Discontinued operations (Tables)

12 Months Ended

Dec. 31, 2021

Discontinued Operations and Disposal Groups [Abstract]

Distribution of Assets, Liabilities and Stockholders' Equity

The transfer of assets and liabilities to 2seventy bio was effected through a contribution in accordance with the Separation Agreement, as summarized below (in thousands):

	As of November 4, 2021
Assets
Current assets:
Cash and cash equivalents	$	174,284
Marketable securities	160,447
Prepaid expenses	8,732
Receivables and other current assets	21,637
Total current assets	365,100
Marketable securities	106,826
Property, plant and equipment, net	33,972
Intangible assets, net	10,664
Goodwill	6,410
Operating lease right-of-use assets	255,556
Restricted cash and other non-current assets	5,650
Total assets	$	784,178
Liabilities
Current liabilities:
Accounts payable	$	2,982
Accrued expenses and other current liabilities	85,659
Operating lease liability, current portion	6,938
Collaboration research advancement, current portion	8,957
Total current liabilities	104,536
Deferred revenue, net of current portion	25,762
Collaboration research advancement, net of current portion	16,264
Operating lease liability, net of current portion	257,575
Other non-current liabilities	1,896
Total liabilities	$	406,033
Net assets transferred to 2seventy bio	$	378,145

The following table summarizes the assets and liabilities of the discontinued operations as of December 31, 2020 (in thousands):

	As of December 31, 2020
Assets
Current assets:
Cash and cash equivalents	$	57,076
Marketable securities	413,947
Prepaid expenses	11,754
Receivables and other current assets	12,244
Total current assets of discontinued operations	495,021
Marketable securities	61,446
Property, plant and equipment, net	145,458
Intangible assets, net	5,644
Goodwill	7,482
Operating lease right-of-use assets	116,456
Restricted cash and other non-current assets	7,078
Total non-current assets of discontinued operations	343,564
Total assets of discontinued operations	$	838,585
Liabilities
Current liabilities:
Accounts payable	$	7,791
Accrued expenses and other current liabilities	48,716
Operating lease liability, current portion	15,313
Collaboration research advancement, current portion	9,236
Deferred revenue, current portion	820
Total current liabilities of discontinued operations	81,876
Deferred revenue, net of current portion	25,762
Collaboration research advancement, net of current portion	21,581
Operating lease liability, net of current portion	112,290
Other non-current liabilities	1,509
Total non-current liabilities of discontinued operations	161,142
Total liabilities of discontinued operations	$	243,018

Summary of Revenue and Expenses for Discontinued Operations

The following table summarizes revenue and expenses of the discontinued operations for the years ended December 31, 2021, 2020 and 2019 (in thousands):

	Year ended December 31,
	2021		2020		2019
Revenue:
Service revenue	$	18,130	$	114,064	$	30,729
Collaborative arrangement revenue	18,602		115,594		5,740
Royalty and other revenue	5,762		21,076		8,205
Total revenues	42,494		250,734		44,674
Operating expenses:
Research and development	204,287		268,647		255,294
Selling, general and administrative	82,078		46,945		35,518
Share of collaboration loss	10,071		—		—
Cost of royalty and other revenue	2,292		5,396		2,978
Change in fair value of contingent consideration	387		(6,468)		2,747
Total operating expenses	299,115		314,520		296,537
Loss from operations	(256,621)		(63,786)		(251,863)
Interest income, net	791		5,770		17,380
Other income (expense), net	(910)		377		(103)
Loss before income taxes	(256,740)		(57,639)		(234,586)
Net loss	$	(256,740)	$	(57,639)	$	(234,586)

The following table summarizes the significant non-cash items and capital expenditures of the discontinued operations that are included in the consolidated statements of cash flows for the years ended December 31, 2021, 2020 and 2019 (in thousands):

	Year ended December 31,
	2021		2020		2019
Operating activities:
Change in fair value of contingent consideration	$	387	$	(6,468)	$	2,747
Depreciation and amortization	14,195		13,730		12,995
Stock-based compensation expense	29,175		34,036		29,545
Loss on fixed assets disposal	569		146		108
Loss on sale of Durham, North Carolina manufacturing facility	1,986		—		—
Investing activities:
Purchase of property, plant and equipment	$	(11,256)	$	(23,159)	$	(57,196)
Proceeds from sale of Durham, North Carolina manufacturing facility	110,300		—		—
Purchase of intangible assets	(8,500)		—		—
Supplemental cash flow disclosures:
Purchases of property, plant and equipment included in accounts payable and accrued expenses	$	778	$	2,039	$	3,064
Right-of-use assets obtained in exchange for operating lease liabilities	151,520		4,989		9,745

Summary of Significant Non-Cash Items and Capital Expenditures for Discontinued Operations

The following table summarizes revenue and expenses of the discontinued operations for the years ended December 31, 2021, 2020 and 2019 (in thousands):

	Year ended December 31,
	2021		2020		2019
Revenue:
Service revenue	$	18,130	$	114,064	$	30,729
Collaborative arrangement revenue	18,602		115,594		5,740
Royalty and other revenue	5,762		21,076		8,205
Total revenues	42,494		250,734		44,674
Operating expenses:
Research and development	204,287		268,647		255,294
Selling, general and administrative	82,078		46,945		35,518
Share of collaboration loss	10,071		—		—
Cost of royalty and other revenue	2,292		5,396		2,978
Change in fair value of contingent consideration	387		(6,468)		2,747
Total operating expenses	299,115		314,520		296,537
Loss from operations	(256,621)		(63,786)		(251,863)
Interest income, net	791		5,770		17,380
Other income (expense), net	(910)		377		(103)
Loss before income taxes	(256,740)		(57,639)		(234,586)
Net loss	$	(256,740)	$	(57,639)	$	(234,586)

The following table summarizes the significant non-cash items and capital expenditures of the discontinued operations that are included in the consolidated statements of cash flows for the years ended December 31, 2021, 2020 and 2019 (in thousands):

	Year ended December 31,
	2021		2020		2019
Operating activities:
Change in fair value of contingent consideration	$	387	$	(6,468)	$	2,747
Depreciation and amortization	14,195		13,730		12,995
Stock-based compensation expense	29,175		34,036		29,545
Loss on fixed assets disposal	569		146		108
Loss on sale of Durham, North Carolina manufacturing facility	1,986		—		—
Investing activities:
Purchase of property, plant and equipment	$	(11,256)	$	(23,159)	$	(57,196)
Proceeds from sale of Durham, North Carolina manufacturing facility	110,300		—		—
Purchase of intangible assets	(8,500)		—		—
Supplemental cash flow disclosures:
Purchases of property, plant and equipment included in accounts payable and accrued expenses	$	778	$	2,039	$	3,064
Right-of-use assets obtained in exchange for operating lease liabilities	151,520		4,989		9,745