Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 17, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Entity File Number | 001-38318 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 82-2493065 | |
Trading Symbol | ODT | |
Security Exchange Name | NASDAQ | |
Entity Registrant Name | Odonate Therapeutics, Inc. | |
Entity Central Index Key | 0001717452 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Emerging Growth Company | true | |
Entity Small Business | true | |
Entity Ex Transition Period | true | |
Entity Common Stock, Shares Outstanding | 32,095,394 | |
Entity Address, State or Province | CA | |
Entity Shell Company | false | |
Entity Address, Address Line One | 4747 Executive Drive | |
Entity Address, Address Line Two | Suite 510 | |
Entity Address, City or Town | San Diego | |
Entity Address, Postal Zip Code | 92121 | |
City Area Code | 858 | |
Local Phone Number | 731-8180 | |
Document Quarterly Report | true | |
Document Transition Report | false |
Condensed Balance Sheets (Unaud
Condensed Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash | $ 153,117 | $ 180,460 |
Prepaid expenses and other current assets | 4,050 | 3,468 |
Total current assets | 157,167 | 183,928 |
Property and equipment, net | 1,594 | 1,663 |
Right-of-use lease assets | 1,526 | 1,581 |
Restricted cash | 714 | 714 |
Other | 983 | 941 |
Total assets | 161,984 | 188,827 |
Current liabilities: | ||
Accounts payable | 14,894 | 15,583 |
Accrued expenses | 9,871 | 8,881 |
Lease liabilities, current portion | 279 | 315 |
Total current liabilities | 25,044 | 24,779 |
Lease liabilities, less current portion | 1,696 | 1,748 |
Total liabilities | 26,740 | 26,527 |
Commitments and contingencies (Note 5) | ||
Stockholders' equity: | ||
Common stock, $0.01 par value—100,000,000 shares authorized; 32,076,095 and 32,050,906 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively | 301 | 300 |
Additional paid-in capital | 405,183 | 402,077 |
Accumulated deficit | (270,240) | (240,077) |
Total stockholders' equity | 135,244 | 162,300 |
Total liabilities and stockholders' equity | $ 161,984 | $ 188,827 |
Condensed Balance Sheets (Una_2
Condensed Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Common stock, par or stated value per share | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 32,076,095 | 32,076,095 |
Common stock, shares outstanding | 32,050,906 | 32,050,906 |
Condensed Statements of Operati
Condensed Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating expenses: | ||
Research and development | $ 27,947 | $ 26,631 |
General and administrative | 2,874 | 2,591 |
Total operating expenses | 30,821 | 29,222 |
Loss from operations | (30,821) | (29,222) |
Interest income | 658 | 577 |
Net loss | $ (30,163) | $ (28,645) |
Net loss per share: | ||
Basic and diluted | $ (0.99) | $ (1.16) |
Weighted-average shares outstanding: | ||
Basic and diluted | 30,610,696 | 24,682,410 |
Condensed Statements of Stockho
Condensed Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit |
Beginning balance at Dec. 31, 2018 | $ 124,004 | $ 244 | $ 252,012 | $ (128,252) |
Beginning balance, shares at Dec. 31, 2018 | 26,747,438 | |||
Issuance of common stock under employee stock plans | 159 | 159 | ||
Issuance of common stock under employee stock plans, shares | 10,606 | |||
Forfeiture of common stock underlying incentive units, shares | (5,618) | |||
Equity-based compensation expense | 2,925 | 2,925 | ||
Net loss | (28,645) | (28,645) | ||
Ending balance at Mar. 31, 2019 | 98,443 | $ 244 | 255,096 | (156,897) |
Ending balance, shares at Mar. 31, 2019 | 26,752,426 | |||
Beginning balance at Dec. 31, 2019 | 162,300 | $ 300 | 402,077 | (240,077) |
Beginning balance, shares at Dec. 31, 2019 | 32,050,906 | |||
Issuance of common stock under employee stock plans | 521 | $ 1 | 520 | |
Issuance of common stock under employee stock plans, shares | 27,532 | |||
Forfeiture of common stock underlying incentive units, shares | (2,343) | |||
Equity-based compensation expense | 2,586 | 2,586 | ||
Net loss | (30,163) | (30,163) | ||
Ending balance at Mar. 31, 2020 | $ 135,244 | $ 301 | $ 405,183 | $ (270,240) |
Ending balance, shares at Mar. 31, 2020 | 32,076,095 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities: | ||
Net loss | $ (30,163) | $ (28,645) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Equity-based compensation expense | 2,586 | 2,925 |
Depreciation and amortization | 62 | 90 |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other assets | (624) | (2,744) |
Accounts payable | (696) | (3,023) |
Accrued expenses | 990 | 4,289 |
Net cash used in operating activities | (27,845) | (27,108) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (19) | (41) |
Net cash used in investing activities | (19) | (41) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock under employee stock plans | 521 | 159 |
Net cash provided by financing activities | 521 | 159 |
Net decrease in cash and restricted cash | (27,343) | (26,990) |
Cash and restricted cash, beginning of period | 181,174 | 139,301 |
Cash and restricted cash, end of period | 153,831 | 112,311 |
Supplemental disclosure of cash flow information: | ||
Property and equipment purchases included in accounts payable and accrued expenses | $ 7 | 47 |
Initial recognition of right-of-use lease assets | $ 2,215 |
Business
Business | 3 Months Ended |
Mar. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Business | 1. Business Odonate Therapeutics, Inc. (“Odonate” or the “Company”) is a pharmaceutical company dedicated to the development of best-in-class therapeutics that improve and extend the lives of patients with cancer. The Company’s initial focus is on the development of tesetaxel, an investigational, orally administered chemotherapy agent that belongs to a class of drugs known as taxanes, which are widely used in the treatment of cancer. Tesetaxel has several pharmacologic properties that make it unique among taxanes, including: oral administration with a low pill burden; a long (~8-day) terminal plasma half-life in humans, enabling the maintenance of adequate drug levels with relatively infrequent dosing; no history of hypersensitivity (allergic) reactions; and significant activity against chemotherapy-resistant tumors. In patients with metastatic breast cancer (“MBC”), tesetaxel was shown to have significant, single-agent antitumor activity in two multicenter, Phase 2 studies. The Company is currently conducting three studies in breast cancer, including a multinational, multicenter, randomized, Phase 3 study in patients with MBC, known as CONTESSA. The Company’s goal for tesetaxel is to develop an effective chemotherapy choice for patients that provides quality-of-life advantages over current alternatives. As of March 31, 2020, the Company had $153.1 million in cash. The Company has incurred operating losses and negative cash flows from operations since inception. Management believes that the Company’s existing cash will be sufficient to meet the Company’s anticipated cash requirements through at least one year from the date this Quarterly Report on Form 10-Q is filed with the U.S. Securities and Exchange Commission (the “SEC”). |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | 2. Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation and Use of Estimates The Company’s condensed financial statements contained in this Quarterly Report on Form 10-Q have been prepared in accordance with generally accepted accounting principles in the U.S. (“GAAP”) The preparation of the Company’s condensed financial statements requires management to make estimates and assumptions that impact the reported amounts of assets, liabilities and expenses and the disclosure of contingent assets and liabilities in the Company’s condensed financial statements and accompanying notes. The most significant estimates and assumptions in the Company’s condensed financial statements relate to accrued expenses and equity-based compensation expense. These estimates and assumptions are based on current facts, historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the recording of expenses that are not readily apparent from other sources. Actual results may differ materially and adversely from these estimates. To the extent there are material differences between the estimates and actual results, the Company’s future results of operations will be affected. Summary of Significant Accounting Policies During the three months ended March 31, 2020, there were no changes to the Company’s significant accounting policies as described in Note 2 to the audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. Recent Accounting Pronouncements The Company has considered all recently issued accounting pronouncements and has concluded that there are no recently issued accounting pronouncements that may have a material impact on its results of operations, financial condition or cash flows based on current information. |
Net Loss per Share
Net Loss per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | 3. Net Loss per Share Basic net loss per share is calculated by dividing net loss by the weighted-average common shares outstanding during the period, without consideration of common stock equivalents. The basic net loss per share calculation excludes 1,451,202 and 1,974,793 outstanding shares of common stock held by Odonate Holdings, LLC (“Odonate Holdings”) as of March 31, 2020 and 2019, respectively, to be used to settle incentive units previously issued under the Odonate Management Holdings Equity Incentive Plan (the “Management Plan”). These shares of common stock are subject to transfer to the Company and cancellation until such incentive units are vested and exercised and, as such, are considered common stock equivalents. Therefore, the shares of common stock held by Odonate Holdings are excluded from the basic net loss per share calculation until the incentive units are exercised. Diluted net loss per share is calculated by adjusting the weighted-average common shares outstanding for the dilutive effect of common stock equivalents outstanding for the period. Common stock equivalents, which consist of shares of common stock underlying incentive units and vested stock options, were excluded from the calculation of diluted net loss per share because they were anti-dilutive. |
Balance Sheet Details
Balance Sheet Details | 3 Months Ended |
Mar. 31, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Details | 4. Balance Sheet Details Property and equipment consisted of the following (in thousands): March 31, December 31, 2020 2019 Leasehold improvements $ 1,113 $ 1,113 Office equipment 724 698 Furniture and fixtures 420 420 Software 130 130 Total gross property and equipment 2,387 2,361 Less accumulated depreciation (793 ) (698 ) Property and equipment, net $ 1,594 $ 1,663 Depreciation expense was $0.1 million for both the three months ended March 31, 2020 and 2019. Accrued expenses consisted of the following (in thousands): March 31, December 31, 2020 2019 Accrued clinical development costs $ 6,377 $ 6,667 Accrued compensation and related expenses 3,424 2,122 Other accrued expenses 70 92 Total accrued expenses $ 9,871 $ 8,881 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 5. Commitments and Contingencies Lease Commitments In March 2018, the Company entered into an agreement to lease office space in San Diego, California (the “San Diego Lease”) with aggregate payments of approximately $0.8 million over the term of the lease. The San Diego Lease originally provided for expiration on December 31, 2019. In August 2019, the Company entered into a First Amendment to the San Diego Lease to extend the term of the lease through the earlier of May 30, 2020 or 30 days from the date the Company provides written notice to the landlord. The San Diego Lease is classified as an operating lease. In October 2019, the Company entered into an agreement to lease office space in San Diego, California (the “New San Diego Lease”) with aggregate payments of approximately $4.3 million over the 7.5-year term of the lease. The San Diego Lease terminates on commencement of the New San Diego Lease. The Company has an option to extend the New San Diego Lease for an additional 5 years at the end of the initial term. Further, the Company provided a standby letter of credit of $0.5 million as a security deposit during the term of the lease, subject to certain reductions beginning 4 years after the lease commencement. As of March 31, 2020, $0.5 million was pledged as collateral for the letter of credit and recorded as restricted cash. In February 2018, the Company entered into an agreement to lease office space in New York, New York (the “New York Lease”) with aggregate payments of approximately $2.8 million over the 7-year term of the lease. The Company has an option to extend the New York Lease for an additional three years at the end of the initial term. Further, the Company provided a standby letter of credit of $0.3 million in lieu of a security deposit during the term of the lease, subject to a reduction 3.5 years after the lease commencement. As of March 31, 2020, $0.3 million was pledged as collateral for the letter of credit and recorded as restricted cash. The New York lease is classified as an operating lease. Future minimum lease payments under the New York Lease as of March 31, 2020 are as follows (in thousands): 2020 $ 360 2021 386 2022 401 2023 428 2024 439 Thereafter 362 Total future minimum lease payments 2,376 Less discount (401 ) Total lease liabilities $ 1,975 The Company recorded lease liabilities and right-of-use lease assets for the New York Lease based on the present value of lease payments over the expected lease term, discounted using the Company’s incremental borrowing rate. The option to extend the New York Lease was not recognized as part of the Company’s lease liability and right-of-use lease asset. Rent expense under leases was $0.2 million for both the three months ended March 31, 2020 and 2019. Other Commitments The Company enters into contracts in the normal course of business with third-party contract research organizations, contract development and manufacturing organizations and other service providers and vendors. These contracts generally provide for termination on notice and, therefore, are cancellable contracts and not considered contractual obligations and commitments. Contingencies From time to time, the Company may become subject to claims and litigation arising in the ordinary course of business. The Company is not a party to any material legal proceedings, nor is it aware of any material pending or threatened litigation. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | 6. Stockholders’ Equity On June 28, 2019, the Company closed an underwritten public offering (the “June 2019 Offering”) of 4,750,000 shares of common stock at a public offering price of $26.00 per share. On July 2, 2019, the underwriters exercised in full their option to purchase 712,500 additional shares of common stock. The aggregate gross proceeds from the June 2019 Offering were $142.0 million, and the net proceeds were $135.1 million after deducting underwriting discounts and commissions and offering costs. |
Equity Incentive Plans
Equity Incentive Plans | 3 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Equity Incentive Plans | 7. Equity Incentive Plans 2017 Stock Option Plan A total of 6,300,000 shares of common stock have been reserved for issuance under the Odonate Therapeutics, Inc. 2017 Stock Option Plan (the “2017 Plan”). As of March 31, 2020, 1,588,495 shares of common stock remained available for future grants under the 2017 Plan. 2017 Employee Stock Purchase Plan A total of 500,000 shares of common stock have been reserved for issuance under the Odonate Therapeutics, Inc. 2017 Employee Stock Purchase Plan (the “ESPP”). As of March 31, 2020, 445,966 shares of common stock remained available for future grants under the ESPP. Management Plan The Company issued an aggregate of 2,931,402 incentive units under the Management Plan. Following the Company’s initial public offering in December 2017, the Company has not granted, and will no longer grant, any incentive units. Equity Awards The activity related to equity awards, which are comprised of stock options and incentive units, during the three months ended March 31, 2020 is summarized as follows: Equity Awards Weighted- average Exercise Price per Share Weighted- average Remaining Contractual Term (1) (years) Aggregate Intrinsic Value (2) (millions) Outstanding at December 31, 2019 5,972,765 $ 18.46 Granted 196,318 $ 30.89 Exercised (24,387 ) $ 17.11 Cancelled/forfeited (127,805 ) $ 25.09 Outstanding at March 31, 2020 6,016,891 $ 18.73 8.8 $ 59.6 Exercisable at March 31, 2020 2,107,957 $ 10.73 8.2 $ 35.6 (1) (2) The total intrinsic value of equity awards exercised during the three months ended March 31, 2020 and 2019 was $0.3 million and $2.0 million, respectively. The total fair value of equity awards vested during the three months ended March 31, 2020 and 2019 was $2.7 million and $4.0 million, respectively. Equity-based Compensation Expense For the three months ended March 31, 2020 and 2019, the weighted-average grant-date fair value per share was $25.22 and $11.24, respectively. The Company estimated the fair value of each stock option on the grant date using the Black-Scholes option-pricing model with the following assumptions: Three Months Ended March 31, 2020 2019 Expected volatility 81% 75% Expected life 10 years 6 years Risk-free interest rate 1.9% 2.5% Expected dividend yield 0% 0% Under the ESPP, eligible employees may purchase shares of the Company’s common stock twice per month at a price equal to 85% of the closing price of shares of the Company’s common stock on the date of each purchase. , which is equal to a 15% discount on the shares of the Company’s common stock purchased, is recognized as equity-based compensation expense on the date of each purchase. The classification of equity-based compensation expense is summarized as follows (in thousands): Three Months Ended March 31, 2020 2019 Equity-based compensation expense: Research and development $ 2,302 $ 2,500 General and administrative 284 425 Total equity-based compensation expense $ 2,586 $ 2,925 As of March 31, 2020, total unrecognized compensation cost related to unvested equity awards was $61.2 million, which is estimated to be recognized over a weighted-average period of 3.0 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes For the three months ended March 31, 2020 and 2019, the Company did not recognize a provision for income taxes due to having recorded a full valuation allowance against its deferred tax assets. As of March 31, 2020 and December 31, 2019, the Company established a full valuation allowance against its deferred tax assets due to the uncertainty surrounding the realization of such assets. |
License Agreement
License Agreement | 3 Months Ended |
Mar. 31, 2020 | |
License Agreement [Abstract] | |
License Agreement | 9. License Agreement In 2013, the Company licensed rights to tesetaxel in all major markets from Daiichi Sankyo Company, Limited (“Daiichi Sankyo”), the original inventor of the product. Under the Daiichi Sankyo license agreement, the Company is obligated to use commercially reasonable efforts to develop and commercialize tesetaxel in the following countries: France, Germany, Italy, Spain, the United Kingdom and the U.S. The Company is required to make aggregate future milestone payments of up to $31.0 million, contingent on attainment of certain regulatory milestones. Additionally, the Company is obligated to pay Daiichi Sankyo a tiered royalty that ranges from the low to high single digits, depending on annual net sales of tesetaxel. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Use of Estimates | Basis of Presentation and Use of Estimates The Company’s condensed financial statements contained in this Quarterly Report on Form 10-Q have been prepared in accordance with generally accepted accounting principles in the U.S. (“GAAP”) The preparation of the Company’s condensed financial statements requires management to make estimates and assumptions that impact the reported amounts of assets, liabilities and expenses and the disclosure of contingent assets and liabilities in the Company’s condensed financial statements and accompanying notes. The most significant estimates and assumptions in the Company’s condensed financial statements relate to accrued expenses and equity-based compensation expense. These estimates and assumptions are based on current facts, historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the recording of expenses that are not readily apparent from other sources. Actual results may differ materially and adversely from these estimates. To the extent there are material differences between the estimates and actual results, the Company’s future results of operations will be affected. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Company has considered all recently issued accounting pronouncements and has concluded that there are no recently issued accounting pronouncements that may have a material impact on its results of operations, financial condition or cash flows based on current information. |
Net Loss per Share | Basic net loss per share is calculated by dividing net loss by the weighted-average common shares outstanding during the period, without consideration of common stock equivalents. The basic net loss per share calculation excludes 1,451,202 and 1,974,793 outstanding shares of common stock held by Odonate Holdings, LLC (“Odonate Holdings”) as of March 31, 2020 and 2019, respectively, to be used to settle incentive units previously issued under the Odonate Management Holdings Equity Incentive Plan (the “Management Plan”). These shares of common stock are subject to transfer to the Company and cancellation until such incentive units are vested and exercised and, as such, are considered common stock equivalents. Therefore, the shares of common stock held by Odonate Holdings are excluded from the basic net loss per share calculation until the incentive units are exercised. Diluted net loss per share is calculated by adjusting the weighted-average common shares outstanding for the dilutive effect of common stock equivalents outstanding for the period. Common stock equivalents, which consist of shares of common stock underlying incentive units and vested stock options, were excluded from the calculation of diluted net loss per share because they were anti-dilutive. |
Balance Sheet Details (Tables)
Balance Sheet Details (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Summary of Property and Equipment | Property and equipment consisted of the following (in thousands): March 31, December 31, 2020 2019 Leasehold improvements $ 1,113 $ 1,113 Office equipment 724 698 Furniture and fixtures 420 420 Software 130 130 Total gross property and equipment 2,387 2,361 Less accumulated depreciation (793 ) (698 ) Property and equipment, net $ 1,594 $ 1,663 |
Summary of Accrued Expenses | Accrued expenses consisted of the following (in thousands): March 31, December 31, 2020 2019 Accrued clinical development costs $ 6,377 $ 6,667 Accrued compensation and related expenses 3,424 2,122 Other accrued expenses 70 92 Total accrued expenses $ 9,871 $ 8,881 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Future Minimum Lease Payments | Future minimum lease payments under the New York Lease as of March 31, 2020 are as follows (in thousands): 2020 $ 360 2021 386 2022 401 2023 428 2024 439 Thereafter 362 Total future minimum lease payments 2,376 Less discount (401 ) Total lease liabilities $ 1,975 |
Equity Incentive Plans (Tables)
Equity Incentive Plans (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Activity Related to Equity Awards Comprised of Stock Options and Incentive Units | The activity related to equity awards, which are comprised of stock options and incentive units, during the three months ended March 31, 2020 is summarized as follows: Equity Awards Weighted- average Exercise Price per Share Weighted- average Remaining Contractual Term (1) (years) Aggregate Intrinsic Value (2) (millions) Outstanding at December 31, 2019 5,972,765 $ 18.46 Granted 196,318 $ 30.89 Exercised (24,387 ) $ 17.11 Cancelled/forfeited (127,805 ) $ 25.09 Outstanding at March 31, 2020 6,016,891 $ 18.73 8.8 $ 59.6 Exercisable at March 31, 2020 2,107,957 $ 10.73 8.2 $ 35.6 (1) (2) |
Schedule of Estimated Fair Value of Equity Award on Grant Date Using Black-Scholes Option-pricing Model | The Company estimated the fair value of each stock option on the grant date using the Black-Scholes option-pricing model with the following assumptions: Three Months Ended March 31, 2020 2019 Expected volatility 81% 75% Expected life 10 years 6 years Risk-free interest rate 1.9% 2.5% Expected dividend yield 0% 0% |
Summary of Equity-based Compensation Expense | The classification of equity-based compensation expense is summarized as follows (in thousands): Three Months Ended March 31, 2020 2019 Equity-based compensation expense: Research and development $ 2,302 $ 2,500 General and administrative 284 425 Total equity-based compensation expense $ 2,586 $ 2,925 |
Business - Additional Informati
Business - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||
Cash | $ 153,117 | $ 180,460 |
Cash requirements minimum period | 1 year |
Net Loss per Share - Additional
Net Loss per Share - Additional Information (Details) - shares | Mar. 31, 2020 | Mar. 31, 2019 |
Management Plan | ||
Earnings Per Share Basic [Line Items] | ||
Outstanding shares of common stock underlying incentive units | 1,451,202 | 1,974,793 |
Balance Sheet Details - Summary
Balance Sheet Details - Summary of Property And Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Property Plant And Equipment [Line Items] | ||
Total gross property and equipment | $ 2,387 | $ 2,361 |
Less accumulated depreciation | (793) | (698) |
Property and equipment, net | 1,594 | 1,663 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Total gross property and equipment | 1,113 | 1,113 |
Office Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total gross property and equipment | 724 | 698 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Total gross property and equipment | 420 | 420 |
Software | ||
Property Plant And Equipment [Line Items] | ||
Total gross property and equipment | $ 130 | $ 130 |
Balance Sheet Details - Additio
Balance Sheet Details - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Balance Sheet Related Disclosures [Abstract] | ||
Depreciation Expense | $ 0.1 | $ 0.1 |
Balance Sheet Details - Summa_2
Balance Sheet Details - Summary of Accrued Expenses (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Payables And Accruals [Abstract] | ||
Accrued clinical development costs | $ 6,377 | $ 6,667 |
Accrued compensation and related expenses | 3,424 | 2,122 |
Other accrued expenses | 70 | 92 |
Total accrued expenses | $ 9,871 | $ 8,881 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | ||||
Oct. 01, 2019 | Aug. 31, 2019 | Mar. 31, 2018 | Feb. 28, 2018 | Mar. 31, 2020 | Mar. 31, 2019 | |
Operating Lease [Line Items] | ||||||
Aggregate payments under lease | $ 2,376 | |||||
Aggregate payments under lease | 2,376 | |||||
Aggregate payment of rental expense | 200 | $ 200 | ||||
San Diego | ||||||
Operating Lease [Line Items] | ||||||
Aggregate payments under lease | $ 4,300 | $ 800 | ||||
Initial lease expiration date | Dec. 31, 2019 | |||||
Amended lease agreement, description | First Amendment to the San Diego Lease to extend the term of the lease through the earlier of May 30, 2020 or 30 days from the date the Company provides written notice to the landlord. | |||||
Amended lease extended date | May 30, 2020 | |||||
Aggregate payments under lease | $ 4,300 | $ 800 | ||||
Lease initial term | 7 years 6 months | |||||
Existence of option to extend | true | |||||
Additional lease extended term | 5 years | |||||
Restricted cash | 500 | |||||
New York | ||||||
Operating Lease [Line Items] | ||||||
Aggregate payments under lease | $ 2,800 | |||||
Aggregate payments under lease | $ 2,800 | |||||
Lease initial term | 7 years | |||||
Existence of option to extend | true | |||||
Additional lease extended term | 3 years | |||||
Restricted cash | $ 300 | |||||
Letter of Credit | San Diego | ||||||
Operating Lease [Line Items] | ||||||
Security deposit | $ 500 | |||||
Period of reduction in security deposit | 4 years | |||||
Letter of Credit | New York | ||||||
Operating Lease [Line Items] | ||||||
Security deposit | $ 300 | |||||
Period of reduction in security deposit | 3 years 6 months |
Commitments and Contingencies_2
Commitments and Contingencies - Future Minimum Lease Payments (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2020 | $ 360 |
2021 | 386 |
2022 | 401 |
2023 | 428 |
2024 | 439 |
Thereafter | 362 |
Total future minimum lease payments | 2,376 |
Less discount | (401) |
Total lease liabilities | $ 1,975 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | Jul. 02, 2019 | Jun. 28, 2019 |
Equity [Abstract] | ||
Net proceeds from sale of common stock | $ 135.1 | |
Gross proceeds from sale of common stock | $ 142 | |
Sale of common stock, number of shares issued | 712,500 | 4,750,000 |
Sale of common stock, price per share | $ 26 |
Equity Incentive Plans - Additi
Equity Incentive Plans - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Aug. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total intrinsic value of equity awards exercised | $ 300,000 | $ 2,000,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ 2,700,000 | $ 4,000,000 | |
Weighted average grant-date fair value per equity award | $ 25.22 | $ 11.24 | |
Unrecognized equity-based compensation expense not yet recognized | $ 61,200,000 | ||
Unrecognized equity-based compensation expense not yet recognized, period for recognition | 3 years | ||
2017 Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of common stock reserved for issuance | 6,300,000 | ||
Common stock available for future grants | 1,588,495 | ||
ESPP | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of common stock reserved for issuance | 500,000 | ||
Common stock available for future grants | 445,966 | ||
Purchase price of common stock as percentage of fair value of common stock | 85.00% | ||
Percentage of discount to employees on purchase of common stock | 15.00% | ||
Unrecognized equity-based compensation expense not yet recognized | $ 0 | ||
Management Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Aggregate number of incentive units issued | 2,931,402 | ||
Outstanding shares of common stock underlying incentive units | 1,451,202 |
Equity Incentive Plans - Summar
Equity Incentive Plans - Summary of Activity Related to Equity Awards Comprised of Stock Options and Incentive Units (Details) $ / shares in Units, $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($)$ / sharesshares | |
Equity Awards | |
Equity awards outstanding, Beginning balance | shares | 5,972,765 |
Equity awards, Granted | shares | 196,318 |
Equity awards, Exercised | shares | (24,387) |
Equity awards, Cancelled/forfeited | shares | (127,805) |
Equity awards outstanding, Ending balance | shares | 6,016,891 |
Equity awards exercisable | shares | 2,107,957 |
Weighted Average Exercise Price per Share | |
Weighted average exercise price per share outstanding, Beginning balance | $ / shares | $ 18.46 |
Weighted average exercise price per share outstanding, Granted | $ / shares | 30.89 |
Weighted average exercise price per share outstanding, Exercised | $ / shares | 17.11 |
Weighted average exercise price per share outstanding, Cancelled/forfeited | $ / shares | 25.09 |
Weighted average exercise price per share outstanding, Ending balance | $ / shares | 18.73 |
Weighted average exercise price per share, Exercisable | $ / shares | $ 10.73 |
Weighted-Average Remaining Contractual Term | |
Weighted average remaining contractual term (years), outstanding | 8 years 9 months 18 days |
Weighted average remaining contractual term (years), exercisable | 8 years 2 months 12 days |
Aggregate Intrinsic Value, Outstanding | $ | $ 59.6 |
Aggregate Intrinsic Value, Exercisable | $ | $ 35.6 |
Equity Incentive Plans - Summ_2
Equity Incentive Plans - Summary of Activity Related to Equity Awards Comprised of Stock Options and Incentive Units (Parenthetical) (Details) | Mar. 31, 2020$ / shares |
Stockholders Equity Note [Abstract] | |
Share price | $ 27.61 |
Equity Incentive Plans - Schedu
Equity Incentive Plans - Schedule of Estimated Fair Value of Equity Award on Grant Date Using Black-Scholes Option-pricing Model (Details) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Expected volatility | 81.00% | 75.00% |
Expected life | 10 years | 6 years |
Risk-free interest rate | 1.90% | 2.50% |
Expected dividend yield | 0.00% | 0.00% |
Equity Incentive plans - Summ_3
Equity Incentive plans - Summary of Equity-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total equity-based compensation expense | $ 2,586 | $ 2,925 |
Research and Development | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total equity-based compensation expense | 2,302 | 2,500 |
General and Administrative | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total equity-based compensation expense | $ 284 | $ 425 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Provision for income taxes | $ 0 | $ 0 | |
Unrecognized tax benefits | $ 0 | $ 0 |
License Agreement - Additional
License Agreement - Additional Information (Details) $ in Millions | Dec. 31, 2013USD ($) |
Tesetaxel | Daiichi Sankyo | |
License Agreement [Line Items] | |
Aggregate future milestone payments | $ 31 |