Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 ~~days~~ days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically ~~and posted on its corporate Web site, if any,~~ every Interactive Data File required to be submitted ~~and posted~~ pursuant to Rule 405 of RegulationS-T during the preceding 12 months (or for such shorter period that the registrant was required to submit ~~and post~~ such files). ~~Yes~~ ☒ Yes ☐ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, anon-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting ~~company”~~company,” and “emerging growth company” inRule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section ~~13(a)~~13 (a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule12b-2 of the Exchange Act). Yes ☐ No ☒

The number of outstanding shares of the registrant’s common stock, par value $0.001 per share, as of ~~October 31, 2017,~~April 29, 2022 was ~~48,766,664.~~71,193,352.


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2017			2016			2017			2016			Three Months Ended March 31,
													2022			2021
Revenue:
Collaboration and license revenue	$	9,029		$	4,131		$	26,196		$	6,751
Product sales, net													$	5,353		$	0
Collaboration and license revenue from related party														106			10,223
Grant revenue		—			120			—			295			0			130

Total revenue		9,029			4,251			26,196			7,046			5,459			10,353

Operating expenses:
Cost of sales														205			0
Research and development		12,315			8,389			36,614			28,696			17,476			23,418
General and administrative		3,624			3,193			12,381			11,154

Selling, general and administrative														26,011			16,262
Total operating expenses		15,939			11,582			48,995			39,850			43,692			39,680

Loss from operations		(6,910	)		(7,331	)		(22,799	)		(32,804	)		(38,233	)		(29,327	)
Other income:
Other expense:
Interest income		350			259			1,003			506			222			305

Total other income, net		350			259			1,003			506

Interest expense														(597	)		(689	)
Total other expense, net														(375	)		(384	)
Net loss	$	(6,560	)	$	(7,072	)	$	(21,796	)	$	(32,298	)	$	(38,608	)	$	(29,711	)

Net loss per common share
Basic and diluted net loss per common share	$	(0.13	)	$	(0.15	)	$	(0.45	)	$	(0.70	)	$	(0.55	)	$	(0.43	)

Shares used to compute basic and diluted net loss per common share		48,602			47,763			48,314			45,942			70,835			69,608


	Nine Months Ended September 30,
	2017			2016			Three Months Ended March 31,
							2022			2021
Operating activities
Net loss	$	(21,796	)	$	(32,298	)	$	(38,608	)	$	(29,711	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Stock-based compensation								9,426			8,080
Depreciation of property and equipment		311			260			1,017			117
Stock-based compensation		6,841			6,488
Noncash interest expense, net		63			142
Non-cash lease expense								215			594
Non-cash interest expense, net								1,228			997
Changes in assets and liabilities:
Accounts receivable		29,675			(120	)
Accounts receivable, net								(2,370	)		7
Accounts receivable from related party								14			(9,980	)
Inventory								(2,046	)		0
Prepaids and other current assets		(577	)		(196	)		(2,162	)		583
Other assets		(102	)		(125	)		32			(4	)
Accounts payable		682			165			(1,329	)		1,201
Operating lease liabilities								(664	)		6,342
Other liabilities		(347	)		2,331			(960	)		418
Deferred revenue		(15,667	)		71,249

Deferred revenue from related party								45,038			(211	)
Net cash provided by (used in) operating activities		(917	)		47,896			8,831			(21,567	)

Investing activities
Purchases of property and equipment, net		(376	)		(89	)		(224	)		(10,880	)
Purchases of investments		(104,201	)		(116,958	)		(91,498	)		(95,278	)
Maturities of investments		109,050			62,574			70,385			166,826

Net cash provided by (used in) investing activities		4,473			(54,473	)

Net cash (used in) provided by investing activities								(21,337	)		60,668
Financing activities
Proceeds from issuance of common stock		—			7,000
Proceeds from exercise of stock options and employee stock purchase plan		2,678			621			6,231			2,163
Employees’ tax withheld and paid for restricted stock units		(297	)		—

Net cash provided by financing activities		2,381			7,621

Net increase in cash and cash equivalents		5,937			1,044
Cash and cash equivalents at beginning of period		12,024			12,823

Cash and cash equivalents at end of period	$	17,961		$	13,867

Employees' tax withheld and paid for restricted stock units								(3,126	)		(5,013	)
Net cash provided by (used in) financing activities								3,105			(2,850	)
Net (decrease) increase in cash, cash equivalents and restricted cash								(9,401	)		36,251
Cash, cash equivalents and restricted cash at beginning of period								51,058			33,377
Cash, cash equivalents and restricted cash at end of period							$	41,657		$	69,628
Supplemental disclosures of cash flow information
Cash paid for interest							$	488		$	509
Right-of-use assets obtained in exchange for lease obligations							$	1		$	300
Purchases of property and equipment, net recorded in accounts payable and accrued liabilities							$	6		$	2,807

Description of Business

1.	~~Description of Business~~

ChemoCentryx, Inc. (the Company) commenced operations in 1997. The Company is a ~~clinical-stage~~fully integrated United States biopharmaceutical company focused on ~~developing~~the development and commercialization of new medications ~~targeted at~~targeting inflammatory disorders, autoimmune diseases and cancer. The Company discovered, developed and is now commercializing TAVNEOSÒ (avacopan) in the U.S. as an adjunctive treatment for adult patients with severe active anti-neutrophil cytoplasmic autoantibody-associated vasculitis (ANCA-associated vasculitis), specifically granulomatosis with polyangiitis (GPA) and microscopic polyangiitis (MPA), the two main forms of ANCA-associated vasculitis, in combination with standard therapy including glucocorticoids, and not for the elimination of glucocorticoids use. The Company’s principal operations are in the ~~United States~~U.S. and it operates in ~~one~~1 segment.

Unaudited Interim Financial Information

The financial information filed is unaudited. The Condensed Consolidated Financial Statements included in this report reflect all adjustments (consisting only of normal recurring adjustments) that the Company considers necessary for the fair statement of the results of operations for the interim periods covered and of the financial condition of the Company at the date of the interim balance sheet. The December 31, ~~2016~~2021 Condensed Consolidated Balance Sheet was derived from audited financial statements. The results for interim periods are not necessarily indicative of the results for the entire year or any other interim period. The Condensed Consolidated Financial Statements should be read in conjunction with the Company’s financial statements and the notes thereto included in the Company’s ~~annual report~~Annual Report on Form10-K for the year ended December 31, ~~2016~~2021 filed with the Securities and Exchange Commission on March ~~14, 2017.~~1, 2022.

Summary of Significant Accounting Policies

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted ~~accounting principles~~ in the United States ~~of America (U.S. GAAP)~~(GAAP) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from these estimates.

Concentration of Credit Risk

The Company invests in a variety of financial instruments and, by its policy, limits the amount of credit exposure with any one issuer, industry or geographic area.

For the three months ended March 31, 2022 and 2021, total revenue derived from the Company’s collaboration with Vifor (International) Ltd., and/or its affiliates, or collectively, Vifor, was 1.9% and 98.7%, respectively. Accounts receivable are typically unsecured and are concentrated within a few customers in the pharmaceutical industry and government sector. Accordingly, the Company may be exposed to credit risk generally associated with pharmaceutical companies and government funded entities. The Company has not historically experienced any significant losses due to concentration of credit risk.

~~Accounts receivable consists of the following (in thousands):~~

   September 30,
2017    December 31,
2016
Vifor (International) Ltd.⁽¹⁾
   $ 530    $ 30,000
U.S. Food and Drug Administration
   —      205




   $ 530    $ 30,205

~~(1)~~

As of September 30, 2017, accounts receivable excluded the remaining $30.0 million cash commitments due from Vifor, $20.0 million of which is due in December 2017 in connection with the CCX140 Agreement and $10.0 million of which is due in February 2018 in connection with the Avacopan Amendment.

As of December 31, 2016, accounts receivable excluded the $20.0 million cash commitment which is due from Vifor in December 2017 in connection with the CCX140 Agreement. See Note 7, “Collaboration and License Agreements” for a detailed discussion.

Net Loss Per Share

Basic net loss per common share is computed by dividing net loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration for common stock equivalents.

Diluted net loss per share is computed by dividing net loss attributable to common stockholders by the sum of the weighted-average number of common shares outstanding and dilutive common stock equivalent shares outstanding for the period. The Company’s potentially dilutive common stock equivalent shares, which include incremental common shares issuable upon (i) the exercise of outstanding stock options and warrants, (ii) vesting of restricted stock units (RSUs) and restricted stock awards (RSAs), and (iii) the purchase from contributions to the amended and restated 2012 Employee Stock Purchase Plan (the Restated ESPP), (calculated based on the treasury stock method), are only included in the calculation of diluted net loss per share when their effect is dilutive.

For the ~~nine~~three months ended ~~September 30, 2017~~March 31, 2022 and ~~2016,~~2021, the following potentially dilutive securities were excluded from the calculation of diluted net loss per share due to their anti-dilutive ~~effect:~~effect (in thousands):


	Nine Months Ended				Three Months Ended
	September 30,				March 31,
	2017		2016		2022		2021
Options to purchase common stock, including purchases from contributions to ESPP		10,131,143		9,363,696		7,123		7,483
Restricted stock units		456,346		340,344		560		425
Restricted stock awards		95,866		—		15		14
Warrants to purchase common stock		150,000		150,000
Warrant to purchase common stock(1)						0		150
						7,698		8,072
		10,833,355		9,854,040

(1)

In 2012, the Company issued a warrant with a ten-year term to purchase 150,000 shares of its common stock at an exercise price of $20.00 per share. The warrant was exercised in January 2022.

Product Sales, net

The Company sells TAVNEOS to a limited number of specialty pharmacies and a specialty distributor. These customers subsequently dispense TAVNEOS directly to patients or resell it to hospitals and certain pharmacies. The Company recognizes product sales when the customer obtains control of the Company’s product, which occurs typically upon delivery to the customer. Product sales to these customers are recorded net of reserves established for distributor service fees and prompt payment discounts as stated in agreements, estimates for product returns, government rebates, chargebacks and the Company’s co-pay assistance program for patients. The Company estimates these reserves using the expected value approach. The Company believes its estimated reserves require significant judgment and may adjust these estimates as it accumulates historical data and assesses other quantitative and qualitative factors. Differences from actual results and changes to these estimates will be reported in the period that the differences become known.

Cost of Sales

Cost of sales for product sales and product supply consists primarily of direct and indirect costs related to the manufacturing of TAVNEOS products sold, including third-party manufacturing costs, packaging services, freight, storage costs, allocation of overhead costs of employees involved with production and net sales-based royalties expense. The Company began capitalizing costs related to inventory in October 2021 upon the U.S. Food and Drug Administration (FDA) approval of TAVNEOS. Manufacturing costs associated with campaigns initiated prior to FDA approval were recorded as research and development expense. Accordingly, cost of sales in the near term will likely be lower than in later periods given the sales of pre-approval inventory will carry little to no manufacturing costs given such costs were previously expensed to research and development expense.

Inventory

The Company values its inventories at the lower-of-cost or net realizable value on a first-in, first-out (FIFO) basis. Inventories include the cost for raw materials, third party contract manufacturing and packaging services, and indirect personnel and overhead associated with production. The Company performs an assessment of the recoverability of inventory during each reporting period, and writes down any excess and obsolete inventories to their net realizable value in the period in which the impairment is first identified. If they occur, such impairment charges are recorded as a component of cost of sales in the consolidated statements of operations. The Company capitalizes inventory costs associated with products when future commercialization is considered probable and the future economic benefit is expected to be realized, which is typically when regulatory approval is obtained for a drug candidate. As such, the Company begins capitalizing costs as inventory when a drug candidate receives regulatory approval. Prior to regulatory approval, the Company recorded inventory costs related to drug candidates as research and development expense.

Comprehensive Loss

Comprehensive loss comprises net loss and other comprehensive ~~income (loss).~~loss. For the periods presented, other comprehensive ~~income (loss)~~loss consists of unrealized ~~gains and~~ losseson the Company’savailable-for-sale securities. For the three ~~and nine~~ months ended ~~September 30, 2017~~March 31, 2022 and ~~2016,~~2021, there were no 0sales of investments and therefore there were no reclassifications ~~from accumulated other~~of comprehensive loss ~~to net loss.~~.

Recent Accounting Pronouncements

~~In May 2014, the Financial Accounting Standard Board (FASB) issued Accounting Standards Update (ASU)No. 2014-09,~~ Revenue from Contracts with Customers. The new standard’s core principle is that a reporting entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. On July 9, 2015, the FASB voted to delay the effective date of the new standard by one year. The standard would become effective for the Company beginning in the first quarter of 2018. Early application would be permitted in 2017. Entities would have the option of using either a full retrospective or a modified retrospective approach to adopt this new guidance. In 2016, the FASB updated the guidance for reporting revenue gross versus net to improve the implementation guidance on principal versus agent considerations, and for identifying performance obligations and the accounting of intellectual property licenses. In addition, the FASB introduced practical expedients and made narrow scope improvements to the new accounting guidance.

The Company currently plans to adopt the accounting standard update on January 1, 2018, using the modified retrospective approach. The cumulative effect of adopting the accounting standard update will be recorded to the Company’s accumulated deficit on January 1, 2018. The Company is currently analyzing its collaboration agreements to determine the differences in the accounting treatment under ASU~~No. 2014-09~~ ~~compared to the current accounting treatment. During 2016, the Company entered into two license and collaboration agreements.~~ The Company has ~~primarily derived its revenues from license~~reviewed recent accounting pronouncements and ~~collaboration agreements.~~ concluded they are either not applicable to the business or that no material effect is expected on the consolidated financial statements as a result of future adoption.

Cash Equivalents, Restricted Cash and Investments

Cash, Cash Equivalents and Restricted Cash

The ~~consideration~~following table provides a reconciliation of cash, cash equivalents and restricted cash shown in the Condensed Consolidated Statements of Cash Flows (in thousands):


	March 31,		December 31,
	2022		2021
Cash and cash equivalents	$	40,577	$	49,978
Restricted cash included in Other assets		1,080		1,080
Total cash, cash equivalents and restricted cash	$	41,657	$	51,058

Restricted cash as of March 31, 2022 and December 31, 2021 was held as collateral for stand-by letters of credit issued by the Company ~~is eligible~~ to receive under these agreements includes upfront payments, research and development funding, milestone payments, and royalties. Each license and collaboration agreement is unique and will need to be assessed separately underits landlord in connection with the five-step process under the new standard. The new revenue recognition standard differs from the current accounting standard in many respects, such as in the accounting for variable consideration and the measurement of progress toward completion of performance obligations. While the Company has not completed its ongoing assessmentlease of the ~~impact of adoption, the adoption of ASUNo. 2014-09~~ ~~may have a material effect~~Company’s facility in San Carlos, California. See “Note 7. Commitments” for additional information on ~~its financial statements.~~this lease.

~~In February 2016, the FASB issued ASUNo. 2016-12,~~ ~~Leases (Topic 842). The new standard requires all lessees recognize the assets~~Cash Equivalents and liabilities that arise from leases on the balance sheet and disclose qualitative and quantitative information about its leasing arrangements. The new standard will be effective for the Company on January 1, 2019. The Company is currently evaluating the impact of the adoption of this standard on its financial statements. However, the Company expects the adoption of this accounting guidance to result in an increase in lease assets and a corresponding increase in lease liabilities on its balance sheets.Investments

~~In March 2016, the FASB issued ASUNo. 2016-09,~~ Improvements to Employee Share-Based Payment Accounting, which is intended to simplify several aspects of the accounting for share-based payment award transactions, including the income tax consequences, an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows. Under this guidance, on a prospective basis, companies will no longer record excess tax benefits and tax deficiencies from stock option exercises in additional~~paid-in~~ capital (APIC). Instead, they will record all excess tax benefits and tax deficiencies as income tax expense or benefit in the statement of operations. In addition, the guidance eliminates the requirement that excess tax benefits be realized before companies can recognize them. The ASU requires a cumulative-effect adjustment for previously unrecognized excess tax benefits in opening retained earnings in the annual period of adoption. The Company adopted ASU~~No. 2016-09~~ on January 1, 2017. Upon adoption, the Company recognized the excess tax benefit balance of $2.1 million as of January 1, 2017 as a deferred tax asset with a corresponding increase to the Company’s deferred tax asset valuation allowance. Additionally, as provided for under this new guidance, the Company elected to continue to estimate forfeitures. The adoption of this aspect of the guidance did not have a material impact on the Company’s financial statements.

3.	~~Cash Equivalents and Investments~~

The amortized cost and fair value of cash equivalents and investments at ~~September 30, 2017~~March 31, 2022 and December 31, ~~2016~~2021 were as follows (in thousands):


	September 30, 2017									March 31, 2022
	Amortized		Gross Unrealized					Fair		Amortized		Gross Unrealized					Fair
	Cost		Gains		Losses			Value		Cost		Gains		Losses			Value
Money market fund	$	17,098	$	—	$	—		$	17,098	$	37,331	$	0	$	0		$	37,331
U.S. treasury securities		46,687		—		(50	)		46,637		115,369		1		(708	)		114,662
Non-U.S. government securities											16,743		0		(180	)		16,563
Commercial paper		32,066		—		—			32,066		73,868		0		0			73,868
Asset-backed securities											32,400		0		(212	)		32,188
Corporate debt securities		28,122		—		(18	)		28,104		94,734		14		(770	)		93,978

Totalavailable-for-sale securities	$	123,973	$	—	$	(68	)	$	123,905	$	370,445	$	15	$	(1,870	)	$	368,590

Classified as:
Cash equivalents								$	17,098								$	37,331
Short-term investments									102,603									300,024
Long-term investments									4,204									31,235

Totalavailable-for-sale securities								$	123,905								$	368,590

   December 31, 2016
   Amortized    Gross Unrealized    Fair
   Cost    Gains    Losses    Value
Money market fund
   $ 9,746    $ —      $ —      $ 9,746
U.S. treasury securities
   49,693    1    (22 )    49,672
Commercial paper
   16,183    —      —      16,183
Corporate debt securities
   45,911    —      (29 )    45,882








Totalavailable-for-sale securities
   $ 121,533    $ 1    $ (51 )    $ 121,483








Classified as:

Cash equivalents
            $ 9,746
Short-term investments
            105,740
Long-term investments
            5,997


Totalavailable-for-sale securities
            $ 121,483


	December 31, 2021
	Amortized		Gross Unrealized					Fair
	Cost		Gains		Losses			Value
Money market fund	$	41,960	$	0	$	0		$	41,960
U.S. treasury securities		40,397		0		(160	)		40,237
Government-sponsored agencies		16,821		0		(56	)		16,765
Commercial paper		111,868		0		0			111,868
Asset-backed securities		39,988		0		(62	)		39,926
Corporate debt securities		103,779		7		(212	)		103,574
Total available-for-sale securities	$	354,813	$	7	$	(490	)	$	354,330

Classified as:
Cash equivalents								$	41,960
Short-term investments									214,514
Long-term investments									97,856
Total available-for-sale securities								$	354,330

Cash equivalents in the tables above exclude cash of ~~$0.9~~$3.2 million and ~~$2.3~~$8.0 million as of ~~September 30, 2017~~March 31, 2022 and December 31, ~~2016,~~2021, respectively. Allavailable-for-sale securities held as of ~~September 30, 2017~~March 31, 2022 had contractual maturities of less than two ~~years.~~ years.There have been no0 significant realized gains or losses onavailable-for-sale securities for the periods presented. ~~No significant~~The Company applies the specific identification method to determine the cost basis of the securities sold. NaNavailable-for-sale securities held as of ~~September 30, 2017~~March 31, 2022 have been in a continuous unrealized loss position for more than 12 months.As of ~~September 30, 2017,~~March 31, 2022, unrealized losses onavailable-for-sale investments are not attributed to credit ~~risk and are~~

~~considered to be temporary.~~risk. The Company believes that it ismore-likely-than-not that investments in an unrealized loss position will be held until maturity or the recovery of the cost basis of the investment. The Company believes ~~it has no other-than-temporary impairments~~that an allowance for credit losses is unnecessary because the unrealized losses on ~~its~~certain of the Company’s marketable securities ~~because it does not intend~~are due to ~~sell these securities and it believes it is not more likely than not that it will be required to sell these securities before the recovery of their amortized cost basis.~~market factors. To date, the Company has not recorded any impairment charges on marketable ~~securities related to other-than-temporary declines in market value.~~securities.

Fair Value Measurements

The Company determines the fair value of financial assets and liabilities using three levels of inputs as follows:

Level 1—Inputs which include quoted prices in active markets for identical assets and liabilities.

Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Recurring Fair Value Measurements

The Company’s financial assets subject to fair value measurements on a recurring basis and the level of inputs used in such measurements ~~are~~were as follows ~~(in thousands)~~ as of ~~September 30, 2017~~March 31, 2022 and December 31, ~~2016:~~2021 (in thousands):


	September 30, 2017
Description	Level 1		Level 2		Level 3		Total
Money market fund	$	17,098	$	—	$	—	$	17,098
U.S. treasury securities		—		46,637		—		46,637
Commercial paper		—		32,066		—		32,066
Corporate debt securities		—		28,104		—		28,104

Total assets	$	17,098	$	106,807	$	—	$	123,905


	December 31, 2016								March 31, 2022
Description	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Money market fund	$	9,746	$	—	$	—	$	9,746	$	37,331	$	0	$	0	$	37,331
U.S. treasury securities		—		49,672		—		49,672		0		114,662		0		114,662
Non-U.S. government securities										0		16,563		0		16,563
Commercial paper		—		16,183		—		16,183		0		73,868		0		73,868
Asset-backed securities										0		32,188		0		32,188
Corporate debt securities		—		45,882		—		45,882		0		93,978		0		93,978

Total assets	$	9,746	$	111,737	$	—	$	121,483

Total available-for-sale securities									$	37,331	$	331,259	$	0	$	368,590


	December 31, 2021
Description	Level 1		Level 2		Level 3		Total
Money market fund	$	41,960	$	0	$	0	$	41,960
U.S. treasury securities		0		40,237		0		40,237
Government-sponsored agencies		0		16,765		0		16,765
Commercial paper		0		111,868		0		111,868
Asset-backed securities		0		39,926		0		39,926
Corporate debt securities		0		103,574		0		103,574
Total available-for-sale securities	$	41,960	$	312,370	$	0	$	354,330

During the ~~nine~~three months ended ~~September 30, 2017,~~March 31, 2022, there were no0 transfers between Level 1 and Level 2 financial assets. When the Company uses observable market prices for identical securities that are traded in less active markets, the Company classifies its marketable debt instruments as Level 2. When observable market prices for identical securities are not available, the Company prices its marketable debt instruments usingnon-binding market consensus prices that are corroborated with observable market data; quoted market prices for similar instruments; or pricing models, such as a discounted cash flow model, with all significant inputs derived from or corroborated with observable market data.Non-binding market consensus prices are based on the proprietary valuation models of pricing providers or brokers. These valuation models incorporate a number of inputs, includingnon-binding and binding broker quotes; observable market prices for identical or similar securities; and the internal assumptions of pricing providers or brokers that use observable market inputs and, to a lesser degree, unobservable market inputs. The Company corroboratesnon-binding market consensus prices with observable market data using statistical models when observable market data exists. The discounted cash flow model uses observable market inputs, such as LIBOR-based yield curves, currency spot and forward rates, and credit ratings.

5. ~~Accrued Liabilities~~
Other Fair Value Measurements

The carrying amount and estimated fair value of financial instruments not recorded at fair value at March 31, 2022 and December 31, 2021 were as follows (in thousands):


	March 31,				December 31,
	2022				2021
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Long-term debt, net (1)	$	23,682	$	25,170	$	23,635	$	25,046

(1)

Carrying amounts of long-term debt were net of unamortized debt discounts of $269 and $316 as of March 31, 2022 and December 31, 2021, respectively.

The fair value of the Company's long-term debt is estimated using the net present value of future debt payments, discounted at an interest rate that is consistent with market interest rates, which is a Level 2 input.

Accrued and Other Current Liabilities

Accrued and other current liabilities consist of the following (in thousands):


	September 30,		December 31,		March 31,		December 31,
	2017		2016		2022		2021
Research and development related	$	5,285	$	5,482	$	11,441	$	11,309
Compensation related		1,990		2,460		4,974		8,350
Consulting and professional services		529		421		2,127		1,348
Current portion of operating lease liability						2,915		2,810
End of term charge on the long-term debt						1,196		1,151
Other		381		282		2,894		1,390
					$	25,547	$	26,358
	$	8,185	$	8,645

Long-term Debt

In December 2017, the Company entered into a Loan and Security Agreement, with Hercules Capital, Inc. (Hercules), pursuant to which term loans in an aggregate principal amount of up to $50.0 million (as amended, the Credit Facility) were available to the Company. As of March 31, 2022, the Company had borrowed $20.0 million under the Credit Facility, with an interest rate of 8.05% per annum and the remaining available amount had expired. Advances under the Credit Facility bear an interest rate equal to the greater of either (i) 8.05% plus the prime rate as reported from time to time in The Wall Street Journal (the Prime Rate) minus 4.75%, and (ii) 8.05%. The Company made interest-only payments through June 2021 and the first principal and interest payment on July 1, 2021. The Credit Facility was subsequently amended in July 2021 and December 2021 to extend the interest-only payment period through August 1, 2022, and at which point the Company will then be obligated to repay the principal balance and interest on the advances in equal monthly installments through December 1, 2022. The Company is ~~one~~obligated to pay an end of term charge of $1.3 million in December 2022.

On January 8, 2020, the Company entered into an Amended and Restated Loan and Security Agreement (the Amended Loan Agreement) with Hercules, which amended and restated the agreement between the parties, and pursuant to which an additional term loan in an aggregate principal amount of up to $100.0 million (the Restated Credit Facility) is available to the Company at its discretion in 3 tranches. The first tranche of the Restated Credit Facility of up to $40.0 million was available to the Company through December 15, 2020, of which $20.0 million became available upon submission of the TAVNEOS New Drug Application (NDA) for the treatment of patients with ANCA-associated vasculitis. The second tranche of up to an additional $30.0 million was available to the Company through December 15, 2021 upon NDA approval of TAVNEOS for the treatment of ANCA-associated vasculitis. The third tranche of up to an additional $30.0 million would be available through December 15, 2022, subject to certain conditions.

Under the Restated Credit Facility, the Company borrowed $5.0 million from the first tranche with an interest rate of 8.50% per annum as of March 31, 2022. Advances under the Restated Credit Facility bear an initial interest rate equal to the greater of either (i) 8.50% plus the Prime Rate minus 5.25%, and (ii) 8.50%, which may be reduced upon the Company achieving certain cumulative net TAVNEOS revenue levels. For advances under the Restated Credit Facility, the Company was required to make interest only payments through September 1, 2022 and repay the principal balance and interest on the advances in equal monthly installments through February 1, 2024. However, upon satisfaction of certain conditions, the interest-only payment period and the principal balance repayment period may be extended. With the FDA approval of TAVNEOS in October 2021, the interest-only payment period and the principal balance repayment period was extended through March 1, 2023 and February 1, 2025, respectively. In addition, the Company will pay an end of term charge of 7.15% of the aggregate amount of the advances under the Restated Credit Facility in February 2025.

The Company paid a commitment fee of 1% of the advances made by Hercules, with a minimum charge of $162,500 for the Credit Facility and a minimum charge of $520,000 for the Restated Credit Facility. Also, the Company reimbursed Hercules for costs incurred related to the Restated Credit Facility. These charges were recorded as discounts to the carrying value of the loan and are amortized over the term of the loan using the effective interest method.

In addition, the Company may prepay advances under the Restated Credit Facility, in whole or in part, at any time, subject to a prepayment charge that ranges from 1.0% to 2.0%, depending on the timing of the prepayment. The Restated Credit Facility is secured by substantially all of the Company’s ~~principal stockholders.~~ assets, excluding intellectual property. The Restated Credit Facility also includes customary loan covenants, with which the Company was in compliance for all periods presented.

In connection with the Restated Credit Facility, the Company also entered into a Right to Invest Agreement with Hercules, pursuant to which Hercules shall have the right to participate, in an amount up to $3.0 million, in any subsequent equity financing broadly marketed to multiple investors in an amount greater than $30.0 million. Hercules purchased $1.0 million of the Company’s common stock during the June 2020 equity follow-on offering.

As of March 31, 2022, the Company had outstanding borrowings under the Amended Loan Agreement of $23.7 million, net of discounts of $0.3 million. Future minimum principal payments, which exclude the end of term charge, as of March 31, 2022 are as follows (in thousands):


	Amounts
Year ending December 31:
Remaining of fiscal year 2022	$	18,951
2023		1,979
2024		2,566
2025		455
Total minimum payments		23,951
Less: amount representing debt discount		(269	)
Present value of remaining debt payments		23,682
Less: current portion		(19,128	)
Non-current portion	$	4,554

Commitments

Purchase Obligations

The Company has entered into noncancelable agreements with vendors to secure raw materials and contract manufacturing organizations (CMOs) to manufacture its commercial supply of TAVNEOS. Some of these agreements contain binding commitment provisions for orders placed under purchase orders and forecasted quantities within a specified time frame. As of March 31, 2022, the Company’s noncancelable contractual obligations under these terms of the agreements are approximately $9.7million. The Company enters into contracts in the normal course of business with CROs for clinical trials and with vendors for preclinical research studies, research supplies and other services and products for operating purposes. These contracts generally provide for termination on notice, and therefore are cancelable contracts and not included in the purchase obligations above.

Operating Leases

In May 2004, the Company entered into a noncancelable operating lease for its previous office and primary research facility located in Mountain View, California. In May 2019, the Company entered into a third amendment to the lease agreement for the same facility to extend the term of the lease through April 2021. In July 2020, the Company entered into a letter agreement to further extend the lease term through June 2021.

In July 2019, the Company entered into a ten-year operating lease for a 96,463 square foot facility in San Carlos, California to replace its previous headquarters located in Mountain View, California. Upon execution of the lease agreement, the Company provided the landlord an approximately $1.1 million security deposit in the form of a letter of credit. The lease commenced in June 2020and will expire in February 2031 subject to an option to extend the lease for five years. The lease extension option was not considered in the right-of-use asset or the lease liability as the Company did not consider it reasonably certain the option would be exercised. Monthly rent payments began in March 2021. Following a six-month period of discounted rent, the Company is obligated to pay an initial ~~public offering (IPO)~~annual base rent at a rate of approximately $6.5 million, which is subject to scheduled 3% annual increases, plus certain operating expenses. The Company moved its headquarters to this new facility in ~~February 2012, Bio-Techne~~April 2021.

The Company was provided a tenant improvement allowance of $15.4 million plus an additional allowance of $4.8 million for the same. The additional allowance is repaid by the Company as additional rent in equal monthly payments at a rate of 7% per annum through the initial term of the lease. As of March 31, 2022, the Company received total tenant improvement allowance of $20.2 million. The Company has the right to sublease the facility, subject to landlord consent.

The balance sheet classification of the Company’s operating lease assets and liabilities was as follows (in thousands):


	March 31,		December 31,
	2022		2021
Balance Sheet
Assets:
Operating lease right-of-use assets	$	24,592	$	24,806
Liabilities:
Operating lease liabilities:
Accrued and other current liabilities (1)	$	2,915	$	2,810
Non-current lease liabilities		46,062		46,830

(1)

Includes current portion of operating lease liabilities.

The component of lease costs, which was included in operating expenses in the Company’s Condensed Consolidated Statements of Operations, was as follows (in thousands):


	Three Months Ended March 31,
	2022		2021
Operating lease cost	$	1,375	$	1,742

During the three months ended March 31, 2022 and 2021, cash paid for amounts included in the measurement of lease liabilities was $2.0 million and $0.7 million, respectively, excluding the $0 and $5.9million tenant improvement allowance received in 2022 and 2021, respectively. These amounts were included in net cash used in operating activities in the Company’s Condensed Consolidated Statements of Cash Flows.

Future minimum lease payments under all noncancelable operating leases as of March 31, 2022 are as follows (in thousands):


	Operating leases
Year ending December 31:
Remaining of fiscal year 2022	$	5,525
2023		7,535
2024		7,741
2025		7,952
2026		8,170
Thereafter		36,517
Total minimum payments		73,440
Less: interest		(24,463	)
Present value of lease liabilities	$	48,977

As of March 31, 2022, the remaining lease term was 8.9 years and the operating discount rate used to determine the operating lease liability was 9.5%.

Legal Proceedings

The Company is involved in a ~~warrant with~~consolidated securities class action (Homyk v. ChemoCentryx, Inc., 4:21-cv-03343-JST (N.D. Cal.)) and a~~ten-year~~ ~~term~~ shareholder derivative action (Napoli v. Schall, 3:22-cv-00499 (N.D. Cal)), as discussed in the Legal Proceedings section within this Quarterly Report on Form 10-Q. The shareholder derivative action is stayed pending entry of judgment in the consolidated securities class action. Given the early stage of these cases, the Company is unable to ~~purchase 150,000~~estimate a range of potential loss, if any.

Related-Party Transactions

Vifor

Vifor held 5,194,085 shares of the Company’s common stock ~~at an exercise price per share equal to $20.00 per share, or 200% of the IPO price of its common stock, which was outstanding~~ as of ~~September 30, 2017.~~March 31, 2022. The Company ~~had an~~has collaboration agreements with Vifor: the Avacopan Agreements and the CCX140 Agreements (each as described below). See “Note 2. Summary of Significant Accounting Policies – Concentration of Credit Risk” for additional information on accounts ~~payable~~receivable balance due ~~to Bio-Techne for the purchases of research materials of approximately $1,000 and $25,000 as of September 30, 2017 and December 31, 2016, respectively.~~from Vifor.

Avacopan Agreements

7.	~~Collaboration and License Agreements~~

In May 2016, the Company entered into an exclusive collaboration and license agreement with Vifor ~~(International) Ltd. (Vifor)~~ pursuant to which the Company granted Vifor exclusive rights to commercialize avacopan in Europe and certain other markets (the Avacopan Agreement). Avacopan is the Company’s lead drug candidate for the treatment of patients with ~~anti-neutrophil cytoplasmic auto-antibody associated~~ANCA-associated vasculitis and other rare diseases. The Avacopan Agreement also provided Vifor with an exclusive option to negotiate during 2016 a worldwide license agreement for one of the Company’s other drug candidates, CCX140, an orally-administered inhibitor of the chemokine receptor known as CCR2. In connection with the Avacopan Agreement, the Company received a non-refundable upfront payment of $85.0 million, comprising $60.0 million in cash and $25.0 million in the form of an equity investment to purchase 3,333,333 shares of the Company’s common stock at a price of $7.50 per share.

In February 2017, Vifor and the Company expanded the Vifor territories under the Avacopan Agreement to include all markets outside the United States and China (the Avacopan Amendment). In connection with this February 2017 amendment, the Company received a $20.0 million upfront payment for the expanded rights. In June 2018, Vifor and the Company further expanded the Vifor territories under the Avacopan Agreement to provide Vifor with exclusive commercialization rights in China (the Avacopan Letter Agreement, and together with the Avacopan Agreement and the Avacopan Amendment, the Avacopan Agreements). The Company retains control of ongoing and future development of avacopan (other than country-specific development in the licensed territories) and all commercialization rights to avacopan in the United ~~States~~States. In consideration for the Avacopan Letter Agreement, the Company received a $5.0 million payment for the expanded rights. In December 2017, the Company achieved a $50.0 million regulatory milestone when the European Medicines Agency (EMA) validated the Company’s conditional marketing authorization (CMA) application for avacopan for the treatment of ANCA-associated vasculitis.

In February 2021, the Company achieved a $10.0 million regulatory milestone when the Japanese NDA (JNDA) for TAVNEOS in the treatment of ANCA-associated vasculitis was filed with the Japanese Pharmaceuticals and ~~China.~~ Medical Device Agency (PMDA) by Vifor, through its sublicensee Kissei Pharmaceutical, Co., Ltd. (Kissei). In September 2021, the Japanese Ministry of Health, Labor and Welfare (MHLW) approved the JNDA for TAVNEOS for the treatment of patients with microscopic polyangiitis (MPA) and granulomatosis with polyangiitis (GPA), the two main forms of ANCA-associated vasculitis. As a result, the Company achieved a $20.0 million regulatory milestone. In November 2021, the EMA Committee for Medicinal Products for Human Use (CHMP) adopted a positive opinion recommending marketing authorization for the Company’s TAVNEOS.

In January 2022, the European Commission approved TAVNEOS in combination with a rituximab or cyclophosphamide regimen for the treatment of adult patients with severe active MPA or GPA. Accordingly, the Company achieved a $45.0 million regulatory milestone which the Company received in February 2022. Upon further achievement of certain regulatory and commercial milestones with TAVNEOS, the Company will receive additional payments of up to $385.0 million under the Avacopan Agreements. In addition, the Company will receive royalties, with rates ranging from the low teens to the mid-twenties, on future potential net sales of TAVNEOS by Vifor in the licensed territories.

The Company identified the following material promises under the Avacopan ~~Agreement also provided Vifor with~~Agreements: (1) the license related to avacopan; (2) the development and regulatory services for the submission of the marketing authorization application (MAA); and (3) an exclusive option to negotiate ~~during 2016~~ a worldwide license agreement for ~~one~~CCX140, which expired in 2016. The Company considered that the license has standalone functionality and is capable of being distinct. However, the Company determined that the license is not distinct from the development and regulatory services within the context of the ~~Company’s other drug candidates, CCX140, an orally administered inhibitor of~~agreement because Vifor is dependent on the ~~chemokine receptor known as CCR2.~~

~~In connection~~Company to execute the development and regulatory activities in order for Vifor to benefit from the license. As such, the license is combined with the development and regulatory services into a single performance obligation. The exclusive option related to CCX140 is a separate performance obligation and the Company determined that its transaction price is not material. As such, the transaction price under this arrangement is allocated to the license and the development and regulatory services.

As of March 31, 2022, the transaction price of $228.0 million comprised the following:

•

$78.0 million upfront payment under the May 2016 Avacopan Agreement. Of the total $85.0 million upfront payment received under the May 2016 Avacopan Agreement, ~~the Company received anon-refundable~~ ~~upfront payment of $85.0~~$7.0 million ~~comprising $60.0 million in cash and $25.0 million in the form of an equity investment~~was allocated to ~~purchase 3,333,333 shares of the Company’s common stock at a price of $7.50 per share. The $85.0 million upfront consideration was initially allocated as of June 30, 2016 as follows:~~

~~$7.0 million for~~ the issuance of 3,333,333 shares of the Company’s common stock valued at ~~$2.10~~$2.10 per share, the closing stock price on the effective date of the agreement, May 9, 2016.

The remaining $~~12.5~~78.0 million ~~which~~ was ~~creditable against an~~allocated to the transaction price under this arrangement;

•

$20.0 million upfront ~~fee payable~~payment under the February 2017 Avacopan Amendment;

•

$50.0 million regulatory milestone payment achieved upon the validation of the Company’s CMA application by the EMA, for avacopan for the treatment of ANCA-associated vasculitis in December 2017;

•

$30.0 million regulatory milestone payments achieved upon the acceptance and the approval of the JNDA for TAVNEOS in the treatment of ANCA-associated vasculitis filed by Vifor, ~~should~~through its Japanese sublicensee Kissei with the ~~parties enter into~~PMDA in 2021;

•

$45.0million regulatory milestone payment achieved upon the European Commission approving TAVNEOS in combination with a ~~worldwide license agreement~~rituximab or cyclophosphamide regimen for ~~CCX140. The amount creditable decreased ratably into~~ the ~~fourth quarter~~treatment of ~~2016. In October 2016, the amount creditable expired~~adult patients with severe active MPA or GPA in 2022; and ~~was reclassified to the amortizable portion of deferred revenue as discussed below.~~

~~The remaining~~•

$5.0 million non-refundable upfront ~~consideration of $65.5 million will be recognized over the estimated period of performance~~payment under the Avacopan ~~Agreement,~~Letter Agreement.

The Company will re-evaluate the transaction price in each reporting period and as uncertain events are resolved or other changes in circumstances occur.

The Company determined that the combined performance obligation will be performed over the duration of the contract, which ~~approximates 4.2 years, ending in June 2020. The deliverables under~~began on the ~~Avacopan Agreement consist~~effective date of ~~intellectual property licenses,~~May 9, 2016 and ends upon completion of development and regulatory ~~services for the submission of the Marketing Authorization Application (MAA).~~services. The Company ~~considered~~uses a

cost-based input method to measure proportional performance and to calculate the ~~provisions~~corresponding amount of revenue to recognize. The Company believes this is the best measure of progress because other measures do not reflect how the Company transfers its performance obligation to Vifor. In applying the cost-based input method of revenue recognition, multiple-element arrangement guidance and concluded that the license and the development and regulatory activities for the submission of the MAA do not have stand-alone value because the rights conveyed to do not permit Vifor to perform all efforts necessary to use the Company’s technology to bring the compound through development and, upon regulatory approval, commercialization of the compound. Accordingly, the Company measures actual costs incurred relative to budgeted costs to fulfill the combined ~~these deliverables and allocated the remaining upfront consideration~~performance obligation. These costs consist primarily of ~~$65.5 million into~~third-party contract costs. Revenue is recognized based on actual costs incurred as a ~~single unit~~percentage of ~~accounting.~~

Following the October 2016 expiration of the $12.5 million potentially creditable towards a CCX140 license agreement, such amount was reclassified to the amortizable portion of deferred revenue, which continues to be recognized over the estimated period of performance under the Avacopan Agreement ending in June 2020.

~~In February 2017, Vifor and~~total budgeted costs as the Company expanded the Vifor territories under the Avacopan Agreement to include all markets outside the United States and China (the Avacopan Amendment). The Company retains control of ongoing and future development of avacopan (other than country-specific development in the licensed territories), and all commercialization rights to avacopan in the United States and China. In connection with this arrangement, the Company received a $20.0 million upfront cash commitment for the expanded rights, $10.0 million of which was received in February 2017. The remaining $10.0 million is due in February 2018 and is not reflected in accounts receivable as of September 30, 2017. The February 2017 Avacopan Amendment and the original May 2016 Avacopan Agreement are accounted for as a combined agreement. The February 2017 Avacopan Amendment did not represent a material modification given among other factors, there were no changes to the Company’s deliverables under the arrangement. As such, the additional upfront commitment of $20.0 million under the Avacopan Amendment will be recognized over the remaining estimated period ofcompletes its performance ~~ending in June 2020.~~ obligations.

For the three ~~and nine~~ months ended ~~September 30, 2017,~~March 31, 2022, the Company recognized ~~$6.2~~$0.1 million ~~and $18.2 million, respectively,~~ of collaboration and license revenue under the Avacopan Agreements, as compared to $9.9 million during the same period in 2021.

Avacopan Commercial Supply Agreement

In October 2020, the Company entered into a Manufacturing and Supply Agreement ~~and~~with Vifor (the Avacopan Commercial Supply Agreement). Under the Avacopan ~~Amendment, compared~~Commercial Supply Agreement, the Company supplies and sells TAVNEOS to ~~$4.1 million~~Vifor and ~~$6.8 million~~its sublicensees for commercial use outside of the United States. Vifor will purchase TAVNEOS at a certain percentage mark up to the Company’s cost of goods, in accordance with the Avacopan Agreements. Vifor’s purchase of TAVNEOS is subject to certain binding forecast periods. The Avacopan Commercial Supply Agreement will expire upon the termination of the Avacopan Agreements or under certain circumstances as specified in the ~~same periods ended September 30, 2016. Upon achievement of certain regulatory and commercial milestones~~Avacopan Commercial Supply Agreement. In connection with ~~avacopan,~~the Avacopan Commercial Supply Agreement, the Company ~~will receive additional payments~~also entered into a letter agreement with Vifor, pursuant to which the $6.2 million previously received from Vifor under the CCX140 Agreement (discussed below) is creditable to Vifor’s purchase of ~~up to $510.0 million~~TAVNEOS. For the three months ended March 31, 2022 and 2021, no product supply revenue was recognized under the Avacopan ~~Agreement. In addition, the Company will receive royalties, with rates ranging from the low teens to themid-twenties,~~ ~~on future potential net sales of avacopan by Vifor in the licensed territories.~~Commercial Supply Agreement.

CCX140 Agreements

In December 2016, the Company entered into a second collaboration and license agreement with Vifor pursuant to which the Company granted Vifor exclusive rights to commercialize CCX140 (the CCX140 Agreement) in markets outside the ~~U.S.~~United States and ~~China,.~~China. CCX140 is an orally-administered inhibitor of the chemokine receptor known as CCR2. The Company retains marketing rights in the ~~U.S.~~United States and China, while Vifor has commercialization rights in the rest of the world. Pursuant to the CCX140 Agreement, the Company ~~will be~~is responsible for the clinical development of CCX140 in rare renal diseases and ~~will be~~is reimbursed for Vifor’s equal share of such development cost. Under the terms of the CCX140 Agreement, the Company received a non-refundable upfront payment of $50.0 million in 2017.

In June 2018, the Company and Vifor entered into a letter agreement to expand Vifor’s rights to include the right to exclusively commercialize CCX140 in China (the CCX140 Letter Agreement). In connection with the CCX140 Letter Agreement, the Company received a non-refundable payment of $5.0 million. The Company and Vifor also entered into an amendment to the CCX140 Agreement (the CCX140 Amendment, and together with the CCX140 Agreement and the CCX140 Letter Agreement, the CCX140 Agreements) to clarify the timing of certain payments with respect to development funding of the CCX140 program by Vifor, and the Company received a non-refundable payment of $11.5 million. The Company retains control of ongoing and future development of CCX140 (other than country-specific development in the licensed territories), and all commercialization rights to CCX140 in the United States.

The Company identified the following material promises under the CCX140 Agreements: (1) the license related to CCX140; and (2) the development and regulatory services for the submission of the MAA. The Company considered that the license has standalone functionality and is capable of being distinct. However, the Company determined that the license is not distinct from the development and regulatory services within the context of the agreement because Vifor is dependent on the Company to execute the development and regulatory activities in order for Vifor to benefit from the license. As such, the license is combined with the development and regulatory services into a single performance obligation.

As of March 31, 2022, the transaction price of $66.5 million comprised the following:

•

$50.0 million upfront payment under the CCX140 Agreement;

•

$11.5 million of CCX140 development funding by Vifor; and

•

$5.0 million non-refundable upfront payment under the CCX140 Letter Agreement.

The Company determined that the combined performance obligation will be performed over the duration of the contract, which began on the effective date of December 22, 2016 and ends upon completion of development services. The Company uses a cost-based input method to measure proportional performance and to calculate the corresponding amount of revenue to recognize. The

Company believes this is the best measure of progress because other measures do not reflect how the Company transfers its performance obligation to Vifor. In applying the cost-based input method of revenue recognition, the Company measures actual costs incurred relative to budgeted costs to fulfill the combined performance obligation. These costs consist primarily of third-party contract costs. Revenue is recognized based on actual costs incurred as a percentage of total budgeted costs as the Company completes its performance obligations.

In May 2020, the Company announced topline data from a 46 patient Phase II dose-ranging trial in the orphan kidney disorder, primary Focal Segmental Glomerulosclerosis (FSGS), called the LUMINA-1 trial. In the study, CCX140 did not demonstrate a meaningful reduction in proteinuria relative to the control group after 12 weeks of blinded treatment. As such, CCX140 will not be further developed in FSGS. As a result, the Company reduced the total anticipated FSGS budgeted costs and the corresponding transaction price related to development funding under the CCX140 Agreement by $47.2 million and recognized $46.7 million of contract revenue during the three months ended June 30, 2020. In addition, $6.2 million of deferred revenue previously received from Vifor under the CCX140 Agreements is creditable against Vifor’s purchases of TAVNEOS under the Avacopan Commercial Supply Agreement. Vifor retains an option to solely develop and commercialize CCX140 in more prevalent forms of chronic kidney disease (CKD). Should Vifor later exercise the CKD option, ~~ChemoCentryx~~the Company would receiveco-promotion rights infor CKD in the ~~U.S.~~United States.

~~Under the terms of the CCX140 Agreement, the Company received anon-refundable~~ upfront commitment of $50.0 million, $30.0 million of which was received in January 2017. The remaining $20.0 million, which is due on the first anniversary of the CCX140 Agreement, was not reflected in accounts receivable as of September 30, 2017. The upfront commitment of $50.0 million will be recognized over the estimated period of performance under the CCX140 Agreement, which approximates 5.0 years, ending in December 2021. The deliverables under the CCX140 Agreement consist of intellectual property licenses, development and regulatory services for the submission of the MAA. The Company considered the provisions of the revenue recognition multiple-element arrangement guidance and concluded that the license and the development and regulatory activities for the submission of the MAA do not have stand-alone value because the rights conveyed to do not permit Vifor to perform all efforts necessary to use the Company’s technology to bring the compound through development and, upon regulatory approval, commercialization of the compound. Accordingly, the Company combined these deliverables and allocated the upfront consideration of $50.0 million into a single unit of accounting.

~~For the three and nine months ended September 30, 2017, the Company~~fully recognized ~~$2.8 million and $8.0 million of~~ collaboration and license revenue under the CCX140 ~~Agreement, respectively,~~Agreements in 2021. Accordingly, 0 revenue was recognized during the three months ended March 31, 2022 compared to $0.3 million during the three months ended March 31, 2021.

The following table presents the contract assets and liabilities for all of ~~which $2.5 million and $7.5 million were associated with~~ the ~~recognition~~Company’s revenue contracts as of upfront commitment. The remaining amounts represented collaboration revenue derived from funding of CCX140 development services from Vifor. Upon achievement of certain regulatory and commercial milestones with CCX140,the following dates (in thousands):


	March 31,			December 31,
	2022			2021
Contract asset:
Accounts receivable	$	29		$	43
Contract liability:
Deferred revenue	$	(80,803	)	$	(35,765	)

During the three months ended March 31, 2022, the Company ~~will receive additional payments~~recognized the following revenue as a result of ~~up to $625.0 million under the CCX140 Agreement. In addition, the Company will receive tiered royalties, with rates ranging from ten to themid-twenties,~~ ~~on net sales of CCX140~~changes in the ~~licensed territories.~~

~~Under the Avacopan Agreement~~contract asset and the CCX140 Agreement, the Company determined that future contingent payments related to regulatory milestones meet the definition of a substantive milestone under the accounting guidance. Accordingly, revenue for the achievement of these milestones will be recognized in the period when the milestone is achieved. The Company will be eligible to receive contingent payments related to commercial milestones based on the performance of Vifor and these payments are not considered to be milestones under the accounting guidance. These contingent commercial milestone payments will be included in the allocation of arrangement consideration if and when achieved, resulting in an accounting treatment similar to the upfront payment. As ofcontract liability balances (in thousands):


	Three Months Ended March 31,
	2022		2021
Revenue recognized in the period from:
Amount included in contract liability at the beginning of the period	$	0	$	10,211
Performance obligations satisfied (or partially satisfied) in previous periods	$	2,254	$	8,443

Government Grant

In September 30, 2017, the Company had not received any milestone payments under the Avacopan Agreement or the CCX140 Agreement. The Company expects to recognize royalty revenue in the period of sale of the related product, based on the underlying contract terms. The Avacopan Agreement and the CCX140 Agreement are accounted for as separate arrangements.

8. ~~Government Grant~~

~~In April 2016,~~2019, the Company was awarded ~~an Orphan Products Development~~a two-year $1.0 million grant byfrom the orphan drug office of the U.S. Food and Drug Administration to support the clinical development of ~~avacopan~~TAVNEOS in patients with the ~~amount of $500,000, which~~rare kidney disease complement 3 glomerulopathy (C3G). The grant was extended for an additional four months in August 2021 and the grant revenue was fully recognized in 2021. Accordingly, 0 revenue was recognized during the three months ended March 31, 2022 compared to $0.1 million in the same period of 2021.As of March 31, 2022 and ~~received~~December 31, 2021,$0and $28,000 was recorded as ~~of September 30, 2017. The term of the grant expired in May 2017.~~ accounts receivable, respectively.

10.

Stockholders’ Equity

Stock Options

During the three ~~and nine~~ months ended September 30, 2017, the Company did not recognize any grant revenue. During the three and nine months ended September 30, 2016, the Company recognized $120,000 and $295,000, respectively, of grant revenue.

9.	~~Equity Incentive Plans~~

~~Stock Options~~

~~During the nine months ended September 30, 2017,~~March 31, 2022, the Company had the following ~~option~~ activities under its equity incentive plans:

   Outstanding Options
   Available for
Grant Shares Weighted Average
Exercise Price    Weighted
Average
Remaining
Contractual
Term
(Years)    Aggregate
Intrinsic Value
(in thousands)
Balance at December 31, 2016
   1,655,524 9,345,515 $ 7.72
Shares authorized
   1,900,000
Granted⁽¹⁾
   (1,914,238 ) 1,634,500 6.95
Exercised⁽²⁾
   40,208 (405,912 ) 5.85
Forfeited and expired⁽³⁾
   489,862 (476,528 ) 6.47



Balance at September 30, 2017
   2,171,356 10,097,575 $ 7.73    6.35    $ 10,544


		Available for Grant			Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Balance at December 31, 2021			5,641,782			6,767,895		$	19.14
	Shares authorized		0			0
	Granted (1)		(1,624,830	)		1,082,730			29.64
	Exercised (2)		0			(604,083	)		10.39
	Forfeited and expired		145,939			(145,939	)		41.27
Outstanding at March 31, 2022			4,162,891			7,100,603		$	21.03		6.22	$	74,672,588
Vested and expected to vest, net of estimated forfeiture at March 31, 2022						6,785,124		$	20.36		6.08	$	74,199,516
Exercisable at March 31, 2022						4,672,389		$	13.93		4.73	$	68,152,545

~~(1)~~

~~The difference between shares granted in the number of shares available for grant and outstanding options represents the RSUs and RSAs granted for the period.~~

~~(2)~~

~~Shares presented as available for grant represents shares repurchased for tax withholding upon vesting of RSUs.~~

~~(3)~~

~~The difference between shares forfeited and expired in the number of shares available for grant and outstanding options represents the RSUs canceled for the period.~~

(1)

The difference between shares granted in the number of shares available for grant and outstanding options represents the RSUs and RSAs granted for the period with a 1.5 share ratio reduction to the reserve shares for each RSU or RSA grant in accordance with the amended and restated 2012 Equity Incentive Award Plan.

(2)

Shares presented as available for grant represents shares repurchased for tax withholding upon vesting of RSUs.

Restricted Stock

During the ~~nine~~three months ended ~~September 30, 2017,~~March 31, 2022, the activity for restricted stock is summarized as follows:

      Weighted Average
      Grant-Date
   Shares    Fair Value
Balance at December 31, 2016
   471,650    $ 4.60
Granted
   279,738    6.72
Vested
   (185,842 )    4.26
Canceled
   (13,334 )    3.57



Unvested at September 30, 2017
   552,212    $ 5.81


	Shares			Weighted Average Grant-Date Fair Value
Balance at December 31, 2021		413,510		$	45.94
Granted		361,400			29.83
Vested		(199,484	)		43.62
Unvested at March 31, 2022		575,426		$	36.63

Stock-based Compensation

Total stock-based compensation expense was ~~$1.9 million and $6.8~~$9.4 million during the three ~~and nine~~ months ended ~~September 30, 2017, respectively,~~March 31, 2022, and ~~$1.8~~$8.1 million ~~and $6.5 million, respectively,~~ during the same ~~periods~~period ended ~~September 30, 2016.~~March 31, 2021. As of ~~September 30, 2017, $9.6~~March 31, 2022,$50.0 million, ~~$2.0~~$15.2 million and ~~$23,000~~ $0.1 millionof total unrecognized compensation expenses associated with outstanding employee stock options, unvested restricted stock, and the ESPP, net of estimated forfeitures, respectively, were expected to be recognized over a weighted-average period of ~~2.52, 1.72,~~ 2.9, 2.8and ~~0.12~~0.1 years, respectively.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis should be read in conjunction with our financial statements and accompanying notes included in this Quarterly Report on Form 10-Q and the financial statements and accompanying notes thereto and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the fiscal year ended December 31, ~~2016,~~2021, filed with the Securities and Exchange Commission, or SEC, on March ~~14, 2017.~~1, 2022.

This Quarterly Report on Form 10-Q contains forward-looking statements that involve risks and uncertainties. All statements other than statements of historical facts contained in this Quarterly Report on Form 10-Q are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “could,” “will,” “would,” “should,” “expect,” “plan,” “aim,” “anticipate,” “believe,” “estimate,” “intend,” “predict,” “seek,” “contemplate,” “potential” or “continue” or the negative of these terms or other comparable terminology. These forward-looking statements include, but are not limited to, statements about:

These statements relate to future events or to our future financial performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Factors that may cause actual results to differ materially from current expectations include, among other things, those included in “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, ~~2016,~~2021, filed with the SEC on March ~~14, 2017.~~1, 2022.

Any forward-looking statement in this Quarterly Report on Form 10-Q reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, industry and future growth. Given these uncertainties, you should not place undue reliance on these forward-looking statements. For all forward-looking statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Except as required by law, we assume no obligation to update or revise these forward-looking statements for any reason, even if new information becomes available in the future.

ChemoCentryx®, the ChemoCentryx logo ~~Traficet™~~ and ~~Traficet-EN™~~ TAVNEOSÒare our trademarks in the United States, the European Community, Australia and Japan. EnabaLink®and RAM® are our trademarks in the United States. Each of the other trademarks, trade names or service marks appearing in this Quarterly Report on Form 10-Q belongs to its respective holder.

Unless the context requires otherwise, in this Quarterly Report on Form 10-Q the terms “ChemoCentryx,” “we,” “us” and “our” refer to ChemoCentryx, Inc., a Delaware corporation, and our ~~subsidiary~~subsidiaries taken as a ~~whole.~~

ChemoCentryx is a fully integrated United States biopharmaceutical company ~~developing~~focused on the development and commercialization of new medications ~~targeted at~~targeting inflammatory disorders, autoimmune diseases and cancer. ~~Each~~We target the chemokine and chemoattractant systems to discover, develop and commercialize orally-administered therapies. In the U.S., we market TAVNEOSÒ (avacopan) as an adjunctive treatment for adult patients with severe active anti-neutrophil cytoplasmic autoantibody-associated vasculitis, or ANCA-associated vasculitis, specifically granulomatosis with polyangiitis, or GPA, and microscopic polyangiitis, or MPA, the two main forms of ~~our drug candidates selectively blocks a specific chemokine or chemoattractant receptors, leaving~~ANCA-associated vasculitis, in combination with standard therapy including glucocorticoids, and not for the ~~rest~~elimination of the immune system intact. Our drug candidates are small molecules, which are orally administered, offering significant quality of life benefits, since patients swallow a capsule or pill instead of having to visit a clinic for an infusion or undergo an injection.glucocorticoid use.

In ~~2016~~October 2021, we ~~executed on our strategy to form an alliance with a partner that could provide upfront commitments~~obtained regulatory approval and milestones to support the clinical development of our leading two drug candidates, avacopan and CCX140, to registration and pay us royalties upon sales in international markets, while we develop our own commercial infrastructure to sell directlylaunched TAVNEOS in the ~~United States.~~

~~To help us manage the wide array of opportunities, we have segmented our pipeline into early stage and late stage compounds.~~

We have chosen to focus initially on kidney disease, particularly on rare indications, where orphan drug candidates tend to enjoy a faster path to market and better reimbursement. Our leading drug candidates address areas of clear unmet need, where the current standard of care, or SOC, is insufficient to halt progression of the disease and/or where today’s treatment options come with serious side effects, such as those which accompany the prolonged use of steroids:

Avacopan (formerly CCX168) is an orally-administered complement inhibitor targeting the C5a receptor, or C5aR, and is being developed for orphan and rare diseases, including 1) anti-neutrophil cytoplasmic auto-antibody associated vasculitis, or AAV, a devastating autoimmune disease that destroys blood vessels and can lead to kidney failure; 2) atypical hemolytic uremic syndrome, or aHUS, a rare, life threatening disease; and 3) complement 3 glomerulopathy, or C3G, a debilitating kidney disease that can lead to kidney failure.

~~Avacopan has been granted orphan drug designation by the~~ U.S. ~~Food and Drug Administration, or FDA,~~ for the treatment of ~~AAV, aHUS and C3G and by~~an orphan disease called ANCA-associated vasculitis, leading to the ~~European Medicines Agency, or EMA,~~recent grant of orphan drug marketing exclusivity for ~~the treatment~~a period of microscopic polyangiitis and granulomatosis with polyangiitis, both forms of AAV, and C3G. Additionally, avacopan has been granted PRIority MEdicines, or PRIME, designation from the EMA, to expedite its clinical development, and to potentially accelerate its marketing authorization.

~~Following completion of two Phase II clinical trials~~seven years discussed further below. TAVNEOS also obtained regulatory approval in patients with AAV, the results of which demonstrated that avacopan was safe, well-tolerated and provided effective steroid-free control of the disease, we launched the Phase III ADVOCATE trial in December 2016. The FDA and the EMA concurred with the design of the study. ADVOCATE is a randomized, double-blind two-arm study that is planned to enroll 300 patients at approximately 200 sites in the United States, Canada, Europe, Australia, and New Zealand. We expect to complete patient enrollment of the Phase III ADVOCATE trial in mid-2018. We recently launched a registration-supporting clinical trial to study avacopanJapan for the treatment of patients with MPA and GPA in 2021. In January 2022, the European Commission approved TAVNEOS in combination with a rituximab or cyclophosphamide regimen for the treatment of adult patients with severe active GPA or MPA. TAVNEOS received marketing authorization in all member states of the EU, as well as in Iceland, Liechtenstein and Norway. Also, in January 2022, the FDA granted a seven-year orphan drug marketing exclusive approval for TAVNEOS which began on October 7, 2021, the date of approval of the NDA. We are required to assure the availability of sufficient quantities of TAVNEOS to meet the needs of patients to maintain exclusivity.

ANCA-associated vasculitis is a group of rare diseases that affect small-to-medium sized blood vessels in the patient’s body. It involves inflammation of the blood vessels, which reduces blood flow and can result in organ damage and failure, with the kidney as the major target, and is often fatal if not treated. While a patient’s genetics and environment are thought to be contributing causes of the disease, the exact cause is currently unknown.

The two most common sub-types of ANCA-associated vasculitis are GPA and MPA. In GPA, small areas of inflammation called “granulomas” develop inside parts of the body. GPA typically involves the kidneys, lungs, ears, nose and throat. If a patient has GPA they may be at risk for serious complications, such as hearing loss, kidney damage, skin scarring, or blood clots. MPA also affects the lungs and kidneys. However, unlike GPA, a patient’s ears, nose and throat are less likely to be affected, and there is no granuloma formation.

We plan to capitalize on TAVNEOS’s potential to address multiple disease areas in the coming years. We consider TAVNEOS to be a ‘Pipeline in a Drug.’ We plan to continue or initiate clinical development in additional rare diseases, including severe hidradenitis suppurativa, or HS, complement 3 glomerulopathy, or C3G, and lupus nephritis, or LN.

Our goal is to change treatment paradigms in orphan and rare disease; specifically targeting the chronic inflammatory pathway while avoiding immuno-suppression. Each of our drug candidates and our first commercial drug product, TAVNEOS, are designed to selectively block a specific chemoattractant receptor. Separately, in our cancer program, we use a novel, orally-administered drug candidate, CCX559, designed to inhibit programmed death-ligand 1/programmed death protein 1, or PD-L1/PD-1, which we are developing for the treatment of a variety of cancers. Small molecule checkpoint inhibitors may have advantageous properties compared to approved monoclonal antibodies, such as better penetration into solid tumors, reduced immunogenicity, lack of Fc-mediated side effects, and the convenience of oral administration.

In May 2016 we announced a partnership with Vifor (International) Ltd., or Vifor, a European-based world leader specializing in kidney disease, for the commercial rights to avacopan in Europe and certain other international markets, which we refer to as the Avacopan Agreement. We expanded our partnership with Vifor in December 2016 with an additional deal for our other late stage drug candidate, CCX140, whereby we granted Vifor worldwide rights outside of the United States and China, which we refer to as the CCX140 Agreement; and in February 2017, we announced a further deal with Vifor for avacopan that harmonized the geographic commercialization rights underlying the agreements for both drug candidates, which we refer to as the Avacopan Amendment.

~~We have secured $155 million in upfront cash payments and commitments, plus substantial potential milestone payments pursuant~~The key elements to our ~~agreements with Vifor. Through our alliance, we maintain the~~ commercial ~~rights of avacopan~~ and ~~CCX140~~scientific strategy are to:

As of ~~September 30, 2017,~~March 31, 2022, we had an accumulated deficit of ~~$328.9~~$655.7 million. We expect to continue to incur net losses as we continue to commercialize TAVNEOS in the United States, develop our drug candidates, expand clinical trials for our drug candidates currently in clinical development, and expand our research and development activities, ~~expand our~~organization systems and facilities, seek regulatory approvals and engage in commercialization preparation activities in anticipation of FDA approval of our drug candidates. In addition, if a product is approved for commercialization, we will need to expand our organization.facilities. Significant capital is required to ~~launch~~commercialize a drug product and many expenses are incurred before revenues are received. We are unable to predict the extent of any future losses or when we will become profitable, if at all.

In ~~April 2012, the JOBS Act~~December 2019, a disease caused by a novel strain of coronavirus, COVID-19, was ~~enacted. Section 107~~identified in Wuhan, China. This virus has spread globally, including countries in which we have active clinical trial sites or contract manufacturing sites. The length of the ~~JOBS Act provides that an emerging growth company can utilize~~pandemic and its related restrictions and their consequences for us remain subject to a number of risks and uncertainties, including disease resurgence and variants. We experienced a delay in topline clinical data from our ongoing AURORA trial to the ~~extended transition period provided~~fourth quarter of 2020, due to COVID-19, impacting certain sites where the trial was being conducted. We do not currently anticipate any material delays in ~~Section 7(a)(2)(B)~~our commercial production of the Securities Act for implementing new or revised accounting standards. In other words, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to delay such adoption of new or revised accounting standards, andTAVNEOS nor are we currently anticipating any material disruption in our clinical drug supply as a result weof the pandemic. However, the pandemic continues to be unpredictable, and impacts may not ~~implement new~~be foreseeable or ~~revised accounting standards on the relevant dates on which adoption of such standards is required for other companies.~~expected.

Subject to certain conditions set forth in the JOBS Act, as an emerging growth company, we intend to rely on certain of these exemptions, including without limitation, providing an auditor’s attestation report on our system of internal controls over financial reporting pursuant to Section 404 and implementing any requirement that may be adopted regarding mandatory audit firm rotation or a supplement to the auditor’s report providing additional information about the audit and the financial statements (auditor discussion and analysis). These exemptions will apply for a period of five years following the completion of our IPO although if the market value of our common stock that is held by nonaffiliates exceeds $700 million as of any June 30 before that time, we would cease to be an emerging growth company as of the following December 31.

There have been no material changes in significant judgments and estimates for our critical accounting policies during the ~~nine~~three months ended ~~September 30, 2017,~~March 31, 2022, as compared to those disclosed in “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Significant Judgments and Estimates” in our Annual Report on Form 10-K for the fiscal year ended December 31, ~~2016,~~2021, filed with the SEC on March ~~14, 2017.~~1, 2022.

We ~~have not generated any revenue from product sales. For~~launched TAVNEOS and began commercial sales during the periods presented, our revenues were derived from (i) the recognition of the upfront payments related to the Avacopan Agreement, Avacopan Amendment and CCX140 Agreement; (ii) collaboration revenue under the CCX140 Agreement and (iii) grant revenue from the FDA Orphan Products Development grant to support the clinical development of avacopan for the treatment of patients with AAV.quarter ended December 31, 2021. Total revenue for the ~~periods~~three months ended March 31, 2022, as compared to the same ~~periods~~period in the prior year, ~~were~~was as follows (in thousands):

For the three months ended March 31, 2022, our revenue was primarily derived from TAVNEOS sales, as compared to the collaboration and ~~nine month periods were due to; (i) amortization~~license revenue generated in the same period of ~~the upfront license fee commitments from Vifor pursuant~~2021 related to the Avacopan ~~Agreement, Avacopan Amendment~~Agreements and ~~CCX140 Agreement, as well as (ii) collaboration revenue for development services under~~ the CCX140 Agreement, in each case, as amended, and the ~~2017 periods.~~related letter agreements.

For the collaboration and license revenue, we use a cost-based input method to measure proportional performance and to calculate the corresponding amount of revenue to recognize. In applying the cost-based input method of revenue recognition, we measure actual costs incurred relative to budgeted costs to fulfill the combined performance obligation. These ~~increases were~~costs consist primarily of third-party contract costs. Revenue is recognized based on actual costs incurred as a percentage of total budgeted costs as we complete our performance obligations.

The decrease in total revenue from 2021 to 2022 for the three months ended March 31 was attributable tothe $10.0 million milestone received in 2021 from Vifor for the February 2021 acceptance of the Japanese NDA, for TAVNEOS in the treatment of ANCA-associated vasculitis, which subsequently led to the September 2021 Japanese NDA approval of TAVNEOS. The impact of the increase in transaction price of the Avacopan Agreements from the $45.0 million non-refundable regulatory milestone received upon TAVNEOS approval in Europe during the first quarter of 2022 was offset by the impact of an increase in the estimated underlying development budget (which also occurred in the quarter ended March 31, 2022 but was unrelated to the increase in the transaction price) and therefore is currently estimated to be recognized over a four year period, subject to adjustment from time to time, as performance obligations under the Avacopan Agreements are fulfilled. This overall decrease in revenue was partially offset by ~~a decrease~~U.S. TAVNEOS net sales in ~~grant revenue from the FDA to support the clinical development of avacopan for the treatment of patients with AAV.~~2022.

Research and development expenses represent costs incurred to conduct basic research, ~~the~~ discovery and development of novel small molecule therapeutics, development of our suite of proprietary drug discovery technologies, preclinical studies and clinical trials of our drug candidates. We recognize all research and development expenses as they are incurred. These expenses consist primarily of salaries and related benefits, including stock-based compensation, third-party contract costs relating to research, formulation, manufacturing, preclinical study and clinical trial activities, laboratory consumables, and allocated facility costs. Total research and development expenses for the three ~~and nine~~ months ended ~~September 30, 2017,~~March 31, 2022, as compared to the same period in the prior year, were as follows (in thousands):

The ~~increase in research and development expenses~~decrease from ~~2016~~2021 to ~~2017~~2022 for the three ~~month period~~months ended March 31 was primarily attributable to ~~higher~~the manufacture of commercial drug supply which was accounted for as inventory in ~~Phase III clinical development expenses due~~the first quarter of 2022 as compared to the ~~initiation and patient enrollment~~same period of 2021 in which such costs were expensed in anticipation of the ~~avacopan ADVOCATE trial in patients with AAV and higher Phase II clinical development expense due to start-up expenses related to the clinical trial~~launch of ~~avacopan~~TAVNEOS for the treatment of ~~C3G. These increases~~ANCA-associated vasculitis. Manufacturing costs associated with campaigns initiated prior to FDA approval were ~~partially offset by lower~~recorded as research and development expense. Lower Phase II related expenses due to the completion of the ~~avacopan~~

~~CLEAR and CLASSIC~~TAVNEOS AURORA Phase IIb clinical trials for the treatment of AAV in 2016. Decreased Phase I development expense was due to the completion of enrollment in the clinical trial for CCX872 in patients with advanced pancreatic cancer in 2016.

~~Research and development expenses increased from 2016 to 2017 for the nine month period primarily due to the initiation and patient enrollment of the avacopan Phase III ADVOCATE~~ trial in patients with ~~AAV and start-up expenses related~~HS also

contributed to the ~~Phase II clinical trial of avacopan for the treatment of C3G.~~decrease. These ~~increases~~decreases were partially offset by ~~lower Phase II clinical~~higher expenses, including those associated with the development ~~expense primarily due to the completion~~ of the avacopan CLEAR and CLASSIC clinical trials for the treatment of AAV in 2016 and lower Phase I development expense due to the completion of enrollment in the clinical trial for CCX872 in patients with advanced pancreatic cancer in 2016.CCX559, our orally-available small molecule checkpoint (PD-L1/PD-1) inhibitor.

The following table summarizes our research and development expenses by stage of development (in thousands):

We track development expenses that are directly attributable to our clinical development candidates by phase of clinical development. Such development expenses include third-party contract costs relating to formulation, manufacturing, preclinical studies and clinical trial activities. We allocate research and development salaries, benefits or indirect costs to our development candidates and we have included such costs in research and development expenses. All remaining research and development expenses are reflected in “Research and drug discovery” which represents early stage drug discovery programs. Such expenses include allocated employee salaries and related benefits, stock-based compensation, consulting and contracted services to supplement our in-house laboratory activities, laboratory consumables and allocated facility costs associated with these earlier stage programs.

At any given time, we typically have several active early stage research and drug discovery projects. Our internal resources, employees and infrastructure are not directly tied to any individual research or drug discovery project and are typically deployed across multiple projects. As such, we do not maintain information regarding these costs incurred for our early stage research and drug discovery programs on a project specific basis. We expect our research and development expenses to increase as we advance our development programs further and increase the number and size of our clinical trials. The process of conducting preclinical studies and clinical trials necessary to obtain regulatory approval is costly and time consuming. We, or our partners, may never succeed in achieving marketing approval, as we did with TAVNEOS, for any of our drug candidates. The probability of success for each drug candidate may be affected by numerous factors, including preclinical data, clinical data, competition, manufacturing capability and commercial viability. Our strategy includes entering into additional partnerships with third parties for the development and commercialization of some of our independent drug candidates.

The successful development of our drug candidates is highly uncertain and may not result in approved drug products. Completion dates and completion costs can vary significantly for each drug candidate and are difficult to predict for each drug product. Given the uncertainty associated with clinical trial enrollments and the risks inherent in the development process, we are unable to determine the duration and completion costs of the current or future clinical trials of our drug candidates or if, or to what extent, we will generate revenues from the commercialization and sale of any of our drug candidates. We anticipate we will make determinations as to which programs to pursue and how much funding to direct to each program on an ongoing basis in response to the scientific and clinical success of each drug candidate, as well as ongoing assessment as to each drug candidate’s commercial potential. We ~~will~~may need to raise additional capital or may seek additional strategic alliances in the future in order to complete the development and commercialization of our drug candidates, including ~~avacopan, CCX140, CCX872~~TAVNEOS, CCX559 and ~~vercirnon.~~

Total selling, general and administrative expenses for the three ~~and nine~~ months ended ~~September 30, 2017,~~March 31, 2022, as compared to the same ~~periods~~period in the prior year, were as follows (in thousands):

Selling, general and administrative expenses consist primarily of salaries and related benefits, including stock-based compensation and travel expenses, in executive, finance, commercial, business and corporate development and other administrative ~~functions.~~functions, as well as costs associated with the launch and commercialization of TAVNEOS. Other selling, general and administrative expenses include allocated facility-related costs not otherwise included in research and development expenses, legal costs of pursuing patent protection of our intellectual property, and professional fees for auditing, tax, and legal services.

The increase from ~~2016~~2021 to ~~2017~~2022 for the three month period ended March 31 was primarily due to higher ~~accounting related~~employee-related expenses and professional fees, including those associated with ~~preparing to meet~~ the ~~requirements pursuant to the Sarbanes-Oxley Act~~U.S. launch and commercialization of ~~2002. The increase from 2016 to 2017 for the nine month period was primarily due to higher intellectual property related expenses and accounting related fees partially offset by lower travel expenses.~~TAVNEOS.

We ~~expect~~anticipate that our selling, general and administrative expenses will increase substantially in the future ~~as we expand our operating~~primarily due to commercialization-related activities and ~~incur additional expenses associated with preparing~~personnel costs to ~~meet~~support the ~~requirements pursuant to the Sarbanes-Oxley Act~~commercialization of ~~2002, including in connection with the expiration of our status~~TAVNEOS as an ~~emerging growth company, expected to occur~~adjunctive treatment for adult patients with severe active ANCA-associated vasculitis in ~~2017.~~the United States.

Other ~~income,~~expense, net primarily consists of interest income earned on our marketable ~~securities.~~securities and interest expense for our long-term debt. Total other ~~income,~~expense, net for the three ~~and nine~~ month ~~periods,~~period ended March 31, 2022, as compared to the same ~~periods~~period in the prior year was as follows (in thousands):

The ~~increases in~~decrease from total other ~~income,~~expense, net from ~~2016~~2021 to ~~2017~~2022 for the three ~~and nine month periods were~~months ended March 31 was primarily due to ~~higher~~less interest expense and less interest income earned from lower cash and investment balances ~~in 2017 due to the receipt of upfront payments totaling $125.0 million received from Vifor in connection with the Avacopan Agreement, Avacopan Amendment and CCX140 Agreement.~~.

As of ~~September 30, 2017,~~March 31, 2022, we had approximately ~~$124.8~~$372.9 million in cash, cash equivalents, restricted cash and investments. Such amounts exclude $30.0 million in remaining upfront commitments in connection with the December 2016 CCX140 Agreement and February 2017 Avacopan Amendment, which are due on the first anniversary of these agreements. The following table shows a summary of our cash flows for the ~~nine~~three months ended ~~September 30, 2017~~March 31, 2022 and ~~2016~~2021 (in thousands):

   Nine Months Ended
September 30,
       2017            2016
Cash provided by (used in)

Operating activities
   $ (917 )    $ 47,896
Investing activities
   4,473    (54,473 )
Financing activities
   2,381    7,621

Operating activities. ~~Net~~ Net cash ~~used in~~provided by operating activities was ~~$0.9~~ $8.8million for the ~~nine~~three months ended ~~September 30, 2017,~~March 31, 2022, compared to ~~$47.9~~$21.6 million ~~provided by operating activities~~cash used for the same period in ~~2016.~~2021. This ~~change~~increase was primarily due to changes in working capital items. For the nine months ended September 30, 2017, changes in working capital included the receipt of $30.0 million of accounts receivable from the first installment of the upfront commitment under the CCX140 Agreement. For the same period in 2016, changes in working capital included the receipt of $78.0 million, most of which was included as deferred revenue, in connection with the Avacopan Agreement.

Investing activities. Net cash used in or provided by ~~or used in~~ investing activities for periods presented primarily relate to the ~~purchases of investments~~purchase, sale and ~~maturities~~maturity of investments used to fund the day-to-day needs of our business.

Financing activities.Net cash provided byfinancing activities was ~~$2.4~~$3.1 million for the ~~nine~~three months ended ~~September 30, 2017,~~March 31, 2022, compared to ~~$7.6~~cash used in financing activities of $2.9 million for the same period in ~~2016.~~2021. Net cash provided by financing activities for both periods presented included proceeds from the exercise of stock options and stock purchases from ~~employee purchases of stock under~~contributions to our amended and restated 2012 Employee Stock Purchase ~~Plan. For the nine months ended September 30, 2016, net~~Plan, and cash provided also included the receipt of $7.0 million in net proceeds from the issuance of 3,333,333 shares of our common stock in connection with the Avacopan Agreement. For the nine months ended September 30, 2017, cash used ~~for financing activities included $0.3 million (the value of withheld shares),~~ for tendered ChemoCentryx, Inc. common stock to satisfy employee tax withholding requirements upon vesting of restricted stock ~~units.~~units.

As of ~~September 30, 2017,~~March 31, 2022, we had borrowed $20.0 million under the Credit Facility with Hercules Capital, Inc., or Hercules. We made interest-only payments through June 2021 and the first principal and interest payment on July 1, 2021. The Credit Facility was subsequently amended in July 2021 and December 2021 to extend the interest-only payment period through August 2022, at which point we will be obligated to repay the principal balance and interest on the advances in equal monthly installments through December 2022. In January 2020, we entered into the Restated Credit Facility, which provides for borrowings of up to an additional $100.0 million in three tranches, subject to certain terms and conditions. As of March 31, 2022, we had borrowed $5.0 million under the Restated Credit Facility. With the FDA approval of TAVNEOS in October 2021, the interest-only payment period and the principal balance repayment period was extended through March 1, 2023 and February 1, 2025, respectively. We are obligated to pay an end of

term charge of $1.3 million in December 2022. See “Note 6. Long-term Debt” in the Notes to Condensed Consolidated Financial Statements included in Item 1 of this Quarterly Report on Form 10-Q for additional information regarding our borrowings.

As of March 31, 2022, we had approximately ~~$124.8~~$372.9 million in cash, cash equivalents, restricted cash and investments, excluding the $30.0 million in remaining upfront commitments in connection with the December 2016 CCX140 Agreement and the February 2017 Avacopan Amendment, which are due on the first anniversary of these agreements.investments. We believe that our available cash, cash equivalents, restricted cash and investments will be sufficient to fund our anticipated level of operations and capital expenditures for at least 12 months following issuance of our financial ~~statement issuance date, November 7, 2017.~~statement. However, our forecast of the period of time through which our financial resources will be adequate to support our operations is a forward-looking statement that involves risks and uncertainties, and actual results could vary materially.

Our future capital requirements are difficult to forecast and will depend on many factors, including:

There have been no material changes outside the ordinary course of our business to the contractual obligations we reported in our Annual Report on Form 10-K for the fiscal year ended December 31, 2016, filed with the SEC on March 14, 2017.

See “Note 2. Summary of Significant Accounting Policies” in the ~~notes~~Notes to ~~condensed consolidated financial statements for a full description~~Condensed Consolidated Financial Statements included in Item 1 of ~~recently issued accounting pronouncements, including the respective expected dates of adoption and effects~~this Quarterly Report on ~~our consolidated financial position and results of operations.~~Form 10-Q.

Our market risks at ~~September 30, 2017~~March 31, 2022 have not changed significantly from those discussed in “Item 7A. Quantitative and Qualitative Disclosures About Market Risk” of our Annual Report on Form 10-K for the fiscal year ended December 31, ~~2016,~~2021, filed with the SEC on March ~~14, 2017.~~1, 2022, other than the following:

We are affected by market risk exposure primarily through the effect of changes in interest rates on amounts payable under the Credit Facility and Restated Credit Facility. At March 31, 2022, borrowings under the Credit Facility totaled $20.0 million with an interest rate of 8.05%. Advances under the Credit Facility bear an interest rate equal to the greater of (i) 8.05% plus the prime rate as reported from time to time in The Wall Street Journal, or Prime Rate, minus 4.75%, and (ii) 8.05%. We made interest-only payments on our borrowings under the Credit Facility through June 2021 and the first principal and interest payment on July 1, 2021. The Credit Facility was subsequently amended in July 2021 and December 2021 to extend the interest-only payment period through August 1, 2022, and will then repay the principal balance and interest on the advances in equal monthly installments through December 1, 2022.

In addition, borrowings under the Restated Credit Facility totaled $5.0 million at March 31, 2022 with an interest rate equal to the greater of (i) 8.50% plus the Prime Rate minus 5.25%, and (ii) 8.50%, which may be reduced upon the Company achieving certain cumulative net TAVNEOS revenue levels. We are obligated to make interest-only payments on our borrowings under the Restated Credit Facility through February 1, 2023, and will then repay the principal balance and interest on the advances in equal monthly installments through February 1, 2025. If the total amounts outstanding under the Credit Facility and the Restated Credit Facility remained at this level for an entire year and the interest rates increased by 1%, our annual interest expense would increase by an

additional $250,000. See “Note 6. Long-term Debt” in the Notes to Condensed Consolidated Financial Statements included in Item 1 of this Quarterly Report on Form 10-Q for additional information regarding our borrowings.

As of ~~September 30, 2017,~~March 31, 2022, management, with the participation of our Disclosure Committee, performed an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act. Our disclosure controls and procedures are designed to ensure that information required to be disclosed in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the ~~SEC’s~~Securities and Exchange Commission’s rules and forms, and that such information is accumulated and communicated to our management, including the Chief Executive Officer and the Chief Financial and Administrative Officer, to allow timely decisions regarding required disclosures.

Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objective. Based on this evaluation, our Chief Executive Officer and Chief Financial and Administrative Officer concluded that, as of ~~September 30, 2017,~~March 31, 2022, the design and operation of our disclosure controls and procedures were effective.

There has been no change in our internal control over financial reporting during the three months ended ~~September 30, 2017,~~March 31, 2022, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

The Company and its Chief Executive Officer were named as defendants in two putative shareholder class actions filed on May 5, 2021, and June 8, 2021, in the U.S. District Court for the Northern District of California. These cases have been consolidated into the lead case, Homyk v. ChemoCentryx, Inc., No. 4:21-cv-03343-JST (N.D. Cal.) (the “Homyk action”). The Homyk action alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act in connection with statements regarding the New Drug Application, or NDA, for TAVNEOS, and the underlying Phase III clinical trial, seeking an award of damages, interest and attorneys’ fees. A lead plaintiff was selected on January 28, 2022, and a consolidated amended complaint was filed on March 28, 2022. The Company’s motion to dismiss these claims will be filed on May 19, 2022 and heard sometime after August 3, 2022, when the motion is fully briefed. In addition, the Company, the Board of Directors and certain of our officers were named as defendants in a putative shareholder derivative action filed on January 25, 2022, in the U.S. District Court for the Northern District of California, Napoli v. Schall, 3:22-cv-00499 (N.D. Cal) (the “Napoli action”). On March 11, 2022, the Court entered a stipulation staying the Napoli action until judgment is entered in the Homyk action. The Company plans to vigorously defend against both actions. Given the early stages of both cases, the Company is unable to estimate a reasonably possible range of loss, if any, that may result from either litigation.

There have been no material changes to the risk factors included in “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, ~~2016,~~2021, filed with the SEC on March ~~14, 2017.~~1, 2022, except the following:

We are subject to a securities class action lawsuit and a shareholder derivative action, and could become involved in further
securities class action or derivative litigation in the future that could divert management’s attention and adversely affect our
business and could subject us to significant liabilities. If an unfavorable ruling were to occur, the litigation could have a material
adverse impact.

The stock markets have from time-to-time experienced significant price and volume fluctuations that have affected the market prices for the shares of biotechnology and pharmaceutical companies. These broad market fluctuations as well a broad range of other factors, including the realization of any of the risks described in the “Risk Factors” section of our Annual Report on Form 10‐K for the fiscal year ended December 31, 2021, may cause the market price of the shares of our common stock to decline. In the past, securities class action litigation has often been brought against a company following a decline in the market price of its securities. This risk is especially relevant for us because biotechnology and pharmaceutical companies generally experience significant share price volatility. Litigation often is expensive and diverts management’s attention and resources, which could adversely affect our business. Any adverse determination in any such litigation or any amounts paid to settle any such actual or threatened litigation could require that we make significant payments. We are presently involved and may become involved in this type of litigation in the future. As of the date of this filing, a consolidated securities class action (Homyk v. ChemoCentryx, Inc., 4:21-cv-03343-JST (N.D. Cal.)) and a shareholder derivative action (Napoli v. Schall, 3:22-cv-00499 (N.D. Cal)) have been filed against us and/or certain of our officers and directors. The shareholder derivative action is stayed pending entry of judgment in the consolidated securities class action. Given the early stage of these cases, we are unable to estimate a range of potential loss. An unfavorable ruling in either lawsuit could have a materially adverse impact on us.

A list of exhibits is set forth on the Exhibit Index immediately ~~following~~preceding the signature page of this Quarterly Report on Form10-Q, and is incorporated herein by reference.

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


Delaware	94-3254365
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)

835 Industrial Road, Suite 600 San Carlos, California	94070
(Address of Principal Executive Offices)	(Zip Code)


Large accelerated filer	☒	☐	Accelerated filer	☒ ☐
Non-accelerated filer	☐
~~Non-accelerated~~ ~~filer~~		~~☐ (Do not check if a smaller reporting company)~~	Smaller reporting company	☐

Emerging ~~Growth Company~~growth company		☒		☐



~~PART I. FINANCIAL INFORMATION~~					~~Page~~

PART I. FINANCIAL INFORMATION		Page

Item 1.		Financial Statements (Unaudited)				3

		Condensed Consolidated Balance Sheets – ~~September 30, 2017~~March 31, 2022 and December 31, ~~2016~~2021			3

		Condensed Consolidated Statements of Operations – Three ~~and Nine~~ Months Ended ~~September 30, 2017~~March 31, 2022 and ~~2016~~2021			4

		Condensed Consolidated Statements of Comprehensive Loss – Three ~~and Nine~~ Months Ended ~~September 30, 2017~~March 31, 2022 and ~~2016~~2021			5

	Condensed Consolidated Statements of Stockholders’ Equity – Three Months Ended March 31, 2022 and 2021	6

	Condensed Consolidated Statements of Cash Flows – ~~Nine~~Three Months Ended ~~September 30, 2017~~March 31, 2022 and ~~2016~~2021			6	7

		Notes to Condensed Consolidated Financial Statements			7
			8

Item 2.		Management’s Discussion and Analysis of Financial Condition and Results of Operations			14
			20

Item 3.		Quantitative and Qualitative Disclosures About Market Risk			21
			26

Item 4.		Controls and Procedures			21
			27

PART II. OTHER INFORMATION

~~Item 1.~~		~~Legal Proceedings~~			22

Item ~~1A.~~1.	Legal Proceedings	~~Risk Factors~~			22
			28

Item 1A.	Risk Factors	28

Item 2.		Unregistered Sales of Equity Securities and Use of Proceeds			22
			29

Item 3.		Defaults Upon Senior Securities			22
			29

Item 4.		Mine Safety Disclosures			22
			29
~~Item 5.~~		~~Other Information~~			22

Item 6.5.	Other Information	~~Exhibits~~			22
			29
~~SIGNATURES~~			24

Item 6.	Exhibits	29

EXHIBIT INDEX		30

SIGNATURES		23	31


	March 31,			December 31,
	2022			2021
	(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	40,577		$	49,978
Short-term investments		300,024			214,514
Accounts receivable, net		2,781			411
Accounts receivable from related party		29			43
Inventory		2,897			851
Prepaid expenses and other current assets		5,324			3,380
Total current assets		351,632			269,177
Property and equipment, net		31,482			32,269
Long-term investments		31,235			97,856
Operating lease right-of-use assets		24,592			24,806
Other assets		1,512			1,544
Total assets	$	440,453		$	425,652
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	5,423		$	6,746
Accrued and other current liabilities		25,547			26,358
Long-term debt, current		19,128			18,920
Deferred revenue from related party		18,709			10,993
Total current liabilities		68,807			63,017
Long-term debt, net		4,554			4,715
Non-current deferred revenue from related party		62,094			24,772
Non-current lease liabilities		46,062			46,830
Other non-current liabilities		217			198
Total liabilities		181,734			139,532
Commitments (Note 7)
Stockholders’ equity:
Preferred stock, $0.001 par value, 10,000,000 shares authorized; 0 shares issued and outstanding		0			0
Common stock, $0.001 par value, 200,000,000 shares authorized; 71,142,102 and 70,357,557 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively		71			70
Additional paid-in capital		916,224			903,646
Note receivable		(16	)		(16	)
Accumulated other comprehensive loss		(1,855	)		(483	)
Accumulated deficit		(655,705	)		(617,097	)
Total stockholders’ equity		258,719			286,120
Total liabilities and stockholders’ equity	$	440,453		$	425,652


	September 30,			December 31,
	2017			2016
Assets
Current assets:
Cash and cash equivalents	$	17,961		$	12,024
Short-term investments		102,603			105,740
Accounts receivable		530			30,205
Prepaid expenses and other current assets		1,299			722

Total current assets		122,393			148,691
Property and equipment, net		970			905
Long-term investments		4,204			5,997
Other assets		381			279

Total assets	$	127,948		$	155,872

Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	1,353		$	671
Accrued liabilities		8,185			8,645
Deferred revenue		34,872			29,019

Total current liabilities		44,410			38,335
Deferred revenue		46,027			67,547
Othernon-current liabilities		214			101

Total liabilities		90,651			105,983
Stockholders’ equity:
Preferred stock, $0.001 par value, 10,000,000 shares authorized; no shares issued and outstanding		—			—
Common stock, $0.001 par value, 200,000,000 shares authorized; 48,772,716 shares and 48,057,920 shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively		49			48
Additionalpaid-in capital		366,187			356,966
Note receivable		(16	)		(16	)
Accumulated other comprehensive loss		(68	)		(50	)
Accumulated deficit		(328,855	)		(307,059	)

Total stockholders’ equity		37,297			49,889

Total liabilities and stockholders’ equity	$	127,948		$	155,872

☒
☒	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


	Common Stock					Additional Paid-In			Note			Accumulated Other Comprehensive			Accumulated			Total Stockholders'
	Shares			Amount		Capital			Receivable			Income (Loss)			Deficit			Equity
Balance as of December 31, 2021		70,357,557		$	70	$	903,646		$	(16	)	$	(483	)	$	(617,097	)	$	286,120
Net loss		—			—		—			—			—			(38,608	)		(38,608	)
Unrealized loss on investments		—			—		—			—			(1,372	)		—			(1,372	)
Issuance of common stock upon net exercise of warrant		66,833			—		—			—			—			—			—
Issuance of common stock under equity incentive and employee stock purchase plans		803,567			1		6,278			—			—			—			6,279
Repurchased shares upon vesting of restricted stock units for tax withholdings		(85,855	)		—		(3,126	)		—			—			—			(3,126	)
Employee stock-based compensation		—			—		9,182			—			—			—			9,182
Compensation expense related to options granted to consultants		—			—		244			—			—			—			244
Balance as of March 31, 2022		71,142,102		$	71	$	916,224		$	(16	)	$	(1,855	)	$	(655,705	)	$	258,719


	September 30, 2017		December 31, 2016
Vifor (International) Ltd.⁽¹⁾	$	530	$	30,000
U.S. Food and Drug Administration		—		205

	$	530	$	30,205


				Outstanding Options
	Available for Grant			Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value (in thousands)
Balance at December 31, 2016		1,655,524			9,345,515		$	7.72
Shares authorized		1,900,000
Granted⁽¹⁾		(1,914,238	)		1,634,500			6.95
Exercised⁽²⁾		40,208			(405,912	)		5.85
Forfeited and expired⁽³⁾		489,862			(476,528	)		6.47

Balance at September 30, 2017		2,171,356			10,097,575		$	7.73		6.35	$	10,544


				Weighted Average
				Grant-Date
	Shares			Fair Value
Balance at December 31, 2016		471,650		$	4.60
Granted		279,738			6.72
Vested		(185,842	)		4.26
Canceled		(13,334	)		3.57

Unvested at September 30, 2017		552,212		$	5.81


	Three Months Ended September 30,					Nine Months Ended September 30,
	2017			2016		2017			2016
Collaboration and license revenue	$	9,029		$	4,131	$	26,196		$	6,751
Grant revenue		—			120		—			295

Total revenue	$	9,029		$	4,251	$	26,196		$	7,046

Dollar increase	$	4,778				$	19,150
Percentage increase		112	%				272	%


Exhibit Number		Description

~~31.1~~ 10.1#		Amended and Restated Non-Employee Director Compensation Policy.

31.1		Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2		Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1		Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2		Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

~~101~~ 101.INS		~~The following information from~~ Inline XBRL Instance Document – the ~~Registrant’s Quarterly Report on Form 10-Q for~~instance document does not appear in the ~~quarterly period ended September 30, 2017, formatted in~~Interactive Data File because XBRL (Extensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Operations, (iii) Condensed Consolidated Statements of Comprehensive Loss, (iv) Condensed Consolidated Statements of Cash Flows, and (v)tags are embedded within the ~~Notes to Condensed Consolidated Financial Statements.~~Inline XBRL document.

101.SCH		Inline XBRL Taxonomy Extension Schema Document

101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document

104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

#		Indicates management contract or compensatory plan.


		CHEMOCENTRYX, INC.

Date: ~~November 7, 2017~~	May 10, 2022		/s/ Thomas J. Schall, Ph.D.

		Thomas J. Schall, Ph.D. President and Chief Executive Officer (Principal Executive Officer)

Date: ~~November 7, 2017~~May 10, 2022		/s/ Susan M. Kanaya

		Susan M. Kanaya Executive Vice President, Chief Financial and Administrative Officer and Secretary ~~(Principal~~ (Principal Financial and Accounting Officer)