Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 04, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Trading Symbol | ITOS | |
Entity Registrant Name | iTeos Therapeutics, Inc. | |
Entity Central Index Key | 0001808865 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Incorporation, State or Country Code | DE | |
Entity Shell Company | false | |
Entity File Number | 001-39401 | |
Entity Tax Identification Number | 84-3365066 | |
Entity Address Address Line1 | 321 Arsenal St | |
Entity Address City Or Town | Watertown | |
Entity Address State Or Province | MA | |
Entity Address Postal Zip Code | 02472 | |
City Area Code | 339 | |
Local Phone Number | 217 0161 | |
Entity Common Stock Shares Outstanding | 35,575,323 | |
Security12b Title | Common stock, $0.001 par value per share | |
Security Exchange Name | NASDAQ |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 791,861 | $ 848,537 |
Grants receivable | 4,004 | 4,022 |
Research and development tax credits receivable | 0 | 524 |
Refundable income taxes | 0 | 7,544 |
Prepaid expenses and other current assets | 8,878 | 14,086 |
Total current assets | 804,743 | 874,713 |
Property and equipment, net | 2,271 | 2,072 |
Research and development tax credits receivable, net of current portion | 2,358 | 2,004 |
Restricted cash | 290 | 298 |
Right of use assets | 4,792 | 5,329 |
Other assets | 320 | 296 |
Total assets | 814,774 | 884,712 |
Current liabilities: | ||
Accounts payable | 10,921 | 5,145 |
Accrued expenses and other current liabilities | 13,806 | 17,157 |
Income tax payable | 12,965 | |
Deferred income | 938 | 827 |
Deferred revenue | 85,987 | 280,225 |
Lease liabilities | 778 | 770 |
Total current liabilities | 125,395 | 304,124 |
Grants repayable, net of current portion | 5,492 | 6,164 |
Lease liabilities, net of current portion | 4,029 | 4,571 |
Unrecognized tax benefits | 42,529 | 17,000 |
Other noncurrent liabilities | 28 | 33 |
Total liabilities | 177,473 | 331,892 |
Commitments and contingencies (Note 10) | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value; 10,000,000 and zero shares authorized at June 30, 2022 and December 31, 2021, respectively, and zero shares issued or outstanding | 0 | 0 |
Common stock, $0.001 par value: 150,000,000 shares authorized at June 30, 2022 and December 31, 2021 respectively; 35,575,323 and 35,466,001 shares issued and outstanding; respectively | 36 | 35 |
Additional paid-in capital | 423,743 | 413,180 |
Accumulated other comprehensive loss | (2,309) | (1,018) |
Retained earnings | 215,831 | 140,623 |
Total stockholders’ equity | 637,301 | 552,820 |
Total liabilities and stockholders’ equity | $ 814,774 | $ 884,712 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - $ / shares | Jun. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 35,575,323 | 35,466,001 |
Common stock, shares outstanding | 35,575,323 | 35,466,001 |
Preferred Stock, par value | $ 0.001 | $ 0.001 |
Preferred Stock Shares Authorized | 10,000,000 | 0 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue: | ||||
License and collaboration revenue | $ 41,716 | $ 194,238 | ||
Total revenue | 41,716 | 194,238 | ||
Operating expenses: | ||||
Research and development expenses | 26,910 | $ 14,238 | 48,006 | $ 25,881 |
General and administrative expenses | 11,471 | 15,101 | 22,086 | 22,147 |
Total operating expenses | 38,381 | 29,339 | 70,092 | 48,028 |
Income (loss) from operations | 3,335 | (29,339) | 124,146 | (48,028) |
Other income and expenses: | ||||
Grant income | 147 | 2,701 | 638 | 7,616 |
Research and development tax credits | 292 | 119 | 546 | 119 |
Other (expense) income, net | 4,669 | 60 | 2,646 | 300 |
Income (loss) before income taxes | 8,443 | (26,459) | 127,976 | (39,993) |
Income tax expense | (2,817) | (52,768) | ||
Net income (loss) | $ 5,626 | $ (26,459) | $ 75,208 | $ (39,993) |
Basic net income (loss) per common share | $ 0.16 | $ (0.75) | $ 2.12 | $ (1.14) |
Diluted net income (loss) per common share | $ 0.15 | $ (0.75) | $ 1.98 | $ (1.14) |
Weighted-average common shares outstanding - basic | 35,546,605 | 35,119,952 | 35,520,086 | 35,103,294 |
Weighted-average common shares outstanding - diluted | 37,635,828 | 35,119,952 | 37,931,692 | 35,103,294 |
Net income (loss) | $ 5,626 | $ (26,459) | $ 75,208 | $ (39,993) |
Foreign currency translation adjustments | (741) | (74) | (1,291) | (379) |
Comprehensive income (loss) | $ 4,885 | $ (26,533) | $ 73,917 | $ (40,372) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated deficit/Retained Earnings |
Beginning balance at Dec. 31, 2020 | $ 323,197 | $ 35 | $ 396,443 | $ 617 | $ (73,898) |
Beginning balance (in shares) at Dec. 31, 2020 | 35,044,758 | ||||
Stock-based compensation | 2,584 | 2,584 | |||
Common stock issued upon exercises of options | 667 | 667 | |||
Common stock issued upon exercises of options (in shares) | 56,241 | ||||
Currency translation adjustment | (305) | (305) | |||
Net income (loss) | (13,534) | (13,534) | |||
Ending balance at Mar. 31, 2021 | 312,609 | $ 35 | 399,694 | 312 | (87,432) |
Ending balance (in shares) at Mar. 31, 2021 | 35,100,999 | ||||
Beginning balance at Dec. 31, 2020 | 323,197 | $ 35 | 396,443 | 617 | (73,898) |
Beginning balance (in shares) at Dec. 31, 2020 | 35,044,758 | ||||
Net income (loss) | (39,993) | ||||
Ending balance at Jun. 30, 2021 | 289,498 | $ 35 | 403,116 | 238 | (113,891) |
Ending balance (in shares) at Jun. 30, 2021 | 35,148,110 | ||||
Beginning balance at Dec. 31, 2020 | 323,197 | $ 35 | 396,443 | 617 | (73,898) |
Beginning balance (in shares) at Dec. 31, 2020 | 35,044,758 | ||||
Net income (loss) | 214,500 | ||||
Ending balance at Dec. 31, 2021 | 552,820 | $ 35 | 413,180 | (1,018) | 140,623 |
Ending balance (in shares) at Dec. 31, 2021 | 35,466,001 | ||||
Beginning balance at Mar. 31, 2021 | 312,609 | $ 35 | 399,694 | 312 | (87,432) |
Beginning balance (in shares) at Mar. 31, 2021 | 35,100,999 | ||||
Stock-based compensation | 3,227 | 3,227 | |||
Common stock issued upon exercises of options | 195 | 195 | |||
Common stock issued upon exercises of options (in shares) | 47,111 | ||||
Currency translation adjustment | (74) | (74) | |||
Net income (loss) | (26,459) | (26,459) | |||
Ending balance at Jun. 30, 2021 | 289,498 | $ 35 | 403,116 | 238 | (113,891) |
Ending balance (in shares) at Jun. 30, 2021 | 35,148,110 | ||||
Beginning balance at Dec. 31, 2021 | 552,820 | $ 35 | 413,180 | (1,018) | 140,623 |
Beginning balance (in shares) at Dec. 31, 2021 | 35,466,001 | ||||
Stock-based compensation | 4,193 | $ 0 | 4,193 | ||
Common stock issued upon exercises of options | 333 | $ 1 | 332 | ||
Common stock issued upon exercises of options (in shares) | 50,911 | ||||
Currency translation adjustment | (550) | $ 0 | (550) | ||
Net income (loss) | 69,582 | 0 | 69,582 | ||
Ending balance at Mar. 31, 2022 | 626,378 | $ 36 | 417,705 | (1,568) | 210,205 |
Ending balance (in shares) at Mar. 31, 2022 | 35,516,912 | ||||
Beginning balance at Dec. 31, 2021 | $ 552,820 | $ 35 | 413,180 | (1,018) | 140,623 |
Beginning balance (in shares) at Dec. 31, 2021 | 35,466,001 | ||||
Common stock issued upon exercises of options (in shares) | 109,322 | ||||
Net income (loss) | $ 75,208 | ||||
Ending balance at Jun. 30, 2022 | 637,301 | $ 36 | 423,743 | (2,309) | 215,831 |
Ending balance (in shares) at Jun. 30, 2022 | 35,575,323 | ||||
Beginning balance at Mar. 31, 2022 | 626,378 | $ 36 | 417,705 | (1,568) | 210,205 |
Beginning balance (in shares) at Mar. 31, 2022 | 35,516,912 | ||||
Stock-based compensation | 5,760 | 5,760 | |||
Common stock issued upon exercises of options | 278 | 278 | |||
Common stock issued upon exercises of options (in shares) | 58,411 | ||||
Currency translation adjustment | (741) | (741) | |||
Net income (loss) | 5,626 | 5,626 | |||
Ending balance at Jun. 30, 2022 | $ 637,301 | $ 36 | $ 423,743 | $ (2,309) | $ 215,831 |
Ending balance (in shares) at Jun. 30, 2022 | 35,575,323 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities | ||
Net income (loss) | $ 75,208 | $ (39,993) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Depreciation and amortization | 375 | 276 |
Stock-based compensation | 9,953 | 5,811 |
Change in operating lease right-of-use assets | 4 | 8 |
Changes in operating assets and liabilities: | ||
Grants receivable | (333) | (4,185) |
Research and development tax credits receivable | (41) | 73 |
Refundable Income Taxes | 7,544 | 0 |
Prepaid expenses and other current assets | 4,360 | 81 |
Accounts payable | 6,447 | 8,265 |
Accrued expenses and other liabilities | (2,286) | 50 |
Income tax payable | 12,965 | 0 |
Deferred income | 189 | (3,431) |
Deferred revenue | (194,238) | 0 |
Unrecognized tax benefits | 25,529 | 0 |
Net cash used in operating activities | (54,324) | (33,045) |
Cash flows from investing activities | ||
Purchase of property and equipment | (738) | (489) |
Purchase of other assets | (99) | (60) |
Net cash used in investing activities | (837) | (549) |
Cash flows from financing activities | ||
Proceeds from issuance of common stock upon exercise of options | 611 | 862 |
Net cash provided by financing activities | 611 | 862 |
Effects of exchange rate changes on cash, cash equivalents and restricted cash | (2,134) | (650) |
Net decrease in cash, cash equivalents and restricted cash | (56,684) | (33,382) |
Cash, cash equivalents and restricted cash at beginning of period | 848,835 | 336,454 |
Cash, cash equivalents and restricted cash at end of period | 792,151 | 303,072 |
Non-cash investing and financing activities | ||
Capital expenditure included in accounts payable | (57) | 459 |
Operating lease liabilities arising from obtaining right-of-use assets | 177 | 3,316 |
Supplemental disclosure of cash flows | ||
Cash paid for taxes | $ 6,740 | $ 0 |
Nature of Business and Basis of
Nature of Business and Basis of Presentation | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure Text Block [Abstract] | |
Nature of Business and Basis of Presentation | Note 1. Nature of business and basis of presentation Description of business iTeos Therapeutics, Inc. (iTeos or the Company), a Delaware corporation headquartered in Watertown, Massachusetts (incorporated on October 4, 2019), is the successor to iTeos Belgium SA (iTeos Belgium) a company organized under the laws of Belgium in 2011 and headquartered in Charleroi, Belgium. The Company is a clinical stage biopharmaceutical company pioneering the discovery and development of a new generation of differentiated immuno-oncology therapeutics for people living with cancer. The Company leverages its deep understanding of the tumor immunology and immunosuppressive pathways to design novel product candidates with the aim of restoring the immune response against cancer. The Company’s innovative pipeline includes two clinical-stage programs targeting novel, de-risked immuno-oncology pathways. Each of the Company's therapies in development has optimized pharmacologic properties designed to improve clinical outcomes. The Company’s lead antibody product candidate, EOS-448, also known as GSK4428859A, is an antagonist of TIGIT, or T-cell immunoreceptor with lg and ITIM domains, an immune checkpoint with multiple mechanisms of action. On June 11, 2021, the Company's wholly owned subsidiary, iTeos Belgium S.A., and GlaxoSmithKline Intellectual Property (No. 4) Limited, or GSK, executed a Collaboration and License Agreement, or the GSK Collaboration Agreement, which became effective on July 26, 2021. Pursuant to the GSK Collaboration Agreement, the Company agreed to grant GSK a license under certain of its intellectual property rights to develop, manufacture, and commercialize products comprised of or containing EOS-448, which license is exclusive in all countries outside of the United States and co-exclusive, with iTeos, in the United States. GSK and iTeos intend to develop EOS-448 in combination, including with other oncology assets of GSK, and iTeos and GSK will jointly own the intellectual property created under the GSK Collaboration Agreement that covers such combinations. The Company is also advancing inupadenant, a next-generation adenosine A 2A receptor antagonist tailored to overcome the specific adenosine-mediated immunosuppression found in tumor microenvironment, into proof-of concept trials in several indications following encouraging single-agent activity in Phase 1. The Company continues to progress research programs focused on additional targets that complement its TIGIT and A 2A R programs or address additional immunosuppressive pathways. This includes our candidate targeting a first-in-class mechanism in the adenosine pathway, which is under evaluation in Investigational New Drug, or IND, enabling studies. Liquidity and capital resources Since inception, the Company’s activities have consisted primarily of performing research and development to advance its product candidates. For the first time since inception, the Company has earned income during 2021, which equaled net income of $ 214.5 million for the year ended December 31, 2021. The Company also had net income of $ 5.6 million for the three months ended June 30, 2022 and $ 75.2 million for the six months ended June 30, 2022. As of June 30, 2022, the Company had retained earnings of $ 215.8 million. As of August 10, 2022, the issuance date of the condensed consolidated financial statements for the period ended June 30, 2022, the Company expects that its cash and cash equivalents would be sufficient to fund its operating expenses, capital expenditure requirements and debt service payments through at least 12 months. The Company may seek additional funding in order to reach its development and commercialization objectives. The Company may not be able to obtain funding on acceptable terms, or at all, and the Company may not be able to enter into collaborations or other arrangements. The terms of any funding may adversely affect the holdings or the rights of the Company’s stockholders. If the Company is unable to obtain funding, the Company could be forced to delay, reduce or eliminate some or all of its research and development programs, product portfolio expansion or commercialization efforts, which could adversely affect its business prospects. The Company’s future results of operations involve a number of risks and uncertainties. Factors that could affect the Company’s future operating results and cause actual results to vary materially from expectations include, but are not limited to, uncertainty regarding results of clinical trials and reaching milestones, uncertainty of regulatory approval of the Company’s current or future product candidates, uncertainty of market acceptance of the Company’s product candidates, if approved, competition from substitute products and larger companies, securing and protecting proprietary technology, strategic relationships and dependence on key individuals and sole source suppliers. Product candidates currently under development will require significant additional research and development efforts, including extensive preclinical and clinical testing and regulatory approval prior to commercialization. These efforts require significant amounts of capital, adequate personnel and infrastructure and extensive compliance-reporting capabilities and may not ultimately lead to a marketing approval and commercialization of a product. The Company’s product candidates require approvals from the U.S. Food and Drug Administration ("FDA") and comparable foreign regulatory agencies prior to commercial sales in their respective jurisdictions. There can be no assurance that any product candidates will receive the necessary approvals. If the Company was denied approval, approval was delayed or the Company was unable to maintain approval for any product candidate, it could have a materially adverse impact on the Company. Even if the Company’s product development efforts are successful, it is uncertain when, if ever, the Company will realize significant revenue from product sales. The Company will need to generate significant revenue to achieve sustained profitability, and it may never do so. COVID-19 With the ongoing concern related to the COVID-19 pandemic during 2021 and in the first six months of 2022, the Company has maintained its business continuity plans to address and mitigate the impact of the COVID-19 pandemic on its business. In March 2020, to protect the health of our employees and their families and communities, we restricted access to our offices to personnel who performed critical activities that must be completed on-site and limited the number of such personnel that could be present at our facilities at any one time. In May 2020, as certain states eased restrictions, we established new protocols to better allow our full laboratory staff access to our facilities. With increased availability of vaccines and public health guidelines evolving to reflect their availability, we have shifted to a hybrid model for all our employees. We will continue to monitor and make adjustments in response to the public health environment, together with local, state and federal guidance regarding workplace protective measures. These measures entail risk. For instance, remote work may delay our pre-clinical programs development, disrupt our operations and increase the risk of a cybersecurity incident. The Company expects to continue incurring additional costs to ensure it adheres to the best-practice safe hygiene guidelines issued by recognized health experts such as the U.S. Centers for Disease Control and Prevention ("CDC"), the European Center for Disease Prevention and Control ("ECDC") and the World Health Organization ("WHO"), and to provide a safe working environment to its onsite employees. The extent to which the ongoing COVID-19 pandemic impacts the Company’s business, its corporate development objectives, results of operations and financial condition, and the value of and market for its common stock, will depend on future developments that are highly uncertain and cannot be predicted with confidence at this time, such as the ultimate duration of the pandemic, the severity of COVID-19, the identification of additional variants of COVID-19, the availability and utilization of vaccines and treatments for COVID-19, or the effectiveness of actions taken globally to contain and address COVID-19, such as travel restrictions, quarantines, social distancing and business closure requirements, but particularly in the geographies where the Company, its third party manufacturers, contract research organizations ("CROs") or current and planned clinical trial sites operate. Disruptions to the global economy, disruption of global healthcare systems, and other significant impacts of the COVID-19 pandemic could have a material adverse effect on the Company’s business, financial condition, results of operations and growth prospects. Basis of presentation The accompanying condensed consolidated financial statements and accompanying notes have been prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP"). The unaudited interim condensed consolidated financial statements of the Company included herein have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted from this report, as is permitted by such rules and regulations. Accordingly, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements as of and for the years ended December 31, 2021 and 2020, and the notes thereto, which are included in the Company’s Annual Report on Form 10-K (File No. 001-39401). The results for any interim period are not necessarily indicative of results for any future period. In the opinion of management, the information furnished reflects all adjustments, all of which are of a normal and recurring nature, necessary for a fair presentation of the results for the reported interim periods. The Company considers events or transactions that occur after the balance sheet date but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. The results of operations for interim periods are not necessarily indicative of results to be expected for the full year or any other interim period. |
Summary of significant accounti
Summary of significant accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2. Summary of significant accounting policies The Company’s significant accounting policies are disclosed in the audited consolidated financial statements for the year ended December 31, 2021, and notes thereto, which are included in the Company’s Annual Report on Form 10-K that was filed with the Securities and Exchange Commission on March 23, 2022. Since the date of those financial statements, there have been no material changes to significant accounting policies. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 3. Fair value measurements The following tables set forth the Company’s financial instruments that were measured at fair value on a recurring basis by level within the fair value hierarchy as of June 30, 2022 and December 31, 2021: June 30, 2022 (in thousands) Level 1 Level 2 Level 3 Total Cash equivalents (money market funds) $ 778,004 $ — $ — $ 778,004 Totals $ 778,004 $ — $ — $ 778,004 December 31, 2021 (in thousands) Level 1 Level 2 Level 3 Total Cash equivalents (money market funds) $ 797,448 $ — $ — $ 797,448 Totals $ 797,448 $ — $ — $ 797,448 Cash equivalents consist of money market funds, which are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices in an active market. The Company recognizes transfers between levels of the fair value hierarchy as of the end of the reporting period. There were no transfers within the hierarchy during the three and six months periods ended June 30, 2022 and 2021. There were no Level 3 measurements used during the three and six months ended June 30, 2022 and 2021. |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 6 Months Ended |
Jun. 30, 2022 | |
Supplemental Balance Sheet Information [Abstract] | |
Supplemental Balance Sheet Information | Note 4. Supplemental balance sheet information Property and equipment Property and equipment, net consisted of the following: (in thousands) June 30, December 31, Scientific equipment $ 3,027 $ 2,970 Furniture & office equipment 1,226 1,002 Leasehold improvements 1,039 1,071 Total 5,292 5,043 Accumulated depreciation and amortization ( 3,021 ) ( 2,971 ) Property & equipment, net $ 2,271 $ 2,072 Depreciation and amortization expense was $ 0.2 million for the three months ended June 30, 2022 and 2021, respectively, and $ 0.4 and $ 0.3 million for the six months ended June 30, 2022 and 2021, respectively, Accrued expenses and other current liabilities Accrued expenses and other current liabilities consisted of the following: (in thousands) June 30, December 31, Accrued clinical trial costs $ 10,963 $ 12,991 Accrued personnel costs 2,723 3,884 Accrued professional fees 27 25 Accrued other 93 257 Total accrued expenses and other current liabilities $ 13,806 $ 17,157 |
License and Collaboration Agree
License and Collaboration Agreements | 6 Months Ended |
Jun. 30, 2022 | |
License Agreements [Abstract] | |
License and Collaboration Agreements | Note 5. License and collaboration agreements Adimab In January 2017, the Company entered into a collaboration agreement (as amended, the "Adimab Agreement") with Adimab, LLC ("Adimab"). Adimab has developed an antibody discovery and optimization technology platform. This collaboration enables the Company’s research and development efforts on discovery and optimization of new antibodies against immuno-oncology targets the Company may identify. Under the terms of the Adimab Agreement, Adimab has granted the Company a worldwide, non-exclusive research license for a one-year research term period and evaluation period for up to 18 months per research program. The Company is required to use commercially reasonable efforts to perform its research activities under the Adimab Agreement and, if the Company exercises its right to obtain a development and commercialization license, the Company is required to use commercially reasonable efforts to pursue development and commercialization of a product directed to the applicable target. Under the terms of the Adimab Agreement, the Company granted Adimab a worldwide, non-exclusive license under all of its patents and know-how that are reasonably necessary or useful for Adimab to perform its research activities under the Adimab Agreement. In February 2021, the Company entered into an amendment to the Adimab Agreement (the "Amended Adimab Agreement"). The Amended Adimab Agreement specifies different milestone payments for new products that are derived from research programs beginning after February 22, 2021 (the "New Products"). For New Products, on a per target basis, the Company may be required to pay development, regulatory and commercial milestone payments totaling up to an aggregate of $ 45.8 million for the first three products and additional milestone payments up to $ 14.5 million for each additional product. The Company will pay Adimab low to mid single-digit percentage royalties on a country-by-country and product-by-product basis, on worldwide net product sales of licensed products. Royalties are payable on a licensed product-by-licensed product and country-by-country basis until the later of (i) expiration of the last valid claim of a licensed patent right that covers such licensed product in such country, and (ii) ten years following the first commercial sale of such licensed product in such country. Through June 30, 2022, the Company has paid a total of $ 3.4 million to Adimab under the Adimab Agreement. In 2020, the Company made a payment of $ 1.0 million due to reaching an additional milestone (dosing of first patient for Phase 1 clinical trial). As of June 30, 2022, it became probable the Company would reach an additional milestone and has accrued $ 2.0 related to this milestone in the June 30, 2022 condensed consolidated balance sheet. The additional milestone was paid in July 2022. As of the date of these condensed consolidated financial statements, the Company has not pursued any additional targets under the Adimab agreement that could potentially result in such milestone payments. Adimab controls the filing, prosecution, maintenance and enforcement of the intellectual property that it licenses to the Company under the Adimab Agreement. The Company has the right to enforce such licensed intellectual property against infringement if the infringement is competitive with the Company’s licensed products and Adimab does not pursue enforcement. The Company controls the filing, prosecution, maintenance and enforcement of the intellectual property the Company licenses to Adimab under the Adimab Agreement and all program antibody patents. The term of the Adimab Agreement will continue until the last to expire royalty term on a product-by-product and country-by-country basis if the Company exercises its option, or in the event no option is exercised, the conclusion of the last-to-expire evaluation term, unless terminated earlier by either party. Each party has the right to terminate the Adimab Agreement due to the other party’s uncured material breach or the Company’s abandonment of the product. GlaxoSmithKline (GSK) Summary of Agreement On June 11, 2021, the Company’s wholly owned subsidiary, iTeos Belgium S.A., and GSK executed a Collaboration and License Agreement (the "GSK Collaboration Agreement"), pursuant to which the Company agreed to grant GSK a license under certain of the Company’s intellectual property rights to develop, manufacture, and commercialize products comprised of or containing the Company’s antibody product, EOS-448. Under the GSK Collaboration Agreement, GSK agreed to make an upfront nonrefundable payment of $ 625.0 million to the Company within 10 business days of the date on which the GSK Collaboration Agreement became effective, which occurred on July 26, 2021. Additionally, the Company is eligible to receive up to $ 1.45 billion in milestone payments, contingent upon the EOS-448 program achieving certain development and commercial milestones. Within the collaboration, GSK and the Company agree to share responsibility and costs for the global development of EOS-448 beyond the Phase 1 study (the "Global Development Plan") and will jointly commercialize and equally split profits in the United States. Outside of the United States, GSK will receive an exclusive license for commercialization, and the Company is eligible to receive tiered double digit royalty payments up to 20 % during a customary royalty term. Collaboration The Company concluded that the GSK Collaboration Agreement is under the scope of ASC 808 as both parties will actively participate in a joint operating activity and are exposed to significant risks and rewards that depend on the activity’s commercial success. ASC 808 provides that certain transactions between collaborative arrangement participants should be accounted for as revenue under ASC 606 when the collaborative arrangement participant is a customer in the context of a unit of account. In those situations, all of the guidance in ASC 606 should be applied, including recognition, measurement, presentation, and disclosure requirements related to such unit of account. The unit-of-account guidance in ASC 808, which aligns with the guidance in ASC 606 (that is, a distinct good or service) is used when an entity is assessing whether the collaborative arrangement or a part of the arrangement is within the scope of ASC 606. The Company determined that the co-development in Phases 2 and 3 and the co-commercialization efforts of the GSK Collaboration Agreement represent joint operating activities in which both parties are active participants and of which both parties are exposed to significant risks and rewards that are dependent on the success of the activities. Accordingly, the Company is accounting for these activities in accordance with ASC No. 808, Collaborative Arrangements (ASC 808). Additionally, the Company has determined that in the context of these activities, GSK does not represent a customer as contemplated by ASC 606-10-15, Revenue from Contracts with Customers – Scope and Scope Exceptions . As a result, these activities are accounted for as a component of the related expense in the period incurred. GSK is responsible for 60 % of the costs related to the Global Development Plan. During the three months ended June 30, 2022, the Company expensed approximately $ 5.2 million of costs related to the cost-sharing provisions of the GSK Collaboration Agreement, of which approximately $ 2.6 million are payable to GSK and recorded as an expense to research and development expense during the three months ended June 30, 2022. During the six months ended June 30, 2022, the Company expensed approximately $ 10.5 million of costs related to the cost-sharing provisions of the GSK Collaboration Agreement, of which approximately $ 2.8 million are payable to GSK and recorded as an expense to research and development expense during the six months ended June 30, 2022. As of June 30, 2022, $ 2.6 million of the expenses have not been paid and are included in the accrued expenses and other current liabilities in the condensed consolidated balance sheet. As of December 31, 2021, $ 3.0 million of the reimbursable expenses have not been collected and are included in the prepaid and other current assets in the condensed consolidated balance sheet. The Company and GSK have collectively agreed to spend an aggregate of $ 900.0 million on the Global Development Plan. Revenue Recognition The Company also evaluated the elements of the GSK Collaboration Agreement in accordance with the provisions of ASC 606 and concluded that the contract counterparty, GSK, is a customer. The Company’s arrangement with GSK contains the following material promises under the contract at inception: (i) transfer of the license under certain of the Company’s intellectual property related to EOS-448, (ii) completion of the Phase 1 clinical study related to EOS-448, (iii) transfer of “Know How” under the EOS-448 intellectual property, and (iv) manufacturing until the “Know How” transfer is complete. The Company evaluated the above material promises under ASC 606 and determined that it has one combined performance obligation. The transaction price totaling $ 625.0 million was comprised of the upfront license payment. As of June 30, 2022, no development or regulatory milestones have been assessed as probable of being reached and thus have been fully constrained. As part of its evaluation of the constraint, the Company considered numerous factors, including that receipt of the milestones is outside the control of the Company and contingent upon success in future clinical trials and the licensee’s efforts. Any consideration related to sales-based milestones will be recognized when the related sales occur as they were determined to relate predominantly to the license granted to GSK and therefore have also been excluded from the transaction price. The Company is applying the royalty exception for sales-based royalties and will not recognize revenue until the subsequent sale of product occurs. The transaction price is being recognized as revenue over time as the costs to complete the Phase 1 study, perform interim clinical supply manufacturing, and perform the know-how transfer are incurred. This is expected to be completed by end of 2022. Revenue is recognized using a percent complete method based on costs incurred compared with the total expected costs to be incurred (cost to cost measure of progress). There are no outputs from the performance obligation. As a result, an input method was appropriate. A cost to cost measure of progress provides a faithful depiction of the transfer of services to the customer since the predominant inputs to the performance obligation are labor costs, research and development supplies and manufacturing supplies related to the Phase 1 Study, clinical manufacturing and know-how transfer. During the three months ended June 30, 2022, the Company recognized revenue totaling approximately $ 41.7 million with respect to the GSK Collaboration Agreement. During the six months ended June 30, 2022, the Company recognized revenue totaling approximately $ 194.2 million with respect to the GSK Collaboration Agreement. The revenue is classified as license and collaboration revenue in the accompanying condensed consolidated statements of operations. As of June 30, 2022, and December 31, 2021, there was approximately $ 86.0 million and $ 280.2 million of deferred revenue related to the GSK Collaboration Agreement of which all was classified as current deferred revenue in the accompanying condensed consolidated balance sheet based on the performance period of the underlying obligations. Contract Costs The Company incurred approximately $ 6.8 million of capitalizable costs to obtain the contact. The Company utilized the practical expedient in ASC 340 and recognized such costs immediately in 2021 as the Company expected to complete its performance obligations under the GSK Collaboration Agreement in less than 12 months. Contract Assets and Liabilities The following table presents changes in the Company’s GSK contract assets and liabilities during the six months ended June 30, 2022: Six Months Ended June 30, 2022 (in thousands) Balance at Additions Deductions Balance at End Contract Liabilities: Deferred Revenue $ 280,225 $ — $ ( 194,238 ) $ 85,987 MSD International GmbH On December 10, 2019, the Company entered into a Clinical Trial Collaboration and Supply Agreement (the "MSD Agreement") with MSD International GmbH ("MSD"), a subsidiary of Merck & Co., Inc. Under the MSD Agreement, the Company sponsors a clinical trial in which both the Company’s compound and MSD’s compound are dosed in combination. The Company conducts the research at its own cost and MSD contributes its compound towards the study at no cost to the Company. The parties equally own the clinical data and inventions from the study, with the exception of inventions relating solely to each party’s compound class. The MSD Agreement will expire upon the delivery of a written report on the results of the study, unless earlier terminated or agreed by the parties. The Company began receiving compounds from MSD on April 1, 2020 and the Company began the research study in the third quarter of 2020. The terms of the MSD Agreement meet the criteria under ASC 808, as both parties are active participants in the activity and are exposed to the risks and rewards dependent on the commercial success of the activity. ASC 808 does not provide guidance on how to account for the activities under the collaboration, and the Company determined that neither party met the definition of a customer under ASC 606, Revenue from Contracts with Customers . Accordingly, the Company considered other guidance to determine the accounting for the respective elements of the arrangement. The Company accounted for the collaboration activities by analogy to ASC Topic 845, Nonmonetary Transactions , and recognized nonmonetary income with an offsetting entry to expense for amounts received from MSD within research and development expense in the condensed consolidated statement of operations and comprehensive income (loss). |
Government Grant Funding and Po
Government Grant Funding and Potential Repayment Commitments Under Recoverable Cash Advance Grants (RCAs) | 6 Months Ended |
Jun. 30, 2022 | |
Research and Development Arrangement with Federal Government [Abstract] | |
Government Grant Funding and Potential Repayment Commitments Under Recoverable Cash Advance Grants (RCAs) | Note 6. Government grant funding and potential repayment commitments under recoverable cash advance grants (RCAs) The Company has been awarded grants from the Walloon Region, a federal region of Belgium (the "Walloon Region") and the European Union (the "Granting Agencies") to fund research and development activities. The grants reimburse a percentage ( 55 - 100 %) of actual qualifying expenditures. The Company periodically submits proof of qualifying expenditures to the Granting Agencies for approval and reimbursement. To date, the Company has received funding under several grants which included no obligation to repay and two grants that include potential obligations to repay ("RCAs"). As the Granting Agencies do not meet the definition of a customer under Topic 606, qualifying grants receipts are recognized as grant income within other income in the condensed consolidated statement of operations and comprehensive income (loss). Grants which do not include an obligation to repay The total amount that the Granting Agencies have agreed to fund in the future if the Company incurs qualifying research and development expenses under these grants is $ 0.9 million. Grants which include a potential obligation to repay—RCAs On July 20, 2017, the Company entered into a recoverable cash advance arrangement whereby the Walloon Region will provide the Company with up to $ 19.6 million for a research and development program to perform clinical validation of an A2A receptor antagonist drug candidate for immune-oncology (RCA-1). On December 3, 2019, the Company entered into another recoverable cash advance arrangement with the Walloon Region (RCA-2) for up to $ 4.5 million to be received to fund a research and development program conducted to develop a TIGIT blocking antibody with anti-tumor properties. Under the terms of both agreements, the Company must decide within 6 months after the end of the research period whether it will further pursue commercial development or out licensing of the drug candidate. The research period for RCA-1 ended in December 2021. The Company decided it would pursue commercialization or out licensing of RCA-1. The Company negotiated an extension on the research period for RCA-2 with the Walloon Region. The original research period for RCA-2 ended February 2021 and was extended to March 2022. The Company must repay 30 % of the amount received under the grant by annual installments from 2023 to 2042 (the fixed annual repayments) unless the Company decides not to pursue commercial development or out licensing of the drug candidate, applies for a waiver from the Walloon Region justifying its decision based upon the failure of the program, and returns the intellectual property to the Walloon Region. Because of the requirement to repay 30 % of the amounts received under the grant, the Company records the present value of such amounts as grants repayable on the condensed consolidated balance sheets. In addition, in the event that the Company receives revenue from products or services related to the results of the research, it has to pay to the Walloon Region a 0.33 % royalty on revenue resulting from RCA-1 and a 0.15 % royalty on revenue resulting from RCA-2 (increased from 0.12 % effective December 2021). The maximum amount payable to the Walloon Region under each grant, including the fixed annual repayments, the royalty on revenue, and the interest thereon, is twice the amount of funding received. The Company assessed whether there is an obligation to make a royalty payment based on the probability of successful completion of the research and development and future sales and commercial success of the drug candidate. For the RCA-1, no grant repayable related to royalties was recorded as of June 30, 2022, or December 30, 2021. For the RCA-2, the Company recorded a royalty accrual of $ 0.8 million as of June 30, 2022, and $ 0.9 million as of December 31, 2021, due to the upfront payment from the GSK Collaboration Agreement. The royalty accrual is included in the accrued expenses and other current liabilities in the condensed consolidated balance sheets. The Company recorded grant income in the condensed consolidated statement of operations and comprehensive income (loss) for the three and six months ended June 30, 2022, and 2021 for amounts of grants received from the Walloon Region in the period during which the related qualifying expenses were incurred, net of any grants repayable recorded in the condensed consolidated balance sheets. The Company recorded receivables on the condensed consolidated balance sheets related to amounts the Walloon Region owes the Company based on qualifying expenses incurred by the Company. The Company recorded deferred income in the condensed consolidated balance sheets for amounts received from the Walloon Region in advance of incurring qualifying expenses. The following table reflects activity for grant programs for the three and six months ended June 30, 2022, and 2021 and end of period balances as of June 30, 2022, and December 31, 2021: RCA -1 RCA-2 Other Grants Total (In thousands) 2022 2021 2022 2021 2022 2021 2022 2021 Cash received during the $ — $ — $ — $ — $ 473 $ — $ 473 $ — Grant income recognized $ — $ 2,140 $ — $ 290 $ 147 $ 271 $ 147 $ 2,701 Cash received during the $ — $ — $ — $ — $ 473 $ — $ 473 $ — Grant income recognized $ — $ 2,995 $ 485 $ 725 $ 153 $ 3,896 $ 638 $ 7,616 Grants receivable at the end $ 1,680 $ 1,832 $ 1,634 $ 1,097 $ 690 $ 1,093 $ 4,004 $ 4,022 Grants repayable at the end $ 4,840 $ 5,278 $ 813 $ 886 N/A N/A $ 5,653 $ 6,164 As of June 30, 2022, $ 161 thousand of the grants repayable was included in accrued expenses and other current liabilities and the remaining balance was included in the grants repayable, net of current portion in the condensed consolidated balance sheet. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Stockholders' Equity | Note 7. Stockholders’ equity On July 28, 2020, in connection with the initial public offering ("IPO"), the Company filed a restated Certificate of Incorporation, which, among other things, restated the number of shares of all classes of stock that the Company has authority to issue to 160,000,000 shares, of which (i) 150,000,000 shares are a class designated as common stock, par value $ 0.001 per share, and (ii) 10,000,000 shares are a class designated as undesignated preferred stock, par value $ 0.001 per share. Each share of common stock entitles the holders to one vote on all matters submitted to a vote of the Company’s stockholders. Common stockholders are not entitled to receive dividends, unless declared by the Board of Directors of the Company ("Board of Directors"). |
Stock-based compensation
Stock-based compensation | 6 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based compensation | Note 8. Stock-based compensation General The Board of Directors, at its sole discretion, shall determine the exercise price. Stock options expire 7 to 10 years from the date of grant. The stock options generally vest 25 % upon the one-year anniversary of the service inception date and then ratably each month over the remaining 36 months. Upon termination of service, any unvested stock options are automatically returned to Company. Vested stock options that are not exercised within the specified period, according to the terms and conditions of the option plan, following the termination as an employee, consultant, or service provider to the Company are surrendered back to the Company. Those stock options are added back to the pool and made available for future grants. 2019 Stock Option and Grant Plan The Company’s 2019 Stock Option and Grant Plan (the "2019 Plan") provided for the Company to grant stock options and other stock-based awards to employees and non-employees to purchase the Company’s common stock. Total authorized options under the 2019 Stock Option and Grant Plan is 3,464,316 . Upon the effectiveness of the 2020 Plan (as defined below), no further issuances will be made under the 2019 Plan. On July 15, 2020, the Company’s Board of Directors approved an amendment to stock options outstanding under the 2019 Stock Option and Grant Plan to provide for immediate 100 % vesting for all outstanding options under the plan upon the consummation of a Sale Event, as defined by the amendment. 2020 Stock Option and Incentive Plan The 2020 Stock Option and Incentive Plan (the "2020 Plan") was approved by the Company’s board of directors on July 15, 2020, and the Company’s stockholders on July 20, 2020 and became effective on July 22, 2020, the date immediately prior to the date on which the registration statement for the Company’s IPO became effective. The 2020 Plan provides for the grant of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock units, restricted stock awards, unrestricted stock awards, cash-based awards and dividend equivalent rights to the Company’s officers, employees, directors and consultants. The number of shares of common stock reserved for issuance as of December 31, 2021 under the 2020 Plan was 5,562,055 and will be increased each January 1 by 5 % of the number of shares of the Company’s common stock outstanding on the immediately preceding December 31 or such lesser number of shares as determined by the Company’s compensation committee of the board of directors. Accordingly, on January 1, 2022, the number of shares of common stock reserved and available for issuance under the 2020 Plan increased by 1,773,300 . The number of shares of common stock reserved for issuance as of June 30, 2022 under the 2020 Plan was 7,335,355 . The 2020 Plan replaced the 2019 Plan, as the Company’s board of directors is not expected to make additional awards under the 2019 Plan following the completion of the IPO. However, the 2019 Plan will continue to govern outstanding equity awards granted thereunder. Employee Stock Purchase Plan The 2020 Employee Stock Purchase Plan (the "2020 ESPP") was approved by the Company’s board of directors on July 15, 2020, and the Company’s stockholders on July 20, 2020, and became effective on July 22, 2020, the date immediately prior to the date on which the registration statement for the Company’s IPO was declared effective. The number of shares of common stock reserved for issuance as of June 30, 2022 under the 2020 ESPP was 667,931 . The ESPP provides that the number of shares reserved and available for issuance will automatically increase each January 1 thereafter by the lesser of 634,969 shares of common stock, 1 % of the outstanding number of shares of common stock on the immediately preceding December 31, or such lesser number of shares as determined by the Company’s compensation committee. There was no increase to the number of shares of common stock reserved and available for issuance under the 2020 ESPP on January 1, 2022. As of June 30, 2022, no shares had been issued under the 2020 ESPP. Stock-Based Compensation Expense Stock-based compensation expense is classified in the condensed consolidated statements of operations and comprehensive income (loss) as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2022 2021 2022 2021 Research and development $ 1,148 $ 496 $ 1,756 $ 771 General and administrative 4,612 2,731 8,197 5,040 Total stock-based compensation expense $ 5,760 $ 3,227 $ 9,953 $ 5,811 Stock Options The following table summarizes stock option activity for the six months ended June 30, 2022: Stock Options Shares Weighted Weighted Aggregate Outstanding as of December 31, 2021 5,207,084 $ 14.35 7.7 Granted 1,237,467 33.79 Forfeited ( 26,831 ) 6.80 Exercised ( 109,322 ) 5.58 Outstanding as of June 30, 2022 6,308,398 $ 18.35 7.7 $ 45,432 Exercisable at June 30, 2022 2,649,909 $ 12.20 6.7 $ 27,105 The weighted-average grant-date fair value of options awarded during the six month periods ended June 30, 2022 and 2021 was approximately $ 24.57 per share and $ 26.56 per share, respectively. As of June 30, 2022, there was a total of $ 58.4 million of unrecognized employee compensation costs related to non-vested stock option awards expected to be recognized over a weighted average period of 2.9 years. The Company estimates the fair value of stock-based compensation utilizing the Black-Scholes option pricing model, which is dependent upon several variables, such as expected term, volatility, risk-free interest rate, and expected dividends. Each of these inputs is subjective and generally requires significant judgment to determine. The following table summarizes the range of key assumptions used to determine the fair value of stock options granted during: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Risk-free interest rate 1.96 % - 3.07 % 0.84 % to 0.90 % 1.37 % - 3.07 % 0.42 % - 0.90 % Expected term (in years) 5.5 - 6 6 5.5 - 6 6 Expected volatility 86 % - 93 % 94 % to 99 % 86 % - 93 % 94 % - 100 % Expected dividend yield — — — — Estimated fair value of common stock $ 17.50 - $ 36.21 $ 23.19 to $ 34.18 $ 17.50 - $ 46.56 $ 23.19 - $ 41.58 Restricted Stock Units The Company issued restricted stock units in 2022, which vest over a four year period. The following table summarizes the Company’s restricted stock unit activity: Shares Weighted Unvested as of December 31, 2021 — $ — Issued 10,000 35.86 Vested — — Cancelled — — Unvested as of June 30, 2022 10,000 $ 35.86 As of June 30, 2022, there was approximately $ 0.3 million of unrecognized stock-based compensation expense related to restricted stock units that are expected to vest. These costs are expected to be recognized over a weighted-average period of approximately 3.7 years. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9. Income taxes The following table presents the income (loss) before income taxes, income tax (expense) benefit and effective income tax rates for all periods presented: Loss before income tax expense Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2022 2021 2022 2021 Domestic ( 22,064 ) ( 23,152 ) ( 37,706 ) ( 30,204 ) Foreign 30,507 ( 3,307 ) 165,682 ( 9,789 ) Loss before income tax expense 8,443 ( 26,459 ) 127,976 ( 39,993 ) Income tax expense ( 2,817 ) - ( 52,768 ) - Effective tax rate 33.4 % 0.0 % 41.2 % 0.0 % The effective tax rates for the three and six months ended June 30, 2022 were higher than the federal and foreign statutory rates of 21 % and 25 %, respectively, primarily due to the mix of income between the U.S. and Belgium, the Innovation Income Deduction in Belgium, which excludes 85 % of the net revenue generated from qualifying intellectual property from taxation, the taxation in the U.S. from the inclusion of foreign earnings under the Global Intangible Low-Taxed Income ("GILTI") regime, and capitalized research and development expenses under Section 174 of the Internal Revenue Code. In addition, the Company recorded an additional liability of $ 3.2 million and $ 25.5 million during the three and six months ended June 30, 2022, respectively, related to an uncertain tax position regarding the Company’s allocation of revenue between Belgium and the U.S. During the three and six months ended June 30, 2022, the Company had accrued interest and penalties relating to uncertain tax positions of $ 3.9 million, all of which was included in the unrecognized tax benefits liability in the condensed consolidated balance sheet as of June 30, 2022. The increase in the unrecognized tax benefits during the three and six months ended June 30, 2022 was caused by the recognition of additional revenue, and the resulting income, during those periods under the GSK Collaboration Agreement. As the uncertain tax position relates to the Company’s allocation of that revenue and resulting income between the U.S. and Belgium under the GSK Agreement, the additional recognition of revenue under that agreement increases the liability for the uncertain tax position. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | Note 10. Commitments and contingencies Purchase commitments The Company has contractual arrangements with research and development organizations and suppliers; however, these contracts are generally cancelable on 30 - 60 days ’ notice and the obligations under these contracts are largely based on services performed. The Company may also enter into contracts in the normal course of business with clinical research organizations for clinical trials, with contract manufacturing organizations for clinical supplies and with other vendors for preclinical studies, supplies and other services and products for operating purposes. These contracts generally provide for termination on notice. As of June 30, 2022 and December 31, 2021, there were no amounts accrued related to termination charges. The Company has entered into a Biologics Master Services Agreement with WuXi Biologics (Hong Kong) Limited ("WuXi") (the "WuXi Agreement"). The WuXi Agreement includes the terms and conditions under which WuXi will coordinate the Company’s biologics development and manufacturing services. Pursuant to the WuXi Agreement, the Company may be required to pay WuXi a royalty percentage or a one-time milestone payment on global net sales of third-party manufactured products at the Company’s election. The royalty or one-time milestone payment is only payable if the Company does not use WuXi as the manufacturer in part, or in totality. As of June 30, 2022 and December 31, 2021, there are no minimum commitments under the WuXi Agreement. Additionally, as of June 30, 2022 and December 31, 2021, there are no royalties or milestones payable. Operating leases The Company’s operating leases are as follows: • An April 2016 lease for 1,577 square meters of office and laboratory space in Gosselies, Belgium, which commenced in May 2016 and terminated in December 2021 . In January 2021, the Company entered into an amendment to extend the lease, effective February 2021 with a termination date of January 2030 , and increase the office and laboratory space by 201 square meters. In October 2021, the Company entered into an amendment to increase the office and laboratory space by 453 square meters. • A December 2018 lease for 2,479 square feet of office space in Cambridge, Massachusetts, which commenced in May 2019 and terminates in May 2022 . The lease is subject to fixed-rate rent escalations. • A November 2021 lease for 9,068 square feet of office space in Watertown, Massachusetts, which commenced in November 2021 and terminates in February 2027 . The lease is subject to fixed-rate rent escalations. • Various car leases that the Company enters into from time to time. The life of each car lease ranges from 48 to 60 months . The Company identified and assessed the following estimates in recognizing the operating lease right of use assets and corresponding liabilities. Expected lease term : The expected lease term includes non-cancelable lease periods and, when applicable, periods covered by an option to extend the lease if the Company is reasonably certain to exercise that option, as well as periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise that option. Incremental borrowing rate: As the discount rates in the Company’s lease are not implicit, management estimated the incremental borrowing rate based on the rate of interest the Company would have to pay to borrow a similar amount on a collateralized basis over a similar term. Lease and non-lease components: The Company is required to pay fees for operating expenses in addition to monthly base rent for certain operating leases ("non-lease components"). The Company has not elected the practical expedient which allows non-lease components to be combined with lease components for all asset classes. Variable non-lease components are not included within the lease right-of-use asset and lease liability on the condensed consolidated balance sheet, and instead are reflected as expense in the period they are paid. Rent expense was $ 0.3 million and $ 0.1 million for the three months ended June 30, 2022 and 2021, and $ 0.6 million and $ 0.3 million for the six months ended June 30, 2022 and 2021. The following table summarizes lease terms and discount rate: June 30, December 31, Weighted-average remaining lease term (years) 5.4 5.9 Weighted-average discount rate 4.78 % 4.76 % The following table summarizes the cash flow and other information: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2022 2021 2022 2021 Operating lease liabilities arising from obtaining right-of-use assets (non-cash) $ — $ 110 $ 177 $ 3,316 Operating cash flows used in operating leases $ 234 $ 189 $ 484 $ 374 As of June 30, 2022, the Company had the following future minimum lease payments under non-cancelable operating leases for the remainder of 2022 and the future years thereafter (in thousands): Year ending December 31: 2022 $ 503 2023 999 2024 982 2025 952 2026 924 Thereafter 1,197 Total lease payments 5,557 Less: interest ( 750 ) Total lease liability $ 4,807 Lease liabilities $ 778 Lease liabilities, net of current portion $ 4,029 In March 2019, the Company provided a letter of credit for approximately $ 57,000 to secure its obligation under its lease in Cambridge, Massachusetts. In November 2021, the Company provided a letter of credit for approximately $ 142,000 to secure its obligation under its lease in Watertown, Massachusetts. The Company maintains that amount of cash on hand (restricted) to fund any necessary draws on the letter of credit. In addition, as of June 30, 2022 and December 31, 2021, the Company had approximately $ 91,000 and $ 99,000 on hand serving as a guarantee for its lease obligation in Belgium. These amounts have been classified as restricted cash in the condensed consolidated balance sheets as of June 30, 2022 and December 31, 2021. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 11. Related party transactions On June 11, 2018, the Company entered into a Royalty Transfer Agreement with the charitable foundations of two of its investors (MPM Oncology Charitable Foundation, Inc. and UBS Optimus Foundation), which requires it to pay a royalty equal to a total of 1 % of its net product sales each year within 120 days following each year end. Such agreement was entered into as a result of the capital contributions received from the investors. As the Company has no product sales to date, no royalties were owed to these charitable foundations as of June 30, 2022. |
Net Income (Loss) Per Share Att
Net Income (Loss) Per Share Attributable to Common Stock | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Net Income (loss) per Share Attributable to Common Stock | Note 12. Net income (loss) per share attributable to common stock The Company grants certain stock options under the Company's 2019 and 2020 Stock Option Plan and these are considered common stock equivalents. For the period ending June 30, 2021, the common stock equivalents were excluded from the calculation of net income (loss) per share due to their anti-dilutive effect. For the period ending June 30, 2022, the common stock equivalents were included to calculate weighted-average diluted shares outstanding. The Company used the treasury stock method. The following table summarizes the impact of the treasury stock method: Net income (loss) per shares Three Months Ended June 30, Six Months Ended June 30, (in thousands, except per share amounts) 2022 2021 2022 2021 Numerator Net income (loss) attributable to common $ 5,626 $ ( 26,459 ) $ 75,208 $ ( 39,993 ) Denominator Weighted-average shares used in compute net 35,546,605 35,119,952 35,520,086 35,103,294 Effect of dilutive securities (a) 2,089,223 — 2,411,606 — Weighted-average shares used to compute net 37,635,828 35,119,952 37,931,692 35,103,294 Net income (loss) per share: Basic $ 0.16 $ ( 0.75 ) $ 2.12 $ ( 1.14 ) Diluted $ 0.15 $ ( 0.75 ) $ 1.98 $ ( 1.14 ) (a) The common stock equivalents were excluded for the three months and six months ending June 30, 2021, due to their anti-dilutive effect. |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The accompanying condensed consolidated financial statements and accompanying notes have been prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP"). The unaudited interim condensed consolidated financial statements of the Company included herein have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted from this report, as is permitted by such rules and regulations. Accordingly, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements as of and for the years ended December 31, 2021 and 2020, and the notes thereto, which are included in the Company’s Annual Report on Form 10-K (File No. 001-39401). The results for any interim period are not necessarily indicative of results for any future period. In the opinion of management, the information furnished reflects all adjustments, all of which are of a normal and recurring nature, necessary for a fair presentation of the results for the reported interim periods. The Company considers events or transactions that occur after the balance sheet date but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. The results of operations for interim periods are not necessarily indicative of results to be expected for the full year or any other interim period. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Summary of Financial Instruments Measured at Fair Value on a Recurring Basis | The following tables set forth the Company’s financial instruments that were measured at fair value on a recurring basis by level within the fair value hierarchy as of June 30, 2022 and December 31, 2021: June 30, 2022 (in thousands) Level 1 Level 2 Level 3 Total Cash equivalents (money market funds) $ 778,004 $ — $ — $ 778,004 Totals $ 778,004 $ — $ — $ 778,004 December 31, 2021 (in thousands) Level 1 Level 2 Level 3 Total Cash equivalents (money market funds) $ 797,448 $ — $ — $ 797,448 Totals $ 797,448 $ — $ — $ 797,448 |
Supplemental Balance Sheet In_2
Supplemental Balance Sheet Information (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Supplemental Balance Sheet Information [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net consisted of the following: (in thousands) June 30, December 31, Scientific equipment $ 3,027 $ 2,970 Furniture & office equipment 1,226 1,002 Leasehold improvements 1,039 1,071 Total 5,292 5,043 Accumulated depreciation and amortization ( 3,021 ) ( 2,971 ) Property & equipment, net $ 2,271 $ 2,072 |
Schedule of Accrued Expenses | Accrued expenses and other current liabilities consisted of the following: (in thousands) June 30, December 31, Accrued clinical trial costs $ 10,963 $ 12,991 Accrued personnel costs 2,723 3,884 Accrued professional fees 27 25 Accrued other 93 257 Total accrued expenses and other current liabilities $ 13,806 $ 17,157 |
License and Collaboration Agr_2
License and Collaboration Agreements (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
License Agreements [Abstract] | |
Schedule of Contract Assets and Liabilities | The following table presents changes in the Company’s GSK contract assets and liabilities during the six months ended June 30, 2022: Six Months Ended June 30, 2022 (in thousands) Balance at Additions Deductions Balance at End Contract Liabilities: Deferred Revenue $ 280,225 $ — $ ( 194,238 ) $ 85,987 |
Government Grant Funding and _2
Government Grant Funding and Potential Repayment Commitments Under Recoverable Cash Advance Grants (RCAs) (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Research and Development Arrangement with Federal Government [Abstract] | |
Schedule of Activity for Grant Programs | The following table reflects activity for grant programs for the three and six months ended June 30, 2022, and 2021 and end of period balances as of June 30, 2022, and December 31, 2021: RCA -1 RCA-2 Other Grants Total (In thousands) 2022 2021 2022 2021 2022 2021 2022 2021 Cash received during the $ — $ — $ — $ — $ 473 $ — $ 473 $ — Grant income recognized $ — $ 2,140 $ — $ 290 $ 147 $ 271 $ 147 $ 2,701 Cash received during the $ — $ — $ — $ — $ 473 $ — $ 473 $ — Grant income recognized $ — $ 2,995 $ 485 $ 725 $ 153 $ 3,896 $ 638 $ 7,616 Grants receivable at the end $ 1,680 $ 1,832 $ 1,634 $ 1,097 $ 690 $ 1,093 $ 4,004 $ 4,022 Grants repayable at the end $ 4,840 $ 5,278 $ 813 $ 886 N/A N/A $ 5,653 $ 6,164 As of June 30, 2022, $ 161 thousand of the grants repayable was included in accrued expenses and other current liabilities and the remaining balance was included in the grants repayable, net of current portion in the condensed consolidated balance sheet. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Stock-Based Compensation Expense | Stock-based compensation expense is classified in the condensed consolidated statements of operations and comprehensive income (loss) as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2022 2021 2022 2021 Research and development $ 1,148 $ 496 $ 1,756 $ 771 General and administrative 4,612 2,731 8,197 5,040 Total stock-based compensation expense $ 5,760 $ 3,227 $ 9,953 $ 5,811 |
Summary of Stock Options Activity | The following table summarizes stock option activity for the six months ended June 30, 2022: Stock Options Shares Weighted Weighted Aggregate Outstanding as of December 31, 2021 5,207,084 $ 14.35 7.7 Granted 1,237,467 33.79 Forfeited ( 26,831 ) 6.80 Exercised ( 109,322 ) 5.58 Outstanding as of June 30, 2022 6,308,398 $ 18.35 7.7 $ 45,432 Exercisable at June 30, 2022 2,649,909 $ 12.20 6.7 $ 27,105 |
Schedule of Fair Value Assumptions for Stock Options Granted | The following table summarizes the range of key assumptions used to determine the fair value of stock options granted during: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Risk-free interest rate 1.96 % - 3.07 % 0.84 % to 0.90 % 1.37 % - 3.07 % 0.42 % - 0.90 % Expected term (in years) 5.5 - 6 6 5.5 - 6 6 Expected volatility 86 % - 93 % 94 % to 99 % 86 % - 93 % 94 % - 100 % Expected dividend yield — — — — Estimated fair value of common stock $ 17.50 - $ 36.21 $ 23.19 to $ 34.18 $ 17.50 - $ 46.56 $ 23.19 - $ 41.58 |
Schedule of Restricted Stock Unit Activity | The following table summarizes the Company’s restricted stock unit activity: Shares Weighted Unvested as of December 31, 2021 — $ — Issued 10,000 35.86 Vested — — Cancelled — — Unvested as of June 30, 2022 10,000 $ 35.86 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income (Loss) Before Income Taxes, Income Tax (Expense) Benefit and Effective Income Tax Rates | The following table presents the income (loss) before income taxes, income tax (expense) benefit and effective income tax rates for all periods presented: Loss before income tax expense Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2022 2021 2022 2021 Domestic ( 22,064 ) ( 23,152 ) ( 37,706 ) ( 30,204 ) Foreign 30,507 ( 3,307 ) 165,682 ( 9,789 ) Loss before income tax expense 8,443 ( 26,459 ) 127,976 ( 39,993 ) Income tax expense ( 2,817 ) - ( 52,768 ) - Effective tax rate 33.4 % 0.0 % 41.2 % 0.0 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule Of Lease Terms And Discount Rate | The following table summarizes lease terms and discount rate: June 30, December 31, Weighted-average remaining lease term (years) 5.4 5.9 Weighted-average discount rate 4.78 % 4.76 % |
Schedule Of Cash Flow And Other Information | The following table summarizes the cash flow and other information: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2022 2021 2022 2021 Operating lease liabilities arising from obtaining right-of-use assets (non-cash) $ — $ 110 $ 177 $ 3,316 Operating cash flows used in operating leases $ 234 $ 189 $ 484 $ 374 |
Schedule of Future Minimum Lease Payments Under Non-cancelable Operating Leases | As of June 30, 2022, the Company had the following future minimum lease payments under non-cancelable operating leases for the remainder of 2022 and the future years thereafter (in thousands): Year ending December 31: 2022 $ 503 2023 999 2024 982 2025 952 2026 924 Thereafter 1,197 Total lease payments 5,557 Less: interest ( 750 ) Total lease liability $ 4,807 Lease liabilities $ 778 Lease liabilities, net of current portion $ 4,029 |
Net Income (Loss) Per Share A_2
Net Income (Loss) Per Share Attributable to Common Stock (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Net Income (loss) Per Shares By Treasury Stock Method | The following table summarizes the impact of the treasury stock method: Net income (loss) per shares Three Months Ended June 30, Six Months Ended June 30, (in thousands, except per share amounts) 2022 2021 2022 2021 Numerator Net income (loss) attributable to common $ 5,626 $ ( 26,459 ) $ 75,208 $ ( 39,993 ) Denominator Weighted-average shares used in compute net 35,546,605 35,119,952 35,520,086 35,103,294 Effect of dilutive securities (a) 2,089,223 — 2,411,606 — Weighted-average shares used to compute net 37,635,828 35,119,952 37,931,692 35,103,294 Net income (loss) per share: Basic $ 0.16 $ ( 0.75 ) $ 2.12 $ ( 1.14 ) Diluted $ 0.15 $ ( 0.75 ) $ 1.98 $ ( 1.14 ) (a) The common stock equivalents were excluded for the three months and six months ending June 30, 2021, due to their anti-dilutive effect. |
Nature of Business and Basis _2
Nature of Business and Basis of Presentation - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |||||||
Net income (loss) | $ 5,626 | $ 69,582 | $ (26,459) | $ (13,534) | $ 75,208 | $ (39,993) | $ 214,500 |
Retained earnings | $ 215,831 | $ 215,831 | $ 140,623 | ||||
Common stock | |||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |||||||
Net income (loss) | $ 0 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Financial Instruments Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents (money market funds) | $ 778,004 | $ 797,448 |
Totals | 778,004 | 797,448 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents (money market funds) | 778,004 | 797,448 |
Totals | 778,004 | $ 797,448 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents (money market funds) | 0 | |
Totals | 0 | |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents (money market funds) | 0 | |
Totals | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Fair Value, Inputs, Level 3 | Preferred Stock Tranche Rights Liability | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Level 3 fair value measurement | $ 0 | $ 0 | $ 0 | $ 0 |
Supplemental Balance Sheet In_3
Supplemental Balance Sheet Information - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 5,292 | $ 5,043 |
Accumulated depreciation and amortization | (3,021) | (2,971) |
Property & equipment, net | 2,271 | 2,072 |
Scientific Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 3,027 | 2,970 |
Furniture and Office Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 1,226 | 1,002 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 1,039 | $ 1,071 |
Supplemental Balance Sheet In_4
Supplemental Balance Sheet Information - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Supplemental Balance Sheet Information [Abstract] | ||||
Depreciation and amortization | $ 200 | $ 200 | $ 375 | $ 276 |
Supplemental Balance Sheet In_5
Supplemental Balance Sheet Information - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Payables and Accruals [Abstract] | ||
Accrued clinical trial costs | $ 10,963 | $ 12,991 |
Accrued personnel costs | 2,723 | 3,884 |
Accrued professional fees | 27 | 25 |
Accrued other | 93 | 257 |
Total accrued expenses and other current liabilities | $ 13,806 | $ 17,157 |
License and Collaboration Agr_3
License and Collaboration Agreements - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 11, 2021 | Jun. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2020 | Dec. 31, 2021 | |
Research And Development Arrangement Contract To Perform For Others [Line Items] | |||||
Upfront payment received | $ 625,000 | ||||
Accrued expenses and other current liabilities | $ 13,806 | 13,806 | $ 17,157 | ||
License and collaboration revenue | 41,716 | 194,238 | |||
Deferred Revenue | 85,987 | 85,987 | 280,225 | ||
Adimab L L C | |||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | |||||
Maximum additional receivable based on achievement of research milestones | 14,500 | $ 1,000 | |||
Additional Milestone Payment Accrued | 2,000 | 2,000 | |||
Adimab L L C | License revenue | |||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | |||||
License and collaboration revenue | 3,400 | ||||
Adimab L L C | Development Regulatory and Sales Milestone | |||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | |||||
Maximum option fees receivable based on achievement of research milestones | 45,800 | $ 45,800 | |||
GSK | |||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | |||||
Upfront payment received | $ 625,000 | ||||
Milestone payments | $ 1,450,000 | ||||
Costs related to global development plan | 60% | ||||
Costs related to the cost-sharing provisions | 5,200 | $ 10,500 | |||
Accounts payable for license agreement costs incurred | 2,600 | 2,800 | |||
Accrued expenses and other current liabilities | 2,600 | 2,600 | |||
Due to related parties | 3,000 | ||||
Related party transaction, expenses from transactions with related party | 900,000 | ||||
Eligible royalty payments percentage | 20% | ||||
Deferred Revenue | 86,000 | 86,000 | $ 280,200 | ||
Capitalized contract cost | 6,800 | 6,800 | |||
GSK | License revenue | |||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | |||||
License and collaboration revenue | $ 41,700 | $ 194,200 |
License and Collaboration Agr_4
License and Collaboration Agreements - Schedule of Contract Assets and Liabilities (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
License Agreements [Abstract] | |
Deferred revenue, Beginning balance | $ 280,225 |
Deferred revenue, Deductions | (194,238) |
Deferred revenue, Ending balance | $ 85,987 |
Government Grant Funding and _3
Government Grant Funding and Potential Repayment Commitments Under Recoverable Cash Advance Grants (RCAs) - Additional Information (Details) - USD ($) | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 03, 2019 | Jul. 20, 2017 | Jun. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Jun. 30, 2021 | |
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||||||
Research and development expenses | $ 900,000 | |||||
Percentage of royalty on revenue | 30% | 0.12% | ||||
Grant repayable | $ 5,653,000 | $ 6,164,000 | ||||
Accrued Expenses and Other Current Liabilities | ||||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||||||
Grant repayable | $ 161,000 | |||||
RCA-1 | ||||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||||||
Recoverable cash advance | $ 19,600 | |||||
Percentage of royalty on revenue | 0.33% | |||||
Grant repayable | $ 4,840,000 | 5,278,000 | ||||
RCA-2 | ||||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||||||
Recoverable cash advance | $ 4,500,000 | |||||
Percentage of royalty on revenue | 0.15% | |||||
Grant repayable | $ 813,000 | $ 886,000 | ||||
Royalty accruals | 800,000 | $ 900,000 | ||||
RCA-1 and RCA-2 | ||||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||||||
Percentage of repayment amount received under grant | 30% | |||||
Research And Development And Future Sales | ||||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||||||
Grant repayable | $ 0 | |||||
Minimum | ||||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||||||
Percentage of grant reimburse of actual qualifying expenditures | 55% | |||||
Minimum | RCA-1 and RCA-2 | ||||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||||||
Term of repayment amount received under grant | 2023 | |||||
Maximum | ||||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||||||
Percentage of grant reimburse of actual qualifying expenditures | 100% | |||||
Maximum | RCA-1 and RCA-2 | ||||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | ||||||
Term of repayment amount received under grant | 2042 |
Government Grant Funding and _4
Government Grant Funding and Potential Repayment Commitments Under Recoverable Cash Advance Grants (RCAs) - Schedule of Activity for Grant Programs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Research And Development Arrangement Contract To Perform For Others [Line Items] | |||||
Cash received | $ 473 | $ 473 | |||
Grant income | 147 | $ 2,701 | 638 | $ 7,616 | |
Grants receivable | 4,004 | 4,022 | 4,004 | 4,022 | $ 4,022 |
Grant repayable | 5,653 | 6,164 | 5,653 | 6,164 | |
RCA-1 | |||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | |||||
Cash received | 2,995 | ||||
Grant income | 2,140 | ||||
Grants receivable | 1,680 | 1,832 | 1,680 | 1,832 | |
Grant repayable | 4,840 | 5,278 | 4,840 | 5,278 | |
RCA-2 | |||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | |||||
Cash received | 485 | 725 | |||
Grant income | 290 | ||||
Grants receivable | 1,634 | 1,097 | 1,634 | 1,097 | |
Grant repayable | 813 | 886 | 813 | 886 | |
Other Grants | |||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | |||||
Cash received | 473 | 473 | 3,896 | ||
Grant income | 147 | 271 | 153 | ||
Grants receivable | $ 690 | $ 1,093 | $ 690 | $ 1,093 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) | 6 Months Ended | 12 Months Ended | ||
Jul. 28, 2020 $ / shares shares | Jul. 20, 2020 | Jun. 30, 2022 $ / shares shares | Dec. 31, 2021 $ / shares shares | |
Class Of Stock [Line Items] | ||||
Common stock, shares authorized | 150,000,000 | 150,000,000 | ||
Common stock, par value | $ / shares | $ 0.001 | $ 0.001 | ||
Preferred Stock Shares Authorized | 10,000,000 | 0 | ||
Preferred Stock, par value | $ / shares | $ 0.001 | $ 0.001 | ||
Common stock, voting rights | Each share of common stock entitles the holders to one vote on all matters submitted to a vote of the Company’s stockholders. | |||
Percentage of royalty on revenue | 30% | 0.12% | ||
IPO | ||||
Class Of Stock [Line Items] | ||||
Capital units, authorized | 160,000,000 | |||
Common stock, shares authorized | 150,000,000 | |||
Common stock, par value | $ / shares | $ 0.001 | |||
Preferred Stock Shares Authorized | 10,000,000 | |||
Preferred Stock, par value | $ / shares | $ 0.001 | |||
Common stock | ||||
Class Of Stock [Line Items] | ||||
Reverse stock split, conversion ratio | 0.30 |
Stock-based compensation - Addi
Stock-based compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | ||||
Jul. 15, 2020 | Jun. 30, 2022 | Jun. 30, 2021 | Jan. 01, 2022 | Dec. 31, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting percentage upon sale | 25% | ||||
Stock options vesting period | 36 months | ||||
Weighted-average estimated fair value of options awarded (in dollars per share) | $ 24.57 | $ 26.56 | |||
Maximum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share based compensation, stock options expiry period | 10 years | ||||
Minimum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share based compensation, stock options expiry period | 7 years | ||||
2020 ESPP | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Common stock reserved for future issuance | 667,931 | ||||
Percentage of outstanding shares increase in shares reserved for issuance | 1% | ||||
Maximum increase in common stock shares reserved for issuance | 634,969 | ||||
Stock Issued under Employee Stock Purchase Plans | 0 | ||||
Non Vested Stock Awards | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Unrecognized compensation costs for non-vested stock awards | $ 58.4 | ||||
Recognition period for compensation cost not yet recognized (in years, months, and days) | 2 years 10 months 24 days | ||||
Restricted Stock Units | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Recognition period for compensation cost not yet recognized (in years, months, and days) | 3 years 8 months 12 days | ||||
Unrecognized stock-based compensation expense related to restricted stock units | $ 0.3 | ||||
2019 Stock Option And Grant Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of options authorized | 3,464,316 | ||||
Amendment to 2019 Stock Option and Grant Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting percentage upon sale | 100% | ||||
2020 Stock Option and Incentive Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Cumulative increase in common stock reserve for issuance, percentage | 5% | ||||
Common stock reserved for future issuance | 7,335,355 | 5,562,055 | |||
Cumulative increase in common stock reserve for issuance | 1,773,300 |
Stock-based compensation - Summ
Stock-based compensation - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 5,760 | $ 3,227 | $ 9,953 | $ 5,811 |
Research and Development | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense | 1,148 | 496 | 1,756 | 771 |
General and Administrative Expense | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 4,612 | $ 2,731 | $ 8,197 | $ 5,040 |
Stock-based compensation - Su_2
Stock-based compensation - Summary of Stock Options Activity (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 USD ($) $ / shares shares | Dec. 31, 2021 $ / shares shares | |
Shares | ||
Outstanding as of December 31, 2021 | shares | 5,207,084 | |
Granted | shares | 1,237,467 | |
Forfeited | shares | (26,831) | |
Exercised | shares | (109,322) | |
Outstanding as of June 30, 2022 | shares | 6,308,398 | 5,207,084 |
Exercisable at June 30, 2022 | shares | 2,649,909 | |
Weighted-Average Exercise Price Per Share | ||
Outstanding as of December 31, 2021 | $ / shares | $ 14.35 | |
Granted | $ / shares | 33.79 | |
Forfeited | $ / shares | 6.80 | |
Exercised | $ / shares | 5.58 | |
Outstanding as of June 30, 2022 | $ / shares | 18.35 | $ 14.35 |
Exercisable at June 30, 2022 | $ / shares | $ 12.20 | |
Weighted-Average Remaining Contractual Term | ||
Options outstanding | 7 years 8 months 12 days | 7 years 8 months 12 days |
Exercisable at June 30, 2022 | 6 years 8 months 12 days | |
Aggregate Intrinsic Value | ||
Outstanding as of June 30, 2022 | $ | $ 45,432 | |
Exercisable at June 30, 2022 | $ | $ 27,105 |
Stock-based compensation - Sche
Stock-based compensation - Schedule of Fair Value Assumptions for Stock Options Granted (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Risk-free interest rate, Minimum | 1.96% | 0.84% | 1.37% | 0.42% |
Risk-free interest rate, maximum | 3.07% | 0.90% | 3.07% | 0.90% |
Expected Volatility, minimum | 86% | 94% | 86% | 94% |
Expected Volatility, maximum | 93% | 99% | 93% | 100% |
Expected dividend yield | 0% | 0% | 0% | 0% |
Minimum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected term (in years) | 5 years 6 months | 6 years | 5 years 6 months | 6 years |
Estimated fair value of common stock | $ 17.50 | $ 23.19 | $ 17.50 | $ 23.19 |
Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected term (in years) | 6 years | 6 years | ||
Estimated fair value of common stock | $ 36.21 | $ 34.18 | $ 46.56 | $ 41.58 |
Stock-based compensation - Sc_2
Stock-based compensation - Schedule of Restricted Stock Unit Activity (Details) - Restricted Stock Units | 6 Months Ended |
Jun. 30, 2022 $ / shares shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unvested as of December 31, 2021, Shares | shares | 0 |
Issued, Shares | shares | 10,000 |
Vested, Shares | shares | 0 |
Cancelled, Shares | shares | 0 |
Unvested as of June 30, 2022, Shares | shares | 10,000 |
Unvested as of December 31, 2021, Weighted average grant date fair value | $ / shares | $ 0 |
Issued, Weighted average grant date fair value | $ / shares | 35.86 |
Vested, Weighted average grant date fair value | $ / shares | 0 |
Cancelled, Weighted average grant date fair value | $ / shares | 0 |
Unvested as of June 30, 2022, Weighted average grant date fair value | $ / shares | $ 35.86 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income (Loss) Before Income Taxes, Income Tax (Expense) Benefit and Effective Income Tax Rates (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Domestic | $ (22,064) | $ (23,152) | $ (37,706) | $ (30,204) |
Foreign | 30,507 | (3,307) | 165,682 | (9,789) |
Income (loss) before income taxes | 8,443 | $ (26,459) | 127,976 | $ (39,993) |
Income tax expense | $ (2,817) | $ (52,768) | ||
Effective tax rate | 33.40% | 0% | 41.20% | 0% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | |
Income Tax Contingency [Line Items] | ||
Effective income tax rate reconciliation, at Federal statutory income tax rate, Percent | 21% | |
Effective income tax rate reconciliation tax credits foreign | 25% | |
Liability for uncertain tax position current | $ 3.2 | $ 25.5 |
Unrecognized tax benefits income tax interest accrued and penalties | $ 3.9 | $ 3.9 |
Intellectual Property | ||
Income Tax Contingency [Line Items] | ||
Percentage of net revenue | 85% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Jan. 31, 2021 | Jun. 30, 2022 USD ($) m² ft² | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) m² ft² | Jun. 30, 2021 USD ($) | Sep. 30, 2021 | Dec. 31, 2021 USD ($) | Nov. 30, 2021 USD ($) | Mar. 31, 2019 USD ($) | |
Other Commitments [Line Items] | |||||||||
Land subject to leases | m² | 1,577 | 1,577 | |||||||
Operating leases, rent expense | $ 300,000 | $ 100,000 | $ 600,000 | $ 300,000 | |||||
Extension of office lease | In January 2021, the Company entered into an amendment to extend the lease, effective February 2021 with a termination date of January 2030, and increase the office and laboratory space | ||||||||
Wu Xi Agreement | |||||||||
Other Commitments [Line Items] | |||||||||
Minimum commitments | 0 | $ 0 | $ 0 | ||||||
Payments for Royalties | 0 | 0 | |||||||
Gosselies, Belgium | |||||||||
Other Commitments [Line Items] | |||||||||
Operating lease, Hand serving to secure lease obligation | $ 91,000,000 | $ 91,000,000 | 99,000 | ||||||
Cambridge, Massachusetts | |||||||||
Other Commitments [Line Items] | |||||||||
Land subject to leases | ft² | 2,479 | 2,479 | |||||||
Lease expiration date | May 31, 2022 | ||||||||
Operating lease, Letter of credit to secure lease obligation | $ 57,000 | ||||||||
Watertown Massachusetts [Member] | |||||||||
Other Commitments [Line Items] | |||||||||
Land subject to leases | ft² | 9,068 | 9,068 | |||||||
Operating lease, Letter of credit to secure lease obligation | $ 142,000 | ||||||||
Office and Laboratory Space | Gosselies, Belgium | |||||||||
Other Commitments [Line Items] | |||||||||
Lease commencement date | Feb. 28, 2021 | May 31, 2016 | |||||||
Lease expiration date | Jan. 31, 2030 | Dec. 31, 2021 | |||||||
Lessee, operating lease, existence of option to extend [true false] | true | ||||||||
Office and Laboratory Space | Gosselies, Belgium | AmendmentToExtendLeaseMember | |||||||||
Other Commitments [Line Items] | |||||||||
Increase land subject to leases | m² | 201 | 201 | |||||||
Office and Laboratory Space | Gosselies, Belgium | Agreement To Extend Lease Member | |||||||||
Other Commitments [Line Items] | |||||||||
Increase land subject to leases | ft² | 453 | 453 | |||||||
Office | Cambridge, Massachusetts | |||||||||
Other Commitments [Line Items] | |||||||||
Lease commencement date | May 31, 2019 | ||||||||
Lease expiration date | Feb. 28, 2027 | ||||||||
Office | Watertown Massachusetts [Member] | |||||||||
Other Commitments [Line Items] | |||||||||
Lease commencement date | Nov. 30, 2021 | ||||||||
Contract Termination | |||||||||
Other Commitments [Line Items] | |||||||||
Restructuring charges | $ 0 | $ 0 | |||||||
Minimum | |||||||||
Other Commitments [Line Items] | |||||||||
Contractual Agreement Cancelation Notice period | 30 days | ||||||||
Average car lease duration | 48 months | 48 months | |||||||
Maximum | |||||||||
Other Commitments [Line Items] | |||||||||
Contractual Agreement Cancelation Notice period | 60 days | ||||||||
Average car lease duration | 60 months | 60 months |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule Of Lease Terms And Discount Rate (Details) | Jun. 30, 2022 | Dec. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
Weighted-average remaining lease term (years) | 5 years 4 months 24 days | 5 years 10 months 24 days |
Weighted-average discount rate | 4.78% | 4.76% |
Commitments and Contingencies_3
Commitments and Contingencies -Schedule Of Cash Flow And Other Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Operating lease liabilities arising from obtaining right-of-use assets | $ 0 | $ 110 | $ 177 | $ 3,316 |
Operating cash flows used in operating leases | $ 234 | $ 189 | $ 484 | $ 374 |
Commitments and Contingencies_4
Commitments and Contingencies - Schedule of Future Minimum Lease Payments Under Non-cancelable Operating Leases (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
2022 | $ 503 | |
2023 | 999 | |
2024 | 982 | |
2025 | 952 | |
2026 | 924 | |
Thereafter | 1,197 | |
Total lease payments | 5,557 | |
Less: interest | (750) | |
Total lease liability | 4,807 | |
Lease liabilities | 778 | $ 770 |
Lease liabilities, net of current portion | $ 4,029 | $ 4,571 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) | 3 Months Ended | 6 Months Ended | |
Jun. 11, 2018 USD ($) Investor | Jun. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | |
Related Party Transaction [Line Items] | |||
Net product sales | $ 41,716,000 | $ 194,238,000 | |
Royalty Transfer Agreement | |||
Related Party Transaction [Line Items] | |||
Royalty owed to charitable foundation | $ 0 | $ 0 | |
Royalty Transfer Agreement | Product | |||
Related Party Transaction [Line Items] | |||
Net product sales | $ 0 | ||
Royalty Transfer Agreement | MPM Oncology Charitable Foundation, Inc. and UBS Optimus Foundation | |||
Related Party Transaction [Line Items] | |||
Number of investors | Investor | 2 | ||
Obligation to pay royalties | royalty equal to a total of 1% of its net product sales each year within 120 days following each year end. | ||
Percentage of royalty required to pay | 1% |
Net Income (loss) per Share A_3
Net Income (loss) per Share Attributable to Common Stock - Schedule of Net Income (loss) Per Shares By Treasury Stock Method (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Numerator | |||||
Net income (loss) attributable to common stockholders | $ 5,626 | $ (26,459) | $ 75,208 | $ (39,993) | |
Denominator | |||||
Weighted-average common shares outstanding - basic | 35,546,605 | 35,119,952 | 35,520,086 | 35,103,294 | |
Effect of dilutive securities (a) | [1] | 2,089,223 | 0 | 2,411,606 | 0 |
Weighted-average common shares outstanding - diluted | 37,635,828 | 35,119,952 | 37,931,692 | 35,103,294 | |
Basic net income (loss) per common share | $ 0.16 | $ (0.75) | $ 2.12 | $ (1.14) | |
Diluted net income (loss) per common share | $ 0.15 | $ (0.75) | $ 1.98 | $ (1.14) | |
[1] The common stock equivalents were excluded for the three months and six months ending June 30, 2021, due to their anti-dilutive effect. |