Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 02, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
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 | 139 Main Street | |
Entity Address City Or Town | Cambridge | |
Entity Address State Or Province | MA | |
Entity Address Postal Zip Code | 02142 | |
City Area Code | 339 | |
Local Phone Number | 217 0161 | |
Entity Common Stock Shares Outstanding | 35,273,893 | |
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 | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 899,767 | $ 336,326 |
Grants receivable | 4,891 | 133 |
Research and development tax credits receivable | 539 | 192 |
Prepaid expenses and other current assets | 8,940 | 2,893 |
Total current assets | 914,137 | 339,544 |
Property and equipment, net | 2,121 | 1,352 |
Research and development tax credits receivable | 2,852 | 3,286 |
Restricted cash | 137 | 128 |
Right of use assets | 2,859 | |
Other assets | 273 | 248 |
Total assets | 922,379 | 344,558 |
Current liabilities: | ||
Accounts payable | 4,707 | 3,026 |
Accrued expenses and other current liabilities | 12,189 | 7,486 |
Income tax payable | 2,771 | |
Deferred income | 522,075 | 4,486 |
Lease liabilities | 486 | |
Total current liabilities | 542,228 | 14,998 |
Grants repayable, net of current portion | 5,548 | 5,883 |
Other noncurrent liabilities | 181 | 480 |
Lease liabilities, net of current portion | 2,383 | |
Total liabilities | 550,340 | 21,361 |
Commitments and contingencies (Note 9) | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value; 10,000,000 shares authorized; zero shares issued or outstanding at September 30, 2021 and December 31, 2020 | ||
Common stock, $0.001 par value, 150,000,000 shares authorized; 35,257,464 and 35,044,758 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively | 35 | 35 |
Additional paid-in capital | 407,499 | 396,443 |
Accumulated other comprehensive income | 8,754 | 617 |
Accumulated deficit | (44,249) | (73,898) |
Total stockholders’ equity | 372,039 | 323,197 |
Total liabilities and stockholders’ equity | $ 922,379 | $ 344,558 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
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 | 35,257,464 | 35,044,758 |
Common stock, shares outstanding | 35,257,464 | 35,044,758 |
Preferred Stock, par value | $ 0.001 | $ 0.001 |
Preferred Stock Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue: | ||||
License Revenue | $ 104,271 | $ 104,271 | ||
Total Revenue | 104,271 | 104,271 | ||
Operating expenses: | ||||
Research and development expenses | 16,102 | $ 8,726 | 41,983 | $ 20,688 |
General and administrative expenses | 8,761 | 4,799 | 30,907 | 9,611 |
Total operating expenses | 24,863 | 13,525 | 72,890 | 30,299 |
Income (loss) from operations | 79,408 | (13,525) | 31,381 | (30,299) |
Other income and expenses: | ||||
Grant income | 1,320 | 2,299 | 8,936 | 4,969 |
Fair value adjustment for preferred stock tranche rights liability | 1,265 | |||
Research and development tax credits | 169 | 273 | 288 | 643 |
Other income (expense), net | (8,484) | 265 | (8,185) | 235 |
Income (loss) before income taxes | 72,413 | (10,688) | 32,420 | (23,187) |
Income tax (expense) benefit | (2,771) | 8 | (2,771) | 58 |
Net income (loss) | 69,642 | (10,680) | 29,649 | (23,129) |
Cumulative dividends on Series A preferred stock | (36) | (249) | ||
Accretion of redeemable convertible preferred stock to redemption value | (5,120) | |||
Net income (loss) attributable to common stockholders | $ 69,642 | $ (11,647) | $ 29,649 | $ (28,498) |
Basic net income (loss) per common share | $ 1.98 | $ (0.48) | $ 0.84 | $ (3.40) |
Diluted net income (loss) per common share | $ 1.86 | $ (0.48) | $ 0.79 | $ (3.40) |
Weighted-average common shares outstanding - basic | 35,196,995 | 24,349,222 | 35,134,692 | 8,376,860 |
Weighted-average common shares outstanding - diluted | 37,482,089 | 24,349,222 | 37,539,184 | 8,376,860 |
Net income (loss) | $ 69,642 | $ (10,680) | $ 29,649 | $ (23,129) |
Foreign currency translation adjustments | 8,516 | 393 | 8,137 | 321 |
Comprehensive income (loss) | $ 78,158 | (10,287) | $ 37,786 | (22,808) |
Series A Preferred Stock | ||||
Other income and expenses: | ||||
Accretion of redeemable convertible preferred stock to redemption value | $ (931) | $ (5,120) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders' Equity/Deficit (Unaudited) - USD ($) $ in Thousands | Total | Common stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated deficit | Series A Preferred Stock | Series B Preferred Stock |
Beginning balance at Dec. 31, 2019 | $ (36,088) | $ 1 | $ (224) | $ (35,865) | |||
Temporary equity, beginning balance (in shares) at Dec. 31, 2019 | 6,167,726 | 20,942,781 | |||||
Temporary equity, beginning balance at Dec. 31, 2019 | $ 5,353 | $ 46,404 | |||||
Beginning balance (in shares) at Dec. 31, 2019 | 256,548 | ||||||
Issuance of Preferred Stock | $ 125,026 | ||||||
Issuance of Preferred Stock (in shares) | 44,453,477 | ||||||
Settlement of preferred stock tranche right | 4,135 | $ 4,135 | |||||
Accretion of Series B and B-2 Preferred Stock to redemption value | (1,195) | (1,195) | $ 1,195 | ||||
Stock-based compensation | 186 | 186 | |||||
Currency translation adjustment | (317) | (317) | |||||
Net income (loss) | (5,247) | (5,247) | |||||
Ending balance at Mar. 31, 2020 | (38,526) | $ 1 | 3,126 | (541) | (41,112) | ||
Temporary equity, ending balance (in shares) at Mar. 31, 2020 | 6,167,726 | 65,396,258 | |||||
Temporary equity, ending balance at Mar. 31, 2020 | $ 5,353 | $ 172,625 | |||||
Ending balance (in shares) at Mar. 31, 2020 | 256,548 | ||||||
Beginning balance at Dec. 31, 2019 | (36,088) | $ 1 | (224) | (35,865) | |||
Temporary equity, beginning balance (in shares) at Dec. 31, 2019 | 6,167,726 | 20,942,781 | |||||
Temporary equity, beginning balance at Dec. 31, 2019 | $ 5,353 | $ 46,404 | |||||
Beginning balance (in shares) at Dec. 31, 2019 | 256,548 | ||||||
Settlement of preferred stock tranche right | 4,135 | ||||||
Net income (loss) | (23,129) | ||||||
Ending balance at Sep. 30, 2020 | 335,626 | $ 35 | 394,488 | 97 | (58,994) | ||
Ending balance (in shares) at Sep. 30, 2020 | 35,044,758 | ||||||
Beginning balance at Mar. 31, 2020 | (38,526) | $ 1 | 3,126 | (541) | (41,112) | ||
Temporary equity, beginning balance (in shares) at Mar. 31, 2020 | 6,167,726 | 65,396,258 | |||||
Temporary equity, beginning balance at Mar. 31, 2020 | $ 5,353 | $ 172,625 | |||||
Beginning balance (in shares) at Mar. 31, 2020 | 256,548 | ||||||
Accretion of Series B and B-2 Preferred Stock to redemption value | (2,994) | (2,994) | $ 2,994 | ||||
Stock-based compensation | 350 | 350 | |||||
Common stock issued upon exercises of options | 205 | 205 | |||||
Common stock issued upon exercises of options (in shares) | 131,867 | ||||||
Currency translation adjustment | 245 | 245 | |||||
Net income (loss) | (7,202) | (7,202) | |||||
Ending balance at Jun. 30, 2020 | (47,922) | $ 1 | 687 | (296) | (48,314) | ||
Temporary equity, ending balance (in shares) at Jun. 30, 2020 | 6,167,726 | 65,396,258 | |||||
Temporary equity, ending balance at Jun. 30, 2020 | $ 5,353 | $ 175,619 | |||||
Ending balance (in shares) at Jun. 30, 2020 | 388,415 | ||||||
Accretion of Series B and B-2 Preferred Stock to redemption value | (931) | (931) | 931 | ||||
Conversion of redeemable convertible preferred stock to common stock upon closing of initial public offering | 181,903 | $ 22 | 181,881 | $ (5,353) | $ (176,550) | ||
Conversion of redeemable convertible preferred stock to common stock upon closing of initial public offering, Shares | 22,460,076 | (6,167,726) | (65,396,258) | ||||
Issuance of common stock from initial public offering | 210,699 | $ 12 | 210,687 | ||||
Issuance of common stock from initial public offering, shares | 12,091,675 | ||||||
Stock-based compensation | 1,714 | 1,714 | |||||
Common stock issued upon exercises of options | 450 | 450 | |||||
Common stock issued upon exercises of options (in shares) | 104,592 | ||||||
Currency translation adjustment | 393 | 393 | |||||
Net income (loss) | (10,680) | (10,680) | |||||
Ending balance at Sep. 30, 2020 | 335,626 | $ 35 | 394,488 | 97 | (58,994) | ||
Ending balance (in shares) at Sep. 30, 2020 | 35,044,758 | ||||||
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 | ||||||
Common stock issued upon exercises of options (in shares) | 212,706 | ||||||
Net income (loss) | $ 29,649 | ||||||
Ending balance at Sep. 30, 2021 | 372,039 | $ 35 | 407,499 | 8,754 | (44,249) | ||
Ending balance (in shares) at Sep. 30, 2021 | 35,257,464 | ||||||
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 | ||||||
Stock-based compensation | 3,942 | 3,942 | |||||
Common stock issued upon exercises of options | 441 | $ 109,354 | 441 | ||||
Currency translation adjustment | 8,516 | 8,516 | |||||
Net income (loss) | 69,642 | 69,642 | |||||
Ending balance at Sep. 30, 2021 | $ 372,039 | $ 35 | $ 407,499 | $ 8,754 | $ (44,249) | ||
Ending balance (in shares) at Sep. 30, 2021 | 35,257,464 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders' Equity/Deficit (Unaudited) (Parenthetical) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Series B-2 Preferred Stock | |
Net of Issuance costs | $ 332 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities | ||
Net income (loss) | $ 29,649 | $ (23,129) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 452 | 392 |
Stock-based compensation | 9,753 | 2,250 |
Change in operating lease right-of-use assets | 10 | |
Fair value adjustment for preferred stock tranche rights liability | (1,265) | |
Deferred rent | (11) | |
Changes in operating assets and liabilities: | ||
Grants receivable | (4,927) | 3,007 |
Research and development tax credits receivable | (98) | (505) |
Prepaid expenses and other current assets | (6,304) | (2,346) |
Accounts payable | 1,763 | 901 |
Accrued expenses and other liabilities | 4,732 | 1,579 |
Income tax payable | 2,771 | |
Deferred income | 534,155 | (585) |
Net cash provided by (used in) operating activities | 571,956 | (19,712) |
Cash flows from investing activities | ||
Purchase of property and equipment | (1,019) | (222) |
Purchase of other assets | (62) | (21) |
Net cash used in investing activities | (1,081) | (243) |
Cash flows from financing activities | ||
Proceeds from initial public offering, net of underwriting discount | 213,660 | |
Payment of initial public offering costs | (2,691) | |
Proceeds from issuance of common stock upon exercise of options | 1,303 | 655 |
Proceeds from grants repayable | 2,856 | |
Net cash provided by financing activities | 1,303 | 339,506 |
Effects of exchange rate changes on cash, cash equivalents and restricted cash | (8,728) | 566 |
Net increase in cash, cash equivalents and restricted cash | 563,450 | 320,117 |
Cash, cash equivalents and restricted cash at beginning of period | 336,454 | 19,990 |
Cash, cash equivalents and restricted cash at end of period | 899,904 | 340,107 |
Non-cash investing and financing activities | ||
Conversion of redeemable convertible preferred stock to common stock upon closing of the initial public offering | 181,903 | |
Capital expenditure included in accounts payable | 224 | |
Accretion of Series B and B-2 Preferred Stock to redemption value | 5,120 | |
Settlement of preferred stock tranche right | 4,135 | |
Deferred IPO costs in accounts payable | 270 | |
Operating lease liabilities arising from obtaining right-of-use assets | $ 3,322 | |
Supplemental disclosure of cash flows | ||
Cash paid for taxes | 147 | |
Series B-2 Preferred Stock | ||
Cash flows from financing activities | ||
Proceeds from issuance of Preferred Stock | 125,358 | |
Payment of issuance costs on Series B-2 Preferred Stock | $ (332) |
Nature of Business and Basis of
Nature of Business and Basis of Presentation | 9 Months Ended |
Sep. 30, 2021 | |
Disclosure Text Block [Abstract] | |
Nature of Business and Basis of Presentation | Note 1. Nature of business and basis of presentation Description of business and corporate reorganization iTeos Therapeutics, Inc. (iTeos Inc. or the Company), a Delaware corporation headquartered in Cambridge, 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 highly differentiated immuno-oncology therapeutics for patients. The Company leverages its deep understanding of the tumor microenvironment and cancer immunology and immunosuppressive pathways to design novel product candidates with the potential to fully restore the immune response against cancer. The Company’s innovative pipeline includes two clinical-stage programs targeting novel, validated immuno-oncology pathways designed with optimized pharmacologic properties for improved clinical outcomes. The Company’s antibody product candidate, EOS-448, is a high affinity, potent, anti-TIGIT antibody with a functional Fc domain, designed to enhance the anti-tumor response through a multifaceted immune modulatory mechanism. EOS-448 is being evaluated in two Phase 1/2 clinical trials in adult cancer patients with advanced solid tumors, the first evaluating monotherapy and the second evaluating EOS-448 in combinations with pembrolizumab and with inupadenant. The Company is also advancing inupadenant, a next-generation adenosine A2A receptor antagonist tailored to overcome cancer immunosuppression. Inupadenant is being evaluated in two early phase trials in adult cancer patients with advanced solid tumors of inupadenant monotherapy and inupadenant combinations with pembrolizumab and with chemotherapy, and we are evaluating a salt form of inupadenant. The Company also has a preclinical pipeline targeting additional mechanisms. On October 4, 2019, the Company completed a corporate reorganization in which iTeos Inc., iTeos Belgium, and the stockholders of iTeos Belgium entered into an Equity Contribution and Exchange Agreement (Share Exchange), pursuant to which all outstanding shares of preferred stock, common stock and profit certificates of iTeos Belgium were exchanged on a one-for-one basis for newly issued shares of iTeos Inc. iTeos Inc. was a newly-formed holding company, and as a result of the Share Exchange, iTeos Belgium became a wholly owned subsidiary of iTeos Inc. iTeos Therapeutics U.S. Inc. (iTeos U.S.) included the Company’s U.S. operations and was located in Cambridge, Massachusetts. iTeos U.S., which was a wholly owned subsidiary of iTeos Belgium prior to the Share Exchange, continued to be a wholly owned subsidiary of iTeos Belgium throughout 2019. On February 28, 2020, iTeos Inc. purchased iTeos U.S. from iTeos Belgium and then the entities effectively merged. The Share Exchange was accounted for in accordance with the Financial Accounting Standards Board (FASB) Accounting Standard Codification (ASC) 805-50, Business Combinations—Related Issues On December 2, 2020, iTeos Securities Corporation (iTeos SC) was incorporated as a Massachusetts Security Corporation. It is a wholly-owned subsidiary of iTeos Inc. On July 27, 2021, iTeos BE, LLC (iTeos LLC) was incorporated as a Delaware Limited Liability Company. It is a wholly-owned subsidiary of iTeos Belgium. Reverse Stock Split and Initial Public Offering On July 20, 2020, the Company effected a 1-for-3.3115 reverse stock split of the Company’s common stock and adjusted the ratio at which the Company’s preferred stock is convertible into common stock, as well as the number of shares under the 2019 Stock Option and Grant Plan and the Amended and Restated Certificate of Incorporation of iTeos Therapeutics, Inc., as well as the share amounts of stock grants under the plan and the number of options and exercise prices of options under the plan. All shares of common stock, stock options exercisable for shares of common stock, and per share information presented in the accompanying consolidated financial statements and notes thereto have been adjusted, where applicable, to reflect the reverse stock split on a retroactive basis for all periods presented. There was no change in the par value of the Company’s common stock. On July 28, 2020, the Company completed its initial public offering (IPO), in which the Company issued and sold 10,586,316 shares of its common stock, for aggregate gross proceeds of $201.1 million and its shares started trading on The Nasdaq Global Select Market under the ticker symbol “ITOS.” The Company received approximately $184.0 million in net proceeds after deducting underwriting discounts and commissions and other estimated offering expenses payable by the Company. Upon closing of the IPO, all of the Company's outstanding shares of convertible preferred stock automatically converted into 22,460,076 shares of common stock. On August 5, 2020, the underwriters purchased an additional 1,505,359 shares of common stock pursuant to their option to purchase additional shares for net proceeds of $26.6 million after deducting underwriting discounts and commissions. 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 the current period, which equaled net income of $29.6 million for the nine months ended September 30, 2021. As of September 30, 2021, the Company had an accumulated deficit of $44.2 million. As of November 10, 2021, the issuance date of the condensed consolidated financial statements for the nine months ended September 30, 2021, the Company expected 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 from the issuance date of the condensed consolidated financial statements. 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 2020 and in the first nine months of 2021, the Company has maintained and expanded 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 its employees, and their families and communities, the Company restricted access to its offices to personnel who performed critical activities that must be completed on-site, limited the number of such personnel that could be present at its facilities at any one time, and requested that most of its employees work remotely. In May 2020, as certain states eased restrictions, the Company established new protocols to better allow its full laboratory staff access to the Company’s facilities. These protocols included several shifts working over a seven-day-week protocol. 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, 2020 and 2019, 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 | 9 Months Ended |
Sep. 30, 2021 | |
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, 2020, 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 24, 2021. Since the date of those financial statements, there have been no material changes to significant accounting policies except as noted below. Principles of consolidation The accompanying condensed consolidated financial statements include the Company’s accounts and those of its wholly owned subsidiaries. All intercompany accounts, transactions and balances have been eliminated. Use of estimates The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses, as well as the related disclosures of contingent assets and liabilities. The Company bases its estimates and assumptions on historical experiences, when available, and on various factors that it believes to be reasonable under the circumstances. The Company evaluates its estimates and assumptions on an ongoing basis. Actual results could differ materially from these estimates. The full extent to which the COVID-19 pandemic will directly or indirectly impact the Company’s business, results of operations and financial condition, including expenses, research and development costs and employee-related amounts, will depend on future developments that are highly uncertain, including as a result of new information that may emerge concerning COVID-19 and the actions taken to contain or treat COVID-19, as well as the economic impact on local, regional, national and international markets. The Company has considered the impact of COVID-19 on estimates within its financial statements and there may be changes to those estimates in future periods. As of the date of issuance of these unaudited condensed consolidated financial statements, the Company has not experienced material business disruptions or incurred impairment losses in the carrying value of its assets as a result of the pandemic and is not aware of any specific related event or circumstance that would require it to update its estimates. Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents consist of standard checking accounts, money market accounts, and a sweep account that consists of money market funds with highly liquid investments with maturities of three months or less. Restricted cash represents collateral provided for letters of credit issued as security deposits in connection with the Company’s leases of its corporate facilities. Revenue Recognition As of September 30, 2021, all of the Company’s revenue to date had been collaboration revenue generated from its Collaboration and License Agreement with GlaxoSmithKline The Company analyzes its collaboration arrangements to assess whether they are within the scope of Accounting Standards Codification ASC Topic 808, Collaborative Arrangements ( Research and Development Revenue from Contracts with Customers At inception, the Company determines whether contracts are within the scope of ASC 606 or other topics. For contracts that are determined to be within the scope of ASC 606, revenue is recognized when a customer obtains control of promised goods or services. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for these goods and services. To achieve this core principle, the Company applies the following five steps (i) identify the contract with the customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when performance obligation is satisfied. The Company only applies the five-step model to contracts when it determines that collection of substantially all consideration for goods and services that are transferred is probable based on the customer’s intent and ability to pay the promised consideration. Performance obligations promised in a contract are identified based on the goods and services that will be transferred to the customer that are both capable of being distinct and are distinct in the context of the contract. To the extent a contract includes multiple promised goods and services, the Company applies judgment to determine whether promised goods and services are both capable of being distinct and distinct in the context of the contract. If these criteria are not met, the promised goods and services are accounted for as a combined performance obligation. The transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring goods and services to the customer. To the extent the transaction price includes variable consideration, the Company estimates the amount of variable consideration that should be included in the transaction price utilizing either the expected value method or the most likely amount method, depending on the nature of the variable consideration. Variable consideration is included in the transaction price if, in management’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. Any estimates, including the effect of the constraint on variable consideration, are evaluated at each reporting period for any changes. Determining the transaction price requires significant judgment. If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation on a relative standalone selling price basis unless the transaction price is variable and meets the criteria to be allocated entirely to a performance obligation or to a distinct service that forms part of a single performance obligation. The consideration to be received is allocated among the separate performance obligations based on relative standalone selling prices. The Company typically determines standalone selling prices using an adjusted market assessment approach model. The Company satisfies performance obligations either over time or at a point in time. Revenue is recognized over time if either (i) the customer simultaneously receives and consumes the benefits provided by the entity’s performance, (ii) the entity’s performance creates or enhances an asset that the customer controls as the asset is created or enhanced, or (iii) the entity’s performance does not create an asset with an alternative use to the entity and the entity has an enforceable right to payment for performance completed to date. If the entity does not satisfy a performance obligation over time, the related performance obligation is satisfied at a point in time by transferring the control of a promised good or service to a customer For licenses of intellectual property (IP), if the license to the Company’s IP is determined to be distinct from the other performance obligations identified in the arrangement, the Company recognizes revenues from consideration allocated to the license when the license is transferred to the customer and the customer can use and benefit from the licenses. For licenses that are combined with other promises, the Company utilizes judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress for purposes of recognizing revenue. The Company evaluates the measure of progress each reporting period and, if necessary, adjusts the measure of performance and related revenue recognition. At the inception of each arrangement that includes development or regulatory milestone payments, the Company evaluates the probability of reaching the milestones and estimate the amount to be included in the transaction price using the most likely amount method. If it is probable that a significant revenue reversal would not occur in the future, the associated milestone value is included in the transaction price. Milestone payments that are not within the Company’s control or the licensee’s, such as regulatory approvals, are not considered probable of being achieved until those approvals are received and therefore revenue recognized is constrained as management is unable to assert that a reversal of revenue would not be possible. The transaction price is then allocated to each performance obligation on a relative standalone selling price basis, for which the Company recognizes revenue as or when the performance obligations under the contract are satisfied. At the end of each subsequent reporting period, the Company re-evaluates the probability of achievement of such development milestones and any related constraint, and if necessary, adjusts its estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect revenues and earnings in the period of adjustment. To date, the Company has not recognized any milestone revenue resulting from any of its agreements. For arrangements that include sales-based royalties, including milestone payments based on levels of sales, if the license is deemed to be the predominant item to which the royalties relate, the Company recognizes revenue at the later of (i) when the related sales occur, or (ii) when the performance obligation to which some or all of the royalty has been allocated has been satisfied (or partially satisfied). To date, the Company has not recognized any royalty revenue resulting from any of its agreements. Deferred revenue arises from amounts received in advance of the culmination of the earnings process and is recognized as revenue in future periods as performance obligations are satisfied. Deferred revenue expected to be recognized within the next twelve months is classified as a current liability. Upfront payment contract liabilities resulting from the Company’s license agreements do not represent a financing component as the payment is not financing the transfer of goods or services, and the technology underlying the licenses granted reflects research and development expenses already incurred by the Company. Contract costs The Company recognizes as an asset the incremental costs of obtaining a contract with a customer if the costs are expected to be recovered. The Company has elected the practical expedient in ASC 340, Other Assets and Deferred Costs Recently adopted accounting standards updates On January 1, 2021, the Company adopted Accounting Standard Update, or ASU No. 2016-02 (Topic 842), Leases At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the unique facts and circumstances present in the arrangement. Leases with a term greater than one year are recognized on the balance sheet as ROU assets and short-term and long-term lease liabilities, as applicable. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. The Company typically only includes an initial lease term in its assessment of a lease arrangement. It also considers termination options and factors those into the determination of lease payments. Options to renew a lease are not included in the assessment unless there is reasonable certainty that the Company will renew. Operating lease liabilities and their corresponding ROU assets are recorded based on the present value of lease payments over the expected remaining lease term. The interest rate implicit in lease contracts is typically not readily determinable. As a result, the Company utilizes its incremental borrowing rate, which reflects the fixed rate at which it could borrow on a collateralized basis the amount of the lease payments in the same currency, for a similar term, in a similar economic environment. Lease expense for lease payments is recognized on a straight-line basis over the lease term. 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 consolidated balance sheet, and instead are reflected as expense in the period they are paid. The Company’s real estate operating leases provide for scheduled annual rent increases throughout the lease terms. The Company recognizes the effects of the scheduled rent increases on a straight-line basis over the full terms of such leases. In December 2019, the FASB issued ASU No. 2019-12 , Simplifying the Accounting for Income Taxes |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2021 | |
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 September 30, 2021 and December 31, 2020: September 30, 2021 (in thousands) Level 1 Level 2 Level 3 Total Cash equivalents (money market funds) $ 229,035 $ — $ — $ 229,035 Totals $ 229,035 $ — $ — $ 229,035 December 31, 2020 (in thousands) Level 1 Level 2 Level 3 Total Cash equivalents (money market funds) $ 314,636 $ — $ — $ 314,636 Totals $ 314,636 $ — $ — $ 314,636 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 fair value of the Series B Preferred Stock tranche rights liability was estimated using a probability-weighted present value of the benefit of investment with the following significant unobservable inputs (Level 3): Valuation Dates March 23, 2020 (Tranche 3 settlement) Implied equity value (in millions) $ 208.2 Probability of success of reaching necessary milestone: Tranche 2 milestone N/A Tranche 3 milestone (by March 31, 2020) 90 % Expected industry return over period during which milestones are expected to be achieved 13.0 % Risk-free interest rate 1.1 % During the periods presented, the Company has not changed the manner in which it values assets and liabilities that are measured at fair value. 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 nine month periods ended September 30, 2021 and 2020. The following table presents changes during the three and nine months ended September 30, 2020 in Level 3 liabilities measured at fair value on a recurring basis: (in thousands) Preferred Stock Tranche Rights Liability Balances at January 1, 2020 $ 5,400 Change in estimated fair value (1,265 ) Settlement of tranche right (4,135 ) Balances at March 31, 2020 $ — The preferred stock tranche rights liability was settled on March 24, 2020 and no liability exists thereafter. There were no Level 3 measurements used during the three and nine months ended September 30, 2021. The above fair value measurements are sensitive to changes in the underlying unobservable inputs. A change in those inputs could result in a significantly higher or lower fair value measurement. |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 9 Months Ended |
Sep. 30, 2021 | |
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) September 30, 2021 December 31, 2020 Scientific equipment $ 3,008 $ 2,617 Furniture & office equipment 1,015 542 Leasehold improvements 1,002 855 Total 5,025 4,014 Accumulated depreciation and amortization (2,904 ) (2,662 ) Property & equipment, net $ 2,121 $ 1,352 Depreciation and amortization expense was $0.2 and $0.1 million Accrued expenses and other current liabilities Accrued expenses and other current liabilities consisted of the following: (in thousands) September 30, 2021 December 31, 2020 Accrued clinical trial costs $ 9,038 $ 4,012 Accrued personnel costs 3,085 3,208 Accrued professional fees 25 37 Accrued other 41 229 Total accrued expenses and other current liabilities $ 12,189 $ 7,486 |
License and collaboration agree
License and collaboration agreements | 9 Months Ended |
Sep. 30, 2021 | |
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. Payment terms to Adimab include a one-time upfront technology access fee in the tens of thousands and payments for research support. Adimab is entitled to additional fees of up to a maximum of $0.4 million on a program-by-program basis for the achievement of certain technical milestones, one of which was met and the Company paid $0.2 million in April 2017. Upon the Company’s exercise of an option for an exclusive development and commercialization license, with respect to a target, the Company is required to make a low single digit million-dollar payment to Adimab for each exercised option. In August 2018, the Company paid a $1.0 million nonrefundable fee to exercise an option to acquire certain licenses from Adimab. One of the antibodies licensed under the Adimab Agreement is now what the Company refers to as EOS-448. 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. 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. 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. To date, the Company has paid a total of $3.4 million to Adimab under the Adimab Agreement. 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 and GSK executed 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 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 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. 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 Revenue from Contracts with Customers – Scope and Scope Exceptions 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. No development or commercial milestones were included in the transaction price at inception, as all milestone amounts were 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. As of September 30, 2021, the transaction price totaling $625.0 million was comprised of the up-front license payment. As of September 30, 2021, no development or regulatory milestones have been assessed as probable of being reached and thus have been fully constrained. During the three months ended September 30, 2021, the Company recognized revenue totaling approximately $104.3 million with respect to the GSK Collaboration Agreement. The revenue is classified as license revenue in the accompanying unaudited condensed consolidated statements of operations. As of September 30, 2021, there was approximately $520.7 million of deferred revenue related to the GSK Collaboration Agreement of which all was classified as current deferred revenue in the accompanying unaudited condensed consolidated balance sheet based on the performance period of the underlying obligations. During the three and nine months ended September 30, 2021, the Company expensed approximately $1.6 million of costs related to the cost-sharing provisions of the GSK Collaboration Agreement, of which approximately $0.3 million are reimbursable by GSK and recorded as a reduction to research and development expense during the three and nine months ended September 30, 2021. The Company incurred approximately $6.8 million of capitalizable costs to obtain the contact. The Company utilized the practical expedient in ASC 340 and recognize such costs immediately as the Company expected to complete its performance obligations under the GSK Collaboration Agreement in less than 12 months. The following table presents changes in the Company’s GSK contract assets and liabilities during the nine months ended September 30, 2021: Nine Months Ended September 30, 2021 (in thousands) Balance at Beginning of Period Additions Deductions Balance at End of Period Contract Assets: Account Receivable $ — $ 304 $ — $ 304 Contract Liabilities: Deferred Revenue $ — $ 625,000 $ (104,271 ) $ 520,729 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 will sponsor a clinical trial in which both the Company’s compound and MSD’s compound will be dosed in combination. The Company will conduct the research at its own cost and MSD will contribute its compound towards the study at no cost to the Company. The parties will 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 Nonmonetary Transactions |
Government Grant Funding and Po
Government Grant Funding and Potential Repayment Commitments Under Recoverable Cash Advance Grants (RCAs) | 9 Months Ended |
Sep. 30, 2021 | |
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 $1.2 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 $21.8 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 $4.1 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 ends in December 2021 per the current agreement. 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 2022 to 2041 (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 0.12% royalty on revenue resulting from RCA-2. 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 September 30, 2021 or December 31, 2020. For the RCA-2, the Company recorded a royalty accruals, equaling $0.7 million, as of September 30, 2021, due to the revenue recognized from the GSK Collaboration Agreement. No grant repayable related to royalties was recorded as of December 31, 2020 for the RCA-2. The Company recorded grant income in the condensed consolidated statements of operations and comprehensive income (loss) for the three and nine months ended September 30, 2021 and 2020 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 nine months ended September 30, 2021 and 2020 and end of period balances as of September 30, 2021 and December 31, 2020: RCA -1 RCA-2 Other Grants Total (In thousands) 2021 2020 2021 2020 2021 2020 2021 2020 Cash received during the three months ended September 30 $ — $ — $ — $ 511 $ — $ 148 $ — $ 659 Grant income recognized during the three months ended September 30 $ 1,115 $ 1,810 $ — $ 428 $ 205 $ 61 $ 1,320 $ 2,299 Cash received during the nine months ended September 30 $ — $ 7,693 $ — $ 2,479 $ — $ 316 $ — $ 10,488 Grant income recognized during the nine months ended September 30 $ 4,110 $ 3,667 $ 725 $ 936 $ 4,101 $ 366 $ 8,936 $ 4,969 Grants receivable at the end of the period $ 2,944 $ — $ 921 $ — $ 1,026 $ 133 $ 4,891 $ 133 Grants repayable at the end of the period $ 4,836 $ 5,102 $ 736 $ 781 N/A $ — $ 5,572 $ 5,883 As of September 30, 2021, $24,000 of the grants repayable was included as a current liability and the remaining balance was included in the grants repayable, net of current portion. |
Stockholders equity
Stockholders equity | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Stockholders equity | Note 7. Stockholders’ equity On July 20, 2020, the Company effected a 1-for-3.3115 reverse stock split of the Company’s common stock and adjusted the ratio at which the Company’s preferred stock was convertible into common stock, as well as the number of shares under the 2019 Stock Option and Grant Plan and the Amended and Restated Certificate of Incorporation of iTeos Therapeutics, Inc., as well as the share amounts of stock grants under the plan and the number of options and exercise prices of options under the plan. All shares of common stock, stock options exercisable for shares of common stock, and per share information presented in the accompanying consolidated financial statements and notes thereto have been adjusted, where applicable, to reflect the reverse stock split on a retroactive basis for all periods presented. There was no change in the par value of the Company’s common stock. On July 28, 2020, the Company completed an IPO of 10,586,316 shares of its common stock, for aggregate gross proceeds of $201.1 million and its shares started trading on The Nasdaq Global Select Market under the ticker symbol “ITOS.” The Company received approximately $184.0 million in net proceeds after deducting underwriting discounts and commissions and other estimated offering expenses payable by the Company. Upon closing of the IPO, all of the Company's outstanding shares of convertible preferred stock automatically converted into 22,460,076 shares of common stock. On August 5, 2020, the underwriters purchased an additional 1,505,359 shares of common stock pursuant to their option to purchase additional shares for net proceeds of $26.6 million after deducting underwriting discounts and commissions. On July 28, 2020, in connection with the 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 shall be a class designated as common stock, par value $0.001 per share, and (ii) 10,000,000 shares shall be 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. |
Stock-based compensation
Stock-based compensation | 9 Months Ended |
Sep. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based compensation | Note 8. Stock-based compensation 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 September 30, 2021 under the 2020 Plan was 5,562,055 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 September 30, 2021 under the 2020 ESPP was 667,931. 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 September 30, Nine Months Ended September 30, (in thousands) 2021 2020 2021 2020 Research and development $ 553 $ 81 $ 1,324 $ 198 General and administrative 3,389 1,633 8,429 2,052 Total stock-based compensation expense $ 3,942 $ 1,714 $ 9,753 $ 2,250 The following table summarizes stock option activity for the nine months ended September 30, 2021: Stock Options Shares Weighted average exercise price Weighted average remaining contractual life (in years) Aggregate intrinsic value (in thousands) Outstanding as of December 31, 2020 4,552,396 $ 9.13 8.2 Granted 1,077,150 33.37 Forfeited (28,031 ) 27.02 Exercised (212,706 ) 6.13 Outstanding as of September 30, 2021 5,388,809 $ 14.00 7.9 $ 78,236 Exercisable at September 30, 2021 1,854,930 $ 7.60 6.3 $ 35,949 The weighted-average grant-date fair value of options awarded during the nine month periods ended September 30, 2021 and 2020 was approximately $25.80 per share and $7.00 per share, respectively. As of September 30, 2021, there was a total of $41.3 million of unrecognized employee compensation costs related to non-vested stock option awards expected to be recognized over a weighted average period of 3.0 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. Stock-based compensation is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period, which is generally the vesting period of the respective award. The following table summarizes the range of key assumptions used to determine the fair value of stock options granted during: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Risk-free interest rate 0.66% - 0.89% 0.36% 0.42% - 0.90% 0.36% - 1.35% Expected term (in years) 6.0 5.5 - 6.0 6.0 5.5 - 6.0 Expected volatility 92% - 94% 92% 92% - 100% 90% - 92% Expected dividend yield — — — — Estimated fair value of common stock $20.54 - $25.65 $19.00 $20.54 - $41.58 $2.95 - $19.00 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
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 September 30, Nine Months Ended September 30, (in thousands) 2021 2020 2021 2020 Domestic (5,466 ) (12,001 ) (35,671 ) (15,258 ) Foreign 77,879 1,313 68,091 (7,929 ) Loss before income tax expense 72,413 (10,688 ) 32,420 (23,187 ) Income tax (expense) benefit (2,771 ) 8 (2,771 ) 58 Effective tax rate 3.8 % -0.1 % 8.5 % -0.3 % Our effective tax rates were 3.8% and (0.1%) for the three months ended September 30, 2021 and 2020, respectively. Our effective tax rates were 8.5% and (0.3%) for the nine months ended September 30, 2021 and 2020, respectively. The change in effective tax rates was primarily due to the generation of taxable income from the GSK Collaboration Agreement In the nine months ended September 30, 2020, we recorded a $0.1 million one-time tax benefit from the change in tax law resulting from the enactment of the CARES Act in the first half of 2020. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
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 September 30, 2021 and December 31, 2020, there were no amounts accrued related to termination charges. 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 December 2021 February 2021 January 2030 • A December 2018 lease for 2,479 square feet of office space in Cambridge, Massachusetts, which commenced in May 2019 May 2022 • Various car leases that the Company enters into from time to time. The average life of each car lease is 48 to 60 months. Rent expense was $0.2 million and $0.1 million for the three months ended September 30, 2021 and 2020, respectively, and $0.5 and $0.4 million for the nine months ended September 30, 2021 and 2020. The following table summarizes lease terms and discount rate: September 30, 2021 December 31, 2020 Weighted-average remaining lease term (years) 7.0 — Weighted-average discount rate 4.86 % — The following table summarizes the cash flow and other information: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2021 2020 2021 2020 Operating lease liabilities arising from obtaining right-of-use assets (non-cash) $ 6 $ — $ 3,322 $ — Operating cash flows used in operating leases $ 191 $ — $ 558 $ — As of September 30, 2021, the Company had the following future minimum lease payments under non-cancelable operating leases for the remainder of 2021 and the future years thereafter (in thousands): Year ending December 31: 2021 $ 226 2022 579 2023 468 2024 447 2025 402 Thereafter 1,292 Total Lease Payments 3,414 Less: Interest (545 ) Total Lease Liability $ 2,869 Lease liabilities $ 486 Lease liabilities, net of current portion $ 2,383 In March 2019, the Company provided a letter of credit for approximately $57,000 to secure its obligation under its lease in Cambridge. The Company maintains that amount of cash on hand to fund any necessary draws on the letter of credit. In addition, as of September 30, 2021 and December 31, 2020, the Company had approximately $80,000 and $71,000 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 September 30, 2021 and December 31, 2020. |
Related party transactions
Related party transactions | 9 Months Ended |
Sep. 30, 2021 | |
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% percent 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 September 30, 2021. |
Net Loss Per Share Attributable
Net Loss Per Share Attributable to Common Stock | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Net 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 2019 and 2020 Stock Option Plan and these are considered common stock equivalents. For the period ending September 30, 2020, 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 September 30, 2021, 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 September 30, Nine Months Ended September 30, (in thousands, except per share amounts) 2021 2020 2021 2020 Numerator Net income (loss) attributable to common stockholders $ 69,642 $ (11,647 ) $ 29,649 $ (28,498 ) Denominator Weighted-average shares used in compute net income (loss) per share, basic 35,196,995 24,349,222 35,134,692 8,376,860 Effect of dilutive securities (a) 2,285,093 — 2,404,492 — Weighted-average shares used to compute net income (loss) per share, diluted 37,482,089 24,349,222 37,539,184 8,376,860 Net income (loss) per share: Basic $ 1.98 $ (0.48 ) $ 0.84 $ (3.40 ) Diluted $ 1.86 $ (0.48 ) $ 0.79 $ (3.40 ) (a) The common stock equivalents were excluded for the period ending September 30, 2020, due to their anti-dilutive effect. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 13. Subsequent events In November 2021, the Company entered into a new lease for 9,068 square feet of office space in Watertown, Massachusetts, which terminates in February 2027 |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
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, 2020 and 2019, 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. |
Principles of consolidation | Principles of consolidation The accompanying condensed consolidated financial statements include the Company’s accounts and those of its wholly owned subsidiaries. All intercompany accounts, transactions and balances have been eliminated. |
Use of estimates | Use of estimates The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses, as well as the related disclosures of contingent assets and liabilities. The Company bases its estimates and assumptions on historical experiences, when available, and on various factors that it believes to be reasonable under the circumstances. The Company evaluates its estimates and assumptions on an ongoing basis. Actual results could differ materially from these estimates. The full extent to which the COVID-19 pandemic will directly or indirectly impact the Company’s business, results of operations and financial condition, including expenses, research and development costs and employee-related amounts, will depend on future developments that are highly uncertain, including as a result of new information that may emerge concerning COVID-19 and the actions taken to contain or treat COVID-19, as well as the economic impact on local, regional, national and international markets. The Company has considered the impact of COVID-19 on estimates within its financial statements and there may be changes to those estimates in future periods. As of the date of issuance of these unaudited condensed consolidated financial statements, the Company has not experienced material business disruptions or incurred impairment losses in the carrying value of its assets as a result of the pandemic and is not aware of any specific related event or circumstance that would require it to update its estimates. |
Cash, cash equivalents and restricted cash | Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents consist of standard checking accounts, money market accounts, and a sweep account that consists of money market funds with highly liquid investments with maturities of three months or less. Restricted cash represents collateral provided for letters of credit issued as security deposits in connection with the Company’s leases of its corporate facilities. |
Revenue Recognition | Revenue Recognition As of September 30, 2021, all of the Company’s revenue to date had been collaboration revenue generated from its Collaboration and License Agreement with GlaxoSmithKline The Company analyzes its collaboration arrangements to assess whether they are within the scope of Accounting Standards Codification ASC Topic 808, Collaborative Arrangements ( Research and Development Revenue from Contracts with Customers At inception, the Company determines whether contracts are within the scope of ASC 606 or other topics. For contracts that are determined to be within the scope of ASC 606, revenue is recognized when a customer obtains control of promised goods or services. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for these goods and services. To achieve this core principle, the Company applies the following five steps (i) identify the contract with the customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when performance obligation is satisfied. The Company only applies the five-step model to contracts when it determines that collection of substantially all consideration for goods and services that are transferred is probable based on the customer’s intent and ability to pay the promised consideration. Performance obligations promised in a contract are identified based on the goods and services that will be transferred to the customer that are both capable of being distinct and are distinct in the context of the contract. To the extent a contract includes multiple promised goods and services, the Company applies judgment to determine whether promised goods and services are both capable of being distinct and distinct in the context of the contract. If these criteria are not met, the promised goods and services are accounted for as a combined performance obligation. The transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring goods and services to the customer. To the extent the transaction price includes variable consideration, the Company estimates the amount of variable consideration that should be included in the transaction price utilizing either the expected value method or the most likely amount method, depending on the nature of the variable consideration. Variable consideration is included in the transaction price if, in management’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. Any estimates, including the effect of the constraint on variable consideration, are evaluated at each reporting period for any changes. Determining the transaction price requires significant judgment. If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation on a relative standalone selling price basis unless the transaction price is variable and meets the criteria to be allocated entirely to a performance obligation or to a distinct service that forms part of a single performance obligation. The consideration to be received is allocated among the separate performance obligations based on relative standalone selling prices. The Company typically determines standalone selling prices using an adjusted market assessment approach model. The Company satisfies performance obligations either over time or at a point in time. Revenue is recognized over time if either (i) the customer simultaneously receives and consumes the benefits provided by the entity’s performance, (ii) the entity’s performance creates or enhances an asset that the customer controls as the asset is created or enhanced, or (iii) the entity’s performance does not create an asset with an alternative use to the entity and the entity has an enforceable right to payment for performance completed to date. If the entity does not satisfy a performance obligation over time, the related performance obligation is satisfied at a point in time by transferring the control of a promised good or service to a customer For licenses of intellectual property (IP), if the license to the Company’s IP is determined to be distinct from the other performance obligations identified in the arrangement, the Company recognizes revenues from consideration allocated to the license when the license is transferred to the customer and the customer can use and benefit from the licenses. For licenses that are combined with other promises, the Company utilizes judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress for purposes of recognizing revenue. The Company evaluates the measure of progress each reporting period and, if necessary, adjusts the measure of performance and related revenue recognition. At the inception of each arrangement that includes development or regulatory milestone payments, the Company evaluates the probability of reaching the milestones and estimate the amount to be included in the transaction price using the most likely amount method. If it is probable that a significant revenue reversal would not occur in the future, the associated milestone value is included in the transaction price. Milestone payments that are not within the Company’s control or the licensee’s, such as regulatory approvals, are not considered probable of being achieved until those approvals are received and therefore revenue recognized is constrained as management is unable to assert that a reversal of revenue would not be possible. The transaction price is then allocated to each performance obligation on a relative standalone selling price basis, for which the Company recognizes revenue as or when the performance obligations under the contract are satisfied. At the end of each subsequent reporting period, the Company re-evaluates the probability of achievement of such development milestones and any related constraint, and if necessary, adjusts its estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect revenues and earnings in the period of adjustment. To date, the Company has not recognized any milestone revenue resulting from any of its agreements. For arrangements that include sales-based royalties, including milestone payments based on levels of sales, if the license is deemed to be the predominant item to which the royalties relate, the Company recognizes revenue at the later of (i) when the related sales occur, or (ii) when the performance obligation to which some or all of the royalty has been allocated has been satisfied (or partially satisfied). To date, the Company has not recognized any royalty revenue resulting from any of its agreements. Deferred revenue arises from amounts received in advance of the culmination of the earnings process and is recognized as revenue in future periods as performance obligations are satisfied. Deferred revenue expected to be recognized within the next twelve months is classified as a current liability. Upfront payment contract liabilities resulting from the Company’s license agreements do not represent a financing component as the payment is not financing the transfer of goods or services, and the technology underlying the licenses granted reflects research and development expenses already incurred by the Company. Contract costs The Company recognizes as an asset the incremental costs of obtaining a contract with a customer if the costs are expected to be recovered. The Company has elected the practical expedient in ASC 340, Other Assets and Deferred Costs |
Recently adopted accounting standards updates | Recently adopted accounting standards updates On January 1, 2021, the Company adopted Accounting Standard Update, or ASU No. 2016-02 (Topic 842), Leases At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the unique facts and circumstances present in the arrangement. Leases with a term greater than one year are recognized on the balance sheet as ROU assets and short-term and long-term lease liabilities, as applicable. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. The Company typically only includes an initial lease term in its assessment of a lease arrangement. It also considers termination options and factors those into the determination of lease payments. Options to renew a lease are not included in the assessment unless there is reasonable certainty that the Company will renew. Operating lease liabilities and their corresponding ROU assets are recorded based on the present value of lease payments over the expected remaining lease term. The interest rate implicit in lease contracts is typically not readily determinable. As a result, the Company utilizes its incremental borrowing rate, which reflects the fixed rate at which it could borrow on a collateralized basis the amount of the lease payments in the same currency, for a similar term, in a similar economic environment. Lease expense for lease payments is recognized on a straight-line basis over the lease term. 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 consolidated balance sheet, and instead are reflected as expense in the period they are paid. The Company’s real estate operating leases provide for scheduled annual rent increases throughout the lease terms. The Company recognizes the effects of the scheduled rent increases on a straight-line basis over the full terms of such leases. In December 2019, the FASB issued ASU No. 2019-12 , Simplifying the Accounting for Income Taxes |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 September 30, 2021 and December 31, 2020: September 30, 2021 (in thousands) Level 1 Level 2 Level 3 Total Cash equivalents (money market funds) $ 229,035 $ — $ — $ 229,035 Totals $ 229,035 $ — $ — $ 229,035 December 31, 2020 (in thousands) Level 1 Level 2 Level 3 Total Cash equivalents (money market funds) $ 314,636 $ — $ — $ 314,636 Totals $ 314,636 $ — $ — $ 314,636 |
Level 3 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Summary of Fair Value of Series B Preferred Stock Tranche Rights Liability | The fair value of the Series B Preferred Stock tranche rights liability was estimated using a probability-weighted present value of the benefit of investment with the following significant unobservable inputs (Level 3): Valuation Dates March 23, 2020 (Tranche 3 settlement) Implied equity value (in millions) $ 208.2 Probability of success of reaching necessary milestone: Tranche 2 milestone N/A Tranche 3 milestone (by March 31, 2020) 90 % Expected industry return over period during which milestones are expected to be achieved 13.0 % Risk-free interest rate 1.1 % |
Summary of Changes in Level 3 Liabilities Measures at Fair Value on a Recurring Basis | The following table presents changes during the three and nine months ended September 30, 2020 in Level 3 liabilities measured at fair value on a recurring basis: (in thousands) Preferred Stock Tranche Rights Liability Balances at January 1, 2020 $ 5,400 Change in estimated fair value (1,265 ) Settlement of tranche right (4,135 ) Balances at March 31, 2020 $ — |
Supplemental Balance Sheet In_2
Supplemental Balance Sheet Information (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Supplemental Balance Sheet Information [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net consisted of the following: (in thousands) September 30, 2021 December 31, 2020 Scientific equipment $ 3,008 $ 2,617 Furniture & office equipment 1,015 542 Leasehold improvements 1,002 855 Total 5,025 4,014 Accumulated depreciation and amortization (2,904 ) (2,662 ) Property & equipment, net $ 2,121 $ 1,352 |
Schedule of Accrued Expenses | Accrued expenses and other current liabilities consisted of the following: (in thousands) September 30, 2021 December 31, 2020 Accrued clinical trial costs $ 9,038 $ 4,012 Accrued personnel costs 3,085 3,208 Accrued professional fees 25 37 Accrued other 41 229 Total accrued expenses and other current liabilities $ 12,189 $ 7,486 |
License and collaboration agr_2
License and collaboration agreements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 nine months ended September 30, 2021: Nine Months Ended September 30, 2021 (in thousands) Balance at Beginning of Period Additions Deductions Balance at End of Period Contract Assets: Account Receivable $ — $ 304 $ — $ 304 Contract Liabilities: Deferred Revenue $ — $ 625,000 $ (104,271 ) $ 520,729 |
Government Grant Funding and _2
Government Grant Funding and Potential Repayment Commitments Under Recoverable Cash Advance Grants (RCAs) (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 nine months ended September 30, 2021 and 2020 and end of period balances as of September 30, 2021 and December 31, 2020: RCA -1 RCA-2 Other Grants Total (In thousands) 2021 2020 2021 2020 2021 2020 2021 2020 Cash received during the three months ended September 30 $ — $ — $ — $ 511 $ — $ 148 $ — $ 659 Grant income recognized during the three months ended September 30 $ 1,115 $ 1,810 $ — $ 428 $ 205 $ 61 $ 1,320 $ 2,299 Cash received during the nine months ended September 30 $ — $ 7,693 $ — $ 2,479 $ — $ 316 $ — $ 10,488 Grant income recognized during the nine months ended September 30 $ 4,110 $ 3,667 $ 725 $ 936 $ 4,101 $ 366 $ 8,936 $ 4,969 Grants receivable at the end of the period $ 2,944 $ — $ 921 $ — $ 1,026 $ 133 $ 4,891 $ 133 Grants repayable at the end of the period $ 4,836 $ 5,102 $ 736 $ 781 N/A $ — $ 5,572 $ 5,883 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock-Based Compensation Expense | 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 September 30, Nine Months Ended September 30, (in thousands) 2021 2020 2021 2020 Research and development $ 553 $ 81 $ 1,324 $ 198 General and administrative 3,389 1,633 8,429 2,052 Total stock-based compensation expense $ 3,942 $ 1,714 $ 9,753 $ 2,250 |
Summary of Stock Options Activity | The following table summarizes stock option activity for the nine months ended September 30, 2021: Stock Options Shares Weighted average exercise price Weighted average remaining contractual life (in years) Aggregate intrinsic value (in thousands) Outstanding as of December 31, 2020 4,552,396 $ 9.13 8.2 Granted 1,077,150 33.37 Forfeited (28,031 ) 27.02 Exercised (212,706 ) 6.13 Outstanding as of September 30, 2021 5,388,809 $ 14.00 7.9 $ 78,236 Exercisable at September 30, 2021 1,854,930 $ 7.60 6.3 $ 35,949 |
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 September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Risk-free interest rate 0.66% - 0.89% 0.36% 0.42% - 0.90% 0.36% - 1.35% Expected term (in years) 6.0 5.5 - 6.0 6.0 5.5 - 6.0 Expected volatility 92% - 94% 92% 92% - 100% 90% - 92% Expected dividend yield — — — — Estimated fair value of common stock $20.54 - $25.65 $19.00 $20.54 - $41.58 $2.95 - $19.00 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 September 30, Nine Months Ended September 30, (in thousands) 2021 2020 2021 2020 Domestic (5,466 ) (12,001 ) (35,671 ) (15,258 ) Foreign 77,879 1,313 68,091 (7,929 ) Loss before income tax expense 72,413 (10,688 ) 32,420 (23,187 ) Income tax (expense) benefit (2,771 ) 8 (2,771 ) 58 Effective tax rate 3.8 % -0.1 % 8.5 % -0.3 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule Of Lease Terms And Discount Rate | The following table summarizes lease terms and discount rate: September 30, 2021 December 31, 2020 Weighted-average remaining lease term (years) 7.0 — Weighted-average discount rate 4.86 % — |
Schedule Of Cash Flow And Other Information | The following table summarizes the cash flow and other information: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2021 2020 2021 2020 Operating lease liabilities arising from obtaining right-of-use assets (non-cash) $ 6 $ — $ 3,322 $ — Operating cash flows used in operating leases $ 191 $ — $ 558 $ — |
Schedule of Future Minimum Lease Payments Under Non-cancelable Operating Leases | As of September 30, 2021, the Company had the following future minimum lease payments under non-cancelable operating leases for the remainder of 2021 and the future years thereafter (in thousands): Year ending December 31: 2021 $ 226 2022 579 2023 468 2024 447 2025 402 Thereafter 1,292 Total Lease Payments 3,414 Less: Interest (545 ) Total Lease Liability $ 2,869 Lease liabilities $ 486 Lease liabilities, net of current portion $ 2,383 |
Net income (loss) per share att
Net income (loss) per share attributable to common stock (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 September 30, Nine Months Ended September 30, (in thousands, except per share amounts) 2021 2020 2021 2020 Numerator Net income (loss) attributable to common stockholders $ 69,642 $ (11,647 ) $ 29,649 $ (28,498 ) Denominator Weighted-average shares used in compute net income (loss) per share, basic 35,196,995 24,349,222 35,134,692 8,376,860 Effect of dilutive securities (a) 2,285,093 — 2,404,492 — Weighted-average shares used to compute net income (loss) per share, diluted 37,482,089 24,349,222 37,539,184 8,376,860 Net income (loss) per share: Basic $ 1.98 $ (0.48 ) $ 0.84 $ (3.40 ) Diluted $ 1.86 $ (0.48 ) $ 0.79 $ (3.40 ) (a) The common stock equivalents were excluded for the period ending September 30, 2020, due to their anti-dilutive effect. |
Nature of Business and Basis _2
Nature of Business and Basis of Presentation - Additional Information (Details) $ in Thousands | Aug. 05, 2020USD ($)shares | Jul. 28, 2020USD ($)shares | Jul. 20, 2020 | Sep. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Mar. 31, 2021USD ($) | Sep. 30, 2020USD ($)shares | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) |
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||||||||
Issuance of common stock from initial public offering | $ 210,699 | |||||||||||
Proceeds from initial public offering, net of underwriting discount | $ 213,660 | |||||||||||
Net income (loss) | $ 69,642 | $ (26,459) | $ (13,534) | $ (10,680) | $ (7,202) | $ (5,247) | $ 29,649 | $ (23,129) | ||||
Accumulated deficit | $ (44,249) | $ (44,249) | $ (73,898) | |||||||||
Common stock | ||||||||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||||||||
Reverse stock split | On July 20, 2020, the Company effected a 1-for-3.3115 reverse stock split of the Company’s common stock | |||||||||||
Reverse stock split, conversion ratio | 0.30 | |||||||||||
Issuance of common stock from initial public offering, shares | shares | 12,091,675 | |||||||||||
Issuance of common stock from initial public offering | $ 12 | |||||||||||
Convertible Preferred Stock, Shares Issued upon Conversion | shares | 22,460,076 | |||||||||||
Common stock | IPO | ||||||||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||||||||
Issuance of common stock from initial public offering, shares | shares | 10,586,316 | |||||||||||
Issuance of common stock from initial public offering | $ 201,100 | |||||||||||
Proceeds from initial public offering, net of underwriting discount | $ 184,000 | |||||||||||
Underwriters exercise option to purchase additional shares of common stock | shares | 1,505,359 | |||||||||||
Net proceeds after deducting commissions from underwriter purchase of additional share of common stock | $ 26,600 |
Summary of significant accoun_3
Summary of significant accounting policies - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
General and administrative expenses | $ 8,761 | $ 4,799 | $ 30,907 | $ 9,611 |
General and Administrative Expense | ||||
General and administrative expenses | $ 6,800 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Financial Instruments Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents (money market funds) | $ 229,035 | $ 314,636 |
Totals | 229,035 | 314,636 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents (money market funds) | 229,035 | 314,636 |
Totals | $ 229,035 | $ 314,636 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Fair Value of Series B Preferred Stock Tranche Rights Liability (Details) - Series B Preferred Stock - Fair Value, Inputs, Level 3 - Tranche Three Settlement $ in Millions | Mar. 23, 2020USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Implied equity value | $ 208.2 |
Tranche 3 milestone (by March 31, 2020) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Probability of success of reaching necessary milestone | 90.00% |
Expected industry return over period during which milestones are expected to be achieved | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Measurement input | 13 |
Risk-free interest rate | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Measurement input | 1.1 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Mar. 24, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Transfers within hierarchy | $ 0 | $ 0 | $ 0 | $ 0 | |
Preferred stock tranche rights liability | $ 0 | ||||
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 |
Fair Value Measurements - Sum_3
Fair Value Measurements - Summary of Changes in Level 3 Liabilities Measures at Fair Value on a Recurring Basis (Details) - Fair Value, Inputs, Level 3 - Preferred Stock Tranche Rights Liability $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Balances | $ 5,400 |
Change in estimated fair value | (1,265) |
Settlement of tranche right | (4,135) |
Balances | $ 0 |
Supplemental Balance Sheet In_3
Supplemental Balance Sheet Information - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 5,025 | $ 4,014 |
Accumulated depreciation and amortization | (2,904) | (2,662) |
Property & equipment, net | 2,121 | 1,352 |
Scientific Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 3,008 | 2,617 |
Furniture and Office Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 1,015 | 542 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 1,002 | $ 855 |
Supplemental Balance Sheet In_4
Supplemental Balance Sheet Information - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Supplemental Balance Sheet Information [Abstract] | ||||
Depreciation and amortization | $ 200 | $ 100 | $ 452 | $ 392 |
Supplemental Balance Sheet In_5
Supplemental Balance Sheet Information - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Payables And Accruals [Abstract] | ||
Accrued clinical trial costs | $ 9,038 | $ 4,012 |
Accrued personnel costs | 3,085 | 3,208 |
Accrued professional fees | 25 | 37 |
Accrued other | 41 | 229 |
Total accrued expenses and other current liabilities | $ 12,189 | $ 7,486 |
License and collaboration agr_3
License and collaboration agreements - Additional Information (Details) - USD ($) | Jun. 11, 2021 | Aug. 31, 2018 | Apr. 30, 2017 | Sep. 30, 2021 | Sep. 30, 2021 |
Research And Development Arrangement Contract To Perform For Others [Line Items] | |||||
License Revenue | $ 104,271,000 | $ 104,271,000 | |||
Deferred Revenue | 520,729,000 | 520,729,000 | |||
Adimab L L C | |||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | |||||
Upfront payment received | $ 200,000 | ||||
Maximum additional receivable based on achievement of research milestones | 14,500,000 | ||||
Nonrefundable fee to exercise an option | $ 1,000,000 | ||||
Adimab L L C | License revenue | |||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | |||||
License Revenue | 3,400,000 | ||||
Adimab L L C | Research Collaboration and Option Agreement | |||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | |||||
Maximum option fees receivable based on achievement of research milestones per program | 400,000 | 400,000 | |||
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 | 45,800,000 | 45,800,000 | |||
GSK | |||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | |||||
Upfront payment received | $ 625,000,000 | 625,000,000 | |||
Milestone payments | $ 1,450,000 | ||||
Eligible royalty payments percentage | 20.00% | ||||
Development Milestone | 0 | ||||
GSK Collaboration Agreement | |||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | |||||
Deferred Revenue | 520,700,000 | 520,700,000 | |||
Costs related to the cost-sharing provisions | 1,600,000 | 1,600,000 | |||
Reimbursable by GSK | 300,000 | 300,000 | |||
Capitalized contract cost | 6,800,000 | $ 6,800,000 | |||
GSK Collaboration Agreement | License revenue | |||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | |||||
License Revenue | $ 104,300,000 |
License and collaboration agr_4
License and collaboration agreements - Schedule Of Contract Assets And Liabilities (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
License Agreements [Abstract] | |
Account receivable, Additions | $ 304 |
Account receivable, Ending balance | 304 |
Deferred revenue, Additions | 625,000 |
Deferred revenue, Deductions | (104,271) |
Deferred revenue, Ending balance | $ 520,729 |
Government Grant Funding and _3
Government Grant Funding and Potential Repayment Commitments Under Recoverable Cash Advance Grants (RCAs) - Additional Information (Details) - USD ($) | Dec. 03, 2019 | Jul. 20, 2017 | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Research And Development Arrangement Contract To Perform For Others [Line Items] | |||||
Research and development expenses | $ 1,200,000 | ||||
Grant repayable | 5,572,000 | $ 5,883,000 | |||
Current Liability | |||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | |||||
Grant repayable | $ 24,000 | ||||
RCA-1 | |||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | |||||
Recoverable cash advance | $ 21,800,000 | ||||
Percentage of royalty on revenue | 0.33% | ||||
Grant repayable | $ 4,836,000 | 5,102,000 | |||
RCA-2 | |||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | |||||
Recoverable cash advance | $ 4,100,000 | ||||
Percentage of royalty on revenue | 0.12% | ||||
Grant repayable | $ 736,000 | $ 0 | $ 781,000 | ||
Royalty accruals | $ 700,000 | ||||
RCA-1 and RCA-2 | |||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | |||||
Percentage of repayment amount received under grant | 30.00% | ||||
Research And Development And Future Sales | |||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | |||||
Grant repayable | $ 0 | $ 0 | |||
Minimum | |||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | |||||
Percentage of grant reimburse of actual qualifying expenditures | 55.00% | ||||
Minimum | RCA-1 and RCA-2 | |||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | |||||
Term of repayment amount received under grant | 2022 | ||||
Maximum | |||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | |||||
Percentage of grant reimburse of actual qualifying expenditures | 100.00% | ||||
Maximum | RCA-1 and RCA-2 | |||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | |||||
Term of repayment amount received under grant | 2041 |
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 ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Research And Development Arrangement Contract To Perform For Others [Line Items] | |||||
Cash received | $ 659,000 | $ 10,488,000 | |||
Grant income | $ 1,320,000 | 2,299,000 | $ 8,936,000 | 4,969,000 | |
Grants receivable | 4,891,000 | 133,000 | 4,891,000 | 133,000 | $ 133,000 |
Grant repayable | 5,572,000 | 5,883,000 | 5,572,000 | 5,883,000 | |
RCA-1 | |||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | |||||
Cash received | 7,693,000 | ||||
Grant income | 1,115,000 | 1,810,000 | 4,110,000 | 3,667,000 | |
Grants receivable | 2,944,000 | 2,944,000 | |||
Grant repayable | 4,836,000 | 5,102,000 | 4,836,000 | 5,102,000 | |
RCA-2 | |||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | |||||
Cash received | 511,000 | 2,479,000 | |||
Grant income | 428,000 | 725,000 | 936,000 | ||
Grants receivable | 921,000 | 921,000 | |||
Grant repayable | 736,000 | 781,000 | 736,000 | 781,000 | $ 0 |
Other Grants | |||||
Research And Development Arrangement Contract To Perform For Others [Line Items] | |||||
Cash received | 148,000 | 316,000 | |||
Grant income | 205,000 | 61,000 | 4,101,000 | 366,000 | |
Grants receivable | $ 1,026,000 | $ 133,000 | $ 1,026,000 | $ 133,000 |
Stockholders' equity - Addition
Stockholders' equity - Additional Information (Details) $ / shares in Units, $ in Thousands | Aug. 05, 2020USD ($)shares | Jul. 28, 2020USD ($)$ / sharesshares | Jul. 20, 2020 | Sep. 30, 2020USD ($)shares | Sep. 30, 2020USD ($) | Sep. 30, 2021$ / sharesshares | Dec. 31, 2020$ / sharesshares |
Class Of Stock [Line Items] | |||||||
Issuance of common stock from initial public offering | $ | $ 210,699 | ||||||
Proceeds from initial public offering, net of underwriting discount | $ | $ 213,660 | ||||||
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 | 10,000,000 | |||||
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. | ||||||
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 | On July 20, 2020, the Company effected a 1-for-3.3115 reverse stock split of the Company’s common stock | ||||||
Reverse stock split, conversion ratio | 0.30 | ||||||
Issuance of common stock from initial public offering, shares | 12,091,675 | ||||||
Issuance of common stock from initial public offering | $ | $ 12 | ||||||
Convertible Preferred Stock, Shares Issued upon Conversion | 22,460,076 | ||||||
Common stock | IPO | |||||||
Class Of Stock [Line Items] | |||||||
Issuance of common stock from initial public offering, shares | 10,586,316 | ||||||
Issuance of common stock from initial public offering | $ | $ 201,100 | ||||||
Proceeds from initial public offering, net of underwriting discount | $ | $ 184,000 | ||||||
Underwriters exercise option to purchase additional shares of common stock | 1,505,359 | ||||||
Net proceeds after deducting commissions from underwriter purchase of additional share of common stock | $ | $ 26,600 |
Stock-based compensation - Addi
Stock-based compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | Jul. 15, 2020 | Sep. 30, 2021 | Sep. 30, 2020 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Weighted-average estimated fair value of options awarded (in dollars per share) | $ 25.80 | $ 7 | |
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 | 1.00% | ||
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 | $ 41.3 | ||
Recognition period for compensation cost not yet recognized (in years, months, and days) | 3 years | ||
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 | 100.00% | ||
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 | 5.00% | ||
Common stock reserved for future issuance | 5,562,055 |
Stock-based compensation - Summ
Stock-based compensation - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 3,942 | $ 1,714 | $ 9,753 | $ 2,250 |
Research and Development | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense | 553 | 81 | 1,324 | 198 |
General and Administrative Expense | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 3,389 | $ 1,633 | $ 8,429 | $ 2,052 |
Stock-based compensation - Su_2
Stock-based compensation - Summary of Stock Options Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Shares | ||
Outstanding as of December 31, 2020 | 4,552,396 | |
Granted | 1,077,150 | |
Forfeited | (28,031) | |
Exercised | (212,706) | |
Outstanding as of September 30, 2021 | 5,388,809 | 4,552,396 |
Exercisable at September 30, 2021 | 1,854,930 | |
Weighted-Average Exercise Price Per Share | ||
Outstanding as of December 31, 2020 | $ 9.13 | |
Granted | 33.37 | |
Forfeited | 27.02 | |
Exercised | 6.13 | |
Outstanding as of September 30, 2021 | 14 | $ 9.13 |
Exercisable at September 30, 2021 | $ 7.60 | |
Weighted-Average Remaining Contractual Term | ||
Options outstanding | 7 years 10 months 24 days | 8 years 2 months 12 days |
Exercisable at September 30, 2021 | 6 years 3 months 18 days | |
Aggregate Intrinsic Value | ||
Outstanding as of December 31, 2020 | $ 78,236 | |
Exercisable at September 30, 2021 | $ 35,949 |
Stock-based compensation - Sche
Stock-based compensation - Schedule of Fair Value Assumptions for Stock Options Granted (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Risk-free interest rate | 0.36% | |||
Risk-free interest rate, Minimum | 0.66% | 0.42% | 0.36% | |
Risk-free interest rate, maximum | 0.89% | 0.90% | 1.35% | |
Expected term (in years) | 6 years | 6 years | ||
Expected volatility | 92.00% | |||
Expected Volatility, minimum | 92.00% | 92.00% | 90.00% | |
Expected Volatility, maximum | 94.00% | 100.00% | 92.00% | |
Estimated fair value of common stock | $ 19 | |||
Minimum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected term (in years) | 5 years 6 months | 5 years 6 months | ||
Estimated fair value of common stock | $ 23.19 | $ 20.54 | $ 2.95 | |
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 | $ 34.18 | $ 41.58 | $ 19 |
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 | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Domestic | $ (5,466) | $ (12,001) | $ (35,671) | $ (15,258) |
Foreign | 77,879 | 1,313 | 68,091 | (7,929) |
Income (loss) before income taxes | 72,413 | (10,688) | 32,420 | (23,187) |
Income tax (expense) benefit | $ (2,771) | $ 8 | $ (2,771) | $ 58 |
Effective tax rate | 3.80% | (0.10%) | 8.50% | (0.30%) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Contingency [Line Items] | ||||
Effective tax rate | 3.80% | (0.10%) | 8.50% | (0.30%) |
Income Tax Expense Benefit | $ 2,771 | $ (8) | $ 2,771 | $ (58) |
One-time Tax Benefit From change in Tax Law [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Income Tax Expense Benefit | $ 100 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021USD ($)m²ft² | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)m²ft² | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Mar. 31, 2019USD ($) | |
Other Commitments [Line Items] | ||||||
Land subject to leases | m² | 1,577 | 1,577 | ||||
Operating leases, rent expense | $ 200,000 | $ 100,000 | $ 500,000 | $ 500,000 | ||
Gosselies, Belgium | ||||||
Other Commitments [Line Items] | ||||||
Operating lease, Hand serving to secure lease obligation | $ 80,000,000 | $ 80,000,000 | $ 71,000,000 | |||
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 | $ 57,000,000 | |||||
Office and Laboratory Space | Gosselies, Belgium | ||||||
Other Commitments [Line Items] | ||||||
Lease commencement date | May 31, 2016 | |||||
Lease expiration date | Dec. 31, 2021 | |||||
Office and Laboratory Space | Gosselies, Belgium | Agreement to Extend Lease | ||||||
Other Commitments [Line Items] | ||||||
Lease commencement date | Feb. 28, 2021 | |||||
Lease expiration date | Jan. 31, 2030 | |||||
Lessee, operating lease, existence of option to extend [true false] | true | |||||
Increase land subject to leases | m² | 201 | 201 | ||||
Office | Cambridge, Massachusetts | ||||||
Other Commitments [Line Items] | ||||||
Lease commencement date | May 31, 2019 | |||||
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) | Sep. 30, 2021 |
Commitments And Contingencies Disclosure [Abstract] | |
Weighted-average remaining lease term (years) | 7 years |
Weighted-average discount rate | 4.86% |
Commitments and Contingencies_3
Commitments and Contingencies -Schedule Of Cash Flow And Other Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021 | Sep. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | ||
Operating lease liabilities arising from obtaining right-of-use assets | $ 6 | $ 3,322 |
Operating cash flows used in operating leases | $ 191 | $ 558 |
Commitments and Contingencies_4
Commitments and Contingencies - Schedule of Future Minimum Lease Payments Under Non-cancelable Operating Leases (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Leases [Abstract] | |
2021 | $ 226 |
2022 | 579 |
2023 | 468 |
2024 | 447 |
2025 | 402 |
Thereafter | 1,292 |
Total Lease Payments | 3,414 |
Less: Interest | (545) |
Total Lease Liability | 2,869 |
Lease liabilities | 486 |
Lease liabilities, net of current portion | $ 2,383 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) $ in Thousands | Jun. 11, 2018USD ($)Investor | Sep. 30, 2021USD ($) | Sep. 30, 2021USD ($) |
Related Party Transaction [Line Items] | |||
Net product sales | $ 104,271 | $ 104,271 | |
Royalty Transfer Agreement | |||
Related Party Transaction [Line Items] | |||
Royalty owed to charitable foundation | $ 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% percent of its net product sales each year within 120 days following each year end. | ||
Percentage of royalty required to pay | 1.00% |
Schedule of Net Income (loss) P
Schedule of Net Income (loss) Per Shares By Treasury Stock Method (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Numerator | |||||
Net income (loss) attributable to common stockholders | $ 69,642 | $ (11,647) | $ 29,649 | $ (28,498) | |
Denominator | |||||
Weighted-average common shares outstanding - basic | 35,196,995 | 24,349,222 | 35,134,692 | 8,376,860 | |
Effect of dilutive securities (a) | [1] | 2,285,093 | 2,404,492 | ||
Weighted-average common shares outstanding - diluted | 37,482,089 | 24,349,222 | 37,539,184 | 8,376,860 | |
Net income (loss) per share: | |||||
Basic net income (loss) per common share | $ 1.98 | $ (0.48) | $ 0.84 | $ (3.40) | |
Diluted net income (loss) per common share | $ 1.86 | $ (0.48) | $ 0.79 | $ (3.40) | |
[1] | The common stock equivalents were excluded for the period ending September 30, 2020, due to their anti-dilutive effect. |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - Subsequent Event [Member] | 1 Months Ended |
Nov. 30, 2021m²ft² | |
Watertown, Massachusetts | |
Subsequent Event [Line Items] | |
Area of office | ft² | 9,068 |
Lease expiration date | Feb. 28, 2027 |
Gosselies, Belgium | |
Subsequent Event [Line Items] | |
Agreement to increase office space | m² | 453 |