Related Party Transactions

9 Months Ended

Sep. 30, 2019

Related Party Transactions [Abstract]

Related Party Transactions

12. Related Party Transactions

Novartis Institutes for BioMedical Research

In connection with its entry into the collaboration and license agreement and related equity transactions with Novartis, in 2015 the Company issued Novartis capital stock, and in May 2016, Novartis acquired 277,777 shares of the Company’s common stock in a private placement transaction concurrent with the Company’s initial public offering (“IPO”). Novartis owned less than 10 percent of the Company’s voting interests as of June 30, 2019.

The Company recognized collaboration revenue of $4.8 million and $14.3 million during the three and nine months ended September 30, 2019 and $2.4 million and $7.2 million during the three and nine months ended September 30, 2018, respectively, related to the Novartis Agreement. As of September 30, 2019 and December 31, 2018, the Company had recorded accounts receivable of $1.0 million and $6.0 million, respectively, and deferred revenue of $3.1 million and $14.5 million, respectively, related to this collaboration. Refer to Note 7, Collaborations, for additional information regarding this collaboration agreement.

Research Material Supplier

In the ordinary course of business, the Company may purchase materials or supplies from entities that are associated with a party that meets the criteria of a related party of the Company.  These transactions are reviewed quarterly and to date have not been material to the Company’s condensed consolidated financial statements.