QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) | |||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
x | Accelerated filer | o | |||||||||
Non-accelerated filer | o | Smaller reporting company | |||||||||
Emerging growth company |
March 31, 2024 | December 31, 2023 | ||||||||||
(unaudited) | |||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Marketable securities | |||||||||||
Prepaid and other assets | |||||||||||
Total current assets | |||||||||||
Property and equipment, net | |||||||||||
Restricted cash | |||||||||||
Right-of-use assets | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities and Stockholders’ Equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable and accrued liabilities | $ | $ | |||||||||
Accrued compensation | |||||||||||
Lease liabilities, current portion | |||||||||||
Deferred revenue, current portion | |||||||||||
Total current liabilities | |||||||||||
Lease liabilities, net of current portion | |||||||||||
Deferred revenue, net of current portion | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (Note 7) | |||||||||||
Stockholders’ equity: | |||||||||||
Common stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated other comprehensive income (loss) | ( | ||||||||||
Accumulated deficit | ( | ( | |||||||||
Total stockholders’ equity | |||||||||||
Total liabilities and stockholders’ equity | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Collaboration revenue | $ | $ | |||||||||
Operating expenses: | |||||||||||
Research and development | |||||||||||
General and administrative | |||||||||||
Total operating expenses | |||||||||||
Loss from operations | ( | ( | |||||||||
Other income (expense): | |||||||||||
Interest income | |||||||||||
Other expense | ( | ( | |||||||||
Total other income | |||||||||||
Net loss | $ | ( | $ | ( | |||||||
Net loss per share, basic and diluted | $ | ( | $ | ( | |||||||
Weighted-average shares outstanding, basic and diluted | |||||||||||
Other comprehensive income (loss): | |||||||||||
Net unrealized gains (losses) on marketable securities | ( | ||||||||||
Comprehensive loss | $ | ( | $ | ( |
Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||
Balance at December 31, 2023 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
Issuance of common stock upon exercise of stock options | — | — | — | ||||||||||||||||||||||||||||||||
Issuance of common stock in public offering, net of issuance costs of $ | — | — | — | ||||||||||||||||||||||||||||||||
Issuance of common stock in a private placement, net of issuance costs of $ | — | — | |||||||||||||||||||||||||||||||||
Issuance of pre-funded warrants in a private placement, net of issuance costs of $ | — | — | — | — | |||||||||||||||||||||||||||||||
Issuance of common stock in connection with vesting of restricted stock units | — | — | — | — | — | ||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Net loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Balance at March 31, 2024 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
Balance at December 31, 2022 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
Issuance of common stock upon exercise of stock options | — | — | — | ||||||||||||||||||||||||||||||||
Issuance of common stock in public offerings, net of issuance costs of $ | — | — | — | ||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Net loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | |||||||||||||||||||||||||||||||
Balance at March 31, 2023 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Cash flows from operating activities | |||||||||||
Net loss | $ | ( | $ | ( | |||||||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||
Depreciation | |||||||||||
Stock-based compensation expense | |||||||||||
Amortization of premiums and discounts on marketable securities, net | ( | ( | |||||||||
Non-cash operating lease costs | |||||||||||
Changes in operating assets and liabilities: | |||||||||||
Prepaid and other assets | ( | ||||||||||
Accounts payable and accrued liabilities | |||||||||||
Accrued compensation | ( | ( | |||||||||
Operating lease liabilities | ( | ( | |||||||||
Deferred revenue | ( | ( | |||||||||
Net cash used in operating activities | ( | ( | |||||||||
Cash flows from investing activities | |||||||||||
Maturities of marketable securities | |||||||||||
Purchases of marketable securities | ( | ( | |||||||||
Purchases of property and equipment | ( | ( | |||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash flows from financing activities | |||||||||||
Proceeds from issuance of common stock in public offerings, net of issuance costs | |||||||||||
Proceeds from issuance of common stock under employee incentive equity plans | |||||||||||
Proceeds from the issuance of common stock in a private placement, net of issuance costs | |||||||||||
Proceeds from issuance of pre-funded warrants in a private placement, net of issuance costs | |||||||||||
Net cash provided by financing activities | |||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | ( | ||||||||||
Cash, cash equivalents and restricted cash at beginning of period | |||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | $ | |||||||||
Supplemental schedule of noncash investing and financing activities: | |||||||||||
Costs incurred, but not paid, in connection with deferred financing costs included in accounts payable and accrued liabilities | $ | $ | |||||||||
March 31, | |||||||||||
2024 | 2023 | ||||||||||
Common stock options | |||||||||||
Restricted stock units | |||||||||||
Performance stock units | |||||||||||
Employee Stock Purchase Plan shares pending issuance | |||||||||||
Total |
Fair Value Measurements Using | |||||||||||||||||||||||
As of March 31, 2024 | Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||||
Marketable securities: | |||||||||||||||||||||||
U.S. Treasury securities | $ | $ | $ | $ | |||||||||||||||||||
Negotiable certificates of deposit | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
Fair Value Measurements Using | |||||||||||||||||||||||
As of December 31, 2023 | Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||||
Marketable securities: | |||||||||||||||||||||||
U.S. Treasury securities | $ | $ | $ | $ | |||||||||||||||||||
U.S. Government agency securities | |||||||||||||||||||||||
Negotiable certificates of deposit | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
As of March 31, 2024 | Maturity (in years) | Amortized Cost | Unrealized Gains | Unrealized Losses | Estimated Fair Value | ||||||||||||||||||||||||
U.S. Treasury securities | 1 or less | $ | $ | $ | ( | $ | |||||||||||||||||||||||
Negotiable certificates of deposit | 1 or less | ( | |||||||||||||||||||||||||||
U.S. Treasury securities | 1 - 2 | ( | |||||||||||||||||||||||||||
Total | $ | $ | $ | ( | $ |
As of December 31, 2023 | Maturity (in years) | Amortized Cost | Unrealized Gains | Unrealized Losses | Estimated Fair Value | ||||||||||||||||||||||||
U.S. Treasury securities | 1 or less | $ | $ | $ | ( | $ | |||||||||||||||||||||||
U.S. Government agency securities | 1 or less | ( | |||||||||||||||||||||||||||
Negotiable certificates of deposit | 1 or less | ( | |||||||||||||||||||||||||||
U.S. Treasury securities | 1 - 2 | ( | |||||||||||||||||||||||||||
Negotiable certificates of deposit | 1 - 2 | ( | |||||||||||||||||||||||||||
Total | $ | $ | $ | ( | $ |
Less Than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||||||||||||||
As of March 31, 2024 | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||||||||||||||
U.S. Treasury securities | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Negotiable certificates of deposit | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
Less Than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||||||||||||||
As of December 31, 2023 | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||||||||||||||
U.S. Treasury securities | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
U.S. Government agency securities | |||||||||||||||||||||||||||||||||||
Negotiable certificates of deposit | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
Balance at December 31, 2023 | $ | ||||
Revenue recognized that was included in the balance at the beginning of the period | ( | ||||
Balance at March 31, 2024 | $ |
Balance at December 31, 2022 | $ | ||||
Revenue recognized that was included in the balance at the beginning of the period | ( | ||||
Balance at March 31, 2023 | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
Accounts receivable | $ | $ | |||||||||
Prepaid assets | |||||||||||
Interest receivable and other assets | |||||||||||
Total prepaid and other assets | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
Laboratory equipment | $ | $ | |||||||||
Computers and software | |||||||||||
Office furniture and equipment | |||||||||||
Leasehold improvements | |||||||||||
Property and equipment, gross | |||||||||||
Less accumulated depreciation | ( | ( | |||||||||
Total property and equipment, net | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
Accounts payable | $ | $ | |||||||||
Accrued non-clinical liabilities | |||||||||||
Accrued clinical liabilities | |||||||||||
Total accounts payable and accrued liabilities | $ | $ |
Number of Options | Weighted- Average Exercise Price Per Share | ||||||||||
Outstanding at December 31, 2023 | $ | ||||||||||
Granted | |||||||||||
Exercised | ( | ||||||||||
Forfeited/expired | ( | ||||||||||
Outstanding at March 31, 2024 | $ |
Number of Shares | Weighted-Average Grant Date Fair Value | ||||||||||
Unvested at December 31, 2023 | $ | ||||||||||
Granted | |||||||||||
Vested | ( | ||||||||||
Forfeited | ( | ||||||||||
Unvested at March 31, 2024 | $ |
Options | |||||||||||
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Risk-free interest rate | |||||||||||
Expected volatility | |||||||||||
Expected term (in years) | |||||||||||
Expected dividend yield |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Research and development expense | $ | $ | |||||||||
General and administrative expense | |||||||||||
Total stock-based compensation expense | $ | $ |
Three Months Ended March 31, | Change | ||||||||||||||||
2024 | 2023 | ||||||||||||||||
Revenue | $ | 3,543 | $ | 2,233 | $ | 1,310 | |||||||||||
Research and development expenses | 66,832 | 47,765 | 19,067 | ||||||||||||||
General and administrative expenses | 13,898 | 12,064 | 1,834 | ||||||||||||||
Other income | 8,332 | 5,202 | 3,130 |
Three Months Ended March 31, | Change | ||||||||||||||||
2024 | 2023 | ||||||||||||||||
External costs: | |||||||||||||||||
Del-desiran | $ | 9,095 | $ | 6,960 | $ | 2,135 | |||||||||||
AOC 1020 | 6,163 | 7,616 | (1,453) | ||||||||||||||
AOC 1044 | 5,839 | 2,536 | 3,303 | ||||||||||||||
Other programs | 1,438 | 3,477 | (2,039) | ||||||||||||||
Unallocated | 19,707 | 6,631 | 13,076 | ||||||||||||||
Total external costs | 42,242 | 27,220 | 15,022 | ||||||||||||||
Internal costs: | |||||||||||||||||
Employee-related expenses | 19,336 | 15,978 | 3,358 | ||||||||||||||
Facilities, lab supplies and other | 5,254 | 4,567 | 687 | ||||||||||||||
Total internal costs | 24,590 | 20,545 | 4,045 | ||||||||||||||
Total research and development expenses | $ | 66,832 | $ | 47,765 | $ | 19,067 |
Three Months Ended March 31, | Change | ||||||||||||||||
2024 | 2023 | ||||||||||||||||
Net cash provided by (used in): | |||||||||||||||||
Operating activities | $ | (70,380) | $ | (48,967) | $ | (21,413) | |||||||||||
Investing activities | (32,747) | (195,680) | 162,933 | ||||||||||||||
Financing activities | 389,445 | 22,961 | 366,484 | ||||||||||||||
Net decrease in cash, cash equivalents and restricted cash | $ | 286,318 | $ | (221,686) | $ | 508,004 |
Exhibit Number | Exhibit Description | Incorporated by Reference | Filed Herewith | |||||||||||||||||||||||||||||
Form | Date | Number | ||||||||||||||||||||||||||||||
3.1 | 8-K | 6/16/2020 | 3.1 | |||||||||||||||||||||||||||||
3.2 | 8-K | 12/13/2023 | 3.1 | |||||||||||||||||||||||||||||
4.1 | S-1 | 5/22/2020 | 4.1 | |||||||||||||||||||||||||||||
4.2 | 8-K | 2/29/2024 | 4.1 | |||||||||||||||||||||||||||||
10.1 | X | |||||||||||||||||||||||||||||||
10.2 | 8-K | 2/29/2024 | 10.1 | |||||||||||||||||||||||||||||
31.1 | X | |||||||||||||||||||||||||||||||
31.2 | X | |||||||||||||||||||||||||||||||
32.1* | X | |||||||||||||||||||||||||||||||
32.2* | X | |||||||||||||||||||||||||||||||
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101.SCH | Inline XBRL Taxonomy Extension Schema Document | X | ||||||||||||||||||||||||||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | X | ||||||||||||||||||||||||||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | X | ||||||||||||||||||||||||||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | X | ||||||||||||||||||||||||||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | X | ||||||||||||||||||||||||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | X |
Avidity Biosciences, Inc. | ||||||||
Date: May 9, 2024 | By: | /s/ Sarah Boyce | ||||||
Sarah Boyce President, Chief Executive Officer and Director (Principal Executive Officer) | ||||||||
Date: May 9, 2024 | By: | /s/ Michael F. MacLean | ||||||
Michael F. MacLean Chief Financial and Chief Business Officer (Principal Financial and Accounting Officer) |
Date: May 9, 2024 | /s/ Sarah Boyce | ||||
Sarah Boyce | |||||
President, Chief Executive Officer and Director | |||||
(Principal Executive Officer) |
Date: May 9, 2024 | /s/ Michael F. MacLean | ||||
Michael F. MacLean | |||||
Chief Financial and Chief Business Officer | |||||
(Principal Financial Officer) |
Date: May 9, 2024 | /s/ Sarah Boyce | ||||
Sarah Boyce | |||||
President, Chief Executive Officer and Director | |||||
(Principal Executive Officer) |
Date: May 9, 2024 | /s/ Michael F. MacLean | ||||
Michael F. MacLean | |||||
Chief Financial and Chief Business Officer | |||||
(Principal Financial Officer) |
Condensed Balance Sheets (Parenthetical) - $ / shares shares in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 400,000 | 400,000 |
Common stock, shares issued (in shares) | 95,594 | 79,275 |
Common stock, shares outstanding (in shares) | 95,594 | 79,275 |
Condensed Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Income Statement [Abstract] | ||
Collaboration revenue | $ 3,543 | $ 2,233 |
Operating expenses: | ||
Research and development | 66,832 | 47,765 |
General and administrative | 13,898 | 12,064 |
Total operating expenses | 80,730 | 59,829 |
Loss from operations | (77,187) | (57,596) |
Other income (expense): | ||
Interest income | 8,433 | 5,516 |
Other expense | (101) | (314) |
Total other income | 8,332 | 5,202 |
Net loss | $ (68,855) | $ (52,394) |
Net loss per share, basic (in dollars per share) | $ (0.79) | $ (0.74) |
Net loss per share, diluted (in dollars per share) | $ (0.79) | $ (0.74) |
Weighted-average shares outstanding, basic (in shares) | 87,212 | 70,433 |
Weighted-average shares outstanding, diluted (in shares) | 87,212 | 70,433 |
Other comprehensive income (loss): | ||
Net unrealized gains (losses) on marketable securities | $ (589) | $ 1,169 |
Comprehensive loss | $ (69,444) | $ (51,225) |
Condensed Statements of Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Public Stock Offering | ||
Public offering issuance costs | $ 143 | $ 408 |
Private Placement | ||
Public offering issuance costs | 12,821 | |
Pre-Funded Warrants Private Placement | ||
Public offering issuance costs | $ 7,605 |
Description of Business and Basis of Presentation |
3 Months Ended |
---|---|
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Description of Business and Basis of Presentation | Description of Business and Basis of Presentation Description of Business Avidity Biosciences, Inc. (the Company or Avidity) is a biopharmaceutical company committed to delivering a new class of RNA therapeutics called Antibody Oligonucleotide Conjugates (AOCs). The Company’s proprietary AOC platform is designed to combine the specificity of monoclonal antibodies with the precision of RNA therapeutics to target the root cause of diseases previously untreatable with such therapeutics. Liquidity To date, the Company has devoted substantially all of its resources to organizing and staffing the Company, business planning, raising capital, developing its proprietary AOC platform, identifying potential product candidates, establishing its intellectual property portfolio, conducting research, preclinical and clinical studies, and providing other general and administrative support for these operations. In addition, the Company has a limited operating history, has incurred operating losses since inception and expects that it will continue to incur net losses into the foreseeable future as it continues the development of its product candidates and development programs. As of March 31, 2024, the Company had an accumulated deficit of $639.6 million and cash, cash equivalents and marketable securities of $915.9 million. The Company believes that existing cash, cash equivalents and marketable securities will be sufficient to fund the Company’s operations for at least 12 months from the date of the filing of this Form 10-Q. The Company plans to finance its future cash needs through equity offerings, debt financings or other capital sources, including potential collaborations, licenses and other arrangements. If the Company is not able to secure adequate additional funding, it may be forced to make reductions in spending, extend payment terms with suppliers, liquidate assets where possible, and/or delay or reduce the scope of its planned development programs. Any of these actions could materially harm the Company’s business, results of operations and future prospects. Basis of Presentation The accompanying unaudited interim condensed financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) and the rules and regulations of the Securities and Exchange Commission (SEC) related to a quarterly report on Form 10-Q. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to those rules and regulations. The unaudited interim condensed financial statements reflect all adjustments which, in the opinion of management, are necessary for a fair statement of the results for the periods presented. All such adjustments are of a normal and recurring nature. The operating results presented in these unaudited interim condensed financial statements are not necessarily indicative of the results that may be expected for any future periods. These unaudited interim condensed financial statements should be read in conjunction with the audited financial statements and the notes thereto for the year ended December 31, 2023 included in the Company’s annual report on Form 10-K filed with the SEC on February 28, 2024. In December 2023, the Company formed Avidity Biosciences Ireland Limited, a wholly-owned subsidiary (the Subsidiary). There were no operations in, nor assets and liabilities held by, the Subsidiary in any of the periods presented.
|
Summary of Significant Accounting Policies |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Use of Estimates The Company’s condensed financial statements are prepared in accordance with GAAP, which requires the Company to make estimates and assumptions that impact the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities in the condensed financial statements and accompanying notes. The most significant estimates in the Company’s condensed financial statements relate to revenue recognition, stock-based compensation, and accrued research and development costs. Although these estimates are based on the Company’s knowledge of current events and actions it may undertake in the future, actual results may ultimately materially differ from these estimates and assumptions. Summary of Significant Accounting Policies The Company’s significant accounting policies are discussed in “Note 2 – Summary of Significant Accounting Policies” of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 filed with the SEC on February 28, 2024. There have been no significant changes to these policies during the three months ended March 31, 2024. Net Loss Per Share Basic net loss per share is computed by dividing the net loss by the weighted-average number of common shares outstanding for the period, adjusted for the weighted-average number of common shares outstanding that are subject to repurchase or forfeiture. Diluted net loss per share is computed by dividing the net loss by the weighted-average number of common shares and dilutive common stock equivalents outstanding for the period determined using the treasury-stock and if-converted methods. For all periods presented, there is no difference in the number of shares used to calculate basic and diluted shares outstanding as inclusion of the common stock equivalent securities would be anti-dilutive. The pre-funded common stock warrants are included in the calculation of basic and diluted net loss per share as the exercise price of $0.001 per share is not substantive and the shares are issuable for little or no consideration. Common stock equivalent securities not included in the calculation of diluted net loss per share, because to do so would be anti-dilutive, are as follows (in thousands):
Recently Issued Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (FASB) issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which modifies the disclosure and presentation requirements of reportable segments. The amendments in the update require the disclosure of significant segment expenses that are regularly provided to the CODM and included within each reported measure of segment profit and loss. The amendments also require disclosure of all other segment items by reportable segment and a description of its composition. Additionally, the amendments require disclosure of the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. Lastly, the amendment requires that a public entity that has a single reportable segment provide all the disclosures required by ASU 2023-07 and all existing segment disclosures in Topic 280. This update is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. ASU 2023-07 will be applied retrospectively and early adoption is permitted. The Company is currently evaluating the impact that this guidance will have on the presentation of its financial statements and accompanying notes. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which enhances income tax disclosures, primarily through standardization and disaggregation of the income tax rate reconciliation and disaggregation of income taxes paid. ASU 2023-09 is effective for annual periods beginning after December 15, 2024. ASU 2023-09 can be applied either prospectively or retrospectively and early adoption is permitted. The Company is currently evaluating the impact that this guidance will have on the presentation of its financial statements and accompanying notes.
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements The following tables summarize the Company’s cash equivalents and marketable securities measured at fair value (in thousands):
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Marketable Securities |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Marketable Securities | Marketable Securities The Company’s marketable securities, which consist of highly liquid marketable debt securities, are classified as available-for-sale and are stated at fair value. The following tables summarize the Company’s marketable securities (in thousands):
The unrealized losses on the Company’s marketable securities were caused by interest rate increases and resulted in the decrease in market value of these securities. There were no allowances for credit losses at March 31, 2024 and December 31, 2023 because (i) the decline in fair value is attributable to changes in interest rates and not credit quality, (ii) the Company does not intend to sell the investments before maturity, and (iii) it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases. The following table summarizes marketable securities in a continuous unrealized loss position for which an allowance for credit losses was not recorded (in thousands):
Accrued interest receivable on available-for-sale securities was $2.4 million and $2.6 million at March 31, 2024 and December 31, 2023, respectively. The Company has not written off any accrued interest receivable for the three months ended March 31, 2024 and 2023.
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Collaboration, License and Research Agreements |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||
Collaboration License And Research Agreements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Collaboration, License and Research Agreements | Collaboration, License and Research Agreements Research Collaboration and License Agreement with Bristol Myers Squibb Company In November 2023, the Company entered into a Research Collaboration and License Agreement (the BMS Collaboration Agreement) with Bristol Myers Squibb Company (BMS) to expand on its research with MyoKardia Inc. The BMS Collaboration Agreement and the BMS Purchase Agreement are referred to herein as the "BMS Agreements". In connection with the BMS Collaboration Agreement, the Company recognized revenue of $2.4 million for the three months ended March 31, 2024. There were no collaboration receivables related to the BMS Collaboration Agreement in any of the periods presented. Research Collaboration and License Agreement with Eli Lilly and Company In April 2019, the Company entered into a Research Collaboration and License Agreement (the Lilly Agreement) with Eli Lilly and Company (Lilly) for the discovery, development and commercialization of AOC products directed against certain targets in immunology and other select indications on a worldwide basis. In connection with the Lilly Agreement, the Company recognized revenue of $1.1 million and $2.2 million for the three months ended March 31, 2024 and 2023, respectively. Collaboration receivables related to the Lilly Agreement were $1.3 million and $0.8 million as of March 31, 2024 and December 31, 2023, respectively, which are included in prepaid and other assets on the condensed balance sheets. A reconciliation of the closing balance of deferred revenue related to the Company's research collaboration and license agreements three months ended March 31, 2024 and 2023 is as follows (in thousands):
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Composition of Certain Financial Statement Items |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Composition of Certain Financial Statement Items | Composition of Certain Financial Statement Items Prepaid and other assets (in thousands)
Property and equipment consist of the following (in thousands):
Depreciation expense related to property and equipment was $0.6 million and $0.4 million for the three months ended March 31, 2024 and 2023, respectively. Accounts payable and accrued liabilities (in thousands):
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Commitments and Contingencies |
3 Months Ended |
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Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation Liabilities for loss contingencies arising from claims, assessments, litigation, fines, penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. There are no such matters currently outstanding for which liabilities have been accrued.
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Stockholders' Equity |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity | Stockholders’ Equity Common Stock On November 8, 2022, the Company entered into a sales agreement (the 2022 Sales Agreement) with Cowen and Company, LLC (the Sales Agent). Under the 2022 Sales Agreement, the Company may, from time to time, sell shares of its common stock having an aggregate offering price of up to $200.0 million through the Sales Agent. Sales of the shares of common stock, if any, will be made at prevailing market prices at the time of sale, or as otherwise agreed with the Sales Agent. The Company is not obligated to sell, and the Sales Agent is not obligated to buy or sell, any shares of common stock under the 2022 Sales Agreement. During the three months ended March 31, 2024 and 2023, the Company sold 418,408 and 943,461 shares of its common stock, respectively, pursuant to the 2022 Sales Agreement and received net proceeds of $5.6 million and $22.4 million, respectively, after deducting offering-related transaction costs and commissions. On March 4, 2024, the Company sold 15,224,773 unregistered shares of its common stock and pre-funded warrants in lieu of common stock to purchase up to an aggregate of 9,030,851 shares of its common stock to investors in a private placement at an offering price of $16.50 per share and $16.499 per pre-funded warrant, which represents the offering price per share of common stock less an exercise price of $0.001 per share. The Company valued the common stock at the offering price, concluding that the offering price approximated fair value. The net proceeds from the private placement were $379.8 million after deducting placement fees and offering costs of $20.4 million. The resale of the shares, including the shares issuable upon exercise of the pre-funded warrants, were subsequently registered on an automatically effective Registration Statement on Form S-3 filed with the SEC on April 2, 2024. The pre-funded warrants are a freestanding instrument that do not meet the definition of a liability pursuant to ASC 480 and do not meet the definition of a derivative pursuant to ASC 815. The Company valued the pre-funded warrants at the offering price, concluding that the offering price approximated fair value. The pre-funded warrants meet the equity classification criteria and were accounted for as a component of additional paid-in capital. The pre-funded warrants are immediately exercisable and do not expire. One of the investors who participated in the private placement met the criteria of a related party as such investor was a principal owner of more than 10% of the voting interest in the Company (the Principal Owner). The Principal Owner purchased 2,121,213 shares of the Company's common stock for $35.0 million. The purchase of common stock under the private placement by the Principal Owner was carried out at arm's length as substantiated by the fact that the per share purchase price equaled the price paid by other participants. No amounts were due from the Principal Owner as of March 31, 2024. Stock Options Stock option activity for employee and non-employee awards and related information is as follows (in thousands, except per share data):
Restricted Stock Units and Performance Stock Units During the three months ended March 31, 2024, the Company granted restricted stock units (RSUs) to employees of the Company under the 2020 Incentive Award and the 2022 Employment Inducement Incentive Award Plans. RSUs are valued at the market price of a share of the Company’s stock on the date of grant. RSUs vest ratably on an annual basis over a four-year service period and are payable in shares of common stock on the vesting date. Compensation expense for RSUs is recognized on a straight-line basis over the four-year service period. Forfeitures are recorded in the period in which they occur. The following table summarizes the RSU activity for the three months ended March 31, 2024 (in thousands, except per share data):
The total fair value of shares vested during the three months ended March 31, 2024 was $1.5 million. No RSUs vested during the three months ended March 31, 2023. As of December 31, 2023, the Company had 750,000 Performance Stock Options (PSUs) at a weighted-average grant date fair value of $6.57 per share. As of March 31, 2024, no PSUs were vested and no stock-based compensation expense has been recognized as the performance conditions were not deemed probable. Employee Stock Purchase Plan The Company did not issue shares of common stock under the Employee Stock Purchase Plan (ESPP) during the three months ended March 31, 2024 and 2023, respectively. The Company had an outstanding liability of $0.6 million at March 31, 2024, which is included in accounts payable and accrued liabilities on the condensed balance sheet, for employee contributions to the ESPP for shares pending issuance at the end of the current offering period. As of March 31, 2024, 372,517 shares of common stock were available for issuance under the ESPP. Stock-Based Compensation Expense The assumptions used in the Black-Scholes-Merton model to determine the fair value of stock option grants were as follows:
Risk-Free Interest Rate. The Company bases the risk-free interest rate assumption for equity awards on the rates for U.S. Treasury zero-coupon bonds with maturities similar to those of the expected term of the award being valued. Expected Volatility. The expected volatility of stock options is estimated based on the average historical volatilities of common stock of comparable publicly traded companies and the Company's own volatility. The comparable companies are chosen based on their size and stage in the life cycle. The Company will continue to apply this process until a sufficient amount of historical information regarding the volatility of its own stock price becomes available. Prior to 2023, the Company exclusively used peer group companies to determine expected volatility. Expected Term. The Company's limited option exercise history does not provide a reasonable basis for estimating expected term, therefore the Company has estimated the expected life of its stock options using the simplified method, whereby the expected life equals the average of the vesting term and the original contractual term of the option. The expected life assumption for employee stock purchases under the ESPP is six months to conform with the six-month ESPP offering period. Expected Dividend Yield. The Company’s expected dividend yield assumption is zero as it has never paid dividends and has no present intention to do so in the future. The allocation of stock-based compensation expense for stock option, RSU awards, PSU awards, and shares purchasable under the ESPP was as follows (in thousands):
As of March 31, 2024, the unrecognized compensation cost related to outstanding time-based options and RSUs was $67.9 million and $18.0 million, respectively, which is expected to be recognized over a weighted-average period of 2.69 years and 3.48 years, respectively. Unrecognized compensation cost related to PSUs was $4.9 million. As of March 31, 2024, the unrecognized compensation cost related to stock purchase rights under the ESPP was $0.2 million, which is expected to be recognized over a weighted-average period of 0.21 years.
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Subsequent Events |
3 Months Ended |
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Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events In April 2024, the Company entered into a sublease agreement with Turning Point Therapeutics, Inc. to rent 105,000 square feet for office and laboratory space for the Company’s future corporate headquarters. The term of the sublease is approximately 9 years and 9 months with payments beginning in August 2025. Pursuant to the terms of the sublease agreement, the landlord will provide the Company with a tenant improvement allowance of up to $33.6 million. Additional tenant improvement allowance of up to $5.0 million is also available to be repaid in equal installments through monthly rent, subject to 8% interest per annum and annual increases of 3% per annum. The Company also has an option and right of first refusal for an additional 80,000 of rentable square feet in an adjacent available building, which has not been exercised. Total aggregate future lease commitments under the lease were approximately $72.6 million, inclusive of 3% annual rent increase and various agreed upon rent abatement amounts. In connection with the sublease, the Company is required to maintain a letter of credit for the benefit of the landlord in the amount of $2.5 million, which was delivered in April 2024 and will be included in restricted cash in the Company’s condensed balance sheet.
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Pay vs Performance Disclosure - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2024 |
Mar. 31, 2023 |
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Pay vs Performance Disclosure | ||
Net loss | $ (68,855) | $ (52,394) |
Insider Trading Arrangements |
3 Months Ended |
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Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accounting Policies (Policies) |
3 Months Ended |
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Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim condensed financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) and the rules and regulations of the Securities and Exchange Commission (SEC) related to a quarterly report on Form 10-Q. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to those rules and regulations. The unaudited interim condensed financial statements reflect all adjustments which, in the opinion of management, are necessary for a fair statement of the results for the periods presented. All such adjustments are of a normal and recurring nature. The operating results presented in these unaudited interim condensed financial statements are not necessarily indicative of the results that may be expected for any future periods. These unaudited interim condensed financial statements should be read in conjunction with the audited financial statements and the notes thereto for the year ended December 31, 2023 included in the Company’s annual report on Form 10-K filed with the SEC on February 28, 2024.
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Use of Estimates | Use of Estimates The Company’s condensed financial statements are prepared in accordance with GAAP, which requires the Company to make estimates and assumptions that impact the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities in the condensed financial statements and accompanying notes. The most significant estimates in the Company’s condensed financial statements relate to revenue recognition, stock-based compensation, and accrued research and development costs. Although these estimates are based on the Company’s knowledge of current events and actions it may undertake in the future, actual results may ultimately materially differ from these estimates and assumptions.
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Net Loss Per Share | Net Loss Per Share Basic net loss per share is computed by dividing the net loss by the weighted-average number of common shares outstanding for the period, adjusted for the weighted-average number of common shares outstanding that are subject to repurchase or forfeiture. Diluted net loss per share is computed by dividing the net loss by the weighted-average number of common shares and dilutive common stock equivalents outstanding for the period determined using the treasury-stock and if-converted methods. For all periods presented, there is no difference in the number of shares used to calculate basic and diluted shares outstanding as inclusion of the common stock equivalent securities would be anti-dilutive. The pre-funded common stock warrants are included in the calculation of basic and diluted net loss per share as the exercise price of $0.001 per share is not substantive and the shares are issuable for little or no consideration.
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Recently Issued and Adopted Accounting Pronouncements | Recently Issued Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (FASB) issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which modifies the disclosure and presentation requirements of reportable segments. The amendments in the update require the disclosure of significant segment expenses that are regularly provided to the CODM and included within each reported measure of segment profit and loss. The amendments also require disclosure of all other segment items by reportable segment and a description of its composition. Additionally, the amendments require disclosure of the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. Lastly, the amendment requires that a public entity that has a single reportable segment provide all the disclosures required by ASU 2023-07 and all existing segment disclosures in Topic 280. This update is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. ASU 2023-07 will be applied retrospectively and early adoption is permitted. The Company is currently evaluating the impact that this guidance will have on the presentation of its financial statements and accompanying notes. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which enhances income tax disclosures, primarily through standardization and disaggregation of the income tax rate reconciliation and disaggregation of income taxes paid. ASU 2023-09 is effective for annual periods beginning after December 15, 2024. ASU 2023-09 can be applied either prospectively or retrospectively and early adoption is permitted. The Company is currently evaluating the impact that this guidance will have on the presentation of its financial statements and accompanying notes.
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Summary of Significant Accounting Policies (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Potentially Dilutive Securities not Included in Calculation of Diluted Net Loss Per Share | Common stock equivalent securities not included in the calculation of diluted net loss per share, because to do so would be anti-dilutive, are as follows (in thousands):
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Fair Value Measurements (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Cash Equivalents and Marketable Securities Measured at Fair Value | The following tables summarize the Company’s cash equivalents and marketable securities measured at fair value (in thousands):
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Marketable Securities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Marketable Securities | The Company’s marketable securities, which consist of highly liquid marketable debt securities, are classified as available-for-sale and are stated at fair value. The following tables summarize the Company’s marketable securities (in thousands):
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Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value | The following table summarizes marketable securities in a continuous unrealized loss position for which an allowance for credit losses was not recorded (in thousands):
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Collaboration, License and Research Agreements (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||
Collaboration License And Research Agreements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Reconciliation of Deferred | A reconciliation of the closing balance of deferred revenue related to the Company's research collaboration and license agreements three months ended March 31, 2024 and 2023 is as follows (in thousands):
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Composition of Certain Financial Statement Items (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Prepaid and Other Current Assets | Prepaid and other assets (in thousands)
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Schedule of Property and Equipment | Property and equipment consist of the following (in thousands):
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Schedule of Accounts Payable and Accrued Liabilities | Accounts payable and accrued liabilities (in thousands):
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Stockholders' Equity (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Stock Option Activity | Stock option activity for employee and non-employee awards and related information is as follows (in thousands, except per share data):
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Schedule of Unvested Restricted Stock Units Roll Forward | The following table summarizes the RSU activity for the three months ended March 31, 2024 (in thousands, except per share data):
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Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions | The assumptions used in the Black-Scholes-Merton model to determine the fair value of stock option grants were as follows:
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Schedule of Allocated Stock-based Compensation Expense | The allocation of stock-based compensation expense for stock option, RSU awards, PSU awards, and shares purchasable under the ESPP was as follows (in thousands):
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Description of Business and Basis of Presentation - Additional Information (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Accounting Policies [Abstract] | ||
Accumulated deficit | $ 639,619 | $ 570,764 |
Cash, cash equivalents and marketable securities | $ 915,900 |
Summary of Significant Accounting Policies - Additional Information (Details) |
Mar. 31, 2024
$ / shares
|
---|---|
Pre-Funded Common Stock Warrant | |
Class of Warrant or Right [Line Items] | |
Class of warrant or right, exercise price (in dollar per share) | $ 0.001 |
Summary of Significant Accounting Policies - Schedule of Potentially Dilutive Securities not Included in Calculation of Diluted Net Loss Per Share (Details) - shares shares in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Total | 15,735 | 11,624 |
Common stock options | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Total | 13,485 | 10,973 |
Restricted stock units | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Total | 1,415 | 607 |
Performance stock units | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Total | 750 | 0 |
Employee Stock Purchase Plan shares pending issuance | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Total | 85 | 44 |
Marketable Securities - Additional Information (Details) - USD ($) |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
|
Investments, Debt and Equity Securities [Abstract] | |||
Allowance for credit loss | $ 0 | $ 0 | |
Accrued interest receivable on available-for-sale securities | 2,400,000 | $ 2,600,000 | |
Debt securities, available-for-sale, accrued interest writeoff | $ 0 | $ 0 |
Collaboration, License and Research Agreements - Additional Information (Details) - USD ($) |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
|
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||
Revenue recognized | $ 3,543,000 | $ 2,233,000 | |
Research Collaboration, License Agreement and Securities Purchase Agreement with BMS | |||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||
Revenue recognized | 2,400,000 | ||
Collaboration receivables | 0 | $ 0 | |
Research Collaboration and License Agreement with Eli Lilly | |||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||
Revenue recognized | 1,100,000 | $ 2,200,000 | |
Collaboration receivables | $ 1,300,000 | $ 800,000 |
Collaboration, License and Research Agreements - Reconciliation of Deferred Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Contract With Customer, Liability [Roll Forward] | ||
Beginning balance | $ 69,263 | $ 6,276 |
Revenue recognized that was included in the balance at the beginning of the period | (2,961) | (1,219) |
Ending balance | $ 66,302 | $ 5,057 |
Composition of Certain Financial Statement Items - Schedule of Prepaid and Other Assets (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Property, Plant and Equipment [Abstract] | ||
Accounts receivable | $ 1,575 | $ 1,105 |
Prepaid assets | 9,561 | 7,333 |
Interest receivable and other assets | 7,465 | 7,518 |
Total prepaid and other assets | $ 18,601 | $ 15,956 |
Composition of Certain Financial Statement Items - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 14,517 | $ 13,602 |
Less accumulated depreciation | (5,862) | (5,221) |
Total property and equipment, net | 8,655 | 8,381 |
Laboratory equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 12,008 | 11,208 |
Computers and software | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 242 | 127 |
Office furniture and equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 1,979 | 1,979 |
Leasehold improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 288 | $ 288 |
Composition of Certain Financial Statement Items - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Property, Plant and Equipment [Abstract] | ||
Depreciation expenses related to property and equipment | $ 641 | $ 391 |
Composition of Certain Financial Statement Items - Schedule of Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Property, Plant and Equipment [Abstract] | ||
Accounts payable | $ 2,349 | $ 8,809 |
Accrued non-clinical liabilities | 28,921 | 19,535 |
Accrued clinical liabilities | 6,060 | 5,997 |
Total accounts payable and accrued liabilities | $ 37,330 | $ 34,341 |
Commitments and Contingencies (Details) |
Mar. 31, 2024
USD ($)
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
Loss contingencies accrued | $ 0 |
Stockholders' Equity - Summary of Stock Option Activity (Details) - $ / shares shares in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Dec. 31, 2023 |
|
Number of Options | ||
Beginning balance (in shares) | 12,495 | |
Granted (in shares) | 1,767 | |
Exercised (in shares) | (541) | |
Forfeited/expired (in shares) | (236) | |
Ending balance (in shares) | 13,485 | |
Weighted- Average Exercise Price Per Share | ||
Outstanding (in dollars per share) | $ 14.59 | $ 14.91 |
Granted (in dollars per share) | 10.37 | |
Exercised (in dollars per share) | 7.21 | |
Forfeited/expired (in dollars per share) | $ 16.83 |
Stockholders' Equity - Schedule of Unvested Restricted Stock Units Roll Forward (Details) - Restricted Stock Units (RSUs) - $ / shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Number of Shares | ||
Beginning balance (in shares) | 758,000 | |
Granted (in shares) | 845,000 | |
Vested (in shares) | (135,000) | 0 |
Forfeited (in shares) | (53,000) | |
Ending balance (in shares) | 1,415,000 | |
Weighted-Average Grant Date Fair Value | ||
Beginning balance (in dollars per share) | $ 18.73 | |
Granted (in dollars per share) | 10.53 | |
Vested (in dollars per share) | 22.42 | |
Forfeited (in dollars per share) | 15.69 | |
Ending balance (in dollars per share) | $ 13.60 |
Stockholders' Equity - Schedule of Assumptions to Determine Fair Value (Details) |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected dividend yield | 0.00% | |
Stock Options | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Risk-free interest rate, Minimum | 3.90% | 3.50% |
Risk-free interest rate, Maximum | 4.30% | 4.00% |
Expected volatility, Minimum | 79.00% | 81.00% |
Expected volatility, Maximum | 80.00% | 82.00% |
Expected dividend yield | 0.00% | 0.00% |
Stock Options | Minimum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected term (in years) | 6 years | 6 years |
Stock Options | Maximum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected term (in years) | 6 years 1 month 6 days | 6 years 1 month 6 days |
Employee Stock | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected term (in years) | 6 months |
Stockholders' Equity - Schedule of Allocated Stock-based Compensation Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | $ 10,306 | $ 9,104 |
Research and development expense | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | 5,737 | 5,272 |
General and administrative expense | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | $ 4,569 | $ 3,832 |
Subsequent Events - Additional Information (Details) - Subsequent Event - Turning Point Therapeutics, Inc. $ in Millions |
1 Months Ended |
---|---|
Apr. 30, 2024
USD ($)
ft²
| |
Subsequent Event [Line Items] | |
Area of land | ft² | 105,000 |
Term of contract | 9 years 9 months |
Tenant improvement allowance | $ 33.6 |
Additional tenant improvement allowance | $ 5.0 |
Additional tenant improvement allowance interest rate | 0.08 |
Additional tenant improvement allowance interest rate, annual increase | 0.03 |
Operating lease not yet commenced, area of additional rentable space | ft² | 80,000 |
Aggregate future lease payments | $ 72.6 |
Annual rent increase, percent | 3.00% |
Letter of Credit | |
Subsequent Event [Line Items] | |
Debt instrument, face amount | $ 2.5 |
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