirements regarding a number of topics including intraperiod tax allocation, accounting for deferred taxes when there are changes in consolidation of certain investments, tax basis step up in an acquisition and the application of effective rate changes during interim periods, among other improvements. This standard is effective for fiscal years beginning after December 15, 2020 and was adopted by the Company on January 1, 2021. Adoption of this new standard did not have a material impact on the Company. Recent Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Statements, or ASU 2016-13. ASU 2016-13 significantly changes the impairment model for most financial assets and certain other instruments. The new standard requires that expected credit losses relating to financial assets measured on an amortized cost basis and available-for-sale debt securities be recorded through an allowance for credit losses. It also limits the amount of credit losses to be recognized for available-for-sale debt securities to the amount by which carrying value exceeds fair value, and requires the reversal of previously recognized credit losses if fair value increases. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. Subsequently, in November 2018, the FASB issued ASU No. 2018-19, Codification Improvements to Topic 326, Financial Instruments-Credit Losses , which clarifies codification and corrects unintended application of the guidance. In November 2019, the FASB issued ASU No. 2019-11, Codification Improvements to Topic 326, Financial Instruments-Credit Losses , which clarifies or addresses specific issues about certain aspects of ASU 2016-13. In November 2019 the FASB also issued ASU No. 2019-10, Financial Instruments-Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates , which delays the effective date of ASU 2016-13 by three years for certain smaller reporting companies such as the Company. The guidance in ASU 2016-13 is effective for the Company for financial statements issued for fiscal years beginning after December 15, 2022 and interim periods within those fiscal years, with early adoption permitted. The Company is still evaluating the impact of the adoption of this standard. The Company has considered other recent accounting pronouncements and concluded that they are either not applicable to the business or that the effect is not expected to be material to the unaudited condensed consolidated financial statements as a result of future adoption. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue General The Company has not generated revenue from product sales. The Company has generated revenue from contracts with customers and revenue from collaboration agreements, which include upfront payments for licenses or options to obtain licenses, payments for research and development services and milestone payments. The Company recognized revenue from the following strategic partnerships and other license agreements (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Seagen $ (280) $ 366 $ 424 $ 9,326 AstraZeneca 1,607 2,182 18,309 7,227 Servier 1,867 391 3,379 10,893 Genentech 863 — 863 — Total Revenue $ 4,057 $ 2,939 $ 22,975 $ 27,446 Under the Company’s existing strategic partnerships and other license agreements, the Company could receive the following potential milestone payments (in millions): Research, Development, Regulatory & Commercial Milestones Sales Milestones AstraZeneca $ 1,096 $ 4,275 Servier 139 209 Seagen 754 450 Boston Pharmaceuticals 88 265 Genentech 834 600 Total potential milestone payments $ 2,911 $ 5,799 Strategic Partnerships Genentech On May 19, 2021, the Company and Genentech, Inc., or Genentech, entered into a Research Collaboration and License Agreement, or the Genentech Agreement, to discover, develop and commercialize locally delivered respiratory and ophthalmology therapies that leverage the Company’s proprietary Anticalin technology. Upon signing the Genentech Agreement, Genentech paid the Company a $20 million upfront fee. In addition, the Company may be eligible to receive up to approximately $1.4 billion in additional milestone payments across multiple programs, as well as tiered royalty payments on net sales at percentages ranging from the mid-single to low double-digits, subject to certain standard reductions and offsets. Under the terms of the Genentech Agreement, the Company will be responsible for discovery and preclinical development of two initial programs. The Company will be responsible for research activities following target nomination through the late-stage research go decision. The parties will then collaborate on drug candidate characterization until the development go decision. After the development go decision, Genentech will be responsible for pursuing the preclinical and clinical development of each program, and thereafter, the commercialization efforts. Each party will be responsible for the costs incurred to perform their respective responsibilities. Genentech has an option to expand the collaboration to encompass two additional programs with the payment of a $10 million fee per additional program. If Genentech exercises its option to start additional programs, payment to the Company of additional fees, milestone payments and royalties would result. Unless earlier terminated, the term of the Genentech Agreement continues until no royalty or other payment obligations are or will become due under the Genentech Agreement. The Genentech Agreement may be terminated (i) by either party based on insolvency or breach by the other party and such insolvency proceeding is not dismissed or such breach is not cured within 90 days; or (ii) after 9 months from the effective date of the Genentech Agreement, by Genentech as a whole or on a product-by-product and/or country-by-country basis upon 90 days prior written notice before the first commercial sale of a product or upon 180 days prior written notice after the first commercial sale of a product. While the Genentech Agreement allows for up to four research programs, only two research programs are initially identified and committed in the Genentech Agreement. To reach a total of up to four research programs, the Company has granted Genentech options to nominate an additional two collaboration targets of their choosing, subject to the legal availability of the target to be researched. Genentech will have three years after the effective date to nominate the subsequent targets. The Company has also granted Genentech options to replace any of the collaboration targets identified with another target. However, at no point will there be more than four identified collaboration targets for which there are ongoing research programs. The arrangement with Genentech provides for the transfer of the following goods or services: (i) exclusive research and commercial license for the collaboration programs, (ii) a non-exclusive platform improvement license, (iii) research and development services, (iv) participation in a governance committee, and (v) replacement target options on the first two programs upon a screening failure which were assessed as material rights. Management evaluated all of the promised goods or services within the contract and determined which such goods and services were separate performance obligations. The Company determined that the licenses granted, at arrangement inception, should be combined with the research and development services to be provided for the related target programs as they are not capable of being distinct. A third party would not be able to provide the research and development services due to the specific nature of the intellectual property and knowledge required to perform the services, and Genentech could not benefit from the licenses without the corresponding services. The Company determined that the participation in the governance committees was distinct as the services could be performed by an outside party. As a result, management concluded there were five separate performance obligations at the inception of the Genentech Agreement: (i) two combined performance obligations, each comprised of an exclusive research and commercial license, a non-exclusive platform improvement license, and research and development services for the first two Genentech programs, (ii) two performance obligations each comprised of a material right for a target swap option for the first two Genentech programs, and (iii) one performance obligation comprised of the participation on the governance committee. The Company allocated consideration to the performance obligations based on the relative proportion of their standalone selling prices. The Company developed standalone selling prices for licenses by applying a risk adjusted, net present value, estimate of future potential cash flows approach, which included the cost of obtaining research and development services at arm’s length from a third-party provider, as well as internal full-time equivalent costs to support these services. The Company developed the standalone selling price for committee participation by using management’s estimate of the anticipated participation hours multiplied by a market rate for comparable participants. The transaction price at inception is comprised of fixed consideration of $20.0 million in upfront fees and was allocated to each of the performance obligations based on the relative proportion of their standalone selling prices. The amounts allocated to the performance obligations for the two research programs will be recognized on a proportional performance basis through the completion of each respective estimated research term of the individual research programs. The amounts allocated to the material right for the target options will be recognized either at the time the material right expires or, if exercised, on a proportional performance basis over the estimated research term for that program along with any remaining deferred revenue associated with the replacement target. The amounts allocated to the participation on the committee will be recognized on a straight-line basis over the anticipated research term for all research programs. As of September 30, 2021, there was $18.1 million of aggregate transaction price allocated to remaining performance obligations. Under the Genentech Agreement, the Company is eligible to receive various research, development, commercial and sales milestones. There is uncertainty that the events to obtain the research and development milestones will be achieved given the nature of clinical development and the stage of the Company’s technology. The Company has determined that all other research and development milestones will be constrained until it is deemed probable that a significant revenue reversal will not occur. As of September 30, 2021, there were $5.1 million and $13.0 million of current and non-current deferred revenue, respectively, related to the Genentech Agreement. Boston Pharmaceuticals On April 24, 2021, the Company and BP Asset XII, Inc., or Boston Pharmaceuticals, a subsidiary of Boston Pharma Holdings, LLC, entered into an Exclusive Product License Agreement, or the BP Agreement, to develop PRS-342, a 4-1BB/GPC3 preclinical immuno-oncology Anticalin-antibody bispecific fusion protein. Under the terms of the BP Agreement, Boston Pharmaceuticals exclusively licensed worldwide rights to PRS-342. The Company received an upfront payment of $10.0 million and is further entitled to receive up to $352.5 million in development, regulatory and sales-based milestone payments, tiered royalties up to low double-digits on sales of PRS-342 and a percentage of consideration received by Boston Pharmaceuticals in the event of a sublicense of a program licensed under the BP Agreement or a change of control of Boston Pharmaceuticals. The Company will also contribute up to $4.0 million toward manufacturing activities. The term of the BP Agreement ends upon the expiration of all of Boston Pharmaceuticals’ payment obligations thereunder. The BP Agreement may be terminated by Boston Pharmaceuticals in its entirety for convenience beginning nine months after its effective date upon 60 days’ notice or, for any program under the BP Agreement which has received marketing approval, upon 120 days’ notice. If any program is terminated by Boston Pharmaceuticals, the Company will have full rights to continue such program. The BP Agreement may also be terminated by Boston Pharmaceuticals or the Company for an uncured material breach by the other party upon 180 days’ notice (60 days in the case of non-payment of undisputed amounts due and payable), subject to extension for an additional 180 days in certain cases and subject, in all cases, to dispute resolution procedures. The Agreement may also be terminated due to the other party’s insolvency. The Company may also terminate the BP Agreement if Boston Pharmaceuticals challenges the validity of any patents licensed under the BP Agreement, subject to certain exceptions. The Company does not have any obligations to assist in the research and development efforts of Boston Pharmaceuticals under the BP Agreement. However, the Company has an obligation to fund up to $4.0 million in costs, including out-of-pocket costs incurred by Boston Pharmaceuticals, in connection with the manufacture of products under the BP Agreement. The arrangement with Boston Pharmaceuticals provides for the transfer of the following: (i) exclusive license of PRS-342, (ii) non-exclusive Pieris platform license, (iii) initial know-how, (iv) product cell line license, and (v) materials (as each such term is defined under the BP Agreement). Management evaluated all of the promised goods or services within the BP Agreement and determined which such goods and services were separate performance obligations. The Company determined that the licenses granted, at arrangement inception, should be combined with the transfer of know-how, materials and the product cell line license. Boston Pharmaceuticals could not benefit from the exclusive and non-exclusive licenses without the corresponding transfer of know-how and materials. As a result, management concluded there was only one combined performance obligation. The transaction price at inception is comprised of fixed consideration of $10.0 million in upfront fees, offset by $4.0 million in consideration payable to Boston Pharmaceuticals to reimburse them for expected out-of-pocket manufacturing costs, for a total transaction price of $6.0 million. Management has assessed the forms of variable consideration within the BP Agreement and concluded that the payments are either constrained by the royalty recognition constraint or because management has assessed the most likely amount associated with the payments as zero. The amounts allocated to the performance obligations did not meet the criteria to be recognized over time on a proportional performance basis and thus will be recognized at a point in time. The Company determined that the performance obligation will be fully satisfied when all of the deliverables in the combined performance obligation are transferred to Boston Pharmaceuticals as that is the point at which Boston Pharmaceuticals can fully use and benefit from the license to PRS-342. The Company expects all of the deliverables to be transferred to Boston Pharmaceuticals in the fourth quarter of 2021. As of September 30, 2021, there was $5.8 million of aggregate transaction price allocated to remaining performance obligations under the BP Agreement. As of September 30, 2021, there was $5.8 million of current deferred revenue related to the BP Agreement. Seagen On February 8, 2018, the Company entered into a license and collaboration agreement, or the Seagen Collaboration Agreement, and a non-exclusive Anticalin platform technology license agreement, or the Seagen Platform License, and together with the Seagen Collaboration Agreement, the Seagen Agreements, with Seagen Inc. (formerly Seattle Genetics, Inc.), or Seagen, pursuant to which the parties will develop multiple targeted bispecific IO treatments for solid tumors and blood cancers. Under the terms of the Seagen Agreements, the companies will pursue multiple antibody-Anticalin fusion proteins during the research phase. The Seagen Agreements provide Seagen a base option to select up to three programs for further development. Prior to the initiation of a pivotal trial, the Company may opt into global co-development and U.S. commercialization of the second program and share in global costs and profits on an equal basis. Seagen will solely develop, fund and commercialize the other two programs. Seagen may also decide to select additional candidates from the initial research phase for further development in return for the payment to the Company of additional fees, milestone payments and royalties. The Seagen Platform License grants Seagen a non-exclusive license to certain intellectual property related to the Anticalin platform technology. Upon signing the Seagen Agreements, Seagen paid the Company a $30.0 million upfront fee and an additional $4.9 million was estimated to be paid for research and development services as reimbursement to the Company through the end of the research term. In addition, the Company may receive tiered royalties on net sales up to the low double-digits and up to $1.2 billion in total success-based research, development, commercial and sales milestones payments across the product candidates, depending on the successful development and commercialization of those candidates. If Seagen exercises its option to select additional candidates from the initial research phase for further development, payment to Pieris of additional fees, milestone payments and royalties would result. The term of each of the Seagen Agreements ends upon the expiration of all of Seagen’s payment obligations under each such agreement. The Seagen Collaboration Agreement may be terminated by Seagen on a product-by-product basis for convenience beginning 12 months after its effective date upon 90 days’ notice or, for any program where a pivotal study has been initiated, upon 180 days’ notice. Any program may be terminated at Seagen’s option. If any program is terminated by Seagen after a predefined preclinical stage, the Company will have full rights to continue such program. If any program is terminated by Seagen prior to such predefined preclinical stage, the Company will have the right to continue to develop such program, but will be obligated to offer a co-development option to Seagen for such program. The Seagen Collaboration Agreement may also be terminated by Seagen or the Company for an uncured material breach by the other party upon 90 days’ notice, subject to extension for an additional 90 days if the material breach relates to diligence obligations and subject, in all cases, to dispute resolution procedures. The Seagen Collaboration Agreement may also be terminated due to the other party’s insolvency and may in certain instances, including for reasons of safety, be terminated on a product-by-product basis. Each party may also terminate the Seagen Agreements if the other party challenges the validity of any patents licensed under the Seagen Agreements, subject to certain exceptions. The Seagen Platform License will terminate upon termination of the Seagen Collaboration Agreement, whether in its entirety or on a product-by-product basis. The Company determined that the Seagen Agreements should be combined and evaluated as a single arrangement under ASC 606 as they were executed on the same date. The arrangement with Seagen provides for the transfer of the following goods or services: (i) three candidate research licenses that each consist of a non-exclusive platform technology license, a co-exclusive candidate research license, and research and development services, (ii) research, development and manufacturing services associated with each candidate research license, (iii) participation on various governance committees, and (iv) two antibody target swap options which were assessed as material rights. Management evaluated all of the promised goods or services within the contract and determined which such goods and services were separate performance obligations. The Company determined that the licenses granted, at arrangement inception, should be combined with the research and development services to be provided for the related antibody target programs as they are not capable of being distinct. A third party would not be able to provide the research and development services due to the specific nature of the intellectual property and knowledge required to perform the services, and Seagen could not benefit from the licenses without the corresponding services. The Company determined that the participation on the various governance committees was distinct as the services could be performed by an outside party. As a result, management concluded there were six separate performance obligations at the inception of the Seagen Agreements: (i) three combined performance obligations, each comprised of a non-exclusive platform technology license, a co-exclusive candidate research license, and research and development services for the first three approved Seagen antibody target programs, (ii) two performance obligations each comprised of a material right for an antibody target swap option for the first and the second approved Seagen antibody target for no additional consideration, and (iii) one performance obligation comprised of the participation on the various governance committees. The Company allocated consideration to the performance obligations based on the relative proportion of their standalone selling prices. The Company developed standalone selling prices for licenses by applying a risk adjusted, net present value, estimate of future potential cash flows approach, which included the cost of obtaining research and development services at arm’s length from a third-party provider, as well as internal full-time equivalent costs to support these services. The Company developed the standalone selling price for committee participation by using management’s estimate of the anticipated participation hours multiplied by a market rate for comparable participants. The transaction price at inception is comprised of fixed consideration of $30.0 million in upfront fees and variable consideration of $4.9 million of estimated research and development services to be reimbursed as research and development occurs through the research term. The $30.0 million upfront fee, which represents the fixed consideration in the transaction price, was allocated to each of the performance obligations based on the relative proportion of their standalone selling prices. The $4.9 million in variable consideration related to the research and development services is allocated specifically to the three target program performance obligations based upon the budgeted services for each program. The amounts allocated to the performance obligations for the three research programs will be recognized on a proportional performance basis through the completion of each respective estimated research term of the individual research programs. The amounts allocated to the material right for the antibody target swap option will be recognized either at the time the material right expires or, if exercised, on a proportional performance basis over the estimated research term for that program. The amounts allocated to the participation on each of the committees will be recognized on a straight-line basis over the anticipated research term for all research programs. As of September 30, 2021, there was $22.5 million of aggregate transaction price allocated to remaining performance obligations. In June 2020, Seagen and the Company entered into amendments to the Seagen Agreements, or together, the Amendment. The Amendment extended the deadline for Seagen to nominate a second and third antibody target. As a result of the Amendment, which completed the obligations under the research term for the first antibody target, the Company recorded as revenue $4.2 million, which was previously recorded as deferred revenue, for the year ended December 31, 2020. The Company also recorded $5.0 million of milestone revenue due from Seagen during the quarter ended June 30, 2020, as it was no longer deemed probable that a significant reversal of revenue would occur, and the remaining performance obligations on first antibody target were completed. On March 24, 2021, the Company announced that Seagen made a strategic equity investment in Pieris, and that the companies had entered into a combination study agreement, or the Combination Study Agreement, to evaluate the safety and efficacy of combining Pieris’ cinrebafusp alfa with Seagen’s tucatinib, a small-molecule tyrosine kinase HER2 inhibitor, for the treatment of gastric cancer patients expressing lower HER2 levels (IHC2+/ISH- & IHC1+) as part of the upcoming phase 2 study to be conducted by Pieris. The companies have also entered into an Amended and Restated License and Collaboration Agreement, or the Second Seagen Amendment, in which their existing IO collaboration agreement has been amended relating to joint development and commercial rights for the second program in the alliance. In connection with the agreements described above, the Company and Seagen also entered into a subscription agreement, or the Seagen Subscription Agreement. Under the Second Seagen Amendment, Pieris’ option to co-develop and co-commercialize the second of three programs in the collaboration has been converted to a co-promotion option in the United States, with Seagen solely responsible for the development and overall commercialization of that program. Pieris will also be entitled to increased royalties from that program in the event that it chooses to exercise the co-promotion option. In connection with the Seagen Subscription Agreement, the Company agreed to issue to Seagen, and Seagen agreed to acquire from the Company, 3,706,174 shares of the Company’s common stock for a total purchase price of $13.0 million, or $3.51 per share, in a private placement transaction pursuant to Section 4(a)(2) of the Securities Act. The Seagen Subscription Agreement includes a provision to the effect that Seagen may ask the Company to file a registration statement to register the resale of the shares issued to Seagen, at any time beginning on the date that is 60 calendar days from the date of issuance of the shares. The Company assessed the ASC 606 implications of the Seagen Subscription Agreement and concluded that the fair value of the shares on a per share basis was $2.61 per share as of the transaction date. This resulted in a premium paid for the shares of $3.3 million, all of which was recorded in deferred revenue upon contract execution and allocated to the remaining performance obligations. The Company has concluded that the Combination Study Agreement is within the scope of ASC 808, which defines collaborative arrangements and addresses the presentation of the transactions between the two parties in the income statement and related disclosures. However, ASC 808 does not provide guidance on the recognition of consideration exchanged or accounting for the obligations that may arise between the parties. The Company has concluded that ASC 730, Research and Development , should be applied by analogy. There is no financial statement impact for the Combination Study Agreement as the value of the drug supply received from Seagen is offset against the drug supply cost. Under the Seagen Agreements, the Company is eligible to receive other various research, development, commercial and sales milestones. There is uncertainty that the events to obtain the research and development milestones will be achieved given the nature of clinical development and the stage of the Company’s technology. With the exception of the previously discussed achieved milestone, the Company has determined that all other research and development milestones will be constrained until it is deemed probable that a significant revenue reversal will not occur. As of September 30, 2021, there were $8.7 million and $10.6 million of current and non-current deferred revenue, respectively, related to the Seagen Agreements. AstraZeneca On May 2, 2017, the Company entered into a license and collaboration agreement, or the AstraZeneca Collaboration Agreement, and a non-exclusive Anticalin platform technology license agreement, or AstraZeneca Platform License, and together with the AstraZeneca Collaboration Agreement, the AstraZeneca Agreements, with AstraZeneca AB, or AstraZeneca, which became effective on June 10, 2017, following expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. Under the AstraZeneca Agreements, the parties will advance several novel inhaled Anticalin proteins. In addition to the Company’s lead inhaled drug candidate, PRS-060/AZD1402, or the AstraZeneca Lead Product, the Company and AstraZeneca will also collaborate to progress four additional novel Anticalin proteins against undisclosed targets for respiratory diseases, or the AstraZeneca Collaboration Products, and together with the AstraZeneca Lead Product, the AstraZeneca Products. The Company is responsible for advancing the AstraZeneca Lead Product through its phase 1 study, with the associated costs funded by AstraZeneca. The parties will collaborate thereafter to conduct a phase 2a study in asthma patients, with AstraZeneca continuing to fund development costs. After completion of a phase 2a study, Pieris has the option to co-develop the AstraZeneca Lead Product and also has a separate option to co-commercialize the AstraZeneca Lead Product in the United States. For the AstraZeneca Collaboration Products, the Company will be responsible for the initial discovery of the novel Anticalin proteins, after which AstraZeneca will take the lead on continued development of the AstraZeneca Collaboration Products. The Company has the option to co-develop two of the four AstraZeneca Collaboration Products beginning at a predefined preclinical stage and would also have the option to co-commercialize these two programs in the United States, while AstraZeneca will be responsible for development and commercialization of the other programs worldwide. The term of each of the AstraZeneca Agreements ends upon the expiration of all of AstraZeneca’s payment obligations under such agreement. The AstraZeneca Collaboration Agreement may be terminated by AstraZeneca in its entirety for convenience beginning 12 months after its effective date upon 90 days’ notice or, if the Company has obtained marketing approval for the marketing and sale of a product, upon 180 days’ notice. Each program may be terminated at AstraZeneca’s option; if any program is terminated by AstraZeneca, the Company will have full rights to such program. The AstraZeneca Collaboration Agreement may also be terminated by AstraZeneca or the Company for material breach upon 180 days’ notice of a material breach (or 30 days with respect to payment breach), provided that the applicable party has not cured such breach by the permitted cure period (including an additional 180 days if the breach is not susceptible to cure during the initial 180-day period) and dispute resolution procedures specified in the agreement have been followed. The AstraZeneca Collaboration Agreement may also be terminated due to the other party’s insolvency and may in certain instances be terminated on a product-by-product and/or country-by-country basis. Each party may also terminate an AstraZeneca Agreement if the other party challenges the validity of patents related to certain intellectual property licensed under such AstraZeneca Agreement, subject to certain exceptions for infringement suits, acquisitions and newly-acquired licenses. The AstraZeneca Platform License will terminate upon termination of the AstraZeneca Collaboration Agreement, on a product-by-product and/or country-by-country basis. At inception, AstraZeneca is granted the following licenses: (i) research and development license for the AstraZeneca Lead Product, (ii) commercial license for the AstraZeneca Lead Product, (iii) individual research licenses for each of the four AstraZeneca Collaboration Products, (iv) individual commercial licenses for each of the four AstraZeneca Collaboration Products, and (v) individual non-exclusive platform technology licenses for the AstraZeneca Lead Product and the four AstraZeneca Collaboration Products. AstraZeneca will be granted individual development licenses for each of the four AstraZeneca Collaboration Products upon completion of the initial discovery of Anticalin proteins. The collaboration will be managed on an overall basis by a Joint Steering Committee, or JSC, formed by an equal number of representatives from the Company and AstraZeneca. In addition to the JSC, the AstraZeneca Collaboration Agreement also requires each party to designate an alliance manager to facilitate communication and coordination of the parties’ activities under the agreement, and further requires participation of both parties on a joint development committee, or JDC, and a commercialization committee. The responsibilities of these committees vary, depending on the stage of development and commercialization of each product. Under the AstraZeneca Agreements, the Company received an upfront, non-refundable payment of $45.0 million. In addition, the Company will receive payments to conduct a phase 1 clinical study for the AstraZeneca Lead Product. The Company is also eligible to receive research, development, commercial, sales milestone payments and royalty payments. The Company may receive tiered royalties on sales of potential products commercialized by AstraZeneca and for co-developed products, gross margin share on worldwide sales equal to the Company’s level of committed investment. The Company determined that the AstraZeneca Agreements should be combined and evaluated as a single arrangement under ASC 606 as they were executed on the same date. The arrangement with AstraZeneca, including the impact of any modifications, provides for the transfer of the following goods and services: (i) five non-exclusive platform technology licenses, (ii) research and development license for the AstraZeneca Lead Product, (iii) commercial license for the AstraZeneca Lead Product, (iv) development and manufacturing services for the AstraZeneca Lead Product (or the phase 1 services), (v) technology transfer services for the AstraZeneca Lead Product, (vi) research services related to the AstraZeneca Lead Product, (vii) participation on each of the committees, (viii) four research licenses for the AstraZeneca Collaboration Products, (ix) four commercial licenses for the AstraZeneca Collaboration Products, (x) research services for the AstraZeneca Collaboration Products and (xi) certain phase 2a services for the AstraZeneca Lead Product. Additionally, as the development lice |
Grant Income
Grant Income | 9 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
Grant Income | Grant Income One of the Company's proprietary respiratory assets is PRS-220, an oral inhaled Anticalin protein targeting connective tissue growth factor, or CTGF, and it is being developed as a local treatment for idiopathic pulmonary fibrosis. In June 2021, the Company was selected to receive a €14.2 million (approximately $17.0 million) grant from the Bavarian Ministry of Economic Affairs, Regional Development and Energy (the Bavarian Grant) supporting research and development for post-acute sequelae of SARS-CoV-2 infection (PASC) pulmonary fibrosis, or PASC-PF, also known as post-COVID-19 syndrome pulmonary fibrosis, or “long COVID”. The Bavarian Grant provides partial reimbursement for qualifying research and development activities on PRS-220, including drug manufacturing costs, activities and costs to support an IND filing, and phase 1 clinical trials costs. The Bavarian Grant provides reimbursement of qualifying costs incurred through August 2023, which follows the expected development timeline of this program. Qualifying costs incurred may exceed the annual grant funding thresholds. If the Company receives any proceeds from the sale of or licensing income from PRS-220, the funds available for reimbursement will be reduced proportionally if they are obtained prior to August 2023. The Company is required to communicate such proceeds in each case with the request to draw-down the funds. |
Cash, cash equivalents and inve
Cash, cash equivalents and investments | 9 Months Ended |
Sep. 30, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Cash, cash equivalents and investments | Cash, cash equivalents and investmentsAs of September 30, 2021 and December 31, 2020, cash equivalents were $34.9 million and $64.0 million, respectively, and are comprised of money market accounts, all of which are Level 1 investments. The Company did not hold any Level 2 or 3 investments as of September 30, 2021 and did not have any transfers of investment between levels for the three and nine months ended September 30, 2021.The Company did not record any realized gains or losses from the maturity of available-for-sale securities during the three and nine months ended September 30, 2021. The Company recorded $0.2 million and de minimis realized losses from the maturity of available-for-sale securities for the three and nine months ended September 30, 2020, respectively. |
Property and equipment, net
Property and equipment, net | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment, net | Property and equipment, net Property and equipment are summarized as follows (in thousands): September 30, December 31, 2021 2020 Laboratory furniture and equipment $ 11,059 $ 11,188 Office furniture and equipment 2,009 2,120 Computer equipment 401 394 Leasehold improvements 13,434 14,159 Property and equipment, cost 26,903 27,861 Accumulated depreciation (7,290) (5,815) Property and equipment, net $ 19,613 $ 22,046 |
Accrued Expenses
Accrued Expenses | 9 Months Ended |
Sep. 30, 2021 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses Accrued expenses and other current liabilities consisted of the following (in thousands): September 30, December 31, 2021 2020 Accrued accounts payable $ 2,732 $ 1,220 Collaboration cost-sharing obligation 2,543 — Research and development fees 8,422 2,001 Compensation expense 2,914 2,759 Accrued license obligations 1,655 358 Lease liabilities 1,032 1,030 Audit and tax fees 165 128 Other current liabilities 222 235 Total $ 19,685 $ 7,731 |
Net Loss per Share
Net Loss per Share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | Net Loss per Share Basic net loss per share is calculated by dividing net income loss by the weighted average shares outstanding during the period, without consideration for common stock equivalents. Diluted net loss per share is calculated by adjusting weighted average shares outstanding for the dilutive effect of common stock equivalents outstanding for the period, determined using the treasury-stock and if-converted methods. For purposes of the diluted net loss per share calculation, preferred stock, stock options and warrants are considered to be common stock equivalents but have been excluded from the calculation of diluted net loss per share, as their effect would be anti-dilutive for all periods presented. Therefore, basic and diluted net loss per share were the same for all periods presented. As of September 30, 2021 and 2020, and as calculated using the treasury stock method, approximately 36.7 million and 37.3 million of weighted average shares, respectively, were excluded from the calculation of diluted weighted average shares outstanding as their effect was antidilutive. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity The Company had 300,000,000 shares authorized and 71,504,630 and 56,002,815 shares of common stock issued and outstanding as of September 30, 2021 and December 31, 2020, respectively, with a par value of $0.001 per share. The Company had 10,000,000 shares authorized and 15,617 shares of preferred stock issued and outstanding as of September 30, 2021. The Company had 10,000,000 shares authorized and 14,429 shares of preferred stock issued and outstanding as of December 31, 2020. Preferred stock has a par value of $0.001 per share, and consists of the following: • Series A Convertible, 85 and 2,907 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively. • Series B Convertible, 4,026 and 5,000 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively. • Series C Convertible, 3,506 and 3,522 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively. • Series D Convertible, 3,000 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively. • Series E Convertible, 5,000 and 0 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively. 2020 Employee, Director and Consultant Equity Incentive Plan At the 2020 Annual Meeting of Stockholders, the Company's stockholders approved the 2020 Employee, Director and Consultant Equity Incentive Plan, or the 2020 Plan. The 2020 Plan permits the Company to issue up to 3,500,000 shares of common stock pursuant to awards granted under the 2020 Plan. Upon approval of the 2020 Plan, the 2019 Employee, Director and Consultant Equity Incentive Plan, or the 2019 Plan, was terminated; all unissued options were canceled and no additional awards will be made thereunder. All outstanding awards under the 2019 Plan will remain in effect and any awards forfeited from the outstanding awards will be allocated back into the 2020 Plan. There were approximately 1,579,678 shares remaining and available for grant under the 2019 Plan that terminated upon original approval of the 2020 Plan. At the 2021 Annual Meeting of Stockholders, held on June 25, 2021, the Company’s stockholders approved the first amendment to the 2020 Plan to add 2,250,000 shares for issuance under the 2020 Plan. Series D Preferred Stock Conversion On March 31, 2020, the Company and certain entities affiliated with Biotechnology Value Fund, L.P., or BVF, entered into an exchange agreement pursuant to which, on April 1, 2020, BVF exchanged an aggregate of 3,000,000 shares of the Company’s common stock owned by BVF for an aggregate of 3,000 shares of Series D Preferred Stock. The Company designated 3,000 shares of its authorized and unissued preferred stock as Series D Preferred Stock and filed a Certificate of Designation of Series D Convertible Preferred Stock of Pieris Pharmaceuticals, Inc. with the Nevada Secretary of State. Series E Preferred Stock Conversion On May 20, 2021, the Company and certain entities affiliated with BVF entered into an exchange agreement pursuant to which, BVF exchanged an aggregate of 5,000,000 shares of the Company’s common stock owned by BVF for an aggregate of 5,000 shares of Series E Preferred Stock. The Company designated 5,000 shares of its authorized and unissued preferred stock as Series E Preferred Stock and filed a Certificate of Designation of Series E Convertible Preferred Stock of Pieris Pharmaceuticals, Inc., or the Series E Certificate of Designation, with the Nevada Secretary of State. As described below, the Series E Preferred Stock has substantially the same terms as the Company’s Series D Convertible Preferred Stock, par value $0.001 per share, issued in April 2020; Series C Convertible Preferred Stock, par value $0.001 per share, issued in November 2019; Series B Convertible Preferred Stock, par value $0.001 per share, issued in January 2019; and Series A Convertible Preferred Stock, par value $0.001 per share, issued in June 2016, all currently held by entities affiliated with BVF. Each share of Series E Preferred Stock is convertible into 1,000 shares of Common Stock (subject to adjustment as provided in the Series E Certificate of Designation) at any time at the option of the holder, provided that the holder is prohibited from converting the Series E Preferred Stock into shares of Common Stock if, as a result of such conversion, the holder, together with its affiliates, would own more than 9.99% of the total number of shares of Common Stock then issued and outstanding, or the Beneficial Ownership Limitation. The holder may reset the Beneficial Ownership Limitation to a higher or lower number (not to exceed 19.99% of the total number of Common Shares issued and outstanding immediately after giving effect to a conversion) upon providing written notice to the Company. Any such notice providing for an increase to the Beneficial Ownership Limitation will be effective 61 days after delivery to the Company. In the event of the Company’s liquidation, dissolution, or winding up, subject to the rights of holders of Senior Securities (defined below), holders of Series E Preferred Stock are entitled to receive a payment equal to $0.001 per share of Series E Preferred Stock before any proceeds are distributed to the holders of Common Stock and Junior Securities (defined below) and pari passu with any distributions to the holders of the Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock, plus an additional amount equal to any dividends declared but unpaid on such shares. However, if the assets of the Company are insufficient to comply with the preceding sentence, then all remaining assets of the Company shall be distributed ratably to holders of the shares of the Series E Preferred Stock and Parity Securities (defined below). Shares of Series E Preferred Stock generally have no voting rights, except as required by law and except that the consent of holders of a majority of the then outstanding Series E Preferred Stock is required to amend the terms of the Series E Certificate of Designation. Holders of Series E Preferred Stock are entitled to receive any dividends payable to holders of Common Stock, and rank: • senior to all of the Common Stock; • senior to any class or series of capital stock of the Company created after the designation of the Series E Preferred Stock specifically ranking by its terms junior to the Series E Preferred Stock, or the Junior Securities; • on parity with all shares of Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock, Series D Preferred Stock and any class or series of capital stock of the Company created after the designation of the Series E Preferred Stock specifically ranking by its terms on parity with the Series E Preferred Stock, or the Parity Securities; and • junior to any class or series of capital stock of the Company created after the designation of the Series E Preferred Stock specifically ranking by its terms senior to the Series E Preferred Stock, or the Senior Securities, in each case, as to distributions of assets upon the Company’s liquidation, dissolution or winding up whether voluntarily or involuntarily and/or the right to receive dividends. Open Market Sales Agreements In August 2019, the Company entered into a sales agreement with Jefferies LLC pursuant to which the Company may offer and sell shares of its common stock, from time to time, up to an aggregate amount of gross sales proceeds of $50.0 million through an at-the-market (ATM) Program, the 2019 ATM Program, under a shelf registration statement on Form S-3. Through September 30, 2021, the Company sold $23.2 million of common shares under the 2019 ATM Program. In August 2021, the 2019 ATM Program expired. In August 2021, the Company established a second ATM offering program, or the 2021 ATM Program, under the existing sales agreement with Jefferies LLC, pursuant to which the Company may offer and sell shares of its common stock, par value $0.001 per share, from time to time, up to an aggregate amount of gross sales proceeds of $50.0 million. The 2021 ATM Program is offered under a shelf registration statement on Form S-3 that was filed with and declared effective by the SEC in August 2021. For the three months ended September 30, 2021, the Company sold 4.6 million shares for gross proceeds of $24.0 million under both ATM programs at an average stock price of $5.27. For the nine months ended September 30, 2021, the Company sold 7.6 million shares for gross proceeds of $36.7 million under both ATM programs at an average stock price of $4.86. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Leases | Leases The Company currently leases office space in Boston, Massachusetts. In August 2015, the Company entered into a sublease to lease approximately 3,950 square feet. The sublease originally expired on February 27, 2022 or such earlier date pursuant to the termination provisions of the sublease. In July 2021, the Company extended the lease for this office space for an additional 10 months through December 31, 2022. The Company also leased approximately 19,000 square feet of office and laboratory space in Freising, Germany under four agreements, or the Freising Leases, including three leases for space on three floors of the same building and a letter agreement for additional conference room space within the building. The Freising Leases expired on March 31, 2020. In October 2018, Pieris GmbH entered into a new lease for office and laboratory space located in Hallbergmoos, Germany, or the Hallbergmoos Lease. Pieris GmbH moved its operations, formerly conducted in Freising, Germany, to the Hallbergmoos facility in February 2020. Under the Hallbergmoos Lease, Pieris GmbH will rent approximately 105,000 square feet, of which approximately 98,400 square feet were delivered by the lessor in February 2020 and approximately 5,100 square feet were delivered by the lessor in May 2020. An additional approximately 22,300 square feet is expected to be delivered by the lessor by October 2024. Pieris GmbH has a first right of refusal to lease an additional approximate 13,400 square feet. The Hallbergmoos Lease provides for an initial rental term of 12.5 years which commenced in February 2020 when the leased property was delivered to Pieris GmbH. Pieris GmbH also has an option to extend the Hallbergmoos Lease for two additional 60-month periods. The Company is not reasonably certain to exercise the option to extend the lease expiration beyond its current expiration date. Pieris GmbH may sublease space within the leased property with lessor’s consent, which may not be unreasonably withheld. Monthly base rent for the initial 105,000 square feet of the leased property, including parking spaces, will total approximately $0.2 million per month, which amount shall be adjusted starting on the second anniversary of the commencement date by an amount equal to the German consumer price index. In addition to the base rent, Pieris GmbH is also responsible for certain administrative and operational costs in accordance with the Hallbergmoos Lease. Pieris GmbH provided a security deposit of $0.8 million as required by the Hallbergmoos Lease. The Company will serve as a guarantor for the Hallbergmoos Lease. The Hallbergmoos Lease included $11.5 million of tenant improvements allowance for normal tenant improvements, for which construction began in March 2019. The Company capitalized the leasehold incentives which are included in Property and equipment, net on the Condensed Consolidated Balance Sheet and are amortized on a straight-line basis over the shorter of the useful life or the remaining lease term. The lease incentive allowance was also factored in as a reduction to the right-of-use asset upon the adoption of ASC 842. The following table summarizes operating lease costs included in operating expenses (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Operating lease costs $ 370 $ 360 $ 1,126 $ 1,134 Variable lease costs (1) 198 192 562 536 Total lease cost $ 568 $ 552 $ 1,688 $ 1,670 (1) Variable lease costs include certain additional charges for operating costs, including insurance, maintenance, taxes, utilities, and other costs incurred, which are billed based on both usage and as a percentage of the Company’s share of total square footage. The following table summarizes the weighted-average remaining lease term and discount rate: As of September 30, 2021 Weighted-average remaining lease term (years) 10.7 Weighted-average discount rate 10.5 % Cash paid for amounts included in the measurement of the lease liabilities was $0.6 million and $1.9 million, respectively, for the three and nine months ended September 30, 2021. Cash paid for amounts included in the measurement of the lease liabilities was $0.6 million and $1.5 million, respectively, for the three and nine months ended September 30, 2020. As of September 30, 2021, the maturities of the Company’s operating lease liabilities and future minimum lease payments were as follows (in thousands): Total 2021 $ 624 2022 2,527 2023 2,288 2024 2,288 2025 2,288 Thereafter 15,065 Total undiscounted lease payments 25,080 Less: present value adjustment (9,604) Present value of lease liabilities $ 15,476 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying condensed consolidated financial statements of Pieris Pharmaceuticals, Inc. and its wholly-owned subsidiaries were prepared in accordance with U.S. GAAP. The condensed consolidated financial statements include the accounts of all subsidiaries. All intercompany balances and transactions have been eliminated. |
Use of Estimates | The preparation of the financial statements in accordance with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses and the related disclosures at the date of the financial statements and during the reporting period. Significant estimates are used for, but are not limited to, revenue recognition; deferred tax assets, deferred tax liabilities and valuation allowances; determination of the incremental borrowing rate to calculate right-of-use assets and lease liabilities; beneficial conversion features; fair value of stock options, preferred stock, and warrants; and various accruals. Management evaluates its estimates on an ongoing basis. Actual results and outcomes could differ materially from management’s estimates, judgments and assumptions. |
Cash, Cash Equivalents and Investments | The Company determines the appropriate classification of its investments at the time of purchase. All liquid investments with original maturities of 90 days or less from the purchase date and for which there is an active market are considered to be cash equivalents. The Company’s investments are comprised of money market, asset backed securities, government treasuries and corporate bonds that are classified as available-for-sale in accordance with Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC, 320, Investments—Debt and Equity Securities . The Company classifies investments available to fund current operations as current assets on its balance sheets. Available-for-sale investments are recorded at fair value, with unrealized gains or losses included in accumulated other comprehensive loss on the Company’s balance sheets. Realized gains and losses are determined using the specific identification method and are included as a component of other income. |
Concentration of Credit Risk and Off-Balance Sheet Risk | The Company has no financial instruments with off-balance sheet risk such as foreign exchange contracts, option contracts or other foreign hedging arrangements. Financial instruments that subject Pieris to concentrations of credit risk include cash and cash equivalents, investments, and accounts receivable. The Company’s cash, cash equivalents, and investments are held in accounts with financial institutions that management believes are creditworthy. The Company’s investment policy includes guidelines on the quality of the institutions and financial instruments and defines allowable investments that the Company believes minimizes the exposure to concentration of credit risk. The Company has not experienced any credit losses in such accounts and does not believe it is exposed to any significant credit risk on these funds. Accounts receivable primarily consist of amounts due under strategic partnership and other license agreements with major multi-national pharmaceutical companies for which the Company does not obtain collateral. |
Fair Value Measurement | The Company is required to disclose information on all assets and liabilities reported at fair value that enables an assessment of the inputs used in determining the reported fair values. FASB ASC Topic 820, Fair Value Measurement and Disclosures , established a hierarchy of inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the financial instrument based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the inputs that market participants would use in pricing the financial instrument and are developed based on the best information available in the circumstances. The fair value hierarchy applies only to the valuation inputs used in determining the reported or disclosed fair value of the financial instruments and is not a measure of the investment credit quality. Fair value measurements are classified and disclosed in one of the following three categories: • Level 1 inputs are quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. • Level 2 utilizes quoted market prices in markets that are not active, broker or dealer quotations or alternative pricing sources with reasonable levels of price transparency. • Level 3 inputs are unobservable inputs for the asset or liability in which there is little, if any, market activity for the asset or liability at the measurement date. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Financial instruments measured at fair value on a recurring basis include cash equivalents (see Note 4). |
Property and Equipment | Property and equipment are recorded at acquisition cost, less accumulated depreciation and impairment. Depreciation on property and equipment is calculated using the straight-line method over the remaining estimated useful lives of the assets. Maintenance and repairs to these assets are charged to expenses as occurred. |
Revenue Recognition | The Company has entered into several licensing agreements with collaboration partners for the development of Anticalin therapeutics against a variety of targets. The terms of these agreements provide for the transfer of multiple goods or services which may include: (i) licenses, or options to obtain licenses, to the Company’s Anticalin technology and/or specific programs and (ii) research and development activities to be performed on behalf of or with a collaborative partner. Payments to Pieris under these agreements may include upfront fees (which include license and option fees), payments for research and development activities, payments based upon the achievement of certain milestones and royalties on product sales. There are no performance, cancellation, termination or refund provisions in any of the arrangements that could result in material financial consequences to Pieris. Collaborative Arrangements The Company considers the nature and contractual terms of an arrangement and assesses whether the arrangement involves a joint operating activity pursuant to which it is an active participant and exposed to significant risks and rewards with respect to the arrangement. If the Company is an active participant and exposed to the significant risks and rewards with respect to the arrangement, it accounts for these arrangements pursuant to ASC 808, Collaborative Arrangements , or ASC 808, and applies a systematic and rational approach to recognize revenue. The Company classifies payments received as revenue and payments made as a reduction of revenue in the period in which they are earned. Revenue recognized under a collaborative arrangement involving a participant that is not a customer is presented as Collaboration Revenue in the Statement of Operations. Revenue from Contracts with Customers In accordance with ASC 606, revenue is recognized when a customer obtains control of promised goods or services. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled in exchange for these goods and services. To achieve this core principle, the Company applies the following five steps: 1) identify the customer contract; 2) identify the contract’s performance obligations; 3) determine the transaction price; 4) allocate the transaction price to the performance obligations; and 5) recognize revenue when or as a performance obligation is satisfied. The Company evaluates all promised goods and services within a customer contract and determines which of such goods and services are separate performance obligations. This evaluation includes an assessment of whether the good or service is capable of being distinct and whether the good or service is separable from other promises in the contract. In assessing whether promised goods or services are distinct, the Company considers factors such as the stage of development of the underlying intellectual property and the capabilities of the customer to develop the intellectual property on their own or whether the required expertise is readily available. Licensing arrangements are analyzed to determine whether the promised goods or services, which often include licenses, research and development services and governance committee services, are distinct or whether they must be accounted for as part of a combined performance obligation. If the license is considered not to be distinct, the license would then be combined with other promised goods or services as a combined performance obligation. If the Company is involved in a governance committee, it assesses whether its involvement constitutes a separate performance obligation. When governance committee services are determined to be separate performance obligations, the Company determines the fair value to be allocated to this promised service. Certain contracts contain optional and additional items, which are considered marketing offers and are accounted for as separate contracts with the customer if such option is elected by the customer, unless the option provides a material right which would not be provided without entering into the contract. An option that is considered a material right is accounted for as a separate performance obligation. The transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring goods and services to the customer. A contract may contain variable consideration, including potential payments for both milestone and research and development services. For certain potential milestone payments, the Company estimates the amount of variable consideration by using the most likely amount method. In making this assessment, the Company evaluates factors such as the clinical, regulatory, commercial and other risks that must be overcome to achieve the milestone. Each reporting period the Company re-evaluates the probability of achievement of such variable consideration and any related constraints. Pieris will include variable consideration, without constraint, in the transaction price to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. For potential research and development service payments, the Company estimates the amount of variable consideration by using the expected value method, including any approved budget updates arising from additional research or development services. If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price among the performance obligations on a relative standalone selling price basis unless a portion of the transaction price is variable and meets the criteria to be allocated entirely to a performance obligation or to a distinct good or service that forms part of a single performance obligation. The Company allocates the transaction price based on the estimated standalone selling price of the underlying performance obligations or in the case of certain variable consideration to one or more performance obligations. The Company must develop assumptions that require judgment to determine the stand-alone selling price for each performance obligation identified in the contract. The Company utilizes key assumptions to determine the stand-alone selling price, which may include other comparable transactions, pricing considered in negotiating the transaction and the estimated costs to complete the respective performance obligation. Certain variable consideration is allocated specifically to one or more performance obligations in a contract when the terms of the variable consideration relate to the satisfaction of the performance obligation and the resulting amounts allocated to each performance obligation are consistent with the amount the Company would expect to receive for each performance obligation. When a performance obligation is satisfied, revenue is recognized for the amount of the transaction price, excluding estimates of variable consideration that are constrained, that is allocated to that performance obligation on a relative standalone selling price basis. Significant management judgment is required in determining the level of effort required under an arrangement and the period over which the Company is expected to complete its performance obligations under an arrangement. For performance obligations consisting of licenses and other promises, the Company utilizes judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress for purposes of recognizing revenue from non- refundable, up-front fees. The Company evaluates the measure of progress each reporting period and, if necessary, adjusts the measure of performance and related revenue recognition. If the license to the Company’s intellectual property is determined to be distinct from the other performance obligations identified in the arrangement, the Company will recognize revenue from non-refundable, up-front fees allocated to the license when the license is transferred to the customer and the customer is able to use and benefit from the license. Revenue recognized under an arrangement involving a participant that is a customer is presented as Customer Revenue. Milestones and Royalties The Company aggregates milestones into four categories: (i) research milestones, (ii) development milestones, (iii) commercial milestones, and (iv) sales milestones. Research milestones are typically achieved upon reaching certain success criteria as defined in each agreement related to developing an Anticalin protein against the specified target. Development milestones are typically reached when a compound reaches a defined phase of clinical research or passes such phase or upon gaining regulatory approvals. Commercial milestones are typically achieved when an approved pharmaceutical product reaches the status for commercial sale, including regulatory approval. Sales milestones are certain defined levels of net sales by the licensee, such as when a product first achieves global sales or annual sales of a specified amount. There is uncertainty that the events to obtain the research and development milestones will be achieved given the nature of clinical development and the stage of the Company’s technology. The Company has thus determined that all research and development milestones will be constrained until it is deemed probable that a significant revenue reversal will not occur. For revenues from research and development milestones, payments will be recognized consistent with the recognition pattern of the performance obligation to which they relate. For arrangements that include sales-based royalties, including milestone payments based on the level of sales, and for which the license is deemed to be the predominant item to which the royalties relate, the Company recognizes revenue at the later of (i) when the related sales occur, or (ii) when the performance obligation to which some or all of the royalty has been allocated has been satisfied (or partially satisfied). Commercial milestones and sales royalties are determined by sales or usage-based thresholds and will be accounted for under the royalty recognition constraint as constrained variable consideration. Contract Balances The Company recognizes a contract asset when the Company transfers goods or services to a customer before the customer pays consideration or before payment is due, excluding any amounts presented as a receivable (i.e., accounts receivable). A contract asset is an entity’s right to consideration in exchange for goods or services that the entity has transferred to a customer. The contract liabilities (i.e., deferred revenue) primarily relate to contracts where the Company has received payment but has not yet satisfied the related performance obligations. In the event of an early termination of a collaboration agreement, any contract liabilities would be recognized in the period in which all Company obligations under the agreement have been fulfilled. Costs to Obtain and Fulfill a Contract with a Customer Certain costs to obtain customer contracts, including success-based fees paid to third-party service providers, and costs to fulfill customer contracts are capitalized in accordance with FASB ASC 340, Other Assets and Deferred Costs , or ASC 340. These costs are amortized to expense on a systemic basis that is consistent with the transfer to the customer of the goods or services to which the asset relates. The Company will expense the amortization of costs to obtain customer contracts to general and administrative expense and costs to fulfill customer contracts to research and development expense. Government Grants |
Leases | In accordance with ASU No. 2016-2, Leases (Topic 842), or ASC 842, and for each of the Company’s leases, the following is recognized: (i) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis and (ii) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term for all leases (with the exception of short-term leases) at the commencement date. The Company determines if an arrangement is a lease at inception. The Company’s contracts are determined to contain a lease within the scope of ASC 842 when all of the following criteria based on the specific circumstances of the arrangement are met: (1) there is an identified asset for which there are no substantive substitution rights; (2) the Company has the right to obtain substantially all of the economic benefits from the identified asset; and (3) the Company has the right to direct the use of the identified asset. At the commencement date, operating lease liabilities and their corresponding right-of-use assets are recorded based on the present value of future lease payments over the expected lease term. The Company’s lease agreements do not provide an implicit rate. As a result, the Company utilizes an estimated incremental borrowing rate to discount lease payments, which is based on the rate of interest the Company would have to pay to borrow a similar amount on a collateralized basis over a similar term and based on observable market data points. Certain adjustments to the right-of-use asset may be required for items such as initial direct costs paid or lease incentives received. Operating lease cost is recognized over the expected term on a straight-line basis. The Company typically only includes an initial lease term in its assessment of a lease agreement. Options to renew a lease are not included in the Company’s assessment unless there is reasonable certainty that the Company will renew. The expected lease term includes noncancellable lease periods and, when applicable, periods covered by an option to extend the lease if the Company is reasonably certain to exercise that option, as well as periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise that option. Assumptions made by the Company at the commencement date are re-evaluated upon occurrence of certain events, including a lease modification. A lease modification results in a separate contract when the modification grants the lessee an additional right of use not included in the original lease and when lease payments increase commensurate with the standalone price for the additional right of use. When a lease modification results in a separate contract, it is accounted for in the same manner as a new lease. |
Recent Accounting Pronouncements Adopted and Not Yet Adopted | In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes which amends and aims to simplify accounting disclosure requirements regarding a number of topics including intraperiod tax allocation, accounting for deferred taxes when there are changes in consolidation of certain investments, tax basis step up in an acquisition and the application of effective rate changes during interim periods, among other improvements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Statements, or ASU 2016-13. ASU 2016-13 significantly changes the impairment model for most financial assets and certain other instruments. The new standard requires that expected credit losses relating to financial assets measured on an amortized cost basis and available-for-sale debt securities be recorded through an allowance for credit losses. It also limits the amount of credit losses to be recognized for available-for-sale debt securities to the amount by which carrying value exceeds fair value, and requires the reversal of previously recognized credit losses if fair value increases. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. Subsequently, in November 2018, the FASB issued ASU No. 2018-19, Codification Improvements to Topic 326, Financial Instruments-Credit Losses , which clarifies codification and corrects unintended application of the guidance. In November 2019, the FASB issued ASU No. 2019-11, Codification Improvements to Topic 326, Financial Instruments-Credit Losses , which clarifies or addresses specific issues about certain aspects of ASU 2016-13. In November 2019 the FASB also issued ASU No. 2019-10, Financial Instruments-Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates , which delays the effective date of ASU 2016-13 by three years for certain smaller reporting companies such as the Company. The guidance in ASU 2016-13 is effective for the Company for financial statements issued for fiscal years beginning after December 15, 2022 and interim periods within those fiscal years, with early adoption permitted. The Company is still evaluating the impact of the adoption of this standard. The Company has considered other recent accounting pronouncements and concluded that they are either not applicable to the business or that the effect is not expected to be material to the unaudited condensed consolidated financial statements as a result of future adoption. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Property and Equipment, Useful Lives | The estimated useful life of the different groups of property and equipment is as follows: Asset Classification Estimated useful life (in years) Leasehold improvements shorter of useful life or remaining life of the lease Laboratory furniture and equipment 8 - 14 Office furniture and equipment 5 - 13 Computer and equipment 3 - 7 Property and equipment are summarized as follows (in thousands): September 30, December 31, 2021 2020 Laboratory furniture and equipment $ 11,059 $ 11,188 Office furniture and equipment 2,009 2,120 Computer equipment 401 394 Leasehold improvements 13,434 14,159 Property and equipment, cost 26,903 27,861 Accumulated depreciation (7,290) (5,815) Property and equipment, net $ 19,613 $ 22,046 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Recognized Revenues From Licensing Agreements and Strategic Partnerships | The Company recognized revenue from the following strategic partnerships and other license agreements (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Seagen $ (280) $ 366 $ 424 $ 9,326 AstraZeneca 1,607 2,182 18,309 7,227 Servier 1,867 391 3,379 10,893 Genentech 863 — 863 — Total Revenue $ 4,057 $ 2,939 $ 22,975 $ 27,446 |
Schedule of Potential Milestone Payments | Under the Company’s existing strategic partnerships and other license agreements, the Company could receive the following potential milestone payments (in millions): Research, Development, Regulatory & Commercial Milestones Sales Milestones AstraZeneca $ 1,096 $ 4,275 Servier 139 209 Seagen 754 450 Boston Pharmaceuticals 88 265 Genentech 834 600 Total potential milestone payments $ 2,911 $ 5,799 |
Property and equipment, net (Ta
Property and equipment, net (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | The estimated useful life of the different groups of property and equipment is as follows: Asset Classification Estimated useful life (in years) Leasehold improvements shorter of useful life or remaining life of the lease Laboratory furniture and equipment 8 - 14 Office furniture and equipment 5 - 13 Computer and equipment 3 - 7 Property and equipment are summarized as follows (in thousands): September 30, December 31, 2021 2020 Laboratory furniture and equipment $ 11,059 $ 11,188 Office furniture and equipment 2,009 2,120 Computer equipment 401 394 Leasehold improvements 13,434 14,159 Property and equipment, cost 26,903 27,861 Accumulated depreciation (7,290) (5,815) Property and equipment, net $ 19,613 $ 22,046 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following (in thousands): September 30, December 31, 2021 2020 Accrued accounts payable $ 2,732 $ 1,220 Collaboration cost-sharing obligation 2,543 — Research and development fees 8,422 2,001 Compensation expense 2,914 2,759 Accrued license obligations 1,655 358 Lease liabilities 1,032 1,030 Audit and tax fees 165 128 Other current liabilities 222 235 Total $ 19,685 $ 7,731 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Operating Lease Costs, Lease Term and Discount Rate | The following table summarizes operating lease costs included in operating expenses (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Operating lease costs $ 370 $ 360 $ 1,126 $ 1,134 Variable lease costs (1) 198 192 562 536 Total lease cost $ 568 $ 552 $ 1,688 $ 1,670 (1) Variable lease costs include certain additional charges for operating costs, including insurance, maintenance, taxes, utilities, and other costs incurred, which are billed based on both usage and as a percentage of the Company’s share of total square footage. The following table summarizes the weighted-average remaining lease term and discount rate: As of September 30, 2021 Weighted-average remaining lease term (years) 10.7 Weighted-average discount rate 10.5 % |
Maturities of Operating Lease Liabilities | As of September 30, 2021, the maturities of the Company’s operating lease liabilities and future minimum lease payments were as follows (in thousands): Total 2021 $ 624 2022 2,527 2023 2,288 2024 2,288 2025 2,288 Thereafter 15,065 Total undiscounted lease payments 25,080 Less: present value adjustment (9,604) Present value of lease liabilities $ 15,476 |
Corporate Information - Narrati
Corporate Information - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | May 31, 2013 | |
Business Acquisition [Line Items] | ||||||
Cash, cash equivalents and investments | $ 125,100 | $ 125,100 | ||||
Net loss | (16,536) | $ (14,283) | (36,206) | $ (22,830) | ||
Accumulated deficit | $ (247,612) | $ (247,612) | $ (211,406) | |||
Pieris Pharmaceuticals GmbH | ||||||
Business Acquisition [Line Items] | ||||||
Ownership interest acquired (as a percent) | 100.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Schedule of Property, Plant and Equipment, Useful Lives (Details) | 9 Months Ended |
Sep. 30, 2021 | |
Laboratory furniture and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 8 years |
Laboratory furniture and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 14 years |
Office furniture and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 5 years |
Office furniture and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 13 years |
Computer equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 3 years |
Computer equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 7 years |
Revenue - Revenue From Licensin
Revenue - Revenue From Licensing Agreements and Strategic Partnerships (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2021 | Sep. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||||
Total revenue | $ 4,057 | $ 2,939 | $ 22,975 | $ 27,446 | ||
Seagen | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenue | (280) | 366 | 424 | 9,326 | ||
AstraZeneca | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenue | $ 13,000 | 1,607 | $ 13,000 | 2,182 | 18,309 | 7,227 |
Servier | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenue | 1,867 | 391 | 3,379 | 10,893 | ||
Genentech | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenue | $ 863 | $ 0 | $ 863 | $ 0 |
Revenue - Potential Milestone P
Revenue - Potential Milestone Payments (Details) - Strategic Partnerships and Other License Agreements $ in Millions | Sep. 30, 2021USD ($) |
Research, Development, Regulatory & Commercial Milestones | |
Revenue Recognition, Milestone Method [Line Items] | |
Total potential milestone payments | $ 2,911 |
Research, Development, Regulatory & Commercial Milestones | AstraZeneca | |
Revenue Recognition, Milestone Method [Line Items] | |
Total potential milestone payments | 1,096 |
Research, Development, Regulatory & Commercial Milestones | Servier | |
Revenue Recognition, Milestone Method [Line Items] | |
Total potential milestone payments | 139 |
Research, Development, Regulatory & Commercial Milestones | Seagen | |
Revenue Recognition, Milestone Method [Line Items] | |
Total potential milestone payments | 754 |
Research, Development, Regulatory & Commercial Milestones | Boston Pharmaceuticals | |
Revenue Recognition, Milestone Method [Line Items] | |
Total potential milestone payments | 88 |
Research, Development, Regulatory & Commercial Milestones | Genentech | |
Revenue Recognition, Milestone Method [Line Items] | |
Total potential milestone payments | 834 |
Sales Milestones | |
Revenue Recognition, Milestone Method [Line Items] | |
Total potential milestone payments | 5,799 |
Sales Milestones | AstraZeneca | |
Revenue Recognition, Milestone Method [Line Items] | |
Total potential milestone payments | 4,275 |
Sales Milestones | Servier | |
Revenue Recognition, Milestone Method [Line Items] | |
Total potential milestone payments | 209 |
Sales Milestones | Seagen | |
Revenue Recognition, Milestone Method [Line Items] | |
Total potential milestone payments | 450 |
Sales Milestones | Boston Pharmaceuticals | |
Revenue Recognition, Milestone Method [Line Items] | |
Total potential milestone payments | 265 |
Sales Milestones | Genentech | |
Revenue Recognition, Milestone Method [Line Items] | |
Total potential milestone payments | $ 600 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) $ / shares in Units, $ in Thousands, € in Millions | May 19, 2021USD ($) | May 19, 2021USD ($) | May 19, 2021USD ($)leaseAgreement | May 19, 2021USD ($)performanceObligation | May 19, 2021USD ($)program | Apr. 24, 2021USD ($) | Apr. 01, 2021USD ($)$ / sharesshares | Mar. 24, 2021USD ($)$ / sharesshares | Feb. 08, 2018USD ($)swapOptionprogramperformanceObligationlicenseresearchProgram | May 02, 2017USD ($) | May 02, 2017USD ($) | May 02, 2017USD ($)leaseAgreement | May 02, 2017USD ($)performanceObligation | May 02, 2017USD ($)researchProgram | May 02, 2017USD ($)license | May 02, 2017USD ($)protein | Jan. 04, 2017collaborationProductproduct | Jan. 04, 2017USD ($)collaborationProductproduct | Jan. 04, 2017performanceObligationproductcollaborationProduct | Jan. 04, 2017collaborationProductprogramproduct | Jan. 04, 2017licenseproductcollaborationProduct | Jan. 04, 2017bispecificTherapeuticProgramproductcollaborationProduct | Jan. 04, 2017EUR (€)collaborationProductproduct | Jan. 04, 2017preclinicalMilestonecollaborationProductproduct | Jan. 04, 2017collaborationProductextensionOptionproduct | Mar. 31, 2021USD ($) | Feb. 28, 2021 | Feb. 29, 2020programcollaborationProduct | Feb. 28, 2019USD ($) | Feb. 28, 2019EUR (€) | Dec. 31, 2018USD ($)preclinicalMilestone | Dec. 31, 2018EUR (€)preclinicalMilestone | Sep. 30, 2021USD ($) | Mar. 31, 2021USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Jan. 01, 2019USD ($) | May 02, 2017performanceObligation | May 02, 2017collaborationProduct |
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||||||||||||||||||
Revenue recognized from contract with customer | $ 1,900 | $ 3,500 | |||||||||||||||||||||||||||||||||||||||||
Deferred revenues, current portion | 26,449 | 26,449 | $ 12,627 | ||||||||||||||||||||||||||||||||||||||||
Deferred revenue, net of current portion | 46,190 | 46,190 | 35,900 | ||||||||||||||||||||||||||||||||||||||||
Number of technology licenses | leaseAgreement | 5 | ||||||||||||||||||||||||||||||||||||||||||
Total revenue | 4,057 | $ 2,939 | 22,975 | $ 27,446 | |||||||||||||||||||||||||||||||||||||||
Number of separate performance obligations | performanceObligation | 1 | ||||||||||||||||||||||||||||||||||||||||||
Amortization of capitalized contract costs | 100 | ||||||||||||||||||||||||||||||||||||||||||
Additions to deferred revenue | 1,500 | 31,600 | |||||||||||||||||||||||||||||||||||||||||
License fees | |||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||||||||||||||||||
Deferred revenues, current portion | 5,800 | 5,800 | |||||||||||||||||||||||||||||||||||||||||
Genentech | |||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||||||||||||||||||
Revenue, remaining performance obligation, variable consideration amount | $ 1,400,000 | $ 1,400,000 | $ 1,400,000 | $ 1,400,000 | $ 1,400,000 | ||||||||||||||||||||||||||||||||||||||
Fee on additional program | 10,000 | ||||||||||||||||||||||||||||||||||||||||||
Termination notice period within material breach | 90 days | ||||||||||||||||||||||||||||||||||||||||||
Before first commercial sale | 90 days | ||||||||||||||||||||||||||||||||||||||||||
After first commercial sale | 180 days | ||||||||||||||||||||||||||||||||||||||||||
Number of research programs | 4 | 2 | |||||||||||||||||||||||||||||||||||||||||
Remaining performance obligation | 18,100 | 18,100 | |||||||||||||||||||||||||||||||||||||||||
Total revenue | 863 | 0 | 863 | 0 | |||||||||||||||||||||||||||||||||||||||
Genentech | License fees | |||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||||||||||||||||||
Deferred revenue | $ 20,000 | $ 20,000 | $ 20,000 | $ 20,000 | $ 20,000 | ||||||||||||||||||||||||||||||||||||||
Deferred revenues, current portion | 5,100 | 5,100 | |||||||||||||||||||||||||||||||||||||||||
Deferred revenue, net of current portion | 13,000 | 13,000 | |||||||||||||||||||||||||||||||||||||||||
Genentech | Research and Development Services | |||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||||||||||||||||||
Research collaboration agreement term | 3 years | ||||||||||||||||||||||||||||||||||||||||||
Seagen | |||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||||||||||||||||||
Number of performance obligations | performanceObligation | 3 | ||||||||||||||||||||||||||||||||||||||||||
Remaining performance obligation | 22,500 | 22,500 | |||||||||||||||||||||||||||||||||||||||||
Resale of stock period | 60 days | ||||||||||||||||||||||||||||||||||||||||||
Deferred revenues, current portion | 8,700 | 8,700 | |||||||||||||||||||||||||||||||||||||||||
Deferred revenue, net of current portion | 10,600 | 10,600 | |||||||||||||||||||||||||||||||||||||||||
Total revenue | (280) | 366 | 424 | 9,326 | |||||||||||||||||||||||||||||||||||||||
AstraZeneca | |||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||||||||||||||||||
Deferred revenue | 700 | 700 | |||||||||||||||||||||||||||||||||||||||||
Remaining performance obligation | 19,800 | 19,800 | |||||||||||||||||||||||||||||||||||||||||
Resale of stock period | 60 days | ||||||||||||||||||||||||||||||||||||||||||
Deferred revenues, current portion | 800 | 800 | |||||||||||||||||||||||||||||||||||||||||
Deferred revenue, net of current portion | 17,600 | 17,600 | |||||||||||||||||||||||||||||||||||||||||
Research collaboration agreement term | 5 years | ||||||||||||||||||||||||||||||||||||||||||
Total revenue | $ 13,000 | 1,607 | $ 13,000 | 2,182 | 18,309 | 7,227 | |||||||||||||||||||||||||||||||||||||
Amortization of capitalized contract costs | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||
Les Laboratoires Servier and Institut de Recherches Internationales Servier | |||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||||||||||||||||||
Number of performance obligations | performanceObligation | 10 | ||||||||||||||||||||||||||||||||||||||||||
Revenue recognized from contract with customer | $ 7,100 | ||||||||||||||||||||||||||||||||||||||||||
Remaining performance obligation | 10,900 | 10,900 | |||||||||||||||||||||||||||||||||||||||||
Deferred revenues, current portion | 6,000 | 6,000 | |||||||||||||||||||||||||||||||||||||||||
Deferred revenue, net of current portion | 5,000 | 5,000 | |||||||||||||||||||||||||||||||||||||||||
Number of novel proteins | bispecificTherapeuticProgram | 1 | ||||||||||||||||||||||||||||||||||||||||||
Number of programs | 3 | 3 | |||||||||||||||||||||||||||||||||||||||||
Total revenue | 1,867 | 391 | 3,379 | $ 10,893 | |||||||||||||||||||||||||||||||||||||||
Capitalized contract cost, net | 100 | 100 | |||||||||||||||||||||||||||||||||||||||||
Number of separate performance obligations | performanceObligation | 2 | ||||||||||||||||||||||||||||||||||||||||||
Number of combined performance obligations | performanceObligation | 2 | ||||||||||||||||||||||||||||||||||||||||||
Research term, extension period | 12 months | 12 months | |||||||||||||||||||||||||||||||||||||||||
Number of preclinical stage programs | program | 2 | ||||||||||||||||||||||||||||||||||||||||||
Preclinical stage performance obligation period | 60 days | ||||||||||||||||||||||||||||||||||||||||||
Amortization of capitalized contract costs | 0 | $ 0 | 0 | ||||||||||||||||||||||||||||||||||||||||
Les Laboratoires Servier and Institut de Recherches Internationales Servier | Research and Development Services | |||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||||||||||||||||||
Research collaboration agreement term | 3 years | ||||||||||||||||||||||||||||||||||||||||||
Number of preclinical milestones | preclinicalMilestone | 2 | 1 | 1 | ||||||||||||||||||||||||||||||||||||||||
Boston Pharmaceuticals | License fees | |||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||||||||||||||||||
Remaining performance obligation | $ 6,000 | ||||||||||||||||||||||||||||||||||||||||||
Contract with customer asset, after allowance for credit loss | 4,000 | ||||||||||||||||||||||||||||||||||||||||||
Exclusive Product License Agreement | Boston Pharmaceuticals | License fees | |||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||||||||||||||||||
Deferred revenue | 10,000 | ||||||||||||||||||||||||||||||||||||||||||
Revenue, remaining performance obligation, variable consideration amount | 352,500 | ||||||||||||||||||||||||||||||||||||||||||
Contribution on manufacturing (up to) | $ 4,000 | ||||||||||||||||||||||||||||||||||||||||||
Period after effective date agreements may be terminated | 9 months | ||||||||||||||||||||||||||||||||||||||||||
Contract termination advance notice period | 60 days | ||||||||||||||||||||||||||||||||||||||||||
Agreement termination advance notice period if marketing approval obtained | 120 days | ||||||||||||||||||||||||||||||||||||||||||
Agreement termination notice period upon material breach by the Company | 180 days | ||||||||||||||||||||||||||||||||||||||||||
Contract termination due to material breach, additional notice period if the breach is not susceptible | 180 days | ||||||||||||||||||||||||||||||||||||||||||
Remaining performance obligation | 5,800 | 5,800 | |||||||||||||||||||||||||||||||||||||||||
Collaborative arrangement, agreement obligation cost | $ 4,000 | ||||||||||||||||||||||||||||||||||||||||||
Agreement termination notice period due to non-payment of undisputed amounts | 60 days | ||||||||||||||||||||||||||||||||||||||||||
License and Collaboration Agreement | Genentech | |||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||||||||||||||||||
Number of performance obligations | performanceObligation | 5 | ||||||||||||||||||||||||||||||||||||||||||
License and Collaboration Agreement | Seagen | |||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||||||||||||||||||
Number of research programs | researchProgram | 3 | ||||||||||||||||||||||||||||||||||||||||||
Period after effective date agreements may be terminated | 12 months | ||||||||||||||||||||||||||||||||||||||||||
Contract termination advance notice period | 90 days | ||||||||||||||||||||||||||||||||||||||||||
Agreement termination advance notice period if marketing approval obtained | 180 days | ||||||||||||||||||||||||||||||||||||||||||
Agreement termination notice period upon material breach by the Company | 90 days | ||||||||||||||||||||||||||||||||||||||||||
Contract termination due to material breach, additional notice period if the breach is not susceptible | 90 days | ||||||||||||||||||||||||||||||||||||||||||
Number of licenses | license | 3 | ||||||||||||||||||||||||||||||||||||||||||
Number of swap options | swapOption | 2 | ||||||||||||||||||||||||||||||||||||||||||
Number of performance obligations | performanceObligation | 6 | ||||||||||||||||||||||||||||||||||||||||||
License and Collaboration Agreement | AstraZeneca | |||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||||||||||||||||||
Period after effective date agreements may be terminated | 12 months | ||||||||||||||||||||||||||||||||||||||||||
Contract termination advance notice period | 90 days | ||||||||||||||||||||||||||||||||||||||||||
Agreement termination advance notice period if marketing approval obtained | 180 days | ||||||||||||||||||||||||||||||||||||||||||
Agreement termination notice period upon material breach by the Company | 180 days | ||||||||||||||||||||||||||||||||||||||||||
Contract termination due to material breach, additional notice period if the breach is not susceptible | 180 days | ||||||||||||||||||||||||||||||||||||||||||
Number of performance obligations | performanceObligation | 16 | ||||||||||||||||||||||||||||||||||||||||||
Number of novel proteins | protein | 4 | ||||||||||||||||||||||||||||||||||||||||||
Agreement termination notice period upon breach of payment obligations by the Company | 30 days | ||||||||||||||||||||||||||||||||||||||||||
Period of license performance obligation | 12 months | ||||||||||||||||||||||||||||||||||||||||||
License and Collaboration Agreement | Les Laboratoires Servier and Institut de Recherches Internationales Servier | |||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||||||||||||||||||
Number of licenses | license | 5 | ||||||||||||||||||||||||||||||||||||||||||
Number of performance obligations | performanceObligation | 4 | ||||||||||||||||||||||||||||||||||||||||||
Number of collaboration products | collaborationProduct | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | ||||||||||||||||||||||||||||||||||
Number of programs | bispecificTherapeuticProgram | 5 | ||||||||||||||||||||||||||||||||||||||||||
Strategic Partnerships and Other License Agreements | Les Laboratoires Servier and Institut de Recherches Internationales Servier | |||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||||||||||||||||||
Period after effective date agreements may be terminated | 12 months | ||||||||||||||||||||||||||||||||||||||||||
Contract termination advance notice period | 180 days | ||||||||||||||||||||||||||||||||||||||||||
Revenue recognized from contract with customer | $ 1,700 | € 1.5 | $ 600 | € 0.5 | |||||||||||||||||||||||||||||||||||||||
Number of collaboration products | product | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | ||||||||||||||||||||||||||||||||||
Other arrangement | Seagen | |||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||||||||||||||||||
Number of research programs | researchProgram | 2 | ||||||||||||||||||||||||||||||||||||||||||
Platform technology license | Genentech | |||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||||||||||||||||||
Number of performance obligations | performanceObligation | 2 | ||||||||||||||||||||||||||||||||||||||||||
Number of target programs | program | 2 | ||||||||||||||||||||||||||||||||||||||||||
Platform technology license | Seagen | |||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||||||||||||||||||
Number of performance obligations | performanceObligation | 3 | ||||||||||||||||||||||||||||||||||||||||||
Number of target programs | program | 3 | ||||||||||||||||||||||||||||||||||||||||||
Antibody target swap | Genentech | |||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||||||||||||||||||
Number of performance obligations | performanceObligation | 2 | ||||||||||||||||||||||||||||||||||||||||||
Antibody target swap | Seagen | |||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||||||||||||||||||
Number of performance obligations | performanceObligation | 2 | ||||||||||||||||||||||||||||||||||||||||||
Governance committee participation | Genentech | |||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||||||||||||||||||
Number of performance obligations | performanceObligation | 1 | ||||||||||||||||||||||||||||||||||||||||||
Governance committee participation | Seagen | |||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||||||||||||||||||
Number of performance obligations | performanceObligation | 1 | ||||||||||||||||||||||||||||||||||||||||||
Upfront Payment | Seagen | |||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||||||||||||||||||
Deferred revenue | $ 1,200,000 | ||||||||||||||||||||||||||||||||||||||||||
Research and development services | 4,900 | ||||||||||||||||||||||||||||||||||||||||||
Upfront Payment | Seagen | License fees | |||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||||||||||||||||||
Revenue | $ 30,000 | ||||||||||||||||||||||||||||||||||||||||||
Upfront Payment | AstraZeneca | |||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||||||||||||||||||
Allocable arrangement consideration | $ 45,000 | ||||||||||||||||||||||||||||||||||||||||||
Upfront Payment | Les Laboratoires Servier and Institut de Recherches Internationales Servier | License fees | |||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||||||||||||||||||
Revenue | $ 32,000 | € 30 | |||||||||||||||||||||||||||||||||||||||||
Upfront Payment | Boston Pharmaceuticals | License fees | |||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||||||||||||||||||
Remaining performance obligation | $ 10,000 | ||||||||||||||||||||||||||||||||||||||||||
Additional other research services | AstraZeneca | |||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||||||||||||||||||
Allocable arrangement consideration | 4,700 | ||||||||||||||||||||||||||||||||||||||||||
Servier Developed Collaboration Product | Les Laboratoires Servier and Institut de Recherches Internationales Servier | |||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||||||||||||||||||
Number of collaboration products | collaborationProduct | 1 | ||||||||||||||||||||||||||||||||||||||||||
Co-Development Collaboration Product | Les Laboratoires Servier and Institut de Recherches Internationales Servier | |||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||||||||||||||||||
Number of collaboration products | collaborationProduct | 1 | ||||||||||||||||||||||||||||||||||||||||||
Estimated Development and Manufacturing Services | Upfront Payment | AstraZeneca | |||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||||||||||||||||||
Allocable arrangement consideration | 14,200 | ||||||||||||||||||||||||||||||||||||||||||
Milestone Payments | Upfront Payment | Seagen | |||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||||||||||||||||||
Revenue recognized from contract with customer | $ 4,200 | ||||||||||||||||||||||||||||||||||||||||||
Allocable arrangement consideration | $ 5,000 | ||||||||||||||||||||||||||||||||||||||||||
Milestone Payments | Upfront Payment | AstraZeneca | |||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||||||||||||||||||
Allocable arrangement consideration | 12,500 | ||||||||||||||||||||||||||||||||||||||||||
Estimated Phase 2a Services | Upfront Payment | AstraZeneca | |||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||||||||||||||||||
Allocable arrangement consideration | 4,700 | ||||||||||||||||||||||||||||||||||||||||||
Agreement extension options (in extension options) | Les Laboratoires Servier and Institut de Recherches Internationales Servier | Research and Development Services | |||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||||||||||||||||||
Research collaboration agreement term | 1 year | ||||||||||||||||||||||||||||||||||||||||||
Number of agreement extension options | extensionOption | 2 | ||||||||||||||||||||||||||||||||||||||||||
Minimum | License and Collaboration Agreement | AstraZeneca | |||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||||||||||||||||||
Number of collaboration products | collaborationProduct | 2 | ||||||||||||||||||||||||||||||||||||||||||
Minimum | Strategic Partnerships and Other License Agreements | Les Laboratoires Servier and Institut de Recherches Internationales Servier | |||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||||||||||||||||||
Agreement termination notice period upon material breach by the Company | 90 days | ||||||||||||||||||||||||||||||||||||||||||
Maximum | License and Collaboration Agreement | AstraZeneca | |||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||||||||||||||||||
Number of collaboration products | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | ||||||||||||||||||||||||||||||||
Number of programs | researchProgram | 2 | ||||||||||||||||||||||||||||||||||||||||||
Number of research licenses | 4 | 4 | 4 | ||||||||||||||||||||||||||||||||||||||||
Maximum | Strategic Partnerships and Other License Agreements | Les Laboratoires Servier and Institut de Recherches Internationales Servier | |||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||||||||||||||||||
Agreement termination notice period upon material breach by the Company | 120 days | ||||||||||||||||||||||||||||||||||||||||||
Accounting Standards Update 2014-09 | AstraZeneca | |||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||||||||||||||||||
Capitalized contract cost, net | $ 1,600 | $ 1,600 | $ 1,600 | $ 1,600 | $ 1,600 | $ 1,600 | $ 1,600 | $ 700 | $ 700 | ||||||||||||||||||||||||||||||||||
Capitalized contract cost in accordance with ASC 340 | $ 1,100 | ||||||||||||||||||||||||||||||||||||||||||
Accounting Standards Update 2014-09 | Les Laboratoires Servier and Institut de Recherches Internationales Servier | |||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||||||||||||||||||
Capitalized contract cost, net | $ 500 | ||||||||||||||||||||||||||||||||||||||||||
Private placement | Seagen | |||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||||||||||||||||||
Deferred revenue | $ 3,300 | ||||||||||||||||||||||||||||||||||||||||||
Shares of stock sold (in shares) | shares | 3,706,174 | ||||||||||||||||||||||||||||||||||||||||||
Shares of stock sold, net consideration | $ 13,000 | ||||||||||||||||||||||||||||||||||||||||||
Shares of stock sold, price (USD per share) | $ / shares | $ 3.51 | ||||||||||||||||||||||||||||||||||||||||||
Fair value of stock (in dollars per share) | $ / shares | $ 2.61 | ||||||||||||||||||||||||||||||||||||||||||
Private placement | AstraZeneca | |||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||||||||||||||||||||||||
Shares of stock sold (in shares) | shares | 3,584,230 | ||||||||||||||||||||||||||||||||||||||||||
Shares of stock sold, net consideration | $ 10,000 | ||||||||||||||||||||||||||||||||||||||||||
Shares of stock sold, price (USD per share) | $ / shares | $ 2.79 | ||||||||||||||||||||||||||||||||||||||||||
Fair value of stock (in dollars per share) | $ / shares | $ 2.60 |
Grant Income (Details)
Grant Income (Details) - Sep. 30, 2021 € in Millions, $ in Millions | EUR (€) | USD ($) |
Receivables [Abstract] | ||
Grants receivable | € 14.2 | $ 17 |
Cash, cash equivalents and in_2
Cash, cash equivalents and investments - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Cash and Cash Equivalents [Abstract] | |||||
Cash equivalents | $ 34,900,000 | $ 34,900,000 | $ 64,000,000 | ||
Realized gains (losses) recognized on available-for-sale investments | $ 0 | $ (200,000) | $ 0 | $ 0 |
Property and equipment, net - S
Property and equipment, net - Summary (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, cost | $ 26,903 | $ 27,861 |
Accumulated depreciation | (7,290) | (5,815) |
Property and equipment, net | 19,613 | 22,046 |
Laboratory furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, cost | 11,059 | 11,188 |
Office furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, cost | 2,009 | 2,120 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, cost | 401 | 394 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, cost | $ 13,434 | $ 14,159 |
Accrued Expenses - Summary (Det
Accrued Expenses - Summary (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Accrued expenses | ||
Accrued accounts payable | $ 2,732 | $ 1,220 |
Collaboration cost-sharing obligation | 2,543 | 0 |
Research and development fees | 8,422 | 2,001 |
Compensation expense | 2,914 | 2,759 |
Accrued license obligations | 1,655 | 358 |
Lease liabilities | 1,032 | 1,030 |
Audit and tax fees | 165 | 128 |
Other current liabilities | 222 | 235 |
Total | $ 19,685 | $ 7,731 |
Net Loss per Share - Narrative
Net Loss per Share - Narrative (Details) - shares shares in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share [Abstract] | ||
Weighted average shares excluded from the calculation of diluted weighted average shares outstanding (in shares) | 36.7 | 37.3 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Jun. 25, 2021 | May 20, 2021 | Apr. 01, 2020 | Aug. 31, 2021 | Aug. 31, 2018 | Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | Apr. 30, 2020 | Nov. 30, 2019 | Jan. 31, 2019 | Jun. 30, 2016 |
Class of Stock [Line Items] | |||||||||||||
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 | 300,000,000 | 300,000,000 | |||||||||
Common stock, shares issued (in shares) | 71,504,630 | 71,504,630 | 71,504,630 | 56,002,815 | |||||||||
Common stock, shares outstanding (in shares) | 71,504,630 | 71,504,630 | 71,504,630 | 56,002,815 | |||||||||
Par value of common stock (USD per share) | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||||||||
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | |||||||||
Preferred stock, shares issued (in shares) | 15,617 | 15,617 | 15,617 | 14,429 | |||||||||
Preferred stock, shares outstanding (in shares) | 15,617 | 15,617 | 15,617 | 14,429 | |||||||||
Par value of preferred stock (USD per share) | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||||||||
Jefferies LLC | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Par value of common stock (USD per share) | $ 0.001 | ||||||||||||
At the market offering | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Sale of stock, authorized amount | $ 50 | ||||||||||||
Shares of stock sold, net consideration | $ 23.2 | ||||||||||||
At the market offering | Jefferies LLC | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Sale of stock, authorized amount | $ 50 | ||||||||||||
At the market offering 1 | Jefferies LLC | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Shares of stock sold (in shares) | 4,600,000 | ||||||||||||
Shares of stock sold, net consideration | $ 24 | ||||||||||||
Shares of stock sold, price (USD per share) | $ 5.27 | $ 5.27 | $ 5.27 | ||||||||||
At the market offering 2 | Jefferies LLC | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Shares of stock sold (in shares) | 7,600,000 | ||||||||||||
Shares of stock sold, net consideration | $ 36.7 | ||||||||||||
Shares of stock sold, price (USD per share) | $ 4.86 | $ 4.86 | $ 4.86 | ||||||||||
Common Stock | Biotechnology Value Fund, L.P. | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Shares of stock sold (in shares) | 3,000,000 | ||||||||||||
Common Stock | Stock exchange, shares from existing shareholders | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Shares of stock sold (in shares) | 5,000,000 | ||||||||||||
2020 Plan | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Shares of stock authorized pursuant to the 2020 Plan (in shares) | 3,500,000 | 3,500,000 | 3,500,000 | ||||||||||
Additional shares authorized (in shares) | 2,250,000 | ||||||||||||
2019 Plan | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Shares of stock terminated under the 2019 Plan (in shares) | 1,579,678 | ||||||||||||
Series A Preferred Stock | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Preferred stock, shares issued (in shares) | 85 | 85 | 85 | 2,907 | |||||||||
Preferred stock, shares outstanding (in shares) | 85 | 85 | 85 | 2,907 | |||||||||
Series A Preferred Stock | Preferred Stock | Stock exchange, shares from existing shareholders | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Par value of preferred stock (USD per share) | $ 0.001 | ||||||||||||
Series B Preferred Stock | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Preferred stock, shares issued (in shares) | 4,026 | 4,026 | 4,026 | 5,000 | |||||||||
Preferred stock, shares outstanding (in shares) | 4,026 | 4,026 | 4,026 | 5,000 | |||||||||
Series B Preferred Stock | Preferred Stock | Stock exchange, shares from existing shareholders | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Par value of preferred stock (USD per share) | $ 0.001 | ||||||||||||
Series C Preferred Stock | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Preferred stock, shares issued (in shares) | 3,506 | 3,506 | 3,506 | 3,522 | |||||||||
Preferred stock, shares outstanding (in shares) | 3,506 | 3,506 | 3,506 | 3,522 | |||||||||
Series C Preferred Stock | Preferred Stock | Stock exchange, shares from existing shareholders | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Par value of preferred stock (USD per share) | $ 0.001 | ||||||||||||
Series D Preferred Stock | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Preferred stock, shares issued (in shares) | 3,000 | 3,000 | 3,000 | 3,000 | |||||||||
Preferred stock, shares outstanding (in shares) | 3,000 | 3,000 | 3,000 | 3,000 | |||||||||
Series D Preferred Stock | Preferred Stock | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Preferred stock, shares authorized (in shares) | 3,000 | ||||||||||||
Shares of stock sold (in shares) | 3,000 | ||||||||||||
Series E Preferred Stock | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Preferred stock, shares issued (in shares) | 5,000 | 5,000 | 5,000 | 0 | |||||||||
Preferred stock, shares outstanding (in shares) | 5,000 | 5,000 | 5,000 | 0 | |||||||||
Series E Preferred Stock | Preferred Stock | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Preferred stock, shares authorized (in shares) | 5,000 | ||||||||||||
Par value of preferred stock (USD per share) | $ 0.001 | ||||||||||||
Stock issued upon conversion (in shares) | 1,000 | ||||||||||||
Common stock ownership limit (as a percent) | 9.99% | ||||||||||||
Beneficial ownership limitation (as a percent) | 19.99% | ||||||||||||
Notice period before increase of beneficial ownership limitation | 61 days | ||||||||||||
Series E Preferred Stock | Preferred Stock | Stock exchange, shares from existing shareholders | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Par value of preferred stock (USD per share) | $ 0.001 | ||||||||||||
Series E Preferred Stock | Preferred Stock | Preferred share exchange | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Shares of stock sold (in shares) | 5,000 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||
May 31, 2020ft² | Feb. 29, 2020USD ($)ft² | Aug. 31, 2015ft² | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Mar. 31, 2020ft²leaseAgreementfloor | Sep. 30, 2021USD ($)ft²extensionOption | Sep. 30, 2020USD ($) | Jul. 31, 2021 | Mar. 31, 2019USD ($) | Oct. 31, 2018USD ($) | |
Loss Contingencies [Line Items] | |||||||||||
Lease liabilities | $ | $ 0.6 | $ 0.6 | $ 1.9 | $ 1.5 | |||||||
Boston, Massachusetts | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Area of leased property (square feet) | 3,950 | ||||||||||
Lease renewal term | 10 months | ||||||||||
Freising, Germany | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Area of leased property (square feet) | 19,000 | ||||||||||
Number of lease agreements (in lease agreements) | leaseAgreement | 4 | ||||||||||
Freising, Germany | Leases in same building | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Number of lease agreements (in lease agreements) | leaseAgreement | 3 | ||||||||||
Number of floors (in floors) | floor | 3 | ||||||||||
Hallbergmoos, Germany | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Area of leased property (square feet) | 105,000 | ||||||||||
Lease renewal term | 60 months | 60 months | |||||||||
Lease term | 12 years 6 months | ||||||||||
Number of agreement extension options | extensionOption | 2 | ||||||||||
Rent expense | $ | $ 0.2 | ||||||||||
Security deposit | $ | $ 0.8 | ||||||||||
Tenant improvements | $ | $ 11.5 | ||||||||||
Hallbergmoos, Germany | Leases expected to be delivered by February 2020 | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Area of leased property (square feet) | 98,400 | ||||||||||
Hallbergmoos, Germany | Leases expected to be delivered by May 2020 | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Area of leased property (square feet) | 5,100 | ||||||||||
Hallbergmoos, Germany | Leases expected to be delivered by October 2024 | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Area of leased property (square feet) | 22,300 | ||||||||||
Hallbergmoos, Germany | Leases with first right of refusal for additional area | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Area of leased property (square feet) | 13,400 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Leases [Abstract] | ||||
Operating lease costs | $ 370 | $ 360 | $ 1,126 | $ 1,134 |
Variable lease costs | 198 | 192 | 562 | 536 |
Total lease cost | $ 568 | $ 552 | $ 1,688 | $ 1,670 |
Leases - Summary of the Lease T
Leases - Summary of the Lease Term and Discount Rate (Details) | Sep. 30, 2021 |
Leases [Abstract] | |
Weighted-average remaining lease term (years) | 10 years 8 months 12 days |
Weighted-average discount rate | 10.50% |
Leases - Maturities of the Oper
Leases - Maturities of the Operating Lease Liabilities (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Leases [Abstract] | |
2021 | $ 624 |
2022 | 2,527 |
2023 | 2,288 |
2024 | 2,288 |
2025 | 2,288 |
Thereafter | 15,065 |
Total undiscounted lease payments | 25,080 |
Less: present value adjustment | (9,604) |
Present value of lease liabilities | $ 15,476 |