Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 06, 2020 | Jun. 30, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Registrant Name | Mirum Pharmaceuticals, Inc. | ||
Entity Central Index Key | 0001759425 | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Interactive Data Current | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Public Float | $ 0 | ||
Entity Common Stock, Shares Outstanding | 25,389,987 | ||
Entity Shell Company | false | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | true | ||
Entity File Number | 001-38981 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 83-1281555 | ||
Entity Address, Address Line One | 950 Tower Lane, Suite 1050, | ||
Entity Address, City or Town | Foster City | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94404 | ||
City Area Code | 650 | ||
Local Phone Number | 667-4085 | ||
Document Transition Report | false | ||
Document Annual Report | true | ||
Title of 12(b) Security | Common stock | ||
Trading Symbol | MIRM | ||
Security Exchange Name | NASDAQ | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the Registrant’s definitive proxy statement for its 2020 Annual Meeting of Stockholders, which the Registrant intends to file pursuant to Regulation 14A with the Securities and Exchange Commission not later than 120 days after the Registrant’s fiscal year ended December 31, 2019, are incorporated by reference into Part III of this Annual Report on Form 10-K. |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 11,970 | $ 51,963 |
Short-term investments | 104,690 | |
Prepaid expenses and other current assets | 2,703 | 12 |
Total current assets | 119,363 | 51,975 |
Long-term investments | 23,292 | |
Property and equipment, net | 1,372 | 0 |
Operating lease right-of-use assets | 2,361 | |
Other assets | 324 | |
Total assets | 146,712 | 51,975 |
Current liabilities: | ||
Accounts payable | 3,351 | 269 |
Accrued expenses | 9,328 | 2,180 |
Operating lease liabilities | 397 | |
Total current liabilities | 13,076 | 2,449 |
Operating lease liabilities, noncurrent | 3,251 | |
Other liabilities | 36 | |
Total liabilities | 16,363 | 2,449 |
Commitments and contingencies | 0 | |
Stockholders’ equity (deficit): | ||
Preferred stock, $0.0001 par value; 10,000,000 and zero shares authorized as of December 31, 2019 and 2018, respectively; zero shares issued and outstanding as of December 31, 2019 and 2018, respectively; and liquidation value of $0 as of December 31, 2019 and 2018, respectively | 0 | |
Common stock, $0.0001 par value; 200,000,000 and 180,000,000 shares authorized as of December 31, 2019 and 2018, respectively; 22,989,987 shares issued and 22,600,338 shares outstanding, excluding 389,649 shares subject to repurchase as of December 31, 2019; and 1,187,500 shares issued and 636,719 shares outstanding, excluding 550,781 shares subject to repurchase as of December 31, 2018 | 2 | 1 |
Additional paid-in capital | 200,119 | 34 |
Accumulated deficit | (69,901) | (17,348) |
Accumulated other comprehensive income | 129 | |
Total stockholders’ equity (deficit) | 130,349 | (17,313) |
Total liabilities, redeemable convertible preferred stock, redeemable common stock and stockholders’ equity (deficit) | 146,712 | 51,975 |
Series A Redeemable Convertible Preferred Stock | ||
Temporary equity: | ||
Redeemable stock | 0 | 59,849 |
Redeemable Common Stock | ||
Temporary equity: | ||
Redeemable stock | $ 0 | $ 6,990 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000,000 | 0 |
Preferred stock, shares, issued | 0 | 0 |
Preferred stock, shares, outstanding | 0 | 0 |
Preferred stock, liquidation preference | $ 0 | $ 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 200,000,000 | 180,000,000 |
Common stock, shares, issued | 22,989,987 | 1,187,500 |
Common stock, shares, outstanding | 22,600,338 | 636,719 |
Common stock, subject to repurchase | 389,649 | 550,781 |
Series A Redeemable Convertible Preferred Stock | ||
Temporary equity, par value | $ 0.0001 | $ 0.0001 |
Temporary equity, shares authorized | 0 | 120,000,000 |
Temporary equity, shares issued | 0 | 59,908,284 |
Temporary equity, shares outstanding | 0 | 59,908,284 |
Temporary equity, liquidation preference | $ 0 | $ 60,064 |
Redeemable Common Stock | ||
Temporary equity, par value | $ 0.0001 | $ 0.0001 |
Temporary equity, shares issued | 0 | 1,859,151 |
Temporary equity, shares outstanding | 0 | 1,859,151 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 8 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Dec. 31, 2019 | |
Operating expenses: | ||
Research and development | $ 2,331,000 | $ 42,991,000 |
In process research and development | 14,490,000 | 0 |
General and administrative | 585,000 | 11,752,000 |
Total operating expenses | 17,406,000 | 54,743,000 |
Loss from operations | (17,406,000) | (54,743,000) |
Other income (expense): | ||
Interest income | 72,000 | 2,232,000 |
Other income (expense), net | (14,000) | (21,000) |
Net loss before provision for income taxes | (17,348,000) | (52,532,000) |
Provision for income taxes | 0 | 21,000 |
Net Loss | $ (17,348,000) | $ (52,553,000) |
Net loss per share, basic and diluted | $ (19.29) | $ (4.58) |
Weighted-average shares of common stock outstanding, basic and diluted | 899,331 | 11,486,367 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 8 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Dec. 31, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net loss | $ (17,348) | $ (52,553) |
Other comprehensive gain (loss): | ||
Unrealized gain on available-for-sale investments | 0 | 156 |
Cumulative translation adjustments | 0 | (27) |
Comprehensive loss | $ (17,348) | $ (52,424) |
Consolidated Statements of Rede
Consolidated Statements of Redeemable Convertible Preferred Stock, Redeemable Common Stock and Stock Holders' Equity (Deficit) - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Income | Series A Redeemable Convertible Preferred Stock | Redeemable Common Stock |
Balance at May. 02, 2018 | $ 0 | $ 0 | ||||||
Balance, Shares at May. 02, 2018 | 0 | 0 | ||||||
Balance at May. 02, 2018 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||
Balance, Shares at May. 02, 2018 | 0 | 0 | ||||||
Issuance of common stock | 1 | $ 1 | ||||||
Issuance of common stock, Shares | 625,000 | |||||||
Restricted common stock vested in the period | 11,719 | |||||||
Issuance of Series A redeemable convertible preferred stock, net of issuance costs | $ 59,785 | |||||||
Issuance of Series A redeemable convertible preferred stock, net of issuance costs, Shares | 59,844,699 | |||||||
Shares issued in connection with asset acquisition | $ 6,990 | |||||||
Shares issued in connection with asset acquisition, Shares | 1,859,151 | |||||||
Conversion of convertible notes and accrued interest to preferred stock | $ 64 | |||||||
Conversion of convertible notes and accrued interest to preferred stock, Shares | 63,585 | |||||||
Stock-based compensation | 34 | 34 | ||||||
Net loss | (17,348) | (17,348) | ||||||
Balance at Dec. 31, 2018 | $ 59,849 | $ 6,990 | ||||||
Balance, Shares at Dec. 31, 2018 | 59,908,284 | 1,859,151 | ||||||
Balance at Dec. 31, 2018 | (17,313) | $ 1 | 34 | (17,348) | ||||
Balance, Shares at Dec. 31, 2018 | 636,719 | |||||||
Issuance of common stock | 67,200 | 67,200 | ||||||
Issuance of common stock, Shares | 5,000,000 | |||||||
Restricted common stock vested in the period | 135,350 | |||||||
Issuance of Series A redeemable convertible preferred stock, net of issuance costs | $ 59,977 | |||||||
Issuance of Series A redeemable convertible preferred stock, net of issuance costs, Shares | 59,844,699 | |||||||
Conversion of Series A redeemable convertible preferred stock into common stock on initial public offering | 119,826 | $ 1 | 119,825 | $ (119,826) | ||||
Conversion of Series A redeemable convertible preferred stock into common stock on initial public offering, Shares | 14,969,118 | (119,752,983) | ||||||
Reclassification of redeemable common stock into common stock on initial public offering | 6,990 | 6,990 | $ (6,990) | |||||
Reclassification of redeemable common stock into common stock on initial public offering, Shares | 1,859,151 | (1,859,151) | ||||||
Stock-based compensation | 6,070 | 6,070 | ||||||
Net loss | (52,553) | (52,553) | ||||||
Other comprehensive income | 129 | 129 | ||||||
Balance at Dec. 31, 2019 | $ 0 | $ 0 | ||||||
Balance, Shares at Dec. 31, 2019 | 0 | 0 | ||||||
Balance at Dec. 31, 2019 | $ 130,349 | $ 2 | $ 200,119 | $ (69,901) | $ 129 | |||
Balance, Shares at Dec. 31, 2019 | 22,600,338 |
Consolidated Statements of Re_2
Consolidated Statements of Redeemable Convertible Preferred Stock, Redeemable Common Stock and Stock Holders' Equity (Deficit) (Parenthetical) - USD ($) $ in Thousands | 8 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Dec. 31, 2019 | |
Series A Redeemable Convertible Preferred Stock | ||
Issuance of stock at per share | $ 1.00259507 | $ 1.00259507 |
Issuance of Series A redeemable convertible preferred stock, issuance costs | $ 215 | $ 23 |
Common Stock | ||
Issuance of common stock upon initial public offering, issuance costs | $ 7,800 | |
Shares issued, price per share | $ 0.0001 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 8 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Dec. 31, 2019 | |
Operating activities | ||
Net loss | $ (17,348) | $ (52,553) |
Reconciliation of net loss to net cash used in operating activities: | ||
Stock-based compensation | 34 | 6,070 |
Interest expense on convertible note | 14 | 0 |
In process research and development | 14,490 | 0 |
Depreciation and amortization | 0 | 139 |
Amortization of operating lease right-of-use assets | 0 | 185 |
Net accretion of discounts on investments | 0 | (326) |
Change in operating assets and liabilities: | ||
Prepaid and other current assets | (12) | (2,691) |
Operating lease right-of-use assets | 0 | (33) |
Other assets | 0 | (160) |
Accounts payable, accrued expenses and other liabilities | 2,449 | 10,058 |
Operating lease liabilities | 0 | (51) |
Net cash used in operating activities | (373) | (39,362) |
Investing activities | ||
Research and development asset acquisition | (7,500) | 0 |
Purchase of investments | 0 | (152,000) |
Proceeds from maturities of investments | 0 | 24,500 |
Purchase of property and equipment | 0 | (281) |
Net cash used in investing activities | (7,500) | (127,781) |
Financing activities | ||
Proceeds from convertible note, related party | 50 | 0 |
Proceeds from the sale of common stock | 1 | 0 |
Proceeds from the issuance of Series A redeemable convertible preferred stock, net of issuance costs | 59,785 | 59,977 |
Proceeds from issuance of common stock in initial public offering, net of issuance costs | 0 | 67,200 |
Net cash provided by financing activities | 59,836 | 127,177 |
Effect of exchange rate on cash and cash equivalents | 0 | (27) |
Net (decrease) increase in cash and cash equivalents | 51,963 | (39,993) |
Cash and cash equivalents at beginning of period | 0 | 51,963 |
Cash and cash equivalents at end of period | 51,963 | 11,970 |
Supplemental disclosure of cash flow information: | ||
Operating cash flows paid for operating lease | 0 | 170 |
Noncash investing and financing activities: | ||
Operating lease right-of-use asset obtained in exchange for operating lease liability | 0 | 3,700 |
Landlord paid tenant improvements | 0 | 1,231 |
Deferred public offering costs included in accrued liabilities | 0 | 164 |
Conversion of Series A redeemable convertible preferred stock into common stock on initial public offering | 0 | 119,826 |
Reclassification of redeemable common stock into common stock on initial public offering | 0 | 6,990 |
Common stock issued in connection with asset acquisition | 6,990 | 0 |
Conversion of convertible note to preferred stock | $ 64 | $ 0 |
Organization and Description of
Organization and Description of Business | 12 Months Ended |
Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Description of Business | 1. Organization and Description of Business Mirum Pharmaceuticals, Inc. (the “Company”) was incorporated in the State of Delaware on May 2, 2018, and is headquartered in Foster City, California. The Company is a biopharmaceutical company focused on the development and commercialization of a late-stage pipeline of novel therapies for debilitating liver diseases. The Company’s pipeline consists of two clinical-stage product candidates, maralixibat and volixibat, with mechanisms of action that have potential utility across a wide range of orphan liver diseases. The Company commenced significant operations in November 2018. The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, Mirum Pharmaceuticals AG. All intercompany balances and transactions among the consolidated entities have been eliminated in consolidation. The Company views its operations and manages its business as one operating segment. Reverse Stock Split On July 3, 2019, the Company effected a 1-for-8 reverse stock split of its common stock. The par value and the authorized number of shares of common stock were not adjusted as a result of the reverse stock split. The reverse stock split resulted in an adjustment to the conversion price of the Company’s Series A redeemable convertible preferred stock (the “Series A Preferred Stock”) to reflect a proportional decrease in the number of shares of common stock to be issued upon conversion. The accompanying consolidated financial statements and notes to the consolidated financial statements give retroactive effect to the reverse stock split for all periods presented. Initial Public Offering On July 22, 2019, the Company completed its initial public offering (“IPO”) of its common stock. In connection with its IPO, the Company issued and sold 5,000,000 shares of its common stock at a price of $15.00 per share. As a result of the IPO, the Company received $67.2 million in net proceeds, after deducting underwriting discounts, commissions and offering expenses. At the closing of the IPO, 119,752,983 shares of outstanding Series A Preferred Stock were automatically converted into 14,969,118 shares of common stock , and 1,859,151 shares of redeemable common stock were reclassified into permanent equity due to the expiration of the deemed redemption feature Liquidity The Company has a limited operating history, has incurred significant operating losses since its inception, and the revenue and income potential of the Company’s business and market are unproven. As of December 31, 2019, the Company had an accumulated deficit of $69.9 million and cash, cash equivalents and investments of $140.0 million, which is available to fund future operations. The Company believes that its cash, cash equivalents and investments as of December 31, 2019 provide sufficient capital resources to continue its operations for at least twelve months from the issuance date of the accompanying consolidated financial statements. T he consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of this uncertainty. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Use of Estimates The preparation of consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that impact the reported amounts of assets, liabilities and expenses and the disclosure of contingent assets and liabilities in the financial statements and accompanying notes. The most significant estimates in the Company’s consolidated financial statements relate to accrued research and development expenses, the valuation of common stock, equity awards and the valuation allowance of deferred tax assets resulting from net operating losses. These estimates and assumptions are based upon historical experience, knowledge of current events and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the recording of expenses that are not readily apparent from other sources. Actual results could differ materially from those estimates. Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less at the date of purchase to be cash equivalents. The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents are valued at cost, which approximate their fair value. Cash equivalents may consist of money market accounts, money market funds, U.S. treasury bills and repurchase agreements. The Company invests in certain reverse repurchase agreements, which are collateralized by deposits in the form of U.S. Treasury Securities for an amount no less than 102% of their value. The Company does not record an asset or liability for the collateral as the Company does not intend to sell or re-pledge the collateral. The collateral has the prevailing credit rating of at least the U.S. Government Treasuries and Agencies. The Company utilizes a third-party custodian to manage the exchange of funds and ensure that collateral received is maintained at 102% of the value of the reverse repurchase agreements on a daily basis. Concentrations of Credit Risk and Off-Balance Sheet Risk Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash and cash equivalents, and short and long-term investments. The Company minimizes the amount of credit exposure by investing cash that is not required for immediate operating needs in money market funds, government obligations and/or commercial paper with short maturities. To date, the Company has not experienced any losses associated with this credit risk and continues to believe that this exposure is not significant. Investments The Company classifies all investments as available-for-sale, as the sale of such securities may be required prior to maturity . Management determines the appropriate classification of its investments in debt securities at the time of purchase. Investments with original maturities beyond three months at the date of purchase and which mature at, or less than twelve months from the balance sheet date, are classified as a current asset. Investments are recorded at fair value, with unrealized gains and losses reported as accumulated other comprehensive income (loss) until realized . The Company periodically evaluates whether declines in fair values of its available-for-sale securities below their book value are other-than-temporary. This evaluation consists of several qualitative and quantitative factors regarding the severity and duration of the unrealized loss as well as the Company’s ability and intent to hold the available-for-sale security until a forecasted recovery occurs. Additionally, the Company assesses whether it has plans to sell the security or it is more likely than not it will be required to sell any available-for-sale securities before recovery of its amortized cost basis. To date, the Company has not identified any other than temporary declines in fair value of its investments. Fair Value of Financial Instruments The accounting guidance defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the accounting guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1: Observable inputs such as quoted prices in active markets; Level 2: Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. The carrying amounts of all cash equivalents, accounts payable and accrued liabilities are reasonable estimates of their fair value. There were no transfers between Levels 1, 2 or 3 for the periods presented. Property and Equipment Property and equipment are recorded at cost less accumulated depreciation, ranging from three to five years. Leasehold improvements are amortized over the shorter of their useful lives or the related lease term. As of December 31, 2019, property and equipment consisted primarily of leasehold improvements of $1.3 million and furniture and equipment of $0.2 million. As of December 31, 2018, there was no property and equipment. Accumulated depreciation as of December 31, 2019 and 2018 was $0.1 million and zero, respectively. Accrued Research and Development Expenses The Company accrues and expenses clinical trial activities performed by third parties based upon estimates of the proportion of work completed over the life of the individual study and patient enrollment rates in accordance with agreements established with clinical research organizations and clinical trial sites. The Company determines the estimates by reviewing contracts, vendor agreements and purchase orders and through discussions with internal clinical personnel and external service providers as to the progress or stage of completion of trials or services and the agreed-upon fee to be paid for such services. The Company makes estimates of accrued expenses as of each balance sheet date based on facts and circumstances known to the Company at that time. If the actual timing of the performance of services or the level of effort varies from the estimate, the Company will adjust the accrual accordingly. The Company has not experienced any material differences between accrued costs and actual costs incurred since its inception. Nonrefundable advance payments for goods and services are deferred and recognized as expense in the period that the related goods are consumed or services are performed. Research and Development Expenses Research and development expenses consist primarily of fees paid to contract research organizations and other vendors for clinical, non-clinical and manufacturing services, salaries and benefits, including stock-based compensation, consultant expenses, costs related to acquiring manufacturing materials, costs related to compliance with regulatory requirements and license payments related to acquiring intellectual property rights for the Company’s product candidates. Research and development expenses are expensed as incurred. Leases In accordance with Accounting Standards Update (“ASU”) No. 2016-02, as adopted on January 1, 2019, the Company determines if a contractual arrangement is or contains a lease at inception. Operating lease right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset during the lease term, and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating leases are included in ROU assets, current operating lease liabilities, and long-term operating lease liabilities on the accompanying consolidated balance sheets. Operating lease ROU assets and lease liabilities are initially recognized based on the present value of the future minimum lease payments over the lease term at commencement date calculated using the Company’s incremental borrowing rate applicable to the lease asset, unless the implicit rate is readily determinable. Operating lease ROU assets also include any lease payments made at or before lease commencement and exclude any lease incentives received. The Company determines the lease term as the noncancelable period of the lease and may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Leases with a term of 12 months or less are not recognized on the consolidated balance sheet. The Company’s leases do not contain any residual value guarantees. Lease expense for minimum lease payments is recognized as rent expense on a straight-line basis over the lease term. Stock-Based Compensation The Company recognizes stock-based compensation for all stock-based awards to employees based on the grant-date fair value of the award. The Company estimates the fair value of stock option grants using the Black-Scholes option pricing model, and the assumptions used in calculating the fair value of stock-based awards represent management’s best estimates and involve inherent uncertainties and the application of management’s judgment. The fair value of equity awards that are expected to vest is amortized on a straight-line basis over the requisite service period. Stock-based compensation is recognized net of actual forfeitures when they occur. Income Taxes Income taxes are recorded using the liability method, under which deferred tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Valuation allowances are recorded against deferred tax assets when it is determined it is more-likely-than-not that some or all of the tax benefits will not be realized. The Company accounts for uncertain tax positions in accordance with the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification No. 740, Income Taxes Interest and penalties related to unrecognized tax benefits, if any, are recorded as a component of income tax expense. Net Loss Per Share Basic net loss per share is computed by dividing net loss attributable to common stockholders by the weighted-average shares of common stock outstanding for the period, without consideration for potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted-average shares of common stock and potentially dilutive securities outstanding for the period determined using the treasury-stock and if-converted methods. Diluted net loss per share excludes the potential impact of the Company’s common stock subject to repurchase and common stock options because their effect would be anti-dilutive due to the Company’s net loss. Since the Company had a net loss in each of the periods presented, basic and diluted net loss per share were the same. The following outstanding potentially dilutive shares have been excluded from the calculation of diluted net loss per share for the periods presented due to their anti-dilutive effect: December 31, 2019 2018 Options to purchase common stock 3,366,812 — Common stock subject to repurchase 389,649 550,781 Total 3,756,461 550,781 Recently Adopted Accounting Pronouncements On January 1, 2019, the Company adopted ASU No. 2016-02 , Leases (Topic 842) Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the American Institute of Certified Public Accountants, and the Securities and Exchange Commission (“SEC”) did not, or are not believed by management to, have a material impact on the Company’s present or future consolidated financial position, results of operations or cash flows. Recent Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Codification Improvements to Topic 326, Financial Instruments - Credit Losses Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Derivatives and Hedging (Topic 815), and Financial Instruments (Topic 842), is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019 for public business entities, excluding smaller reporting companies. Early adoption is permitted. In August 2018, the FASB issued ASU No. 2018-13, Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement (Topic 820) In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes (Topic 740) . The guidance eliminates certain exceptions for recognizing deferred taxes for investments, performing intraperiod allocation and calculating income taxes in interim periods. This guidance also includes guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. ASU 2019-12 is effective for annual and interim periods in fiscal years beginning after December 15, 2020. Early adoption is permitted. The Company is currently evaluating the impact this change will have on its consolidated financial statements. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 3. Fair Value Measurements Financial assets and liabilities subject to fair value measurements on a recurring basis and the level of inputs used in such measurements by major security type are presented in the following table (in thousands): December 31, 2019 Level 1 Level 2 Level 3 Total Financial assets: Money market fund $ 10,621 $ — $ — $ 10,621 Corporate debt securities — 41,668 — 41,668 Commercial paper — 35,016 — 35,016 U.S. government bonds — 22,511 — 22,511 Asset backed securities — 28,787 — 28,787 Total $ 10,621 $ 127,982 $ — $ 138,603 As of December 31, 2018, the Company had $51.5 million in Level 1 financial assets consisting of cash equivalents. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments Owned At Fair Value [Abstract] | |
Financial Instruments | 4. Financial Instruments The fair value and amortized cost of cash equivalents and available-for-sale investments by major security type are presented in the following table (in thousands): December 31, 2019 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value Cash equivalents and investments: Money market fund $ 10,621 $ — $ — $ 10,621 Corporate debt securities 41,556 113 (1 ) 41,668 Commercial paper 35,016 — — 35,016 U.S. government bonds 22,492 19 — 22,511 Asset back securities 28,762 25 — 28,787 Total cash equivalents and investments $ 138,447 $ 157 $ (1 ) $ 138,603 Classified as: Cash equivalents $ 10,621 Short-term investments 104,690 Long-term investments 23,292 Total cash equivalents and investments $ 138,603 The Company did not hold investments as of December 31, 2018. As of December 31, 2019, the remaining contractual maturities of available-for-sale debt securities were as follows (in thousands): Estimated Fair Value Due within one year $ 104,690 One to two years 21,297 Three years or more 1,995 Total $ 127,982 During the year ended December 31, 2019, there have been no significant realized gains or losses on available-for-sale investments. During the year ended December 31, 2019, no other-than-temporary impairment losses on these securities. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2019 | |
Payables And Accruals [Abstract] | |
Accrued Expenses | 5. Accrued Expenses Accrued expenses consist of the following (in thousands): December 31, 2019 2018 Accrued costs for Shire — $ 1,310 Accrued clinical trials 4,795 785 Accrued professional service fees 777 70 Accrued contract manufacturing and non-clinical costs 1,540 — Accrued compensation and related benefits 2,216 15 Total accrued expenses $ 9,328 $ 2,180 |
Asset Acquisitions
Asset Acquisitions | 12 Months Ended |
Dec. 31, 2019 | |
Asset Acquisitions [Abstract] | |
Asset Acquisitions | 6. Asset Acquisitions Assignment and License Agreement with Shire International GmbH On November 5, 2018, the Company entered into an Assignment and License Agreement (the “Shire Agreement”) with Shire International GmbH (“Shire”). Under the terms of the Shire Agreement, Shire granted the Company an exclusive, royalty bearing worldwide license to develop and commercialize its two product candidates, maralixibat and volixibat. As part of the Shire Agreement, the Company was assigned license agreements held by Shire with Satiogen Pharmaceuticals, Inc. (“Satiogen”), Pfizer Inc. (“Pfizer”) and Sanofi-Aventis Deutschland GmbH (“Sanofi”). The Company has the right to sublicense under the Shire Agreement and additionally has the right to sublicense under the Satiogen, Pfizer and Sanofi licenses subject to the terms of those license agreements. In consideration for the rights granted to the Company under the Shire Agreement, the Company made an upfront payment to Shire on November 5, 2018 of $7.5 million and issued Shire 1,859,151 shares of its redeemable common stock with an estimated fair value of $7.0 million, or $3.76 per share. The fair value of the shares was determined using an option pricing model with key assumptions as of the date of issuance including the probabilities of liquidity scenarios, enterprise value, time to liquidity, risk-free interest rates, volatility and discount for lack of marketability. The Company accounted for the transaction as an asset acquisition as substantially all of the fair value of the gross assets acquired were concentrated in a group of similar identifiable assets thus satisfying the requirements of the screen test in ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. The Company is also obligated to pay Shire up to an aggregate of $109.5 million upon the achievement of certain clinical development and regulatory milestones for maralixibat in certain indications and an additional $25.0 million upon regulatory approval of maralixibat for each and every other indication. In addition, the Company is required to pay up to an aggregate of $30.0 million upon the achievement of certain clinical development and regulatory milestones for volixibat solely for the first indication sought. Upon commercialization, the Company is obligated to pay Shire product sales milestones on total licensed products up to an aggregate of $30.0 million. The Company is also obligated to pay tiered royalties with rates ranging from low double-digits to mid-teens based upon annual worldwide net sales for all licensed products; however, these royalties are reduced in part by royalties due under the Satiogen and Sanofi licenses, as discussed below, related to maralixibat and volixibat, as applicable. The Company’s royalty obligations will continue on a licensed product-by-licensed product and country-by-country basis until the later to occur of the expiration of the last valid claim in a licensed patent covering the applicable licensed product in such country, expiration of any regulatory exclusivity for the licensed product in a country and ten years after the first commercial sale of a licensed product in such country. In July 2019, the Company achieved a development milestone related to the initiation of the Phase 3 MARCH clinical trial and made a $2.5 million payment to Shire. As of December 31, 2019, no additional milestones had been accrued as there were no other potential milestones yet considered probable. Concurrent with the Shire Agreement, the Company also entered into a Transition Services Agreement (“TSA”) with Shire, which covers services provided by Shire to transfer the research and development activities and the related know-how from Shire to the Company, including continuation of work on any existing clinical trials and manufacturing activities until fully transferred. As of June 30, 2019, all transition services were completed as well as settlement of any pass-through costs. The Company recorded $0.4 million for services provided by Shire under the TSA for the year ended December 31, 2019. Additionally, the Company recorded a reduction of estimated expenses of $0.1 million for pass-through costs related to continuation of work on existing clinical trials and manufacturing activities for the year ended December 31, 2019. The reduction of estimated expenses for the year ended December 31, 2019 was related to a final reconciliation of expenses and agreement on final amounts due to Shire. The Company recorded $0.5 million for services provided by Shire under the TSA and $1.6 million for pass-through costs related to continuation of work on existing clinical trials and manufacturing activities for the period from May 2, 2018 to December 31, 2018. As of December 31, 2019, there was no accrued expenses for these services. As of December 31, 2018, $2.1 million was recorded in accrued expenses on the consolidated balance sheets for these services. Satiogen License Through the Shire Agreement, the Company was assigned a license agreement with Satiogen pursuant to which the Company obtained an exclusive, worldwide license to certain patents and know-how, with the right to sublicense to a third party subject to certain financial considerations. The Company is obligated to pay to Satiogen up to an aggregate of $10.5 million upon the achievement of certain milestones, of which $0.5 million was for initiation of certain development activities, $5.0 million for the completion of regulatory approvals and $5.0 million for commercialization activities. Additionally, the Company will be required to pay a low single-digit royalty on net sales. The Company’s royalty obligations continue on a licensed product-by-licensed product and country-by-country basis until the expiration of the last valid claim in a licensed patent covering the applicable licensed product in such country. Royalty obligations under the Satiogen license are creditable against the royalty obligations to Shire under the Shire Agreement. In July 2019, the Company achieved a development milestone related to the initiation of the Phase 3 MARCH clinical trial and made a $0.5 million payment to Satiogen. As of December 31, 2019, no additional milestones had been accrued as there were no other potential milestones yet considered probable. Pfizer License Through the Shire Agreement, the Company was assigned a license agreement with Pfizer pursuant to which the Company obtained an exclusive, worldwide license to certain Pfizer know-how with a right to sublicense. Upon commercialization of any product utilizing the licensed product, the Company will be required to pay to Pfizer a low single-digit royalty on net sales of product sold by the Company, its affiliates or sublicensees. The Company’s royalty obligations continue on a licensed product-by-licensed product basis until the eighth anniversary of the first commercial sale of such licensed product anywhere in the world. Sanofi License Through the Shire Agreement, the Company was assigned a license agreement with Sanofi pursuant to which the Company obtained an exclusive, worldwide license to certain patents and know-how with the right to sublicense to a third party subject to certain financial considerations. The Company is obligated to pay up to an aggregate of $36.0 million upon the achievement of certain regulatory, commercialization and product sales milestones. Additionally, upon commercialization, the Company is required to pay tiered royalties in the mid to high single-digit range based upon net sales of licensed products sold by the Company and sublicensees in a calendar year, subject to adjustments in certain circumstances. The Company’s royalty obligations continue on a licensed product-by-licensed product and country-by-country basis until the later to occur of the expiration of the last valid claim in a licensed patent covering the applicable licensed product in such country and ten years after the first commercial sale of a licensed product in such country. Royalty obligations under the Sanofi license are creditable against the royalty obligations to Shire under the Shire Agreement. As of December 31, 2019, no milestones had been accrued as there were no potential milestones yet considered probable. |
Stockholders' Equity (Deficit)
Stockholders' Equity (Deficit) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Stockholders’ Equity (Deficit) | 7. Stockholders’ Equity (Deficit) In connection with the Company’s IPO, all of the outstanding shares of Series A Preferred Stock automatically converted into 14,969,118 shares of common stock and the 1,859,151 shares of the Company’s redeemable common stock classified in mezzanine equity were reclassified to permanent equity due to the expiration of the deemed redemption feature associated with the stock. Common Stock In August and October 2018, the Company issued 1,187,500 shares of common stock as founder shares for services rendered to the Company, valued at $0.0001 per share for consideration of approximately $950. On November 5, 2018, in connection with the issuance of the Series A Preferred Stock, vesting conditions were placed on 562,500 previously issued founder shares. These shares vest over 4 years and are subject to repurchase by the Company in the event of termination of services. Shares subject to repurchase are not deemed, for accounting purposes, to be outstanding until those shares vest. In April 2019, the Company repurchased 25,782 shares of the common stock from a former employee in connection with termination of employment. As of December 31, 2019 and 2018, 389,649 and 550,781 shares of common stock, respectively, were subject to repurchase by the Company. The unvested stock liability related to these shares is immaterial to all periods presented. Each share of common stock is entitled to one voting right. Common stockholders are entitled to dividends when funds are legally available and declared by the Company’s board of directors. Common Stock Reserved for Issuance Common stock reserved for issuance is as follows: December 31, 2019 2018 Conversion of Series A Preferred Stock — 7,488,530 Stock options issued and outstanding 3,366,812 — Reserved for future stock awards or option grants 1,112,443 1,859,151 Reserved for employee stock purchase plan 500,000 — 4,979,255 9,347,681 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 8. Stock-Based Compensation Equity Incentive Plans On November 5, 2018, the Company adopted the 2018 Equity Incentive Plan (the “2018 Plan”) which permits the granting of stock awards and incentive and nonstatutory stock options to employees, directors and consultants of the Company. In July 2019, the Company’s board of directors and stockholders approved and adopted the 2019 Equity Incentive Plan (the “2019 Plan”). The 2019 Plan became effective on July 17, 2019. Under the 2019 Plan, the Company may grant stock options, stock appreciation rights, restricted stock, restricted stock units and other stock or cash-based awards to individuals who are then employees, officers, directors or consultants of the Company. A total of 1,401,443 shares of common stock were approved to be initially reserved for issuance under the 2019 Plan, including 101,443 shares that remained available for issuance under the 2018 Plan as of July 17, 2019. Shares subject to outstanding awards under the 2018 Plan as of the effective date of the 2019 Plan that are subsequently canceled, forfeited or repurchased by the Company will be added to the shares reserved under the 2019 Plan. In addition, the number of shares of common stock available for issuance under the 2019 Plan will be automatically increased on the first day of each calendar year during the ten-year term of the 2019 Plan, beginning with January 1, 2020 and ending with January 1, 2029, by an amount equal to 5% of the outstanding number of shares of the Company’s common stock on December 31st of the preceding calendar year or such lesser amount as determined by the Company’s board of directors. As of December 31, 2019, 1,112,443 shares of common stock were available for issuance under the 2019 Plan. Stock Options The fair value of each employee and non-employee stock option grant is estimated on the date of grant using the Black-Scholes option-pricing model. Due to the Company’s limited operating history and a lack of company specific historical and implied volatility data, the Company estimated expected volatility based on the historical volatility of a group of similar companies that are publicly traded. The historical volatility data was computed using the daily closing prices for the selected companies’ shares during the equivalent period of the calculated expected term of the stock-based awards. Due to the lack of historical exercise history, the expected term of the Company’s stock options for employees has been determined utilizing the “simplified” method for awards. The risk-free interest rate is determined by reference to the U.S. Treasury yield curve in effect at the time of grant of the award for time periods approximately equal to the expected term of the award. Expected dividend yield is zero based on the fact that the Company has never paid cash dividends and does not expect to pay any cash dividends in the foreseeable future. No stock options were granted for the period from May 2, 2018 to December 31, 2018. The following assumptions were used to estimate the fair value of stock option awards granted during the following period: Year Ended December 31, 2019 Exercise price $2.94-$15.00 Expected term (in years) 5.5-6.3 Expected volatility 73.88%-84.59% Risk-free interest rate 1.41%-2.46% Expected dividend yield — Grant date fair value of options granted $5.10-$10.46 The following table summarizes stock option activity during the year ended December 31, 2019 (in thousands, except share and per share data): Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life (in Years) Aggregate Intrinsic Value Outstanding as of December 31, 2018 — $ — — $ — Granted 3,366,812 5.14 9.3 Exercised — — — Canceled and forfeited — — — Outstanding as of December 31, 2019 3,366,812 $ 5.14 9.3 $ 65,235 Vested and exercisable as of December 31, 2019 345,178 $ 2.99 9.2 $ 7,432 Intrinsic value is calculated as the difference between the exercise price of the underlying options and the fair value of the common stock for the options that had exercise prices that were lower than the per share fair value of the common stock on the date of exercise. As of December 31, 2019, the total unrecognized stock-based compensation related to unvested stock option awards granted was $22.2 million, which the Company expects to recognize over a weighted-average period of approximately 3.1 years. Restricted Stock On November 5, 2018, in connection with the issuance of the Series A Preferred Stock, the Company’s founders agreed to modify their outstanding shares of common stock to include vesting provisions that require continued service to the Company in order to vest in those shares. As such, the 562,500 modified shares of common stock became compensatory upon such modification. The total compensation cost resulting from the modification was $1.7 million. The modified shares have a four-year vesting period and a measurement date fair value of $2.936 per share. For the year ended December 31, 2019, 135,350 shares vested. As of December 31, 2019, the total unrecognized compensation expense related to unvested restricted stock was $1.1 million expected to be recognized over a weighted-average period of approximately 2.9 years. Stock-based compensation is reflected in the consolidated statements of operations as follows (in thousands): Year Ended Period from May 2, 2018 December 31, 2019 to December 31, 2018 General and administrative $ 3,711 $ 26 Research and development 2,359 8 Total $ 6,070 $ 34 2019 Employee Stock Purchase Plan In July 2019, the Company’s board of directors and stockholders approved and adopted the 2019 Employee Stock Purchase Plan (the “ESPP”). The ESPP became effective on July 17, 2019. A total of 500,000 shares of common stock were approved to be initially reserved for issuance under the ESPP. In addition, the number of shares of common stock available for issuance under the ESPP will be automatically increased on the first day of each calendar year during the first ten-years of the term of the ESPP, beginning with January 1, 2020 and ending with January 1, 2029, by an amount equal to the lessor of (i) 1% of the outstanding number of shares of common stock on December 31st of the preceding calendar year, (ii) 1,500,000 shares of common stock or (iii) such lesser amount as determined by the Company’s board of directors. The Company had 500,000 shares available for future issuance under the 2019 ESPP as of December 31, 2019. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | 9. Leases In January 2019, the Company entered into an operating lease agreement for office space which consisted of approximately 5,600 square feet (the “initial lease”). The lease term is approximately four years with an option to extend the term for one five-year term, which at the time was not reasonably assured of exercise and therefore, not included in the lease term. The lease contained a tenant improvement allowance of $0.4 million, which has been recorded as leasehold improvements in the accompanying consolidated balance sheets with a corresponding reduction of the ROU asset at inception of the lease. In November 2019, the Company amended the operating lease agreement (the “amended agreement”) to extend the term of the initial lease through March 2025. This extension was accounted for as a lease modification and the Company recorded an increase to the ROU asset and lease liability of $0.6 million at the time of the amendment. Additionally, pursuant to the amended agreement, the Company expanded the office space by 5,555 square feet for a five-year term expiring in March 2025 (the “expanded space”). The Company accounted for the expanded space as a separate contract as there were material additional rights of use that were not included in the initial lease. The amended lease contained a tenant improvement allowance of $0.8 million in connection with the expanded space, which has been recorded as leasehold improvements on the accompanying consolidated balance sheet with a corresponding reduction of the ROU asset at inception of the lease for the expanded space. As of December 31, 2019, the Company recorded an aggregate ROU asset of $2.4 million and an aggregate lease liability of $3.6 million in the accompanying consolidated balance sheet. The weighted-average remaining lease term is 5.14 years and the weighted-average estimated incremental borrowing rate is 8.0%. As of December 31, 2019, undiscounted future minimum payments under the Company’s operating leases are as follows: Years Ended December 31, Undiscounted Rent Payments 2020 674 2021 865 2022 890 2023 918 2024 928 Thereafter 230 Total undiscounted lease payments 4,505 Less: imputed interest (857 ) Total lease liability $ 3,648 No lease agreements were executed by the Company as of December 31, 2018. Rent expense was $0.3 million for the year ended December 31, 2019. Variable lease payments for lease operating expenses were immaterial for the year ended December 31, 2019. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes The Company’s losses before income taxes for the year ended December 31, 2019 and for the period from May 2, 2018 to December 31, 2018 are as follows (in thousands): Year Ended Period from May 2, 2018 December 31, to December 31, 2019 2018 U.S. loss before taxes $ (52,654 ) $ (17,348 ) Foreign loss before taxes 122 — Loss before income taxes (52,532 ) (17,348 ) For the year ended December 31, 2019, the Company had a current tax provision of $21,000 related to foreign taxes. For the period from May 2, 2018 to December 31, 2018 the Company did not record a provision for income taxes. A reconciliation of the federal statutory income tax rate to the Company’s effective income tax rate is as follows: Year Ended Period from May 2, 2018 December 31, to December 31, 2019 2018 Federal statutory income tax rate 21.00 % 21.00 % State tax (1.62 ) 7.03 Permanent differences (0.78 ) (0.02 ) Tax credits 7.32 1.94 Change in valuation allowance (25.95 ) (29.95 ) Total tax benefit (0.03 ) % — % Significant components of the Company’s deferred tax assets are as follows (in thousands): December 31, 2019 2018 Deferred tax assets: Net operating losses $ 9,486 $ 602 Tax credit carryforwards 4,378 346 Accrued expenses 364 148 Intangibles 3,570 4,085 Lease liability 737 — Stock-based compensation 989 — Other — 14 Total deferred tax assets 19,524 5,195 Deferred tax liabilities: Operating lease right-of-use assets (468 ) — Fixed assets (228 ) — Total deferred tax liabilities (696 ) — Valuation allowance (18,828 ) (5,195 ) Net deferred tax assets $ — $ — The valuation allowance increased by $13.6 million and $5.2 million for the year ended December 31, 2019 and from May 2, 2018 to December 31, 2018, respectively. The tax benefit of deductible temporary differences or carryforwards is recorded as a deferred tax asset to the extent that management assesses the realization is “more likely than not.” Future realization of the tax benefit ultimately depends on the existence of sufficient taxable income within the period available under the tax law. At December 31, 2019 and 2018, the Company has set up valuation allowances against all federal and state net deferred tax assets because based on all available evidence, these deferred tax assets are not more than likely to be realizable. The Company had federal and California net operating loss carryforwards of approximately $44.4 million and $2.2 million at December 31, 2019, and $2.2 million and $2.2 million at December 31, 2018, respectively. Federal losses do not expire, and California net operating losses will begin to expire in 2038. The Company also has federal general business credit and California research and development credit carryforwards totaling $5.6 million and $0.3 million at December 31, 2019, and $0.5 million and $12,000 at December 31, 2018, respectively. The federal research and development credit carryforwards will begin to expire in 2038, unless previously utilized. The California research credits do not expire. In general, if the Company experiences a greater than 50 percentage point aggregate change in ownership of certain significant stockholders over a three-year period (a “Section 382 ownership change”), utilization of its pre-change NOL carryforwards and the research and development credit carryforwards is subject to an annual limitation under Sections 382 and 383 of the Internal Revenue Code of 1986, as amended, and similar state laws. The annual limitation generally is determined by multiplying the value of the Company’s stock at the time of such ownership change, subject to certain adjustments, by the applicable long-term tax-exempt rate. Such limitations may result in expiration of a portion of the NOL carryforwards and research and development credit carryforwards before utilization and may be material. As of December 31, 2019, the Company has not determined to what extent a potential ownership change will impact the annual limitation that may be placed on the Company’s utilization of its NOL carryovers and research and development credit carryforwards. The Company recognizes the financial statements effects of a tax position when it is more likely than not, based on technical merits, that the position will be sustained upon examination. A reconciliation of the Company’s unrecognized tax benefits is as follows (in thousands): Year Ended Period from May 2, 2018 December 31, to December 31, 2019 2018 Balance at beginning of year $ 116 $ — (Decrease) related to prior year tax positions (20 ) — Increases related to current year tax positions 1,394 116 Balance at end of year $ 1,490 $ 116 The Company has considered the amounts and probabilities of the outcomes that can be realized upon ultimate settlement with the tax authorities and determined unrecognized tax benefits primarily related to credits should be established as noted in the summary rollforward above. The unrecognized tax benefits, if recognized and in absence of full valuation allowance, would impact the income tax provision by $1.5 million and $0.1 million in 2019 and from May 2, 2018 to December 31, 2018, respectively. The Company’s effective income tax rate would not be impacted if the unrecognized tax benefits are recognized in 2019 and from May 2, 2018 to December 31, 2018. Additional amounts in the summary rollforward could impact the Company’s effective tax rate if it did not maintain a full valuation allowance on its net deferred tax assets. As of December 31, 2019, the Company does not believe that it is reasonably possible that its unrecognized tax benefits would significantly change in the following 12 months. The Company is subject to taxation in the United States federal jurisdiction, state jurisdictions and Switzerland. Due to the Company’s losses incurred, the Company is subject to the income tax examination by authorities since inception on May 2, 2018. The Company’s policy is to recognize interest expense and penalties related to income tax matters as tax expense. As of December 31, 2019, there were no significant accruals for interest related to unrecognized tax benefits or tax penalties. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Event | 11. Subsequent Event On January 13, 2020, the Company completed a follow-on public offering of its common stock pursuant to which the Company sold 2,400,000 shares of common stock at a price of $20.00 per share, resulting in net proceeds of approximately $44.7 million after deducting underwriting discounts, commissions and offering expenses payable by the Company. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that impact the reported amounts of assets, liabilities and expenses and the disclosure of contingent assets and liabilities in the financial statements and accompanying notes. The most significant estimates in the Company’s consolidated financial statements relate to accrued research and development expenses, the valuation of common stock, equity awards and the valuation allowance of deferred tax assets resulting from net operating losses. These estimates and assumptions are based upon historical experience, knowledge of current events and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the recording of expenses that are not readily apparent from other sources. Actual results could differ materially from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less at the date of purchase to be cash equivalents. The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents are valued at cost, which approximate their fair value. Cash equivalents may consist of money market accounts, money market funds, U.S. treasury bills and repurchase agreements. The Company invests in certain reverse repurchase agreements, which are collateralized by deposits in the form of U.S. Treasury Securities for an amount no less than 102% of their value. The Company does not record an asset or liability for the collateral as the Company does not intend to sell or re-pledge the collateral. The collateral has the prevailing credit rating of at least the U.S. Government Treasuries and Agencies. The Company utilizes a third-party custodian to manage the exchange of funds and ensure that collateral received is maintained at 102% of the value of the reverse repurchase agreements on a daily basis. |
Concentrations of Credit Risk and Off-Balance Sheet Risk | Concentrations of Credit Risk and Off-Balance Sheet Risk Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash and cash equivalents, and short and long-term investments. The Company minimizes the amount of credit exposure by investing cash that is not required for immediate operating needs in money market funds, government obligations and/or commercial paper with short maturities. To date, the Company has not experienced any losses associated with this credit risk and continues to believe that this exposure is not significant. |
Investments | Investments The Company classifies all investments as available-for-sale, as the sale of such securities may be required prior to maturity . Management determines the appropriate classification of its investments in debt securities at the time of purchase. Investments with original maturities beyond three months at the date of purchase and which mature at, or less than twelve months from the balance sheet date, are classified as a current asset. Investments are recorded at fair value, with unrealized gains and losses reported as accumulated other comprehensive income (loss) until realized . The Company periodically evaluates whether declines in fair values of its available-for-sale securities below their book value are other-than-temporary. This evaluation consists of several qualitative and quantitative factors regarding the severity and duration of the unrealized loss as well as the Company’s ability and intent to hold the available-for-sale security until a forecasted recovery occurs. Additionally, the Company assesses whether it has plans to sell the security or it is more likely than not it will be required to sell any available-for-sale securities before recovery of its amortized cost basis. To date, the Company has not identified any other than temporary declines in fair value of its investments. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The accounting guidance defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the accounting guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1: Observable inputs such as quoted prices in active markets; Level 2: Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. The carrying amounts of all cash equivalents, accounts payable and accrued liabilities are reasonable estimates of their fair value. There were no transfers between Levels 1, 2 or 3 for the periods presented. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost less accumulated depreciation, ranging from three to five years. Leasehold improvements are amortized over the shorter of their useful lives or the related lease term. As of December 31, 2019, property and equipment consisted primarily of leasehold improvements of $1.3 million and furniture and equipment of $0.2 million. As of December 31, 2018, there was no property and equipment. Accumulated depreciation as of December 31, 2019 and 2018 was $0.1 million and zero, respectively. |
Accrued Research and Development Expenses | Accrued Research and Development Expenses The Company accrues and expenses clinical trial activities performed by third parties based upon estimates of the proportion of work completed over the life of the individual study and patient enrollment rates in accordance with agreements established with clinical research organizations and clinical trial sites. The Company determines the estimates by reviewing contracts, vendor agreements and purchase orders and through discussions with internal clinical personnel and external service providers as to the progress or stage of completion of trials or services and the agreed-upon fee to be paid for such services. The Company makes estimates of accrued expenses as of each balance sheet date based on facts and circumstances known to the Company at that time. If the actual timing of the performance of services or the level of effort varies from the estimate, the Company will adjust the accrual accordingly. The Company has not experienced any material differences between accrued costs and actual costs incurred since its inception. Nonrefundable advance payments for goods and services are deferred and recognized as expense in the period that the related goods are consumed or services are performed. |
Research and Development Expenses | Research and Development Expenses Research and development expenses consist primarily of fees paid to contract research organizations and other vendors for clinical, non-clinical and manufacturing services, salaries and benefits, including stock-based compensation, consultant expenses, costs related to acquiring manufacturing materials, costs related to compliance with regulatory requirements and license payments related to acquiring intellectual property rights for the Company’s product candidates. Research and development expenses are expensed as incurred. |
Leases | Leases In accordance with Accounting Standards Update (“ASU”) No. 2016-02, as adopted on January 1, 2019, the Company determines if a contractual arrangement is or contains a lease at inception. Operating lease right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset during the lease term, and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating leases are included in ROU assets, current operating lease liabilities, and long-term operating lease liabilities on the accompanying consolidated balance sheets. Operating lease ROU assets and lease liabilities are initially recognized based on the present value of the future minimum lease payments over the lease term at commencement date calculated using the Company’s incremental borrowing rate applicable to the lease asset, unless the implicit rate is readily determinable. Operating lease ROU assets also include any lease payments made at or before lease commencement and exclude any lease incentives received. The Company determines the lease term as the noncancelable period of the lease and may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Leases with a term of 12 months or less are not recognized on the consolidated balance sheet. The Company’s leases do not contain any residual value guarantees. Lease expense for minimum lease payments is recognized as rent expense on a straight-line basis over the lease term. |
Stock-Based Compensation | Stock-Based Compensation The Company recognizes stock-based compensation for all stock-based awards to employees based on the grant-date fair value of the award. The Company estimates the fair value of stock option grants using the Black-Scholes option pricing model, and the assumptions used in calculating the fair value of stock-based awards represent management’s best estimates and involve inherent uncertainties and the application of management’s judgment. The fair value of equity awards that are expected to vest is amortized on a straight-line basis over the requisite service period. Stock-based compensation is recognized net of actual forfeitures when they occur. |
Income Taxes | Income Taxes Income taxes are recorded using the liability method, under which deferred tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Valuation allowances are recorded against deferred tax assets when it is determined it is more-likely-than-not that some or all of the tax benefits will not be realized. The Company accounts for uncertain tax positions in accordance with the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification No. 740, Income Taxes Interest and penalties related to unrecognized tax benefits, if any, are recorded as a component of income tax expense. |
Net Loss Per Share | Net Loss Per Share Basic net loss per share is computed by dividing net loss attributable to common stockholders by the weighted-average shares of common stock outstanding for the period, without consideration for potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted-average shares of common stock and potentially dilutive securities outstanding for the period determined using the treasury-stock and if-converted methods. Diluted net loss per share excludes the potential impact of the Company’s common stock subject to repurchase and common stock options because their effect would be anti-dilutive due to the Company’s net loss. Since the Company had a net loss in each of the periods presented, basic and diluted net loss per share were the same. The following outstanding potentially dilutive shares have been excluded from the calculation of diluted net loss per share for the periods presented due to their anti-dilutive effect: December 31, 2019 2018 Options to purchase common stock 3,366,812 — Common stock subject to repurchase 389,649 550,781 Total 3,756,461 550,781 |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements On January 1, 2019, the Company adopted ASU No. 2016-02 , Leases (Topic 842) Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the American Institute of Certified Public Accountants, and the Securities and Exchange Commission (“SEC”) did not, or are not believed by management to, have a material impact on the Company’s present or future consolidated financial position, results of operations or cash flows. |
Recent Accounting Pronouncements Not Yet Adopted | Recent Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Codification Improvements to Topic 326, Financial Instruments - Credit Losses Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Derivatives and Hedging (Topic 815), and Financial Instruments (Topic 842), is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019 for public business entities, excluding smaller reporting companies. Early adoption is permitted. In August 2018, the FASB issued ASU No. 2018-13, Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement (Topic 820) In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes (Topic 740) . The guidance eliminates certain exceptions for recognizing deferred taxes for investments, performing intraperiod allocation and calculating income taxes in interim periods. This guidance also includes guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. ASU 2019-12 is effective for annual and interim periods in fiscal years beginning after December 15, 2020. Early adoption is permitted. The Company is currently evaluating the impact this change will have on its consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Outstanding Potentially Dilutive Shares Excluded from Calculation of Diluted Net Loss Per Share | The following outstanding potentially dilutive shares have been excluded from the calculation of diluted net loss per share for the periods presented due to their anti-dilutive effect: December 31, 2019 2018 Options to purchase common stock 3,366,812 — Common stock subject to repurchase 389,649 550,781 Total 3,756,461 550,781 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Assets and Liabilities to Fair Value Measurements On Recurring Basis and Level of Input Measurements | Financial assets and liabilities subject to fair value measurements on a recurring basis and the level of inputs used in such measurements by major security type are presented in the following table (in thousands): December 31, 2019 Level 1 Level 2 Level 3 Total Financial assets: Money market fund $ 10,621 $ — $ — $ 10,621 Corporate debt securities — 41,668 — 41,668 Commercial paper — 35,016 — 35,016 U.S. government bonds — 22,511 — 22,511 Asset backed securities — 28,787 — 28,787 Total $ 10,621 $ 127,982 $ — $ 138,603 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value and Amortized Cost of Cash Equivalents and Available-for-sale Investments by Major Security Type | The fair value and amortized cost of cash equivalents and available-for-sale investments by major security type are presented in the following table (in thousands): December 31, 2019 Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value Cash equivalents and investments: Money market fund $ 10,621 $ — $ — $ 10,621 Corporate debt securities 41,556 113 (1 ) 41,668 Commercial paper 35,016 — — 35,016 U.S. government bonds 22,492 19 — 22,511 Asset back securities 28,762 25 — 28,787 Total cash equivalents and investments $ 138,447 $ 157 $ (1 ) $ 138,603 Classified as: Cash equivalents $ 10,621 Short-term investments 104,690 Long-term investments 23,292 Total cash equivalents and investments $ 138,603 |
Summary of Remaining Contractual Maturities of Available-for-sale Debt Securities | As of December 31, 2019, the remaining contractual maturities of available-for-sale debt securities were as follows (in thousands): Estimated Fair Value Due within one year $ 104,690 One to two years 21,297 Three years or more 1,995 Total $ 127,982 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consist of the following (in thousands): December 31, 2019 2018 Accrued costs for Shire — $ 1,310 Accrued clinical trials 4,795 785 Accrued professional service fees 777 70 Accrued contract manufacturing and non-clinical costs 1,540 — Accrued compensation and related benefits 2,216 15 Total accrued expenses $ 9,328 $ 2,180 |
Stockholders_ Equity (Deficit)
Stockholders’ Equity (Deficit) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of Common Stock Reserved for Issuance | Common stock reserved for issuance is as follows: December 31, 2019 2018 Conversion of Series A Preferred Stock — 7,488,530 Stock options issued and outstanding 3,366,812 — Reserved for future stock awards or option grants 1,112,443 1,859,151 Reserved for employee stock purchase plan 500,000 — 4,979,255 9,347,681 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Assumptions Used to Estimate Fair Value of Stock Option Awards Granted | The following assumptions were used to estimate the fair value of stock option awards granted during the following period: Year Ended December 31, 2019 Exercise price $2.94-$15.00 Expected term (in years) 5.5-6.3 Expected volatility 73.88%-84.59% Risk-free interest rate 1.41%-2.46% Expected dividend yield — Grant date fair value of options granted $5.10-$10.46 |
Summary of Stock Option Activity | The following table summarizes stock option activity during the year ended December 31, 2019 (in thousands, except share and per share data): Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life (in Years) Aggregate Intrinsic Value Outstanding as of December 31, 2018 — $ — — $ — Granted 3,366,812 5.14 9.3 Exercised — — — Canceled and forfeited — — — Outstanding as of December 31, 2019 3,366,812 $ 5.14 9.3 $ 65,235 Vested and exercisable as of December 31, 2019 345,178 $ 2.99 9.2 $ 7,432 |
Summary of Stock-based Compensation Reflected in Consolidated Statements of Operations | Stock-based compensation is reflected in the consolidated statements of operations as follows (in thousands): Year Ended Period from May 2, 2018 December 31, 2019 to December 31, 2018 General and administrative $ 3,711 $ 26 Research and development 2,359 8 Total $ 6,070 $ 34 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of Undiscounted Future Minimum Payments under Operating Leases | As of December 31, 2019, undiscounted future minimum payments under the Company’s operating leases are as follows: Years Ended December 31, Undiscounted Rent Payments 2020 674 2021 865 2022 890 2023 918 2024 928 Thereafter 230 Total undiscounted lease payments 4,505 Less: imputed interest (857 ) Total lease liability $ 3,648 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Losses before Income Taxes | The Company’s losses before income taxes for the year ended December 31, 2019 and for the period from May 2, 2018 to December 31, 2018 are as follows (in thousands): Year Ended Period from May 2, 2018 December 31, to December 31, 2019 2018 U.S. loss before taxes $ (52,654 ) $ (17,348 ) Foreign loss before taxes 122 — Loss before income taxes (52,532 ) (17,348 ) |
Summary of Reconciliation of Federal Statutory Income Tax Rate | A reconciliation of the federal statutory income tax rate to the Company’s effective income tax rate is as follows: Year Ended Period from May 2, 2018 December 31, to December 31, 2019 2018 Federal statutory income tax rate 21.00 % 21.00 % State tax (1.62 ) 7.03 Permanent differences (0.78 ) (0.02 ) Tax credits 7.32 1.94 Change in valuation allowance (25.95 ) (29.95 ) Total tax benefit (0.03 ) % — % |
Significant Components of Deferred Tax Assets | Significant components of the Company’s deferred tax assets are as follows (in thousands): December 31, 2019 2018 Deferred tax assets: Net operating losses $ 9,486 $ 602 Tax credit carryforwards 4,378 346 Accrued expenses 364 148 Intangibles 3,570 4,085 Lease liability 737 — Stock-based compensation 989 — Other — 14 Total deferred tax assets 19,524 5,195 Deferred tax liabilities: Operating lease right-of-use assets (468 ) — Fixed assets (228 ) — Total deferred tax liabilities (696 ) — Valuation allowance (18,828 ) (5,195 ) Net deferred tax assets $ — $ — |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the Company’s unrecognized tax benefits is as follows (in thousands): Year Ended Period from May 2, 2018 December 31, to December 31, 2019 2018 Balance at beginning of year $ 116 $ — (Decrease) related to prior year tax positions (20 ) — Increases related to current year tax positions 1,394 116 Balance at end of year $ 1,490 $ 116 |
Organization and Description _2
Organization and Description of Business - Additional Information (Detail) $ / shares in Units, $ in Thousands | Jul. 22, 2019USD ($)$ / sharesshares | Jul. 03, 2019 | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2019USD ($)Segment$ / sharesshares | Oct. 31, 2018$ / shares | Aug. 31, 2018$ / shares | May 02, 2018shares |
Organization And Basis Of Presentation [Line Items] | |||||||
Date of incorporation | May 2, 2018 | ||||||
Number of operating segment | Segment | 1 | ||||||
Reverse stock split ratio | 0.125 | ||||||
Proceeds from issuance of shares | $ | $ 1 | $ 0 | |||||
Preferred stock, par value | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||
Preferred stock, shares authorized | 10,000,000 | 0 | 10,000,000 | ||||
Common stock, par value | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||
Common stock, shares authorized | 200,000,000 | 180,000,000 | 200,000,000 | ||||
Accumulated deficit | $ | $ 17,348 | $ 69,901 | |||||
Cash, cash equivalents and investments | $ | $ 140,000 | ||||||
Series A Redeemable Convertible Preferred Stock | |||||||
Organization And Basis Of Presentation [Line Items] | |||||||
Redeemable stock, outstanding | 119,752,983 | 59,908,284 | 0 | 0 | |||
Common Stock | |||||||
Organization And Basis Of Presentation [Line Items] | |||||||
Number of shares issued | 625,000 | 5,000,000 | |||||
Shares issued, price per share | $ / shares | $ 0.0001 | ||||||
Redeemable common stock reclassified to equity | 1,859,151 | ||||||
IPO | |||||||
Organization And Basis Of Presentation [Line Items] | |||||||
Proceeds from issuance of shares | $ | $ 67,200 | ||||||
IPO | Common Stock | |||||||
Organization And Basis Of Presentation [Line Items] | |||||||
Number of shares issued | 5,000,000 | ||||||
Shares issued, price per share | $ / shares | $ 15 | ||||||
Number of redeemable convertible preferred stock converted into common stock | 14,969,118 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Summary Of Significant Accounting Policies [Line Items] | ||
Investments with original maturities at date of purchase to be cash equivalents | 3 months | |
Other than temporary declines in fair value of investments | $ 0 | |
Asset transfers Level 1 to Level 2 | 0 | |
Asset transfers Level 2 to Level 1 | 0 | |
Asset transfers into Level 3 | 0 | |
Asset transfers out of Level 3 | 0 | |
Liabilities transfers Level 1 to Level 2 | 0 | |
Liabilities transfers Level 2 to Level 1 | 0 | |
Liability transfers into Level 3 | 0 | |
Liability transfers out of Level 3 | 0 | |
Property and equipment, net | 1,372,000 | $ 0 |
Accumulated depreciation | 100,000 | $ 0 |
Leasehold Improvements | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Property and equipment, net | 1,300,000 | |
Furniture and Equipment | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Property and equipment, net | $ 200,000 | |
Minimum | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Percentage of collateralized deposits in treasury securities | 102.00% | |
Property and equipment, useful life | 3 years | |
Maximum | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Property and equipment, useful life | 5 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Outstanding Potentially Dilutive Shares Excluded from Calculation of Diluted Net Loss Per Share (Details) - shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive shares of stock | 3,756,461 | 550,781 |
Options to Purchase Common Stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive shares of stock | 3,366,812 | 0 |
Common Stock Subject to Repurchase | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive shares of stock | 389,649 | 550,781 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Financial Assets and Liabilities to Fair Value Measurement On Recurring Basis and Level of Input Measurement (Details) - Fair Value, Recurring Basis $ in Thousands | Dec. 31, 2019USD ($) |
Financial assets: | |
Fair value measurements | $ 138,603 |
Level 1 | |
Financial assets: | |
Fair value measurements | 10,621 |
Level 2 | |
Financial assets: | |
Fair value measurements | 127,982 |
Fair Value, Inputs, Level 3 | |
Financial assets: | |
Fair value measurements | 0 |
Money Market Fund | |
Financial assets: | |
Fair value measurements | 10,621 |
Money Market Fund | Level 1 | |
Financial assets: | |
Fair value measurements | 10,621 |
Money Market Fund | Level 2 | |
Financial assets: | |
Fair value measurements | 0 |
Money Market Fund | Fair Value, Inputs, Level 3 | |
Financial assets: | |
Fair value measurements | 0 |
Corporate Debt Securities | |
Financial assets: | |
Fair value measurements | 41,668 |
Corporate Debt Securities | Level 1 | |
Financial assets: | |
Fair value measurements | 0 |
Corporate Debt Securities | Level 2 | |
Financial assets: | |
Fair value measurements | 41,668 |
Corporate Debt Securities | Fair Value, Inputs, Level 3 | |
Financial assets: | |
Fair value measurements | 0 |
Commercial Paper | |
Financial assets: | |
Fair value measurements | 35,016 |
Commercial Paper | Level 1 | |
Financial assets: | |
Fair value measurements | 0 |
Commercial Paper | Level 2 | |
Financial assets: | |
Fair value measurements | 35,016 |
Commercial Paper | Fair Value, Inputs, Level 3 | |
Financial assets: | |
Fair value measurements | 0 |
U.S. Government Bonds | |
Financial assets: | |
Fair value measurements | 22,511 |
U.S. Government Bonds | Level 1 | |
Financial assets: | |
Fair value measurements | 0 |
U.S. Government Bonds | Level 2 | |
Financial assets: | |
Fair value measurements | 22,511 |
U.S. Government Bonds | Fair Value, Inputs, Level 3 | |
Financial assets: | |
Fair value measurements | 0 |
Asset Backed Securities | |
Financial assets: | |
Fair value measurements | 28,787 |
Asset Backed Securities | Level 1 | |
Financial assets: | |
Fair value measurements | 0 |
Asset Backed Securities | Level 2 | |
Financial assets: | |
Fair value measurements | 28,787 |
Asset Backed Securities | Fair Value, Inputs, Level 3 | |
Financial assets: | |
Fair value measurements | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - Fair Value, Recurring Basis - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Financial assets | $ 138,603 | |
Level 1 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Financial assets | $ 10,621 | |
Level 1 | Cash Equivalents | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Financial assets | $ 51,500 |
Financial Instruments - Summary
Financial Instruments - Summary of Fair Value and Amortized Cost of Cash Equivalents and Available-for-sale Investments by Major Security Type (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |
Cash equivalents and investments, Amortized cost | $ 138,447 |
Cash equivalents and investments, Unrealized gain | 157 |
Cash equivalents and investments, Unrealized loss | (1) |
Cash equivalents and investments, Estimated Fair Value | 138,603 |
Cash equivalents, Estimated Fair Value | 10,621 |
Investments, Estimated Fair Value | 127,982 |
Short-term investments | 104,690 |
Long-term investments | 23,292 |
Money Market Fund | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |
Cash equivalents, Amortized Cost | 10,621 |
Cash equivalents, Estimated Fair Value | 10,621 |
Corporate Debt Securities | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |
Investments, Amortized Cost | 41,556 |
Investments, Unrealized Gain | 113 |
Investments, Unrealized Loss | (1) |
Investments, Estimated Fair Value | 41,668 |
Commercial Paper | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |
Investments, Amortized Cost | 35,016 |
Investments, Unrealized Gain | 0 |
Investments, Unrealized Loss | 0 |
Investments, Estimated Fair Value | 35,016 |
U.S. Government Bonds | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |
Investments, Amortized Cost | 22,492 |
Investments, Unrealized Gain | 19 |
Investments, Unrealized Loss | 0 |
Investments, Estimated Fair Value | 22,511 |
Asset Backed Securities | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |
Investments, Amortized Cost | 28,762 |
Investments, Unrealized Gain | 25 |
Investments, Unrealized Loss | 0 |
Investments, Estimated Fair Value | $ 28,787 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Financial Instruments Owned At Fair Value [Abstract] | ||
Investments | $ 0 | |
Realized gains or losses on available-for-sale investments | $ 0 | |
Investments in continuous loss position for more than 12 months | 0 | |
Other-than-temporary impairment losses on available-for-sale investments | $ 0 |
Financial Instruments - Summa_2
Financial Instruments - Summary of Remaining Contractual Maturities of Available-for-sale Debt Securities (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Fair Value Disclosures [Abstract] | |
Due within one year | $ 104,690 |
One to two years | 21,297 |
Three years or more | 1,995 |
Total | $ 127,982 |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Payables And Accruals [Abstract] | ||
Accrued costs for Shire | $ 0 | $ 1,310 |
Accrued clinical trials | 4,795 | 785 |
Accrued professional service fees | 777 | 70 |
Accrued contract manufacturing and non-clinical costs | 1,540 | |
Accrued compensation and related benefits | 2,216 | 15 |
Total accrued expenses | $ 9,328 | $ 2,180 |
Asset Acquisitions - Additional
Asset Acquisitions - Additional Information (Details) | Nov. 05, 2018USD ($)ProductCandidate$ / sharesshares | Jul. 31, 2019USD ($) | Dec. 31, 2018USD ($)shares | Dec. 31, 2019USD ($)shares |
Asset Acquisitions [Line Items] | ||||
Accrued expenses | $ 2,180,000 | $ 9,328,000 | ||
Redeemable Common Stock | ||||
Asset Acquisitions [Line Items] | ||||
Temporary equity, shares issued | shares | 1,859,151 | 0 | ||
Shire Agreement | Shire | ||||
Asset Acquisitions [Line Items] | ||||
Number of product candidates | ProductCandidate | 2 | |||
Upfront payment | $ 7,500,000 | |||
Product sales milestone payments, payable | 30,000,000 | |||
Milestone payment | $ 2,500,000 | |||
Accrued milestones | $ 0 | |||
Shire Agreement | Shire | Maralixibat | ||||
Asset Acquisitions [Line Items] | ||||
Milestone payments, payable | 109,500,000 | |||
Milestone payments, payable upon approval | 25,000,000 | |||
Shire Agreement | Shire | Volixibat | ||||
Asset Acquisitions [Line Items] | ||||
Milestone payments, payable | $ 30,000,000 | |||
Shire Agreement | Shire | Redeemable Common Stock | ||||
Asset Acquisitions [Line Items] | ||||
Temporary equity, shares issued | shares | 1,859,151 | |||
Issuance of Series A convertible preferred stock at $1.00259507 per share, net of issuance costs of $23 | $ 7,000,000 | |||
Shares issued, price per share | $ / shares | $ 3.76 | |||
Transition Services Agreement | Shire | ||||
Asset Acquisitions [Line Items] | ||||
Accrued expenses | $ 2,100,000 | 0 | ||
Transition Services Agreement | Shire | Shire Provided Services | ||||
Asset Acquisitions [Line Items] | ||||
Research and development | 500,000 | 400,000 | ||
Transition Services Agreement | Shire | Pass-through Cost | ||||
Asset Acquisitions [Line Items] | ||||
Research and development | $ 1,600,000 | |||
Reduction of estimated expenses | 100,000 | |||
Assigned License Agreement | Satiogen Pharmaceuticals, Inc. | ||||
Asset Acquisitions [Line Items] | ||||
Milestone payments, payable | $ 10,500,000 | |||
Milestone payments, payable upon approval | 5,000,000 | |||
Milestone payment | $ 500,000 | |||
Accrued milestones | 0 | |||
Milestone payments, payable upon initiation | 500,000 | |||
Milestone payments, payable upon commercialization | 5,000,000 | |||
Assigned License Agreement | Sanofi-Aventis Deutschland GmbH | ||||
Asset Acquisitions [Line Items] | ||||
Milestone payments, payable | $ 36,000,000 | |||
Royalty obligations payment period | 10 years | |||
Milestones accrued | $ 0 |
Stockholders' Equity (Deficit)
Stockholders' Equity (Deficit) - Additional Information (Details) | Nov. 05, 2018shares | Jul. 31, 2019shares | Apr. 30, 2019shares | Oct. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2019Vote$ / sharesshares | Jul. 22, 2019$ / shares | Dec. 31, 2018$ / sharesshares | Aug. 31, 2018$ / shares |
Class of Stock [Line Items] | ||||||||
Common stock, par value | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||
Redeemable Common Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Number of shares issued | 0 | 1,859,151 | ||||||
Common Stock Agreement | Redeemable Common Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Number of shares issued | 1,859,151 | |||||||
Common Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Number of shares issued upon conversion of series A preferred stock | 14,969,118 | |||||||
Number of shares repurchased | 25,782 | |||||||
Number of shares subject to repurchase | 389,649 | 550,781 | ||||||
Common stock, voting rights | Each share of common stock is entitled to one voting right. | |||||||
Number of vote entitled for each common stockholder | Vote | 1 | |||||||
Common Stock | Founder | ||||||||
Class of Stock [Line Items] | ||||||||
Stock issued for services, shares | 1,187,500 | |||||||
Stock issued for services, value | $ | $ 950 | |||||||
Common Stock | Restricted Stock | Founder | ||||||||
Class of Stock [Line Items] | ||||||||
Stock issued for services, shares | 562,500 | |||||||
Vesting period | 4 years |
Stockholders' Equity (Deficit_2
Stockholders' Equity (Deficit) - Schedule of Common Stock Reserved for Issuance (Details) - shares | Dec. 31, 2019 | Dec. 31, 2018 |
Class of Stock [Line Items] | ||
Common stock reserved for issuance | 4,979,255 | 9,347,681 |
Series A Redeemable Convertible Preferred Stock | ||
Class of Stock [Line Items] | ||
Common stock reserved for issuance | 7,488,530 | |
Stock Options | ||
Class of Stock [Line Items] | ||
Common stock reserved for issuance | 3,366,812 | |
Reserved for Future Stock Awards or Option Grants | ||
Class of Stock [Line Items] | ||
Common stock reserved for issuance | 1,112,443 | 1,859,151 |
Reserved for Employee Stock Purchase Plan | ||
Class of Stock [Line Items] | ||
Common stock reserved for issuance | 500,000 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | Nov. 05, 2018 | Jul. 31, 2019 | Oct. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of common stock approved and reserved for issuance | 9,347,681 | 4,979,255 | |||
Common Stock | Founder | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock issued for services | 1,187,500 | ||||
Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of common stock approved and reserved for issuance | 3,366,812 | ||||
Expected dividend yield | 0.00% | ||||
Number of shares, Granted | 0 | 3,366,812 | |||
Total unrecognized stock-based compensation related to unvested stock option awards granted | $ 22.2 | ||||
Unrecognized stock-based compensation related to unvested stock, expected to recognize over weighted-average period | 3 years 1 month 6 days | ||||
Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized stock-based compensation related to unvested stock, expected to recognize over weighted-average period | 2 years 10 months 24 days | ||||
Share vested | 135,350 | ||||
Total unrecognized compensation expense related to unvested restricted stock | $ 1.1 | ||||
Restricted Stock | Founder | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Measurement date fair value for stock issued for services | $ 2.936 | ||||
Restricted Stock | Common Stock | Founder | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock issued for services | 562,500 | ||||
Total compensation cost | $ 1.7 | ||||
Vesting period | 4 years | ||||
2019 Equity Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of common stock approved and reserved for issuance | 1,401,443 | 1,112,443 | |||
Equity incentive plans, description | A total of 1,401,443 shares of common stock were approved to be initially reserved for issuance under the 2019 Plan, including 101,443 shares that remained available for issuance under the 2018 Plan as of July 17, 2019. Shares subject to outstanding awards under the 2018 Plan as of the effective date of the 2019 Plan that are subsequently canceled, forfeited or repurchased by the Company will be added to the shares reserved under the 2019 Plan. In addition, the number of shares of common stock available for issuance under the 2019 Plan will be automatically increased on the first day of each calendar year during the ten-year term of the 2019 Plan, beginning with January 1, 2020 and ending with January 1, 2029, by an amount equal to 5% of the outstanding number of shares of the Company’s common stock on December 31st of the preceding calendar year or such lesser amount as determined by the Company’s board of directors. As of December 31, 2019, 1,112,443 shares of common stock were available for issuance under the 2019 Plan. | ||||
Shares of common stock expiration term | 10 years | ||||
Shares of common stock beginning date | Jan. 1, 2020 | ||||
Shares of common stock ending date | Jan. 1, 2029 | ||||
Percentage of annual increase in common stock available for issuance | 5.00% | ||||
2018 Equity Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of common stock approved and reserved for issuance | 101,443 | ||||
2019 Employee Stock Purchase Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Equity incentive plans, description | A total of 500,000 shares of common stock were approved to be initially reserved for issuance under the ESPP. In addition, the number of shares of common stock available for issuance under the ESPP will be automatically increased on the first day of each calendar year during the first ten-years of the term of the ESPP, beginning with January 1, 2020 and ending with January 1, 2029, by an amount equal to the lessor of (i) 1% of the outstanding number of shares of common stock on December 31st of the preceding calendar year, (ii) 1,500,000 shares of common stock or (iii) such lesser amount as determined by the Company’s board of directors. The Company had 500,000 shares available for future issuance under the 2019 ESPP as of December 31, 2019. | ||||
Shares of common stock expiration term | 10 years | ||||
Shares of common stock beginning date | Jan. 1, 2020 | ||||
Shares of common stock ending date | Jan. 1, 2029 | ||||
Percentage of annual increase in common stock available for issuance | 1.00% | ||||
Stock issued for services | 500,000 | 500,000 | |||
Annual increase in common stock available for issuance, shares | 1,500,000 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Assumptions Used to Estimate Fair Value of Stock Option Awards Granted (Details) - Stock Options | 12 Months Ended |
Dec. 31, 2019$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price, minimum | $ 2.94 |
Exercise price, maximum | $ 15 |
Expected volatility, minimum | 73.88% |
Expected volatility, maximum | 84.59% |
Risk-free interest rate, minimum | 1.41% |
Risk-free interest rate, maximum | 2.46% |
Expected dividend yield | 0.00% |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected term (in years) | 5 years 6 months |
Grant date fair value of options granted | $ 5.10 |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected term (in years) | 6 years 3 months 18 days |
Grant date fair value of options granted | $ 10.46 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity (Details) - Stock Options - USD ($) $ / shares in Units, $ in Thousands | 8 Months Ended | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Options, Outstanding | |||
Number of shares, Outstanding, Beginning balance | 0 | ||
Number of shares, Granted | 0 | 3,366,812 | |
Number of shares, Exercised | 0 | ||
Number of shares, Canceled and forfeited | 0 | ||
Number of shares, Outstanding, Ending balance | 0 | 3,366,812 | 0 |
Vested and exercisable as of December 31, 2019 | 345,178 | ||
Weighted-average exercise price, Outstanding | |||
Weighted-average exercise price, Outstanding, Beginning balance | $ 0 | ||
Weighted-average exercise price, Granted | 5.14 | ||
Weighted-average exercise price, Exercised | 0 | ||
Weighted-average exercise price, Canceled and forfeited | 0 | ||
Weighted-average exercise price, Outstanding, Ending balance | $ 0 | 5.14 | $ 0 |
Weighted-average exercise price, Vested and exercisable | $ 2.99 | ||
Share-based Payment Award, Options, Additional Disclosures | |||
Outstanding as of December 31, 2018 | 9 years 3 months 18 days | 0 years | |
Granted | 9 years 3 months 18 days | ||
Vested and exercisable as of December 31, 2019 | 9 years 2 months 12 days | ||
Aggregate intrinsic value, Outstanding | $ 0 | $ 65,235 | $ 0 |
Aggregate intrinsic value, Vested and exercisable | $ 7,432 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Stock-based Compensation Reflected in Consolidated Statements of Operations (Details) - USD ($) $ in Thousands | 8 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Dec. 31, 2019 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation | $ 34 | $ 6,070 |
General and Administrative Expense | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation | 26 | 3,711 |
Research and Development Expense | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation | $ 8 | $ 2,359 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Nov. 30, 2019USD ($)ft² | Dec. 31, 2019USD ($) | Jan. 31, 2019USD ($) | Jan. 22, 2019ft² | Dec. 31, 2018Agreement | |
Lessee Lease Description [Line Items] | |||||
Area of office space | ft² | 5,600 | ||||
Term of lease | 4 years | ||||
Operating lease, option to extend, description | The lease term is approximately four years with an option to extend the term for one five-year term, which at the time was not reasonably assured of exercise and therefore, not included in the lease term. | ||||
Existence of option to extend | true | ||||
Term of extension of lease | 5 years | ||||
Tenant improvement allowance | $ 400 | ||||
Operating lease right-of-use assets | $ 2,361 | ||||
Lease liability | $ 3,648 | ||||
Weighted-average remaining lease term | 5 years 1 month 20 days | ||||
Weighted-average estimated incremental borrowing rate | 8.00% | ||||
Number of lease agreements executed | Agreement | 0 | ||||
Rent expense | $ 300 | ||||
Amended Operating Lease Agreement | |||||
Lessee Lease Description [Line Items] | |||||
Term of lease | 5 years | ||||
Tenant improvement allowance | $ 800 | ||||
Additional area of office space | ft² | 5,555 | ||||
Lease expiration, month and year | 2025-03 | ||||
Amended Operating Lease Agreement | Restatement Adjustment | |||||
Lessee Lease Description [Line Items] | |||||
Operating lease right-of-use assets | $ 600 | ||||
Lease liability | $ 600 |
Leases - Schedule of Undiscount
Leases - Schedule of Undiscounted Future Minimum Payments under Operating Leases (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 674 |
2021 | 865 |
2022 | 890 |
2023 | 918 |
2024 | 928 |
Thereafter | 230 |
Total undiscounted lease payments | 4,505 |
Less: imputed interest | (857) |
Total lease liability | $ 3,648 |
Income Taxes - Schedule of Loss
Income Taxes - Schedule of Losses before Income Taxes (Details) - USD ($) $ in Thousands | 8 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
U.S. loss before taxes | $ (17,348) | $ (52,654) |
Foreign loss before taxes | 0 | 122 |
Net loss before provision for income taxes | $ (17,348) | $ (52,532) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 8 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Dec. 31, 2019 | |
Income Tax [Line Items] | ||
Current tax provision related to foreign taxes | $ 21,000 | |
Provision for income taxes | $ 0 | 21,000 |
Valuation allowance, deferred tax asset, increase | 5,200,000 | 13,600,000 |
Unrecognized tax benefits that would impact effective tax rate | 100,000 | 1,500,000 |
Domestic Tax Authority | ||
Income Tax [Line Items] | ||
Operating loss carryforwards | 2,200,000 | 44,400,000 |
Deferred tax assets, tax credit carryforwards, research and development | 500,000 | $ 5,600,000 |
Research and development credit carryforwards expiration, beginning year | 2038 | |
State and Local Jurisdiction | California Franchise Tax Board | ||
Income Tax [Line Items] | ||
Operating loss carryforwards | 2,200,000 | $ 2,200,000 |
Operating loss carryforwards expiration, beginning year | 2038 | |
Deferred tax assets, tax credit carryforwards, research and development | $ 12,000 | $ 300,000 |
Income Taxes - Summary of Recon
Income Taxes - Summary of Reconciliation of Federal Statutory Income Tax Rate (Details) | 8 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Federal statutory income tax rate | 21.00% | 21.00% |
State tax | 7.03% | (1.62%) |
Permanent differences | (0.02%) | (0.78%) |
Tax credits | 1.94% | 7.32% |
Change in valuation allowance | (29.95%) | (25.95%) |
Total tax benefit | 0.00% | (0.03%) |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Deferred Tax Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Net operating losses | $ 9,486 | $ 602 |
Tax credit carryforwards | 4,378 | 346 |
Accrued expenses | 364 | 148 |
Intangibles | 3,570 | 4,085 |
Lease liability | 737 | 0 |
Stock-based compensation | 989 | 0 |
Other | 0 | 14 |
Total deferred tax assets | 19,524 | 5,195 |
Deferred tax liabilities: | ||
Operating lease right-of-use assets | (468) | 0 |
Fixed assets | (228) | 0 |
Total deferred tax liabilities | (696) | 0 |
Valuation allowance | (18,828) | (5,195) |
Net deferred tax assets | $ 0 | $ 0 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 8 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Balance at beginning of year | $ 116 | |
(Decrease) related to prior year tax positions | (20) | |
Increases related to current year tax positions | $ 116 | 1,394 |
Balance at end of year | $ 116 | $ 1,490 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 13, 2020 | Dec. 31, 2018 | Dec. 31, 2019 |
Subsequent Event [Line Items] | |||
Proceeds from issuance of shares | $ 1 | $ 0 | |
Common Stock | |||
Subsequent Event [Line Items] | |||
Number of shares issued | 625,000 | 5,000,000 | |
Shares issued, price per share | $ 0.0001 | ||
Subsequent Event | Follow-on Public Offering | |||
Subsequent Event [Line Items] | |||
Proceeds from issuance of shares | $ 44,700 | ||
Subsequent Event | Follow-on Public Offering | Common Stock | |||
Subsequent Event [Line Items] | |||
Number of shares issued | 2,400,000 | ||
Shares issued, price per share | $ 20 |