Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | May 12, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2021 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2021 | |
Entity Registrant Name | Adicet Bio, Inc. | |
Entity Central Index Key | 0001720580 | |
Trading Symbol | ACET | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-38359 | |
Entity Tax Identification Number | 81-3305277 | |
Entity Address, Address Line One | 500 Boylston Street | |
Entity Address, Address Line Two | 13th Floor | |
Entity Address, City or Town | Boston | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 02116 | |
City Area Code | 857 | |
Local Phone Number | 315-5528 | |
Entity Common Stock, Shares Outstanding | 31,813,542 | |
Security Exchange Name | NASDAQ | |
Title of 12(b) Security | Common Stock, par value $0.0001 per share | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Incorporation, State or Country Code | DE |
Consolidated Balance Sheets (un
Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 221,667 | $ 84,330 |
Short-term marketable debt securities | 1,753 | 10,284 |
Prepaid expenses and other current assets | 5,686 | 5,722 |
Total current assets | 229,106 | 100,336 |
Property and equipment, net | 3,122 | 2,790 |
Operating lease right-of-use asset | 22,380 | 23,066 |
Goodwill | 19,863 | 20,089 |
In-process research and development | 730 | 1,190 |
Restricted cash | 4,773 | 4,527 |
Other non-current assets | 2,099 | 1,837 |
Total assets | 282,073 | 153,835 |
Current liabilities: | ||
Accounts payable | 1,748 | 1,552 |
Contract liabilities — related party, current | 17,961 | 13,980 |
Accrued and other current liabilities | 4,227 | 5,732 |
Operating lease liability | 1,247 | 1,215 |
Total current liabilities | 25,183 | 22,479 |
Operating lease liability, net of current portion | 19,954 | 20,424 |
Contingent consideration liability | 600 | 980 |
Deferred tax liability | 77 | 125 |
Total liabilities | 45,814 | 44,008 |
Stockholders’ equity: | ||
Preferred stock, $0.0001 par value, 10,000,000 shares authorized as of March 31, 2021 and December 31, 2020, respectively; none issued and outstanding as of March 31, 2021 and December 31, 2020, respectively | ||
Common stock, $0.0001 par value, 150,000,000 shares authorized as of March 31, 2021 and December 31, 2020, respectively; 31,802,399 and 19,677,249 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively | 3 | 2 |
Additional paid-in capital | 363,898 | 216,126 |
Accumulated deficit | (127,644) | (106,325) |
Accumulated other comprehensive income | 2 | 24 |
Total stockholders’ equity | 236,259 | 109,827 |
Total liabilities and stockholders’ equity | $ 282,073 | $ 153,835 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) (unaudited) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 31,802,399 | 19,677,249 |
Common stock, shares outstanding | 31,802,399 | 19,677,249 |
Preferred Stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock shares authorized | 10,000,000 | 10,000,000 |
Preferred stock shares issued | 0 | 0 |
Preferred stock shares outstanding | 0 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Revenue—related party | $ (3,981) | $ 2,000 |
Operating expenses: | ||
Research and development | 11,743 | 7,033 |
General and administrative | 5,630 | 2,524 |
Total operating expenses | 17,373 | 9,557 |
Loss from operations | (21,354) | (7,557) |
Interest income | 41 | 322 |
Interest expense | (50) | |
Other income (expense), net | (4) | 70 |
Loss before income tax expense (benefit) | (21,367) | (7,165) |
Income tax expense (benefit) | (48) | (2,679) |
Net loss | $ (21,319) | $ (4,486) |
Net loss per share attributable to common stockholders, basic and diluted | $ (0.82) | $ (2.07) |
Weighted-average common shares used in computing net loss per share attributable to common stockholders, basic and diluted | 26,099,954 | 2,163,440 |
Other comprehensive income: | ||
Unrealized (loss) gain on marketable debt securities, net of tax | $ (22) | $ (15) |
Total other comprehensive (loss) income | (22) | (15) |
Comprehensive loss | $ (21,341) | $ (4,501) |
Consolidated Statement of Redee
Consolidated Statement of Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) - USD ($) $ in Thousands | Total | Redeemable Convertible Preferred Stock | Common Stock | Additional Pain In Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) |
Balance at Dec. 31, 2019 | $ (60,366) | $ 9,258 | $ (69,647) | $ 23 | ||
Balance, shares at Dec. 31, 2019 | 2,155,578 | |||||
Issuance of common stock upon exercise of stock options | 42 | 42 | ||||
Issuance of common stock upon exercise of stock options, shares | 19,953 | |||||
Stock-based compensation expense | 299 | 299 | ||||
Other comprehensive income | (15) | (15) | ||||
Net loss | (4,486) | (4,486) | ||||
Balance at Mar. 31, 2020 | (64,526) | 9,599 | (74,133) | 8 | ||
Balance, shares at Mar. 31, 2020 | 2,175,531 | |||||
Balance, temporary equity, shares at Dec. 31, 2019 | 12,048,698 | |||||
Balance, temporary equity at Dec. 31, 2019 | $ 114,083 | |||||
Balance, temporary equity, shares at Mar. 31, 2020 | 12,048,698 | |||||
Balance, temporary equity at Mar. 31, 2020 | $ 114,083 | |||||
Balance at Dec. 31, 2020 | 109,827 | $ 2 | 216,126 | (106,325) | (24) | |
Balance, shares at Dec. 31, 2020 | 19,677,249 | |||||
Issuance of common stock upon exercise of stock options | $ 976 | 976 | ||||
Issuance of common stock upon exercise of stock options, shares | 393,991 | 393,991 | ||||
Issuance of common stock related to financing | $ 143,754 | $ 1 | 143,753 | |||
Issuance of common stock related to financing (In Shares) | 11,729,353 | |||||
Exercise of warrant | 1,806 | |||||
Stock-based compensation expense | 3,043 | 3,043 | ||||
Other comprehensive income | (22) | (22) | ||||
Net loss | (21,319) | (21,319) | ||||
Balance at Mar. 31, 2021 | $ 236,259 | $ 3 | $ 363,898 | $ (127,644) | $ 2 | |
Balance, shares at Mar. 31, 2021 | 31,802,399 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities | ||
Net loss | $ (21,319) | $ (4,486) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization expense | 326 | 313 |
Noncash lease expense | 686 | |
Stock-based compensation expense | 3,043 | 299 |
Net amortization of premiums and accretion discounts on investments | 9 | (31) |
Change in fair value of redeemable convertible preferred stock warrant liability | (70) | |
Amortization of deferred debt issuance costs | 184 | |
Impairment of in-process research and development | 460 | |
Reduction to revenue | 3,981 | |
Remeasurement of contingent consideration liability | (380) | |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other current assets | 36 | (3,022) |
Other non-current assets | (377) | (205) |
Accounts payable | 196 | 316 |
Contract liabilities — related party | (2,000) | |
Operating lease liabilities | (438) | (37) |
Accrued and other current liabilities | (1,553) | 571 |
Net cash used in operating activities | (15,146) | (8,352) |
Cash flows from investing activities | ||
Proceeds from sales of marketable debt securities | 7,500 | |
Purchases of marketable debt securities | (5,700) | |
Proceeds from maturities of marketable debt securities | 1,000 | 10,440 |
Purchases of property and equipment | (658) | (295) |
Net cash provided by investing activities | 7,842 | 4,445 |
Cash flows from financing activities | ||
Proceeds from issuance of common stock, net of issuance costs | 143,754 | |
Proceeds from exercise of stock options | 976 | 42 |
Deferred debt issuance costs | 157 | |
Net cash provided by financing activities | 144,887 | 42 |
Net change in cash, cash equivalents and restricted cash | 137,583 | (3,865) |
Cash, cash equivalents and restricted cash, at the beginning of period | 88,857 | 14,889 |
Cash, cash equivalents and restricted cash, at the end of period | 226,440 | 11,024 |
Reconciliation of cash, cash equivalents and restricted cash: | ||
Cash and cash equivalents | 221,667 | 6,742 |
Restricted cash | 4,773 | 4,282 |
Cash, cash equivalents and restricted cash, at the end of period | 226,440 | 11,024 |
Supplemental cash flow information | ||
Cash received from tax refund | 158 | |
Supplemental disclosures of noncash investing and financing activities | ||
Purchases of property and equipment included in accounts payable | 67 | $ 71 |
Adjustment to goodwill | $ 56 |
Organization and Nature of Busi
Organization and Nature of Business | 3 Months Ended |
Mar. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Nature of Business | 1. Organization and Nature of the Business Adicet Bio, Inc. (formerly resTORbio, Inc. (resTORbio)), together with its subsidiaries, (the Company) is a biotechnology company discovering and developing allogeneic gamma delta T cell therapies for cancer and other diseases. The Company is advancing a pipeline of “off-the-shelf” gamma delta T cells, engineered with chimeric antigen receptors (CARs) and T cell receptor-like antibodies to enhance selective tumor targeting, facilitate innate and adaptive anti-tumor immune response, and improve persistence for durable activity in patients. The Company believes its approach has potentially significant advantages over alpha beta T cells, which are the basis of standard CAR-T cell therapies. The Company was incorporated in November 2014 Adicet Bio, Inc. (when referred to prior to the Merger (as defined below), (Former Adicet)) was incorporated in November 2014 in Delaware and was headquartered in Menlo Park, CA. Adicet Bio Israel Ltd. (formerly Applied Immune Technologies Ltd.) (Adicet Israel) is a wholly owned subsidiary of Former Adicet and is located in Haifa, Israel. Adicet Israel was founded in 2006. During 2019, Former Adicet consolidated its operations, including research and development activities, in the U.S. and as a result substantially reduced its operations in Israel. Merger with resTORbio Prior to September 15, 2020, the Company was a clinical-stage biopharmaceutical company known as resTORbio that had historically focused on developing innovative medicines that target the biology of aging, to prevent or treat age-related diseases with the potential to extend healthy lifespans. On April 28, 2020, resTORbio entered into a definitive Merger Agreement with Former Adicet (the Merger Agreement). Under the terms of the Merger Agreement, Former Adicet agreed to merge with a wholly owned subsidiary of resTORbio in an all-stock transaction with Former Adicet surviving as a wholly owned subsidiary of resTORbio and changing its name to “Adicet Therapeutics, Inc.” (such transactions, the Merger). Under the exchange ratio formula in the Merger Agreement, immediately following the Effective Time of the Merger, the securityholders of Former Adicet as of immediately prior to the Effective Time of the Merger owned approximately 75% of the outstanding shares of the Company’s common stock on a fully-diluted basis and securityholders of resTORbio as of immediately prior to the Effective Time (as defined below) of the Merger owned approximately 25% of the outstanding shares of the Company’s common stock on a fully-diluted basis (in each case excluding equity incentives available for grant). The Company concluded that the transaction represented a business combination pursuant to Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 805, Business Combinations On September 15, 2020, the Company completed the Merger pursuant to the Merger Agreement (the Effective Time). In connection with the Merger, and immediately prior to the Effective Time, the Company effected a reverse stock split of the Company’s common stock at a ratio of 1-for-7 (the Reverse Stock Split). Also, in connection with the Merger, the Company changed its name from “resTORbio, Inc.” to “Adicet Bio, Inc.” (the Name Change), Former Adicet changed its name from “Adicet Bio, Inc.” to “Adicet Therapeutics, Inc.” and the business conducted by the Company became primarily the business which was previously conducted by Former Adicet, which is a biotechnology company discovering and developing allogeneic gamma delta T cell therapies for cancer and other diseases. At the Effective Time, each outstanding share of Former Adicet capital stock was converted into the right to receive 0.1240 Immediately following the Effective Time, there were approximately 19,589,828 shares of the Company ’s c ommon s tock outstanding (post Reverse Stock Split) and the former equity holders of Former Adicet held approximately 75% of the outstanding shares of Company ’s c ommon s tock on a fully-diluted basis and the former equity holders of resTORbio held approximately 25% of the outstanding shares of Company ’s c ommon s tock on a fully-diluted basis (in each case excluding equity incentives available for grant) . Please refer to Note 3 “Business Combinations” for further details of the Merger. Liquidity The Company has incurred significant net operating losses and negative cash flows from operations and has an accumulated deficit of $127.6 million as of March 31, 2021. The Company has historically financed its operations primarily through a collaboration and licensing arrangement, through the private placement of equity securities and debt, and cash received in the Merger. To date, none of the Company’s product candidates have been approved for sale and therefore the Company has not generated any revenue from product sales. Management expects operating losses and negative cash flows to continue for the foreseeable future, until such time, if ever, that it can generate significant sales of its product candidates currently in development. In February 2021, the Company completed an underwritten public offering of 10,575,513 shares of its common stock at a public offering price of $13.00 per share. The Company received aggregate gross proceeds from the offering, before deducting underwriting discounts and commissions and offering expenses of approximately $137.5 million. In connection with the offering, the Company also entered into a stock purchase agreement with certain existing investors for $15.0 million of shares of the Company’s common stock at a price per share equal to the public offering price, with an initial closing for certain investors held simultaneously with the closing of the offering and a subsequent closing for certain additional investors. These two recent events have resolved the substantial doubt about the Company’s ability to continue as a going concern. The Company expects that its cash, cash equivalents and marketable debt securities, including the gross proceeds it received in February 2021 from its underwritten public offering and the proceeds received from a stock purchase agreement with certain existing investors, will be sufficient to fund its forecasted operating expenses, capital expenditure requirements and debt service payments for at least the next twelve months from the issuance of these interim consolidated financial statements. All of the Company’s revenue to date is generated from the Regeneron Agreement, which is a collaboration and license agreement with Regeneron Pharmaceuticals, Inc. (Regeneron). The Company does not expect to generate any significant product revenue until it obtains regulatory approval of and commercialize any of the Company’s product candidates or enter into additional collaborative agreements with third parties, and it does not know when, or if, either will occur. The Company expects to continue to incur significant losses for the foreseeable future, and it expects the losses to increase as the Company continues the development of, and seek regulatory approvals for, its product candidates and begin to commercialize any approved products. The Company is subject to all of the risks typically related to the development of new product candidates, including, but not limited to, raising additional capital, development by its competitors of new technological innovations, risk of failure in preclinical and clinical studies, safety and efficacy of its product candidates in clinical trials, the risk of relying on external parties such as contract research organizations (CROs) and contract manufacturing organizations (CMOs), the regulatory approval process, market acceptance of the Company’s products once approved, lack of marketing and sales history, dependence on key personnel and protection of proprietary technology and it may encounter unforeseen expenses, difficulties, complications, delays, and other unknown factors that may adversely affect its business. Until such time as the Company can generate significant revenue from product sales, if ever, the Company expects to finance its operations through the sale of equity, debt financings, collaborative or other arrangements with corporate or other sources of financing. Adequate funding may not be available to the Company on acceptable terms or at all. The Company’s failure to raise capital as and when needed could have a negative impact on its financial condition and the Company’s ability to pursue its business strategies. Although the Company continues to pursue these plans, there is no assurance that the Company will be successful in obtaining sufficient funding on terms acceptable to the Company to fund continuing operations, if at all. |
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 Basis of Presentation The unaudited interim consolidated financial statements and related disclosures have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Significant Accounting Policies The Company’s significant accounting policies are described in Note 2, Summary of Significant Accounting Policies, to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. There have been no material changes to the significant accounting policies during the three-month period ended March 31, 2021. Unaudited Interim Financial Information The consolidated balance sheet as of December 31, 2020 was derived from the Company’s audited financial statements, but does not include all disclosures required by GAAP. The accompanying unaudited consolidated financial statements as of March 31, 2021 and for the three months ended March 31, 2021 and 2020, have been prepared by the Company, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”), for interim financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been or omitted pursuant to such rules and regulations. However, the Company believes that the disclosures are adequate to make the information presented not misleading. These consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto for the year ended December 31, 2020. In the opinion of management, all adjustments, consisting only of normal recurring adjustments necessary for a fair statement of the Company’s consolidated financial position as of March 31, 2021 and consolidated results of operations for the three months ended March 31, 2021 and 2020 and consolidated cash flows for the three months ended March 31, 2021 and 2020 have been made. The results of operations for the three months ended March 31, 2021 are not necessarily indicative of the results of operations that may be expected for the year ending December 31, 2021. Concentration of Credit Risk Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of cash and cash equivalents, and marketable debt securities. The Company’s cash and cash equivalents are held at two financial institutions in the U.S. and one financial institution in Israel and such amounts may, at times, exceed insured limits. The Company invests its cash equivalents and marketable debt securities in money market funds, U.S. government securities, commercial paper, corporate bonds, and asset-backed securities. The Company limits its credit risk associated with cash equivalents and marketable debt securities by placing them with banks and institutions it believes are highly creditworthy and in highly rated investments. The Company has not experienced any losses on its deposits of cash and cash equivalents and marketable debt securities to date. The Company has one customer, Regeneron Pharmaceuticals, Inc. (Regeneron), which represents 100% of the Company’s total revenue for the quarters ended March 31, 2021, and 2020 (see Note 10). Risks and Uncertainties 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, 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, clinical trials, and regulatory approval, prior to commercialization. These efforts require significant amounts of additional capital, adequate personnel infrastructure and extensive compliance and reporting. The Company’s product candidates are still in development and, to date, none of the Company’s product candidates have been approved for sale and, therefore, the Company has not generated any revenue from product sales. 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 or maintained, 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 revenue from product sales. The Company operates in an environment of rapid change in technology and substantial competition from other pharmaceutical and biotechnology companies. The current COVID-19 (coronavirus) pandemic, which is impacting worldwide economic activity, poses risk that the Company or its employees, contractors, suppliers, and other partners may be prevented from conducting business activities for an indefinite period of time, including due to shutdowns that may be requested or mandated by governmental authorities. The extent to which the coronavirus impacts the Company’s operations will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the duration of the outbreak, new information that will emerge concerning the severity of the coronavirus and the actions to contain the coronavirus or treat its impact, among others. COVID-19 may impact the timing of regulatory approval of the investigational new drug ( INDs ) for clinical trials, the enrollment of any clinical trials that are approved, the availability of clinical trial materials and regulatory approval and commercialization of our products. COVID-19 may also impact the Company’s ability to access capital, which could negatively impact short-term and long-term liquidity . Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the FASB ASC or other standard setting bodies and adopted by the Company as of the specified effective date, unless otherwise discussed below. Recently Adopted Accounting Pronouncements In November 2018, FASB issued ASU 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction Between Topic 808 and Topic 606 Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. This ASU replaces the existing incurred loss impairment model with an expected loss model. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. These changes will result in earlier recognition of credit losses. For public business entities that meet the definition of a Securities and Exchange Commission (SEC) filer, excluding entities eligible to be smaller reporting companies as defined by the SEC, adoption is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. For SEC filers that are eligible to be smaller reporting companies and for all other entities, this ASU is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact the adoption of this ASU will have on its consolidated financial statements and related disclosures. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740)—Simplifying the Accounting for Income Taxes, which simplify various aspects related to the accounting for income taxes. This ASU removes exceptions to the general principles in Topic 740 related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. For public companies, this ASU is effective for interim and annual reporting periods beginning after December 15, 2020. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Early adoption is permitted. The Company is currently evaluating the impact the adoption of this ASU will have on its consolidated financial statements and related disclosures. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848) |
Business Combination
Business Combination | 3 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Business Combination | 3. Business Combination On September 15, 2020 resTORbio’s stockholders will continue to own and hold their existing shares of the Company’s common stock (after giving effect to the 1-for-7 reverse stock split). Pursuant to the terms of the Merger, For accounting purposes, the Company assumed 81,370 in-the-money resTORbio stock options after giving effect to reverse stock split. In addition, 91,309 unvested resTORbio restricted stock units outstanding and unsettled, after giving effect to reverse stock split, as of immediately prior to the effective time of the Merger, were accelerated in full and the holders of such restricted stock units received 54,553 shares of the Company’s common stock (after reduction by the number of shares of resTORbio common stock necessary to satisfy applicable tax withholding obligations at the maximum statutory rate). The fair value of these modified stock options and restricted stock units attributable to pre-combination services was recorded as a component of consideration transferred and the fair value of these modified stock options and restricted stock units attributable to post-combination services was recognized as stock compensation expense in the Company’s consolidated statements of operations and comprehensive loss at the close of the Merger At the closing of the Merger, all shares of Former Adicet common stock and Former Adicet redeemable convertible preferred stock then outstanding were converted to Former Adicet’s common stock under their original terms and were then exchanged for the Company’s common stock. In connection with the Merger, the Company entered into a Contingent Value Rights Agreement (the CVR Agreement) with Computershare Inc. and Computershare Trust Company, N.A. as joint rights agent. Per the terms of the Merger, each holder of resTORbio common stock as of immediately prior to the completion of the Merger is entitled to one contractual contingent value right, subject to and in accordance with the terms and conditions of the CVR Agreement, for each share of resTORbio common stock held by such holder as of immediately prior to the Effective Time. The CVR holders are entitled to receive net proceeds from the commercialization, if any, from a third-party commercial partner of RTB101, resTORbio’s small molecule product candidate that is a potent inhibitor of target of rapamycin complex 1 (TORC1), for a COVID-19 related indication . The total purchase price was allocated to the tangible and intangible assets acquired and liabilities assumed of resTORbio based on their fair values as of the completion of the Merger, with the excess allocated to goodwill. The purchase price is calculated based on the fair value of resTORbio common stock that the resTORbio stockholders owned as of the closing date of the Merger because, with no active trading market for shares of Former Adicet, the fair value of the resTORbio’s common stock represented a more reliable measure of the fair value of consideration transferred in the Merger. The following summarizes the purchase price in the Merger (in thousands, except share and per share amounts): Fair value of common stock shares of the combined company owned by resTORbio stockholders (1) $ 84,142 Fair value of contingent consideration liability with respect to CVR (2) 2,880 Purchase price $ 87,022 (1) Represents the share consideration of the combined company that the resTORbio stockholders own as of the closing of the Merger calculated as follows: Number of shares of the combined company owned by resTORbio stockholders (a) 5,207,695 Multiplied by the fair value per share of resTORbio common stock (b) $ 16.59 Acquisition date fair value of resTORbio 86,396 Estimated fair value of modified stock options and restricted stock units attributable to pre-combination services (3) 626 Less: portion of the fair value to be distributed as CVR (c) (2,880 ) Fair value of shares of the combined company owned by resTORbio stockholders $ 84,142 a. Represents the number of shares of common stock of the combined company that the resTORbio stockholders owned as of the closing of the Merger. This amount is calculated as 5,207,695 shares of resTORbio common stock outstanding as of September 15, 2020. b. The purchase price is based on the closing price of resTORbio common stock on September 14, 2020. c. The fair value of resTORbio common stock was further adjusted to remove the estimated fair value of the CVR embedded within the closing price, as each holder of resTORbio stock will receive one contractual CVR immediately prior to the Merger. (2) Each holder of resTORbio common stock as of immediately prior to the completion of the Merger was entitled to one CVR issued by resTORbio, subject to and in accordance with the terms and conditions of the CVR Agreement, for each share of resTORbio common stock held by such holder as of immediately prior to the effective time of the Merger (3) Based on the capitalization of resTORbio as of September 15, 2020, 91,309 outstanding unvested resTORbio restricted stock units were accelerated in connection with the Merger and holders of the restricted stock units were issued approximately 54,553 shares of resTORbio common stock on a net settlement basis. Similarly, in connection with the Merger, vesting of outstanding resTORbio stock options was accelerated in full and the stock options that were not in the in-the-money on the close of the Merger were canceled, resulting in approximately 81,370 surviving stock options. The acquisition date fair value of these modified resTORbio restricted stock units and resTORbio stock options attributable to the pre-combination services is included in the estimated purchase price. The Merger was accounted for as a business combination which requires that assets acquired, and liabilities assumed be recognized at their fair value as of the acquisition date. While the Company uses its best estimates and assumptions as part of the purchase price allocation process to value the assets acquired and liabilities assumed on the acquisition date, its estimates and assumptions are subject to refinement. Fair value estimates are based on a complex series of judgments about future events and uncertainties and rely heavily on estimates and assumptions. The judgments used to determine the estimated fair value assigned to each class of assets acquired and liabilities assumed, as well as asset lives, can materially impact the Company’s results of operations . For the quarter ended March 31, 2021, the Company identified and recorded measurement period adjustments of $0.2 million to its preliminary purchase price allocation that was disclosed in prior periods based on the facts and circumstances existing as of the acquisition date. The following summarizes the allocation of the purchase price to the net tangible and intangible assets acquired (in thousands): As of December 31, 2020 Measurement Period Adjustments As of March 31, 2021 Net assets acquired: Cash and cash equivalents $ 63,869 $ — $ 63,869 Prepaid expenses and other current assets 3,059 226 3,285 Property and equipment 318 — 318 IPR&D 3,490 — 3,490 Restricted cash 245 — 245 Accounts payable (1,316 ) — (1,316 ) Accrued and other current liabilities (2,365 ) — (2,365 ) Other liabilities — — — Deferred tax liability (367 ) — (367 ) Goodwill 20,089 (226 ) 19,863 Purchase price $ 87,022 $ — $ 87,022 The goodwill of $19.9 million is not tax deductible and represents the excess of the consideration paid over the fair value of assets acquired and liabilities assumed. Goodwill is mainly attributable to the enhanced value of the combined company, as reflected in the increase in market value of the resTORbio common shares following the announcement of the Merger with Former Adicet. The fair value of acquired in-process research and development (IPR&D) is related to the research and development of RTB101 for a COVID-19 related indication. The RTB101 compound IPR&D project was valued using an income approach, specifically a projected discounted cash flow method, adjusted for the probability of technical success (PTS). The projected discounted cash flow models used to estimate the Company’s IPR&D reflect significant assumptions regarding the estimates a market participant would make in order to evaluate a drug development asset, including the following: • Estimates of potential cash flows to be generated by the project and resulting asset, which was developed utilizing estimates of total patient population, market penetration rates, demand risk adjustment factors, and product pricing; • Estimates regarding the timing of and the expected costs of goods sold, research and development expenses, selling, general and administrative expenses to advance the clinical programs to commercialization, cash flow adjustments and partner profit split; • The projected cash flows were then adjusted using PTS factors that were selected considering both the current state of clinical development and the nature of the proposed indication, (i.e., respiratory therapeutics); and • Finally, the resulting probability adjusted cash flows were discounted to a present value using a risk-adjusted discount rate, developed considering the market risk present in the forecast and the size of the asset. This IPR&D intangible asset is not amortized, but rather are reviewed for impairment on an annual basis or more frequently if indicators of impairment are present, until the project is completed, abandoned, or transferred to a third party. The Company performed a review for impairment of IPR&D for the quarter ended March 31, 2021, and recognized an impairment charge of $0.5 million as of March 31, 2021, which was recorded as research and development expenses in the consolidated statement of operations and comprehensive loss. The contingent consideration for the CVR was valued using an income approach, leveraging the probability adjusted discounted cash flow used in the valuation of the IPR&D and then deducting the administrative fee to be retained by the combined company and other permitted deductions in order to arrive at the net cash expected to be paid out to the CVR holders. The probability adjusted cash flow includes significant estimates and assumptions pertaining to commercialization events and cash consideration received by the Company for the grant of rights to commercialize RTB101 during the term of the CVR Agreement (as discussed above). These cash flows were then discounted to present value using the same discount rate applied in the valuation of the IPR&D. The following tables present changes in the Company’s IPR&D and CVR since the Merger (in thousands): Acquisition Date Fair value as of September 15, 2020 Change in Fair value As of December 31, 2020 Change in Fair value As of March 31, 2021 In-process research and development $ 3,490 $ (2,300 ) $ 1,190 $ (460 ) $ 730 Contingent Value Rights $ 2,880 $ (1,900 ) $ 980 $ (380 ) $ 600 Former Chief Executive Officer’s Transition Agreement On April 28, 2020, in connection with the Merger the Company entered into a transition agreement with Anil Singhal, Former Adicet’s Chief Executive Officer and President, pursuant to which Dr. Singhal transitioned from his role as Chief Executive Officer and President to an advisory role immediately after the closing of the Merger. In accordance with such agreement, Dr. Singhal received the following compensation: (1) cash payments of ( i ) $ 470,000 within 60 days following the closing of the Merger, (ii) an amount equal to his pro-rated bonus of $ 212,000 for the 2020 calendar year payable within 60 days following the closing of the Merger, (iii) $ 250,000 payable in one lump sum on January 1, 2021 and (iv) $ 24,000 payable within 60 days following the closing of the Merger, (2) 12 months’ of accelerated vesting of his unvested options to purchase the Company’s common stock upon completion of the Merger, and (3) a 12-month post-termination exercise period following termination of his independent contractor services agreement, dated April 28, 2020 (the “ICSA”), subject to any earlier expiration of the options to purchase the Company’s common stock by their terms. Pursuant to such agreement, subject to Dr. Singhal’s continued service through the completion of the Merger and contingent on completion of the Merger, Dr. Singhal’s continued service for purposes of vesting of his options to purchase the Company’s common stock would continue until the earlier of ( i ) May 7, 2021 or (ii) termination of the ICSA, provided, however, if the ICSA was terminated early without cause, Dr. Singhal would be entitle d to accelerated vesting of unvested options that would have vested from the date of such termination through May 7, 2021. In addition, Dr. Singhal’s existing options acceleration provisions would terminate. Pursuant to the ICSA, Dr. Singhal provide d certain advisory services to the Company and received payments of $ 12,500 per month for such services. The ICSA was terminated without cause in February 2021. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 4. Fair Value Measurements The Company determines the fair value of financial and non-financial assets and liabilities using the fair value hierarchy which establishes three level of inputs that may be used to measure fair value, as follows: Level 1 — Observable inputs, such as quoted prices in active markets for identical assets or liabilities. Level 2 — Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 — Unobservable inputs which reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considers counterparty credit risk in its assessment of fair value. Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires management to make judgments and consider factors specific to the asset or liability. The following tables present information about the Company’s financial assets and liabilities measured at fair value on a recurring basis and indicate the level of the fair value hierarchy utilized to determine such fair values (in thousands): March 31, 2021 Level 1 Level 2 Level 3 Total Assets: Money market funds (1) $ 204,946 $ — $ — $ 204,946 Corporate debt securities (2) — 1,753 — 1,753 Total fair value of assets $ 204,946 $ 1,753 $ — $ 206,699 Liabilities: Contingent consideration $ — $ — $ 600 $ 600 Total fair value of liabilities $ — $ — $ 600 $ 600 December 31, 2020 Level 1 Level 2 Level 3 Total Assets: Money market funds (1) $ 63,817 $ — $ — $ 63,817 Marketable debt securities Asset-backed securities — 7,522 — 7,522 Corporate debt securities — 1,762 — 1,762 Commercial paper — 1,000 — 1,000 Marketable debt securities — 10,284 — 10,284 Total fair value of assets $ 63,817 $ 10,284 $ — $ 74,101 Liabilities: Contingent consideration $ — $ — $ 980 $ 980 Total fair value of liabilities $ — $ — $ 980 $ 980 (1) Included in cash and cash equivalents in the consolidated balance sheets. (2) Included in short-term marketable debt security in the consolidated balance sheets. Money market funds are included within Level 1 of the fair value hierarchy because they are valued using quoted market prices. Corporate debt securities, U.S. government agency bonds, commercial paper and asset-backed securities are classified within Level 2 of the fair value hierarchy as they take into consideration valuations obtained from third-party pricing services. The pricing services utilize industry standard valuation models, including both income-based and market-based approaches, for which all significant inputs are observable, either directly or indirectly, to estimate the fair value. These inputs include reported trades of and broker/dealer quotes on the same or similar securities, issuer credit spreads, benchmark securities, prepayment/default projections based on historical data and other observable inputs. As part of the acquisition of resTORbio, the Company entered into a CVR Agreement and recorded the fair value of the CVR as part of consideration transferred. The Company considers the contingent consideration liability a Level 3 instrument (one with significant unobservable inputs) in the fair value hierarchy. In February 2021, management terminated the COVID-19 study due to slow enrollment and consequently lowered the probability of finding a partner due to the delay in time to commercialization of RTB101. As a result, the fair value of the CVR liability decreased by $0.4 million to $0.6 million. |
Marketable Debt Securities
Marketable Debt Securities | 3 Months Ended |
Mar. 31, 2021 | |
Investments Debt And Equity Securities [Abstract] | |
Marketable Debt Securities | 5. Marketable Debt Securities The following table summarizes the Company’s marketable debt securities March 31, 2021 Amortized Cost Unrealized Losses Unrealized Gains Fair Value Corporate debt securities 1,751 — 2 1,753 Total $ 1,751 $ — $ 2 $ 1,753 December 31, 2020 Amortized Cost Unrealized Losses Unrealized Gains Fair Value Asset-backed securities $ 7,507 $ — $ 15 $ 7,522 Corporate debt securities 1,754 — 8 1,762 Commercial paper 999 — 1 1,000 Total $ 10,260 $ — $ 24 $ 10,284 The following table summarizes the classification of the Company’s marketable debt securities in the consolidated balance sheets (in thousands): March 31, December 31, 2021 2020 Short-term marketable debt securities 1,753 10,284 Long-term marketable debt securities — — Total $ 1,753 $ 10,284 |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 3 Months Ended |
Mar. 31, 2021 | |
Prepaid Expense And Other Assets Current [Abstract] | |
Prepaid Expenses and Other Current Assets | 6. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following (in thousands): March 31, 2021 December 31, 2020 Prepaid maintenance and other $ 1,732 $ 1,185 Prepaid insurance 1,039 1,443 Tax receivable 2,769 2,711 Interest receivable 22 20 Other current assets 124 363 Total prepaid expenses and other current assets $ 5,686 $ 5,722 |
Property and Equipment, Net
Property and Equipment, Net | 3 Months Ended |
Mar. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | 7. Property and Equipment, net Property and equipment, net consisted of the following (in thousands): Useful life (in years) March 31, 2021 December 31, 2020 Laboratory equipment 3 $ 4,419 $ 4,350 Leasehold improvements Lesser of useful life or lease term $ 1,427 $ 1,427 Furniture and fixtures 3 541 524 Construction in progress — 1,519 1,090 Computer equipment 3 104 93 Software 3 302 170 8,312 7,654 Less: Accumulated depreciation and amortization (5,190 ) (4,864 ) Property and equipment, net $ 3,122 $ 2,790 Depreciation and amortization expense was $0.3 million and $0.3 million for the three months ended March 31, 2021 and 2020, respectively. |
Accrued and Other Current Liabi
Accrued and Other Current Liabilities | 3 Months Ended |
Mar. 31, 2021 | |
Payables And Accruals [Abstract] | |
Accrued and Other Current Liabilities | 8. Accrued and Other Current Liabilities Accrued and other current liabilities consisted of the following (in thousands): March 31, 2021 December 31, 2020 Accrued compensation $ 2,043 $ 3,833 Accrued research and development expenses 1,333 1,187 Accrued professional services 821 386 Accrued other liabilities 30 326 Total accrued and other liabilities $ 4,227 $ 5,732 |
Term Loan
Term Loan | 3 Months Ended |
Mar. 31, 2021 | |
Term Loan [Abstract] | |
Term Loan | 9. Term Loan On April 28, 2020, the Company entered into a Loan and Security Agreement with Pacific Western Bank for a term loan not exceeding $12.0 million (the Loan Agreement) to finance leasehold improvements for the facilities in Redwood City, CA and other purposes permitted under the Loan Agreement, with an interest rate equal to the greater of 0.25% above the Prime Rate (as defined in the Loan Agreement) or 5.00%. In connection with the entrance into the Loan Agreement, the Company issued Pacific Western Bank a warrant to purchase shares of its Series B redeemable convertible preferred stock at an exercise price of $1.4034 per share (the Existing PacWest Warrant). The Existing PacWest Warrant was initially exercisable for 42,753 shares of the Company’s Series B redeemable convertible preferred stock (not adjusted for the Exchange Ratio). Pursuant to the terms of the Existing PacWest Warrant and the Merger agreement (see Note 3), at the Effective Time of the Merger, the Company issued a new common stock warrant to Pacific Western Bank (the New PacWest Warrant) which replaced the Existing PacWest Warrant. The New PacWest Warrant is initially exercisable solely for 5,301 shares of the Company’s common stock and will be exercisable for an additional number of shares of the Company’s common stock equal to 1.00% of the aggregate original principal amount of all term loans made pursuant to the Loan Agreement (up to an aggregate maximum of 15,903 shares of the Company’s common stock). Any restriction on the exercise set forth in the Existing PacWest Warrant are in full force and effect in the New PacWest Warrant and the term, exercisability, vesting schedule and other provisions of the Existing PacWest warrant otherwise remain unchanged in the New PacWest Warrant. Further, the New PacWest Warrant to purchase 5,301 shares of the Company’s common stock is immediately exercisable. See Note 15 for further discussion regarding terms of warrants. The New PacWest Warrant was exercised in February 2021 and the net issuance was 1,806 shares of common stock At issuance, the Company accounted for the fair value of the Existing PacWest Warrant, determined to be $0.1 million, as a liability and as a corresponding deferred debt issuance cost which was amortized on a straight-line basis until the Availability End Date in interest expenses. The liability was adjusted to fair value each reporting period through earnings. Upon issuance of the New PacWest Warrant, the liability was reclassified to additional paid-in capital and is no longer subject to remeasurement at fair value. The fair value of the New PacWest Warrant was equal to the fair value of the Existing PacWest Warrant on the Merger date. Accordingly, no incremental expense was recognized at the Merger date. Upon each draw of the term loan, the Company will derecognize the proportionate unamortized amount of the deferred debt issuance cost and account for it as a debt discount to the drawn term loan. The debt discount will be presented in the consolidated balance sheet as a direct adjustment to the carrying value of the term loan. The debt discount will be amortized using the effective interest rate method over the term of the debt and recorded as an interest expense. As of March 31, 2021, the deferred debt issuance costs were $0.2 million and are included in other non-current assets on the Company’s consolidated balance sheets. |
Regeneron License and Collabora
Regeneron License and Collaboration Arrangement | 3 Months Ended |
Mar. 31, 2021 | |
Revenue Recognition And Deferred Revenue [Abstract] | |
Regeneron License and Collaboration Arrangement | 10. Regeneron License and Collaboration Arrangement Agreement Terms On July 29, 2016, the Company entered into a license and collaboration agreement with Regeneron Pharmaceuticals, Inc. (Regeneron), which was amended in April 2019, with such amendment becoming effective in connection with Regeneron’s investment in the Company’s Series B redeemable convertible preferred stock private placement transaction in July 2019 (as amended, the Regeneron Agreement). Financial Terms . The Company received a non-refundable upfront payment of $25.0 million from Regeneron upon execution of the Regeneron Agreement, has received an aggregate of $20.0 million of additional payments for research funding from Regeneron as of March 31, 2021. In addition, Regeneron may have to pay the Company additional amounts in the future consisting of up to an aggregate of $100.0 million of option exercise fees, as specified in the Regeneron Agreement. Regeneron must also pay the Company high single digit royalties as a percentage of net sales for ICPs to targets for which it has exclusive rights, and low single digit royalties as a percentage of net sales on any non-ICP product comprising a targeting moiety generated by the Company through the use of Regeneron’s proprietary mice. The Company must pay Regeneron mid-single to low double digit, but less than teens, of royalties as a percentage of net sales of ICPs to targets for which the Company has exercised exclusive rights, and low to mid-single digit of royalties as a percentage of net sales of targeting moieties generated from the Company’s license to use Regeneron’s proprietary mice. Royalties are payable until the longer of the expiration or invalidity of the licensed patent rights or twelve (12) years from first commercial sale. Equity Investments . In connection with its collaboration, Regeneron and the Company entered into a side letter pursuant to which, among other matters, Regeneron was granted certain stockholder rights and investment rights in connection with the Company’s next equity financing that met certain criteria and in connection with an initial public offering by the Company. Regeneron exercised its investment right and purchased approximately $10.0 million of the Company’s Series B redeemable convertible preferred stock in a private placement transaction in July 2019. The remaining obligations under the side letter agreement terminated immediately prior to the Effective Time of the Merger. Revenue Recognition The Company identified the following material promises under the Regeneron Agreement: (1) a research license, (2) a collaboration invention license, (3) a trademark license, (4) research and development services during the research term, (5) manufacturing services to manufacture collaboration ICPs for the research programs, (6) participation in the joint research committee, and (7) information sharing during the research term. The Company considered that the licenses granted under the Regeneron Agreement are not capable of being distinct and are not distinct from the research and development and manufacturing services within the context of the Regeneron Agreement, because 1) such licenses are for the research and development effort during the research term, unless Regeneron exercises its option under the Regeneron Agreement, 2) the research and development services significantly increase the utility of such licenses, and 3) research and development services require collaboration ICPs being manufactured. Specifically, the Company’s granted licenses can only provide benefit to Regeneron in combination with the Company’s research and development and manufacturing services to discover the collaboration ICPs. Similarly, the participation in the joint research committee and information sharing are not capable of being distinct and are not distinct from the research and development and manufacturing services within the context of the agreement, because the participation in the joint research committee is for monitoring and governing of the research and development efforts and the information sharing is for sharing results of such research and development efforts. Therefore, all of the promises above are combined into a single performance obligation. The Company also evaluated whether the option provided to Regeneron represents a material right that would require separate deferral and recognition. The option exercise will provide Regeneron with a development and commercial license to develop and commercialize the optioned collaboration ICPs. The Company concluded that the $25.0 million upfront payment to the Company was not negotiated to provide incremental discount for the future option fees payable upon Regeneron’s exercise of the option. Regeneron could decide not to exercise the option at its own discretion. The exercise of the option by Regeneron is not certain and is dependent on many factors, such as progress made on the specific option-eligible collaboration ICP, Regeneron’s overall assessment of commercial feasibility of the further research, development and commercialization of the option products, availability and cost of alternative programs and products. The option provides Regeneron with a license for intellectual property that will be improved from the inception of the Regeneron Agreement. In addition, the option fee is significant compared to the sum total of the upfront payment and research funding fees in the original Regeneron Agreement. Therefore, the Company determined that the option provided to Regeneron does not represent a material right and that any potential exercise of the option should be accounted as a separate contract. Hence, upon the option exercise by Regeneron the option fee would be allocated to the development and commercial license which would be the only performance obligation in that separate contract and recognized as revenue when control of the license rights is transferred to Regeneron. For revenue recognition purposes, the Company determined that the duration of the contract is the same as the research term of five years At contract inception, the Company determined a transaction price of the Regeneron Agreement consisting of the $25.0 million upfront payment and the aggregate research funding fees payable over the research term. In order to determine the transaction price, the Company evaluated all the payments to be received during the duration of the contract. Per the terms of the original Regeneron Agreement prior to the amendment effective from July 2019, the research funding fees were payable merely due to the passage of time and therefore did not represent a variable consideration. After the amendment became effective in July 2019, certain of these fees became contingent upon meeting certain development and regulatory milestones. Therefore, the Company concluded that after the amendment such potential payments became variable consideration. The receipt of the variable consideration was subject to substantial uncertainty and was therefore excluded from the transaction price upon the effective date of the amendment. As a result, during the three months ended September 30, 2019, the Company recorded $6.6 million as a reduction to cumulative revenue recognized prior to the amendment effective date. The Company will re-evaluate the transaction price if there is a significant change in facts and circumstances at least at the end of each reporting period. The Company increased the transaction price by $10.0 million in June 2020 when it achieved the milestone for the selection of a clinical candidate to the second collaboration target under the Regeneron Agreement, resulting in the recognition of an additional $5.0 million in revenue during the three months ended June 30, 2020. During the three months ended March 31, 2021, the Company recorded a $4.0 million reduction to cumulative revenue recognized as a result of a change in overall estimated costs primarily due to an extension of time fulfill the combined performance obligation, which was recorded as a change in estimate. The Company has determined that the combined performance obligation is satisfied over time. ASC 606 requires the Company to select a single revenue recognition method for the performance obligation that depicts the Company’s performance in transferring control of the services. Accordingly, the Company utilizes a cost-based input method to measure proportional performance and to calculate the corresponding amount of revenue to recognize. The Company believes this is the best measure of progress because it reflects how the Company transfers its performance obligation to Regeneron. In applying the cost-based input method of revenue recognition, the Company uses actual costs incurred relative to budgeted costs to fulfill the combined performance obligation. These costs consist primarily of internal full-time equivalent effort and third-party contract costs. Revenue is recognized based on actual costs incurred as a percentage of total budgeted costs as the Company completes its performance obligations over the research term of five years. A cost-based input method of revenue recognition requires management to make estimates of costs to complete the Company’s performance obligations. In making such estimates, significant judgment is required to evaluate assumptions related to cost estimates. The cumulative effect of revisions to estimated costs to complete the Company’s performance obligations will be recorded in the period in which changes are identified and amounts can be reasonably estimated. A significant change in these assumptions and estimates could have a material impact on the timing and amount of revenue recognized in future periods. The following tables present changes in the Company’s contract liabilities for the three months ended March 31, 2021 and 2020 (in thousands): Three Months Ended March 31, 2021 Balance at beginning of period Additions Additions (Deductions) (1) Balance at end of period Contract liability $ 13,980 $ — $ 3,981 $ 17,961 Three Months Ended March 31, 2020 Balance at beginning of period Additions Additions (Deductions) (1) Balance at end of period Contract liability $ 21,883 $ — $ (2,000 ) $ 19,883 (1) As of March 31, 2021, contract liabilities related to the Regeneron Agreement of $18.0 million was comprised of the $25.0 million upfront payment and additional $5.0 million research funding fees in each of 2017 and 2018, and $10.0 million for achievement of the milestone for the selection of a clinical candidate to the second collaboration target in June 2020 less $27.0 million of cumulative license and collaboration revenue recognized from the inception of the Regeneron Agreement as of March 31, 2021 and will be recognized as the combined performance obligation is satisfied. As of March 31, 2020, contract liabilities related to the Regeneron Agreement of $19.9 million was comprised of the $25.0 million upfront payment and additional $5.0 million research funding fees in each of 2017 and 2018, less $15.1 million of cumulative license and collaboration revenue recognized from the inception of the Regeneron Agreement as of March 31, 2020. |
License Funding and Other Agree
License Funding and Other Agreements Related to the CVR | 3 Months Ended |
Mar. 31, 2021 | |
License Funding And Other Agreements [Abstract] | |
License, Funding and Other Agreements Related to the CVR | 11. License, Funding and Other Agreements Related to the CVR Contingent Value Rights Agreement As discussed in Note 3, in connection with the Merger, the Company entered into the CVR Agreement with Computershare Inc. and Computershare Trust Company, N.A. as joint rights agent. The CVR holders are entitled to receive net proceeds from the commercialization, if any, received from a third-party commercial partner of RTB101 for a COVID-19 related indication. The total fees and expenses of the Company’s clinical trials for a COVID-19 related indication of RTB101 is limited to $3.0 million under the CVR Agreement. Through October 31, 2020, the Company’s total accumulated spend was $1.1 million of expenses. In November 2020, management terminated the nursing home study due to slow enrollment and as a consequence lowered the probability of finding a partner due to the delay in time to commercialization of RTB101. In February 2021, management terminated the National Institute on Aging study of RTB101 for COVID-19 post-exposure prophylaxis in adults age 65 years and older due to poor enrollment. In March 2021, management estimated that the probability of finding a partner should be further reduced. As a result, the fair value of the CVR liability was decreased by $0.4 million to $0.6 million. Novartis License Agreement On March 23, 2017, resTORbio entered into an exclusive license agreement with Novartis International Pharmaceutical Ltd. (“Novartis”). Under the agreement, Novartis granted resTORbio an exclusive, field-restricted, worldwide license, to certain intellectual property rights owned or controlled by Novartis, to develop, commercialize and sell one or more therapeutic products comprising RTB101 or RTB101 in combination with everolimus in a fixed dose combination. The exclusive field under the license agreement is for the treatment, prevention and diagnosis of disease and other conditions in all indications in humans and animals. The agreement may be terminated by either party upon a material breach of obligation by the other party that is not cured with 60 days after written notice. resTORbio may terminate the agreement in its entirety or on a product-by-product or country-by-country basis with or without cause with 60 days’ prior written notice. Novartis may terminate the portion of the agreement related to everolimus if resTORbio fails to use commercially reasonable efforts to research, develop and commercialize a product utilizing everolimus for a period of three years. Novartis may terminate the license agreement upon resTORbio’s bankruptcy, insolvency, dissolution or winding up. As consideration for the license, resTORbio is required to pay up to an aggregate of $4.3 million upon the satisfaction of clinical milestones, up to an aggregate of $24 million upon the satisfaction of regulatory milestones for the first indication approved, and up to an aggregate of $18 million upon the satisfaction of regulatory milestones for the second indication approved. In addition, resTORbio is required to pay up to an aggregate of $125 million upon the satisfaction of commercial milestones, based on the amount of annual net sales. resTORbio is also required to pay tiered royalties ranging from a mid-single digit percentage to a low-teen digit percentage on annual net sales of products. These royalty obligations last on a product-by-product and country-by-country basis until the latest of (i) the expiration of the last valid claim of a Novartis patent covering a subject product, (ii) the expiration of any regulatory exclusivity for the subject product in a country, or (iii) the 10 th As of March 31, 2021, none of the remaining clinical milestones, regulatory milestones, sales milestones, or royalties had been reached or were probable of achievement. National Institute of Health In May 2019, the Company was awarded a 5-year grant for up to $1.5 million from the National Institutes of Health (the “NIH”) to study RTB101 and the regulation of antiviral immunity in the elderly. The Company is entitled to use the award solely to conduct the research. The Company is solely responsible for commencing and conducting the research and will furnish periodic progress updates to the NIH throughout the term of the award. After completing the research, the Company must provide the NIH with a formal report describing the work performed and the results of the research. For funds received under the NIH funding agreement, the Company recognizes a reduction in research and development expenses in an amount equal to the qualifying expenses incurred in each period up to the amount funded by the NIH. Qualifying expenses incurred by the Company in advance of funding by the NIH are recorded in the consolidated balance sheets as other current assets. For the three months ended March 31, 2021, $0.2 million qualifying expenses have been incurred and $0.2 million have been funded by the NIH. On a cumulative basis as of March 31, 2021, $1.1 million has been incurred and $1.0 million has been funded by the NIH. |
Commitments and Contingences
Commitments and Contingences | 3 Months Ended |
Mar. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingences | 12. Commitments and Contingencies Operating Leases The Company leases office and laboratory space in Menlo Park, CA, Redwood City, CA, and Boston, MA. Rent expense recognized under all leases was $1.1 million and $0.2 million for the three months ended March 31, 2021 and 2020, respectively. There have been no material changes in lease obligation from those disclosed in Note 12 to consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. |
Common Stock
Common Stock | 3 Months Ended |
Mar. 31, 2021 | |
Stockholders Equity Note [Abstract] | |
Common Stock | 13. Common Stock The Company’s Certificate of Incorporation, as amended, authorized the Company to issue 150,000,000 shares of $0.0001 par value common stock as of December 31, 2020. Common stockholders are entitled to dividends if and when declared by the Board of Directors subject to the prior rights of the preferred stockholders. As of March 31, 2020 and December 31, 2020, no dividends on common stock had been declared by the Board of Directors. As of March 31, 2021, the Company’s outstanding warrants to purchase shares of common stock, consisted of the following: Issuance Date Number of Shares of Common Stock Issuable Exercise Price Classification Expiration Date September 15, 2020 101,610 $ 11.3177 Equity July 25, 2026 September 15, 2020 30,924 $ 11.3177 Equity August 21, 2026 September 15, 2020 77,312 $ 11.3177 Equity September 19, 2026 September 15, 2020 11,044 $ 11.3177 Equity September 26, 2026 220,890 The Company has the following shares of common stock reserved for future issuance: March 31, 2021 December 31, 2020 Stock options available for future grant 1,072,657 1,739,621 Stock options issued and outstanding 4,767,007 3,706,945 Common stock warrants issued and outstanding 220,890 226,191 Total 6,060,554 5,672,757 In February 2021, the Company completed an underwritten public offering of 10,575,513 shares of the Company’s common stock at a public offering price of $13.00 per share. The net proceeds from the offering, after deducting underwriting discounts and commissions and offering expenses were approximately $128.7 million. In connection with the offering, the Company also entered into a stock purchase agreement with certain existing investors for 1,153,840 shares of our common stock for $15.0 million at a price per share equal to the public offering price, with an initial closing for certain investors held simultaneously with the closing of the offering and a subsequent closing for certain additional investors. On March 12, 2021, we entered into a Sales Agreement (the 2021 Sales Agreement) with JonesTrading Institutional Services (the Agent), pursuant to which we could sell, from time to time, at our option, up to an aggregate of $75.0 million of shares of our common stock, through the Agent, as our sales agent. No shares were sold under the 2021 Sales Agreement. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 14. Stock-based Compensation A summary of stock option activity for the three months ended March 31, 2021 is set forth below: Ongoing Awards Number of Shares Available for Grant Number of Shares Underlying Outstanding Options Outstanding Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding, December 31, 2020 1,739,621 3,706,945 $ 10.90 7.98 $ 15,126 Options authorized 787,089 — Options granted (1,703,128 ) 1,703,128 $ 15.01 Options exercised — (393,991 ) $ 2.49 Options forfeited or cancelled 249,075 (249,075 ) $ 16.03 Outstanding, March 31, 2021 1,072,657 4,767,007 $ 12.79 8.48 9,050 Shares exercisable, March 31, 2021 1,098,515 $ 7.62 5.05 6,656 Vested and expected to vest, March 31, 2021 4,767,007 $ 12.79 8.48 9,050 Total stock-based compensation expense recognized was as follows (in thousands): Three Months Ended March 31, 2021 2020 Research and development $ 1,588 $ 86 General and administrative 1,455 213 Total stock-based compensation $ 3,043 $ 299 The assumptions used in the Black Scholes Model to calculate stock-based compensations are as follows: Three Months Ended March 31, 2021 2020 Fair value of common stock $8.33 - $11.39 $ 0.56 Expected term 5.9 - 6.1 6.0 Volatility 79.2% - 79.8% 72.6% - 72.7% Risk free rates 0.7% - 0.9% 1.68 % Dividend rate 0.0 % 0.0 % Summary of Plans The Company has 2014 Share Option Plan (the 2014 Plan), 2015 Stock Incentive Plan (the 2015 Plan), 2017 Stock Incentive Plan (the 2017 Plan), 2018 Stock Incentive Plan (the 2018 Plan), and 2018 Employee Stock Purchase Plan (the 2018 ESPP, and, collectively with the 2014 Plan, the 2015 Plan, the 2017 Plan and the 2018 Plan, the Plans). There have been no material changes in the Plans from those disclosed in Note 18 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. The 2017 Plan and 2018 Plan As of March 31, 2021, the number of shares of common stock available for grant under the 2017 and 2018 Plan is 1,071,489 shares. The 2014 Plan and 2015 Plan As of March 31, 2021, the number of shares of common stock available for grant under the 2014 and 2015 Plans is 1,168. As of , an aggregate of 1,893,506 shares of Former Adicet common stock were issuable upon the exercise of outstanding stock options under the 2015 plan at a weighted average exercise price of $9.19 per share and an aggregate of 22,987 shares of Former Adicet common stock were issuable upon the exercise of outstanding stock options under the 2014 Plan at a weighted average exercise price of $1.61 per share. 2018 Employee Stock Purchase Plan On January 1, 2021, as a result of the foregoing evergreen provision, the number of shares of common stock available for issuance under the 2018 ESPP automatically increased from 131,432 to 209,135 shares. No shares have been issued under the 2018 ESPP during the three months ended March 31, 2021. Inducement Grant As of March 31, 2021, an aggregate of 362,503 shares of were issuable upon the exercise of inducement grants of stock options approved by the Company in accordance with Nasdaq listing Rule 5635(c)(4) at a weighted average exercise price of $14.33 per share. |
Net Loss Per Share
Net Loss Per Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | 15. Net Loss per Share The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders, which excludes unvested restricted shares and shares which are legally outstanding, but subject to repurchase by the Company (in thousands, except share and per share data): Three Months Ended March 31, 2021 2020 Net loss attributable to common stockholders $ (21,319 ) $ (4,486 ) Weighted-average shares used in computing net loss per share attributable to common shareholders, basic and diluted 26,099,954 2,163,440 Net loss per share attributable to common stockholder, basic and diluted $ (0.82 ) $ (2.07 ) The following outstanding shares of potentially dilutive securities were excluded from the computation of diluted net loss per share attributable to common stockholders for the period presented because including them would have been antidilutive: As of March 31, 2021 2020 Redeemable convertible preferred stock — 12,048,671 Options to purchase common stock 4,767,007 1,847,518 Redeemable convertible preferred stock warrants — 220,890 Common stock warrants 220,890 — Total 4,987,897 14,117,079 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 16. Income Taxes The Company recorded an income tax benefit of $48,000 and $2.7 million during the three months ended March 31, 2021 and 2020, respectively. The income tax benefit during the three months ended March 31, 2021was due to the tax effect of the reduction in the deferred tax liability associated with the basis differences from IPR&D. In comparison, the income tax benefit during the three months ended March 31, 2020 was as a result of the recognition of net operating loss carryback under the CARES Act. The Company maintains a full valuation allowance against its deferred tax assets other than a deferred tax liability arising from Merger with resTORbio due to the Company’s history of losses as of March 31, 2021. The deferred tax liability recorded relates to the basis difference associated with IPR&D. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 17. Related Party As of March 31, 2021 and December 31, 2020, Regeneron owned 883,568 shares of the Company’s common stock, respectively. Regeneron became a related party in July 2019 as a result of Series B redeemable convertible preferred stock financing. For the three months ended March 31, 2021 and 2020, the Company recorded revenue from the Regeneron Agreement of $(4.0) million and $2.0 million, respectively. As of March 31, 2021, the Company recorded deferred revenue of $18.0 million related to the Regeneron Agreement. See Note 10 for a discussion of the Regeneron Agreement. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | 18. Subsequent Events On April 7, 2021, the Company entered into an agreement (the “Construction Agreement”), with CP Enterprises, Inc. d/b/a CP Construction (“CP Construction”) effective as of April 2, 2021 The Construction Agreement provides for pre-construction and construction services at the Company’s office and laboratory space at 1000 Bridge Parkway, Redwood City, California 94065 per the provisions previously agreed to in the First Amendment to the Lease, dated as of December 30, 2020. For these pre-construction and construction services, the Company will pay approximately $14 million of consideration to CP Construction through March 2022. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited interim consolidated financial statements and related disclosures have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). |
Unaudited Interim Financial Information | Unaudited Interim Financial Information The consolidated balance sheet as of December 31, 2020 was derived from the Company’s audited financial statements, but does not include all disclosures required by GAAP. The accompanying unaudited consolidated financial statements as of March 31, 2021 and for the three months ended March 31, 2021 and 2020, have been prepared by the Company, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”), for interim financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been or omitted pursuant to such rules and regulations. However, the Company believes that the disclosures are adequate to make the information presented not misleading. These consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto for the year ended December 31, 2020. In the opinion of management, all adjustments, consisting only of normal recurring adjustments necessary for a fair statement of the Company’s consolidated financial position as of March 31, 2021 and consolidated results of operations for the three months ended March 31, 2021 and 2020 and consolidated cash flows for the three months ended March 31, 2021 and 2020 have been made. The results of operations for the three months ended March 31, 2021 are not necessarily indicative of the results of operations that may be expected for the year ending December 31, 2021. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of cash and cash equivalents, and marketable debt securities. The Company’s cash and cash equivalents are held at two financial institutions in the U.S. and one financial institution in Israel and such amounts may, at times, exceed insured limits. The Company invests its cash equivalents and marketable debt securities in money market funds, U.S. government securities, commercial paper, corporate bonds, and asset-backed securities. The Company limits its credit risk associated with cash equivalents and marketable debt securities by placing them with banks and institutions it believes are highly creditworthy and in highly rated investments. The Company has not experienced any losses on its deposits of cash and cash equivalents and marketable debt securities to date. The Company has one customer, Regeneron Pharmaceuticals, Inc. (Regeneron), which represents 100% of the Company’s total revenue for the quarters ended March 31, 2021, and 2020 (see Note 10). |
Risks and Uncertainties | Risks and Uncertainties 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, 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, clinical trials, and regulatory approval, prior to commercialization. These efforts require significant amounts of additional capital, adequate personnel infrastructure and extensive compliance and reporting. The Company’s product candidates are still in development and, to date, none of the Company’s product candidates have been approved for sale and, therefore, the Company has not generated any revenue from product sales. 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 or maintained, 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 revenue from product sales. The Company operates in an environment of rapid change in technology and substantial competition from other pharmaceutical and biotechnology companies. The current COVID-19 (coronavirus) pandemic, which is impacting worldwide economic activity, poses risk that the Company or its employees, contractors, suppliers, and other partners may be prevented from conducting business activities for an indefinite period of time, including due to shutdowns that may be requested or mandated by governmental authorities. The extent to which the coronavirus impacts the Company’s operations will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the duration of the outbreak, new information that will emerge concerning the severity of the coronavirus and the actions to contain the coronavirus or treat its impact, among others. COVID-19 may impact the timing of regulatory approval of the investigational new drug ( INDs ) for clinical trials, the enrollment of any clinical trials that are approved, the availability of clinical trial materials and regulatory approval and commercialization of our products. COVID-19 may also impact the Company’s ability to access capital, which could negatively impact short-term and long-term liquidity . |
Recent Accounting Pronouncements | Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the FASB ASC or other standard setting bodies and adopted by the Company as of the specified effective date, unless otherwise discussed below. Recently Adopted Accounting Pronouncements In November 2018, FASB issued ASU 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction Between Topic 808 and Topic 606 Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. This ASU replaces the existing incurred loss impairment model with an expected loss model. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. These changes will result in earlier recognition of credit losses. For public business entities that meet the definition of a Securities and Exchange Commission (SEC) filer, excluding entities eligible to be smaller reporting companies as defined by the SEC, adoption is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. For SEC filers that are eligible to be smaller reporting companies and for all other entities, this ASU is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact the adoption of this ASU will have on its consolidated financial statements and related disclosures. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740)—Simplifying the Accounting for Income Taxes, which simplify various aspects related to the accounting for income taxes. This ASU removes exceptions to the general principles in Topic 740 related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. For public companies, this ASU is effective for interim and annual reporting periods beginning after December 15, 2020. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Early adoption is permitted. The Company is currently evaluating the impact the adoption of this ASU will have on its consolidated financial statements and related disclosures. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848) |
Business Combination (Tables)
Business Combination (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Schedule of Summarizes the Purchase Price in the Merger | The following summarizes the purchase price in the Merger (in thousands, except share and per share amounts): Fair value of common stock shares of the combined company owned by resTORbio stockholders (1) $ 84,142 Fair value of contingent consideration liability with respect to CVR (2) 2,880 Purchase price $ 87,022 |
Schedule of Estimated Share Consideration of Combined Company | (1) Represents the share consideration of the combined company that the resTORbio stockholders own as of the closing of the Merger calculated as follows: Number of shares of the combined company owned by resTORbio stockholders (a) 5,207,695 Multiplied by the fair value per share of resTORbio common stock (b) $ 16.59 Acquisition date fair value of resTORbio 86,396 Estimated fair value of modified stock options and restricted stock units attributable to pre-combination services (3) 626 Less: portion of the fair value to be distributed as CVR (c) (2,880 ) Fair value of shares of the combined company owned by resTORbio stockholders $ 84,142 |
Schedule of Summarizes the Allocation of the Purchase Price to the Net Tangible and Intangible Assets Acquired | The following summarizes the allocation of the purchase price to the net tangible and intangible assets acquired (in thousands): As of December 31, 2020 Measurement Period Adjustments As of March 31, 2021 Net assets acquired: Cash and cash equivalents $ 63,869 $ — $ 63,869 Prepaid expenses and other current assets 3,059 226 3,285 Property and equipment 318 — 318 IPR&D 3,490 — 3,490 Restricted cash 245 — 245 Accounts payable (1,316 ) — (1,316 ) Accrued and other current liabilities (2,365 ) — (2,365 ) Other liabilities — — — Deferred tax liability (367 ) — (367 ) Goodwill 20,089 (226 ) 19,863 Purchase price $ 87,022 $ — $ 87,022 |
Schedule of changes in the Company’s IPR&D and CVR since the Merger | The following tables present changes in the Company’s IPR&D and CVR since the Merger (in thousands): Acquisition Date Fair value as of September 15, 2020 Change in Fair value As of December 31, 2020 Change in Fair value As of March 31, 2021 In-process research and development $ 3,490 $ (2,300 ) $ 1,190 $ (460 ) $ 730 Contingent Value Rights $ 2,880 $ (1,900 ) $ 980 $ (380 ) $ 600 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Measured on Recurring Basis | The following tables present information about the Company’s financial assets and liabilities measured at fair value on a recurring basis and indicate the level of the fair value hierarchy utilized to determine such fair values (in thousands): March 31, 2021 Level 1 Level 2 Level 3 Total Assets: Money market funds (1) $ 204,946 $ — $ — $ 204,946 Corporate debt securities (2) — 1,753 — 1,753 Total fair value of assets $ 204,946 $ 1,753 $ — $ 206,699 Liabilities: Contingent consideration $ — $ — $ 600 $ 600 Total fair value of liabilities $ — $ — $ 600 $ 600 December 31, 2020 Level 1 Level 2 Level 3 Total Assets: Money market funds (1) $ 63,817 $ — $ — $ 63,817 Marketable debt securities Asset-backed securities — 7,522 — 7,522 Corporate debt securities — 1,762 — 1,762 Commercial paper — 1,000 — 1,000 Marketable debt securities — 10,284 — 10,284 Total fair value of assets $ 63,817 $ 10,284 $ — $ 74,101 Liabilities: Contingent consideration $ — $ — $ 980 $ 980 Total fair value of liabilities $ — $ — $ 980 $ 980 (1) Included in cash and cash equivalents in the consolidated balance sheets. (2) Included in short-term marketable debt security in the consolidated balance sheets. |
Marketable Debt Securities (Tab
Marketable Debt Securities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Marketable Debt Securities | The following table summarizes the Company’s marketable debt securities March 31, 2021 Amortized Cost Unrealized Losses Unrealized Gains Fair Value Corporate debt securities 1,751 — 2 1,753 Total $ 1,751 $ — $ 2 $ 1,753 December 31, 2020 Amortized Cost Unrealized Losses Unrealized Gains Fair Value Asset-backed securities $ 7,507 $ — $ 15 $ 7,522 Corporate debt securities 1,754 — 8 1,762 Commercial paper 999 — 1 1,000 Total $ 10,260 $ — $ 24 $ 10,284 |
Summary of Classification of Marketable Debt Securities in Condensed Consolidated Balance Sheets | The following table summarizes the classification of the Company’s marketable debt securities in the consolidated balance sheets (in thousands): March 31, December 31, 2021 2020 Short-term marketable debt securities 1,753 10,284 Long-term marketable debt securities — — Total $ 1,753 $ 10,284 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Prepaid Expense And Other Assets Current [Abstract] | |
Summary of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following (in thousands): March 31, 2021 December 31, 2020 Prepaid maintenance and other $ 1,732 $ 1,185 Prepaid insurance 1,039 1,443 Tax receivable 2,769 2,711 Interest receivable 22 20 Other current assets 124 363 Total prepaid expenses and other current assets $ 5,686 $ 5,722 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Summary of Property and Equipment, Net | Property and equipment, net consisted of the following (in thousands): Useful life (in years) March 31, 2021 December 31, 2020 Laboratory equipment 3 $ 4,419 $ 4,350 Leasehold improvements Lesser of useful life or lease term $ 1,427 $ 1,427 Furniture and fixtures 3 541 524 Construction in progress — 1,519 1,090 Computer equipment 3 104 93 Software 3 302 170 8,312 7,654 Less: Accumulated depreciation and amortization (5,190 ) (4,864 ) Property and equipment, net $ 3,122 $ 2,790 |
Accrued and Other Current Lia_2
Accrued and Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Payables And Accruals [Abstract] | |
Summary of Accrued and Other Current Liabilities | Accrued and other current liabilities consisted of the following (in thousands): March 31, 2021 December 31, 2020 Accrued compensation $ 2,043 $ 3,833 Accrued research and development expenses 1,333 1,187 Accrued professional services 821 386 Accrued other liabilities 30 326 Total accrued and other liabilities $ 4,227 $ 5,732 |
Regeneron License and Collabo_2
Regeneron License and Collaboration Arrangement (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Summary of Change in Company's Contract Liabilities | The following tables present changes in the Company’s contract liabilities for the three months ended March 31, 2021 and 2020 (in thousands): Three Months Ended March 31, 2021 Balance at beginning of period Additions Additions (Deductions) (1) Balance at end of period Contract liability $ 13,980 $ — $ 3,981 $ 17,961 Three Months Ended March 31, 2020 Balance at beginning of period Additions Additions (Deductions) (1) Balance at end of period Contract liability $ 21,883 $ — $ (2,000 ) $ 19,883 (1) |
Common Stock (Tables)
Common Stock (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Stockholders Equity Note [Abstract] | |
Schedule Of Outstanding Warrants To Purchase Shares of Common Stock | As of March 31, 2021, the Company’s outstanding warrants to purchase shares of common stock, consisted of the following: Issuance Date Number of Shares of Common Stock Issuable Exercise Price Classification Expiration Date September 15, 2020 101,610 $ 11.3177 Equity July 25, 2026 September 15, 2020 30,924 $ 11.3177 Equity August 21, 2026 September 15, 2020 77,312 $ 11.3177 Equity September 19, 2026 September 15, 2020 11,044 $ 11.3177 Equity September 26, 2026 220,890 |
Schedule of Number of Shares of Common Stock Reserved for Future Issuance | The Company has the following shares of common stock reserved for future issuance: March 31, 2021 December 31, 2020 Stock options available for future grant 1,072,657 1,739,621 Stock options issued and outstanding 4,767,007 3,706,945 Common stock warrants issued and outstanding 220,890 226,191 Total 6,060,554 5,672,757 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock Option Activity | A summary of stock option activity for the three months ended March 31, 2021 is set forth below: Ongoing Awards Number of Shares Available for Grant Number of Shares Underlying Outstanding Options Outstanding Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding, December 31, 2020 1,739,621 3,706,945 $ 10.90 7.98 $ 15,126 Options authorized 787,089 — Options granted (1,703,128 ) 1,703,128 $ 15.01 Options exercised — (393,991 ) $ 2.49 Options forfeited or cancelled 249,075 (249,075 ) $ 16.03 Outstanding, March 31, 2021 1,072,657 4,767,007 $ 12.79 8.48 9,050 Shares exercisable, March 31, 2021 1,098,515 $ 7.62 5.05 6,656 Vested and expected to vest, March 31, 2021 4,767,007 $ 12.79 8.48 9,050 |
Summary of Stock-Based Compensation Expense | Total stock-based compensation expense recognized was as follows (in thousands): Three Months Ended March 31, 2021 2020 Research and development $ 1,588 $ 86 General and administrative 1,455 213 Total stock-based compensation $ 3,043 $ 299 |
Schedule of Assumptions to Estimate Fair Value of Stock Options Using Black-Scholes Option Pricing Model | The assumptions used in the Black Scholes Model to calculate stock-based compensations are as follows: Three Months Ended March 31, 2021 2020 Fair value of common stock $8.33 - $11.39 $ 0.56 Expected term 5.9 - 6.1 6.0 Volatility 79.2% - 79.8% 72.6% - 72.7% Risk free rates 0.7% - 0.9% 1.68 % Dividend rate 0.0 % 0.0 % |
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 following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders, which excludes unvested restricted shares and shares which are legally outstanding, but subject to repurchase by the Company (in thousands, except share and per share data): Three Months Ended March 31, 2021 2020 Net loss attributable to common stockholders $ (21,319 ) $ (4,486 ) Weighted-average shares used in computing net loss per share attributable to common shareholders, basic and diluted 26,099,954 2,163,440 Net loss per share attributable to common stockholder, basic and diluted $ (0.82 ) $ (2.07 ) |
Schedule of Potentially Dilutive Securities Excluded from Computation of Diluted Net Loss Per Share | The following outstanding shares of potentially dilutive securities were excluded from the computation of diluted net loss per share attributable to common stockholders for the period presented because including them would have been antidilutive: As of March 31, 2021 2020 Redeemable convertible preferred stock — 12,048,671 Options to purchase common stock 4,767,007 1,847,518 Redeemable convertible preferred stock warrants — 220,890 Common stock warrants 220,890 — Total 4,987,897 14,117,079 |
Organization and Nature of the
Organization and Nature of the Business - Additional Information (Details) $ / shares in Units, $ in Thousands | Sep. 15, 2020 | Sep. 15, 2020 | Feb. 28, 2021USD ($)$ / sharesshares | Mar. 31, 2021USD ($)shares | Dec. 31, 2020USD ($)shares |
Schedule Of Equity Method Investments [Line Items] | |||||
Entity incorporation date | Nov. 30, 2014 | ||||
Entity date of merger | Apr. 28, 2020 | ||||
Equity method investment, Ownership percentage | 25.00% | ||||
Reverse stock split | 1-for-7 | 1-for-7 | |||
Exchange ratio | 0.1240 | ||||
Common stock, shares outstanding | shares | 31,802,399 | 19,677,249 | |||
Accumulated deficit | $ (127,644) | $ (106,325) | |||
Adicet Therapeutics [Member] | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Equity method investment, Ownership percentage | 75.00% | ||||
Common stock, shares outstanding | shares | 19,589,828 | ||||
Accumulated deficit | $ 127,600 | ||||
Initial Public Offering | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Number of common stock shares sold | shares | 10,575,513 | ||||
Issuance price per shares | $ / shares | $ 13 | ||||
Underwriting discounts and commissions and other offering expenses | $ 137,500 | ||||
Net proceeds received from offering | $ 15,000 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) - Customer | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Accounting Policies [Abstract] | ||
Number of Customer | 1 | 1 |
Customers percentage of total revenue | 100.00% | 100.00% |
Business Combination - Addition
Business Combination - Additional Information (Details) $ in Thousands | Sep. 15, 2020shares | Sep. 15, 2020shares | Apr. 28, 2020USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Business Acquisition [Line Items] | |||||
Percentage of outstanding capital stock | 75.00% | 75.00% | |||
Reverse stock split | 1-for-7 | 1-for-7 | |||
Goodwill | $ 19,863 | $ 20,089 | |||
Transition Agreement [Member] | |||||
Business Acquisition [Line Items] | |||||
Amount equal to pro-rated bonus | $ 212,000 | ||||
Lump sum payable | 250,000 | ||||
Payable upon closing of merger | 24,000 | ||||
Advisory services annual fee | 12,500 | ||||
resTORbio | |||||
Business Acquisition [Line Items] | |||||
Reverse stock split exchange ratio | 0.1240 | ||||
Number of shares of surviving stock options | shares | 81,370 | ||||
Unvested restricted stock units outstanding | shares | 91,309 | 91,309 | |||
Number of common stock shares sold | shares | 54,553 | ||||
Measurement prior adjustment in tangible and intangible assets | 200 | ||||
Goodwill | $ 19,863 | ||||
resTORbio | Transition Agreement [Member] | |||||
Business Acquisition [Line Items] | |||||
Cash payment | $ 470,000 | ||||
Expiration period closing of the merger | 60 days | ||||
resTORbio | Common Stock | |||||
Business Acquisition [Line Items] | |||||
Percentage of outstanding capital stock | 25.00% | 25.00% |
Business Combination - Schedule
Business Combination - Schedule of Summarizes the Purchase Price in the Merger (Details) - USD ($) $ in Thousands | Sep. 15, 2020 | Mar. 31, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | |||
Contingent consideration liability | $ 600 | $ 980 | |
resTORbio | |||
Business Acquisition [Line Items] | |||
Fair value of common stock shares of the combined company owned by resTORbio stockholders | $ 84,142 | ||
Contingent consideration liability | 2,880 | ||
Purchase price | $ 87,022 |
Business Combination - Schedu_2
Business Combination - Schedule of Estimated Share Consideration of Combined Company (Details) - resTORbio $ / shares in Units, $ in Thousands | Sep. 15, 2020USD ($)$ / sharesshares |
Business Acquisition [Line Items] | |
Number of shares of the combined company owned by resTORbio stockholders | shares | 5,207,695 |
Multiplied by the fair value per share of resTORbio common stock | $ / shares | $ 16.59 |
Acquisition date fair value of resTORbio | $ 86,396 |
Estimated fair value of modified stock options and restricted stock units attributable to pre-combination services | 626 |
Less: portion of the fair value to be distributed as CVR | (2,880) |
Fair value of common stock shares of the combined company owned by resTORbio stockholders | $ 84,142 |
Business Combination - Schedu_3
Business Combination - Schedule of Estimated Share Consideration of Combined Company (Parenthetical) (Details) | Sep. 15, 2020shares |
resTORbio | |
Business Acquisition [Line Items] | |
Number of shares of the combined company owned by resTORbio stockholders | 5,207,695 |
Business Combination - Schedu_4
Business Combination - Schedule of Summarizes the Purchase Price in the Merger (Parenthetical) (Details) - resTORbio | Sep. 15, 2020shares |
Business Acquisition [Line Items] | |
Unvested restricted stock units outstanding | 91,309 |
Number of common stock shares sold | 54,553 |
Number of shares of surviving stock options | 81,370 |
Business Combination - Schedu_5
Business Combination - Schedule of Summarizes the Allocation of the Purchase Price to the Net Tangible and Intangible Assets Acquired (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Net assets acquired: | ||
Goodwill | $ 19,863 | $ 20,089 |
resTORbio | ||
Net assets acquired: | ||
Cash and cash equivalents | 63,869 | |
Prepaid expenses and other current assets | 3,285 | |
Property and equipment | 318 | |
IPR&D | 3,490 | |
Restricted cash | 245 | |
Accounts payable | (1,316) | |
Accrued and other current liabilities | (2,365) | |
Deferred tax liability | (367) | |
Goodwill | 19,863 | |
Purchase price | 87,022 | |
resTORbio | Preliminary | ||
Net assets acquired: | ||
Cash and cash equivalents | 63,869 | |
Prepaid expenses and other current assets | 3,059 | |
Property and equipment | 318 | |
IPR&D | 3,490 | |
Restricted cash | 245 | |
Accounts payable | (1,316) | |
Accrued and other current liabilities | (2,365) | |
Deferred tax liability | (367) | |
Goodwill | 20,089 | |
Purchase price | $ 87,022 | |
resTORbio | Measurement Period Adjustments | ||
Net assets acquired: | ||
Prepaid expenses and other current assets | 226 | |
Goodwill | $ (226) |
Business Combination - Schedu_6
Business Combination - Schedule of changes in the Company's IPR&D and CVR since the Merger (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 15, 2020 |
In Process Research and Development | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Fair value | $ 730 | $ 1,190 | $ 3,490 |
In Process Research and Development | Change in Fair Value | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Fair value | (460) | (2,300) | |
Contingent Value Rights Agreement | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Fair value | 600 | 980 | $ 2,880 |
Contingent Value Rights Agreement | Change in Fair Value | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Fair value | $ (380) | $ (1,900) |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Assets and Liabilities Measured on Recurring Basis (Details) - Fair Value, Recurring - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Total fair value of assets | $ 206,699 | $ 74,101 | |
Total fair value of liabilities | 600 | 980 | |
Corporate Debt Securities | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Total fair value of assets | 1,753 | [1] | 1,762 |
Contingent Consideration | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Total fair value of liabilities | 600 | 980 | |
Asset-backed Securities | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Total fair value of assets | 7,522 | ||
Marketable Securities | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Total fair value of assets | 10,284 | ||
Fair Value, Inputs, Level 1 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Total fair value of assets | 204,946 | 63,817 | |
Fair Value, Inputs, Level 2 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Total fair value of assets | 1,753 | 10,284 | |
Fair Value, Inputs, Level 2 | Corporate Debt Securities | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Total fair value of assets | 1,753 | [1] | 1,762 |
Fair Value, Inputs, Level 2 | Asset-backed Securities | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Total fair value of assets | 7,522 | ||
Fair Value, Inputs, Level 2 | Marketable Securities | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Total fair value of assets | 10,284 | ||
Fair Value, Inputs, Level 3 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Total fair value of liabilities | 600 | 980 | |
Fair Value, Inputs, Level 3 | Contingent Consideration | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Total fair value of liabilities | 600 | 980 | |
Money Market Funds | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Total fair value of assets | 204,946 | [2] | 63,817 |
Money Market Funds | Fair Value, Inputs, Level 1 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Total fair value of assets | $ 204,946 | [2] | 63,817 |
Commercial Paper | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Total fair value of assets | 1,000 | ||
Commercial Paper | Fair Value, Inputs, Level 2 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Total fair value of assets | $ 1,000 | ||
[1] | Included in short-term marketable debt security in the consolidated balance sheets. | ||
[2] | Included in cash and cash equivalents in the consolidated balance sheets |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Fair Value Disclosures [Abstract] | |
Increase decrease in estimated fair value of CVR liability | $ 0.4 |
Estimated fair value of the CVR liability | $ 0.6 |
Marketable Debt Securities - Sc
Marketable Debt Securities - Schedule of Marketable Debt Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Marketable Securities [Line Items] | ||
Amortized Cost | $ 1,751 | $ 10,260 |
Unrealized Gains | 2 | 24 |
Fair Value | 1,753 | 10,284 |
Corporate Debt Securities | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 1,751 | 1,754 |
Unrealized Gains | 2 | 8 |
Fair Value | $ 1,753 | 1,762 |
Asset Backed Securities | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 7,507 | |
Unrealized Gains | 15 | |
Fair Value | 7,522 | |
Commercial Paper | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 999 | |
Unrealized Gains | 1 | |
Fair Value | $ 1,000 |
Marketable Debt Securities - Su
Marketable Debt Securities - Summary of Classification of Marketable Debt Securities in Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Investments Debt And Equity Securities [Abstract] | ||
Short-term marketable debt securities | $ 1,753 | $ 10,284 |
Marketable debt securities | $ 1,753 | $ 10,284 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets - Summary of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Prepaid Expense And Other Assets Current [Abstract] | ||
Prepaid maintenance and other | $ 1,732 | $ 1,185 |
Prepaid insurance | 1,039 | 1,443 |
Tax receivable | 2,769 | 2,711 |
Interest receivable | 22 | 20 |
Other current assets | 124 | 363 |
Total prepaid expenses and other current assets | $ 5,686 | $ 5,722 |
Property and Equipment, Net - S
Property and Equipment, Net - Summary of Property and Equipment, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 8,312 | $ 7,654 |
Less: Accumulated depreciation and amortization | (5,190) | (4,864) |
Property and equipment, net | 3,122 | 2,790 |
Laboratory Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 4,419 | 4,350 |
Useful life (in years) | 3 years | |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 1,427 | 1,427 |
Useful life (in years) | Lesser of useful life or lease term | |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 541 | 524 |
Useful life (in years) | 3 years | |
Construction In Progress | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 1,519 | 1,090 |
Computer Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 104 | 93 |
Useful life (in years) | 3 years | |
Software | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 302 | $ 170 |
Useful life (in years) | 3 years |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Property Plant And Equipment [Abstract] | ||
Depreciation and amortization expense | $ 326 | $ 313 |
Accrued and Other Current Lia_3
Accrued and Other Current Liabilities - Summary of Accrued and Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Payables And Accruals [Abstract] | ||
Accrued compensation | $ 2,043 | $ 3,833 |
Accrued research and development expenses | 1,333 | 1,187 |
Accrued professional services | 821 | 386 |
Accrued other liabilities | 30 | 326 |
Total accrued and other liabilities | $ 4,227 | $ 5,732 |
Term Loan - Additional Informat
Term Loan - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Apr. 28, 2020 | |
Class Of Warrant Or Right [Line Items] | ||
Interest rate for term loan to finance leasehold improvements | 5.00% | |
Loan availability end date | Oct. 28, 2021 | |
Loan amount drawn | $ 0 | |
Deferred debt issuance cost | 100,000 | |
Incremental expense | 0 | |
Debt issuance costs, gross | $ 200,000 | |
Common Stock | ||
Class Of Warrant Or Right [Line Items] | ||
Number of securities called | 5,301 | |
Number of net issuance on shares | 1,806 | |
Series B Convertible Preferred Stock [ Member ] | ||
Class Of Warrant Or Right [Line Items] | ||
Warrant exercise price | $ 1.4034 | |
Number of securities called | 42,753 | |
Maximum | ||
Class Of Warrant Or Right [Line Items] | ||
Term loan to finance leasehold improvements | $ 12,000,000 | |
Maximum | Common Stock | ||
Class Of Warrant Or Right [Line Items] | ||
Number of additional securities called | 15,903 | |
Minimum [Member] | Prime Rate | ||
Class Of Warrant Or Right [Line Items] | ||
Interest rate for term loan to finance leasehold improvements | 0.25% |
Regeneron License and Collabo_3
Regeneron License and Collaboration Arrangement - Additional Information (Details) - Regeneron Pharmaceuticals, Inc. - USD ($) $ in Millions | Jul. 29, 2016 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2020 | Dec. 31, 2018 | Dec. 31, 2017 |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||
Non refundable upfront payment received | $ 25 | |||||||
Additional payment for research funding received | $ 20 | $ 5 | $ 5 | |||||
License agreement termination description | twelve years | |||||||
Contract research term period | 5 years | |||||||
Upfront payment | $ 25 | $ 25 | $ 25 | |||||
Licence agreement cumulative revenue recognised | 27 | $ 5 | 15.1 | $ 10 | ||||
License agreement cumulative revenue reduction recognised | $ 6.6 | |||||||
Increase in estimated transaction price | $ 10 | |||||||
Contract liability | 18 | 19.9 | ||||||
Change in Accounting Estimate | ||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||
License agreement cumulative revenue reduction recognised | $ 4 | |||||||
Maximum | ||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||
Licence agreement additional amount payable of option exercise fees | $ 100 |
Regeneron License and Collabo_4
Regeneron License and Collaboration Arrangement - Summary of Change in Company's Contract Liabilities (Details) - Contract Liability - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||
Balance at beginning of period | $ 13,980 | $ 21,883 | |
Additions (Deductions) (1) | [1] | 3,981 | (2,000) |
Balance at end of period | $ 17,961 | $ 19,883 | |
[1] | Deductions to contract liabilities relate to deferred revenue recognized as revenue during the reporting period. |
License Funding and Other Agr_2
License Funding and Other Agreements Related to the CVR - Additional Information (Details) - USD ($) $ in Millions | Oct. 31, 2020 | Feb. 28, 2021 | Nov. 30, 2020 | May 31, 2019 | Mar. 31, 2021 | Mar. 23, 2017 |
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||||||
Increase decrease in estimated fair value of CVR liability | $ 0.4 | |||||
Estimated fair value of the CVR liability | 0.6 | |||||
National Institute of Health | ||||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||||||
Grant term | 5 years | |||||
Grants receivable | $ 1.5 | |||||
Qualifying expenses | 0.2 | |||||
Qualifying expenses on cumulative basis | 1 | |||||
National Institute of Health | Funding Agreement | ||||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||||||
Qualifying expenses | 0.2 | |||||
Qualifying expenses on cumulative basis | 1.1 | |||||
Contingent Value Rights Agreement | C O V I D19 | ||||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||||||
Total fees and expenses related to clinical trials | $ 1.1 | $ 3 | ||||
Post Exposure Prophylaxis in adults | In February 2021, management terminated the National Institute on Aging study of RTB101 for COVID-19 post-exposure prophylaxis in adults age 65 years and older due to poor enrollment | |||||
Increase decrease in estimated fair value of CVR liability | $ 0.4 | |||||
Estimated fair value of the CVR liability | $ 0.6 | |||||
Novartis License Agreement | Novartis International Pharmaceutical Ltd. | ||||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||||||
License agreement termination description | The agreement may be terminated by either party upon a material breach of obligation by the other party that is not cured with 60 days after written notice. resTORbio may terminate the agreement in its entirety or on a product-by-product or country-by-country basis with or without cause with 60 days’ prior written notice. | |||||
Novartis License Agreement | Novartis International Pharmaceutical Ltd. | Maximum | ||||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||||||
Aggregate amount payable upon satisfaction of clinical milestones | $ 4.3 | |||||
Aggregate amount payable upon satisfaction of regulatory milestones for first indication approved | 24 | |||||
Aggregate amount payable upon satisfaction of regulatory milestones for second indication approved | 18 | |||||
Aggregate amount payable upon satisfaction of commercial milestones | $ 125 |
Commitment and Contingencies -
Commitment and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Long Term Purchase Commitment [Line Items] | ||
Rent expense recognized | $ 0.2 | |
Topic 842 | ||
Long Term Purchase Commitment [Line Items] | ||
Rent expense recognized | $ 1.1 |
Common Stock - Additional Infor
Common Stock - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | Mar. 12, 2021 | Feb. 28, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Class Of Stock [Line Items] | ||||
Common stock, shares authorized | 1,153,840 | 150,000,000 | 150,000,000 | |
Common stock shares issued, par value | $ 0.0001 | $ 0.0001 | ||
Common stock, shares authorized | 1,153,840 | 150,000,000 | 150,000,000 | |
Initial Public Offering | ||||
Class Of Stock [Line Items] | ||||
Number of common stock shares sold | 10,575,513 | |||
Issuance price per shares | $ 13 | |||
Net proceeds from public offering, after deducting underwriting discounts and commissions and offering expenses | $ 128.7 | |||
Net proceeds received from offering | $ 15 | |||
At The Market Offering [Member] | Maximum | 2021 Sales Agreement | ||||
Class Of Stock [Line Items] | ||||
Stock Issued During Period, Value, New Issues | $ 75 |
Common Stock - Schedule of Outs
Common Stock - Schedule of Outstanding Warrants to Purchase Shares of Common Stock (Details) | 3 Months Ended |
Mar. 31, 2021$ / sharesshares | |
Class Of Stock [Line Items] | |
Number of Shares of Common Stock Issuable | 220,890 |
September 15, 2020 Warrant One | |
Class Of Stock [Line Items] | |
Issuance Date | Sep. 15, 2020 |
Number of Shares of Common Stock Issuable | 101,610 |
Warrant exercise price | $ / shares | $ 11.3177 |
Expiration Date | Jul. 25, 2026 |
September 15, 2020 Warrant Two | |
Class Of Stock [Line Items] | |
Issuance Date | Sep. 15, 2020 |
Number of Shares of Common Stock Issuable | 30,924 |
Warrant exercise price | $ / shares | $ 11.3177 |
Expiration Date | Aug. 21, 2026 |
September 15, 2020 Warrant Three | |
Class Of Stock [Line Items] | |
Issuance Date | Sep. 15, 2020 |
Number of Shares of Common Stock Issuable | 77,312 |
Warrant exercise price | $ / shares | $ 11.3177 |
Expiration Date | Sep. 19, 2026 |
September 15, 2020 Warrant Four | |
Class Of Stock [Line Items] | |
Issuance Date | Sep. 15, 2020 |
Number of Shares of Common Stock Issuable | 11,044 |
Warrant exercise price | $ / shares | $ 11.3177 |
Expiration Date | Sep. 26, 2026 |
Common Stock - Schedule of Numb
Common Stock - Schedule of Number of Shares of Common Stock Reserved for Future Issuance (Details) - shares | Mar. 31, 2021 | Dec. 31, 2020 |
Class Of Stock [Line Items] | ||
Number of shares of common stock reserved for future issuance | 6,060,554 | 5,672,757 |
Stock Options Available for Future Grant | ||
Class Of Stock [Line Items] | ||
Number of shares of common stock reserved for future issuance | 1,072,657 | 1,739,621 |
Options Issued and Outstanding | ||
Class Of Stock [Line Items] | ||
Number of shares of common stock reserved for future issuance | 4,767,007 | 3,706,945 |
Common Stock Warrants | ||
Class Of Stock [Line Items] | ||
Number of shares of common stock reserved for future issuance | 220,890 | 226,191 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Share Based Compensation [Abstract] | ||
Number of Shares Available for Grant, Begining balance | 1,739,621 | |
Number of Shares Available for Grant, Options authorized | 787,089 | |
Number of Shares Available for Grant, Options granted | (1,703,128) | |
Number of Shares Available for Grant, Options forfeited or cancelled | 249,075 | |
Number of Shares Available for Grant, Ending balance | 1,072,657 | 1,739,621 |
Number of Shares Underlying Outstanding Options, Beginning balance | 3,706,945 | |
Number of Shares Underlying Outstanding Options, Options granted | 1,703,128 | |
Number of Shares Underlying Outstanding Options, Options exercised | (393,991) | |
Number of Shares Underlying Outstanding Options, Options forfeited or cancelled | (249,075) | |
Number of Shares Underlying Outstanding Options, Ending balance | 4,767,007 | 3,706,945 |
Number of Shares Underlying Outstanding Options, Shares exercisable | 1,098,515 | |
Number of Shares Underlying Outstanding Options, Vested and expected to vest | 4,767,007 | |
Weighted-Average Exercise Price, Outstanding beginning | $ 10.90 | |
Weighted-Average Exercise Price, Options granted | 15.01 | |
Weighted-Average Exercise Price, Options exercised | 2.49 | |
Weighted-Average Exercise Price, Options forfeited or cancelled | 16.03 | |
Weighted-Average Exercise Price, Outstanding ending | 12.79 | $ 10.90 |
Weighted-Average Exercise Price, Shares exercisable | 7.62 | |
Weighted-Average Exercise Price, Vested and expected to vest | $ 12.79 | |
Weighted-Average Remaining Contract Term, Outstanding | 8 years 5 months 23 days | 7 years 11 months 23 days |
Weighted-Average Remaining Contract Term, Shares exercisable | 5 years 18 days | |
Weighted-Average Remaining Contract Term, Vested and expected to vest | 8 years 5 months 23 days | |
Aggregate Intrinsic Value, Outstanding | $ 9,050 | $ 15,126 |
Aggregate Intrinsic Value, Shares exercisable | 6,656 | |
Aggregate Intrinsic Value, Vested and expected to vest | $ 9,050 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 3,043 | $ 299 |
Research and Development | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total stock-based compensation expense | 1,588 | 86 |
General and Administrative | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 1,455 | $ 213 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Assumptions to Estimate Fair Value of Stock Options Using Black-Scholes Option Pricing Model (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected volatility, minimum | 79.20% | 72.60% |
Expected volatility, maximum | 79.80% | 72.70% |
Risk free rates, minimum | 0.70% | 1.68% |
Risk free rates, maximum | 0.90% | |
Dividend rate | 0.00% | 0.00% |
Minimum [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Fair value of common stock | $ 8.33 | $ 0.56 |
Expected term | 5 years 10 months 24 days | 6 years |
Maximum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Fair value of common stock | $ 11.39 | |
Expected term | 6 years 1 month 6 days |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - $ / shares | Jan. 01, 2021 | Jan. 01, 2020 | Mar. 31, 2021 | Dec. 31, 2020 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares of common stock available for grant | 1,072,657 | 1,739,621 | ||
Number of shares reserved for issuance | 362,503 | |||
Weighted-Average Exercise Price, Options exercised | $ 2.49 | |||
2017 and 2018 Stock Incentive Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares of common stock available for grant | 1,071,489 | |||
Number of shares reserved for issuance | 2,488,011 | |||
Weighted-Average Exercise Price, Options exercised | $ 15.42 | |||
2014 Stock Incentive Plan Member | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares reserved for issuance | 22,987 | |||
Weighted-Average Exercise Price, Options exercised | $ 1.61 | |||
2015 Stock Incentive Plan Member | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares reserved for issuance | 1,893,506 | |||
Weighted-Average Exercise Price, Options exercised | $ 9.19 | |||
2017 and 2018 Stock Incentive Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares of common stock available for grant | 1,168 | |||
2018 Employee Stock Purchase Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of additional shares reserved for issuance | 209,135 | 131,432 | ||
Number of shares available for sale under employee stock purchase plan | 0 | |||
Inducement Grant | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Weighted-Average Exercise Price, Options exercised | $ 14.33 |
Net Loss Per Share - Schedule o
Net Loss Per Share - Schedule of Basic and Diluted Net Loss Per Share Attributable to Common Stockholders (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Net loss attributable to common stockholders | $ (21,319) | $ (4,486) |
Weighted-average common shares used in computing net loss per share attributable to common stockholders, basic and diluted | 26,099,954 | 2,163,440 |
Net loss per share attributable to common stockholders, basic and diluted | $ (0.82) | $ (2.07) |
Net Loss Per Share - Schedule_2
Net Loss Per Share - Schedule of Potentially Dilutive Securities Excluded from Computation of Diluted Net Loss Per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 4,987,897 | 14,117,079 |
Options To Purchase Common Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 4,767,007 | 1,847,518 |
Common Stock Warrants | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 220,890 | |
Redeemable Convertible Preferred Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 12,048,671 | |
Redeemable Convertible Preferred Stock Warrants | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 220,890 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Taxes Disclosure [Line Items] | ||
Income tax expense (benefit) | $ (48) | $ (2,679) |
COVID-19 | ||
Income Taxes Disclosure [Line Items] | ||
Income tax expense (benefit) | $ (48,000) | $ 2,700 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |||
Redeemable convertible preferred stock | 0 | 0 | |
Revenue—related party | $ (3,981) | $ 2,000 | |
Regeneron Pharmaceuticals, Inc. | |||
Related Party Transaction [Line Items] | |||
Revenue—related party | 4,000 | $ 2,000 | |
Deferred revenue | $ 18,000 | ||
Regeneron Pharmaceuticals, Inc. | Series B Convertible Preferred Stock [ Member ] | |||
Related Party Transaction [Line Items] | |||
Redeemable convertible preferred stock | 883,568 | 883,568 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) $ in Millions | Apr. 07, 2021USD ($) |
CP Construction [Member] | Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Lease Cost | $ 14 |