Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 31, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Registrant Name | ORIC PHARMACEUTICALS, INC. | |
Trading Symbol | ORIC | |
Entity Central Index Key | 0001796280 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Stock, $0.0001 par value per share | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 29,956,050 | |
Entity File Number | 001-39269 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 47-1787157 | |
Entity Address, Address Line One | 240 E. Grand Ave | |
Entity Address, Address Line Two | 2nd Floor | |
Entity Address, City or Town | South San Francisco | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94080 | |
City Area Code | 650 | |
Local Phone Number | 388-5600 | |
Document Quarterly Report | true | |
Document Transition Report | false |
BALANCE SHEETS
BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 196,642 | $ 89,159 |
Prepaid expenses and other current assets | 2,586 | 840 |
Total current assets | 199,228 | 89,999 |
Property and equipment, net | 1,978 | 2,241 |
Deferred offering costs | 1,343 | |
Other assets | 319 | 510 |
Total assets | 201,525 | 94,093 |
Current liabilities: | ||
Accounts payable | 1,389 | 152 |
Accrued other liabilities | 4,389 | 5,202 |
Total current liabilities | 5,778 | 5,354 |
Deferred rent - long term | 500 | 765 |
Total liabilities | 6,278 | 6,119 |
Commitments and contingencies (Note 8) | ||
Stockholders' equity (deficit): | ||
Common stock, $0.0001 par value; 1,000,000,000 shares and 26,750,000 shares authorized at June 30, 2020 and December 31, 2019, respectively; 29,924,461 shares and 1,984,222 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively | 3 | |
Additional paid-in capital | 307,830 | 2,606 |
Accumulated deficit | (112,586) | (92,690) |
Total stockholders' equity (deficit) | 195,247 | (90,084) |
Total liabilities, preferred stock and stockholders' equity (deficit) | $ 201,525 | 94,093 |
Series A Convertible Preferred Stock | ||
Convertible preferred stock: | ||
Convertible preferred stock | 15,431 | |
Series B Convertible Preferred Stock | ||
Convertible preferred stock: | ||
Convertible preferred stock | 53,906 | |
Series C Convertible Preferred Stock | ||
Convertible preferred stock: | ||
Convertible preferred stock | 53,172 | |
Series D Convertible Preferred Stock | ||
Convertible preferred stock: | ||
Convertible preferred stock | $ 55,549 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Convertible preferred stock, authorized | 20,348,788 | |
Convertible preferred stock, issued | 19,278,606 | |
Convertible preferred stock, outstanding | 19,278,606 | |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 1,000,000,000 | 26,750,000 |
Common stock, shares, issued | 29,924,461 | 1,984,222 |
Common stock, shares, outstanding | 29,924,461 | 1,984,222 |
Series A Convertible Preferred Stock | ||
Convertible preferred stock, par value | $ 0.0001 | $ 0.0001 |
Convertible preferred stock, authorized | 0 | 3,862,500 |
Convertible preferred stock, issued | 0 | 3,862,500 |
Convertible preferred stock, outstanding | 0 | 3,862,500 |
Aggregate liquidation preference | $ 0 | $ 15,450 |
Series B Convertible Preferred Stock | ||
Convertible preferred stock, par value | $ 0.0001 | $ 0.0001 |
Convertible preferred stock, authorized | 0 | 6,750,000 |
Convertible preferred stock, issued | 6,749,999 | |
Convertible preferred stock, outstanding | 0 | 6,749,999 |
Aggregate liquidation preference | $ 0 | $ 54,000 |
Series C Convertible Preferred Stock | ||
Convertible preferred stock, par value | $ 0.0001 | $ 0.0001 |
Convertible preferred stock, authorized | 0 | 4,448,788 |
Convertible preferred stock, issued | 4,448,780 | |
Convertible preferred stock, outstanding | 0 | 4,448,780 |
Aggregate liquidation preference | $ 0 | $ 53,385 |
Series D Convertible Preferred Stock | ||
Convertible preferred stock, par value | $ 0.0001 | $ 0.0001 |
Convertible preferred stock, authorized | 0 | 5,287,500 |
Convertible preferred stock, issued | 4,217,327 | |
Convertible preferred stock, outstanding | 0 | 4,217,327 |
Aggregate liquidation preference | $ 0 | $ 55,669 |
STATEMENTS OF OPERATIONS AND CO
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Operating expenses: | ||||
Research and development | $ 7,723 | $ 5,040 | $ 14,977 | $ 10,252 |
General and administrative | 3,400 | 1,315 | 5,325 | 2,449 |
Total operating expenses | 11,123 | 6,355 | 20,302 | 12,701 |
Loss from operations | (11,123) | (6,355) | (20,302) | (12,701) |
Other income: | ||||
Interest income, net | 25 | 317 | 266 | 578 |
Other income | 74 | 73 | 140 | 143 |
Total other income | 99 | 390 | 406 | 721 |
Net loss and comprehensive loss | $ (11,024) | $ (5,965) | $ (19,896) | $ (11,980) |
Net loss per share, basic and diluted | $ (0.51) | $ (3.19) | $ (1.68) | $ (6.51) |
Weighted-average shares outstanding, basic and diluted | 21,627,361 | 1,872,309 | 11,808,103 | 1,841,233 |
STATEMENTS OF CONVERTIBLE PREFE
STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) (Unaudited) - USD ($) $ in Thousands | Total | Initial Public Offering | Series A Convertible Preferred Stock | Series B Convertible Preferred Stock | Series C Convertible Preferred Stock | Series D Convertible Preferred Stock | Common Stock | Common StockInitial Public Offering | Additional Paid-in Capital | Additional Paid-in CapitalInitial Public Offering | Accumulated Deficit |
Beginning Balance at Dec. 31, 2018 | $ 15,431 | $ 53,906 | $ 37,929 | ||||||||
Beginning Balance (in shares) at Dec. 31, 2018 | 3,862,500 | 6,749,999 | 3,177,271 | ||||||||
Beginning Balance (in shares) at Dec. 31, 2018 | 1,802,134 | ||||||||||
Beginning Balance at Dec. 31, 2018 | $ (64,426) | $ 1,381 | $ (65,807) | ||||||||
Issuance of preferred stock, net of issuance costs | $ 15,243 | ||||||||||
Issuance of preferred stock, net of issuance costs (in shares) | 1,271,509 | ||||||||||
Exercise of common stock options and vesting of early exercised common stock options | 21 | 21 | |||||||||
Exercise of common stock options and vesting of early exercised common stock options (in shares) | 26,159 | ||||||||||
Stock-based compensation expense | 191 | 191 | |||||||||
Net loss | (6,015) | (6,015) | |||||||||
Ending Balance at Mar. 31, 2019 | $ 15,431 | $ 53,906 | $ 53,172 | ||||||||
Ending Balance (in shares) at Mar. 31, 2019 | 3,862,500 | 6,749,999 | 4,448,780 | ||||||||
Ending Balance at Mar. 31, 2019 | (70,229) | 1,593 | (71,822) | ||||||||
Ending Balance (in shares) at Mar. 31, 2019 | 1,828,293 | ||||||||||
Issuance of preferred stock, net of issuance costs | $ 49,864 | ||||||||||
Issuance of preferred stock, net of issuance costs (in shares) | 3,777,564 | ||||||||||
Exercise of common stock options and vesting of early exercised common stock options | 59 | 59 | |||||||||
Exercise of common stock options and vesting of early exercised common stock options (in shares) | 111,884 | ||||||||||
Stock-based compensation expense | 190 | 190 | |||||||||
Net loss | (5,965) | (5,965) | |||||||||
Ending Balance at Jun. 30, 2019 | $ 15,431 | $ 53,906 | $ 53,172 | $ 49,864 | |||||||
Ending Balance (in shares) at Jun. 30, 2019 | 3,862,500 | 6,749,999 | 4,448,780 | 3,777,564 | |||||||
Ending Balance at Jun. 30, 2019 | $ (75,945) | 1,842 | (77,787) | ||||||||
Ending Balance (in shares) at Jun. 30, 2019 | 1,940,177 | ||||||||||
Beginning Balance at Dec. 31, 2019 | $ 15,431 | $ 53,906 | $ 53,172 | $ 55,549 | |||||||
Beginning Balance (in shares) at Dec. 31, 2019 | 19,278,606 | 3,862,500 | 6,749,999 | 4,448,780 | 4,217,327 | ||||||
Beginning Balance (in shares) at Dec. 31, 2019 | 1,984,222 | 1,984,222 | |||||||||
Beginning Balance at Dec. 31, 2019 | $ (90,084) | 2,606 | (92,690) | ||||||||
Exercise of common stock options and vesting of early exercised common stock options | 12 | 12 | |||||||||
Exercise of common stock options and vesting of early exercised common stock options (in shares) | 13,433 | ||||||||||
Stock-based compensation expense | 527 | 527 | |||||||||
Net loss | (8,872) | (8,872) | |||||||||
Ending Balance at Mar. 31, 2020 | $ 15,431 | $ 53,906 | $ 53,172 | $ 55,549 | |||||||
Ending Balance (in shares) at Mar. 31, 2020 | 3,862,500 | 6,749,999 | 4,448,780 | 4,217,327 | |||||||
Ending Balance at Mar. 31, 2020 | (98,417) | 3,145 | (101,562) | ||||||||
Ending Balance (in shares) at Mar. 31, 2020 | 1,997,655 | ||||||||||
Exercise of common stock options and vesting of early exercised common stock options | 39 | 39 | |||||||||
Exercise of common stock options and vesting of early exercised common stock options (in shares) | 23,200 | ||||||||||
Stock-based compensation expense | 1,381 | 1,381 | |||||||||
Initial public offering of common stock | $ 138,000 | $ 1 | $ 137,999 | ||||||||
Initial public offering of common stock (in shares) | 8,625,000 | ||||||||||
Issuance costs associated with initial public offering | $ (12,790) | $ (12,790) | |||||||||
Conversion to Common Stock | $ (15,431) | $ (53,906) | $ (53,172) | $ (55,549) | |||||||
Conversion to Common Stock (in shares) | (3,862,500) | (6,749,999) | (4,448,780) | (4,217,327) | |||||||
Conversion to Common Stock | 178,058 | $ 2 | 178,056 | ||||||||
Conversion to Common Stock (in shares) | 19,278,606 | ||||||||||
Net loss | (11,024) | (11,024) | |||||||||
Ending Balance (in shares) at Jun. 30, 2020 | 0 | 0 | 0 | 0 | |||||||
Ending Balance at Jun. 30, 2020 | $ 195,247 | $ 3 | $ 307,830 | $ (112,586) | |||||||
Ending Balance (in shares) at Jun. 30, 2020 | 29,924,461 | 29,924,461 |
STATEMENTS OF CONVERTIBLE PRE_2
STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) (Unaudited) (Parenthetical) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Series C Convertible Preferred Stock | |
Preferred stock, issuance costs | $ 213 |
STATEMENTS OF CASH FLOWS (Unaud
STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities: | ||
Net loss | $ (19,896) | $ (11,980) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 496 | 488 |
Share-based compensation expense | 1,908 | 381 |
Loss on fixed asset disposal | 3 | |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other current assets | (1,746) | (129) |
Accounts payable and accrued other liabilities | 1,375 | 212 |
Net cash used in operating activities | (17,863) | (11,025) |
Cash flows from investing activities: | ||
Acquisitions of property and equipment | (206) | (493) |
Proceeds from notes receivable | 193 | |
Net cash used in investing activities | (13) | (493) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock pursuant to initial public offering, gross | 138,000 | |
Issuance costs associated with initial public offering | (12,692) | |
Proceeds from issuance of preferred stock | 65,122 | |
Issuance cost associated with preferred stock | (15) | |
Proceeds from stock option exercises | 51 | 80 |
Net cash provided by financing activities | 125,359 | 65,187 |
Net increase in cash and cash equivalents | 107,483 | 53,669 |
Cash and cash equivalents, beginning of period | 89,159 | 42,636 |
Cash and cash equivalents, end of period | 196,642 | 96,305 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Conversion of preferred stock to common stock | 178,058 | |
Amounts accrued for purchase of property and equipment | $ 27 | 193 |
Amounts accrued for preferred stock issuance costs | $ 109 |
Description of the Business
Description of the Business | 6 Months Ended |
Jun. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Description of the Business | 1. Description of the Business ORIC Pharmaceuticals, Inc. (ORIC or the Company) is a clinical-stage biopharmaceutical company dedicated to improving patients’ lives by O vercoming R esistance I n C ancer Since inception, the Company has devoted its primary efforts to raising capital and research and development activities and has incurred significant operating losses and negative cash flows from operations. As of June 30, 2020, the Company had an accumulated deficit of $112.6 million. Through June 30, 2020, all of the Company’s financial support has been provided primarily from the sale of convertible preferred stock and proceeds from the issuance of common stock. As the Company continues its expansion, it may seek additional financing and/or strategic investments, however, there can be no assurance that any additional financing or strategic investments will be available to the Company on acceptable terms, if at all. If events or circumstances occur such that the Company does not obtain additional funding, it will most likely be required to reduce its plans and/or certain discretionary spending, which could have a material adverse effect on the Company’s ability to achieve its intended business objectives. The accompanying financial statements do not include any adjustments that might be necessary if it were unable to continue as a going concern. Management believes that it has sufficient working capital on hand to fund operations through at least the next twelve months from the date of the issuance of these unaudited interim financial statements. Initial Public Offering and Related Transaction On April 28, 2020, the Company completed an initial public offering (IPO) selling 8,625,000 shares of common stock, which includes the full exercise by the underwriters of their option to purchase up to 1,125,000 additional shares, at a price of $16.00 per share resulting in gross proceeds of $138.0 million. After deducting underwriting discounts and commissions and other offering expenses related to the IPO of $12.8 million, the net proceeds to the Company from the transaction were $125.2 million. In connection with the IPO, all shares of convertible preferred stock outstanding at the time of the IPO converted into 19,278,606 shares of common stock. On April 21, 2020, the Company amended its certificate of incorporation to effect a one-for- four |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | 2. Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information and with the instructions of the Securities and Exchange Commission (SEC) on Form 10-Q and Rule 10-01 of Regulation S-X. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP, have been omitted. The accompanying unaudited financial statements include all known adjustments necessary for a fair presentation of the results of interim periods as required by GAAP. These adjustments consist primarily of normal recurring accruals and estimates that impact the carrying value of assets and liabilities. Operating results for the period ended June 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020, particularly in light of the novel coronavirus pandemic, or COVID-19, and its impact on domestic and global economies. To limit the spread of COVID-19, governments have taken various actions including the issuance of stay-at-home orders and physical distancing guidelines. Accordingly, businesses have adjusted, reduced or suspended operating activities. Beginning the week of March 16, 2020, the majority of the Company’s workforce began working from home. Disruptions caused by the COVID-19 pandemic, including The accompanying unaudited financial statements should be read in conjunction with the audited financial statements and the related notes thereto for the year ended December 31, 2019, which are included in the Company’s final prospectus filed with the SEC pursuant to Rule 424(b)(4) on April 24, 2020 under the Securities Act of 1933, as amended (the Securities Act). Use of Estimates The preparation of the Company’s financial statements in conformity with GAAP requires management to make estimates and assumptions that impact the reported amounts of assets, liabilities, expenses, and the disclosure of contingent assets and liabilities in the Company’s financial statements and accompanying notes. These estimates and assumptions are based on current facts, historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the recording of expenses that are not readily apparent from other sources. Actual results may differ materially from these estimates. Concentration of Credit Risk Financial instruments, which potentially subject the Company to concentration of credit risk, consist primarily of cash and cash equivalents. The Company maintains deposits in federally insured financial institutions in excess of federally insured limits. The Company is exposed to credit risk in the event of default by the financial institutions holding its cash and cash equivalents that are recorded on its balance sheets. The Company mitigates its risk by investing in high-grade instruments and limiting the concentration in any one issuer, which limits its exposure. The carrying amounts of cash and cash equivalents, prepaid expenses, accounts payable and accrued other liabilities are reasonable estimates of their fair value because of the short maturity of these items. Cash and Cash Equivalents The Company considers all highly liquid investments with maturities of 90 days or less at the time of purchase that are readily convertible into cash as cash equivalents. These investments may include money market funds, securities issued by U.S. Government agencies, corporate debt securities and commercial paper. Research and Development Expenses and Accrued Research and Development Expenses The Company is required to estimate its expenses resulting from its obligations under contracts with vendors, consultants, contract research organizations (CRO), and contract manufacturing organizations (CMO) in connection with conducting research and development activities. The financial terms of these contracts vary from contract to contract and may result in payment flows that do not match the periods over which materials or services are provided under such contracts. Research and development costs are expensed in the period in which they are incurred. External costs consist primarily of payments to outside CROs, CMOs, clinical trial sites and central laboratories in connection with the Company’s discovery and preclinical activities, process development, clinical manufacturing and clinical development activities. External expenses are recognized based on an evaluation of the progress to completion of specific tasks using information provided to the Company by its service providers or its estimate of the level of service that has been performed at each reporting date. The Company allocates external costs by program, clinical or preclinical. Internal costs consist primary of employee-related costs, laboratory supplies, facilities, depreciation and costs related to compliance with regulatory requirements. The Company does not allocate internal costs by program because these costs are deployed across multiple programs and, as such, are not separately classified. Deferred Offering Costs The Company capitalizes costs that are directly associated with equity financings until such financings are consummated at which time such costs are recorded against the gross proceeds of the offering. Should an in-process equity financing be abandoned, the deferred offering costs will be expensed immediately as a charge to operating expenses in the statement of operations and comprehensive loss. Net Loss Per Share Basic net loss per common share is calculated by dividing the net loss by the weighted-average number of common shares outstanding during the period, without consideration of potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss by the weighted-average number of common shares and potentially dilutive securities outstanding for the period. As the Company has reported a net loss for all periods presented, diluted net loss per common share is the same as basic net loss per common share for those periods. The following table sets forth the computation of the basic and diluted net loss per share (in thousands, except share and per share amounts). Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Numerator Net loss $ (11,024 ) $ (5,965 ) $ (19,896 ) $ (11,980 ) Denominator Weighted average shares outstanding used in computing net loss per share, basic and diluted 21,627,361 1,872,309 11,808,103 1,841,233 Net loss per share, basic and diluted $ (0.51 ) $ (3.19 ) $ (1.68 ) $ (6.51 ) The following outstanding shares of potentially dilutive securities were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been anti-dilutive: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Options to purchase common stock 3,947,577 1,801,095 3,947,577 1,801,095 Convertible preferred stock — 18,838,843 — 18,838,843 Total 3,947,577 20,639,938 3,947,577 20,639,938 Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (FASB) under its accounting standard codifications (ASC) or other standard setting bodies and adopted by the Company as of the specified effective date, unless otherwise discussed below. New Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) Codification Improvements to Topic 842, Leases Leases (Topic 842): Targeted Improvements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses ( Topic 326 ) (ASC 326): Measurement of Credit Losses on Financial Instruments , which introduced the expected credit losses methodology for the measurement of credit losses on financial assets measured at amortized cost basis, replacing the previous incurred loss methodology. The amendments in Update 2016-13 added Topic 326, Financial Instruments—Credit Losses, and made several consequential amendments to the Codification. Update 2016-13 also modified the accounting for available-for-sale debt securities, which must be individually assessed for credit losses when fair value is less than the amortized cost basis, in accordance with Subtopic 326-30, Financial Instruments— Credit Losses—Available-for-Sale Debt Securities. The guidance is effective for annual periods beginning after December 15, 2019, including interim periods within those years . Since the Company has elected to use the extended transition period under the JOBS Act available to emerging growth companies (E GC s) , the ASU is effective for the Company for fiscal years beginning after December 15, 2020. The Company expects to adopt the new standard in the first quarter of 2021. The Company is currently evaluating the impact the adoption of this standard will have on its financial statements and related disclosures. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes The Company expects to adopt the new standard in the first quarter of 2022. and related disclosures |
Property and Equipment, Net
Property and Equipment, Net | 6 Months Ended |
Jun. 30, 2020 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | 3. Property and Equipment, net Property and equipment, net consisted of the following (in thousands): June 30, 2020 December 31, 2019 Lab equipment $ 3,933 $ 3,748 Leasehold improvements 1,710 1,710 Computer hardware and software 206 158 Furniture and fixtures 140 140 Total property and equipment, gross 5,989 5,756 Less accumulated depreciation (4,011 ) (3,515 ) Total property and equipment, net $ 1,978 $ 2,241 |
Accrued Other Liabilities
Accrued Other Liabilities | 6 Months Ended |
Jun. 30, 2020 | |
Accrued Liabilities Current [Abstract] | |
Accrued Other Liabilities | 4. Accrued Other Liabilities Accrued other liabilities consisted of the following (in thousands): June 30, 2020 December 31, 2019 Accrued compensation $ 1,604 $ 1,883 Accrued clinical development costs 901 484 Accrued manufacturing costs 569 479 Deferred rent - short-term 523 495 Accrued professional fees 447 338 Other accruals 345 279 Accrued deferred financing costs — 1,244 Total accrued other liabilities $ 4,389 $ 5,202 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 5. Fair Value Measurements 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. At June 30, 2020 and December 31, 2019, the carrying amounts of the Company’s financial instruments, which include cash and cash equivalents, accounts payable and accrued expenses, approximate fair value because of the short term nature of these instruments. Included in cash and cash equivalents at June 30, 2020 and December 31, 2019 are money market funds with a carrying value and fair value of $196.6 $88.1 As of June 30, 2020 and December 31, 2019, the Company did not hold any Level 2 or Level 3 financial assets. |
Convertible Preferred Stock
Convertible Preferred Stock | 6 Months Ended |
Jun. 30, 2020 | |
Temporary Equity Disclosure [Abstract] | |
Convertible Preferred Stock | 6. Convertible Preferred Stock Prior to its conversion to common stock in connection with the Company’s IPO in April 2020, the Company’s convertible preferred stock was classified as temporary equity on the Company’s balance sheets in accordance with authoritative guidance. Convertible preferred stock authorized and issued and its principal terms as of December 31, 2019 consisted of the following (in thousands, except share and per share amounts): As of December 31, 2019 Shares Authorized Shares Issued and Outstanding Issue Period Issue Price per Share Dividend Annual Rate per Share Aggregate Liquidation Preference Series A 3,862,500 3,862,500 2014 - 2015 $ 4.00 $ 0.32 $ 15,450 Series B 6,750,000 6,749,999 2015 - 2016 $ 8.00 $ 0.64 $ 54,000 Series C 4,448,788 4,448,780 2018 - 2019 $ 12.00 $ 0.96 $ 53,385 Series D 5,287,500 4,217,327 2019 $ 13.20 $ 1.056 $ 55,669 Total 20,348,788 19,278,606 In connection with the Company’s IPO in April 2020, all outstanding shares of the convertible preferred stock converted into 19,278,606 shares of common stock and the related carrying value was reclassified to common stock and additional paid-in capital. There were no shares of convertible preferred stock outstanding as of the closing of the IPO. |
Equity Incentive Plans and Stoc
Equity Incentive Plans and Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Equity Incentive Plans and Stock-Based Compensation | 7. Equity Incentive Plans and Stock-Based Compensation Equity Incentive Plans In February 2020, the Company’s Board of Directors adopted, and its stockholders approved, the 2020 Equity Incentive Plan (the 2020 Plan), which became effective in April 2020 in connection with its IPO. Upon adoption of the 2020 Plan, the Company restricted the grant of future equity awards under its 2014 Equity Incentive Plan, as amended and restated (the 2014 Plan). The 2020 Plan provides for the grants of stock options and other equity-based awards to employees, non-employee directors, and consultants of the Company. A total of Stock options granted under the 2020 Plan and the 2014 Plan become exercisable at various dates as determined by the Company’s Board of Directors or its authorized committee and will expire no more than ten years from their date of grant. Stock options generally vest over a four-year As of June 30, 2020, there were 1,559,427 shares available for future issuance under the 2020 Plan. As of December 31, 2019, there were 203,696 shares available for future issuance under the 2014 Plan. The following table summarizes the option activity for the six months ended June 30, 2020: Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2019 2,683,441 $ 3.75 Granted 1,350,759 16.42 Exercised (36,633 ) 1.54 Forfeited and cancelled (49,990 ) 3.05 Outstanding at June 30, 2020 3,947,577 $ 8.13 9.0 $ 100,761 Exercisable at June 30, 2020 844,559 $ 1.85 8.0 $ 26,926 Certain stock options granted under the Company’s 2014 Plan provided option holders the ability to early exercise their stock options prior to vesting. The shares of common stock granted from the early exercise of unvested stock options are restricted and continue to vest in accordance with the original vesting schedule. The Company has the option to repurchase any unvested shares at the original purchase price upon any voluntary or involuntary termination. The shares purchased by the employees and non-employees pursuant to the early exercise of stock options are not deemed, for accounting purposes, to be outstanding or issued until those shares vest. The cash received in exchange for exercised and unvested shares related to stock options granted is recorded as a liability for the early exercise of stock options on the accompanying balance sheets and will be transferred into common stock and additional paid-in capital as the shares vest. As of June 30, 2020 and December 31, 2019, there were 14,768 shares and 29,579 shares subject to repurchase by the Company, respectively. As of June 30, 2020 and December 31, 2019, the Company recorded less than $0.1 million of liabilities associated with shares issued with repurchase rights. Employee Stock Purchase Plan In February 2020, the Company’s Board of Directors adopted, and its stockholders approved, the 2020 Employee Stock Purchase Plan (ESPP). The ESPP became effective in connection with the Company’s IPO however no offering period or purchase period under the ESPP will begin unless and until otherwise determined by the Company’s Board of Directors. A total of 290,000 shares of common stock were reserved for future issuance under the ESPP. Further, the number of shares of common stock available for issuance under the ESPP will automatically increase on the first day of each fiscal year following the fiscal year in which the first offering period under the ESPP commences in an amount equal to the lessor of (1) 500,000 shares, (2) 1% of the outstanding shares of the Company’s common stock on the last day of the immediately preceding fiscal year, or (3) such other amount as determined by the Company’s Board of Directors. As of June 30, 2020, no shares had been issued pursuant to the ESPP and there were no active offering periods or purchase periods. Stock-Based Compensation Expense Stock options are valued using the Black-Scholes Merton option pricing model on the date of grant. This option pricing model involves a number of estimates, including the expected lives of the stock options, the Company’s anticipated stock volatility and interest rates. Stock-based compensation expense is recognized using the ratable straight-line method over the vesting period. Forfeitures are recognized as they occur. The Company determines the assumptions used in the option pricing model in the following manner: • Expected term. T he expected term represents the period of time that options are expected to be outstanding. Because the Company does not have sufficient historical exercise behavior, it determines the expected life assumption using the simplified method which is an average of the contractual term of the option and its vesting period. • Expected volatility . Due to the Company’s limited historical stock price volatility data, the expected volatility assumption is based on volatilities of a peer group of similar companies whose share prices are publicly available. The peer group was developed based on companies in the biotechnology industry. The Company will continue to apply this process until a sufficient amount of historical information regarding the volatility of its own stock price becomes available . • Risk-free interest rate. The risk-free interest rate is based on the U.S. Treasury yield in effect at the time of grant for zero coupon U.S. Treasury notes with maturities similar to the expected term of the awards. • Expected dividend yield. The Company bases the expected dividend yield assumption on the fact that it has never paid cash dividends and has no present intention to pay cash dividends and, therefore, used an expected dividend yield of zero . Prior to the Company’s IPO, the fair value of the Company’s common stock underlying the stock options was determined by the Board of Directors with assistance from management and, in part, on input from an independent third-party valuation firm. The Board of Directors determined the fair value of common stock by considering a number of objective and subjective factors, including valuations of comparable companies, sales of convertible preferred stock, operating and financial performance, the lack of liquidity of the Company’s common stock and the general and industry-specific economic outlook. Subsequent to the Company’s IPO, the fair value of the Company’s common stock is determined based on its closing market price. The fair value of stock option awards to employees, executives, directors, and other service providers was estimated at the date of grant using the Black-Scholes Merton option pricing model with the following weighted-average assumptions. Six Months Ended June 30, 2020 2019 Stock price $16.00 - $35.92 $1.60 Risk-free interest rate 4.00% - 4.45% 2.58% Expected volatility 88.01% - 88.06% 100.5% Expected term (in years) 5.50 - 6.08 6.10 Expected dividend yield 0% 0% The Company recognized stock-based compensation expense of $1.4 million and $0.2 3.10 years The table below summarizes the total stock-based compensation expense included in the Company’s statements of operations for stock options for the periods presented (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Research and development $ 541 $ 59 $ 814 $ 117 General and administrative 840 131 1,094 264 Total Stock-Based Compensation Expense $ 1,381 $ 190 $ 1,908 $ 381 |
Commitment and Contingencies
Commitment and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 8. Commitments and Contingencies Operating Leases Rent expense is recorded on a straight-line basis over the term of the respective lease. Total rent expense for South San Francisco and San Diego locations was $0.3 Future minimum lease payments under non-cancelable operating leases as of June 30, 2020 were as follows (in thousands): Operating Leases 2020 remaining six months $ 956 2021 1,871 2022 686 Total minimum lease payments $ 3,513 Litigation From time to time, the Company may be involved in legal proceedings arising in the ordinary course of business. The Company believes there is no threatened litigation or litigation pending that could have, individually or in the aggregate, a material adverse effect on the Company’s financial position, results of operations or cash flows. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 9. Subsequent Events On August 3, 2020, the Company entered into a license agreement (Mirati License Agreement) with Mirati Therapeutics, Inc, a Delaware corporation (“Mirati”). The Mirati License Agreement gives the Company access to Mirati’s preclinical stage core p olycomb r epressive c omplex 2 protein (PRC2) program, including a lead product candidate now designated as ORIC-944. Under the Mirati License Agreement, Mirati granted the Company a worldwide, exclusive , sublicensable, royalty-free license under Mirati’s rights to certain patents and patent applications directed to certain small molecule compounds that bind to and inhibit PRC2 and certain related know-how, in each case, to develop and commercialize certain licensed compounds and licensed products incorporating any such compound. Under the Mirati License Agreement, the Company is wholly responsible for development and commercialization of licensed products. In addition, the Company is obligated to use commercially reasonable efforts to develop and commercialize at least one licensed product in certain major markets. For a limited period of time, both Mirati and the Company are prohibited from researching, developing or commercializing any other compound or product whose principal mechanism of action is to modulate or inhibit PRC2 by directly binding thereto. The Company’s financial obligations under the Mirati License Agreement are comprised of an upfront payment of 588,235 shares of ORIC common stock issued pursuant to a stock issuance agreement (Stock Agreement) entered into between the parties on August 3, 2020. The number of shares issued pursuant to the Stock Agreement were based on a price of $34.00 per share, representing a premium of 10% to the 60-day trailing volume weighted average trading price of the Company’s common stock. The shares were issued in a private placement in reliance on Section 4(a)(2) of the Securities Act of 1933, as amended, for transactions by an issuer not involving any public offering. is subject to certain transfer restrictions, and the parties agreed to negotiate and enter into a registration rights agreement, with respect to the shares. Unless earlier terminated, the Mirati License If Mirati terminates the Mirati License Agreement, or the Company terminates the Mirati License Agreement without cause, then the Company is obligated to assign to Mirati, or grant an exclusive license to Mirati with respect to, certain of its patents, know-how and regulatory filings directed to licensed compounds and licensed products. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information and with the instructions of the Securities and Exchange Commission (SEC) on Form 10-Q and Rule 10-01 of Regulation S-X. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP, have been omitted. The accompanying unaudited financial statements include all known adjustments necessary for a fair presentation of the results of interim periods as required by GAAP. These adjustments consist primarily of normal recurring accruals and estimates that impact the carrying value of assets and liabilities. Operating results for the period ended June 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020, particularly in light of the novel coronavirus pandemic, or COVID-19, and its impact on domestic and global economies. To limit the spread of COVID-19, governments have taken various actions including the issuance of stay-at-home orders and physical distancing guidelines. Accordingly, businesses have adjusted, reduced or suspended operating activities. Beginning the week of March 16, 2020, the majority of the Company’s workforce began working from home. Disruptions caused by the COVID-19 pandemic, including The accompanying unaudited financial statements should be read in conjunction with the audited financial statements and the related notes thereto for the year ended December 31, 2019, which are included in the Company’s final prospectus filed with the SEC pursuant to Rule 424(b)(4) on April 24, 2020 under the Securities Act of 1933, as amended (the Securities Act). |
Use of Estimates | Use of Estimates The preparation of the Company’s financial statements in conformity with GAAP requires management to make estimates and assumptions that impact the reported amounts of assets, liabilities, expenses, and the disclosure of contingent assets and liabilities in the Company’s financial statements and accompanying notes. These estimates and assumptions are based on current facts, historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the recording of expenses that are not readily apparent from other sources. Actual results may differ materially from these estimates. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments, which potentially subject the Company to concentration of credit risk, consist primarily of cash and cash equivalents. The Company maintains deposits in federally insured financial institutions in excess of federally insured limits. The Company is exposed to credit risk in the event of default by the financial institutions holding its cash and cash equivalents that are recorded on its balance sheets. The Company mitigates its risk by investing in high-grade instruments and limiting the concentration in any one issuer, which limits its exposure. The carrying amounts of cash and cash equivalents, prepaid expenses, accounts payable and accrued other liabilities are reasonable estimates of their fair value because of the short maturity of these items. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with maturities of 90 days or less at the time of purchase that are readily convertible into cash as cash equivalents. These investments may include money market funds, securities issued by U.S. Government agencies, corporate debt securities and commercial paper. |
Research and Development Expenses and Accrued Research and Development Expenses | Research and Development Expenses and Accrued Research and Development Expenses The Company is required to estimate its expenses resulting from its obligations under contracts with vendors, consultants, contract research organizations (CRO), and contract manufacturing organizations (CMO) in connection with conducting research and development activities. The financial terms of these contracts vary from contract to contract and may result in payment flows that do not match the periods over which materials or services are provided under such contracts. Research and development costs are expensed in the period in which they are incurred. External costs consist primarily of payments to outside CROs, CMOs, clinical trial sites and central laboratories in connection with the Company’s discovery and preclinical activities, process development, clinical manufacturing and clinical development activities. External expenses are recognized based on an evaluation of the progress to completion of specific tasks using information provided to the Company by its service providers or its estimate of the level of service that has been performed at each reporting date. The Company allocates external costs by program, clinical or preclinical. Internal costs consist primary of employee-related costs, laboratory supplies, facilities, depreciation and costs related to compliance with regulatory requirements. The Company does not allocate internal costs by program because these costs are deployed across multiple programs and, as such, are not separately classified. |
Deferred Offering Costs | Deferred Offering Costs The Company capitalizes costs that are directly associated with equity financings until such financings are consummated at which time such costs are recorded against the gross proceeds of the offering. Should an in-process equity financing be abandoned, the deferred offering costs will be expensed immediately as a charge to operating expenses in the statement of operations and comprehensive loss. |
Net Loss Per Share | Net Loss Per Share Basic net loss per common share is calculated by dividing the net loss by the weighted-average number of common shares outstanding during the period, without consideration of potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss by the weighted-average number of common shares and potentially dilutive securities outstanding for the period. As the Company has reported a net loss for all periods presented, diluted net loss per common share is the same as basic net loss per common share for those periods. The following table sets forth the computation of the basic and diluted net loss per share (in thousands, except share and per share amounts). Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Numerator Net loss $ (11,024 ) $ (5,965 ) $ (19,896 ) $ (11,980 ) Denominator Weighted average shares outstanding used in computing net loss per share, basic and diluted 21,627,361 1,872,309 11,808,103 1,841,233 Net loss per share, basic and diluted $ (0.51 ) $ (3.19 ) $ (1.68 ) $ (6.51 ) The following outstanding shares of potentially dilutive securities were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been anti-dilutive: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Options to purchase common stock 3,947,577 1,801,095 3,947,577 1,801,095 Convertible preferred stock — 18,838,843 — 18,838,843 Total 3,947,577 20,639,938 3,947,577 20,639,938 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (FASB) under its accounting standard codifications (ASC) or other standard setting bodies and adopted by the Company as of the specified effective date, unless otherwise discussed below. New Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) Codification Improvements to Topic 842, Leases Leases (Topic 842): Targeted Improvements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses ( Topic 326 ) (ASC 326): Measurement of Credit Losses on Financial Instruments , which introduced the expected credit losses methodology for the measurement of credit losses on financial assets measured at amortized cost basis, replacing the previous incurred loss methodology. The amendments in Update 2016-13 added Topic 326, Financial Instruments—Credit Losses, and made several consequential amendments to the Codification. Update 2016-13 also modified the accounting for available-for-sale debt securities, which must be individually assessed for credit losses when fair value is less than the amortized cost basis, in accordance with Subtopic 326-30, Financial Instruments— Credit Losses—Available-for-Sale Debt Securities. The guidance is effective for annual periods beginning after December 15, 2019, including interim periods within those years . Since the Company has elected to use the extended transition period under the JOBS Act available to emerging growth companies (E GC s) , the ASU is effective for the Company for fiscal years beginning after December 15, 2020. The Company expects to adopt the new standard in the first quarter of 2021. The Company is currently evaluating the impact the adoption of this standard will have on its financial statements and related disclosures. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes The Company expects to adopt the new standard in the first quarter of 2022. and related disclosures |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Computation of Basic and Diluted Net Loss Per Share | The following table sets forth the computation of the basic and diluted net loss per share (in thousands, except share and per share amounts). Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Numerator Net loss $ (11,024 ) $ (5,965 ) $ (19,896 ) $ (11,980 ) Denominator Weighted average shares outstanding used in computing net loss per share, basic and diluted 21,627,361 1,872,309 11,808,103 1,841,233 Net loss per share, basic and diluted $ (0.51 ) $ (3.19 ) $ (1.68 ) $ (6.51 ) |
Summary of Outstanding Shares of Potentially Dilutive Securities Excluded from Computation of Diluted Net Loss Per Share | The following outstanding shares of potentially dilutive securities were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been anti-dilutive: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Options to purchase common stock 3,947,577 1,801,095 3,947,577 1,801,095 Convertible preferred stock — 18,838,843 — 18,838,843 Total 3,947,577 20,639,938 3,947,577 20,639,938 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net consisted of the following (in thousands): June 30, 2020 December 31, 2019 Lab equipment $ 3,933 $ 3,748 Leasehold improvements 1,710 1,710 Computer hardware and software 206 158 Furniture and fixtures 140 140 Total property and equipment, gross 5,989 5,756 Less accumulated depreciation (4,011 ) (3,515 ) Total property and equipment, net $ 1,978 $ 2,241 |
Accrued Other Liabilities (Tabl
Accrued Other Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Accrued Liabilities Current [Abstract] | |
Schedule of Accrued Other Liabilities | Accrued other liabilities consisted of the following (in thousands): June 30, 2020 December 31, 2019 Accrued compensation $ 1,604 $ 1,883 Accrued clinical development costs 901 484 Accrued manufacturing costs 569 479 Deferred rent - short-term 523 495 Accrued professional fees 447 338 Other accruals 345 279 Accrued deferred financing costs — 1,244 Total accrued other liabilities $ 4,389 $ 5,202 |
Convertible Preferred Stock (Ta
Convertible Preferred Stock (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Temporary Equity Disclosure [Abstract] | |
Schedule of Convertible Preferred Stock Authorized and Issued and its Principal Terms | Convertible preferred stock authorized and issued and its principal terms as of December 31, 2019 consisted of the following (in thousands, except share and per share amounts): As of December 31, 2019 Shares Authorized Shares Issued and Outstanding Issue Period Issue Price per Share Dividend Annual Rate per Share Aggregate Liquidation Preference Series A 3,862,500 3,862,500 2014 - 2015 $ 4.00 $ 0.32 $ 15,450 Series B 6,750,000 6,749,999 2015 - 2016 $ 8.00 $ 0.64 $ 54,000 Series C 4,448,788 4,448,780 2018 - 2019 $ 12.00 $ 0.96 $ 53,385 Series D 5,287,500 4,217,327 2019 $ 13.20 $ 1.056 $ 55,669 Total 20,348,788 19,278,606 |
Equity Incentive Plans and St_2
Equity Incentive Plans and Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Option Activity | The following table summarizes the option activity for the six months ended June 30, 2020: Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2019 2,683,441 $ 3.75 Granted 1,350,759 16.42 Exercised (36,633 ) 1.54 Forfeited and cancelled (49,990 ) 3.05 Outstanding at June 30, 2020 3,947,577 $ 8.13 9.0 $ 100,761 Exercisable at June 30, 2020 844,559 $ 1.85 8.0 $ 26,926 |
Summary of Fair Value of Stock Options Estimated Using Black-Scholes Merton Option Pricing Model Assumptions | The fair value of stock option awards to employees, executives, directors, and other service providers was estimated at the date of grant using the Black-Scholes Merton option pricing model with the following weighted-average assumptions. Six Months Ended June 30, 2020 2019 Stock price $16.00 - $35.92 $1.60 Risk-free interest rate 4.00% - 4.45% 2.58% Expected volatility 88.01% - 88.06% 100.5% Expected term (in years) 5.50 - 6.08 6.10 Expected dividend yield 0% 0% |
Summary of Total Stock-based Compensation Expense | The table below summarizes the total stock-based compensation expense included in the Company’s statements of operations for stock options for the periods presented (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Research and development $ 541 $ 59 $ 814 $ 117 General and administrative 840 131 1,094 264 Total Stock-Based Compensation Expense $ 1,381 $ 190 $ 1,908 $ 381 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Future Minimum Lease Payments under Non-cancelable Operating Leases | Future minimum lease payments under non-cancelable operating leases as of June 30, 2020 were as follows (in thousands): Operating Leases 2020 remaining six months $ 956 2021 1,871 2022 686 Total minimum lease payments $ 3,513 |
Description of the Business - A
Description of the Business - Additional Information (Detail) $ / shares in Units, $ in Thousands | Apr. 28, 2020USD ($)$ / sharesshares | Apr. 21, 2020 | Jun. 30, 2020USD ($)$ / sharesshares | Jun. 30, 2020USD ($)$ / shares | Dec. 31, 2019USD ($) | Jun. 30, 2019$ / shares |
Description Of Business [Line Items] | ||||||
Accumulated deficit | $ 112,586 | $ 112,586 | $ 92,690 | |||
Price per share of common stock | $ / shares | $ 1.60 | |||||
Gross proceeds from IPO excluding underwriting discounts and commissions and other offering expenses | $ 138,000 | |||||
Maximum | ||||||
Description Of Business [Line Items] | ||||||
Price per share of common stock | $ / shares | $ 35.92 | $ 35.92 | ||||
Minimum | ||||||
Description Of Business [Line Items] | ||||||
Price per share of common stock | $ / shares | $ 16 | $ 16 | ||||
Common Stock | ||||||
Description Of Business [Line Items] | ||||||
Gross proceeds from IPO excluding underwriting discounts and commissions and other offering expenses | $ 138,000 | |||||
Underwriting discounts and commissions and other offering expenses | 12,800 | |||||
Net proceeds from IPO | $ 125,200 | |||||
Reverse stock split | one-for-four | |||||
Reverse stock split ratio | 0.25 | |||||
Common Stock | Initial Public Offering | ||||||
Description Of Business [Line Items] | ||||||
Shares of common stock issued | shares | 8,625,000 | 8,625,000 | ||||
Price per share of common stock | $ / shares | $ 16 | |||||
Convertible preferred stock outstanding converted into shares of common stock | shares | 19,278,606 | |||||
Common Stock | Option to Purchase Additional Shares | Maximum | ||||||
Description Of Business [Line Items] | ||||||
Shares of common stock issued | shares | 1,125,000 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Liquid investments maturity period | 90 days |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies - Summary of Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Numerator | ||||
Net loss | $ (11,024) | $ (5,965) | $ (19,896) | $ (11,980) |
Denominator | ||||
Weighted average shares outstanding used in computing net loss per share, basic and diluted | 21,627,361 | 1,872,309 | 11,808,103 | 1,841,233 |
Net loss per share, basic and diluted | $ (0.51) | $ (3.19) | $ (1.68) | $ (6.51) |
Basis of Presentation and Sum_6
Basis of Presentation and Summary of Significant Accounting Policies - Summary of Outstanding Shares of Potentially Dilutive Securities Excluded from Computation of Diluted Net Loss Per Share (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti dilutive securities excluded from computation of net loss per share | 3,947,577 | 20,639,938 | 3,947,577 | 20,639,938 |
Options to Purchase Common Stock | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti dilutive securities excluded from computation of net loss per share | 3,947,577 | 1,801,095 | 3,947,577 | 1,801,095 |
Convertible Preferred Stock | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti dilutive securities excluded from computation of net loss per share | 18,838,843 | 18,838,843 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 5,989 | $ 5,756 |
Less accumulated depreciation | (4,011) | (3,515) |
Total property and equipment, net | 1,978 | 2,241 |
Lab Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 3,933 | 3,748 |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 1,710 | 1,710 |
Computer Hardware and Software | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 206 | 158 |
Furniture and Fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 140 | $ 140 |
Accrued Other Liabilities - Sch
Accrued Other Liabilities - Schedule of Accrued Other Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Accrued Liabilities Current [Abstract] | ||
Accrued compensation | $ 1,604 | $ 1,883 |
Accrued clinical development costs | 901 | 484 |
Accrued manufacturing costs | 569 | 479 |
Deferred rent - short-term | 523 | 495 |
Accrued professional fees | 447 | 338 |
Other accruals | 345 | 279 |
Accrued deferred financing costs | 1,244 | |
Total accrued other liabilities | $ 4,389 | $ 5,202 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, at carrying value | $ 196,642,000 | $ 89,159,000 |
Level 1 | Money Market Funds | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, at carrying value | 196,600,000 | 88,100,000 |
Cash and cash equivalents, fair value | 196,600,000 | 88,100,000 |
Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Level 3 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets, fair value disclosure | $ 0 | $ 0 |
Convertible Preferred Stock - S
Convertible Preferred Stock - Schedule of Convertible Preferred Stock Authorized and Issued and its Principal Terms (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2019 | Jun. 30, 2020 | Apr. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Temporary Equity [Line Items] | |||||||
Shares Authorized | 20,348,788 | ||||||
Shares Issued | 19,278,606 | ||||||
Shares Outstanding | 19,278,606 | 0 | |||||
Series A Convertible Preferred Stock | |||||||
Temporary Equity [Line Items] | |||||||
Shares Authorized | 3,862,500 | 0 | |||||
Shares Issued | 3,862,500 | 0 | |||||
Shares Outstanding | 3,862,500 | 0 | 3,862,500 | 3,862,500 | 3,862,500 | 3,862,500 | |
Issue Price per Share | $ 4 | ||||||
Dividend Annual Rate per Share | $ 0.32 | ||||||
Aggregate Liquidation Preference | $ 15,450 | $ 0 | |||||
Series A Convertible Preferred Stock | Minimum | |||||||
Temporary Equity [Line Items] | |||||||
Issue Period | 2014 | ||||||
Series A Convertible Preferred Stock | Maximum | |||||||
Temporary Equity [Line Items] | |||||||
Issue Period | 2015 | ||||||
Series B Convertible Preferred Stock | |||||||
Temporary Equity [Line Items] | |||||||
Shares Authorized | 6,750,000 | 0 | |||||
Shares Issued | 6,749,999 | ||||||
Shares Outstanding | 6,749,999 | 0 | 6,749,999 | 6,749,999 | 6,749,999 | 6,749,999 | |
Issue Price per Share | $ 8 | ||||||
Dividend Annual Rate per Share | $ 0.64 | ||||||
Aggregate Liquidation Preference | $ 54,000 | $ 0 | |||||
Series B Convertible Preferred Stock | Minimum | |||||||
Temporary Equity [Line Items] | |||||||
Issue Period | 2015 | ||||||
Series B Convertible Preferred Stock | Maximum | |||||||
Temporary Equity [Line Items] | |||||||
Issue Period | 2016 | ||||||
Series C Convertible Preferred Stock | |||||||
Temporary Equity [Line Items] | |||||||
Shares Authorized | 4,448,788 | 0 | |||||
Shares Issued | 4,448,780 | ||||||
Shares Outstanding | 4,448,780 | 0 | 4,448,780 | 4,448,780 | 4,448,780 | 3,177,271 | |
Issue Price per Share | $ 12 | ||||||
Dividend Annual Rate per Share | $ 0.96 | ||||||
Aggregate Liquidation Preference | $ 53,385 | $ 0 | |||||
Series C Convertible Preferred Stock | Minimum | |||||||
Temporary Equity [Line Items] | |||||||
Issue Period | 2018 | ||||||
Series C Convertible Preferred Stock | Maximum | |||||||
Temporary Equity [Line Items] | |||||||
Issue Period | 2019 | ||||||
Series D Convertible Preferred Stock | |||||||
Temporary Equity [Line Items] | |||||||
Shares Authorized | 5,287,500 | 0 | |||||
Shares Issued | 4,217,327 | ||||||
Shares Outstanding | 4,217,327 | 0 | 4,217,327 | 3,777,564 | |||
Issue Period | 2019 | ||||||
Issue Price per Share | $ 13.20 | ||||||
Dividend Annual Rate per Share | $ 1.056 | ||||||
Aggregate Liquidation Preference | $ 55,669 | $ 0 |
Convertible Preferred Stock - A
Convertible Preferred Stock - Additional Information (Details) - shares | Apr. 30, 2020 | Dec. 31, 2019 |
Temporary Equity Disclosure [Abstract] | ||
Outstanding shares of convertible preferred stock converted into shares of common stock | 19,278,606 | |
Convertible preferred stock, outstanding | 0 | 19,278,606 |
Equity Incentive Plans and St_3
Equity Incentive Plans and Stock-Based Compensation - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Apr. 30, 2020 | Oct. 31, 2014 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Shares subject to repurchase | 14,768 | 14,768 | 29,579 | ||||
Expected dividend yield | 0.00% | 0.00% | |||||
Stock-based compensation expense | $ 1,381,000 | $ 190,000 | $ 1,908,000 | $ 381,000 | |||
Total unrecognized compensation expense related to outstanding unvested stock-based awards | 20,700,000 | $ 2,100,000 | $ 20,700,000 | $ 2,100,000 | |||
Total unrecognized compensation expense related to outstanding unvested stock-based awards expected to be recognized over weighted-average remaining service period | 3 years 1 month 6 days | 3 years 1 month 6 days | |||||
Maximum | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Liabilities with shares issued with repurchase rights | $ 100,000 | $ 100,000 | $ 100,000 | ||||
2020 Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Number of common stock initially reserved for issuance | 2,656,500 | ||||||
Additional number of shares available for future issuance | 2,656,500 | ||||||
Percentage of outstanding shares of common stock | 5.00% | ||||||
Number of shares available for future issuance | 1,559,427 | 1,559,427 | |||||
2014 Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Number of common stock remained available for issuance | 241,653 | ||||||
Number of shares available for future issuance | 203,696 | ||||||
2020 Plan and 2014 Plan | Stock Options | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Vesting period | 4 years | ||||||
2020 Plan and 2014 Plan | Stock Options | Maximum | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Expiration period | 10 years | ||||||
2020 Plan and 2014 Plan | Incentive Stock Options | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Exercise price as a percentage of fair market value | 100.00% | ||||||
Minimum percentage required for holders of combined voting power to be eligible for incentive stock options | 10.00% | ||||||
Percentage of options may not be granted at less than fair market value of the common stock at the date of grant | 110.00% | ||||||
Maximum term of options may not be granted at less than fair market value of the common stock at the date of grant | 5 years | ||||||
2020 ESPP | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Additional number of shares available for future issuance | 500,000 | ||||||
Percentage of outstanding shares of common stock | 1.00% | ||||||
Number of shares available for future issuance | 290,000 | ||||||
Number of shares issued under ESPP | 0 |
Equity Incentive Plans and St_4
Equity Incentive Plans and Stock-Based Compensation - Summary of Option Activity (Details) $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($)$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Options outstanding, Beginning Balance | shares | 2,683,441 |
Options, Granted | shares | 1,350,759 |
Options, Exercised | shares | (36,633) |
Options, Forfeited and cancelled | shares | (49,990) |
Options outstanding, Ending Balance | shares | 3,947,577 |
Options, Exercisable | shares | 844,559 |
Weighted Average Exercise Price, Options outstanding Beginning Balance | $ / shares | $ 3.75 |
Weighted Average Exercise Price, Granted | $ / shares | 16.42 |
Weighted Average Exercise Price, Exercised | $ / shares | 1.54 |
Weighted Average Exercise Price, Forfeited and Cancelled | $ / shares | 3.05 |
Weighted Average Exercise Price, Options outstanding Ending Balance | $ / shares | 8.13 |
Weighted Average Exercise Price, Exercisable | $ / shares | $ 1.85 |
Weighted Average Remaining Contractual Term (in years), Options outstanding | 9 years |
Weighted Average Remaining Contractual Term (in years), Exercisable | 8 years |
Aggregate Intrinsic Value, Options outstanding | $ | $ 100,761 |
Aggregate Intrinsic Value, Exercisable | $ | $ 26,926 |
Equity Incentive Plans and St_5
Equity Incentive Plans and Stock-Based Compensation - Summary of Fair Value of Stock Options Estimated Using Black-Scholes Merton Option Pricing Model Assumptions (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock price | $ 1.60 | |
Risk-free interest rate | 2.58% | |
Risk-free interest rate, minimum | 4.00% | |
Risk-free interest rate, maximum | 4.45% | |
Expected volatility | 100.50% | |
Expected volatility, minimum | 88.01% | |
Expected volatility, maximum | 88.06% | |
Expected term (in years) | 6 years 1 month 6 days | |
Expected dividend yield | 0.00% | 0.00% |
Minimum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock price | $ 16 | |
Expected term (in years) | 5 years 6 months | |
Maximum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock price | $ 35.92 | |
Expected term (in years) | 6 years 29 days |
Equity Incentive Plans and St_6
Equity Incentive Plans and Stock-Based Compensation - Summary of Total Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 1,381 | $ 190 | $ 1,908 | $ 381 |
Research and development | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 541 | 59 | 814 | 117 |
General and administrative | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 840 | $ 131 | $ 1,094 | $ 264 |
Commitment and Contingencies -
Commitment and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
South San Francisco and San Diego Locations | ||||
Loss Contingencies [Line Items] | ||||
Total rent expense | $ 0.3 | $ 0.7 | $ 0.3 | $ 0.7 |
Commitment and Contingencies _2
Commitment and Contingencies - Summary of Future Minimum Lease Payments Under Non-cancelable Operating Leases (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2020 remaining six months | $ 956 |
2021 | 1,871 |
2022 | 686 |
Total minimum lease payments | $ 3,513 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) | Aug. 03, 2020Product$ / sharesshares | Jun. 30, 2020shares | Dec. 31, 2019shares |
Subsequent Event [Line Items] | |||
Upfront payment shares issued | 29,924,461 | 1,984,222 | |
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Number of licensed products obliged to develop and commercialize | Product | 1 | ||
Subsequent Event | Mirati Therapeutics, Inc | |||
Subsequent Event [Line Items] | |||
Number of period the agreement in effect | 10 years | ||
Subsequent Event | Private Placement | Mirati Therapeutics, Inc | Common Stock | |||
Subsequent Event [Line Items] | |||
Upfront payment shares issued | 588,235 | ||
Issue Price per Share | $ / shares | $ 34 | ||
Premium percentage | 10.00% | ||
Stock transfer restrictions period | 18 months |