Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | May 01, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Blueprint Medicines Corp | |
Entity Central Index Key | 1,597,264 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 39,018,392 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 56,356 | $ 52,069 |
Investments, available-for-sale | 150,040 | 162,090 |
Unbilled accounts receivable | 2,826 | 3,577 |
Prepaid expenses and other current assets | 4,736 | 2,689 |
Total current assets | 213,958 | 220,425 |
Investments, available-for-sale | 29,929 | 54,059 |
Property and equipment, net | 6,081 | 6,188 |
Other assets | 1,413 | 856 |
Restricted cash | 1,267 | 1,267 |
Total assets | 252,648 | 282,795 |
Current liabilities: | ||
Accounts payable | 2,282 | 2,211 |
Accrued expenses | 10,346 | 11,746 |
Current portion of deferred revenue | 10,396 | 11,426 |
Current portion of lease incentive obligation | 578 | 578 |
Current portion of deferred rent | 17 | |
Current portion of term loan payable | 2,140 | 2,551 |
Total current liabilities | 25,759 | 28,512 |
Deferred rent, net of current portion | 924 | 932 |
Deferred revenue, net of current portion | 33,824 | 35,809 |
Lease incentive obligation, net of current portion | 2,648 | 2,792 |
Term loan payable, net of current portion | 1,106 | 1,518 |
Other long term liabilities | 165 | 154 |
Commitments (Note 10) | ||
Stockholders' deficit: | ||
Preferred stock, $0.001 par value; 5,000,000 shares authorized; no shares issued and outstanding | ||
Common stock, $0.001 par value; 120,000,000 shares authorized; 33,249,614 and 33,125,479 shares issued at March 31, 2017 and December 31, 2016, respectively, and 33,249,360 and 33,123,354 shares outstanding at March 31, 2017 and December 31, 2016, respectively | 33 | 33 |
Additional paid-in capital | 423,750 | 420,533 |
Accumulated other comprehensive loss | (114) | (18) |
Accumulated deficit | (235,447) | (207,470) |
Total stockholders' equity | 188,222 | 213,078 |
Total liabilities and stockholders' equity | $ 252,648 | $ 282,795 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2017 | Dec. 31, 2016 |
Preferred Stock Disclosures | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common Stock Disclosures | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 120,000,000 | 120,000,000 |
Common stock, shares issued (in shares) | 33,249,614 | 33,125,479 |
Common Stock, shares outstanding (in shares) | 33,249,360 | 33,123,354 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Revenues | ||
Collaboration revenue | $ 5,840 | $ 6,856 |
Operating expenses: | ||
Research and development | 28,487 | 17,635 |
General and administrative | 5,683 | 4,646 |
Total operating expenses | 34,170 | 22,281 |
Other income (expense): | ||
Other income (expense), net | 425 | 61 |
Interest expense | (72) | (140) |
Total other income (expense) | 353 | (79) |
Net loss | (27,977) | (15,504) |
Other comprehensive loss: | ||
Unrealized (loss) gain on investments | (114) | 31 |
Comprehensive loss | $ (28,091) | $ (15,473) |
Reconciliation of net loss applicable to common stockholders: | ||
Net loss per share applicable to common stockholders - basic and diluted | $ (0.84) | $ (0.57) |
Weighted-average number of common shares used in net loss per share applicable to common stockholders - basic and diluted | 33,190 | 27,088 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Operating activities | ||
Net loss | $ (27,977) | $ (15,504) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 398 | 386 |
Noncash interest expense | 11 | 22 |
Stock-based compensation | 2,240 | 1,102 |
Accretion of premiums and discounts on investments | 86 | 35 |
Changes in assets and liabilities: | ||
Unbilled accounts receivable | 751 | (818) |
Prepaid expenses and other current assets | (1,972) | 2,262 |
Other assets | 14 | 11 |
Accounts payable | 71 | 567 |
Accrued expenses | (1,552) | (321) |
Deferred revenue | (3,015) | 43,127 |
Deferred rent | (135) | (118) |
Net cash (used in) provided by operating activities | (31,080) | 30,751 |
Investing activities | ||
Purchases of property and equipment | (210) | (1,262) |
Restricted cash | 119 | |
Purchases of investments | (18,003) | (69,222) |
Maturities of investments | 54,000 | |
Net cash provided by (used in) investing activities | 35,787 | (70,365) |
Financing activities | ||
Principal payments on loan payable | (833) | (833) |
Payment of offering costs | (489) | |
Proceeds from issuance of common stock, net of repurchases | 902 | 29 |
Net cash used in financing activities | (420) | (804) |
Net increase (decrease) in cash and cash equivalents | 4,287 | (40,418) |
Cash and cash equivalents at beginning of period | 52,069 | 162,707 |
Cash and cash equivalents at end of period | 56,356 | 122,289 |
Supplemental cash flow information | ||
Public offering costs incurred but unpaid at period end | 516 | |
Property and equipment purchases unpaid at period end | 80 | 244 |
Cash paid for interest | $ 50 | $ 95 |
Nature of Business
Nature of Business | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure Text Block | |
Nature of Business | 1. Nature of Business Blueprint Medicines Corporation (the Company), a Delaware corporation incorporated on October 14, 2008, is a biopharmaceutical company focused on improving the lives of patients with genomically defined diseases driven by abnormal kinase activation. The Company’s approach is to systematically and reproducibly identify kinases that are drivers of diseases in genomically defined patient populations and to craft drug candidates that may provide significant and durable clinical response to patients without adequate treatment options. The Company is devoting substantially all of its efforts to research and development, initial market development, and raising capital. The Company is subject to a number of risks similar to those of other early stage companies, including dependence on key individuals; establishing safety and efficacy in clinical trials for its drug candidates; the need to develop commercially viable drug candidates; competition from other companies, many of which are larger and better capitalized; and the need to obtain adequate additional financing to fund the development of its drug candidates. If the Company is unable to raise capital when needed or on attractive terms, it would be forced to delay, reduce, eliminate or out‑license certain of its research and development programs or future commercialization efforts. On May 5, 2015, the Company completed an initial public offering (IPO) of its common stock, which resulted in the sale of 9,367,708 shares of its common stock at a price to the public of $18.00 per share, including 1,221,874 shares of common stock sold by the Company pursuant to the exercise in full by the underwriters of their option to purchase additional shares in connection with the offering. The Company received net proceeds of $154.8 million, after deducting underwriting discounts and commissions and offering expenses paid by the Company. On December 13, 2016, the Company closed a follow-on public offering of 5,750,000 shares of its common stock at a price to the public of $25.00 per share, including 750,000 shares of common stock sold by the Company pursuant to the exercise in full by the underwriters of their option to purchase additional shares in connection with the offering. The Company received net proceeds of $134.5 million, after deducting underwriting discounts and commissions and offering expenses payable by the Company. On April 4, 2017, the Company closed a follow-on public offering of 5,750,000 shares of its common stock at a price to the public of $40.00 per share, including 750,000 shares of common stock sold by the Company pursuant to the exercise in full by the underwriters of their option to purchase additional shares in connection with the offering (the April 2017 follow-on public offering). The Company received net proceeds of $215.6 million, after deducting underwriting discounts and commissions and offering expenses payable by the Company. As of March 31, 2017, the Company had cash, cash equivalents and investments of $236.3 million. Based on the Company’s current plans, the Company believes its existing cash, cash equivalents and investments, including the $215.6 million in net proceeds from its April 2017 follow-on public offering but excluding any potential option fees and milestone payments under our existing collaborations, will be sufficient to enable the Company to fund its operating expenses and capital expenditure requirements into the second half of 2019. |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure Text Block | |
Summary of Significant Accounting Policies and Recent Accounting Pronouncements | 2. Summary of Significant Accounting Policies and Recent Accounting Pronouncements Basis of Presentation The unaudited interim condensed consolidated financial statements of the Company included herein have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) as found in the Accounting Standards Codification (ASC), Accounting Standards Update (ASU) of the Financial Accounting Standards Board (FASB) and the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted from this report, as is permitted by such rules and regulations. Accordingly, these financial statements should be read in conjunction with the financial statements as of and for the year ended December 31, 2016 and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, filed with the SEC on March 9, 2017. The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited financial statements and include the accounts of the Company and its wholly-owned subsidiary, Blueprint Medicines Security Corporation, which is a Massachusetts subsidiary created to buy, sell, and hold securities. All intercompany transactions and balances have been eliminated. In the opinion of the Company’s management, the accompanying unaudited interim condensed consolidated financial statements contain all adjustments which are necessary to present fairly the Company’s financial position as of March 31, 2017 and the results of its operations and cash flows for the three months ended March 31, 2017. Such adjustments are of a normal and recurring nature. The results for the three months ended March 31, 2017 are not necessarily indicative of the results for the year ending December 31, 2017, or for any future period. On December 13, 2016, the Company closed its underwritten public offering of 5,750,000 shares. The significant increase in shares outstanding is expected to impact the year-over-year comparability of the Company’s net loss per share calculations. Use of Estimates The preparation of financial statements in conformity with GAAP requires the Company’s management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Management considers many factors in selecting appropriate financial accounting policies and in developing the estimates and assumptions that are used in the preparation of the financial statements. Management must apply significant judgment in this process. Management’s estimation process often may yield a range of potentially reasonable estimates and management must select an amount that falls within that range of reasonable estimates. Estimates are used in the following areas, among others: stock‑based compensation expense; revenue recognition; accrued expenses; and income taxes. Significant Accounting Policies The Company’s critical accounting policies are those policies that require the most significant judgments and estimates in the preparation of our financial statements. Management has determined that the Company’s most critical accounting policies are those relating to revenue recognition, accrued research and development expenses, available-for-sale investments and stock-based compensation. There have been no significant changes to the Company’s critical accounting policies discussed in its Annual Report on Form 10-K for the year ended December 31, 2016 related to available-for-sale investments, revenue recognition, accrued research and development expenses and stock-based compensation. Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which supersedes the revenue recognition requirements in ASC 605 Multiple-Element Arrangements In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (ASU No. 2016-09), which amends ASC Topic 718, Compensation – Stock Compensation . The new standard identifies areas for simplification involving several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows. The new standard was effective for the Company on January 1, 2017. The Company applied ASU 2016-09 using a modified retrospective approach and adopted the option to recognize gross stock compensation expense with actual forfeitures recognized as they occur. Given that the application of the estimated forfeiture rate prior to January 1, 2017 resulted in an insignificant reduction in stock-based compensation expense, the cumulative-effect adjustment to retained earnings recognized as of January 1, 2017 was not material to the consolidated financial statements. The adoption of ASU 2016-09 also requires all income tax adjustments to be recognized in the consolidated statements of operations. As the increase in net deferred tax assets is fully offset by a corresponding increase to the deferred tax asset valuation allowance, there was no material impact of the adoption of this standard. The amount of deferred tax assets that had not been previously recognized due to the recognition of excess tax benefits is $1.1 million. In February 2016, the FASB issued ASU No. 2016-02, Leases (ASU No. 2016-02), which will change the way the Company recognizes its leased assets. ASU No. 2016-02 will require organizations that lease assets—referred to as “lessees”—to recognize on the balance sheet the assets and liabilities representing the rights and obligations created by those leases. ASU No. 2016-02 will also require disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. The standard is effective for annual reporting periods (including interim reporting periods within those years) beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the methods of adoption allowed by the new standard and the effect that adoption of the standard is expected to have on the Company’s consolidated financial statements and related disclosures. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230) (ASU No. 2016-15) , which simplifies certain elements of cash flow classification. The new guidance is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. ASU No. 2016-15 is effective for annual periods beginning after December 15, 2017. The Company is currently evaluating the impact the adoption of ASU No. 2016-15 will have on its consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, Restricted Cash (ASU No. 2016-18). The amendments in ASU No. 2016-18 require an entity to reconcile and explain the period-over-period change in total cash, cash equivalents and restricted cash within its statements of cash flows. ASU No. 2016-18 is effective for fiscal years (including interim reporting periods within those years) beginning after December 15, 2017. Early adoption is permitted. A reporting entity must apply the amendments in ASU No. 2016-18 using a full retrospective approach. The Company believes that the adoption of this guidance will not have a significant impact on its consolidated financial statements and related disclosures. |
Cash Equivalents and Investment
Cash Equivalents and Investments | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure Text Block | |
Cash Equivalents and Investments | 3. Cash Equivalents and Investments Cash equivalents are highly liquid investments that are readily convertible into cash with original maturities of three months or less when purchased. Investments consist of securities with original maturities greater than 90 days when purchased. The Company classifies these investments as available-for-sale and records them at fair value in the accompanying condensed consolidated balance sheets. Unrealized gains or losses are included in accumulated other comprehensive income (loss). Premiums or discounts from par value are amortized to investment income over the life of the underlying investment. Cash equivalents and investments, available-for-sale, consisted of the following at March 31, 2017 and December 31, 2016 (in thousands): Average Amortized Unrealized Unrealized Fair March 31, 2017 Maturity Cost Gain Losses Value Cash equivalents: Money market funds $ 50,364 $ — $ — $ 50,364 Government agency securities 5,991 1 — 5,992 Investments, available-for-sale: U.S. treasury obligations 321 Days 180,084 — (115) 179,969 Total $ 236,439 $ 1 $ (115) $ 236,325 Average Amortized Unrealized Unrealized Fair December 31, 2016 Maturity Cost Gain Losses Value Cash equivalents: Money market funds $ 52,069 $ — $ — $ 52,069 Investments, available-for-sale: U.S. treasury obligations 298 Days 216,167 14 (32) 216,149 Total $ 268,236 $ 14 $ (32) $ 268,218 Although available to be sold to meet operating needs or otherwise, securities are generally held through maturity. The cost of securities sold is determined based on the specific identification method for purposes of recording realized gains and losses. During the three months ended March 31, 2017, there were no realized gains or losses on sales of investments, and no investments were adjusted for other than temporary declines in fair value. At March 31, 2017, the Company held 33 securities that were in an unrealized loss position. The aggregate fair value of securities held by the Company in an unrealized loss position for less than twelve months as of March 31, 2017 was $179.9 million, and there were no securities held by the Company in an unrealized loss position for more than twelve months. The Company has the intent and ability to hold such securities until recovery. The Company determined that there was no material change in the credit risk of the above investments. As a result, the Company determined it did not hold any investments with an other-than temporary impairment as of March 31, 2017 . |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure Text Block | |
Fair Value of Financial Instruments | 4. Fair Value of Financial Instruments The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels as follows: · Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. · Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. · Level 3 inputs are unobservable inputs that reflect the Company’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Financial instruments measured at fair value as of March 31, 2017 are classified below based on the fair value hierarchy described above: Active Observable Unobservable March 31, Markets Inputs Inputs Description 2017 (Level 1) (Level 2) (Level 3) Financial Assets Cash equivalents: Money market funds $ 50,364 $ 50,364 $ — $ — Government agency securities 5,992 5,992 Investments, available-for-sale: U.S Treasury obligations 179,969 179,969 — — Total $ 236,325 $ 236,325 $ — $ — Financial instruments measured at fair value as of December 31, 2016 are classified below based on the fair value hierarchy described above: Active Observable Unobservable December 31, Markets Inputs Inputs Description 2016 (Level 1) (Level 2) (Level 3) Financial Assets Cash equivalents: Money market funds $ 52,069 $ 52,069 $ — $ — Investments, available-for-sale: U.S Treasury obligations 216,149 216,149 — — Total $ 268,218 $ 268,218 $ — $ — The fair value of the Company’s term loan payable is determined using current applicable rates for similar instruments as of the balance sheet date. The carrying value of the Company’s term loan payable approximates fair value because the Company’s interest rate yield approximates current market rates. The Company’s term loan payable is a Level 3 liability within the fair value hierarchy. |
Restricted Cash
Restricted Cash | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure Text Block | |
Restricted Cash | 5. Restricted Cash As of March 31, 2017 and December 31, 2016, $1.3 million of restricted cash was included in long-term assets on the Company’s balance sheet related to a security deposit for the lease agreement for the Company’s corporate headquarters. |
Collaborations
Collaborations | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure Text Block | |
Collaborations | 6. Collaborations Roche In March 2016, the Company entered into a collaboration and license agreement (as amended, Roche agreement) Roche for the discovery, development and commercialization of up to five small molecule therapeutics targeting kinases believed to be important in cancer immunotherapy, as single products or possibly in combination with other therapeutics. The parties initiated activities for three of the collaboration programs in 2016, and the parties have agreed to work together to use the Company’s novel target discovery engine and proprietary compound library to select targets for up to two additional collaboration programs. Under the Roche agreement, Roche is granted up to five option rights to obtain an exclusive license to exploit products derived from the collaboration programs in the field of cancer immunotherapy. Such option rights are triggered upon the achievement of Phase 1 proof-of-concept. For up to three of the five collaboration programs, if Roche exercises its option, Roche will receive worldwide, exclusive commercialization rights for the licensed products. For up to two of the five collaboration programs, if Roche exercises its option, the Company will retain commercialization rights in the United States for the licensed products, and Roche will receive commercialization rights outside of the United States for the licensed products. The Company will also retain worldwide rights to any products for which Roche elects not to exercise its applicable option. Prior to Roche’s exercise of an option, the Company will have the lead responsibility for drug discovery and pre-clinical development of all collaboration programs. In addition, the Company will have the lead responsibility for the conduct of all Phase 1 clinical trials other than those Phase 1 clinical trials for any product in combination with Roche’s portfolio of therapeutics, for which Roche will have the right to lead the conduct of such Phase 1 clinical trials. Pursuant to the Roche agreement, the parties will share the costs of Phase 1 development for each collaboration program. In addition, Roche will be responsible for post-Phase 1 development costs for each licensed product for which it retains global commercialization rights, and the Company and Roche will share post-Phase 1 development costs for each licensed product for which the Company retains commercialization rights in the United States. Subject to the terms of the Roche agreement, the Company received an upfront cash payment of $45.0 million and will be eligible to receive up to approximately $965.0 million in contingent option fees and milestone payments related to specified research, pre-clinical, clinical, regulatory and sales-based milestones. Of the total contingent payments, up to approximately $215.0 million are for option fees and milestone payments for research, pre-clinical and clinical development events prior to licensing across all five potential collaboration programs, including contingent milestone payments for initiation of each of the collaboration programs for which the parties will work together to select targets (pre-option exercise milestones). In addition, for any licensed product for which Roche retains worldwide commercialization rights, the Company will be eligible to receive tiered royalties ranging from low double-digits to high-teens on future net sales of the licensed product. For any licensed product for which the Company retains commercialization rights in the United States, the Company and Roche will be eligible to receive tiered royalties ranging from mid-single-digits to low double-digits on future net sales in the other party’s respective territories in which it commercializes the licensed product. The upfront cash payment and any payments for milestones, option fees and royalties are non-refundable, non-creditable and not subject to set-off. The Roche agreement will continue until the date when no royalty or other payment obligations are or will become due, unless earlier terminated in accordance with the terms of the Roche agreement. Prior to its exercise of its first option, Roche may terminate the Roche agreement at will, in whole or on a collaboration target-by-collaboration target basis, upon 120 days’ prior written notice to the Company. Following its exercise of an option, Roche may terminate the Roche agreement at will, in whole, on a collaboration target-by-collaboration target basis, on a collaboration program-by-collaboration program basis or, if a licensed product has been commercially sold, on a country-by-country basis, (i) upon 120 days’ prior written notice if a licensed product has not been commercially sold or (ii) upon 180 days’ prior written notice if a licensed product has been commercially sold. Either party may terminate the Roche agreement for the other party’s uncured material breach or insolvency and in certain other circumstances agreed to by the parties. In certain termination circumstances, the Company is entitled to retain specified licenses to be able to continue to exploit the licensed products. The Company determined that there were five deliverables under the Roche agreement: (i) a non-transferable, sub-licensable and non-exclusive license to use the Company’s intellectual property and collaboration compounds to conduct research activities ;(ii) conducting research and development activities through Phase 1 clinical trials under the research plan; (iii) providing pre-clinical and clinical supply of collaboration compounds; (iv) participation on a joint research committee (JRC) and joint development committee (JDC); and (v) regulatory responsibilities under Phase 1 clinical trials. The Company determined that the license did not have value to Roche on a stand-alone basis due to the specialized nature of the research activities to be provided by the Company that are not available in the marketplace and the fact that the license is to perform research and development only. Therefore, the license has limited value without the performance of the research and development activities and is not separable. The pre-clinical and clinical supply activities are integral to the performance of the research and development activities and can only be used for the performance of such activities, and the regulatory responsibilities are dependent on the research and development activities. The Company determined that the best estimate for the selling price of the JRC and JDC participation was inconsequential. Accordingly, the Company combined the license, pre-clinical and clinical supply, JRC and JDC participation and regulatory responsibilities deliverables with the research and development activities, the last item to be delivered in the arrangement, as one unit of accounting. The Company is recognizing the total allocable arrangement consideration consisting of the upfront payment of $45.0 million as revenue on a straight-line basis over the Company’s best estimate of the period it expects to perform research and development activities. The Company expects the services to be delivered ratably. The Company evaluated whether the option fees that may be received in connection with the Roche agreement are substantive. The Company concluded that the option fees were substantive due to the uncertainty around whether the goals of the collaboration will be achieved, and therefore the options are not a deliverable in the current arrangement. If Roche elects to exercise the options, the exercises and related contingent deliverables would be accounted for as a separate arrangement. The Company evaluated whether the milestones that may be received in connection with the Roche agreement are substantive milestones. P re-option exercise milestones, of up to $215.0 million, that are expected to be achieved as a result of the Company’s efforts during the performance of the research and development activities are considered substantive and are recognized as revenue upon the achievement of the milestone, assuming all other revenue recognition criteria are met. The development event milestones are not considered substantive because the Company does not contribute effort to the achievement of such milestones as they are expected to be achieved after the performance of the research and development activities. Consideration received with respect to these milestones will be added to the total arrangement consideration that has been allocated to the identified units of accounting. As a result, that amount is recognized as revenue ratably over the period starting from the effective date of the agreement to the date that the Company will complete all of its obligations, with a cumulative catch-up from the effective date through the date of achievement of the milestone. If the consideration is received after the completion of all of the Company’s obligations, the amount will be recognized as revenue immediately. During the three months ended March 31, 2017 and 2016, the Company recognized revenue under the Roche agreement of $1.4 million and $0.2 million, respectively, which represents a portion of the $45.0 million upfront payment. Alexion In March 2015, the Company entered into a research, development and commercialization agreement (Alexion agreement) with Alexion Pharma Holding (Alexion) to research, develop and commercialize drug candidates for an undisclosed activated kinase target, which is the cause of a rare genetic disease. Under the terms of the Alexion agreement, the Company is responsible for research and pre‑clinical development activities related to drug candidates and Alexion is responsible for all clinical development, manufacturing and commercialization activities related to drug candidates. Alexion is responsible for funding 100% of the Company’s research and development costs incurred under the research plan, including pass‑through costs and a negotiated yearly rate per full‑time equivalent for its employees’ time and their associated overhead expenses. The Company received a $15.0 million non‑refundable upfront payment in March 2015 upon execution of the Alexion agreement and is eligible to receive over $250.0 million in payments upon the successful achievement of pre‑specified pre‑clinical, clinical, regulatory and commercial milestones as follows: (i) up to $6.0 million in pre‑clinical milestone payments for the first licensed product, (ii) up to $83.0 million and $61.5 million in development milestone payments for the first and second licensed products, respectively, and (iii) up to $51.0 million in commercial milestone payments for each of the first and second licensed products. Alexion will pay the Company tiered royalties, ranging from mid‑single to low‑double digit percentages, on a country‑by‑country and licensed-product‑by‑licensed product basis, on worldwide net product sales of licensed products. The royalty term for each licensed product in each country is the period commencing with first commercial sale of such licensed product in such country and ending on the later of (i) the expiration of the last‑to‑expire valid claim of specified patents covering such licensed product, (ii) the expiration of the applicable regulatory exclusivity period, and (iii) 10 or 15 years from specified commercial sales. There are no refund provisions in the Alexion agreement. Alexion has the right to terminate the Alexion agreement if the Company undergoes a change of control or becomes an affiliate of a biotechnology or pharmaceutical company, and may terminate the Alexion agreement at will upon 90 days prior written notice. The Company and Alexion have the right to terminate the Alexion agreement in the event of the other party’s uncured breach or insolvency, and in certain other circumstances agreed to by the parties. The Company determined that there were three deliverables under the Alexion agreement: (i) an exclusive license to research, develop, manufacture and commercialize the licensed products and the compounds in the field in the territory, (ii) conducting research and development activities under the research plan and (iii) participation on a joint steering committee (JSC) and joint project team (JPT). The Company determined that the license did not have value to Alexion on a stand-alone basis due to the specialized nature of the research services to be provided by the Company that are not available in the marketplace. Therefore, the deliverables are not separable and, accordingly, the license, undelivered research and development activities and JSC and JPT participation are a single unit of accounting. When multiple deliverables are accounted for as a single unit of accounting, the Company bases its revenue recognition model on the final deliverable. Under the Alexion agreement, the last deliverable to be completed is its research and development activities and participation on the JSC and JPT, which are expected to be delivered over the same performance period. The Company is utilizing a proportional performance model to recognize revenue under the Alexion agreement. The Company evaluated whether the milestones that may be received in connection with the Alexion agreement are substantive or non-substantive milestones. The Company concluded that the first pre-clinical milestone payment in the Alexion agreement is non-substantive due to the certainty at the date the arrangement was entered into that the event will be achieved. In the second quarter of 2015, the Company achieved the first pre-clinical milestone under the Alexion agreement and received a $1.8 million payment from Alexion. The Company is recognizing revenues from the related milestone payment over the period of performance. The remaining non-refundable pre-clinical milestones that are expected to be achieved as a result of the Company’s efforts during the period of substantial involvement are considered substantive and are recognized as revenue upon the achievement of the milestone, assuming all other revenue recognition criteria are met. The Company has recognized and received an aggregate of $2.0 million in substantive milestones through March 31, 2017. Milestones that are expected to be achieved after the period of substantial involvement are not considered substantive because the Company does not contribute effort to the achievement of such milestones. These milestones are recognized as revenue upon achievement of the milestone, assuming all other revenue recognition criteria are met, as there are no undelivered elements remaining and no continuing performance obligations . During the three months ended March 31, 2017, the Company recognized revenue under the Alexion agreement of $4.4 million, which represents $2.8 million of reimbursable research and development costs, as well as a portion of the $15.0 million upfront payment and the $1.75 million non-substantive milestone payment previously received. During the three months ended March 31, 2016, the Company recognized revenue under the Alexion agreement of $6.6 million, which represents $4.2 million of reimbursable research and development costs, a $0.75 million milestone payment, which was recognized upon achievement, as well as a portion of the $15.0 million upfront payment and the $1.75 million non-substantive milestone payment previously received. During the three months ended March 31, 2017, the Company received $3.6 million related to reimbursable research and development costs under the Alexion agreement. As of March 31, 2017, the Company has recorded unbilled accounts receivable of $2.8 million related to reimbursable research and development costs under the Alexion agreement for activities performed during the first quarter of 2017. |
Term Loan
Term Loan | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure Text Block | |
Term Loan | 7. Term Loan In May 2013, the Company entered into a loan and security agreement with Silicon Valley Bank (the 2013 Term Loan), which provided for up to $5.0 million in funding, to be made available in three tranches. Loan advances accrue interest at a fixed rate of 2% above the prime rate. In June 2013, the Company drew the first loan advance of $1.0 million under the 2013 Term Loan and was required to make interest‑only payments until April 1, 2014, and consecutive monthly payments of principal, plus accrued interest, over the remaining term through March 2017. In September 2013, the Company drew the second loan advance of $2.0 million under the 2013 Term Loan and was required to make interest‑only payments until April 1, 2014, and consecutive monthly payments of principal, plus accrued interest, over the remaining term through March 2017. In June 2014, the Company drew the remaining $2.0 million advance under the 2013 Term Loan and was required to make interest‑only payments until January 1, 2015, and consecutive monthly payments of principal, plus accrued interest, over the remaining term through December 2017. In November 2014, the Company amended the 2013 Term Loan to allow the Company to borrow an additional $5.0 million (the 2014 Term Loan). The Company accounted for the amendment as a modification to the existing 2013 Term Loan. The Company immediately drew the additional $5.0 million under the 2014 Term Loan and was required to make interest‑only payments until December 1, 2015, and consecutive monthly payments of principal, plus accrued interest, over the remaining term through November 2018. The Company is required to pay a fee of 4% of the total loan advances at the end of the term of each of the 2013 Term Loan and the 2014 Term Loan. The fee is being accreted to interest expense over the term of the 2013 Term Loan and the 2014 Term Loan. In the event of prepayment, the Company is obligated to pay 1% to 2% of the amount of the outstanding principal depending upon the timing of the prepayment. The 2013 Term Loan and 2014 Term Loan are collateralized by a blanket lien on all corporate assets, excluding intellectual property, and by a negative pledge of the Company’s intellectual property. The 2013 Term Loan and 2014 Term Loan contain customary default provisions that include material adverse events, as defined therein. The Company has determined that the risk of subjective acceleration under the material adverse events clause is remote and therefore has classified the outstanding principal in current and long‑term liabilities based on scheduled principal payments. The Company assessed all terms and features of the 2013 Term Loan and the 2014 Term Loan in order to identify any potential embedded features that would require bifurcation. As part of this analysis, the Company assessed the economic characteristics and risks of the term loan, including put and call features. The Company determined that all features of each of the 2013 Term Loan and the 2014 Term Loan are clearly and closely associated with a debt host and do not require bifurcation as a derivative liability, or the fair value of the feature is immaterial to the Company’s financial statements. The Company will continue to reassess the features on a quarterly basis to determine if they require separate accounting. Future minimum payments, which include principal and interest due under each of the 2013 Term Loan and the 2014 Term Loan, are $1.9 million, in the aggregate, for the remainder of 2017 and $1.6 million, in the aggregate, thereafter. In connection with the 2013 Term Loan, the Company issued a warrant to Silicon Valley Bank to purchase 150,000 shares of Series A convertible preferred stock at an exercise price of $1.00 per share (the Series A Warrant). In connection with the 2014 Term Loan, the Company issued an additional warrant to Silicon Valley Bank to purchase 83,333 shares of Series B convertible preferred stock at an exercise price of $1.20 per share (the Series B Warrant). On May 13, 2015, Silicon Valley Bank exercised the Series A Warrant and the Series B Warrant pursuant to the cashless exercise feature of the warrants. In connection with the exercise of the Series A Warrant under the 2013 Term Loan, the Company issued 21,281 shares of common stock to Silicon Valley Bank. Warrants to purchase 5,991 shares of common stock were cancelled as payment for the aggregate exercise price of the Series A Warrant to Silicon Valley Bank. In connection with the exercise of the Series B Warrant under the 2014 Term Loan, the Company issued 11,157 shares of common stock. Warrants to purchase 3,994 shares of common stock were cancelled as payment for the aggregate exercise price of the Series B Warrant. The Company recorded a debt discount upon issuance of the warrants, which is being accreted as interest expense over the remaining term of the loan. The Company recorded interest expense related to the Series A Warrant and the Series B Warrant of less than $0.1 million in the three months ended March 31, 2017 and 2016, respectively. |
Stock Awards
Stock Awards | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure Text Block | |
Stock Awards | 8. Stock Awards 2015 Stock Option and Incentive Plan In 2015, the Company’s board of directors and stockholders approved the 2015 Stock Option and Incentive Plan (the 2015 Plan), which replaced the Company’s 2011 Stock Option and Grant Plan, as amended (the 2011 Plan). The 2015 Plan includes incentive stock options, nonstatutory stock options, stock appreciation rights, restricted stock, restricted stock units, unrestricted stock, performance share awards and cash‑based awards. The Company initially reserved a total of 1,460,084 shares of common stock for the issuance of awards under the 2015 Plan. The 2015 Plan provides that the number of shares reserved and available for issuance under the 2015 Plan will be cumulatively increased on January 1 of each calendar year by 4% of the number of shares of common stock issued and outstanding on the immediately preceding December 31 or such lesser amount as specified by the compensation committee of the board of directors. For the calendar year beginning January 1, 2017, the number of shares reserved for issuance under the 2015 Plan was increased by 1,325,019 shares. In addition, the total number of shares reserved for issuance is subject to adjustment in the event of a stock split, stock dividend or other change in our capitalization. At March 31, 2017, there were 2,138,101 shares available for future grant under the 2015 Plan. Awards Options and restricted stock awards granted by the Company generally vest ratably over four years, with a one‑year cliff for new employee awards, and are exercisable from the date of grant for a period of ten years. A summary of the Company’s unvested restricted stock and related information follows: Weighted-Average Grant Date Shares Fair Value Unvested at December 31, 2016 2,125 $ 1.25 Vested (1,871) 1.22 Repurchased — — Unvested at March 31, 2017 254 1.49 The total fair value of restricted stock that vested during the three months ended March 31, 2017 and 2016 was $0.1 million and $0.7 million, respectively. A summary of the Company’s stock option activity and related information follows: Weighted- Remaining Aggregate Average Contractual Intrinsic Exercise Life Value(1) Shares Price (in Years) (in thousands) Outstanding at December 31, 2016 2,622,741 $ 11.67 8.30 $ 44,025 Granted 750,300 35.94 Exercised (124,135) 7.87 Canceled (11,863) 6.80 Outstanding at March 31, 2017 3,237,043 $ 17.45 8.58 $ 72,949 Exercisable at March 31, 2017 958,200 $ 7.76 7.78 $ 30,882 Vested and expected to vest at March 31, 2017 3,237,043 $ 17.45 8.58 $ 72,949 (1) Intrinsic value represents the amount by which the fair market value as of March 31, 2017 of the underlying common stock exceeds the exercise price of the option. The fair value of stock options is estimated on the grant date using the Black‑Scholes option‑pricing model based on the following weighted average assumptions: Three Months Ended March 31, 2017 March 31, 2016 Risk-free interest rate 2.11 % 1.59 % Expected dividend yield — % — % Expected term (years) 6.0 6.0 Expected stock price volatility 75.43 % 76.74 % The weighted‑average grant date fair value of options granted in the three months ended March 31, 2017 and 2016 was $23.98 and $10.29 respectively. The total intrinsic value of options exercised in the three months ended March 31, 2017 and 2016 was $3.5 million and $0.4 million, respectively. Total stock‑based compensation expense recognized for all stock‑based compensation awards in the condensed consolidated statements of operations and comprehensive loss is as follows (in thousands): Three Months Ended March 31, 2017 2016 Research and development $ 1,124 $ 526 General and administrative 1,116 576 Total stock-based compensation expense $ 2,240 $ 1,102 At March 31, 2017, the Company had $31.4 million of total unrecognized compensation cost related to non-vested stock awards, which is expected to be recognized over a weighted‑average period of 2.73 years. Due to an operating loss, the Company does not record tax benefits associated with stock‑based compensation or option exercises. Tax benefit will be recorded when realized. 2015 Employee Stock Purchase Plan In 2015, the Company’s board of directors and stockholders approved the 2015 Employee Stock Purchase Plan (the 2015 ESPP), which became effective upon the closing of the IPO in May 2015. The Company initially reserved a total of 243,347 shares of common stock for issuance under the 2015 ESPP. The 2015 ESPP provides that the number of shares reserved and available for issuance under the 2015 ESPP will be cumulatively increased on January 1 of each calendar year by 1% of the number of shares of common stock issued and outstanding on the immediately preceding December 31 or such lesser amount as specified by the compensation committee of the board of directors. For the calendar year beginning January 1, 2017, the number of shares reserved for issuance under the 2015 ESPP was increased by 331,254 shares. The Company issued no shares under the ESPP during the three months ended March 31, 2017. |
Net Loss per Share
Net Loss per Share | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure Text Block | |
Net Loss per Share | 9. Net Loss per Share Basic net loss per share applicable to common stockholders is calculated by dividing net loss applicable to common stockholders by the weighted average shares outstanding during the period, without consideration for common stock equivalents. Diluted net loss per share applicable to common stockholders is calculated by adjusting weighted average shares outstanding for the dilutive effect of common stock equivalents outstanding for the period. For purposes of the dilutive net loss per share applicable to common stockholders calculation, stock options, and unvested restricted stock are considered to be common stock equivalents but are excluded from the calculation of diluted net loss per share applicable to common stockholders, as their effect would be anti‑dilutive; therefore, basic and diluted net loss per share applicable to common stockholders were the same for all periods presented as a result of the Company’s net loss. The following common stock equivalents were excluded from the calculation of diluted net loss per share applicable to common stockholders for the periods indicated because including them would have had an anti‑dilutive effect. Three Months Ended March 31, 2017 2016 Stock options 3,237,043 2,395,469 Unvested restricted stock 254 90,130 Total 3,237,297 2,485,599 The weighted average number of common shares used in net loss per share applicable to common stockholders on a basic and diluted basis were 33,189,759 and 27,087,919 for the three months ended March 31, 2017 and 2016, respectively. |
Commitments
Commitments | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure Text Block | |
Commitments | 10. Commitments On February 12, 2015, the Company entered into a lease for approximately 38,500 rentable square feet of office and laboratory space in Cambridge, Massachusetts, which the Company gained control over on June 15, 2015, and occupancy commenced in October 2015. The lease ends on October 31, 2022. The Company has an option to extend the lease for five additional years. The lease has a total commitment of $17.8 million over the seven year term. The Company has agreed to pay an initial annual base rent of approximately $2.3 million, which rises periodically until it reaches approximately $2.8 million. The Company is recording rent expense on a straight-line basis through the end of the lease term. The Company has recorded deferred rent on the condensed consolidated balance sheet at March 31, 2017, accordingly. The lease provides the Company with an allowance for leasehold improvements of $4.3 million. The Company accounts for leasehold improvement incentives as a reduction to rent expense ratably over the lease term. The balance from the leasehold improvement incentives is included in lease incentive obligations on the balance sheets. The lease agreement required the Company to pay a security deposit of $1.3 million, which is recorded in restricted cash on the Company’s balance sheet. For the three months ended March 31, 2017 and 2016, rent expense was $0.5 million and $0.6 million, respectively. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure Text Block | |
Subsequent Events | 11. Subsequent Events Follow-On Public Offering On April 4, 2017, the Company closed the April 2017 follow-on public offering and received net proceeds of $215.6 million, after deducting underwriting discounts and commissions and offering expenses payable by the Company. Lease Agreement On April 28, 2017, the Company entered into a lease agreement (the Lease Agreement) with UP 45/75 Sidney Street, LLC (Landlord) for approximately 99,833 rentable square feet of office and laboratory space located at 45 Sidney Street in Cambridge, Massachusetts. The initial term of the Lease Agreement will be for a 146 month period, which the Company currently anticipates will commence on October 1, 2017. The Lease Agreement also provides the Company with an option to extend the lease for two consecutive five-year periods. During the initial term of the Lease Agreement, the Company’s monthly base rent will start at approximately $641,000 beginning on the commencement date through the 14 month anniversary of the commencement date. The monthly base rent will increase by 3.0% on the 14 month anniversary of the commencement date and will increase by an additional 3.0% on an annual basis for the remainder of the initial term up to a maximum monthly base rent of approximately $887,000. The Landlord has also agreed to provide the Company with a tenant improvement allowance of approximately $14.2 million for improvements to be made to the premises. The Company will be obligated to maintain a security deposit with the Landlord in the amount of $3.5 million, which is subject to reduction by up to $1.0 million during the term of the Lease Agreement, subject to the satisfaction of specified terms and conditions. |
Summary of Significant Accoun17
Summary of Significant Accounting Policies and Recent Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Policy Text Blocks | |
Basis of Presentation | Basis of Presentation The unaudited interim condensed consolidated financial statements of the Company included herein have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) as found in the Accounting Standards Codification (ASC), Accounting Standards Update (ASU) of the Financial Accounting Standards Board (FASB) and the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted from this report, as is permitted by such rules and regulations. Accordingly, these financial statements should be read in conjunction with the financial statements as of and for the year ended December 31, 2016 and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, filed with the SEC on March 9, 2017. The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited financial statements and include the accounts of the Company and its wholly-owned subsidiary, Blueprint Medicines Security Corporation, which is a Massachusetts subsidiary created to buy, sell, and hold securities. All intercompany transactions and balances have been eliminated. In the opinion of the Company’s management, the accompanying unaudited interim condensed consolidated financial statements contain all adjustments which are necessary to present fairly the Company’s financial position as of March 31, 2017 and the results of its operations and cash flows for the three months ended March 31, 2017. Such adjustments are of a normal and recurring nature. The results for the three months ended March 31, 2017 are not necessarily indicative of the results for the year ending December 31, 2017, or for any future period. On December 13, 2016, the Company closed its underwritten public offering of 5,750,000 shares. The significant increase in shares outstanding is expected to impact the year-over-year comparability of the Company’s net loss per share calculations. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires the Company’s management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Management considers many factors in selecting appropriate financial accounting policies and in developing the estimates and assumptions that are used in the preparation of the financial statements. Management must apply significant judgment in this process. Management’s estimation process often may yield a range of potentially reasonable estimates and management must select an amount that falls within that range of reasonable estimates. Estimates are used in the following areas, among others: stock‑based compensation expense; revenue recognition; accrued expenses; and income taxes. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which supersedes the revenue recognition requirements in ASC 605 Multiple-Element Arrangements In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (ASU No. 2016-09), which amends ASC Topic 718, Compensation – Stock Compensation . The new standard identifies areas for simplification involving several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows. The new standard was effective for the Company on January 1, 2017. The Company applied ASU 2016-09 using a modified retrospective approach and adopted the option to recognize gross stock compensation expense with actual forfeitures recognized as they occur. Given that the application of the estimated forfeiture rate prior to January 1, 2017 resulted in an insignificant reduction in stock-based compensation expense, the cumulative-effect adjustment to retained earnings recognized as of January 1, 2017 was not material to the consolidated financial statements. The adoption of ASU 2016-09 also requires all income tax adjustments to be recognized in the consolidated statements of operations. As the increase in net deferred tax assets is fully offset by a corresponding increase to the deferred tax asset valuation allowance, there was no material impact of the adoption of this standard. The amount of deferred tax assets that had not been previously recognized due to the recognition of excess tax benefits is $1.1 million. In February 2016, the FASB issued ASU No. 2016-02, Leases (ASU No. 2016-02), which will change the way the Company recognizes its leased assets. ASU No. 2016-02 will require organizations that lease assets—referred to as “lessees”—to recognize on the balance sheet the assets and liabilities representing the rights and obligations created by those leases. ASU No. 2016-02 will also require disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. The standard is effective for annual reporting periods (including interim reporting periods within those years) beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the methods of adoption allowed by the new standard and the effect that adoption of the standard is expected to have on the Company’s consolidated financial statements and related disclosures. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230) (ASU No. 2016-15) , which simplifies certain elements of cash flow classification. The new guidance is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. ASU No. 2016-15 is effective for annual periods beginning after December 15, 2017. The Company is currently evaluating the impact the adoption of ASU No. 2016-15 will have on its consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, Restricted Cash (ASU No. 2016-18). The amendments in ASU No. 2016-18 require an entity to reconcile and explain the period-over-period change in total cash, cash equivalents and restricted cash within its statements of cash flows. ASU No. 2016-18 is effective for fiscal years (including interim reporting periods within those years) beginning after December 15, 2017. Early adoption is permitted. A reporting entity must apply the amendments in ASU No. 2016-18 using a full retrospective approach. The Company believes that the adoption of this guidance will not have a significant impact on its consolidated financial statements and related disclosures. |
Cash Equivalents and Investme18
Cash Equivalents and Investments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Table Text Blocks | |
Schedule of cash equivalents and investments, available-for-sale | Cash equivalents and investments, available-for-sale, consisted of the following at March 31, 2017 and December 31, 2016 (in thousands): Average Amortized Unrealized Unrealized Fair March 31, 2017 Maturity Cost Gain Losses Value Cash equivalents: Money market funds $ 50,364 $ — $ — $ 50,364 Government agency securities 5,991 1 — 5,992 Investments, available-for-sale: U.S. treasury obligations 321 Days 180,084 — (115) 179,969 Total $ 236,439 $ 1 $ (115) $ 236,325 Average Amortized Unrealized Unrealized Fair December 31, 2016 Maturity Cost Gain Losses Value Cash equivalents: Money market funds $ 52,069 $ — $ — $ 52,069 Investments, available-for-sale: U.S. treasury obligations 298 Days 216,167 14 (32) 216,149 Total $ 268,236 $ 14 $ (32) $ 268,218 |
Fair Value of Financial Instr19
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Table Text Blocks | |
Schedule of financial instruments measured at fair value | Financial instruments measured at fair value as of March 31, 2017 are classified below based on the fair value hierarchy described above: Active Observable Unobservable March 31, Markets Inputs Inputs Description 2017 (Level 1) (Level 2) (Level 3) Financial Assets Cash equivalents: Money market funds $ 50,364 $ 50,364 $ — $ — Government agency securities 5,992 5,992 Investments, available-for-sale: U.S Treasury obligations 179,969 179,969 — — Total $ 236,325 $ 236,325 $ — $ — Financial instruments measured at fair value as of December 31, 2016 are classified below based on the fair value hierarchy described above: Active Observable Unobservable December 31, Markets Inputs Inputs Description 2016 (Level 1) (Level 2) (Level 3) Financial Assets Cash equivalents: Money market funds $ 52,069 $ 52,069 $ — $ — Investments, available-for-sale: U.S Treasury obligations 216,149 216,149 — — Total $ 268,218 $ 268,218 $ — $ — |
Stock Awards (Tables)
Stock Awards (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Table Text Blocks | |
Summary of unvested restricted stock | Weighted-Average Grant Date Shares Fair Value Unvested at December 31, 2016 2,125 $ 1.25 Vested (1,871) 1.22 Repurchased — — Unvested at March 31, 2017 254 1.49 |
Summary of stock option activity | Weighted- Remaining Aggregate Average Contractual Intrinsic Exercise Life Value(1) Shares Price (in Years) (in thousands) Outstanding at December 31, 2016 2,622,741 $ 11.67 8.30 $ 44,025 Granted 750,300 35.94 Exercised (124,135) 7.87 Canceled (11,863) 6.80 Outstanding at March 31, 2017 3,237,043 $ 17.45 8.58 $ 72,949 Exercisable at March 31, 2017 958,200 $ 7.76 7.78 $ 30,882 Vested and expected to vest at March 31, 2017 3,237,043 $ 17.45 8.58 $ 72,949 (1) Intrinsic value represents the amount by which the fair market value as of March 31, 2017 of the underlying common stock exceeds the exercise price of the option. |
Assumptions used in estimating fair value of stock options on grant date | Three Months Ended March 31, 2017 March 31, 2016 Risk-free interest rate 2.11 % 1.59 % Expected dividend yield — % — % Expected term (years) 6.0 6.0 Expected stock price volatility 75.43 % 76.74 % |
Summary of stock-based compensation expense recognized in statements of operations | Total stock‑based compensation expense recognized for all stock‑based compensation awards in the condensed consolidated statements of operations and comprehensive loss is as follows (in thousands): Three Months Ended March 31, 2017 2016 Research and development $ 1,124 $ 526 General and administrative 1,116 576 Total stock-based compensation expense $ 2,240 $ 1,102 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Table Text Blocks | |
Schedule of common stock equivalents excluded from calculation of diluted net loss per share applicable to common stockholders | Three Months Ended March 31, 2017 2016 Stock options 3,237,043 2,395,469 Unvested restricted stock 254 90,130 Total 3,237,297 2,485,599 |
Nature of Business (Details)
Nature of Business (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 04, 2017 | Dec. 13, 2016 | May 05, 2015 | Mar. 31, 2017 | Mar. 31, 2016 |
Nature of Business | |||||
Proceeds from issuance of common stock | $ 902 | $ 29 | |||
Cash, cash equivalents and investments | $ 236,300 | ||||
IPO | Common Stock | |||||
Nature of Business | |||||
Stock sold (in shares) | 9,367,708 | ||||
Share price (in dollars per share) | $ 18 | ||||
Proceeds from issuance of IPO shares | $ 154,800 | ||||
Follow-on Offering | Common Stock | |||||
Nature of Business | |||||
Stock sold (in shares) | 5,750,000 | ||||
Share price (in dollars per share) | $ 25 | ||||
Proceeds from issuance of common stock | $ 134,500 | ||||
Follow-on Offering | Common Stock | Subsequent Event | |||||
Nature of Business | |||||
Stock sold (in shares) | 5,750,000 | ||||
Share price (in dollars per share) | $ 40 | ||||
Proceeds from issuance of common stock | $ 215,600 | ||||
Underwriters' Option | Common Stock | |||||
Nature of Business | |||||
Stock sold (in shares) | 750,000 | 1,221,874 | |||
Underwriters' Option | Common Stock | Subsequent Event | |||||
Nature of Business | |||||
Stock sold (in shares) | 750,000 |
Summary of Significant Accoun23
Summary of Significant Accounting Policies and Recent Accounting Pronouncements - Basis of Presentation (Details) | Dec. 13, 2016shares |
Follow-on Offering | Common Stock | |
Basis of Presentation | |
Stock sold (in shares) | 5,750,000 |
Summary of Significant Accoun24
Summary of Significant Accounting Policies and Recent Accounting Pronouncements - Recent Accounting Pronouncements (Details) $ in Millions | Mar. 31, 2017USD ($) |
Accounting Standards Update 2016-09 | |
Recent Accounting Pronouncements | |
Deferred tax assets | $ 1.1 |
Cash Equivalents and Investme25
Cash Equivalents and Investments - Tabular Disclosure - Total (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Cash Equivalents and Investments | ||
Total, Amortized Cost | $ 236,439 | $ 268,236 |
Total, Unrealized Gain | 1 | 14 |
Total, Unrealized Losses | (115) | (32) |
Total, Fair Value | $ 236,325 | $ 268,218 |
US Treasury obligations | ||
Cash Equivalents and Investments | ||
Average Maturity | 321 days | 298 days |
Available-for-sale, Amortized Cost | $ 180,084 | $ 216,167 |
Available-for-sale, Unrealized Gain | 14 | |
Available-for-sale, Unrealized Losses | (115) | (32) |
Available-for-sale, Fair Value | 179,969 | 216,149 |
Money market fund | ||
Cash Equivalents and Investments | ||
Cash equivalents, Amortized Cost | 50,364 | 52,069 |
Cash equivalents, Fair Value | 50,364 | $ 52,069 |
Government agency securities | ||
Cash Equivalents and Investments | ||
Cash equivalents, Amortized Cost | 5,991 | |
Cash equivalents, Unrealized Gain | 1 | |
Cash equivalents, Fair Value | $ 5,992 |
Cash Equivalents and Investme26
Cash Equivalents and Investments - Additional Information (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($)security | |
Unrealized loss position | |
Unrealized loss position for less than 12 months | $ 179,900 |
Unrealized loss position for more than 12 months | $ 0 |
Number of held securities in an unrealized loss position | security | 33 |
Realized gain (loss) on sales of investments | |
Realized gain (loss) on sales of investments | $ 0 |
Adjustment for other than temporary fair value decline | |
Adjustment for other than temporary fair value decline | $ 0 |
Fair Value of Financial Instr27
Fair Value of Financial Instruments (Details) - Recurring - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Value of Financial Instruments | ||
Total | $ 236,325 | $ 268,218 |
Money market fund | ||
Fair Value of Financial Instruments | ||
Cash equivalents, Fair Value | 50,364 | 52,069 |
Government agency securities | ||
Fair Value of Financial Instruments | ||
Cash equivalents, Fair Value | 5,992 | |
US Treasury obligations | ||
Fair Value of Financial Instruments | ||
Investments, available-for-sale | 179,969 | 216,149 |
Active Markets (Level 1) | ||
Fair Value of Financial Instruments | ||
Total | 236,325 | 268,218 |
Active Markets (Level 1) | Money market fund | ||
Fair Value of Financial Instruments | ||
Cash equivalents, Fair Value | 50,364 | 52,069 |
Active Markets (Level 1) | Government agency securities | ||
Fair Value of Financial Instruments | ||
Cash equivalents, Fair Value | 5,992 | |
Active Markets (Level 1) | US Treasury obligations | ||
Fair Value of Financial Instruments | ||
Investments, available-for-sale | $ 179,969 | $ 216,149 |
Restricted Cash (Details)
Restricted Cash (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Restricted Cash | ||
Restricted cash included in long-term assets | $ 1,267 | $ 1,267 |
Corporate Headquarters Lease | ||
Restricted Cash | ||
Restricted cash included in long-term assets | $ 1,300 | $ 1,300 |
Collaborations (Details)
Collaborations (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2016USD ($)item | Mar. 31, 2015USD ($)item | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2016USD ($) | |
Collaborations | ||||||
Collaboration revenue | $ 5,840 | $ 6,856 | ||||
Unbilled accounts receivable for reimbursable research and development costs | 2,826 | $ 3,577 | ||||
Roche Agreement | ||||||
Collaborations | ||||||
Non-refundable upfront payment received | $ 45,000 | |||||
Number of deliverables | item | 5 | |||||
Collaboration revenue | 1,400 | $ 200 | ||||
Number of collaboration programs with agreed upon targets | item | 3 | |||||
Roche Agreement | Maximum | ||||||
Collaborations | ||||||
Number of potential collaboration programs | item | 5 | |||||
Number of collaboration programs to select targets | item | 2 | |||||
Total eligible contingent option fees and milestone payments | $ 965,000 | 965,000 | ||||
Eligible option fees and milestones prior to licensing for all potential collaboration programs | $ 215,000 | |||||
Roche Agreement | Exercise Of License Right Option | Maximum | ||||||
Collaborations | ||||||
Number of collaboration programs with specified commercial rights for each party | item | 2 | |||||
Roche Agreement | Roche | ||||||
Collaborations | ||||||
Number of option rights to obtain exclusive license | item | 5 | |||||
Roche Agreement | Roche | Prior To Exercise License Right Option | ||||||
Collaborations | ||||||
Written termination notice period | 120 days | |||||
Roche Agreement | Roche | Exercise Of License Right Option | Maximum | ||||||
Collaborations | ||||||
Number of collaboration programs with exclusive commercialization rights for licensed products | item | 3 | |||||
Roche Agreement | Roche | Exercise Of License Option Product Not Commercially Sold | ||||||
Collaborations | ||||||
Written termination notice period | 120 days | |||||
Roche Agreement | Roche | Exercise Of License Option Product Commercially Sold | ||||||
Collaborations | ||||||
Written termination notice period | 180 days | |||||
Alexion | ||||||
Collaborations | ||||||
Collaborative partner's funding responsibility of research and development costs incurred under the research plan (as a percent) | 100.00% | |||||
Non-refundable upfront payment received | $ 15,000 | 15,000 | ||||
Payment receivable upon achievement of milestone | $ 250,000 | |||||
Royalty term from first commercial sale, option 1 | 10 years | |||||
Royalty term from first commercial sale, option 2 | 15 years | |||||
Written termination notice period | 90 days | |||||
Number of deliverables | item | 3 | |||||
Refund provisions | $ 0 | |||||
Non-substantive milestone payment previously | 1,750 | 1,750 | ||||
Collaboration revenue | 4,400 | 6,600 | ||||
Reimbursable research and development costs recognized | 2,800 | 4,200 | ||||
Reimbursable research and development costs received | 3,600 | |||||
Unbilled accounts receivable for reimbursable research and development costs | 2,800 | |||||
Alexion | Pre-clinical milestone for first licensed product | ||||||
Collaborations | ||||||
Achieved milestone payment received which will be recognized over period of performance | $ 1,800 | |||||
Achieved milestone payment received which will be recognized upon acheivment | $ 750 | |||||
Revenue recognized from milestone | $ 2,000 | |||||
Alexion | Pre-clinical milestone for first licensed product | Maximum | ||||||
Collaborations | ||||||
Payment receivable upon achievement of milestone | 6,000 | |||||
Alexion | Development milestone for first licensed product | Maximum | ||||||
Collaborations | ||||||
Payment receivable upon achievement of milestone | 83,000 | |||||
Alexion | Development milestone for second licensed product | Maximum | ||||||
Collaborations | ||||||
Payment receivable upon achievement of milestone | 61,500 | |||||
Alexion | Commercial milestone | ||||||
Collaborations | ||||||
Payment receivable upon achievement of milestone | $ 51,000 |
Term Loan - General Information
Term Loan - General Information (Details) - Secured Debt $ in Millions | 1 Months Ended | 3 Months Ended | ||||
Nov. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Sep. 30, 2013USD ($) | Jun. 30, 2013USD ($) | May 31, 2013USD ($)item | Mar. 31, 2017 | |
Term Loan | ||||||
Percentage fee payable on total loan advances at end of loan (as a percent) | 4.00% | |||||
Percentage fee payable on outstanding principal in event of prepayment of loan advances, low end of range (as a percent) | 1.00% | |||||
Percentage fee payable on outstanding principal in event of prepayment of loan advances, high end of range (as a percent) | 2.00% | |||||
2013 Term Loan | ||||||
Term Loan | ||||||
Maximum borrowing capacity | $ 5 | |||||
Number of tranches | item | 3 | |||||
Proceeds from term loan | $ 2 | $ 2 | $ 1 | |||
2013 Term Loan | Prime Rate | ||||||
Term Loan | ||||||
Fixed rate based on percentage points added to base rate (as a percent) | 2.00% | |||||
2014 Term Loan | ||||||
Term Loan | ||||||
Maximum borrowing capacity | $ 5 | |||||
Proceeds from term loan | $ 5 |
Term Loan - Future Minimum Paym
Term Loan - Future Minimum Payments (Details) $ in Millions | Mar. 31, 2017USD ($) |
Future minimum payments | |
Future minimum payments for remainder of year | $ 1.9 |
Thereafter | $ 1.6 |
Term Loan - Warrants (Details)
Term Loan - Warrants (Details) - USD ($) $ / shares in Units, $ in Millions | May 13, 2015 | Mar. 31, 2017 | Mar. 31, 2016 | Nov. 30, 2014 | May 31, 2013 |
Series A and Series B Warrants | Maximum | |||||
Warrants | |||||
Interest expense | $ 0.1 | $ 0.1 | |||
2013 Term Loan | Series A Warrants | |||||
Warrants | |||||
Number of shares that can be purchased by the warrants issued | 150,000 | ||||
Exercise price of warrants issued (in dollars per share) | $ 1 | ||||
Number of warrants cancelled | 5,991 | ||||
Stock issued upon exercise of warrants | 21,281 | ||||
2014 Term Loan | Series B Warrants | |||||
Warrants | |||||
Number of shares that can be purchased by the warrants issued | 83,333 | ||||
Exercise price of warrants issued (in dollars per share) | $ 1.20 | ||||
Number of warrants cancelled | 3,994 | ||||
Stock issued upon exercise of warrants | 11,157 |
Stock Awards - 2015 Stock Optio
Stock Awards - 2015 Stock Option and Incentive Plan (Details) - 2015 Stock Option and Incentive Plan - shares | Jan. 01, 2017 | Dec. 31, 2016 | Mar. 31, 2017 |
Stock Awards | |||
Initial shares of common stock authorized for issuance of stock awards | 1,460,084 | ||
Increase in number of shares available for grant (as a percent) | 4.00% | ||
Increase in number of shares available for grant | 1,325,019 | ||
Number of shares available for grant | 2,138,101 |
Stock Awards - Awards - General
Stock Awards - Awards - General Information (Details) | 3 Months Ended |
Mar. 31, 2017 | |
Employee Stock Options | |
Stock Awards | |
Award vesting period | 4 years |
Cliff vesting period for new employees | 1 year |
Award expiration period | 10 years |
Restricted Stock | |
Stock Awards | |
Award vesting period | 4 years |
Cliff vesting period for new employees | 1 year |
Award expiration period | 10 years |
Stock Awards - Summary of Unves
Stock Awards - Summary of Unvested Restricted Stock Activity (Details) - Restricted Stock - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Shares | ||
Unvested at beginning of period (in shares) | 2,125 | |
Vested (in shares) | (1,871) | |
Unvested at end of period (in shares) | 254 | |
Weighted-Average Grant Date Fair Value | ||
Unvested at beginning or period (in dollars per share) | $ 1.25 | |
Vested (in dollars per share) | 1.22 | |
Unvested at end of period (in dollars per share) | $ 1.49 | |
Total fair value of restricted stock that vested | $ 0.1 | $ 0.7 |
Stock Awards - Summary of Stock
Stock Awards - Summary of Stock Option Activity (Details) - Employee Stock Options - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Shares | ||
Outstanding at beginning of period (in shares) | 2,622,741 | |
Granted (in shares) | 750,300 | |
Exercised (in shares) | (124,135) | |
Canceled (in shares) | (11,863) | |
Outstanding at end of period (in shares) | 3,237,043 | 2,622,741 |
Weighted-Average Exercise Price | ||
Outstanding at beginning of period (in dollars per share) | $ 11.67 | |
Granted (in dollars per share) | 35.94 | |
Exercised (in dollars per share) | 7.87 | |
Canceled (in dollars per share) | 6.80 | |
Outstanding at end of period (in dollars per share) | $ 17.45 | $ 11.67 |
Additional disclosures | ||
Shares - Exercisable (in shares) | 958,200 | |
Shares - Vested and expected to vest (in shares) | 3,237,043 | |
Weighted-Average Exercise Price - Exercisable (in dollars per share) | $ 7.76 | |
Weighted-Average Exercise Price - Vested and expected to vest (in dollars per share) | $ 17.45 | |
Remaining Contractual Life - Outstanding | 8 years 6 months 29 days | 8 years 3 months 18 days |
Remaining Contractual Life - Exercisable | 7 years 9 months 11 days | |
Remaining Contractual Life - Vested and expected to vest | 8 years 6 months 29 days | |
Aggregate Intrinsic Value - Outstanding | $ 72,949 | $ 44,025 |
Aggregate Intrinsic Value - Exercisable | 30,882 | |
Aggregate Intrinsic Value - Vested and expected to vest | $ 72,949 |
Stock Awards - Weighted Average
Stock Awards - Weighted Average Assumptions (Details) - Employee Stock Options - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Assumptions used in estimating the fair value of stock options granted | ||
Risk-free interest rate | 2.11% | 1.59% |
Expected term (in years) | 6 years | 6 years |
Expected stock price volatility | 75.43% | 76.74% |
Additional disclosures | ||
Weighted-average grant date fair value of options granted | $ 23.98 | $ 10.29 |
Total intrinsic value of options exercised | $ 3.5 | $ 0.4 |
Stock Awards - Stock-based Comp
Stock Awards - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Total stock based compensation expense | ||
Total stock-based compensation expense | $ 2,240 | $ 1,102 |
Research and development | ||
Total stock based compensation expense | ||
Total stock-based compensation expense | 1,124 | 526 |
General and administrative | ||
Total stock based compensation expense | ||
Total stock-based compensation expense | $ 1,116 | $ 576 |
Stock Awards - Unrecognized Com
Stock Awards - Unrecognized Compensation Costs (Details) - Restricted Stock $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Stock Awards | |
Total unrecognized compensation cost related to non-vested stock awards | $ 31.4 |
Weighted-average period over which unrecognized compensation cost will be recognized | 2 years 8 months 23 days |
Stock Awards - Employee Stock P
Stock Awards - Employee Stock Purchase Plan (Details) - Employee Stock - 2015 Employee Stock Purchase Plan - shares | 1 Months Ended | 3 Months Ended | |
May 31, 2015 | Mar. 31, 2017 | Jan. 01, 2017 | |
Stock Awards | |||
Number of common shares reserved for future issuance | 243,347 | ||
Annual increase for common stock for issuance (as a percent) | 1.00% | ||
Increase of common shares reserved for future issuance | 331,254 | ||
ESPP shares issued during period | 0 |
Net Loss per Share - Anti-dilut
Net Loss per Share - Anti-dilutive Securities (Details) - shares | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Antidilutive securities excluded from computation of earnings per share | ||
Antidilutive securities excluded from computation of earnings per share | 3,237,297 | 2,485,599 |
Stock options | ||
Antidilutive securities excluded from computation of earnings per share | ||
Antidilutive securities excluded from computation of earnings per share | 3,237,043 | 2,395,469 |
Restricted Stock | ||
Antidilutive securities excluded from computation of earnings per share | ||
Antidilutive securities excluded from computation of earnings per share | 254 | 90,130 |
Net Loss per Share - Weighted A
Net Loss per Share - Weighted Average Number of Common Shares (Details) - shares | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Net Loss per Share | ||
Weighted-average number of common shares used in net loss per share applicable to common stockholders - basic | 33,189,759 | 27,087,919 |
Weighted-average number of common shares used in net loss per share applicable to common stockholders - diluted | 33,189,759 | 27,087,919 |
Commitments (Details)
Commitments (Details) - Corporate Headquarters Lease $ in Millions | Feb. 12, 2015USD ($)ft² | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) |
Operating Leases | |||
Area leased (in square feet) | ft² | 38,500 | ||
Extension period of lease term | 5 years | ||
Total commitment under the operating lease | $ 17.8 | ||
Lease term | 7 years | ||
Base annual rent, initial | $ 2.3 | ||
Base annual rent, maximum | 2.8 | ||
Allowance for leasehold improvements | 4.3 | ||
Security deposit included in restricted cash | $ 1.3 | ||
Rent expense | $ 0.5 | $ 0.6 |
Subsequent Events (Details)
Subsequent Events (Details) | Apr. 28, 2017USD ($)ft²item | Apr. 04, 2017USD ($) | Dec. 13, 2016USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) |
Follow-On Public Offering | |||||
Proceeds from issuance of common stock | $ 902,000 | $ 29,000 | |||
Follow-on Offering | Common Stock | |||||
Follow-On Public Offering | |||||
Proceeds from issuance of common stock | $ 134,500,000 | ||||
Subsequent Event | Office and Laboratory Space in Cambridge Massachusetts, 45 Sidney Street | |||||
Lease Agreement | |||||
Area leased (in square feet) | ft² | 99,833 | ||||
Lease term | 146 months | ||||
Number of extensions | item | 2 | ||||
Extension period of lease term | 5 years | ||||
Base annual rent, initial | $ 641,000 | ||||
Increase in operating leases base annual rent percentage | 3.00% | ||||
Additional annual rent increase percentage | 3.00% | ||||
Monthly base rent increase period | 14 months | ||||
Base annual rent, maximum | $ 887,000 | ||||
Allowance for leasehold improvements | 14,200,000 | ||||
Security deposit | 3,500,000 | ||||
Reduction in security deposit | $ 1,000,000 | ||||
Subsequent Event | Follow-on Offering | Common Stock | |||||
Follow-On Public Offering | |||||
Proceeds from issuance of common stock | $ 215,600,000 |