Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2023 | May 02, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | CYTK | |
Entity Registrant Name | CYTOKINETICS, INCORPORATED | |
Entity Central Index Key | 0001061983 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity File Number | 000-50633 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 94-3291317 | |
Entity Address, Address Line One | 350 Oyster Point Blvd | |
Entity Address, City or Town | South San Francisco | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94080 | |
City Area Code | 650 | |
Local Phone Number | 624-3000 | |
Entity Common Stock, Shares Outstanding | 95,640,600 | |
Title of 12(b) Security | Common Stock, $0.001 par value | |
Security Exchange Name | NASDAQ | |
Document Quarterly Report | true | |
Document Transition Report | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 101,616 | $ 65,582 |
Short-term investments | 562,346 | 716,995 |
Accounts receivable | 1,006 | 147 |
Prepaid expenses and other current assets | 15,661 | 12,462 |
Total current assets | 680,629 | 795,186 |
Long-term investments | 40,406 | 46,708 |
Property and equipment, net | 78,859 | 80,453 |
Operating lease right-of-use assets | 81,802 | 82,737 |
Other assets | 8,119 | 9,691 |
Total assets | 889,815 | 1,014,775 |
Current liabilities: | ||
Accounts payable | 17,357 | 25,611 |
Accrued liabilities | 35,632 | 44,096 |
Short-term operating lease liabilities | 14,263 | 12,829 |
Other current liabilities | 7,968 | 2,081 |
Total current liabilities | 75,220 | 84,617 |
Term loan, net | 64,110 | 63,810 |
Convertible notes, net | 546,513 | 545,808 |
Liabilities related to revenue participation right purchase agreement, net | 306,814 | 300,501 |
Long-term operating lease liabilities | 125,341 | 126,895 |
Other non-current liabilities | 837 | 1,044 |
Total liabilities | 1,118,835 | 1,122,675 |
Commitments and contingencies | ||
Stockholders' deficit: | ||
Preferred stock, $0.001 par value | 0 | 0 |
Common stock, $0.001 par value | 94 | 94 |
Additional paid-in capital | 1,489,814 | 1,481,590 |
Accumulated other comprehensive loss | (1,645) | (3,590) |
Accumulated deficit | (1,717,283) | (1,585,994) |
Total stockholders' deficit | (229,020) | (107,900) |
Total liabilities and stockholders' deficit | $ 889,815 | $ 1,014,775 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Common stock, par value | $ 0.001 | $ 0.001 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenues: | ||
Total revenues | $ 4,613 | $ 1,148 |
Operating expenses: | ||
Research and development | 79,421 | 45,935 |
General and administrative | 49,665 | 33,070 |
Total operating expenses | 129,086 | 79,005 |
Operating loss | (124,473) | (77,857) |
Interest expense | (6,961) | (2,746) |
Loss on extinguishment of debt | (2,693) | |
Non-cash interest expense on liability related to sale of future royalties | (6,280) | (6,564) |
Interest and other income, net | 6,425 | 415 |
Net loss | $ (131,289) | $ (89,445) |
Net loss per share - basic | $ (1.38) | $ (1.05) |
Net loss per share - diluted | $ (1.38) | $ (1.05) |
Weighted-average number of shares used in computing net loss per share - basic | 95,164 | 84,996 |
Weighted-average number of shares used in computing net loss per share - diluted | 95,164 | 84,996 |
Other comprehensive loss: | ||
Unrealized gain (loss) on available-for-sale securities, net | $ 1,945 | $ (2,720) |
Comprehensive loss | (129,344) | (92,165) |
Research and Development Revenues [Member] | ||
Revenues: | ||
Total revenues | 2,113 | $ 1,148 |
Milestone Revenues [Member] | ||
Revenues: | ||
Total revenues | $ 2,500 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' (Deficit) Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Accumulated Deficit [Member] |
Beginning Balance at Dec. 31, 2021 | $ 243,863 | $ 84 | $ 1,452,268 | $ (869) | $ (1,207,620) |
Beginning Balance (ASU 2020-06) at Dec. 31, 2021 | (38,895) | $ 0 | (49,476) | 0 | 10,581 |
Beginning Balance, shares at Dec. 31, 2021 | 84,799,542 | ||||
Beginning Balance, shares (ASU 2020-06) at Dec. 31, 2021 | 0 | ||||
Exercise of stock options, value | 4,075 | $ 1 | 4,074 | 0 | 0 |
Exercise of stock options, shares | 374,242 | ||||
Issuance of common stock under restricted stock units | 0 | $ 0 | 0 | 0 | 0 |
Issuance of common stock under restricted stock units, Shares | 663,341 | ||||
Vesting of restricted stock units, net of taxes withheld, / Shares withheld related to net share settlement of equity awards value | (9,602) | $ 0 | 9,602 | 0 | 0 |
Vesting of restricted stock units, net of taxes withheld / Shares withheld related to net share settlement of equity awards, shares | (260,172) | ||||
Stock-based compensation | 8,985 | 8,985 | 0 | 0 | |
Other comprehensive income (loss) | (2,720) | $ 0 | 0 | (2,720) | 0 |
Net loss | (89,445) | 0 | 0 | 0 | (89,445) |
Ending Balance at Mar. 31, 2022 | 116,261 | $ 85 | 1,406,249 | (3,589) | (1,286,484) |
Ending Balance, shares at Mar. 31, 2022 | 85,576,953 | ||||
Beginning Balance at Dec. 31, 2022 | (107,900) | $ 94 | 1,481,590 | (3,590) | (1,585,994) |
Beginning Balance, shares at Dec. 31, 2022 | 94,833,975 | ||||
Exercise of stock options, value | 3,547 | $ 0 | 3,547 | 0 | 0 |
Exercise of stock options, shares | 369,298 | ||||
Issuance of common stock under restricted stock units | 0 | $ 0 | 0 | 0 | 0 |
Issuance of common stock under restricted stock units, Shares | 668,835 | ||||
Vesting of restricted stock units, net of taxes withheld, / Shares withheld related to net share settlement of equity awards value | (10,517) | $ 0 | (10,517) | 0 | 0 |
Vesting of restricted stock units, net of taxes withheld / Shares withheld related to net share settlement of equity awards, shares | (262,829) | ||||
Stock-based compensation | 15,194 | $ 0 | 15,194 | 0 | 0 |
Other comprehensive income (loss) | 1,945 | 0 | 0 | 1,945 | 0 |
Net loss | (131,289) | 0 | 0 | 0 | (131,289) |
Ending Balance at Mar. 31, 2023 | $ (229,020) | $ 94 | $ 1,489,814 | $ (1,645) | $ (1,717,283) |
Ending Balance, shares at Mar. 31, 2023 | 95,609,279 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities: | ||
Net loss | $ (131,289) | $ (89,445) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Non-cash interest expense on liabilities related to revenue participation right purchase agreements | 6,313 | 6,592 |
Stock-based compensation expense | 15,194 | 8,985 |
Non-cash lease expense | 935 | 227 |
Depreciation of property and equipment | 1,848 | 1,341 |
Loss on investments, net | 34 | |
Interest receivable and amortization on investments | (3,037) | 1,004 |
Non-cash interest expense related to debt | 6,888 | 1,300 |
Loss on extinguishment of debt | 2,693 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (859) | 50,763 |
Prepaid and other assets | (1,627) | (1,422) |
Accounts payable | (8,106) | (3,080) |
Accrued and other liabilities | (7,755) | (3,522) |
Operating lease liabilities | (120) | (579) |
Other non-current liabilities | (705) | (1,668) |
Net cash used in operating activities | (122,286) | (26,811) |
Cash flows from investing activities: | ||
Purchases of investments | (89,779) | (193,127) |
Maturities of investments | 250,701 | 129,790 |
Sales of investments | 4,977 | |
Purchases of property and equipment | (402) | (942) |
Net cash provided by (used in) investing activities | 165,497 | (64,279) |
Cash flows from financing activities: | ||
Repayment of finance lease liabilities | (207) | (148) |
Repayment of term loan | (47,651) | |
Debt extinguishment costs | (2,409) | |
Proceeds from 2022 RPI Transactions, net | 149,581 | |
Proceeds from issuance of common stock under equity incentive and stock purchase plans | 3,547 | 4,075 |
Taxes paid related to net share settlement of equity awards | (10,517) | (9,602) |
Net cash (used in) provided by financing activities | (7,177) | 93,846 |
Net increase in cash, cash equivalents, and restricted cash | 36,034 | 2,756 |
Cash, cash equivalents, and restricted cash, beginning of period | 67,182 | 112,666 |
Cash, cash equivalents, and restricted cash, end of period | 103,216 | 115,422 |
Supplemental cash flow disclosures: | ||
Cash paid for interest | 40 | 2,714 |
Non-cash investing and financing activities: | ||
Right-of-use assets recognized in exchange for lease obligations | 703 | |
Amounts unpaid for purchases of property and equipment | $ 473 | $ 1,829 |
Organization and Significant Ac
Organization and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Significant Accounting Policies | Note 1 — Organization and Significant Accounting Policies Cytokinetics, Incorporated was incorporated under the laws of the state of Delaware on August 5, 1997. The Company is a late-stage biopharmaceutical company focused on the discovery and development of novel small molecule therapeutics that modulate muscle function for the potential treatment of serious diseases and medical conditions. Our financial statements contemplate the conduct of our operations in the normal course of business. We have incurred an accumulated deficit of approximately $ 1.7 billion since inception and there can be no assurance that we will attain profitability. We had a net loss of $ 131.3 million and net cash used in operations of $ 122.3 million for the three months ended March 31, 2023. Cash, cash equivalents, and investments decreased to $ 704.4 million as of March 31, 2023 from $ 829.3 million as of December 31, 2022. We anticipate that we will have operating losses and net cash outflows in future periods. We are subject to risks common to late-stage biopharmaceutical companies including, but not limited to, development of new drug candidates, dependence on key personnel, and the ability to obtain additional capital as needed to fund our future plans. Our liquidity will be impaired if sufficient additional capital is not available on terms acceptable to us. To date, we have funded operations primarily through sales of our common stock, contract payments under our collaboration agreements, sales of future revenues and royalties, debt financing arrangements, government grants and interest income. Until we achieve profitable operations, we intend to continue to fund operations through payments from strategic collaborations, additional sales of equity securities, grants and debt financings. We have never generated revenues from commercial sales of our drugs and may not have drugs to market for at least several years, if ever. Our success is dependent on our ability to enter into new strategic collaborations and/or raise additional capital and to successfully develop and market one or more of our drug candidates. We cannot be certain that sufficient funds will be available from such a financing or through a collaborator when required or on satisfactory terms. Additionally, there can be no assurance that our drug candidates will be accepted in the marketplace or that any future products can be developed or manufactured at an acceptable cost. These factors could have a material adverse effect on our future financial results, financial position and cash flows. Based on the current status of our research and development activities, we believe that our existing cash, cash equivalents and investments will be sufficient to fund cash requirements for at least the next 12 months after the issuance of this Quarterly Report on Form 10-Q. If, at any time, our prospects for financing our research and development programs decline, we may decide to reduce research and development expenses by delaying, discontinuing or reducing our funding of one or more of our research or development programs. Alternatively, we might raise funds through strategic collaborations, public or private financings or other arrangements. Such funding, if needed, may not be available on favorable terms, or at all. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. Basis of Presentation Our condensed consolidated financial statements include the accounts of Cytokinetics and our wholly-owned subsidiaries. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with GAAP for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. The financial statements include all adjustments (consisting only of normal recurring adjustments) that management believes are necessary for the fair statement of our financial information. These interim results are not necessarily indicative of results to be expected for the full fiscal year or any future interim period. The balance sheet as of December 31, 2022 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements. The financial statements and related disclosures have been prepared with the presumption that users of the interim financial statements have read or have access to the audited financial statements for the preceding fiscal year. Accordingly, these financial statements should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s Form 10-K for the year ended December 31, 2022 , as filed with the Securities and Exchange Commission. Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. We evaluate our estimates on an ongoing basis. We base our estimates on our historical experience and also on assumptions that we believe are reasonable; however, actual results could significantly differ from those estimates. |
Net Loss Per Share
Net Loss Per Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Note 2 — Net Loss Per Share The following instruments were excluded from the computation of diluted net loss per share for the periods presented because their effect would have been antidilutive (in thousands): March 31, 2023 March 31, 2022 Options to purchase common stock 12,362 10,855 Warrants to purchase common stock 13 47 Restricted stock and performance units 1,438 1,520 Shares issuable related to the ESPP 49 31 Shares issuable upon conversion of 2026 Notes 2,554 16,675 Shares issuable upon conversion of 2027 Notes 10,572 — Total shares 26,988 29,128 |
Research and Development Arrang
Research and Development Arrangements | 3 Months Ended |
Mar. 31, 2023 | |
Research and Development [Abstract] | |
Research and Development Arrangements | Note 3 — Research and Development Arrangements 2021 Ji Xing and RTW Transactions In December 2021, we entered into the 2021 RTW Transactions as described below, related to omecamtiv mecarbil. Ji Xing Omecamtiv Mecarbil License and Collaboration Agreement On December 20, 2021, we entered into the Ji Xing OM License Agreement, pursuant to which we granted to Ji Xing an exclusive license to develop and commercialize omecamtiv mecarbil in China and Taiwan. Under the terms of the Ji Xing OM License Agreement, we are the beneficiary of a nonrefundable $ 50.0 million payment obligation from Ji Xing comprised of a $ 40.0 million payment as consideration for the rights granted by us to Ji Xing and $ 10.0 million attributable to our having submitted to the FDA an NDA for omecamtiv mecarbil. The $ 50.0 million payment was received by the Company in January 2022. We may be eligible to receive from Ji Xing additional payments totaling up to $ 330.0 million for the achievement of certain commercial milestone events in connection to omecamtiv mecarbil. In addition, Ji Xing will pay us tiered royalties in the mid-teens to the low twenties range on the net sales of pharmaceutical products containing omecamtiv mecarbil in China and Taiwan, subject to certain reductions for generic competition, patent expiration and payments for licenses to third party patents. Ji Xing will be responsible for the development and commercialization of omecamtiv mecarbil at its own cost and is required to use diligent efforts to develop and commercialize omecamtiv mecarbil in China and Taiwan. The development of omecamtiv mecarbil will be initially focused on HFrEF, and Ji Xing will have the opportunity to participate in Cytokinetics’ global clinical trials of omecamtiv mecarbil. Cytokinetics will supply omecamtiv mecarbil to Ji Xing either as a finished product or as an active pharmaceutical ingredient. Ji Xing may reimburse Cytokinetics for certain costs related to development and supply activities that we perform on their behalf. The Ji Xing OM License Agreement, unless terminated earlier, will continue on a market-by-market basis until expiration of the relevant royalty term. Ji Xing has the right to terminate the Ji Xing OM License Agreement for convenience. Each party may terminate the Ji Xing OM License Agreement for the other party’s uncured material breach, insolvency, or failure to perform due to extended force majeure events. Cytokinetics may also terminate the Ji Xing OM License Agreement if Ji Xing challenges Cytokinetics’ patents or undergoes certain change of control transactions. Rights granted to Ji Xing in relation to omecamtiv mecarbil will revert to Cytokinetics upon termination, and, under certain circumstances, subject to a low single digit royalty payment by the Company to Ji Xing on the net sales of the products containing the compound omecamtiv mecarbil in China and Taiwan. We assessed this arrangement in accordance with ASC 606 and concluded that there is one performance obligation relating to the license of functional intellectual property. The performance obligation was satisfied, and we recognized the residual allocation of arrangement consideration as revenue of $ 54.9 million in 2021. Due to the nature of development, including the inherent risk of development and approval by regulatory authorities, we are unable to estimate if and when the development milestone payments could be achieved or become due and, accordingly, we consider the milestone payments to be fully constrained and excluded any potential milestone payments from the initial transaction price. The consideration related to sales-based milestone payments, including royalties, will be recognized when the related sales occur under the sales- and usage-based royalty exception as these amounts have been determined to relate predominantly to the license. We re-evaluate the probability of achievement of development milestones and any related constraints each reporting period. We will include consideration, without constraint, in the transaction price to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. Common Stock Purchase Agreements On December 20, 2021, as part of the 2021 RTW Transactions, we entered into common stock purchase agreements with each of the RTW Investors. These common stock purchase agreements provided for the sale and issuance of an aggregate of 511,182 shares of our common stock at a price per share of $ 39.125 and an aggregate purchase price of $ 20.0 million. The closing occurred on December 20, 2021 . The RTW Investors have agreed to certain trading and other restrictions with respect to the shares of common stock they purchased pursuant to these agreements, including a restriction on sales or other transfers of the shares, subject to certain exceptions, for a period of one year from the closing date. The restrictions resulted in a premium paid by the RTW Investors of $ 4.9 million, which represents the excess amount paid over the fair value of the shares of common stock purchased. The premium was determined by analyzing the restrictions discount applied to the closing stock price as of December 20, 2021, which is a Level 2 fair value input. The cash received less the calculated premium is the $ 15.1 million fair value of the common stock recorded . 2020 Ji Xing and RTW Transactions On July 14, 2020, we entered in the 2020 RTW Transactions, as described below, with RTW Royalty Holdings and Ji Xing, related to aficamten, our proprietary small molecule cardiac myosin inhibitor product, a novel cardiac myosin inhibitor, and other assets. Ji Xing Aficamten License and Collaboration Agreement On July 14, 2020, we entered into the Ji Xing Aficamten License Agreement with Ji Xing, pursuant to which we granted to Ji Xing an exclusive license to develop and commercialize aficamten in China and Taiwan. Under the terms of the Ji Xing Aficamten License Agreement, we received from Ji Xing a nonrefundable upfront payment of $ 25.0 million. We may be eligible to receive from Ji Xing milestone payments totaling up to $ 200.0 million for the achievement of certain development and commercial milestone events in connection to aficamten in the field of oHCM and/or nHCM and other indications. In addition, Ji Xing will pay us tiered royalties in the low-to-high teens range on the net sales of the products containing aficamten in China and Taiwan, subject to certain reductions for generic competition, patent expiration and payments for licenses to third party patents. Ji Xing will be responsible for the development and commercialization of aficamten at its own cost and is required to use diligent efforts to develop and commercialize aficamten in China and Taiwan. The development of aficamten will be initially focused on HCM, and Ji Xing will have the opportunity to participate in Cytokinetics’ global pivotal clinical trials of aficamten. Cytokinetics or a designated supplier will supply aficamten to Ji Xing either as a finished product or as an active pharmaceutical ingredient. The Ji Xing Aficamten License Agreement, unless terminated earlier, will continue on a market-by-market basis until expiration of the relevant royalty term. Ji Xing has the right to terminate the Ji Xing Aficamten License Agreement for convenience. Each party may terminate the Ji Xing Aficamten License Agreement for the other party’s uncured material breach, insolvency, or failure to perform due to extended force majeure events. Cytokinetics may also terminate the Ji Xing Aficamten License Agreement if Ji Xing challenges Cytokinetics’ patents or undergoes certain change of control transactions. Rights granted to Ji Xing in relation to aficamten will revert to Cytokinetics upon termination, and, under certain circumstances, subject to a low single digit royalty payment by the Company to Ji Xing on the net sales of the products containing the compound aficamten in China and Taiwan. We assessed this arrangement in accordance with ASC 606 and concluded that there is one performance obligation relating to the license of functional intellectual property. The performance obligation was satisfied, and we recognized the residual allocation of arrangement consideration as revenue of $ 36.5 million for 2020. No license revenue was recognized in 2021 related to the Ji Xing Aficamten License Agreement. Due to the nature of development, including the inherent risk of development and approval by regulatory authorities, we are unable to estimate if and when the development milestone payments could be achieved or become due and, accordingly, we consider the milestone payments to be fully constrained and exclude the milestone payments from the initial transaction price. The consideration related to sales-based milestone payments, including royalties, will be recognized when the related sales occur under the sales and usage-based royalty exception of ASC 606 as these amounts have been determined to relate predominantly to the license. We re-evaluate the probability of achievement of development milestones and any related constraints each reporting period. We will include consideration, without constraint, in the transaction price to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. We recognized a $ 2.5 million milestone from Ji Xing during the three months ended March 31, 2023 for the initiation of a phase 3 clinical trial for aficamten in nHCM. Although our contractual right to payment has not yet arisen under the Ji Xing Aficamten License Agreement, we determined that recognition of the milestone in accordance with ASC 606 during the first quarter of 2023 was appropriate based on our expected initiation of a phase 3 clinical trial of aficamten in nHCM. We recorded a corresponding contract asset in other current assets in our consolidated balance sheet as of March 31, 2023. Royalty Purchase Agreement On July 14, 2020, we entered the RTW Royalty Purchase Agreement with RTW Royalty Holdings, pursuant to which we sold our Mavacamten Royalty under the Research Collaboration Agreement, dated August 24, 2012, between us and MyoKardia, Inc. to RTW Royalty Holdings for a one-time payment of $ 85.0 million. The RTW Royalty Purchase Agreement transaction closed on November 13, 2020. On March 31, 2021, RTW Royalty Holdings assigned its rights and obligations under the RTW Royalty Purchase Agreement to its affiliate, RTW ICAV. We understand that on April 18, 2022, RTW ICAV and MyoKardia, Inc. entered into agreements, which purported to assign all of RTW ICAV's rights, title and interest to the Mavacamten Royalty to MyoKardia, Inc., and on April 25, 2022, we entered into a tripartite agreement with RTW ICAV and MyoKardia, Inc. acknowledging the release and discharge of any further obligations by us or MyoKardia, Inc. in connection to the Mavacamten Royalty. The allocation of the consideration for the 2020 RTW Transactions resulted in $ 87.0 million being allocated to the RTW Royalty Purchase Agreement representing its fair value. The fair value was determined using an income approach method based on management’s estimates of the discounted cash flows to be received over the term of the related royalty agreement, which are Level 3 fair value inputs. Management’s estimates included significant unobservable inputs. These inputs are derived using internal management estimates developed based on third party data and reflect management’s judgements, current market conditions surrounding competing products, and forecasts. The significant unobservable inputs include the estimated patient population, estimated selling price, estimated peak sales and sales ramp, the expected term of the royalty stream, and timing of the expected launch. The $ 87.0 million was initially recorded as deferred revenue. On April 25, 2022, as discussed above, we entered into a tripartite agreement with RTW ICAV and MyoKardia, Inc. acknowledging the release and discharge of any further obligations by us or MyoKardia, Inc. in connection to the Mavacamten Royalty. As a result of the full extinguishment of the Mavacamten Royalty, we recognized revenue of $ 87.0 million. Astellas Our strategic alliance with Astellas to advance novel therapies for diseases and medical conditions associated with skeletal muscle impairment and weakness commenced in 2013 under the Astellas Agreement. On April 23, 2020, we and Astellas entered into the two agreements referenced below which, taken together, amend and restate the Company’s research, development and commercialization collaboration with Astellas under the Astellas Agreement. Fast Skeletal Regulatory Activator Agreement The Company and Astellas entered into the Astellas FSRA Agreement on April 23, 2020. As a result of the Astellas FSRA Agreement, the Company will now have exclusive control and responsibility for the Company's future development and commercialization of reldesemtiv, CK-601 and other FSRA compounds and products, and accordingly, Astellas has agreed to terminate its license to all FSRA compounds and related products. Under the Astellas FSRA Agreement, Astellas agreed to pay one-third of the out-of-pocket clinical development costs which may be incurred in connection with the Company’s Phase 3 clinical trial of reldesemtiv in ALS, up to a maximum contribution by Astellas of $ 12 million. As of March 31, 2023, Astellas has reimbursed us $ 11.1 million . In addition, Astellas agreed to non-cash contributions to the Company, which include the transfer of its existing inventories of active pharmaceutical ingredient of reldesemtiv and CK-601. On March 31, 2023, we announced that we will discontinue COURAGE-ALS, our Phase 3 clinical trial of reldesemtiv in patients with ALS, and COURAGE-ALS OLE. Research and development revenue from Astellas was $ 1.8 million and $ 1.1 million for the three months ended March 31, 2023 and 2022, respectively. We had accounts receivable from Astellas of $ 1.0 million as of March 31, 2023 . We had no accounts receivable from Astellas as of December 31, 2022 . |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 4 — Fair Value Measurements We value our financial assets and liabilities at fair value, defined as the price that would be received for assets when sold or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). We utilize market data or assumptions that we believe market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated or generally unobservable. We primarily apply the market approach for recurring fair value measurements and endeavor to utilize the best information reasonably available. Accordingly, we use valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible and consider the security issuers’ and the third-party issuers’ credit risk in our assessment of fair value. We classify fair value based on the observability of those inputs using a hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement): Level 1 — Observable inputs, such as quoted prices in active markets for identical assets or liabilities; Level 2 — Inputs, other than the quoted prices in active markets, that are observable either directly or through corroboration with observable market data; and Level 3 — Unobservable inputs, for which there is little or no market data for the assets or liabilities, such as internally-developed valuation models. Fair Value of Financial Assets: The follow tables set forth the fair value of our financial assets, which consists of cash equivalents and investments classified as available-for-sale securities, that were measured on a recurring basis (in thousands): March 31, 2023 Fair Value Amortized Unrealized Unrealized Fair Money market funds Level 1 $ 93,659 $ — $ — $ 93,659 U.S. Treasury securities Level 1 125,936 45 ( 336 ) 125,645 U.S. and non-U.S. government agency bonds Level 2 170,752 138 ( 646 ) 170,244 Commercial paper Level 2 217,340 14 ( 365 ) 216,989 U.S. and non-U.S. corporate obligations Level 2 90,368 — ( 495 ) 89,873 $ 698,055 $ 197 $ ( 1,842 ) $ 696,410 December 31, 2022 Fair Value Amortized Unrealized Unrealized Fair Money market funds Level 1 $ 45,887 $ — $ — $ 45,887 U.S. Treasury securities Level 1 172,568 — ( 1,102 ) 171,466 U.S. Treasury securities backed repurchase agreements Level 2 16,003 — — 16,003 U.S. and non-U.S. government agency bonds Level 2 136,773 12 ( 889 ) 135,896 Commercial paper Level 2 329,359 28 ( 431 ) 328,956 U.S. and non-U.S. corporate obligations Level 2 128,594 — ( 1,209 ) 127,385 $ 829,184 $ 40 $ ( 3,631 ) $ 825,593 No credit losses on debt securities were recognized during the three months ended March 31, 2023 or 2022 . In its evaluation to determine expected credit losses, management considered all available historical and current information, expectations of future economic conditions, the type of security, the credit rating of the security, and the size of the loss position, as well as other relevant information. The Company does not intend to sell, and is unlikely to be required to sell, any of these available-for-sale investments before their effective maturity or market price recovery. |
Balance Sheet Components
Balance Sheet Components | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Components | Note 5 — Balance Sheet Components A reconciliation of cash, cash equivalents, and restricted cash reported in the accompanying condensed consolidated balance sheets to the amount reported within the accompanying condensed consolidated statements of cash flows was as follows (in thousands): March 31, 2023 December 31, 2022 Cash and cash equivalents $ 101,616 $ 65,582 Restricted cash 1,600 1,600 Total cash, cash equivalents, and restricted cash as reported within our consolidated statement of cash flows $ 103,216 $ 67,182 As of March 31, 2023 , our restricted cash balance of $ 1.6 million is used to collateralize the letters of credit associated with our fixed and variable rate vehicle allowance and short-term car rental programs. The restricted cash is classified as other current assets based on the remaining term of the underlying restriction. The letters of credit will lapse at the end of the respective contractual terms or upon termination of the arrangement. Accrued liabilities were as follows (in thousands): March 31, 2023 December 31, 2022 Accrued liabilities: Clinical and preclinical costs $ 11,265 $ 16,105 Compensation related 13,655 21,767 Other accrued expenses 10,712 6,224 Total accrued liabilities $ 35,632 $ 44,096 |
Agreements with Royalty Pharma
Agreements with Royalty Pharma | 3 Months Ended |
Mar. 31, 2023 | |
Agreements with Royalty Pharma [Abstract] | |
Agreements with Royalty Pharma | Note 6 — Agreements with Royalty Pharma On January 7, 2022, we announced that we had entered into the 2022 RPI Transactions with affiliates of Royalty Pharma International plc. The RP Loan Agreement and the RP Aficamten RPA described below, are determined to be debt instruments subsequently measured at amortized cost and were entered into with parties that were at the time of our entry into the 2022 RPI Transactions affiliated and in contemplation of one another. We used the relative fair value method and made separate estimates of the fair value of each freestanding financial instrument and then allocated the proceeds in proportion to those fair value amounts. Arrangement consideration for the RP Loan Agreement and the RP Aficamten RPA totaled $ 150 million, consisting of the two $ 50 million upfront payments for the signing of the RP Loan Agreement and the RP Aficamten RPA and milestone of $ 50 million for initiation of the first pivotal trial in oHCM for aficamten that was deemed probable at the signing of the agreements. The total consideration was allocated as follows (in thousands): Fair Value Proceeds Allocation Units of Accounting: Revenue Participation Right Purchase Agreement $ 69,498 $ 100,000 $ 89,571 Development Funding Loan Agreement 46,887 50,000 60,429 Total consideration $ 116,385 $ 150,000 $ 150,000 2022 RP Loan Agreement Under the RP Loan Agreement, we were initially entitled to receive up to $ 300.0 million in term loans, $ 50.0 million of which was disbursed to us on closing and the remaining $ 250.0 million scheduled to have been available to us upon our satisfaction of customary disbursement conditions and certain development conditions by specific deadlines, as follows: • $ 50.0 million of tranche 2 term loans during the one year period following the receipt on or prior to March 31, 2023 of marketing approval from FDA of omecamtiv mecarbil; • $ 25.0 million of tranche 3 term loans during the one year period following the commercial availability of a diagnostic test measuring levels of omecamtiv mecarbil to support the final FDA label language applicable to such drug, subject to such commercial availability and the conditions to the tranche 2 term loans having occurred on or prior to March 31, 2023; • $ 75.0 million of tranche 4 term loans during the one year period following the receipt on or prior to September 30, 2024 of positive results from SEQUOIA-HCM, the Phase 3 trial for aficamten; and • $ 100.0 million of tranche 5 term loans during the one year period following the acceptance by the FDA on or prior to March 31, 2025 of an NDA for aficamten, subject to the conditions to the tranche 4 term loans having occurred on or prior to September 30, 2024. As a result of our receipt of a CRL on February 28, 2023, in connection to our NDA for omecamtiv mecarbil, we have not satisfied the conditions to the availability of the tranche 2 and tranche 3 loans under the RP Loan Agreement. The remaining $ 175.0 million under tranches 4 and 5 remain available for disbursement to us, subject to satisfaction of the conditions described above. Each term loan under the RP Loan Agreement matures on the 10 year anniversary of the funding date for such term loan and is repayable in quarterly installments of principal, interest and fees commencing on the last business day of the seventh full calendar quarter following the calendar quarter of the applicable funding date for such term loan, with the aggregate amount payable in respect of each term loan (including interest and other applicable fees) equal to 190 % of the principal amount of the term loan for the tranche 1, tranche 4 and tranche 5 term loans and 200 % of the principal amount of the term loan for tranche 2 and tranche 3 term loans (such amount with respect to each term loan, “Final Payment Amount”). We accounted for amounts drawn under the RP Loan Agreement using the effective interest method which resulted in an effective interest rate of 7.65 % over the ten-year term. As of the date of the prepayment or maturity of the term loan (or the date such prepayment or repayment is required to be paid), we will be required to pay an additional amount equal to $ 34.6 million accreted over the term of the loan. We may prepay the term loans in full (but not in part) at any time at our option by paying an amount equal to the unpaid portion of Final Payment Amount for the outstanding term loans under the RP Loan Agreement; provided that if the conditions for either the tranche 4 term loans or the tranche 5 term loans have been met, we must have borrowed at least $ 50 million principal amount of the tranche 4 or 5 term loans. In addition, the term loans under the RP Loan Agreement are repayable in full at the option of either us or the lender in an amount equal to the unpaid portion of Final Payment Amount for the outstanding term loans upon a change of control of Cytokinetics. Future minimum payments under the existing borrowing under RP Loan Agreement are (in thousands): Years ending December 31: 2023 remainder $ 1,440 2024 10,080 2025 11,520 2026 11,520 2027 11,520 Thereafter 48,960 Future minimum payments 95,040 Less: Unamortized interest and loan costs ( 29,024 ) Term Loan, net $ 66,016 As of March 31, 2023, the fair value of our RP Loan approximated its carrying value of $ 66.0 million based upon a market observable interest rate, which is a Level 2 input. 2022 RP Aficamten Royalty Purchase Agreement In addition, on January 7, 2022, we entered into the RP Aficamten RPA with RPI ICAV, pursuant to which RPI ICAV purchased rights to certain revenue streams from net sales of pharmaceutical products containing aficamten by us, our affiliates and our licensees in exchange for up to $ 150.0 million in consideration, $ 50.0 million of which was paid on the closing date, $ 50.0 million of which was paid to us in March 2022 following the initiation of the first pivotal trial in oHCM for aficamten and $ 50.0 million of which is payable following the initiation of the first pivotal clinical trial in nHCM for aficamten. The RP Aficamten RPA also provides that the parties will negotiate terms for additional funding if we achieve proof of concept results in certain other indications for aficamten, with a reduction in the applicable royalty if we and RPI ICAV fail to agree on such terms in certain circumstances. Pursuant to the RP Aficamten RPA, RPI ICAV purchased the right to receive a percentage of net sales equal to 4.5 % for annual worldwide net sales of pharmaceutical products containing aficamten up to $ 1 billion and 3.5 % for annual worldwide net sales of pharmaceutical products containing aficamten in excess of $ 1 billion, subject to reduction in certain circumstances. Our liability to RPI ICAV is referred to as the “RP Aficamten Liability”. We account for the RP Aficamten Liability as a liability primarily because we have significant continuing involvement in generating the related revenue stream from which the liability will be repaid. If and when aficamten is commercialized and royalties become due, we will recognize the portion of royalties paid to RPI ICAV as a decrease to the RP Aficamten Liability and a corresponding reduction in cash. The carrying amount of the RP Aficamten Liability is based on our estimate of the future royalties to be paid to RPI ICAV over the life of the arrangement as discounted using an imputed rate of interest. The imputed rate of interest on the unamortized portion of the RP Aficamten Liability was approximately 22.4 % as of March 31, 2023 and December 31, 2022. During the first quarter of 2023, we updated our analyses of the RP Aficamten RPA to reflect our assumptions resulting from ongoing global market research and to reflect other adjustments in connection with our anticipated commercialization. Our estimates regarding the amount of future royalty payments under the RP Aficamten RPA increased due to changes in management’s estimates of unobservable inputs related to market conditions and timing. The adjustment is accounted for on a prospective basis in our liability calculation and did not result in a material change in our imputed interest rate or non-cash interest expense. We recognized $ 5.4 million of non-cash interest expense in the three months ended March 31, 2023 related to the RP Aficamten RPA. 2017 RP Omecamtiv Mecarbil Royalty Purchase Agreement In February 2017, we entered into the RP OM RPA pursuant to which we sold a portion of our right to receive royalties from Amgen on future net sales of omecamtiv mecarbil to RPFT for a one-time payment of $ 90 million, which is non-refundable even if omecamtiv mecarbil is never commercialized. Concurrently, we entered into a common stock purchase agreement with RPFT through which RPFT purchased 875,656 shares of the Company’s common stock for $ 10.0 million. We allocated the consideration and issuance costs on a relative fair value basis to our liability to RPFT related to sale of future royalties under the RP OM RPA (the “RP OM Liability”) and the common stock sold to RPFT, which resulted in the RP OM Liability being initially recognized at $ 92.3 million. The RP OM RPA provides for the sale of a royalty to RPFT of 4.5 % on worldwide net sales of omecamtiv mecarbil, subject to a potential increase of up to an additional 1 % under certain circumstances. As a result of our receipt of a CRL on February 28, 2023 in connection to our NDA for omecamtiv mecarbil, pursuant to the terms of the RP OM RPA, the applicable royalty rate will increase to a maximum of 5.5 % if omecamtiv approval obtains FDA approval at any time after June 30, 2023. As a result of the termination of the Amgen Agreement and pursuant to our obligations under the RP OM RPA, we and RPFT amended the RP OM RPA on January 7, 2022 to preserve RPFT’s rights under the RP OM RPA by providing for direct payments by us to RPFT of up to 5.5 % of our and our affiliates and licensees worldwide net sales of omecamtiv mecarbil. The RP OM RPA, as amended, had no impact on the original accounting for the $ 92.3 million associated with the RP OM Liability established in February 2017. We account for the RP OM Liability as a liability primarily because we have significant continuing involvement in generating the related revenue stream from which the liability will be repaid. If and when omecamtiv mecarbil is commercialized and royalties become due, we will recognize the portion of royalties paid to RPFT as a decrease to the RP OM Liability and a corresponding reduction in cash. The carrying amount of the RP OM Liability is based on our estimate of the future royalties to be paid to RPFT over the life of the arrangement as discounted using an imputed rate of interest. The excess of future estimated royalty payments over the $ 92.3 million of allocated proceeds, less issuance costs, is recognized as non-cash interest expense using the effective interest method. The imputed rate of interest on the unamortized portion of the RP OM Liability was approximately 1.9 % as of March 31, 2023 and 8.5 % as of December 31, 2022. During the first quarter of 2023, we updated our analyses of the RP OM RPA to reflect our current assumptions resulting from ongoing global market research and to reflect other adjustments in connection with our anticipated commercialization, including the result of our receipt of a CRL in connection to our NDA for omecamtiv mecarbil. As a consequence of our receipt of the CRL from FDA, any approval of omecamtiv mecarbil in the United States would likely only occur after June 30, 2023, the date at which the royalty rate under the RP OM RPA will increase to no more than 5.5 %. The resulting sales forecast for omecamtiv mecarbil has decreased because commercialization and sales of omecamtiv mecarbil will be delayed . The adjustment is accounted for on a prospective basis in our liability calculation and resulted in changes in our imputed interest rate and non-cash interest expense from 8.5 % and $ 4.0 million in the fourth quarter of 2022 to 1.9 % and $ 0.9 million in the first quarter of 2023, respectively. During the three months ended March 31, 2023, the change in estimate decreased our non-cash interest expense by $ 3.1 million . Accounting for the Royalty Pharma Royalty Purchase Agreements We periodically assess the amount and timing of expected royalty payments using a combination of internal projections and forecasts from external sources. To the extent such payments are greater or less than our initial estimates or the timing of such payments is materially different than its original estimates, we will prospectively adjust the amortization of the RP OM Liability and the RP Aficamten Liability and the effective interest rate. There are a number of factors that could materially affect the amount and timing of royalty payments, a number of which are not within our control. The RP OM Liability and the RP Aficamten Liability are recognized using significant unobservable inputs. These inputs are derived using internal management estimates developed based on third party data, including competitor sales data, and reflect management’s judgements, current market conditions surrounding competing products, and forecasts. The significant unobservable inputs include the estimated patient population, estimated selling price, estimated peak sales and sales ramp, the expected term of the royalty stream, timing of the expected launch and its impact on the royalty rate as well as the overall probability of success. A significant change in unobservable inputs could result in a material increase or decrease to the effective interest rate of the RP OM Liability and the RP Aficamten Liability. We review our assumptions on a regular basis and our estimates may change in the future as we refine and reassess our assumptions. Changes to the RP Aficamten Liability and the RP OM Liability are as follows (in thousands): 2023 2022 RP Aficamten Liability RP OM Liability RP Aficamten Liability RP OM Liability Beginning balance, January 1 $ 105,117 $ 195,384 $ — $ 179,072 Initial carrying value — — 89,571 — Interest accretion 5,363 917 2,286 4,278 Amortization of issuance costs — 33 — 28 Ending balance, March 31 110,480 196,334 91,857 183,378 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Note 7 — Debt Convertible Notes On November 13, 2019, we issued $ 138.0 million aggregate principal amount of 2026 Notes. On July 6, 2022, we issued $ 540.0 million aggregate principal amount of 2027 Notes and used approximately $ 140.3 million of the net proceeds from the offering of 2027 Notes and issued 8,071,343 shares of common stock to repurchase approximately $ 116.9 million aggregate principal amount of the 2026 Notes pursuant to privately negotiated exchange agreements entered into with certain holders of the 2026 Notes concurrently with the pricing of the offering of the 2027 Notes. As of March 31, 2023, there remain $ 21.1 million aggr egate principal amount of 2026 Notes outstanding. The 2026 Notes are unsecured obligations and bear interest at an annual rate of 4.0 % per year, payable semi-annually on May 15 and December 15 of each year, beginning May 15, 2020. The 2026 Notes are governed by an indenture we entered into with U.S. Bank National Association, as trustee. The 2026 Notes will mature on November 15, 2026 , unless earlier repurchased or redeemed by us or converted at the option of the holders. We may redeem the 2026 Notes prior to the maturity date but is not required to and no sinking fund is provided for the 2026 Notes. The 2026 Notes may be converted, under certain circumstances as described below, based on an initial conversion rate of 94.7811 shares of common stock per $ 1,000 principal amount (which represents an initial conversion price of $ 10.55 per share). The conversion rate for the 2026 Notes will be subject to adjustment upon the occurrence of certain specified events. In addition, upon the occurrence of a make-whole fundamental change (as defined in the indenture), we will, in certain circumstances, increase the conversion rate by a number of additional shares for a holder that elects to convert its notes in connection with such make-whole fundamental change. We received approximately $ 133.9 million in net proceeds, after deducting the initial purchasers’ discount, from the issuance of the 2026 Notes. The 2026 Notes may be converted at the option of the holder under any of the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on March 31, 2020 (and only during such calendar quarter), if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter exceeds 127.5 % of the last reported sale price of our common stock on November 7, 2019; (2) during the 5 consecutive business days immediately after any 10 consecutive trading day period (such 10 consecutive trading day period, the “measurement period”) if the trading price per $ 1,000 principal amount of 2026 Notes for each trading day of the measurement period was less than 98 % of the product of the last reported sale price per share of our common stock on such trading day and the conversion rate on such trading day; (3) upon the occurrence of certain corporate events or distributions on our common stock; (4) if we call the 2026 Notes for redemption; and (5) at any time from, and including, July 15, 2026 until the close of business on the scheduled trading day immediately before the maturity date, November 15, 2026. We will settle conversions by paying or delivering, as applicable, cash, shares of our common stock, or a combination of cash and shares of our common stock, at our election, based on the applicable conversion rate. The 2026 Notes are convertible at March 31, 2023 based on circumstance (1) defined above. The 2026 Notes will be redeemable, in whole or in part, at our option at any time, and from time to time, on or after November 20, 2023 and, in the case of any partial redemption, on or before the 60th scheduled trading day before the maturity date, at a cash redemption price equal to the principal amount of the 2026 Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date but only if the last reported sale price per share of our common stock exceeds 130% of the conversion price on (1) each of at least 20 trading days, whether or not consecutive, during the 30 consecutive trading days ending on, and including, the trading day immediately before the date we may send the related redemption notice; and (2) the trading day immediately before the date we may send such notice. If a “fundamental change” (as defined in the indenture agreement, dated November 13, 2019 between us and U.S. Bank National Association, as trustee, as supplemented by the first supplemental indenture dated as of November 13, 2019 between us and such trustee) occurs, then, subject to certain exceptions, holders may require us to repurchase their 2026 Notes at a cash repurchase price equal to the principal amount of the 2026 Notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the fundamental change repurchase date. The following table presents the total amo unt of interest cost recognized relating to the 2026 Notes (in thousands): Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 Contractual interest expense $ 211 $ 1,380 Amortization of debt issuance costs 23 145 Total interest expense recognized $ 234 $ 1,525 The effective interest rate of the 2026 Notes was 4.6 % for the three months ended March 31, 2023. As of March 31, 2023, the unamortized debt issuance cost for the 2026 Notes was $ 0.4 million and will be amortized over approximately 3.7 years. If the 2026 Notes were to be converted on March 31, 2023, the holders of the 2026 Notes would receive common shares of 2.6 million with an aggregate value of $ 89.9 million based on the Company’s closing stock price of $ 35.19 as of March 31, 2023. The if-converted value of the 2026 Notes exceeded its principal amount by $ 68.7 million as of March 31, 2023. The 2027 Notes ($ 540.0 million of aggregate principal) are our senior, unsecured obligations and are (i) senior in right of payment to our future indebtedness that is expressly subordinated to the 2027 Notes in right of payment; (ii) equal in right of payment with all of our indebtedness that is not so subordinated (including the 2026 Notes); (iii) effectively subordinated to our existing and future secured indebtedness, to the extent of the value of the collateral securing that indebtedness; and (iv) structurally subordinated to all existing and future indebtedness and other liabilities, including trade payables, and (to the extent we are not a holder thereof) preferred equity, if any, of our subsidiaries. The net proceeds of the 2027 Notes were approximately $ 523.6 million after deducting issuance costs related to the 2027 Notes. The 2027 Notes bear interest at a rate of 3.5 % per year, payable semiannually in arrears on January 1 and July 1 of each year, beginning on January 1, 2023. The 2027 Notes will mature on July 1, 2027 , unless earlier converted, redeemed or repurchased. The 2027 Notes are convertible into cash, shares of our common stock or a combination of cash and shares of our common stock, at our election, based on the applicable conversion rate(s). The initial conversion rate for the 2027 Notes is 19.5783 shares of our common stock per $ 1,000 principal amount of such Notes, which is equivalent to an initial conversion price of approximately $ 51.08 per share. Holders of the 2027 Notes may convert all or any portion of their convertible notes at their option only in the following circumstances: (i) during any calendar quarter (and only during such calendar quarter) commencing after the calendar quarter ending on September 30, 2022, if the last reported sale price per share of our common stock, $ 0.001 par value per share, exceeds 130 % of the conversion price for each of at least 20 trading days, whether or not consecutive, during the 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter; (ii) during the five consecutive business days immediately after any 10 consecutive trading day period (such 10 consecutive trading day period, the “measurement period”) if the trading price per $ 1,000 principal amount of 2027 Notes for each trading day of the measurement period was less than 98 % of the product of the last reported sale price per share of our common stock on such trading day and the conversion rate on such trading day; (iii) upon the occurrence of certain corporate events or distributions on our common stock, as described in the 2027 Indenture; (iv) if we call such 2027 Notes for redemption; and (v) at any time from, and including, March 1, 2027 until the close of business on the scheduled trading day immediately before the maturity date. We may not redeem the 2027 Notes at our option at any time before July 7, 2025. The 2027 Notes will be redeemable, in whole or in part (subject to the “Partial Redemption Limitation” (as defined in the 2027 Indenture)), at our option at any time, and from time to time, on or after July 7, 2025 and, in the case of a partial redemption, on or before the 60th scheduled trading day immediately before the maturity date, at a cash redemption price equal to the principal amount of the 2027 Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date, but only if the last reported sale price per share of our common stock exceeds 130% of the conversion price on (i) each of at least 20 trading days, whether or not consecutive, during the 30 consecutive trading days ending on, and including, the trading day immediately before the date we may send the related redemption notice; and (ii) the trading day immediately before the date we may send such notice. In addition, calling any of the 2027 Notes for redemption will constitute a Make-Whole Fundamental Change with respect to that convertible note, in which case the conversion rate applicable to the conversion of that Note will be increased in certain circumstances if it is converted after it is called for redemption. The conversion rate for the 2027 Notes shall not exceed 25.4517 shares per $ 1,000 principal amount of such Notes, subject to certain customary anti-dilution adjustments (as defined in the 2027 indenture). Pursuant to the Partial Redemption Limitation, we may not elect to redeem less than all of the outstanding 2027 Notes unless at least $ 75.0 million aggregate principal amount of 2027 Notes are outstanding and not subject to redemption as of the time we may send the related redemption notice. If a “Fundamental Change” (as defined in the 2027 Indenture) occurs, then, subject to a limited exception for certain cash mergers, noteholders may require us to repurchase their 2027 Notes at a cash repurchase price equal to the principal amount of the 2027 Notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the fundamental change repurchase date. The definition of Fundamental Change includes certain business combination transactions involving us and certain de-listing events with respect to our common stock. The following table presents the total amo unt of interest cost recognized relating to the 2027 Notes (in thousands): Three Months Ended March 31, 2023 Contractual interest expense $ 4,724 Amortization of debt issuance costs 682 Total interest expense recognized $ 5,406 The effective interest rate of the 2027 Notes was 4.2 % as of March 31, 2023. As of March 31, 2023, the unamortized debt issuance cost for the 2027 Notes was $ 14.2 million and will be amortized over approximately 4.3 years. If the 2027 Notes were to be converted on March 31, 2023, the holders of the 2027 Notes would receive common shares of 10.6 million with an aggregate value of $ 372.0 million based on our closing stock price of $ 35.19 as of March 31, 2023. The if-converted value of the 2027 Notes was below the principal value of the Notes of $ 540.0 million as of March 31, 2023. In addition, during the three months ended March 31, 2023, the conditions allowing holders of the Notes to convert were not met. As a result, the 2027 Notes are not convertible during the three months ended March 31, 2023. Future minimum payments under the 2027 Notes and 2026 Notes are (in thousands): Years ending December 31: 2027 Notes 2026 Notes 2023 remainder $ 9,450 $ 845 2024 18,900 845 2025 18,900 845 2026 18,900 21,978 2027 558,900 — Future minimum payments 625,050 24,513 Less: Interest ( 85,050 ) ( 3,381 ) Convertible notes, principal amount 540,000 21,132 Less: Debt costs on the convertible notes ( 14,190 ) ( 429 ) Net carrying amount of the convertible notes $ 525,810 $ 20,703 As of March 31, 2023, the estimated fair value of the 2027 Notes and 2026 Notes was $ 517.2 million and $ 72.5 million , respectively, and was based upon observable, Level 2 inputs, including pricing information from recent trades of the convertible notes. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | Note 8 — Stockholders’ Equity Equity Incentive Plan Our 2004 Plan provides for us to grant incentive stock options, non-statutory stock options, restricted stock, stock appreciation rights, restricted stock units, performance shares and performance units to employees, directors, and consultants. We may grant options for terms of up to ten years at prices not lower than 100 % of the fair market value of our common stock on the date of grant. Options granted to new employees generally vest 25 % after one year and monthly thereafter over a period of four years . Options granted to existing employees generally vest monthly over a period of four years . Our annual grant of stock-based compensation t akes place during the first quarter of each year. Our stock options and restricted stock units granted for the first quarter of 2023 was as follows: Grants Weighted Stock options 1,907,875 $ 39.21 Restricted stock units 913,483 $ 39.14 As of March 31, 2023, the total authorized shares under the 2004 Plan available for grant was 7.9 million . Stock-based compensation expense was $ 15.2 million and $ 9.0 million for the three months ended March 31, 2023 and 2022, respectively. Controlled Equity Offering Sales Agreement with Cantor Fitzgerald & Co. On March 1, 2023, we entered into the Amended ATM Facility, with Cantor, under which we may offer and sell, from time to time at our sole discretion, shares of the Common Stock having an aggregate offering price of up to $ 300.0 million through Cantor, as sales agent. The Amended ATM Facility amends, restates and supersedes the Controlled Equity Offering Sales Agreement dated as of March 6, 2019 between the Company and Cantor. Cantor may sell the Common Stock by any method that is deemed to be an “at the market offering” as defined in Rule 415 of the Securities Act of 1933, as amended, including sales made directly on the Nasdaq Global Select Market or any other trading market for our common stock. Cantor will use commercially reasonable efforts to sell the Common Stock from time to time, based upon instructions from us (including any price, time or size limits or other customary parameters or conditions we may impose). We will pay Cantor a commission of up to 3.0 % of the aggregate gross sales proceeds of any common stock sold through Cantor under the Amended ATM Facility, and also have provided Cantor with customary indemnification rights. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 9 — Commitments and Contingencies Operating Leases In July 2019, we entered into the Oyster Point Lease of office and laboratory space at a facility located in South San Francisco, California, and we entered into amendments to the Oyster Point Lease in 2020, 2021, and 2022. The Oyster Point Lease commenced on March 31, 2021 and upon commencement, we recognized a right-of-use asset of $ 77.9 million, a short-term lease liability of $ 3.7 million and a long-term lease liability of $ 85.3 million. The long-term lease liability includes $ 11.1 million of tenant improvement reimbursements as of March 31, 2021. The Oyster Point Lease has an expiration date of October 31, 2033 . As of March 31, 2023, the remaining lease term of the Oyster Point Lease is 10.6 years and the discount rate used to determine the related lease liability was 8.7 % . As of March 31, 2023, the total commitment of undiscounted lease payments for the Oyster Point Lease was $ 217.4 million . In January 2022, we entered into a series of lease agreements with the sub-landlord and landlord and leased an office space at a facility located in Radnor, Pennsylvania (the "Radnor Lease"). The Radnor Lease commenced on September 1, 2022 , when the leasehold improvements were substantially completed, and we gained control over the use of the underlying assets. Upon commencement, we recognized a right-of-use asset of $ 3.4 million, a short-term lease liability of $ 0.4 million and a long-term lease liability of $ 1.9 million. The right-of-use asset includes $ 1.1 million of lease prepayments made before the commencement date. The Radnor Lease has an expiration date of July 31, 2027 . As of March 31, 2023, the remaining lease term of the Radnor Lease was 4.3 years and the discount rate used to determine the related lease liability was 8.3 % . The total commitment of undiscounted lease payments for the Radnor Lease was $ 2.6 million as of March 31, 2023 . |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 10 — Subsequent Events None. |
Organization and Significant _2
Organization and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Cytokinetics, Incorporated was incorporated under the laws of the state of Delaware on August 5, 1997. The Company is a late-stage biopharmaceutical company focused on the discovery and development of novel small molecule therapeutics that modulate muscle function for the potential treatment of serious diseases and medical conditions. Our financial statements contemplate the conduct of our operations in the normal course of business. We have incurred an accumulated deficit of approximately $ 1.7 billion since inception and there can be no assurance that we will attain profitability. We had a net loss of $ 131.3 million and net cash used in operations of $ 122.3 million for the three months ended March 31, 2023. Cash, cash equivalents, and investments decreased to $ 704.4 million as of March 31, 2023 from $ 829.3 million as of December 31, 2022. We anticipate that we will have operating losses and net cash outflows in future periods. We are subject to risks common to late-stage biopharmaceutical companies including, but not limited to, development of new drug candidates, dependence on key personnel, and the ability to obtain additional capital as needed to fund our future plans. Our liquidity will be impaired if sufficient additional capital is not available on terms acceptable to us. To date, we have funded operations primarily through sales of our common stock, contract payments under our collaboration agreements, sales of future revenues and royalties, debt financing arrangements, government grants and interest income. Until we achieve profitable operations, we intend to continue to fund operations through payments from strategic collaborations, additional sales of equity securities, grants and debt financings. We have never generated revenues from commercial sales of our drugs and may not have drugs to market for at least several years, if ever. Our success is dependent on our ability to enter into new strategic collaborations and/or raise additional capital and to successfully develop and market one or more of our drug candidates. We cannot be certain that sufficient funds will be available from such a financing or through a collaborator when required or on satisfactory terms. Additionally, there can be no assurance that our drug candidates will be accepted in the marketplace or that any future products can be developed or manufactured at an acceptable cost. These factors could have a material adverse effect on our future financial results, financial position and cash flows. Based on the current status of our research and development activities, we believe that our existing cash, cash equivalents and investments will be sufficient to fund cash requirements for at least the next 12 months after the issuance of this Quarterly Report on Form 10-Q. If, at any time, our prospects for financing our research and development programs decline, we may decide to reduce research and development expenses by delaying, discontinuing or reducing our funding of one or more of our research or development programs. Alternatively, we might raise funds through strategic collaborations, public or private financings or other arrangements. Such funding, if needed, may not be available on favorable terms, or at all. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. |
Basis of Presentation | Basis of Presentation Our condensed consolidated financial statements include the accounts of Cytokinetics and our wholly-owned subsidiaries. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with GAAP for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. The financial statements include all adjustments (consisting only of normal recurring adjustments) that management believes are necessary for the fair statement of our financial information. These interim results are not necessarily indicative of results to be expected for the full fiscal year or any future interim period. The balance sheet as of December 31, 2022 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements. The financial statements and related disclosures have been prepared with the presumption that users of the interim financial statements have read or have access to the audited financial statements for the preceding fiscal year. Accordingly, these financial statements should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s Form 10-K for the year ended December 31, 2022 , as filed with the Securities and Exchange Commission. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. We evaluate our estimates on an ongoing basis. We base our estimates on our historical experience and also on assumptions that we believe are reasonable; however, actual results could significantly differ from those estimates. |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Instruments Excluded from the Computation of Diluted Net Loss Per Share | The following instruments were excluded from the computation of diluted net loss per share for the periods presented because their effect would have been antidilutive (in thousands): March 31, 2023 March 31, 2022 Options to purchase common stock 12,362 10,855 Warrants to purchase common stock 13 47 Restricted stock and performance units 1,438 1,520 Shares issuable related to the ESPP 49 31 Shares issuable upon conversion of 2026 Notes 2,554 16,675 Shares issuable upon conversion of 2027 Notes 10,572 — Total shares 26,988 29,128 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value of Financial Assets Consists of Cash Equivalents and Investments Classified as Available-for-sale Securities Measured on Recurring Basis | The follow tables set forth the fair value of our financial assets, which consists of cash equivalents and investments classified as available-for-sale securities, that were measured on a recurring basis (in thousands): March 31, 2023 Fair Value Amortized Unrealized Unrealized Fair Money market funds Level 1 $ 93,659 $ — $ — $ 93,659 U.S. Treasury securities Level 1 125,936 45 ( 336 ) 125,645 U.S. and non-U.S. government agency bonds Level 2 170,752 138 ( 646 ) 170,244 Commercial paper Level 2 217,340 14 ( 365 ) 216,989 U.S. and non-U.S. corporate obligations Level 2 90,368 — ( 495 ) 89,873 $ 698,055 $ 197 $ ( 1,842 ) $ 696,410 December 31, 2022 Fair Value Amortized Unrealized Unrealized Fair Money market funds Level 1 $ 45,887 $ — $ — $ 45,887 U.S. Treasury securities Level 1 172,568 — ( 1,102 ) 171,466 U.S. Treasury securities backed repurchase agreements Level 2 16,003 — — 16,003 U.S. and non-U.S. government agency bonds Level 2 136,773 12 ( 889 ) 135,896 Commercial paper Level 2 329,359 28 ( 431 ) 328,956 U.S. and non-U.S. corporate obligations Level 2 128,594 — ( 1,209 ) 127,385 $ 829,184 $ 40 $ ( 3,631 ) $ 825,593 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Reconciliation of Cash, Cash Equivalents, and Restricted Cash Equivalents | A reconciliation of cash, cash equivalents, and restricted cash reported in the accompanying condensed consolidated balance sheets to the amount reported within the accompanying condensed consolidated statements of cash flows was as follows (in thousands): March 31, 2023 December 31, 2022 Cash and cash equivalents $ 101,616 $ 65,582 Restricted cash 1,600 1,600 Total cash, cash equivalents, and restricted cash as reported within our consolidated statement of cash flows $ 103,216 $ 67,182 |
Summary of Accrued Liabilities | Accrued liabilities were as follows (in thousands): March 31, 2023 December 31, 2022 Accrued liabilities: Clinical and preclinical costs $ 11,265 $ 16,105 Compensation related 13,655 21,767 Other accrued expenses 10,712 6,224 Total accrued liabilities $ 35,632 $ 44,096 |
Agreements with Royalty Pharma
Agreements with Royalty Pharma (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Agreements with Royalty Pharma [Abstract] | |
Schedule of Total Consideration | The total consideration was allocated as follows (in thousands): Fair Value Proceeds Allocation Units of Accounting: Revenue Participation Right Purchase Agreement $ 69,498 $ 100,000 $ 89,571 Development Funding Loan Agreement 46,887 50,000 60,429 Total consideration $ 116,385 $ 150,000 $ 150,000 |
Schedule of Future Minimum Payments under Term Loan Agreement | Future minimum payments under the existing borrowing under RP Loan Agreement are (in thousands): Years ending December 31: 2023 remainder $ 1,440 2024 10,080 2025 11,520 2026 11,520 2027 11,520 Thereafter 48,960 Future minimum payments 95,040 Less: Unamortized interest and loan costs ( 29,024 ) Term Loan, net $ 66,016 |
Schedule of Activity within Liabilities Related to Sale of Future Royalties | Changes to the RP Aficamten Liability and the RP OM Liability are as follows (in thousands): 2023 2022 RP Aficamten Liability RP OM Liability RP Aficamten Liability RP OM Liability Beginning balance, January 1 $ 105,117 $ 195,384 $ — $ 179,072 Initial carrying value — — 89,571 — Interest accretion 5,363 917 2,286 4,278 Amortization of issuance costs — 33 — 28 Ending balance, March 31 110,480 196,334 91,857 183,378 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Interest Cost Relating to Notes | The following table presents the total amo unt of interest cost recognized relating to the 2026 Notes (in thousands): Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 Contractual interest expense $ 211 $ 1,380 Amortization of debt issuance costs 23 145 Total interest expense recognized $ 234 $ 1,525 The following table presents the total amo unt of interest cost recognized relating to the 2027 Notes (in thousands): Three Months Ended March 31, 2023 Contractual interest expense $ 4,724 Amortization of debt issuance costs 682 Total interest expense recognized $ 5,406 |
Schedule of Maturities of Notes | Future minimum payments under the 2027 Notes and 2026 Notes are (in thousands): Years ending December 31: 2027 Notes 2026 Notes 2023 remainder $ 9,450 $ 845 2024 18,900 845 2025 18,900 845 2026 18,900 21,978 2027 558,900 — Future minimum payments 625,050 24,513 Less: Interest ( 85,050 ) ( 3,381 ) Convertible notes, principal amount 540,000 21,132 Less: Debt costs on the convertible notes ( 14,190 ) ( 429 ) Net carrying amount of the convertible notes $ 525,810 $ 20,703 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Stock Options and Restricted Stock Units Granted | Our annual grant of stock-based compensation t akes place during the first quarter of each year. Our stock options and restricted stock units granted for the first quarter of 2023 was as follows: Grants Weighted Stock options 1,907,875 $ 39.21 Restricted stock units 913,483 $ 39.14 |
Organization and Significant _3
Organization and Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Summary Of Significant Accounting Policies [Line Items] | |||
Accumulated deficit incurred | $ (1,717,283) | $ (1,585,994) | |
Cash requirements term | 12 months | ||
Net loss | $ (131,289) | $ (89,445) | |
Cash, cash equivalents and investments | 704,400 | $ 829,300 | |
Net cash provided by (used in) operating activities | $ 122,286 | $ 26,811 |
Net Loss Per Share - Instrument
Net Loss Per Share - Instruments Excluded from the Computation of Diluted Net Loss Per Share (Detail) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total shares | 26,988 | 29,128 |
Options to Purchase Common Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total shares | 12,362 | 10,855 |
Warrants to Purchase Common Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total shares | 13 | 47 |
Restricted Stock and Performance Units [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total shares | 1,438 | 1,520 |
Shares Issuable Related to the ESSP [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total shares | 49 | 31 |
2026 Notes [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total shares | 2,554 | 16,675 |
2027 Notes [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total shares | 10,572 | 0 |
Research and Development Arra_2
Research and Development Arrangements - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Apr. 25, 2022 | Dec. 20, 2021 | Apr. 23, 2020 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2022 | Sep. 30, 2022 | Jul. 14, 2020 | |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Total revenues | $ 4,613,000 | $ 1,148,000 | ||||||||
Accounts receivable | 1,006,000 | $ 147,000 | ||||||||
Amount received as milestone payment | 2,500,000 | |||||||||
Ji Xing Omecamtiv Mecarbil License and Collaboration Agreement [Member] | ||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Nonrefundable payment obligation | $ 50,000,000 | |||||||||
Amount received as milestone payment | $ 50,000,000 | |||||||||
Ji Xing Aficamten License and Collaboration Agreement [Member] | ||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Upfront payment received | $ 25,000,000 | |||||||||
Royalty Purchase Agreement [Member] | ||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Total revenues | $ 87,000,000 | |||||||||
Sale of interest in future royalties | 85,000,000 | |||||||||
Fair Value of Royalty | $ 87,000,000 | |||||||||
Long-term deferred revenue | $ 87,000,000 | |||||||||
Common Stock Purchase Agreement [Member] | ||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Issuance of common stock upon private placement, shares | 511,182 | |||||||||
Shares Issued, price per share | $ 39.125 | |||||||||
Net proceeds of issuance of common stock | $ 20,000,000 | |||||||||
Common stock purchase agreement date | Dec. 20, 2021 | |||||||||
Excess amount paid over the fair value of the shares | $ 4,900,000 | |||||||||
Fair value of common stock | 15,100,000 | |||||||||
Maximum [Member] | Ji Xing Omecamtiv Mecarbil License and Collaboration Agreement [Member] | ||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Potential additional payments receivable | 330,000,000 | |||||||||
Maximum [Member] | Ji Xing Aficamten License and Collaboration Agreement [Member] | ||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Potential additional payments receivable | $ 200,000,000 | |||||||||
2016 Astellas Amendment [Member] | ||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Reimbursement of clinical development costs | 11,100,000 | |||||||||
2016 Astellas Amendment [Member] | Maximum [Member] | ||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Payment of development costs for clinical trials of reldesemtiv | $ 12,000,000 | |||||||||
Rights Granted [Member] | Ji Xing Omecamtiv Mecarbil License and Collaboration Agreement [Member] | ||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Nonrefundable payment obligation | 40,000,000 | |||||||||
New Drug Application [Member] | Ji Xing Omecamtiv Mecarbil License and Collaboration Agreement [Member] | ||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Nonrefundable payment obligation | $ 10,000,000 | |||||||||
License Revenues [Member] | ||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Total revenues | $ 54,900,000 | |||||||||
License Revenues [Member] | Ji Xing Aficamten License and Collaboration Agreement [Member] | ||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Total revenues | $ 0 | $ 36,500,000 | ||||||||
Research and Development Revenues [Member] | ||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Total revenues | 2,113,000 | 1,148,000 | ||||||||
Astellas [Member] | Accounting Standards Update 2014-09 | ||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Accounts receivable | 1,000,000 | $ 0 | ||||||||
Astellas [Member] | Research and Development Revenues [Member] | ||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||
Total revenues | $ 1,800,000 | $ 1,100,000 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Fair Value of Financial Assets Consists of Cash Equivalents and Investments Classified as Available-for-sale Securities Measured on Recurring Basis (Detail) - Fair Value, Measurements, Recurring [Member] - Cash and Cash Equivalents and Investments [Member] - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Amortized Cost | $ 698,055 | $ 829,184 |
Unrealized Gains | 197 | 40 |
Unrealized Losses | (1,842) | (3,631) |
Fair Value | 696,410 | 825,593 |
Money Market Funds [Member] | Fair Value Measurements Using Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Amortized Cost | 93,659 | 45,887 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 93,659 | 45,887 |
U.S. Treasury Securities [Member] | Fair Value Measurements Using Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Amortized Cost | 125,936 | 172,568 |
Unrealized Gains | 45 | 0 |
Unrealized Losses | (336) | (1,102) |
Fair Value | 125,645 | 171,466 |
U.S. Treasury Securities Backed Repurchase Agreements [Member] | Fair Value Measurements Using Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Amortized Cost | 16,003 | |
Unrealized Gains | 0 | |
Unrealized Losses | 0 | |
Fair Value | 16,003 | |
U.S. and Non-U.S. Government Agency Bonds [Member] | Fair Value Measurements Using Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Amortized Cost | 170,752 | 136,773 |
Unrealized Gains | 138 | 12 |
Unrealized Losses | (646) | (889) |
Fair Value | 170,244 | 135,896 |
Commercial Paper [Member] | Fair Value Measurements Using Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Amortized Cost | 217,340 | 329,359 |
Unrealized Gains | 14 | 28 |
Unrealized Losses | (365) | (431) |
Fair Value | 216,989 | 328,956 |
U.S. and Non-U.S. Corporate Obligations [Member] | Fair Value Measurements Using Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Amortized Cost | 90,368 | 128,594 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (495) | (1,209) |
Fair Value | $ 89,873 | $ 127,385 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | ||
Credit losses on debt securities | $ 0 | $ 0 |
Balance Sheet Components - Reco
Balance Sheet Components - Reconciliation of Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract] | ||
Cash and cash equivalents | $ 101,616 | $ 65,582 |
Restricted cash | 1,600 | 1,600 |
Total cash, cash equivalents, and restricted cash as reported within our consolidated statement of cash flows | $ 103,216 | $ 67,182 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract] | ||
Restricted cash | $ 1,600 | $ 1,600 |
Balance Sheet Components - Summ
Balance Sheet Components - Summary of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Accrued liabilities: | ||
Clinical and preclinical costs | $ 11,265 | $ 16,105 |
Compensation related | 13,655 | 21,767 |
Other accrued expenses | 10,712 | 6,224 |
Total accrued liabilities | $ 35,632 | $ 44,096 |
Agreements with Royalty Pharm_2
Agreements with Royalty Pharma - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | ||||||
Jan. 07, 2022 | Feb. 28, 2017 | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Jul. 01, 2023 | Feb. 28, 2023 | Dec. 31, 2021 | |
Liabilities Related to Revenue Participation Right Purchase Agreements [Line Items] | ||||||||
Arrangement consideration of debt transaction | $ 150,000 | |||||||
Interest expense | $ 6,961 | $ 2,746 | ||||||
Liabilities | 1,118,835 | $ 1,122,675 | ||||||
RP Loan Agreement [Member] | ||||||||
Liabilities Related to Revenue Participation Right Purchase Agreements [Line Items] | ||||||||
Long term debt | $ 66,016 | |||||||
2022 Royalty Pharma Transactions [Member] | ||||||||
Liabilities Related to Revenue Participation Right Purchase Agreements [Line Items] | ||||||||
Milestone payment | 50,000 | |||||||
2022 Royalty Pharma Transactions [Member] | RP Aficamten RPA, RPI ICAV [Member] | ||||||||
Liabilities Related to Revenue Participation Right Purchase Agreements [Line Items] | ||||||||
Upfront payment | 50,000 | |||||||
Purchased rights to certain revenue streams from net sales in consideration payment | $ 50,000 | |||||||
Percentage of net sales payable | 4.50% | |||||||
4.5% of net revenue to be receivable from annual worldwide net sales | $ 1,000,000 | |||||||
Percentage of net sales payable for excess of annual worldwide net sales | 3.50% | |||||||
3.5% of net sales payable for excess of annual worldwide net sales | $ 1,000,000 | |||||||
Imputed rate of interest on unamortized portion of liability | 22.40% | 22.40% | ||||||
2022 Royalty Pharma Transactions [Member] | RP Aficamten RPA, RPI ICAV [Member] | oHCM [Member] | ||||||||
Liabilities Related to Revenue Participation Right Purchase Agreements [Line Items] | ||||||||
Amount payable of first pivotal clinical trail | 50,000 | |||||||
2022 Royalty Pharma Transactions [Member] | RP Aficamten RPA, RPI ICAV [Member] | nHCM [Member] | ||||||||
Liabilities Related to Revenue Participation Right Purchase Agreements [Line Items] | ||||||||
Amount payable of first pivotal clinical trail | 50,000 | |||||||
2022 Royalty Pharma Transactions [Member] | RP Aficamten RPA, RPI ICAV [Member] | Maximum [Member] | ||||||||
Liabilities Related to Revenue Participation Right Purchase Agreements [Line Items] | ||||||||
Purchased rights to certain revenue streams from net sales in consideration payment | $ 150,000 | |||||||
2022 Royalty Pharma Transactions [Member] | RP Aficamten RPA, RPI ICAV [Member] | Change in Accounting Estimate [Member] | ||||||||
Liabilities Related to Revenue Participation Right Purchase Agreements [Line Items] | ||||||||
Non-cash interest expense recognized | $ 5,400 | |||||||
2022 Royalty Pharma Transactions [Member] | RP Loan Agreement [Member] | ||||||||
Liabilities Related to Revenue Participation Right Purchase Agreements [Line Items] | ||||||||
Long term debt | $ 66,000 | |||||||
Term loan, maturity year | 10 years | |||||||
Debt instrument effective interest rate | 7.65% | |||||||
Applicable prepayment charges on term loan | $ 34,600 | |||||||
Debt Instrument, Face Amount | $ 50,000 | |||||||
2022 Royalty Pharma Transactions [Member] | RP Loan Agreement [Member] | Term Loan Tranche 1 Tranche 4 and Tranche 5 [Member] | ||||||||
Liabilities Related to Revenue Participation Right Purchase Agreements [Line Items] | ||||||||
Repayable loan percentage to principal amount Including interest and other fees | 190% | |||||||
2022 Royalty Pharma Transactions [Member] | RP Loan Agreement [Member] | Term Loan Tranche 2 and Tranche 3 [Member] | ||||||||
Liabilities Related to Revenue Participation Right Purchase Agreements [Line Items] | ||||||||
Repayable loan percentage to principal amount Including interest and other fees | 200% | |||||||
Royalty Purchase Finance Trust Agreement [Member] | ||||||||
Liabilities Related to Revenue Participation Right Purchase Agreements [Line Items] | ||||||||
Imputed rate of interest on unamortized liability | 1.90% | 8.50% | ||||||
Non-cash interest expense recognized | $ 92,300 | |||||||
Liabilities related to revenue participation right purchase agreements, net | $ 196,334 | $ 195,384 | $ 183,378 | $ 179,072 | ||||
Royalty Purchase Finance Trust Agreement [Member] | Maximum [Member] | ||||||||
Liabilities Related to Revenue Participation Right Purchase Agreements [Line Items] | ||||||||
Increase in royalty rate | 5.50% | |||||||
Royalty Purchase Finance Trust Agreement [Member] | Change in Accounting Estimate [Member] | ||||||||
Liabilities Related to Revenue Participation Right Purchase Agreements [Line Items] | ||||||||
Imputed rate of interest on unamortized liability | 1.90% | 8.50% | ||||||
Non-cash interest expense recognized | $ 900 | $ 4,000 | ||||||
Decrease in non-cash interest expense | $ 3,100 | |||||||
CRL Option [Member] | 2022 Royalty Pharma Transactions [Member] | RP Loan Agreement [Member] | ||||||||
Liabilities Related to Revenue Participation Right Purchase Agreements [Line Items] | ||||||||
Term loan, maximum borrowing capacity | $ 300,000 | |||||||
Term loan, current borrowing capacity | 50,000 | |||||||
Term loan, remaining borrowing capacity | 250,000 | |||||||
CRL Option [Member] | 2022 Royalty Pharma Transactions [Member] | RP Loan Agreement [Member] | Term Loan Tranche 2 [Member] | ||||||||
Liabilities Related to Revenue Participation Right Purchase Agreements [Line Items] | ||||||||
Long term debt | 50,000 | |||||||
CRL Option [Member] | 2022 Royalty Pharma Transactions [Member] | RP Loan Agreement [Member] | Term Loan Tranche 3 [Member] | ||||||||
Liabilities Related to Revenue Participation Right Purchase Agreements [Line Items] | ||||||||
Long term debt | 25,000 | |||||||
CRL Option [Member] | 2022 Royalty Pharma Transactions [Member] | RP Loan Agreement [Member] | Term Loan Tranche 4 [Member] | ||||||||
Liabilities Related to Revenue Participation Right Purchase Agreements [Line Items] | ||||||||
Long term debt | 75,000 | |||||||
CRL Option [Member] | 2022 Royalty Pharma Transactions [Member] | RP Loan Agreement [Member] | Term Loan Tranche 5 [Member] | ||||||||
Liabilities Related to Revenue Participation Right Purchase Agreements [Line Items] | ||||||||
Long term debt | $ 100,000 | |||||||
CRL Option [Member] | 2022 Royalty Pharma Transactions [Member] | RP Loan Agreement [Member] | Term Loan Tranche 4 and 5 [Member] | ||||||||
Liabilities Related to Revenue Participation Right Purchase Agreements [Line Items] | ||||||||
Term loan, remaining borrowing capacity | $ 175,000 | |||||||
CRL Option [Member] | Royalty Purchase Finance Trust Agreement [Member] | ||||||||
Liabilities Related to Revenue Participation Right Purchase Agreements [Line Items] | ||||||||
Cash payment under royalty agreement | $ 90,000 | |||||||
Purchase of common stock shares | 875,656 | |||||||
Stock issued during period, value, issued for services | $ 10,000 | |||||||
Liabilities | $ 92,300 | |||||||
Additional percent of royalty on net sale | 1% | |||||||
CRL Option [Member] | Royalty Purchase Finance Trust Agreement [Member] | Maximum [Member] | ||||||||
Liabilities Related to Revenue Participation Right Purchase Agreements [Line Items] | ||||||||
Percent of royalty on net sale | 5.50% | |||||||
CRL Option [Member] | Royalty Purchase Finance Trust Agreement [Member] | Minimum [Member] | ||||||||
Liabilities Related to Revenue Participation Right Purchase Agreements [Line Items] | ||||||||
Percent of royalty on net sale | 4.50% | |||||||
CRL Option [Member] | Royalty Purchase Finance Trust Agreement [Member] | Forecast [Member] | Maximum [Member] | ||||||||
Liabilities Related to Revenue Participation Right Purchase Agreements [Line Items] | ||||||||
Increase in royalty rate | 5.50% |
Agreements with Royalty Pharm_3
Agreements with Royalty Pharma - Schedule of Total Consideration (Detail) - 2022 Royalty Pharma Transactions [Member] $ in Thousands | Jan. 07, 2022 USD ($) |
Debt Instrument [Line Items] | |
Consideration Fair Value | $ 116,385 |
Consideration proceeds | 150,000 |
Consideration allocation | 150,000 |
Revenue Participation Right Purchase Agreements | |
Debt Instrument [Line Items] | |
Consideration Fair Value | 69,498 |
Consideration proceeds | 100,000 |
Consideration allocation | 89,571 |
Development Funding Loan Agreement | |
Debt Instrument [Line Items] | |
Consideration Fair Value | 46,887 |
Consideration proceeds | 50,000 |
Consideration allocation | $ 60,429 |
Agreements with Royalty Pharm_4
Agreements with Royalty Pharma - Schedule of Future Minimum Payments under Term Loan Agreement (Detail) - RP Loan Agreement [Member] $ in Thousands | Mar. 31, 2023 USD ($) |
Debt Instrument [Line Items] | |
2023 remainder | $ 1,440 |
2024 | 10,080 |
2025 | 11,520 |
2026 | 11,520 |
2027 | 11,520 |
Thereafter | 48,960 |
Future minimum payments | 95,040 |
Less: Unamortized interest and loan costs | (29,024) |
Future minimum payments | $ 66,016 |
Agreements with Royalty Pharm_5
Agreements with Royalty Pharma - Schedule Represents Allocation of Transaction Consideration on a Relative Fair Value Basis to the Liability and the Common Stock (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
RP Aficamten Liability | ||
Royalty Liability [Line Items] | ||
Liabilities related to revenue participation right purchase agreements, net beginning balance | $ 105,117 | $ 0 |
Initial carrying value | 0 | 89,571 |
Interest accretion | 5,363 | 2,286 |
Amortization of issuance costs | 0 | 0 |
Liabilities related to revenue participation right purchase agreements, net ending balance | 110,480 | 91,857 |
RPOM Liability | ||
Royalty Liability [Line Items] | ||
Liabilities related to revenue participation right purchase agreements, net beginning balance | 195,384 | 179,072 |
Initial carrying value | 0 | 0 |
Interest accretion | 917 | 4,278 |
Amortization of issuance costs | 33 | 28 |
Liabilities related to revenue participation right purchase agreements, net ending balance | $ 196,334 | $ 183,378 |
Debt - Additional Information (
Debt - Additional Information (Detail) | 3 Months Ended | ||||
Jul. 06, 2022 USD ($) $ / shares shares | Nov. 13, 2019 USD ($) $ / shares shares | Mar. 31, 2023 USD ($) Days $ / shares shares | Mar. 31, 2022 USD ($) | Dec. 31, 2022 $ / shares | |
Debt Instrument [Line Items] | |||||
Interest expense | $ 6,961,000 | $ 2,746,000 | |||
Loss on settlement of debt | $ (2,693,000) | ||||
Common stock, par value | $ / shares | $ 0.001 | $ 0.001 | |||
Conversion of units | $ 372,000,000 | ||||
2026 Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal amount of original loan | $ 138,000,000 | 21,132,000 | |||
Underwritten public offering of common stock, net of discounts, commissions and offering cost, shares | shares | 8,071,343 | ||||
Repurchase of principal amount of original loan | $ 116,900,000 | ||||
Aggregate principal amount remaining | $ 21,100,000 | ||||
Number of instalments description | payable semi-annually on May 15 and December 15 of each year, beginning May 15, 2020. | ||||
Convertible notes, maturity date | Nov. 15, 2026 | ||||
Convertible debt, fair value | $ 72,500,000 | ||||
Convertible notes, interest rate | 4% | ||||
Convertible notes, sinking fund | $ 0 | ||||
Convertible notes, shares issued | shares | 94.7811 | ||||
Convertible notes, principal amount | $ 1,000 | ||||
Convertible notes, initial conversion price | $ / shares | $ 10.55 | ||||
Convertible notes, type of equity security issued | common stock | ||||
Net proceeds from convertible notes, net of debt discount and issuance costs | $ 133,900,000 | ||||
Convertible notes, conversion description | The 2026 Notes may be converted at the option of the holder under any of the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on March 31, 2020 (and only during such calendar quarter), if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter exceeds 127.5% of the last reported sale price of our common stock on November 7, 2019; (2) during the 5 consecutive business days immediately after any 10 consecutive trading day period (such 10 consecutive trading day period, the “measurement period”) if the trading price per $1,000 principal amount of 2026 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price per share of our common stock on such trading day and the conversion rate on such trading day; (3) upon the occurrence of certain corporate events or distributions on our common stock; (4) if we call the 2026 Notes for redemption; and (5) at any time from, and including, July 15, 2026 until the close of business on the scheduled trading day immediately before the maturity date, November 15, 2026. We will settle conversions by paying or delivering, as applicable, cash, shares of our common stock, or a combination of cash and shares of our common stock, at our election, based on the applicable conversion rate. The 2026 Notes are convertible at March 31, 2023 based on circumstance (1) defined above. | ||||
Convertible notes, redemption description | The 2026 Notes will be redeemable, in whole or in part, at our option at any time, and from time to time, on or after November 20, 2023 and, in the case of any partial redemption, on or before the 60th scheduled trading day before the maturity date, at a cash redemption price equal to the principal amount of the 2026 Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date but only if the last reported sale price per share of our common stock exceeds 130% of the conversion price on (1) each of at least 20 trading days, whether or not consecutive, during the 30 consecutive trading days ending on, and including, the trading day immediately before the date we may send the related redemption notice; and (2) the trading day immediately before the date we may send such notice. If a “fundamental change” (as defined in the indenture agreement, dated November 13, 2019 between us and U.S. Bank National Association, as trustee, as supplemented by the first supplemental indenture dated as of November 13, 2019 between us and such trustee) occurs, then, subject to certain exceptions, holders may require us to repurchase their 2026 Notes at a cash repurchase price equal to the principal amount of the 2026 Notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the fundamental change repurchase date. | ||||
Debt instrument, unamortized debt issuance cost | $ 400,000 | ||||
Unamortized debt discount amortization period | 3 years 8 months 12 days | ||||
Conversion of units | shares | 2,600,000 | ||||
Conversion of units | $ 89,900,000 | ||||
Stock price | $ / shares | $ 35.19 | ||||
If-converted value in excess of principal amount | $ 68,700,000 | ||||
2026 Notes [Member] | Liability [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument effective interest rate | 4.60% | ||||
2026 Notes [Member] | Debt Instrument Convertible Covenant One [Member] | |||||
Debt Instrument [Line Items] | |||||
Convertible notes, percentage of conversion price | 127.50% | ||||
Convertible notes, trading days | Days | 20 | ||||
Convertible notes, consecutive trading days | Days | 30 | ||||
2026 Notes [Member] | Debt Instrument Convertible Covenant Two [Member] | |||||
Debt Instrument [Line Items] | |||||
Convertible notes, percentage of last reported sale price of common stock | 98% | ||||
Convertible notes, trading days | Days | 5 | ||||
Convertible notes, consecutive trading days | Days | 10 | ||||
2027 Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal amount of original loan | 540,000,000 | $ 540,000,000 | |||
Payment associated with convertible notes | $ 140,300,000 | ||||
Number of instalments description | payable semiannually in arrears on January 1 and July 1 of each year, beginning on January 1, 2023. | ||||
Convertible notes, maturity date | Jul. 01, 2027 | ||||
Convertible debt, fair value | 517,200,000 | ||||
Convertible notes, interest rate | 3.50% | ||||
Convertible notes, shares issued | shares | 19.5783 | ||||
Convertible notes, principal amount | $ 1,000 | $ 1,000 | |||
Convertible notes, initial conversion price | $ / shares | $ 51.08 | ||||
Convertible notes, type of equity security issued | common stock | ||||
Net proceeds from convertible notes, net of debt discount and issuance costs | $ 523,600,000 | ||||
Convertible notes, conversion description | The 2027 Notes are convertible into cash, shares of our common stock or a combination of cash and shares of our common stock, at our election, based on the applicable conversion rate(s). The initial conversion rate for the 2027 Notes is 19.5783 shares of our common stock per $1,000 principal amount of such Notes, which is equivalent to an initial conversion price of approximately $51.08 per share. Holders of the 2027 Notes may convert all or any portion of their convertible notes at their option only in the following circumstances: (i) during any calendar quarter (and only during such calendar quarter) commencing after the calendar quarter ending on September 30, 2022, if the last reported sale price per share of our common stock, $0.001 par value per share, exceeds 130% of the conversion price for each of at least 20 trading days, whether or not consecutive, during the 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter; (ii) during the five consecutive business days immediately after any 10 consecutive trading day period (such 10 consecutive trading day period, the “measurement period”) if the trading price per $1,000 principal amount of 2027 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price per share of our common stock on such trading day and the conversion rate on such trading day; (iii) upon the occurrence of certain corporate events or distributions on our common stock, as described in the 2027 Indenture; (iv) if we call such 2027 Notes for redemption; and (v) at any time from, and including, March 1, 2027 until the close of business on the scheduled trading day immediately before the maturity date. | ||||
Convertible notes, redemption description | We may not redeem the 2027 Notes at our option at any time before July 7, 2025. The 2027 Notes will be redeemable, in whole or in part (subject to the “Partial Redemption Limitation” (as defined in the 2027 Indenture)), at our option at any time, and from time to time, on or after July 7, 2025 and, in the case of a partial redemption, on or before the 60th scheduled trading day immediately before the maturity date, at a cash redemption price equal to the principal amount of the 2027 Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date, but only if the last reported sale price per share of our common stock exceeds 130% of the conversion price on (i) each of at least 20 trading days, whether or not consecutive, during the 30 consecutive trading days ending on, and including, the trading day immediately before the date we may send the related redemption notice; and (ii) the trading day immediately before the date we may send such notice. In addition, calling any of the 2027 Notes for redemption will constitute a Make-Whole Fundamental Change with respect to that convertible note, in which case the conversion rate applicable to the conversion of that Note will be increased in certain circumstances if it is converted after it is called for redemption. The conversion rate for the 2027 Notes shall not exceed 25.4517 shares per $1,000 principal amount of such Notes, subject to certain customary anti-dilution adjustments (as defined in the 2027 indenture). Pursuant to the Partial Redemption Limitation, we may not elect to redeem less than all of the outstanding 2027 Notes unless at least $75.0 million aggregate principal amount of 2027 Notes are outstanding and not subject to redemption as of the time we may send the related redemption notice. | ||||
Debt instrument, unamortized debt issuance cost | $ 14,200,000 | ||||
Unamortized debt discount amortization period | 4 years 3 months 18 days | ||||
Conversion of units | shares | 10,600,000 | ||||
Stock price | $ / shares | $ 35.19 | ||||
If-converted value in excess of principal amount | $ 540,000,000 | ||||
2027 Notes [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Convertible notes, shares issued | shares | 25.4517 | ||||
2027 Notes [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount of notes outstanding | $ 75,000,000 | ||||
2027 Notes [Member] | Liability [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument effective interest rate | 4.20% | ||||
2027 Notes [Member] | Debt Instrument Convertible Covenant One [Member] | |||||
Debt Instrument [Line Items] | |||||
Common stock, par value | $ / shares | $ 0.001 | ||||
Convertible notes, percentage of conversion price | 130% | ||||
Convertible notes, trading days | Days | 20 | ||||
Convertible notes, consecutive trading days | Days | 30 | ||||
2027 Notes [Member] | Debt Instrument Convertible Covenant Two [Member] | |||||
Debt Instrument [Line Items] | |||||
Convertible notes, percentage of last reported sale price of common stock | 98% | ||||
Convertible notes, trading days | Days | 5 | ||||
Convertible notes, consecutive trading days | Days | 10 |
Debt - Schedule of Interest Cos
Debt - Schedule of Interest Cost Relating to 2026 and 2027 Notes (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
2026 Notes [Member] | ||
Debt Instrument [Line Items] | ||
Contractual interest expense | $ 211 | $ 1,380 |
Amortization of debt issuance costs | 23 | 145 |
Total interest expense recognized | 234 | $ 1,525 |
2027 Notes [Member] | ||
Debt Instrument [Line Items] | ||
Contractual interest expense | 4,724 | |
Amortization of debt issuance costs | 682 | |
Total interest expense recognized | $ 5,406 |
Debt - Schedule of Future Minim
Debt - Schedule of Future Minimum Payments under 2026 Notes and 2027 Notes (Detail) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Jul. 06, 2022 | Nov. 13, 2019 |
Debt Instrument [Line Items] | ||||
Net carrying amount of the convertible notes | $ 546,513 | $ 545,808 | ||
2026 Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
2023 remainder | 845 | |||
2024 | 845 | |||
2025 | 845 | |||
2026 | 21,978 | |||
2027 | 0 | |||
Future minimum payments | 24,513 | |||
Less: Interest | (3,381) | |||
Convertible notes, principal amount | 21,132 | $ 138,000 | ||
Less: Debt costs on the convertible notes | (429) | |||
Net carrying amount of the convertible notes | 20,703 | |||
2027 Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
2023 remainder | 9,450 | |||
2024 | 18,900 | |||
2025 | 18,900 | |||
2026 | 18,900 | |||
2027 | 558,900 | |||
Future minimum payments | 625,050 | |||
Less: Interest | (85,050) | |||
Convertible notes, principal amount | 540,000 | $ 540,000 | ||
Less: Debt costs on the convertible notes | (14,190) | |||
Net carrying amount of the convertible notes | $ 525,810 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 01, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated share based compensation expense | $ 15.2 | $ 9 | |
Cantor | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum offering price of common stock under At The Market agreement | $ 300 | ||
Maximum percentage commission to be paid on gross proceedings under at the market agreement | 3% | ||
2004 Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Term to grant nonstatutory stock options and incentive stock options | 10 years | ||
Option grant prices as percentage of the fair market value of the common stock | 100% | ||
Percentage of options grant to new employees | 25% | ||
Shares available for grant | 7.9 | ||
2004 Plan [Member] | New Employee [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting right | Options granted to new employees generally vest 25% after one year and monthly thereafter over a period of four years | ||
Period from percentage of stock option vested | 1 year | ||
Vesting period | 4 years | ||
2004 Plan [Member] | Existing Employee [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting right | Options granted to existing employees generally vest monthly over a period of four years | ||
Vesting period | 4 years |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Stock Options and Restricted Stock Units Granted (Details) | 3 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Stock options [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Stock options, Grants | shares | 1,907,875 |
Stock options, Weighted average date fair value per share | $ / shares | $ 39.21 |
Restricted Stock Units [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Restricted stock units, Grants | shares | 913,483 |
Restricted stock units, Weighted average date fair value per share | $ / shares | $ 39.14 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||||
Sep. 01, 2022 | Mar. 31, 2021 | Mar. 31, 2023 | Dec. 31, 2022 | Aug. 31, 2022 | Feb. 28, 2021 | |
Lessee Lease Description [Line Items] | ||||||
Operating lease, right-of-use assets | $ 81,802 | $ 82,737 | ||||
Operating lease, short-term lease liability | 14,263 | 12,829 | ||||
Operating lease, long-term lease liability | $ 125,341 | $ 126,895 | ||||
Oyster Point Lease [Member] | California [Member] | ||||||
Lessee Lease Description [Line Items] | ||||||
Operating lease, lease expiration date | Oct. 31, 2033 | |||||
Operating lease, commencement date | Mar. 31, 2021 | |||||
Operating lease, right-of-use assets | $ 77,900 | |||||
Operating lease, short-term lease liability | 3,700 | |||||
Operating lease, long-term lease liability | $ 85,300 | |||||
Operating lease, tenant improvement reimbursements | $ 11,100 | |||||
Operating lease, weighted average remaining lease term | 10 years 7 months 6 days | |||||
Operating lease, weighted average discount rate | 8.70% | |||||
Operating lease undiscounted lease payments | $ 217,400 | |||||
Radnor Lease [Member] | Pennsylvania [Member] | ||||||
Lessee Lease Description [Line Items] | ||||||
Operating lease, lease expiration date | Jul. 31, 2027 | |||||
Operating lease, commencement date | Sep. 01, 2022 | |||||
Operating lease, right-of-use assets | $ 3,400 | |||||
Operating lease, short-term lease liability | 400 | |||||
Operating lease, long-term lease liability | $ 1,900 | |||||
Operating lease, weighted average remaining lease term | 4 years 3 months 18 days | |||||
Operating lease, weighted average discount rate | 8.30% | |||||
Operating lease undiscounted lease payments | $ 2,600 | |||||
Right-of-use asset, prepayment | $ 1,100 |