Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | May 10, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | SLDB | |
Entity Registrant Name | Solid Biosciences Inc. | |
Entity Current Reporting Status | Yes | |
Entity Central Index Key | 0001707502 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Common Stock, Shares Outstanding | 110,297,304 | |
Entity File Number | 001-38360 | |
Entity Tax Identification Number | 90-0943402 | |
Entity Address, Address Line One | 141 Portland Street, Fifth Floor | |
Entity Address, City or Town | Cambridge | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 02139 | |
City Area Code | 617 | |
Local Phone Number | 337-4680 | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common Stock $0.001 par value per share | |
Security Exchange Name | NASDAQ | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Document Transition Report | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 268,497 | $ 154,744 |
Prepaid expenses and other current assets | 5,518 | 4,157 |
Accounts receivable - related party | 280 | |
Total current assets | 274,295 | 158,901 |
Property and equipment, net | 7,461 | 8,153 |
Operating lease, right-of-use assets | 3,196 | 3,579 |
Other non-current assets | 209 | |
Restricted cash, excluding current portion | 327 | 327 |
Total assets | 285,279 | 171,169 |
Current liabilities: | ||
Accounts payable | 3,194 | 3,274 |
Accrued expenses | 6,794 | 8,640 |
Operating lease liabilities | 1,965 | 1,999 |
Finance lease liabilities | 214 | 208 |
Deferred revenue - related party | 10,662 | 10,359 |
Total current liabilities | 22,829 | 24,480 |
Operating lease liabilities, excluding current portion | 1,980 | 2,419 |
Finance lease liabilities, excluding current portion | 469 | 525 |
Deferred revenue - related party, excluding current portion | 7,001 | 10,359 |
Other non-current liabilities | 1,300 | |
Total liabilities | 32,279 | 39,083 |
Commitments and contingencies (Note 11) | ||
Preferred stock, $0.001 par value; 10,000,000 shares authorized at March 31, 2021 and December 31, 2020; no shares issued and outstanding at March 31, 2021 and December 31, 2020 | ||
Common stock, $0.001 par value; 300,000,000 shares authorized at March 31, 2021 and December 31, 2020; 110,288,567 shares issued and outstanding at March 31, 2021 and 84,893,994 shares issued and outstanding at December 31, 2020; 2,158,329 pre-funded warrants outstanding at March 31, 2021 and December 31, 2020 | 112 | 87 |
Additional paid-in capital | 674,357 | 536,568 |
Accumulated other comprehensive income | 0 | |
Accumulated deficit | (421,469) | (404,569) |
Total stockholders’ equity | 253,000 | 132,086 |
Total liabilities and stockholders’ equity | $ 285,279 | $ 171,169 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 110,288,567 | 84,893,994 |
Common stock, shares outstanding | 110,288,567 | 84,893,994 |
Pre-funded warrants outstanding | 2,158,329 | 2,158,329 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Collaboration revenue - related party | $ 3,335 | |
Operating expenses: | ||
Research and development | 14,206 | $ 19,665 |
General and administrative | 6,015 | 5,250 |
Restructuring charges | 1,944 | |
Total operating expenses | 20,221 | 26,859 |
Loss from operations | (16,886) | (26,859) |
Other income (expense): | ||
Interest (expense) income | (14) | 164 |
Other income | 1 | |
Total other income (expense), net | (14) | 165 |
Net loss | $ (16,900) | $ (26,694) |
Net loss per share attributable to common stockholders, basic and diluted | $ (0.19) | $ (0.56) |
Weighted average shares of common stock outstanding, basic and diluted | 89,267,194 | 48,059,279 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net loss | $ (16,900) | $ (26,694) |
Other comprehensive loss: | ||
Unrealized (loss) gain on available-for-sale securities | (2) | |
Comprehensive loss | $ (16,900) | $ (26,696) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid In Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Deficit [Member] |
Beginning balance at Dec. 31, 2019 | $ 80,048 | $ 48 | $ 396,278 | $ 1 | $ (316,279) |
Beginning balance, units at Dec. 31, 2019 | 48,283,270 | ||||
Equity-based compensation | 3,104 | 3,104 | |||
Net loss | (26,694) | (26,694) | |||
Vesting of restricted stock, units | 121,975 | ||||
Forfeiture of restricted stock awards units | (38,822) | ||||
Unrealized gain (loss) on available for sale securities | (2) | (2) | |||
Ending balance at Mar. 31, 2020 | 56,456 | $ 48 | 399,382 | $ (1) | (342,973) |
Ending balance, units at Mar. 31, 2020 | 48,366,423 | ||||
Beginning balance at Dec. 31, 2020 | 132,086 | $ 87 | 536,568 | (404,569) | |
Beginning balance, units at Dec. 31, 2020 | 87,052,323 | ||||
Equity-based compensation | 2,907 | 2,907 | |||
Sale of common stock, net of issuance costs | 134,878 | $ 25 | 134,853 | ||
Sale of common stock, net of issuance costs, shares | 25,000,000 | ||||
Exercise of stock options | 29 | 29 | |||
Exercise of stock options, shares | 8,150 | ||||
Net loss | (16,900) | (16,900) | |||
Vesting of restricted stock, units | 412,931 | ||||
Forfeiture of restricted stock awards units | (26,508) | ||||
Ending balance at Mar. 31, 2021 | $ 253,000 | $ 112 | $ 674,357 | $ (421,469) | |
Ending balance, units at Mar. 31, 2021 | 112,446,896 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Statement Of Stockholders Equity [Abstract] | |
Issuance costs | $ 8,872 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||
Net loss | $ (16,900) | $ (26,694) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Amortization of (discount)/premium on available-for-sale securities | (21) | |
Equity-based compensation expense | 2,907 | 3,104 |
Depreciation expense | 734 | 1,026 |
Gain on disposal of property and equipment | 3 | |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other current and non-current assets | (769) | (1,205) |
Accounts receivable - related party | (280) | |
Accounts payable | (90) | (4,309) |
Accrued expenses and other current and non-current liabilities | (3,916) | (1,175) |
Deferred revenue- related party, current and non-current | (3,055) | |
Net cash used in operating activities | (21,366) | (29,274) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (35) | (681) |
Proceeds from sale and maturities of available-for-sale securities | 7,500 | |
Purchases of available-for-sale securities | (401) | |
Net cash provided by investing activities | (35) | 6,418 |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock | 135,125 | |
Proceeds from exercise of stock options | 29 | |
Net cash provided by financing activities | 135,154 | |
Net (decrease)/increase in cash, cash equivalents and restricted cash | 113,753 | (22,856) |
Cash, cash equivalents, and restricted cash at beginning of period | 155,071 | 76,370 |
Cash, cash equivalents, and restricted cash at end of period | 268,824 | 53,514 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Offering costs in accruals | 247 | |
Property and equipment included in accounts payable and accruals | $ 10 | $ 55 |
Nature of the Business and Basi
Nature of the Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Nature of the Business and Basis of Presentation | 1. Nature of the Business and Basis of Presentation Nature of Business Solid Biosciences Inc. was organized in March 2013 under the name SOLID Ventures Management, LLC. In October 2013, the company changed its name to Solid Ventures, LLC and in June 2015, the company changed its name to Solid Biosciences, LLC. The company operated as a Delaware limited liability company under the name Solid Biosciences, LLC until immediately prior to the effectiveness of its registration statement on Form S-1 on January 25, 2018, at which time it completed a statutory corporate conversion into a Delaware corporation (the “Corporate Conversion”) and changed its name to Solid Biosciences Inc. (the “Company”). In addition, entities formed solely for the purpose of holding membership interests in the Company’s limited liability company were merged with and into the Company. As a result of the Corporate Conversion, all of the Series 1 and 2 Senior Preferred, Junior Preferred Units, Series A, B, C and D Common Units of Solid Biosciences, LLC converted into shares of common stock of Solid Biosciences Inc. on a one for 0.8485 basis and all of the unit holders of Solid Biosciences, LLC became holders of common stock of Solid Biosciences Inc. The Company’s mission is to cure Duchenne muscular dystrophy (“Duchenne”), a genetic muscle-wasting disease predominantly affecting boys. It is caused by mutations in the dystrophin gene, which result in the absence or near-absence of dystrophin protein. Dystrophin protein works to strengthen muscle fibers and protect them from daily wear and tear. Without functioning dystrophin and certain associated proteins, muscles suffer excessive damage from normal daily activities and are unable to regenerate, leading to the build-up of fibrotic, or scar, and fat tissue. The Company’s lead product candidate, SGT-001, is a gene transfer candidate under investigation for its ability to drive functional dystrophin protein expression in patients’ muscles and improve the course of the disease. SGT-001 has been granted Rare Pediatric Disease Designation and Fast Track Designation in the United States and Orphan Drug Designations in both the United States and European Union. The Company filed an Investigational New Drug application (“IND”) in September 2017 and initiated a Phase I/II clinical trial for SGT-001 in the United States during the fourth quarter of 2017 , which is called IGNITE DMD. In November 2019, IGNITE DMD was placed on clinical hold by the U.S. Food and Drug Administration (“FDA”). In April 2020, the Company submitted a response to the FDA that included changes to the clinical protocol designed to enhance patient safety, as well as information related to improvements to its manufacturing process. The FDA responded by maintaining the clinical hold and requesting further data and analyses relating to this manufacturing process. In June 2020, the Company submitted a response to the FDA that provided data related to manufacturing process improvements. In July 2020, the Company announced that the FDA responded by maintaining the clinical hold and requesting further manufacturing information and updated safety and efficacy data for all patients dosed in the trial, as well as providing direction on the total viral load to be administered per patient. In October 2020, the Company announced that the FDA lifted the clinical hold placed on the Company’s IGNITE DMD Phase I/II clinical trial. In February 2021, we resumed treatment of patients in the IGNITE DMD clinical trial. The Company is subject to risks and uncertainties common to early-stage companies in the biotechnology industry, including, but not limited to, development by competitors of new technological innovations, dependence on licenses, protection of proprietary technology, dependence on key personnel, compliance with government regulations and the need to obtain additional financing to fund operations. Product candidates currently under development will require significant additional research and development efforts, including extensive preclinical studies and clinical trials and regulatory approval, prior to commercialization. These efforts require significant amounts of additional capital, adequate personnel infrastructure and extensive compliance and reporting capabilities. The Company’s product candidates are in development. There can be no assurance that the Company’s research and development will be successfully completed, that adequate protection for the Company’s intellectual property will be obtained, that any products developed will obtain necessary government regulatory approval or that any approved products will be commercially viable. Even if the Company’s product development efforts are successful, it is uncertain when, if ever, the Company will generate significant revenue from product sales. The Company operates in an environment of rapid change in technology and substantial competition from, among others, other pharmaceutical and biotechnology companies. In addition, the Company is dependent upon the services of its employees, partners and consultants. Liquidity The accompanying condensed consolidated financial statements have been prepared on a basis that assumes the Company will continue as a going concern and which contemplates the realization of assets and satisfaction of liabilities and commitments in the ordinary course of business. Through March 31, 2021, the Company has funded its operations primarily with the proceeds from the sale of redeemable preferred units and member units, the sale of common stock and prefunded warrants to purchase shares of its common stock in private placements and the sale of common stock in its initial public offering follow-on public offering in March 2021 and sales under its at-the-market sales agreement. In accordance with Accounting Standards Codification (“ASC”) 205-40, Going Concern, the Company has evaluated whether there are conditions and events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date the financial statements are issued. As of March 31, 2021, the Company had an accumulated deficit of $421,469. During the three months ended March 31, 2021, the Company incurred a net loss of $16,900 However, the Company has based this estimate on assumptions that may prove to be wrong, and its operating plan may change as a result of many factors currently unknown to it. As a result, the Company could deplete its capital resources sooner than it currently expects. The Company expects to finance its future cash needs through a combination of equity offerings, debt financings, collaborations, strategic alliances or licensing arrangements. If the Company is unable to obtain funding, the Company would be forced to delay, reduce or eliminate some or all of its research and development programs, preclinical and clinical testing or commercialization efforts, which could adversely affect its business prospects. The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The accompanying condensed consolidated financial statements include the accounts of Solid Biosciences Inc. and its wholly owned or controlled subsidiaries. All intercompany accounts and transactions have been eliminated. In the opinion of management, the Company’s accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of normal recurring accruals, necessary for a fair statement of the Company’s financial statements for interim periods in accordance with GAAP. The information included in this quarterly report on Form 10-Q should be read in conjunction with the Company’s consolidated financial statements and the accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. The year-end condensed consolidated balance sheet data presented for comparative purposes was derived from the Company’s audited financial statements but does not include all disclosures required by GAAP. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies The Company’s accounting policies are described in the “Notes to Consolidated Financial Statements” in its Annual Report on Form 10-K for the year ended December 31, 2020 and updated, as necessary, in this report. Use of Estimates The preparation of the Company’s condensed consolidated financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of expenses during the reporting periods. Significant estimates and assumptions reflected in these condensed consolidated financial statements include, but are not limited to, estimates related to revenue recognition, the recognition of research and development expenses and equity-based compensation. Estimates are periodically reviewed in light of changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known. Actual results could differ from the Company’s estimates. The full extent to which the COVID-19 pandemic will directly or indirectly impact the Company’s business, results of operations and financial condition, including clinical trials and employee-related amounts, will depend on future developments that are highly uncertain, including new information that may emerge concerning COVID-19 and the actions taken to contain it or treat its impact. The Company has made estimates of the impact of COVID-19 within its financial statements and there may be changes to those estimates in future periods. Actual results could differ from the Company’s estimates. Cash Equivalents The Company considers all short-term, highly liquid investments with original maturities of 90 days or less at acquisition date to be cash equivalents. Restricted Cash The Company held restricted cash of $327 in separate restricted bank accounts as security deposits for leases of the Company’s facilities as of March 31, 2021 and December 31, 2020. The Company has included restricted cash of $327 as a non-current asset as of March 31, 2021 and December 31, 2020. A reconciliation of the amounts of cash and cash equivalents and restricted cash from the cash flow statement to the balance sheet is as follows: March 31, 2021 December 31, 2020 Cash and cash equivalents as presented on balance sheet $ 268,497 $ 154,744 Restricted cash, non-current, as presented on balance sheet 327 327 Cash and cash equivalents and restricted cash as presented on cash flow statement $ 268,824 $ 155,071 Segment Data The Company manages its operations as a single segment for the purposes of assessing performance and making operating decisions. The Company’s singular focus is on developing treatments through gene therapy and other means for patients with Duchenne. All of the Company’s tangible assets are held in the United States. Related Parties In October 2020, we entered into a collaboration and license agreement (the “Collaboration Agreement”) with Ultragenyx Pharmaceutical Inc. (“Ultragenyx”). In connection with the Collaboration Agreement, Ultragenyx also purchased 7,825,797 shares of the Company’s common stock, which resulted in Ultragenyx becoming a related party of the Company. In November 2020, we entered into a consulting agreement with Danforth Advisors, LLC, or Danforth, an affiliate of Stephen DiPalma, our interim chief financial officer. Pursuant to the consulting agreement, Danforth provides us with the chief financial officer services of Mr. DiPalma, and other services, including financial planning, offering support and accounting services, in exchange for fees payable to Danforth based on hourly rates. We have paid Danforth approximately $0.2 million to date. In accordance with the consulting agreement, in November 2020, we issued to Danforth a warrant to purchase 30,000 shares of our common stock at an exercise price per share of $3.29. The consulting agreement may be terminated by either party without cause upon 60 days’ prior written notice to the other party and with cause upon 30 days’ prior written notice to the other party. Recently Adopted Accounting Pronouncements In August 2018 the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-13 , Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes |
Collaborations
Collaborations | 3 Months Ended |
Mar. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Collaborations | 3. Collaborations Ultragenyx Collaboration Agreement Collaboration Agreement On October 22, 2020 (the “Effective Date”), the Company entered into a collaboration and license agreement with Ultragenyx Pharmaceutical Inc. to focus on the development and commercialization of new gene therapies for Duchenne Muscular Dystrophy. The Company granted Ultragenyx an exclusive worldwide license for any pharmaceutical product that expresses the Company’s proprietary microdystrophin construct from AAV8 and variants thereof in clade E for the treatment of Duchenne Muscular Dystrophy and other diseases resulting from the lack of functional dystrophin (the “Licensed Products”). The Company retains exclusive rights to all other uses of its microdystrophin proteins, including under its existing SGT-001 program. The Company will conduct certain research and development activities with respect to the development of the Licensed Products. Ultragenyx will reimburse the Company for personnel and out-of-pocket costs that the Company incurs in conducting such development activities. In addition, Ultragenyx granted to the Company an exclusive Development Option or Income Share Option (each as defined and described below) exercisable in the Company’s sole discretion one time per Licensed Product. After the date of first achievement of clinical proof of concept, Ultragenyx will provide to the Company a data package with respect to the relevant Licensed Product. The Company will use the data package to determine whether to exercise the corresponding Development Option or Income Share Option with respect to such Licensed Product. With respect to each Licensed Product for which the Company has not exercised the Development Option or Income Share Option the Company will be entitled to milestone payments of up to $25,000 in the aggregate for each such Licensed Product that achieves specified development milestones and $65,000 in the aggregate for each such Licensed Product that achieves specified regulatory milestones. With respect to each Licensed Product for which the Company has not exercised the Income Share Option, the Company will also be entitled to milestone payments of up to $165,000 in the aggregate for each Licensed Product that archives specified annual worldwide net sales milestones. For Licensed Products for which the Company has not exercised the Development Option or Income Share Option, Ultragenyx will pay the Company tiered royalties on a Licensed Product-by-Licensed Product and country-by-country basis ranging from a low double digit percentage to a mid-teens percentage based on Ultragenyx’s annual worldwide net sales of such Licensed Products. For each Licensed Product for which Ultragenyx decides to initiate a registrational trial in humans, the Company will have the option to fund 30% of the development costs in the United States and European Union for such Licensed Product and forgo the development and regulatory milestones (the “Development Option”) and receive tiered royalties on a Licensed Product-by-Licensed Product and country-by-country basis ranging from a mid-teens percentage to a low twenties percentage based on Ultragenyx’s annual worldwide net sales of each such Licensed Product. For each Licensed Product for which the Company exercises the Development Option, the Company may also elect to share 30% of the net income and net losses on net sales of such Licensed Product in the United States and European Union (the “Income Share Option”). For Licensed Products for which the Company has exercised the Income Share Option, the Company will not be entitled to milestone payments and Ultragenyx will pay the Company tiered royalties on a Licensed Product-by-Licensed Product and country-by-country basis ranging from a mid-teens percentage to a low twenties percentage based on Ultragenyx’s annual net sales of each such Licensed Product outside of the United States and European Union. The Company may only exercise an Income Share Option if neither the Company nor any of its affiliates is then developing or commercializing a product that is competitive with the Licensed Product that is subject to such option. If the Company or any of its affiliates subsequently develops or commercializes a product that is competitive with a Licensed Product for which the Company has exercised an Income Share Option, then the Company and Ultragenyx will no longer share the net income and net losses on net sales of such Licensed Product and such Licensed Product will be treated as if the Company had exercised the Development Option with respect to such Licensed Product. Following the Company’s exercise of the Development Option or Income Share Option with respect to a Licensed Product, the Company also has the right to cease participation in the sharing of development costs and sharing in net income and net losses on net sales, as applicable, for such Licensed Product by written notice to Ultragenyx. Upon such notice, the Company will no longer share in the development costs and net income and net losses on net sales of such Licensed Product, as applicable, and will be eligible to receive payments on milestones achieved after the opt-out for such Licensed Product and royalties at the rates applicable to Licensed Products for which the Company has not exercised the Development Option or Income Share Option, as described above. The Collaboration Agreement continues on a country-by-country and Licensed Product-by-Licensed Product basis until the expiration of all payment obligations under the agreement. With respect to any Licensed Product for which the Company has exercised an Income Share Option, the Collaboration Agreement continues until there are no longer sales of such Licensed Product in the United States or Europe. Either party has the right to terminate the agreement if the other party has materially breached in the performance of its obligations under the agreement and such breach has not been cured within the applicable cure period. Ultragenyx may also terminate the Collaboration Agreement in its sole discretion upon 90 days ’ prior written notice to the Company. Stock Purchase Agreement In connection with the execution of the Collaboration Agreement, Ultragenyx and the Company also entered into a stock purchase agreement (the “Stock Purchase Agreement”) on October 22, 2020 (the “Closing Date”), pursuant to which the Company issued and sold 7,825,797 shares of its common stock (the “Shares”) to Ultragenyx at a price of $5.1113 per share for an aggregate purchase price of approximately $40,000. The Stock Purchase Agreement contains customary representations, warranties and covenants of each of the parties thereto. Following the sale of the Shares, Ultragenyx beneficially owned approximately 14.45% of the Company’s outstanding common stock. As of March 31, 2021, Ultragenyx beneficially owned approximately 7.10% Investor Agreement In connection with the consummation of the transactions contemplated by the Stock Purchase Agreement, the Company and Ultragenyx entered into an Investor Agreement (the “Investor Agreement”) on the Effective Date. Pursuant to the terms of the Investor Agreement, Ultragenyx agreed that the Shares will be subject to a lock-up restriction, such that Ultragenyx will not, and will also cause its affiliates not to, without the prior approval of the Company and with certain exceptions, sell, transfer or otherwise dispose of the Shares until the earliest to occur of (i) 18 months after the Effective Date, (ii) the termination of the Collaboration Agreement or (iii) other specified events. Pursuant to the terms of the Investor Agreement, Ultragenyx agreed that, so long as it holds at least 10% of the Company’s outstanding common stock, the Shares will be subject to a voting agreement, such that until the earliest to occur of certain specified events, and subject to specified conditions, Ultragenyx will, and will cause its permitted transferees to, vote in accordance with the recommendation of the Company’s Board of Directors with respect to specified matters. Accounting Treatment The Company concluded that the Collaboration Agreement and the Stock Purchase Agreement should be combined and treated as a single arrangement for accounting purposes as the agreements were entered into contemporaneously and in contemplation of one another. The Company assessed this arrangement in accordance with ASC 606 and concluded that the contract counterparty, Ultragenyx, is a customer. The Company identified the following promises in the Collaboration Agreement that were evaluated under the scope of ASC 606: (1) an exclusive worldwide license to the Licensed Products; (2) an obligation to perform research and development services; and (iii) an obligation to participate in a joint steering committee. The Company assessed the promised goods and services to determine if they are distinct. Based on this assessment, the Company determined that Ultragenyx cannot benefit from the promised goods and services separately from the others as they are highly interrelated and therefore not distinct. Due to the early stage of the Licensed Products, the research and development services could not be performed by another party. The Company’s skill-set, knowledge and expertise are required to conduct the research and development services and the research and development services are expected to involve significant further development of the Licensed Products. Accordingly, the promised goods and services represent one combined performance obligation and the entire transaction price will be allocated to that single combined performance obligation. The Company determined the transaction price under ASC 606 at the inception of the Collaboration Agreement to be $22,513, which represents the excess proceeds from the equity investment under the Stock Purchase Agreement, when measured at fair value after taking into consideration a discount for lack of marketability, plus the estimated reimbursement of research and development costs, which represents variable consideration. The Company included the estimated reimbursement of research and development costs in the transaction price at the inception of the arrangement because the Company is required to perform research and development services and the contract requires Ultragenyx to reimburse the Company for costs incurred. Also, since the related revenue would be recognized only as the costs are incurred, the Company determined it is not probable that a significant reversal of cumulative revenue would occur. The Company evaluated how much variable consideration related to development and regulatory milestones, and the Company’s potential exercise of its Development Option or Income Share Option per Licensed Product, to include in the transaction price using the most likely amount approach and concluded that no amount should be included in the transaction price due to the high degree of uncertainty and risk associated with these potential payments. The Company also determined that royalties and sales milestones relate solely to the license of intellectual property and are therefore excluded from the transaction price under the sales- or usage-based royalty exception of ASC 606. Revenue related to these royalties and sales milestones will only be recognized when the associated sales occur, and relevant thresholds are met. The Company determined that revenue under the Collaboration Agreement should be recognized over time as Ultragenyx simultaneously receives the benefit from the Company as the Company performs under the single performance obligation over time. The Company will recognize revenue for the single performance obligation using a cost-to-cost input method as the Company has concluded it best depicts the research and development and joint steering committee participation services performed. Under this method, the transaction price is recognized over the contract’s entire performance period, using costs incurred relative to total estimated costs to determine the extent of progress towards completion. During the three months ended March 31, 2021, the Company recognized $3,335 of related party collaboration revenue, associated with its collaboration with Ultragenyx related to research and development services performed during the period and the corresponding cost reimbursement receivable. The following table presents changes in the balances of the Company’s related party collaboration receivables and contract liabilities during the three months ended March 31, 2021: Balance as of December 31, 2020 Additions Deductions Balance as of March 31, 2021 Related party collaboration receivable $ — $ 280 $ — $ 280 Contract liabilities: Deferred revenue 20,718 — (3,055 ) 17,663 The change in receivables balance for the three months ended March 31, 2021 is driven by amounts owed to the Company for research and development services provided. The Company did not collect any amounts from Ultragenyx during the period. As of March 31, 2021, there was $17,663 of deferred revenue related to the Ultragenyx Collaboration Agreement, which is classified as either current or non-current in the accompanying condensed consolidated balance sheet based on the period the services are expected to be delivered. Additionally, as of March 31, 2021, there was $280 of related party collaboration receivables related to reimbursable costs expected to be received from Ultragenyx for research and development services performed. Costs incurred relating to the Ultragenyx Collaboration Programs consist of internal and external research and development costs, which primarily include salaries and benefits, lab supplies, preclinical research studies, clinical studies, consulting services, and commercial development. These costs are included in research and development expenses in the Company’s condensed consolidated statement of operations during the three months ended March 31, 2021. |
Fair Value of Financial Assets
Fair Value of Financial Assets and Liabilities | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets and Liabilities | 4. Fair Value of Financial Assets and Liabilities The following tables present information about the Company’s assets and liabilities that are measured at fair value on a recurring basis and indicate the level of the fair value hierarchy utilized to determine such fair values: Fair Value Measurements as of March 31, 2021 Using: Level 1 Level 2 Level 3 Total Assets: Cash equivalents $ — $ 84,462 $ — $ 84,462 $ — $ 84,462 $ — $ 84,462 Fair Value Measurements as of December 31, 2020 Using: Level 1 Level 2 Level 3 Total Assets: Cash equivalents $ — $ 84,462 $ — $ 84,462 $ — $ 84,462 $ — $ 84,462 As of The fair value of the Company’s cash, restricted cash, accounts payable, and accrued expenses and other current liabilities approximate their carrying value due to their short-term maturities. |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | 5. Property and Equipment Property and equipment consists of the following: March 31, 2021 December 31, 2020 Furniture and fixtures $ 213 $ 203 Laboratory equipment 9,654 9,631 Leasehold improvements 4,713 4,713 Computer equipment 436 436 Computer software 553 553 Construction in process 1,329 1,330 16,898 16,866 Less accumulated depreciation 9,437 8,713 $ 7,461 $ 8,153 Depreciation expense was $734 and $1,026 for the three months ended March 31, 2021 and 2020, respectively. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 3 Months Ended |
Mar. 31, 2021 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Current Assets | 6. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist of the following: March 31, 2021 December 31, 2020 Prepaid research and development expenses $ 2,051 $ 2,674 Prepaid expenses and other assets 3,467 1,483 $ 5,518 $ 4,157 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 3 Months Ended |
Mar. 31, 2021 | |
Payables And Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | 7. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consist of the following: March 31, 2021 December 31, 2020 Accrued research and development $ 2,042 $ 2,091 Accrued compensation 1,138 3,834 Accrued other 3,614 2,715 $ 6,794 $ 8,640 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | 8. Stockholders’ Equity On July 30, 2019, the Company issued and sold in a private placement (i) 10,607,525 shares of its common stock at a price per share of $4.65 and (ii) 2,295,699 pre-funded warrants to purchase shares of its common stock at a price per warrant of $4.64. Each pre-funded warrant is exercisable for one share of common stock at an exercise price of $0.01 and the pre-funded warrants have no expiration date. The Company received gross proceeds from the private placement of $59,977, before deducting offering costs of $2,079. No warrants were exercised during the three months ended March 31, 2021 and 2020. In October 2020, in connection with the execution of the Collaboration Agreement, Ultragenyx and the Company also entered into the Stock Purchase Agreement, pursuant to which the Company issued and sold 7,825,797 shares of its common stock to Ultragenyx at a price of $5.1113 per share for an aggregate purchase price of approximately $40,000. In October 2020, the Company sold 6,309,632 shares of common stock pursuant to a sales agreement, dated March 13, 2019, (the “ATM Sales Agreement”), by and between the Company and Jefferies LLC (“Jefferies”) On December 15, 2020, the Company issued and sold in a private placement 24,324,320 shares of its common stock at a price per share of $3.70. The Company received net proceeds from the private placement of $86,210 after deducting placement agent fees and offering expenses of $3,790. On March 23, 2021, the Company issued and sold in a public offering 25,000,000 shares of its common stock at a price to the public of $5.575 per share. The Company received net proceeds of $134,878 after deducting underwriting discounts and commissions and offering expenses. |
Equity-Based Compensation
Equity-Based Compensation | 3 Months Ended |
Mar. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Equity-Based Compensation | 9. Equity-Based Compensation In connection with the closing of the Company’s initial public offering, the board of directors and stockholders approved the 2018 Omnibus Incentive Plan, which provides for the reservation of 5,001,000 shares of common stock for equity awards. On June 16, 2020, the Company’s stockholders approved the 2020 Equity Incentive Plan (“2020 Plan”) which consists of (i) 3,000,000 shares of common stock and (ii) additional shares of common stock (up to 4,879,025) as is equal to (i) the number of shares reserved under the Company’s 2018 Omnibus Incentive Plan (“2018 Plan”) that remain available for grant under the 2018 Plan as of immediately prior to the date the 2020 Plan was approved by the Company’s stockholders and (ii) the number of shares subject to awards granted under the 2018 Plan which awards expire, terminate or are otherwise surrendered, cancelled, forfeited or repurchased by the Company at their original issuance price pursuant to a contractual repurchase right. In April 2021, the board of directors approved an amendment to the 2020 Plan to reserve an additional 7,000,000 shares of common stock for issuance under the plan, subject to stockholder approval. During the three months ended March 31, 2021, the Company granted options for the purchase of 2,397,495 shares of common stock. During the three months ended March 31, 2021, the Company granted no restricted stock units. The Company recorded equity-based compensation expense related to all of its share-based awards to employees and non-employees in the following captions within its condensed consolidated statements of operations: Three Months Ended March 31, 2021 2020 Research and development $ 1,490 $ 1,239 General and administrative 1,417 1,014 Restructuring — 851 Total $ 2,907 $ 3,104 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes During the three months ended March 31, 2021 and 2020, the Company recorded no income tax benefits for the net operating losses incurred or for the research and development tax credits and orphan drug credits generated in each year due to its uncertainty of realizing a benefit from those items. The Company has provided a valuation allowance for the full amount of its net deferred tax assets because, at March 31, 2021 and December 31, 2020, it was more likely than not that any future benefit from deductible temporary differences and net operating loss and tax credit carryforwards would not be realized. As of March 31, 2021, and December 31, 2020, the Company had not recorded any amounts for unrecognized tax benefits. The Company files income tax returns as prescribed by the tax laws of the jurisdictions in which it operates. In the normal course of business, the Company is subject to examination by federal and state jurisdictions, where applicable. There are currently no pending income tax examinations. The Company’s C-Corporation tax years beginning with the year ended December 31, 2018 are open under statute. Any tax credit or net operating loss carryforward can be adjusted in future periods after the respective year of generation’s statute of limitation has closed. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11. Commitments and Contingencies Legal Proceedings The Company may periodically become subject to legal proceedings and claims arising in connection with ongoing business activities, including claims or disputes related to patents that have been issued or that are pending in the field of research on which the Company is focused. The Company is not aware of any material legal proceedings or claims as of March 31, 2021. |
Net Loss per Share
Net Loss per Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | 12. Net Loss per Share Basic and diluted net loss per share attributable to common stockholders were calculated as follows: The numerator for basic and diluted net loss per share attributable to common stockholders is as follows: Three Months Ended March 31, 2021 2020 Net loss attributable to common stockholders $ (16,900 ) $ (26,694 ) The denominator is as follows: Three Months Ended March 31, 2021 2020 Weighted average shares of common stock outstanding, basic and diluted 87,108,865 46,537,131 Weighted average shares of pre-funded warrants to purchase common stock 2,158,329 1,522,148 Total 89,267,194 48,059,279 Net loss per share attributable to common stockholders, basic and diluted is as follows: Three Months Ended March 31, 2021 2020 Net loss per share attributable to common stockholders $ (0.19 ) $ (0.56 ) The following potential common stock equivalents, presented based on amounts outstanding at each period end, were excluded from the calculation of diluted net loss per share attributable to common stockholders for the periods indicated because including them would have had an anti-dilutive effect for the three months ended March 31 2021 2020 Options to purchase shares of common stock 5,076,747 3,099,758 Unvested shares of common stock 22,804 219,284 Unvested restricted stock units 322,901 1,011,955 5,422,452 4,330,997 |
Restructuring
Restructuring | 3 Months Ended |
Mar. 31, 2021 | |
Restructuring And Related Activities [Abstract] | |
Restructuring | 13. Restructuring In January 2020, the Company’s board of directors approved a restructuring plan to reduce operating costs and better align the Company’s workforce with the needs of its business following the Company’s November 2019 announcement that the SGT-001 IGNITE DMD trial was placed on clinical hold by the U.S. Food and Drug Administration. Under the restructuring plan, the Company made changes to its management team and reduced headcount by approximately 30 percent. Affected employees were eligible to receive severance payments and outplacement services in connection with the restructuring plan. During the three months ended March 31, 2020, the Company recorded aggregate restructuring charges of $1,944 related to severance payments and other employee-related costs. The Company does not expect to incur any additional significant costs associated with this restructuring. During the three months ended March 31, 2021, the remaining restructuring charges were paid. The following table shows the total amount expected to be incurred and the liability related to the 2020 restructuring for the three months ended March 31, 2021: One-Time Employee Termination Benefits Accrued restructuring costs as of December 31, 2020 $ 62 Amounts paid during the period (62 ) Accrued restructuring costs as of March 31, 2021 $ - |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of the Company’s condensed consolidated financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of expenses during the reporting periods. Significant estimates and assumptions reflected in these condensed consolidated financial statements include, but are not limited to, estimates related to revenue recognition, the recognition of research and development expenses and equity-based compensation. Estimates are periodically reviewed in light of changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known. Actual results could differ from the Company’s estimates. The full extent to which the COVID-19 pandemic will directly or indirectly impact the Company’s business, results of operations and financial condition, including clinical trials and employee-related amounts, will depend on future developments that are highly uncertain, including new information that may emerge concerning COVID-19 and the actions taken to contain it or treat its impact. The Company has made estimates of the impact of COVID-19 within its financial statements and there may be changes to those estimates in future periods. Actual results could differ from the Company’s estimates. |
Cash Equivalents | Cash Equivalents The Company considers all short-term, highly liquid investments with original maturities of 90 days or less at acquisition date to be cash equivalents. |
Restricted Cash | Restricted Cash The Company held restricted cash of $327 in separate restricted bank accounts as security deposits for leases of the Company’s facilities as of March 31, 2021 and December 31, 2020. The Company has included restricted cash of $327 as a non-current asset as of March 31, 2021 and December 31, 2020. A reconciliation of the amounts of cash and cash equivalents and restricted cash from the cash flow statement to the balance sheet is as follows: March 31, 2021 December 31, 2020 Cash and cash equivalents as presented on balance sheet $ 268,497 $ 154,744 Restricted cash, non-current, as presented on balance sheet 327 327 Cash and cash equivalents and restricted cash as presented on cash flow statement $ 268,824 $ 155,071 |
Segment Data | Segment Data The Company manages its operations as a single segment for the purposes of assessing performance and making operating decisions. The Company’s singular focus is on developing treatments through gene therapy and other means for patients with Duchenne. All of the Company’s tangible assets are held in the United States. |
Related Parties | Related Parties In October 2020, we entered into a collaboration and license agreement (the “Collaboration Agreement”) with Ultragenyx Pharmaceutical Inc. (“Ultragenyx”). In connection with the Collaboration Agreement, Ultragenyx also purchased 7,825,797 shares of the Company’s common stock, which resulted in Ultragenyx becoming a related party of the Company. In November 2020, we entered into a consulting agreement with Danforth Advisors, LLC, or Danforth, an affiliate of Stephen DiPalma, our interim chief financial officer. Pursuant to the consulting agreement, Danforth provides us with the chief financial officer services of Mr. DiPalma, and other services, including financial planning, offering support and accounting services, in exchange for fees payable to Danforth based on hourly rates. We have paid Danforth approximately $0.2 million to date. In accordance with the consulting agreement, in November 2020, we issued to Danforth a warrant to purchase 30,000 shares of our common stock at an exercise price per share of $3.29. The consulting agreement may be terminated by either party without cause upon 60 days’ prior written notice to the other party and with cause upon 30 days’ prior written notice to the other party. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In August 2018 the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-13 , Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Reconciliation of Amounts From Cash Flow Statement to Balance Sheet | A reconciliation of the amounts of cash and cash equivalents and restricted cash from the cash flow statement to the balance sheet is as follows: March 31, 2021 December 31, 2020 Cash and cash equivalents as presented on balance sheet $ 268,497 $ 154,744 Restricted cash, non-current, as presented on balance sheet 327 327 Cash and cash equivalents and restricted cash as presented on cash flow statement $ 268,824 $ 155,071 |
Collaborations (Tables)
Collaborations (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Summary of Changes in Balances of Company's Related Party Collaboration Receivables and Contract Liabilities | The following table presents changes in the balances of the Company’s related party collaboration receivables and contract liabilities during the three months ended March 31, 2021: Balance as of December 31, 2020 Additions Deductions Balance as of March 31, 2021 Related party collaboration receivable $ — $ 280 $ — $ 280 Contract liabilities: Deferred revenue 20,718 — (3,055 ) 17,663 |
Fair Value of Financial Asset_2
Fair Value of Financial Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis and Indicate Level of Fair Value Hierarchy Utilized | The following tables present information about the Company’s assets and liabilities that are measured at fair value on a recurring basis and indicate the level of the fair value hierarchy utilized to determine such fair values: Fair Value Measurements as of March 31, 2021 Using: Level 1 Level 2 Level 3 Total Assets: Cash equivalents $ — $ 84,462 $ — $ 84,462 $ — $ 84,462 $ — $ 84,462 Fair Value Measurements as of December 31, 2020 Using: Level 1 Level 2 Level 3 Total Assets: Cash equivalents $ — $ 84,462 $ — $ 84,462 $ — $ 84,462 $ — $ 84,462 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Summary of Property and Equipment | Property and equipment consists of the following: March 31, 2021 December 31, 2020 Furniture and fixtures $ 213 $ 203 Laboratory equipment 9,654 9,631 Leasehold improvements 4,713 4,713 Computer equipment 436 436 Computer software 553 553 Construction in process 1,329 1,330 16,898 16,866 Less accumulated depreciation 9,437 8,713 $ 7,461 $ 8,153 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consist of the following: March 31, 2021 December 31, 2020 Prepaid research and development expenses $ 2,051 $ 2,674 Prepaid expenses and other assets 3,467 1,483 $ 5,518 $ 4,157 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Payables And Accruals [Abstract] | |
Summary of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following: March 31, 2021 December 31, 2020 Accrued research and development $ 2,042 $ 2,091 Accrued compensation 1,138 3,834 Accrued other 3,614 2,715 $ 6,794 $ 8,640 |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Equity-based Compensation Expense | The Company recorded equity-based compensation expense related to all of its share-based awards to employees and non-employees in the following captions within its condensed consolidated statements of operations: Three Months Ended March 31, 2021 2020 Research and development $ 1,490 $ 1,239 General and administrative 1,417 1,014 Restructuring — 851 Total $ 2,907 $ 3,104 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net Loss per Share Attributable to Common Stockholders | The numerator for basic and diluted net loss per share attributable to common stockholders is as follows: Three Months Ended March 31, 2021 2020 Net loss attributable to common stockholders $ (16,900 ) $ (26,694 ) The denominator is as follows: Three Months Ended March 31, 2021 2020 Weighted average shares of common stock outstanding, basic and diluted 87,108,865 46,537,131 Weighted average shares of pre-funded warrants to purchase common stock 2,158,329 1,522,148 Total 89,267,194 48,059,279 Net loss per share attributable to common stockholders, basic and diluted is as follows: Three Months Ended March 31, 2021 2020 Net loss per share attributable to common stockholders $ (0.19 ) $ (0.56 ) |
Schedule of Antidilutive Securities Excluded from Calculation of Diluted Net Loss per Share Attributable to Common Stockholders | The following potential common stock equivalents, presented based on amounts outstanding at each period end, were excluded from the calculation of diluted net loss per share attributable to common stockholders for the periods indicated because including them would have had an anti-dilutive effect for the three months ended March 31 2021 2020 Options to purchase shares of common stock 5,076,747 3,099,758 Unvested shares of common stock 22,804 219,284 Unvested restricted stock units 322,901 1,011,955 5,422,452 4,330,997 |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Restructuring And Related Activities [Abstract] | |
Schedule of Total Amount Expected to be Incurred and Liability Related to Restructuring | The following table shows the total amount expected to be incurred and the liability related to the 2020 restructuring for the three months ended March 31, 2021: One-Time Employee Termination Benefits Accrued restructuring costs as of December 31, 2020 $ 62 Amounts paid during the period (62 ) Accrued restructuring costs as of March 31, 2021 $ - |
Nature of the Business and Ba_2
Nature of the Business and Basis of Presentation - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Jan. 25, 2018 | |
Nature Of Business And Basis Of Presentation [Line Items] | ||||
Net loss | $ 16,900 | $ 26,694 | ||
Accumulated deficit | 421,469 | $ 404,569 | ||
Net cash used in operating activities | 21,366 | $ 29,274 | ||
Cash and cash equivalents | $ 268,497 | $ 154,744 | ||
Corporate Conversion [Member] | ||||
Nature Of Business And Basis Of Presentation [Line Items] | ||||
Common stock, conversion ratio | 84.85% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | |||
Nov. 30, 2020 | Mar. 31, 2021 | Dec. 31, 2020 | Oct. 31, 2020 | |
Significant Accounting Policies [Line Items] | ||||
Restricted cash deposit | $ 327 | $ 327 | ||
Restricted cash noncurrent | $ 327 | $ 327 | ||
Common stock, shares issued | 110,288,567 | 84,893,994 | ||
Payment of exchange fees | $ 200 | |||
Common stock shares issued warrant to purchase | 30,000 | |||
Common stock warrants exercise price per share | $ 3.29 | |||
Agreement termination period | 60 days | |||
Agreement written notice period | 30 days | |||
ASU 2018-13 [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2020 | |||
Change in accounting principle, accounting standards update, adopted | true | |||
Change in accounting principle, accounting standards update, immaterial effect | true | |||
ASU 2019-12 [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2021 | |||
Change in accounting principle, accounting standards update, adopted | true | |||
Change in accounting principle, accounting standards update, immaterial effect | true | |||
Collaborative Arrangement, Transaction with Party to Collaborative Arrangement [Member] | Ultragenyx [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Common stock, shares issued | 7,825,797 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Reconciliation of Amounts From Cash Flow Statement to Balance Sheet (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Reconciliation Of Beginning And End Of Period Amounts From Cash Flow Statement To Balance Sheet [Abstract] | ||||
Cash and cash equivalents as presented on balance sheet | $ 268,497 | $ 154,744 | ||
Restricted cash, non-current, as presented on balance sheet | 327 | 327 | ||
Cash and cash equivalents and restricted cash as presented on cash flow statement | $ 268,824 | $ 155,071 | $ 53,514 | $ 76,370 |
Collaborations - Additional Inf
Collaborations - Additional Information (Detail) - USD ($) | Oct. 22, 2020 | Mar. 31, 2021 | Dec. 31, 2020 |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||
Proceeds from issuance of common stock | $ 135,125,000 | ||
Related party revenue recognized | 3,335,000 | ||
Related party collaboration receivables | 280,000 | ||
Ultragenyx [Member] | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement [Member] | |||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||
Milestone payments upon achievement of regulatory milestone | $ 65,000,000 | ||
Percentage of option to fund of development cost | 30.00% | ||
Percentage of net income and net losses on net sales | 30.00% | ||
Agreement termination notice period | 90 days | ||
Issued and sold shares of common stock | 7,825,797 | ||
Common stock issued price per share | $ 5.1113 | ||
Proceeds from issuance of common stock | $ 40,000,000 | ||
Percentage of outstanding common stock | 14.45% | 7.10% | |
Proceeds from equity investment under stock purchase agreement | $ 22,513,000 | ||
Transaction price | 0 | ||
Related party revenue recognized | 3,335,000 | ||
Proceeds from collaborators | 0 | ||
Deferred revenue - related party | 17,663,000 | $ 20,718,000 | |
Related party collaboration receivables | 280,000 | ||
Maximum [Member] | Ultragenyx [Member] | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement [Member] | |||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||
Milestone payments upon achievement of development milestone | 25,000,000 | ||
Milestone Payments upon achievement of net sales milestones | $ 165,000,000 | ||
Minimum [Member] | Ultragenyx [Member] | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement [Member] | |||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||
Percentage of outstanding common stock | 10.00% |
Collaborations - Summary of Cha
Collaborations - Summary of Changes in Balances of Company's Related Party Collaboration Receivables and Contract Liabilities (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |
Related party collaboration receivable, Ending balance | $ 280 |
Ultragenyx [Member] | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement [Member] | |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |
Related party collaboration receivable, Additions | 280 |
Related party collaboration receivable, Ending balance | 280 |
Deferred revenue, Beginning balance | 20,718 |
Deferred revenue, Deductions | (3,055) |
Deferred revenue, Ending balance | $ 17,663 |
Fair Value of Financial Asset_3
Fair Value of Financial Assets and Liabilities - Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis and Indicate Level of Fair Value Hierarchy Utilized (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Assets: | ||
Cash equivalents | $ 84,462 | $ 84,462 |
Assets Fair Value Disclosure | 84,462 | 84,462 |
Level 2 [Member] | ||
Assets: | ||
Cash equivalents | 84,462 | 84,462 |
Assets Fair Value Disclosure | $ 84,462 | $ 84,462 |
Fair Value of Financial Asset_4
Fair Value of Financial Assets and Liabilities - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | ||
Available-for-sale securities | $ 0 | $ 0 |
Fair value, assets, level 1 to level 2 transfers, amount | 0 | 0 |
Fair value, assets, level 2 to level 1 transfers, amount | 0 | 0 |
Fair value, assets, transfers into level 3, amount | 0 | 0 |
Fair value, assets, transfers out of level 3, amount | $ 0 | $ 0 |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 16,898 | $ 16,866 |
Less accumulated depreciation | 9,437 | 8,713 |
Property and equipment, net | 7,461 | 8,153 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 213 | 203 |
Laboratory Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 9,654 | 9,631 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 4,713 | 4,713 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 436 | 436 |
Computer Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 553 | 553 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,329 | $ 1,330 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Property Plant And Equipment [Abstract] | ||
Depreciation expense | $ 734 | $ 1,026 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ||
Prepaid research and development expenses | $ 2,051 | $ 2,674 |
Prepaid expenses and other assets | 3,467 | 1,483 |
Prepaid expenses and other current assets | $ 5,518 | $ 4,157 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Summary of Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Accrued Expenses And Other Current Liabilities [Line Items] | ||
Accrued expenses and other current liabilities | $ 6,794 | $ 8,640 |
Accrued Research and Development [Member] | ||
Accrued Expenses And Other Current Liabilities [Line Items] | ||
Accrued expenses and other current liabilities | 2,042 | 2,091 |
Accrued Compensation [Member] | ||
Accrued Expenses And Other Current Liabilities [Line Items] | ||
Accrued expenses and other current liabilities | 1,138 | 3,834 |
Accrued Other [Member] | ||
Accrued Expenses And Other Current Liabilities [Line Items] | ||
Accrued expenses and other current liabilities | $ 3,614 | $ 2,715 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Mar. 23, 2021 | Dec. 15, 2020 | Oct. 22, 2020 | Jul. 30, 2019 | Oct. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Nov. 30, 2020 |
Class Of Stock [Line Items] | ||||||||
Common stock warrants exercise price per share | $ 3.29 | |||||||
Gross proceeds from private placement | $ 59,977 | |||||||
Proceeds from issuance of common stock | $ 135,125 | |||||||
Ultragenyx [Member] | Collaborative Arrangement, Transaction with Party to Collaborative Arrangement [Member] | ||||||||
Class Of Stock [Line Items] | ||||||||
Common stock issued price per share | $ 5.1113 | |||||||
Issued and sold shares of common stock | 7,825,797 | |||||||
Proceeds from issuance of common stock | $ 40,000 | |||||||
Private Placement [Member] | ||||||||
Class Of Stock [Line Items] | ||||||||
Offering costs | $ 3,790 | $ 2,079 | ||||||
ATM Sales Agreement [Member] | ||||||||
Class Of Stock [Line Items] | ||||||||
Stock issued and sold | 6,309,632 | |||||||
Proceeds from issuance of common stock | $ 23,209 | |||||||
Public Offering [Member] | ||||||||
Class Of Stock [Line Items] | ||||||||
Stock issued and sold | 25,000,000 | |||||||
Common stock issued price per share | $ 5.575 | |||||||
Proceeds from issuance of common stock | $ 134,878 | |||||||
Common Stock [Member] | ||||||||
Class Of Stock [Line Items] | ||||||||
Stock issued and sold | 25,000,000 | |||||||
Common Stock [Member] | Private Placement [Member] | ||||||||
Class Of Stock [Line Items] | ||||||||
Stock issued and sold | 24,324,320 | 10,607,525 | ||||||
Common stock issued price per share | $ 3.70 | $ 4.65 | ||||||
Net proceeds from private placement | $ 86,210 | |||||||
Pre-Funded Warrants [Member] | ||||||||
Class Of Stock [Line Items] | ||||||||
Warrants exercised | 0 | 0 | ||||||
Pre-Funded Warrants [Member] | Private Placement [Member] | ||||||||
Class Of Stock [Line Items] | ||||||||
Warrants to purchase common stock | 2,295,699 | |||||||
Warrants price per share | $ 4.64 | |||||||
Warrants exercisable for common stock | 1 | |||||||
Common stock warrants exercise price per share | $ 0.01 |
Equity-Based Compensation - Add
Equity-Based Compensation - Additional Information (Detail) - shares | Jun. 16, 2020 | Apr. 30, 2021 | Mar. 31, 2021 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock purchased | 2,397,495 | ||
Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock units granted | 0 | ||
2018 Omnibus Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized for common stock for equity awards | 5,001,000 | ||
2020 Equity Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized for common stock for equity awards | 3,000,000 | ||
2020 Equity Incentive Plan [Member] | Subsequent Event [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of additional shares authorized for common stock for equity awards | 7,000,000 | ||
2020 Equity Incentive Plan [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of additional shares authorized for common stock for equity awards | 4,879,025 |
Equity-Based Compensation - Sch
Equity-Based Compensation - Schedule of Equity-based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | $ 2,907 | $ 3,104 |
Research and Development [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 1,490 | 1,239 |
General and Administrative [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | $ 1,417 | 1,014 |
Restructuring [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | $ 851 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense (benefit) | $ 0 | $ 0 | |
Unrecognized tax benefits | $ 0 | $ 0 |
Net Loss per Share - Schedule o
Net Loss per Share - Schedule of Basic and Diluted Net Loss per Share Attributable to Common Stockholders (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share Basic [Line Items] | ||
Net loss attributable to common stockholders | $ (16,900) | $ (26,694) |
Weighted average shares of common stock outstanding, basic and diluted | 89,267,194 | 48,059,279 |
Net loss per share attributable to common stockholders | $ (0.19) | $ (0.56) |
Common Stock [Member] | ||
Earnings Per Share Basic [Line Items] | ||
Weighted average shares of common stock outstanding, basic and diluted | 87,108,865 | 46,537,131 |
Pre-Funded Warrants [Member] | ||
Earnings Per Share Basic [Line Items] | ||
Weighted average shares of common stock outstanding, basic and diluted | 2,158,329 | 1,522,148 |
Net Loss per Share - Schedule_2
Net Loss per Share - Schedule of Antidilutive Securities Excluded from Calculation of Diluted Net Loss per Share Attributable to Common Stockholders (Detail) - shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Common stock equivalents excluded from calculation of diluted net loss per share | 5,422,452 | 4,330,997 |
Options to Purchase Shares of Common Stock [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Common stock equivalents excluded from calculation of diluted net loss per share | 5,076,747 | 3,099,758 |
Unvested Restricted Stock Units [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Common stock equivalents excluded from calculation of diluted net loss per share | 322,901 | 1,011,955 |
Unvested Shares of Common Stock [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Common stock equivalents excluded from calculation of diluted net loss per share | 22,804 | 219,284 |
Restructuring- Additional Infor
Restructuring- Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Restructuring Costs [Abstract] | ||
Number of headcount reduced, percentage | 30.00% | |
Restructuring charges related to severance payment and other employee-related costs | $ 1,944 |
Restructuring - Schedule of Tot
Restructuring - Schedule of Total Amount Expected to be Incurred and Liability Related to Restructuring (Detail) - One-Time Employee Termination Benefits [Member] $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Restructuring Costs [Line Items] | |
Beginning balance, Accrued restructuring costs | $ 62 |
Amounts paid during the period | $ (62) |