Collaboration Agreements (Tables)

12 Months Ended

Dec. 31, 2020

Research and Development [Abstract]

Disaggregation of Revenue

The following tables summarize grant revenue and deferred grant revenue for and as of the periods presented (in thousands):

	Years Ended
	2020		2019		2018
BARDA	$	521,652	$	7,608	$	6,736
Other grant revenue	7,253		4,565		5,820
Total grant revenue	$	528,905	$	12,173	$	12,556

	December 31,
	2020		2019
Deferred grant revenue	$	5,261	$	2,777

The following table summarizes our total consolidated net revenue from our strategic collaborators for the periods presented (in thousands):

	Years Ended December 31,
Collaboration Revenue by Strategic Collaborator:	2020		2019		2018 (1)
Merck	$	26,076	$	36,608	$	66,082
AstraZeneca	32,624		5,233		45,993
Vertex	15,505		6,195		10,437
Other	413		—		—
Total collaboration revenue	$	74,618	$	48,036	$	122,512

________

(1) Under ASC 605

The following table summarizes the revenue recognized for the periods presented (in thousands):

	Years Ended December 31,
	2020		2019		2018
Combined AZ Agreements	$	18,371	$	4,650	$	45,393

The following table summarizes the revenue and contra-revenue recognized for the periods presented (in thousands):

	Years Ended December 31,
	2020		2019		2018
Contra-revenue under the May 2019 Amendment	$	(7,088)	$	(5,265)	$	—
Collaboration revenue under the 2015 Merck Agreement	62		492		24,582
Total contra-revenue	$	(7,026)	$	(4,773)	$	24,582

Changes in Balances of Receivables and Contract Liabilities

The following table presents changes in the balances of our receivables and contract liabilities related to our strategic collaboration agreements during the year ended December 31, 2020 (in thousands):

	December 31, 2019		Additions		Deductions		December 31, 2020
Contract Assets:
Accounts receivable	$	1,972	$	120,821	$	(117,249)	$	5,544
Contract Liabilities:
Deferred revenue	$	199,528	$	121,882	$	(81,228)	$	240,182

During the year ended December 31, 2020, we recognized the following revenue as a result of the change in the contract liability balances related to our collaboration agreements (in thousands):

Revenue recognized in the period from:	Year Ended December 31, 2020
Amounts included in contract liabilities at the beginning of the period (1)	$	72,863
Performance obligations satisfied (or partially satisfied) in previous reporting periods (2)	8,366

______________

(1) We first allocate revenue to the individual contract liability balance outstanding at the beginning of the period until the revenue exceeds that balance. If additional consideration is received on those contracts in subsequent periods, we assume all revenue recognized in the reporting period first applies to the beginning contract liability.

(2) Related to changes in estimated costs for our future performance obligations and estimated variable considerations.

The following table summarizes the balances of deferred revenue at period end, which is classified as current or non-current in the consolidated balance sheets based on the period the services are expected to be performed or control of the supply is expected to be transferred (in thousands):

	December 31,
	2020		2019
Combined AZ Agreements	$	57,192	$	73,669

The following table summarizes the revenue recognized for the periods presented (in thousands):

	Years Ended December 31,
	2020		2019		2018
2016 VEGF Exercise	$	14,253	$	583	$	—

The following table summarizes the balances of deferred revenue at period end, which is classified as current or non-current in the consolidated balance sheets based on the period the services are expected to be performed or control of the supply is expected to be transferred (in thousands):

	December 31,
	2020		2019
2016 VEGF Exercise	$	29,335	$	41,266

The following table summarizes the revenue recognized for the periods presented (in thousands):

	Years Ended December 31,
	2020		2019		2018
PCV/SAV Agreement	$	33,103	$	41,382	$	41,498

The following table summarizes the balances of deferred revenue, which is classified as current or non-current in the condensed consolidated balance sheets based on the period the services are expected to be performed or control of the supply is expected to be transferred for the periods presented (in thousands):

	December 31
	2020		2019
PCV/SAV Agreement	$	51,007	$	83,799

The following table summarizes the revenue recognized for the periods presented (in thousands):

	Years Ended December 31,
	2020		2019		2018
Vertex First Extended Research Term	$	13,452	$	—	$	—
Vertex Agreement/2019 Amendment	2,053		6,197		10,400
Total	$	15,505	$	6,197	$	10,400

The following table summarizes the balances of deferred revenue, classified as current and non-current in the condensed consolidated balance sheets based on the term of the research period for the periods presented (in thousands):

	December 31,
	2020		2019
Vertex Agreement (1)	$	2,648	$	793

____________

(1) Balance as of December 31, 2019 represents deferred revenue related to the Vertex 2019 Amendment

The following table summarizes the activities in deferred revenue during the year ended December 31, 2020 (in thousands):

	December 31, 2019		Additions		Deductions		December 31, 2020
Product sales	$	—	$	3,881,303	$	(82,134)	$	3,799,169
Grant revenue	2,777		6,775		(4,291)		5,261
Collaboration revenue	199,528		121,882		(81,228)		240,182
Total deferred liabilities	$	202,305	$	4,009,960	$	(167,653)	$	4,044,612

Summary of Composition of the Total Transaction

The following table summarizes the composition of the total transaction price for the periods presented (in thousands):

	Transaction Price
	December 31,
Combined 2018 AZ Agreements:	2020		2019
Upfront payments	$	240,000	$	240,000
Sublicense reimbursement	1,000		1,000
Toxicity milestone payment	60,000		60,000
Competition milestone payment	60,000		60,000
Estimated reimbursement for IL-12 manufacturing obligations	35,830		40,782
Total	$	396,830	$	401,782

The following table summarizes the composition of the total transaction price for the periods presented (in thousands):

	Transaction Price
	December 31,
2016 VEGF Exercise:	2020		2019
Option exercise fee	$	10,000	$	10,000
Milestone payment	30,000		30,000
Sublicense reimbursement	2,250		2,250
Estimated reimbursement for clinical supply	18,062		15,621
Total	$	60,312	$	57,871

The following table summarizes the composition of the total transaction price for the periods presented (in thousands):

	Transaction Price
	December 31,
2015 Merck Agreement:	2020		2019
Upfront payments	$	60,000	$	60,000
Development milestones	5,000		5,000
Reduction of reimbursements paid to Merck	(12,353)		(5,265)
Total	$	52,647	$	59,735

The following table summarizes the composition of the total transaction price for the periods presented (in thousands):

	Transaction Price
	December 31,
PCV/SAV Agreement:	2020		2019
Upfront payment	$	200,000	$	200,000
Premium associated with the contemporaneous sale of Series H redeemable convertible preferred stock	13,050		13,050
Reimbursement for clinical supply	310		—
Total	$	213,360	$	213,050

The following table summarizes the composition of the total transaction price for the First Extended Research Term at December 31, 2020 (in thousands):

	Transaction Price
Vertex Agreement - First Extended Research Term:	December 31, 2020
Upfront payment	$	4,000
Research and development	39,798
Total	$	43,798

The following table summarizes the composition of the total transaction price for the periods presented (in thousands):

	Transaction Price
Chiesi Agreement:	December 31, 2020
Upfront payment	$	25,000
Research and development	17,496
Total	$	42,496

Summary of Total Transaction Price to the Identified Performance Obligations

The following table summarizes the allocation of the total transaction price to the identified performance obligations under the arrangement, and the amount of the transaction price unsatisfied as of December 31, 2020 (in thousands):

	Transaction Price
Combined 2018 AZ Agreements:	December 31, 2020
Combined 2018 AZ Agreement performance obligation	$	293,223
Preclinical development service - IL-12	8,133
Preclinical development service - oncology development target	8,133
Development and commercialization license and manufacturing obligation	85,750
Material right to receive development and commercialization rights	1,591
Total	$	396,830
Remaining unsatisfied performance obligation	$	87,225

The following table summarizes the total transaction price allocated to the single performance obligation under the arrangement, and the amount of the transaction price unsatisfied as of December 31, 2020 (in thousands):

	Transaction Price
	December 31, 2020
2016 VEGF Exercise combined performance obligation	60,312
Remaining unsatisfied performance obligation	41,877

The following table summarizes the total transaction price allocated to the combined performance obligation under the arrangement, and the amount of the transaction price unsatisfied as of December 31, 2020 (in thousands):

	Transaction Price
	December 31, 2020
2015 Merck Agreement	$	52,647
Remaining unsatisfied performance obligation	$	—

The following tables summarize the allocation of the total transaction price to the identified performance obligations under the arrangement, and the amount of the transaction price unsatisfied as of December 31, 2020 (in thousands):

	Transaction Price
PCV/SAV Agreement:	December 31, 2020
PCV performance obligation	$	206,356
KRAS performance obligation	7,004
Total	$	213,360
Remaining unsatisfied performance obligation	$	51,007

The following table summarizes the total transaction price allocated to the single performance obligation under the arrangement, and the amount of the transaction price unsatisfied as of December 31, 2020 (in thousands):

	Transaction Price
	December 31, 2020
First Extended Research Term transaction price	$	43,798
Remaining unsatisfied performance obligation	$	30,346

The following table summarizes the allocation of the transaction price to the identified performance obligations under the arrangement, and the amount of the transaction price unsatisfied as of December 31, 2020 (in thousands):

	Transaction Price
	December 31, 2020
Chiesi Agreement transaction price	$	42,496
Remaining unsatisfied performance obligation	$	42,293