Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 30, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | CYTK | |
Entity Registrant Name | CYTOKINETICS INC | |
Entity Central Index Key | 0001061983 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 57,721,286 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 39,409 | $ 42,256 |
Short-term investments | 137,213 | 156,475 |
Accounts receivable | 4,165 | 2,231 |
Contract assets | 2,472 | 4,554 |
Prepaid and other current assets | 3,141 | 2,158 |
Total current assets | 186,400 | 207,674 |
Property and equipment, net | 3,175 | 3,204 |
Other assets | 9,036 | 300 |
Total assets | 198,611 | 211,178 |
Current liabilities: | ||
Accounts payable | 2,547 | 3,764 |
Accrued liabilities | 12,944 | 15,757 |
Current portion of long-term debt | 6,212 | 2,607 |
Short-term lease liability | 4,499 | 0 |
Other current liabilities | 75 | 66 |
Total current liabilities | 26,277 | 22,194 |
Long-term debt, net | 36,382 | 39,806 |
Liability related to the sale of future royalties, net | 127,308 | 122,473 |
Long-term lease liability | 5,272 | 0 |
Other long-term liabilities | 0 | 771 |
Total liabilities | 195,239 | 185,244 |
Commitments and contingencies | 0 | 0 |
Stockholders’ equity: | ||
Preferred stock, $0.001 par value | 0 | 0 |
Common stock, $0.001 par value | 55 | 55 |
Additional paid-in capital | 775,401 | 768,703 |
Accumulated other comprehensive income | 606 | 500 |
Accumulated deficit | (772,690) | (743,324) |
Total stockholders’ equity | 3,372 | 25,934 |
Total liabilities and stockholders’ equity | $ 198,611 | $ 211,178 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
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 ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues: | ||
Total revenues | $ 8,464 | $ 5,268 |
Operating expenses: | ||
Research and development | 23,545 | 22,135 |
General and administrative | 9,437 | 9,264 |
Total operating expenses | 32,982 | 31,399 |
Operating loss | (24,518) | (26,131) |
Interest expense | (1,170) | (863) |
Non-cash interest expense on liability related to the sale of future royalties | (4,819) | (4,129) |
Interest income | 1,141 | 842 |
Net loss | $ (29,366) | $ (30,281) |
Net loss per share — basic and diluted | $ (0.54) | $ (0.56) |
Weighted-average shares in net loss per share — basic and diluted | 54,821 | 54,062 |
Other comprehensive income: | ||
Unrealized gain on available-for-sale securities, net | $ 106 | $ 146 |
Comprehensive loss | (29,260) | (30,135) |
Research and Development Revenues [Member] | ||
Revenues: | ||
Total revenues | 8,464 | 3,585 |
License Revenues [Member] | ||
Revenues: | ||
Total revenues | $ 0 | $ 1,683 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income [Member] | Accumulated Deficit [Member] |
Beginning Balance at Dec. 31, 2017 | $ 109,842 | $ 54 | $ 755,526 | $ 343 | $ (646,081) |
Beginning Balance, shares at Dec. 31, 2017 | 53,960,832 | ||||
Stock-based compensation | 2,403 | $ 0 | 2,403 | 0 | 0 |
Exercise of stock options, value | 342 | $ 0 | 342 | 0 | 0 |
Exercise of stock options, shares | 59,112 | ||||
Vesting of restricted stock units, net of taxes withheld, value | (866) | $ 0 | (866) | 0 | 0 |
Vesting of restricted stock units, net of taxes withheld, shares | 177,602 | ||||
ASC 606 Adoption | ASC 606 [Member] | 18,013 | $ 0 | 0 | 0 | 18,013 |
Other comprehensive income | 146 | 0 | 0 | 146 | 0 |
Net loss | (30,281) | 0 | 0 | 0 | (30,281) |
Ending Balance at Mar. 31, 2018 | 99,599 | $ 54 | 757,405 | 489 | (658,349) |
Ending Balance, shares at Mar. 31, 2018 | 54,197,546 | ||||
Beginning Balance at Dec. 31, 2018 | 25,934 | $ 55 | 768,703 | 500 | (743,324) |
Beginning Balance, shares at Dec. 31, 2018 | 54,717,906 | ||||
Stock-based compensation | 2,282 | $ 0 | 2,282 | 0 | 0 |
Exercise of stock options, value | 31 | $ 0 | 31 | 0 | 0 |
Exercise of stock options, shares | 5,116 | ||||
Vesting of restricted stock units, net of taxes withheld, value | (732) | $ 0 | (732) | 0 | 0 |
Vesting of restricted stock units, net of taxes withheld, shares | 165,347 | ||||
Issuance under at-the-market offering net of issuance costs, value | 5,117 | $ 0 | 5,117 | 0 | 0 |
Issuance under at-the-market offering net of issuance costs, shares | 562,811 | ||||
Other comprehensive income | 106 | $ 0 | 0 | 106 | 0 |
Net loss | (29,366) | 0 | 0 | 0 | (29,366) |
Ending Balance at Mar. 31, 2019 | $ 3,372 | $ 55 | $ 775,401 | $ 606 | $ (772,690) |
Ending Balance, shares at Mar. 31, 2019 | 55,451,180 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net loss | $ (29,366) | $ (30,281) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Non-cash interest expense on liability related to sale of future royalties | 4,819 | 4,129 |
Non-cash equity-related expense | 2,282 | 2,403 |
Depreciation of property and equipment | 286 | 673 |
Interest receivable and amortization on investments | (533) | 96 |
Non-cash interest expense related to debt | 183 | 177 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (1,934) | 1,075 |
Contract assets | 2,082 | 3,212 |
Prepaid and other assets | (983) | 1,406 |
Operating lease right-of-use assets | 856 | 0 |
Accounts payable | (1,217) | (2,831) |
Accrued and other liabilities | (2,466) | 1,067 |
Contract liabilities | 0 | (9,202) |
Operating lease liabilities | (916) | 0 |
Deferred revenue | 0 | (1,731) |
Net cash used in operating activities | (26,907) | (29,807) |
Cash flows from investing activities: | ||
Purchases of investments | (41,295) | (24,224) |
Sales and maturities of investments | 61,196 | 44,621 |
Purchases of property and equipment | (257) | (261) |
Net cash provided by investing activities | 19,644 | 20,136 |
Cash flows from financing activities: | ||
Public offerings of common stock, net of issuance costs | 5,117 | 0 |
Proceeds from common stock award exercise | 31 | 0 |
Issuance of equity for stock-based awards and warrants, net | (732) | (524) |
Net cash provided by (used in) financing activities | 4,416 | (524) |
Net decrease in cash and cash equivalents | (2,847) | (10,195) |
Cash and cash equivalents, beginning of period | 42,256 | 125,206 |
Cash and cash equivalents, end of period | 39,409 | 115,011 |
Supplemental cash flow disclosure - non-cash investing and financing activity: | ||
Right-of-use assets obtained in exchange for lease obligations | $ 10,686 | $ 0 |
Organization and Significant Ac
Organization and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Significant Accounting Policies | Note 1 — Organization and Significant Accounting Policies Cytokinetics, Incorporated (the “Company”, “we” or “our”) 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 $772.7 million since inception and there can be no assurance that we will attain profitability. The Company anticipates that it 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, sale of future royalties, debt financing arrangements, sales of our convertible preferred stock, 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. As a result, we may choose to raise additional capital through equity or debt financings to continue to fund operations in the future. 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 from the filing date of this Quarterly Report on Form 10-Q. If, at any time, our prospects for financing research and development programs decline, we may decide to reduce research and development expenses by delaying, discontinuing or reducing 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. These 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 subsidiary. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“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 at December 31, 2018 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, 2018, as filed with the SEC. Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires us 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 reported amounts of revenues and expenses during the reporting periods. On an ongoing basis, we evaluate our estimates, including those related to revenue recognition, investments, accrued research and development expenses, other long-lived assets, stock-based compensation, operating lease assets and liabilities, and the valuation of deferred tax assets. 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. Leases We adopted Accounting Standards Update No. 2016-02, Leases (“ASC 842”) on January 1, 2019 using the modified retrospective approach. There was no cumulative-effect adjustment as of January 1, 2019. Prior period amounts continue to be reported in accordance with our historic accounting under previous lease guidance, ASC 840, Lease Accounting. We elected the package of practical expedients permitted under the transition guidance within ASC 842, which among other things, allowed us to carry forward the historical lease classification of those leases in place as of January 1, 2019. We also elected to exclude from our condensed consolidated balance sheets recognition of leases having a term of 12 months or less (short-term leases) and elected to not separate lease components and non-lease components for our long-term facilities lease. In adopting ASC 842, we recognized a right-of-use asset in other assets and a short-term and long-term lease liability on our condensed consolidated balance sheets for our facilities lease that expires in 2021 (the “Lease”). The right-of-use asset is based on the liability adjusted for any prepaid or deferred rent. We determined the lease term at the commencement date by considering whether renewal options and termination options are reasonably assured of exercise. In determining the present value of lease payments, we estimated our incremental borrowing rate based on information available when we adopted 842. We evaluated our other contracts and determined that, except for the Lease, none of our contracts contained a lease as defined in ASC 842. The impact on the condensed consolidated balance sheets as of January 1, 2019 of adopting ASC 842 is as follows (in thousands): Balance sheet account description ASC 840 January 1, 2019 ASC 842 January 1, 2019 Impact of adoption Deferred rent classified as accrued liabilities $ (323 ) — $ 323 Deferred rent classified as other long-term liabilities (773 ) — 773 Short-term lease liability — (4,460 ) (4,460 ) Long-term lease liability — (6,227 ) (6,227 ) Other assets — 9,591 9,591 We recognize rent expense for the operating lease on a straight-line basis over the lease term in operating expenses on the condensed consolidated statements of operations. Revenue Recognition On January 1, 2018, we adopted Accounting Standards Codification 606, Revenue from Contracts with Customers (“ASC 606”), using the modified retrospective method. On January 1, 2018, for contracts within the scope of ASC 606, we recognized a contract asset or liability and reduced our accumulated deficit for the effect of adopting ASC 606 and did not revise our prior period financial statements. Pursuant to ASC 606, to recognize revenue from a contract with a customer, we: (i) identify our contracts with our customers; (ii) identify our distinct performance obligations in each contract; (iii) determine the transaction price of each contract; (iv) allocate the transaction price to the performance obligations; and (v) recognize revenue as we satisfy our performance obligations. At contract inception, we assess the goods or services promised within each contract and assess whether each promised good or service is distinct and determine those that are performance obligations. We then recognize as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. Collaborative Arrangements We enter into collaborative arrangements with partners that typically include payment to us for one of more of the following: (i) license fees; (ii) milestone payments related to the achievement of developmental, regulatory, or commercial goals; and (iii) royalties on net sales of licensed products. Each of these payments results in collaboration or other revenues. Where a portion of non-refundable up-front fees or other payments received are allocated to continuing performance obligations under the terms of a collaborative arrangement, they are recorded as deferred revenue and recognized as revenue when (or as) the underlying performance obligation is satisfied. As part of the accounting for these arrangements, we must develop estimates and assumptions that require judgment to determine the underlying stand-alone selling price for each performance obligation which determines how the transaction price is allocated among the performance obligation. The stand-alone selling price may include such items as, forecasted revenues, development timelines, reimbursement rates for personnel costs, discount rates and probabilities of technical and regulatory success, to determine the transaction price to allocate to each performance obligation. For our collaboration agreements that include more than one performance obligation, such as a license combined with a commitment to perform research and development services, we make judgments to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress for purposes of recognizing revenue from non-refundable, up-front fees. We evaluate our progress each reporting period and, if necessary, adjust the measure of a performance obligation and related revenue recognition. License Fees : If a license to our intellectual property is determined to be distinct from the other performance obligations identified in the arrangement, we recognize revenues from non-refundable, up-front fees allocated to the license when the license is transferred to the licensee and the licensee is able to use and benefit from the license. For licenses that are bundled with other promises, we utilize judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress for purposes of recognizing revenue from non-refundable, up-front license fees. We evaluate the measure of progress each reporting period and, if necessary, adjust the measure of performance and related revenue recognition. Milestone : We use judgement to determine whether a milestone is considered probable of being reached. Using the most likely amount method, we include the value of a milestone payment in the consideration for a contract at inception if we then conclude achieving the milestone is more likely than not. Otherwise, we exclude the value of a milestone payment from contract consideration at inception and recognize revenue for a milestone at a later date, when we judge that it is more likely than not that the milestone will be achieved. If we conclude it is probable that a significant revenue reversal would not occur, the associated milestone is included in the transaction price. We then allocate the transaction price to each performance obligation on a relative stand-alone selling price basis, for which we recognize revenue as or when the performance obligations under the contract are satisfied. At the end of each subsequent reporting period, we re-evaluate the probability of achievement of such milestones and any related constraint, and if necessary, adjust our estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect license, collaboration and other revenues and earnings in the period of adjustment. Royalties : For contracts that include sales-based royalties, we recognize revenue at the later of (i) when the related sales occur, or (ii) when the performance obligation to which some or all of the royalty has been allocated has been satisfied. To date, we have not recognized any royalty revenues resulting from contracts. Research and Development Cost Reimbursements : Our Astellas and Amgen arrangements include promises of research and development services. We have determined that these services collectively are distinct from the licenses provided to Astellas and Amgen and as such, these promises are accounted for as a separate performance obligation recorded over time. We record revenue for these services as the performance obligations are satisfied, which we estimate using internal development costs incurred. Recent Accounting Pronouncements In November 2018, the Financial Accounting Standards Board (“FASB”) issued ASU 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606 (“ASU 2018-18”), which make targeted improvements to clarify the interaction between Topic 808, Collaborative Arrangements, and Topic 606, Revenue from Contracts with Customers. ASU 2018-18 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the impact of adopting ASU 2018-18. In June 2016, the FASB issued ASU 2016-13, ‘Financial Instruments — Credit Losses — Measurement of Credit Losses on Financial Instruments. |
Net Loss Per Share
Net Loss Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Note 2 — Net Loss Per Share We excluded the following from diluted net loss per share because inclusion would have been antidilutive (in thousands): Three Months Ended March 31, 2019 March 31, 2018 Options to purchase common stock 5,844 5,099 Warrants to purchase common stock 142 100 Restricted Stock and Performance units 881 619 Shares issuable related to the ESPP 85 42 6,952 5,860 |
Research and Development Arrang
Research and Development Arrangements | 3 Months Ended |
Mar. 31, 2019 | |
Research And Development [Abstract] | |
Research and Development Arrangements | Note 3 — Research and Development Arrangements Amgen Inc. (“Amgen”) We and Amgen continue activities related to novel small molecule therapeutics, including omecamtiv mecarbil, that activate cardiac muscle contractility for potential applications in the treatment of heart failure under the collaboration and option agreement between the Company and Amgen, as amended (the “Amgen Agreement”). We recognize research and development revenue for reimbursements from Amgen of both internal costs of certain full-time employee equivalents and other costs related to the Amgen Agreement. Research and development revenue from Amgen of $4.2 million in the first quarter of 2019 consists of reimbursement of costs we incurred related to METEORIC-HF, a Phase 3 clinical trial intended to evaluate the potential of omecamtiv mecarbil to increase exercise performance. We had no research and development revenue from Amgen in the first quarter of 2018. We had accounts receivable of $4.2 million at March 31, 2019 and $1.9 million at December 31, 2018. In 2018, we paid Amgen $18.8 million Under the Amgen Agreement, we are eligible to receive over $300.0 million in additional development milestone payments based on various clinical milestones, including the initiation of certain clinical studies, the submission of an application for marketing authorization for a drug candidate to certain regulatory authorities and the receipt of such approvals. Additionally, we are eligible to receive up to $300.0 million in commercial milestone payments provided certain sales targets are met. Due to the nature of drug development, including the inherent risk of development and approval of drug candidates by regulatory authorities, we cannot estimate if and when these milestone payments could be achieved or become due and, accordingly, we consider the milestone payments to be constrained and exclude the milestone payments from the transaction price. Astellas Pharma Inc. (“Astellas”) Cytokinetics and Astellas continue activities focused on the research, development, and commercialization of skeletal muscle activators, including reldesemtiv, as novel drug candidates for diseases and medical conditions associated with muscle weakness under the Amended and Restated License and Collaboration Agreement dated December 22, 2014, as amended (the “Astellas Agreement”). We have recognized research and development revenue from Astellas for reimbursements of internal costs of certain full-time employee equivalents, supporting collaborative research and development programs, and of other costs related to those programs. Revenue from Astellas included research and development revenues of $4.3 million and $3.6 million in the first quarter of 2019 and 2018, respectively and license revenues of $1.7 million in the first quarter of 2018. In 2014, we and Astellas amended and restated the Astellas Agreement (the “2014 Astellas Amendment”) and expanded the objective of the collaboration to include spinal muscular atrophy (“SMA”) and potentially other neuromuscular indications for reldesemtiv and other fast skeletal muscle troponin activators (“FSTAs”). License revenues in 2018 related to our performance obligations under the 2014 Astellas Amendment. In 2018, we completed all our deliverables for the 2014 Astellas Amendment. In 2016, we and Astellas amended the Astellas Agreement (the “2016 Astellas Amendment”) to expand the collaboration to include the development of reldesemtiv for the potential treatment of amyotrophic lateral sclerosis (“ALS”), as well as the possible development in ALS of other FSTAs previously licensed by us to Astellas, and Astellas paid us a $35.0 million non-refundable upfront amendment fee and an accelerated $15.0 million milestone payment for the initiation of the first Phase 2 clinical trial of reldesemtiv in ALS that was otherwise provided for in the Astellas Agreement, as if such milestone had been achieved upon the execution of the 2016 Astellas Amendment, and committed research and development consideration of $44.2 million, for total consideration of $94.2 million. We allocated the consideration to the license and to the research and development services, and recognized license revenue and research and development revenue using the proportional performance model. Our contract asset from the 2016 Astellas Amendment of $4.6 million at December 31, 2018 increased by $2.8 million as we performed services during the first quarter of 2019, offset by payments we received from Astellas of $4.9 million during the first quarter of 2019, to $2.5 million at March 31, 2019. We expect to complete all of our deliverables for the 2016 Astellas Amendment in 2019. We had no accounts receivable from Astellas at March 31, 2019 and $0.3 million at December 31, 2018 Under the Astellas Agreement, additional research and early and late state development milestone payments for research and clinical milestones, including the initiation of certain clinical studies, the submission of an application for marketing authorization for a drug candidate to certain regulatory authorities and the commercial launch of collaboration products could total over $600.0 million and includes up to $95.0 million relating to reldesemtiv in non-neuromuscular indications, and over $100.0 million related to reldesemtiv in each of SMA, ALS and other neuromuscular indications. Additionally, $200.0 million in commercial milestones could be received under the Astellas Agreement provided certain sales targets are met. We are eligible to receive up to $2.0 million in research milestone payments under the collaboration for each future potential drug candidate. Due to the nature of drug development, including the inherent risk of development and approval of drug candidates by regulatory authorities, it is not possible to estimate if and when these milestone payments could be achieved or become due, and accordingly, are constrained and not included in the transaction price. |
Cash Equivalents and Investment
Cash Equivalents and Investments | 3 Months Ended |
Mar. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Cash Equivalents and Investments | Note 4 — Cash Equivalents and Investments The amortized cost, unrealized gains, unrealized losses and fair value of cash equivalents and available for sale investments at March 31, 2019 and December 31, 2018 were as follows (in thousands): March 31, 2019 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Money market funds $ 32,954 $ — $ — $ 32,954 U.S. Treasury securities 54,185 7 (5 ) 54,184 Agency bonds 56,244 19 (2 ) 56,264 Commercial paper 20,509 8 — 20,517 Corporate obligations 9,523 6 — 9,529 $ 173,415 $ 40 $ (7 ) $ 173,448 December 31, 2018 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Money market funds $ 34,771 $ — $ — $ 34,771 U.S. Treasury securities 56,999 — (41 ) 56,958 Agency bonds 61,792 1 (14 ) 61,779 Commercial paper 19,448 — (13 ) 19,435 Corporate obligations 17,644 2 (8 ) 17,638 $ 190,654 $ 3 $ (76 ) $ 190,581 Investments available for sale at March 31, 2019 excludes an investment in equity of $0.7 million. At March 31, 2019, there were no investments that had been in a continuous unrealized loss position for 12 months or longer. Interest income was $1.1 million for the three months ended March 31, 2019 and $0.8 million for the three months ended March 31, 2018. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 5 — 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 endeavors 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: Using this hierarchy, we classify our financial assets at fair value as follows (in thousands): March 31, 2019 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets At Fair Value Assets: Money market funds $ 32,954 $ — $ — $ 32,954 U.S. Treasury securities 54,184 — — 54,184 Agency bonds — 56,264 — 56,264 Commercial paper — 20,517 — 20,517 Corporate obligations — 9,529 — 9,529 $ 87,138 $ 86,310 $ — $ 173,448 December 31, 2018 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets At Fair Value Assets: Money market funds $ 34,771 $ — $ — $ 34,771 U.S. Treasury securities 56,958 — — 56,958 Agency bonds — 61,779 — 61,779 Commercial paper — 19,435 — 19,435 Corporate obligations — 17,638 — 17,638 $ 91,729 $ 98,852 $ — $ 190,581 The carrying amount of our accounts receivable and accounts payable approximates fair value due to the short-term nature of these instruments. Fair value of financial liabilities: As of March 31, 2019 and December 31, 2018, the fair value of the long-term debt approximated its carrying value of $42.6 million and $42.4 million, respectively, because it is carried at a market observable interest rate, which is considered Level 2. As of March 31, 2019, the fair value of liability related to the sale of future royalties is based on our current estimates of future royalties expected to be paid to RPI Finance Trust (“RPI”), an entity related to Royalty Pharma, over the life of the arrangement, which are considered Level 3 (See Note 8 – “Liability Related to Sale of Future Royalties”). There were no transfers between Level 1, Level 2, and Level 3 during the periods presented. |
Balance Sheet Components
Balance Sheet Components | 3 Months Ended |
Mar. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Balance Sheet Components | Note 6 — Balance Sheet Components Accrued liabilities were as follows (in thousands): March 31, 2019 December 31, 2018 Accrued liabilities: Research and development services $ 7,457 $ 8,618 Compensation related 3,899 6,118 Other accrued expenses 1,588 1,021 Total accrued liabilities $ 12,944 $ 15,757 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | Note 7 — Leases The Lease for our facilities expires in 2021 and includes rental payments on a graduated scale and payment of certain operating expenses. As of March 31, 2019, the weighted average remaining lease term is 2.3 years, the weighted average discount rate used to determine the operating lease liability was 9% and cancellable lease payments under our operating leases as of March 31, 2019 is as follows (in thousands): Years ending December 31: 2019 remainder $ 3,532 2020 4,846 2021 2,464 Total undiscounted future lease payments 10,842 Less: Present value adjustments (1,071 ) Total lease liability $ 9,771 Cash paid for amounts included in the measurement of lease liabilities for the three months March 31, 2019 was $1.2 million and was included in net cash used in operating activities in our condensed consolidated statements of cash flows. Rent expense was $1.3 million and $1.2 million for the three months ended March 31, 2019 and 2018, respectively. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 8 — Long-Term Debt We have a loan and security agreement (the “Loan Agreement”) with Oxford Finance LLC (“Oxford”) and Silicon Valley Bank (“SVB”) (Oxford and SVB, collectively the “Lenders”) to fund our working capital and other general corporate needs. During the three months ended September 30, 2018, following the satisfaction of certain conditions specified in the Loan Agreement March 31, 2019 December 31, 2018 Notes payable, gross $ 42,000 $ 42,000 Less: Unamortized debt discount and issuance costs, net of interest payable (98 ) (135 ) Accretion of final payment fee 692 548 Carrying value of notes payable 42,594 42,413 Less: Current portion of long-term debt 6,212 2,607 Long-term debt $ 36,382 $ 39,806 Payments on the notes payable will be interest only through November 2019, followed by 41 months of monthly payments of interest and principal. We are required to make a final payment upon loan maturity of 6.5% of the notes payable, which we accrete over the life of the notes payable. The interest rate under the Amended Loan Agreement is the greater of (a) 8.05% or (b) the sum of 6.81% plus the 30-day U.S. LIBOR rate. The Loan Agreement contains customary representations and warranties and customary affirmative and negative covenants applicable to us and includes customary events of default, including but not limited to the nonpayment of principal or interest, violations of covenants and material adverse changes. Upon an event of default, the Lenders may, among other things, accelerate the loans and foreclose on the collateral. Our obligations under the Loan Agreement are secured by substantially all our current and future assets, other than our intellectual property. Interest expense was $1.2 million for the first quarter of 2019 and $0.9 million for the first quarter of 2018. The effective interest rate on the Loan Agreement, including the amortization of the debt discount and issuance cost, and the accretion of the final payment, was 9.3% at March 31, 2019. Future minimum payments under the Loan Agreement are (in thousands): Years ending December 31: 2019 remainder 4,184 2020 17,634 2021 16,266 2022 15,248 Future minimum payments 53,332 Less: Interest and final payment (11,332 ) Notes payable, gross $ 42,000 |
Liability Related to Sale of Fu
Liability Related to Sale of Future Royalties | 3 Months Ended |
Mar. 31, 2019 | |
Deferred Revenue Disclosure [Abstract] | |
Liability Related to Sale of Future Royalties | Note 9 - Liability Related to Sale of Future Royalties In February 2017, we entered into a Royalty Purchase Agreement (the “Royalty Agreement”), under which we sold a portion of our right to receive royalties on potential net sales of omecamtiv mecarbil (and potentially other compounds with the same mechanism of action) under the Amgen Agreement to RPI for a payment of $90.0 million (the “Royalty Monetization”). The Royalty Monetization is non-refundable, even if omecamtiv mecarbil is never commercialized. We recognized $4.8 million and $4.1 million in non-cash interest expense in the three months ended March 31, 2019 and 2018, respectively, related to the Royalty Agreement. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | Note 10 — Stockholders’ Equity Committed Equity Offering In March 2019, we and Cantor Fitzgerald & Co. entered into a Committed Equity Offering, an at-the-market issuance sales agreement (the “Cantor Agreement”), pursuant to which we could issue and sell shares of common stock having an aggregate offering price of up to $35.0 million. During the first quarter of 2019, we issued 562,811 shares for net proceeds of $5.1 million under the Cantor Agreement. Equity Incentive Plan At March 31, 2019, 0.7 million authorized shares were available for grant under the 2004 Equity Plan. Warrants At March 31, 2019, we had outstanding warrants with a weighted average exercise price of $6.85 per share to purchase 142,359 shares of our common stock, issued pursuant to the Loan Agreement. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 11 — Commitments and Contingencies In the ordinary course of business, we may provide indemnifications of varying scope and terms to vendors, lessors, business partners and other parties with respect to certain matters, including, but not limited to, losses arising out of our breach of such agreements, services to be provided by or on behalf of us, or from intellectual property infringement claims made by third parties. In addition, we have indemnification agreements with our directors and certain of our officers and employees that will require us, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors, officers or employees. We maintain director and officer insurance, which may cover certain liabilities arising from our obligation to indemnify our directors and certain of our officers and employees, and former officers and directors in certain circumstances. We maintain product liability insurance and comprehensive general liability insurance, which may cover certain liabilities arising from our indemnification obligations. It is not possible to determine the maximum potential amount of exposure under these indemnification obligations due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular indemnification obligation. Such indemnification obligations may not be subject to maximum loss clauses. We are not currently aware of any matters that could have a material adverse effect on our financial position, results of operations or cash flows. |
Organization and Significant _2
Organization and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Our condensed consolidated financial statements include the accounts of Cytokinetics and our wholly-owned subsidiary. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“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 at December 31, 2018 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, 2018, as filed with the SEC. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires us 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 reported amounts of revenues and expenses during the reporting periods. On an ongoing basis, we evaluate our estimates, including those related to revenue recognition, investments, accrued research and development expenses, other long-lived assets, stock-based compensation, operating lease assets and liabilities, and the valuation of deferred tax assets. 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. |
Leases | Leases We adopted Accounting Standards Update No. 2016-02, Leases (“ASC 842”) on January 1, 2019 using the modified retrospective approach. There was no cumulative-effect adjustment as of January 1, 2019. Prior period amounts continue to be reported in accordance with our historic accounting under previous lease guidance, ASC 840, Lease Accounting. We elected the package of practical expedients permitted under the transition guidance within ASC 842, which among other things, allowed us to carry forward the historical lease classification of those leases in place as of January 1, 2019. We also elected to exclude from our condensed consolidated balance sheets recognition of leases having a term of 12 months or less (short-term leases) and elected to not separate lease components and non-lease components for our long-term facilities lease. In adopting ASC 842, we recognized a right-of-use asset in other assets and a short-term and long-term lease liability on our condensed consolidated balance sheets for our facilities lease that expires in 2021 (the “Lease”). The right-of-use asset is based on the liability adjusted for any prepaid or deferred rent. We determined the lease term at the commencement date by considering whether renewal options and termination options are reasonably assured of exercise. In determining the present value of lease payments, we estimated our incremental borrowing rate based on information available when we adopted 842. We evaluated our other contracts and determined that, except for the Lease, none of our contracts contained a lease as defined in ASC 842. The impact on the condensed consolidated balance sheets as of January 1, 2019 of adopting ASC 842 is as follows (in thousands): Balance sheet account description ASC 840 January 1, 2019 ASC 842 January 1, 2019 Impact of adoption Deferred rent classified as accrued liabilities $ (323 ) — $ 323 Deferred rent classified as other long-term liabilities (773 ) — 773 Short-term lease liability — (4,460 ) (4,460 ) Long-term lease liability — (6,227 ) (6,227 ) Other assets — 9,591 9,591 We recognize rent expense for the operating lease on a straight-line basis over the lease term in operating expenses on the condensed consolidated statements of operations. |
Revenue Recognition | Revenue Recognition On January 1, 2018, we adopted Accounting Standards Codification 606, Revenue from Contracts with Customers (“ASC 606”), using the modified retrospective method. On January 1, 2018, for contracts within the scope of ASC 606, we recognized a contract asset or liability and reduced our accumulated deficit for the effect of adopting ASC 606 and did not revise our prior period financial statements. Pursuant to ASC 606, to recognize revenue from a contract with a customer, we: (i) identify our contracts with our customers; (ii) identify our distinct performance obligations in each contract; (iii) determine the transaction price of each contract; (iv) allocate the transaction price to the performance obligations; and (v) recognize revenue as we satisfy our performance obligations. At contract inception, we assess the goods or services promised within each contract and assess whether each promised good or service is distinct and determine those that are performance obligations. We then recognize as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. Collaborative Arrangements We enter into collaborative arrangements with partners that typically include payment to us for one of more of the following: (i) license fees; (ii) milestone payments related to the achievement of developmental, regulatory, or commercial goals; and (iii) royalties on net sales of licensed products. Each of these payments results in collaboration or other revenues. Where a portion of non-refundable up-front fees or other payments received are allocated to continuing performance obligations under the terms of a collaborative arrangement, they are recorded as deferred revenue and recognized as revenue when (or as) the underlying performance obligation is satisfied. As part of the accounting for these arrangements, we must develop estimates and assumptions that require judgment to determine the underlying stand-alone selling price for each performance obligation which determines how the transaction price is allocated among the performance obligation. The stand-alone selling price may include such items as, forecasted revenues, development timelines, reimbursement rates for personnel costs, discount rates and probabilities of technical and regulatory success, to determine the transaction price to allocate to each performance obligation. For our collaboration agreements that include more than one performance obligation, such as a license combined with a commitment to perform research and development services, we make judgments to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress for purposes of recognizing revenue from non-refundable, up-front fees. We evaluate our progress each reporting period and, if necessary, adjust the measure of a performance obligation and related revenue recognition. License Fees : If a license to our intellectual property is determined to be distinct from the other performance obligations identified in the arrangement, we recognize revenues from non-refundable, up-front fees allocated to the license when the license is transferred to the licensee and the licensee is able to use and benefit from the license. For licenses that are bundled with other promises, we utilize judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress for purposes of recognizing revenue from non-refundable, up-front license fees. We evaluate the measure of progress each reporting period and, if necessary, adjust the measure of performance and related revenue recognition. Milestone : We use judgement to determine whether a milestone is considered probable of being reached. Using the most likely amount method, we include the value of a milestone payment in the consideration for a contract at inception if we then conclude achieving the milestone is more likely than not. Otherwise, we exclude the value of a milestone payment from contract consideration at inception and recognize revenue for a milestone at a later date, when we judge that it is more likely than not that the milestone will be achieved. If we conclude it is probable that a significant revenue reversal would not occur, the associated milestone is included in the transaction price. We then allocate the transaction price to each performance obligation on a relative stand-alone selling price basis, for which we recognize revenue as or when the performance obligations under the contract are satisfied. At the end of each subsequent reporting period, we re-evaluate the probability of achievement of such milestones and any related constraint, and if necessary, adjust our estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect license, collaboration and other revenues and earnings in the period of adjustment. Royalties : For contracts that include sales-based royalties, we recognize revenue at the later of (i) when the related sales occur, or (ii) when the performance obligation to which some or all of the royalty has been allocated has been satisfied. To date, we have not recognized any royalty revenues resulting from contracts. Research and Development Cost Reimbursements : Our Astellas and Amgen arrangements include promises of research and development services. We have determined that these services collectively are distinct from the licenses provided to Astellas and Amgen and as such, these promises are accounted for as a separate performance obligation recorded over time. We record revenue for these services as the performance obligations are satisfied, which we estimate using internal development costs incurred. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In November 2018, the Financial Accounting Standards Board (“FASB”) issued ASU 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606 (“ASU 2018-18”), which make targeted improvements to clarify the interaction between Topic 808, Collaborative Arrangements, and Topic 606, Revenue from Contracts with Customers. ASU 2018-18 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the impact of adopting ASU 2018-18. In June 2016, the FASB issued ASU 2016-13, ‘Financial Instruments — Credit Losses — Measurement of Credit Losses on Financial Instruments. |
Organization and Significant _3
Organization and Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Summary of Impact on Condensed Consolidated Balance Sheets | The impact on the condensed consolidated balance sheets as of January 1, 2019 of adopting ASC 842 is as follows (in thousands): Balance sheet account description ASC 840 January 1, 2019 ASC 842 January 1, 2019 Impact of adoption Deferred rent classified as accrued liabilities $ (323 ) — $ 323 Deferred rent classified as other long-term liabilities (773 ) — 773 Short-term lease liability — (4,460 ) (4,460 ) Long-term lease liability — (6,227 ) (6,227 ) Other assets — 9,591 9,591 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Instruments Excluded from Diluted Net Loss Per Share | We excluded the following from diluted net loss per share because inclusion would have been antidilutive (in thousands): Three Months Ended March 31, 2019 March 31, 2018 Options to purchase common stock 5,844 5,099 Warrants to purchase common stock 142 100 Restricted Stock and Performance units 881 619 Shares issuable related to the ESPP 85 42 6,952 5,860 |
Cash Equivalents and Investme_2
Cash Equivalents and Investments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Amortized Cost, Unrealized Gains, Unrealized Losses and Fair Value of Cash Equivalents and Available for Sale Investments | The amortized cost, unrealized gains, unrealized losses and fair value of cash equivalents and available for sale investments at March 31, 2019 and December 31, 2018 were as follows (in thousands): March 31, 2019 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Money market funds $ 32,954 $ — $ — $ 32,954 U.S. Treasury securities 54,185 7 (5 ) 54,184 Agency bonds 56,244 19 (2 ) 56,264 Commercial paper 20,509 8 — 20,517 Corporate obligations 9,523 6 — 9,529 $ 173,415 $ 40 $ (7 ) $ 173,448 December 31, 2018 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Money market funds $ 34,771 $ — $ — $ 34,771 U.S. Treasury securities 56,999 — (41 ) 56,958 Agency bonds 61,792 1 (14 ) 61,779 Commercial paper 19,448 — (13 ) 19,435 Corporate obligations 17,644 2 (8 ) 17,638 $ 190,654 $ 3 $ (76 ) $ 190,581 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Assets at Fair Value | Using this hierarchy, we classify our financial assets at fair value as follows (in thousands): March 31, 2019 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets At Fair Value Assets: Money market funds $ 32,954 $ — $ — $ 32,954 U.S. Treasury securities 54,184 — — 54,184 Agency bonds — 56,264 — 56,264 Commercial paper — 20,517 — 20,517 Corporate obligations — 9,529 — 9,529 $ 87,138 $ 86,310 $ — $ 173,448 December 31, 2018 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets At Fair Value Assets: Money market funds $ 34,771 $ — $ — $ 34,771 U.S. Treasury securities 56,958 — — 56,958 Agency bonds — 61,779 — 61,779 Commercial paper — 19,435 — 19,435 Corporate obligations — 17,638 — 17,638 $ 91,729 $ 98,852 $ — $ 190,581 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Summary of Accrued Liabilities | Accrued liabilities were as follows (in thousands): March 31, 2019 December 31, 2018 Accrued liabilities: Research and development services $ 7,457 $ 8,618 Compensation related 3,899 6,118 Other accrued expenses 1,588 1,021 Total accrued liabilities $ 12,944 $ 15,757 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Schedule of Undiscounted Future Non-cancellable Lease Payments under Operating Leases | As of March 31, 2019, the weighted average remaining lease term is 2.3 years, the weighted average discount rate used to determine the operating lease liability was 9% and cancellable lease payments under our operating leases as of March 31, 2019 is as follows (in thousands): Years ending December 31: 2019 remainder $ 3,532 2020 4,846 2021 2,464 Total undiscounted future lease payments 10,842 Less: Present value adjustments (1,071 ) Total lease liability $ 9,771 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule Of Long Term Debt And Unamortized Debt Discount | Our Long-term debt and unamortized debt discount balances are as follows (in thousands): March 31, 2019 December 31, 2018 Notes payable, gross $ 42,000 $ 42,000 Less: Unamortized debt discount and issuance costs, net of interest payable (98 ) (135 ) Accretion of final payment fee 692 548 Carrying value of notes payable 42,594 42,413 Less: Current portion of long-term debt 6,212 2,607 Long-term debt $ 36,382 $ 39,806 |
Schedule of Future Minimum Payments under Loan Agreement | Future minimum payments under the Loan Agreement are (in thousands): Years ending December 31: 2019 remainder 4,184 2020 17,634 2021 16,266 2022 15,248 Future minimum payments 53,332 Less: Interest and final payment (11,332 ) Notes payable, gross $ 42,000 |
Organization and Significant _4
Organization and Significant Accounting Policies - Additional Information (Detail) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019USD ($)Obligation | Dec. 31, 2018USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | ||
Accumulated deficit incurred | $ | $ (772,690) | $ (743,324) |
Cash requirements term | 12 months | |
Lease, practical expedients, package | true | |
Lease expiration year | 2021 | |
Minimum [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Number of performance obligation | Obligation | 1 |
Organization and Significant _5
Organization and Significant Accounting Policies - Summary of Impact on Condensed Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Leases [Line Items] | |||
Short-term lease liability | $ (4,499) | $ 0 | |
Long-term lease liability | (5,272) | 0 | |
Other assets | $ 9,036 | $ 300 | |
ASC 840 [Member] | |||
Leases [Line Items] | |||
Deferred rent classified as accrued liabilities | $ (323) | ||
Deferred rent classified as other long-term liabilities | (773) | ||
Short-term lease liability | 0 | ||
Long-term lease liability | 0 | ||
Other assets | 0 | ||
ASC 842 [Member] | |||
Leases [Line Items] | |||
Deferred rent classified as accrued liabilities | 0 | ||
Deferred rent classified as other long-term liabilities | 0 | ||
Short-term lease liability | (4,460) | ||
Long-term lease liability | (6,227) | ||
Other assets | 9,591 | ||
Impact of Adoption [Member] | |||
Leases [Line Items] | |||
Deferred rent classified as accrued liabilities | 323 | ||
Deferred rent classified as other long-term liabilities | 773 | ||
Short-term lease liability | (4,460) | ||
Long-term lease liability | (6,227) | ||
Other assets | $ 9,591 |
Net Loss Per Share - Instrument
Net Loss Per Share - Instruments Excluded from Diluted Net Loss Per Share (Detail) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total shares | 6,952 | 5,860 |
Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total shares | 5,844 | 5,099 |
Warrants to Purchase Common Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total shares | 142 | 100 |
Restricted Stock and Performance Units [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total shares | 881 | 619 |
ESPP [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total shares | 85 | 42 |
Research and Development Arra_2
Research and Development Arrangements - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2016 | |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Revenue | $ 8,464,000 | $ 5,268,000 | ||
Accounts receivable | 4,165,000 | $ 2,231,000 | ||
Contract assets | 2,472,000 | 4,554,000 | ||
2016 Astellas Amendment [Member] | ||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Accounts receivable | 300,000 | 300,000 | ||
Contract assets | 2,500,000 | 4,600,000 | ||
Services performed asset | 2,800,000 | |||
Cash recieved offset asset | 4,900,000 | |||
Amgen [Member] | Accounting Standards Update 2014-09 [Member] | ||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Pre-commercialization milestone payments eligible to receive | 300,000,000 | |||
Maximum [Member] | 2016 Astellas Amendment [Member] | ||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Research milestone payments | 2,000,000 | |||
Maximum [Member] | 2016 Astellas Amendment [Member] | Commercial Milestones [Member] | ||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Potential amount receivable under collaboration agreement | 200,000,000 | |||
Maximum [Member] | Amgen [Member] | Accounting Standards Update 2014-09 [Member] | ||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Commercialization milestone payments eligible to receive | 300,000,000 | |||
Research and Development Revenues [Member] | ||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Revenue | 8,464,000 | 3,585,000 | ||
License Revenues [Member] | ||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Revenue | 0 | 1,683,000 | ||
Amgen [Member] | ||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Accounts receivable | 4,200,000 | 1,900,000 | ||
Co-invest option exercised amount | $ 40,000,000 | |||
Percentage of incremental royalty receivable on annual net sales | 4.00% | |||
Co-invest option payment | $ 18,800,000 | |||
Amgen [Member] | Research and Development Revenues [Member] | ||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Revenue | 4,200,000 | 0 | ||
Astellas [Member] | 2016 Astellas Amendment [Member] | ||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Revenue recognition, Non-refundable upfront amendment fee | $ 35,000,000 | |||
Amount received as milestone payment | 15,000,000 | |||
Revenue recognition over performance period | $ 44,200,000 | |||
Astellas [Member] | Maximum [Member] | 2016 Astellas Amendment [Member] | Non Neuromuscular Indications | ||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Potential amount receivable under collaboration agreement | 95,000,000 | |||
Astellas [Member] | Minimum [Member] | 2016 Astellas Amendment [Member] | ||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Potential amount receivable under collaboration agreement | 600,000,000 | |||
Astellas [Member] | Minimum [Member] | 2016 Astellas Amendment [Member] | SMA and Other Neuromuscular Indications [Member] | ||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Potential amount receivable under collaboration agreement | 100,000,000 | |||
Astellas [Member] | Research and Development Revenues [Member] | ||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Revenue | $ 4,300,000 | 3,600,000 | ||
Astellas [Member] | License Revenues [Member] | ||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Revenue | $ 1,700,000 |
Cash Equivalents and Investme_3
Cash Equivalents and Investments - Amortized Cost, Unrealized Gains, Unrealized Losses and Fair Value of Cash Equivalents and Available for Sale Investments (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Cash And Cash Equivalents [Line Items] | ||
Amortized Cost | $ 39,409 | $ 42,256 |
Amortized Cost | 173,415 | 190,654 |
Unrealized Gains | 40 | 3 |
Unrealized Losses | (7) | (76) |
Fair Value | 173,448 | 190,581 |
Money Market Funds [Member] | ||
Cash And Cash Equivalents [Line Items] | ||
Amortized Cost | 32,954 | 34,771 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 32,954 | 34,771 |
U.S. Treasury Securities [Member] | ||
Cash And Cash Equivalents [Line Items] | ||
Amortized Cost | 54,185 | 56,999 |
Unrealized Gains | 7 | 0 |
Unrealized Losses | (5) | (41) |
Fair Value | 54,184 | 56,958 |
Agency Bonds [Member] | ||
Cash And Cash Equivalents [Line Items] | ||
Amortized Cost | 56,244 | 61,792 |
Unrealized Gains | 19 | 1 |
Unrealized Losses | (2) | (14) |
Fair Value | 56,264 | 61,779 |
Commercial Paper [Member] | ||
Cash And Cash Equivalents [Line Items] | ||
Amortized Cost | 20,509 | 19,448 |
Unrealized Gains | 8 | 0 |
Unrealized Losses | 0 | (13) |
Fair Value | 20,517 | 19,435 |
Corporate Obligations [Member] | ||
Cash And Cash Equivalents [Line Items] | ||
Amortized Cost | 9,523 | 17,644 |
Unrealized Gains | 6 | 2 |
Unrealized Losses | 0 | (8) |
Fair Value | $ 9,529 | $ 17,638 |
Cash Equivalents and Investme_4
Cash Equivalents and Investments - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash And Cash Equivalents [Abstract] | ||
Available for sale, investment in equity | $ 700,000 | |
Investments in continuous unrealized loss position for 12 months or longer | 0 | |
Interest income | $ 1,100,000 | $ 800,000 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Financial Assets at Fair Value (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | $ 173,448 | $ 190,581 |
Fair Value Measurements Using Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 87,138 | 91,729 |
Fair Value Measurements Using Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 86,310 | 98,852 |
Fair Value Measurements Using Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 0 | 0 |
Money Market Funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 32,954 | 34,771 |
Money Market Funds [Member] | Fair Value Measurements Using Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 32,954 | 34,771 |
Money Market Funds [Member] | Fair Value Measurements Using Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 0 | 0 |
Money Market Funds [Member] | Fair Value Measurements Using Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 0 | 0 |
U.S. Treasury Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 54,184 | 56,958 |
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] | ||
Assets at fair value | 54,184 | 56,958 |
U.S. Treasury Securities [Member] | Fair Value Measurements Using Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 0 | 0 |
U.S. Treasury Securities [Member] | Fair Value Measurements Using Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 0 | 0 |
Agency Bonds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 56,264 | 61,779 |
Agency Bonds [Member] | Fair Value Measurements Using Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 0 | 0 |
Agency Bonds [Member] | Fair Value Measurements Using Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 56,264 | 61,779 |
Agency Bonds [Member] | Fair Value Measurements Using Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 0 | 0 |
Commercial Paper [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 20,517 | 19,435 |
Commercial Paper [Member] | Fair Value Measurements Using Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 0 | 0 |
Commercial Paper [Member] | Fair Value Measurements Using Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 20,517 | 19,435 |
Commercial Paper [Member] | Fair Value Measurements Using Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 0 | 0 |
Corporate Obligations [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 9,529 | 17,638 |
Corporate Obligations [Member] | Fair Value Measurements Using Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 0 | 0 |
Corporate Obligations [Member] | Fair Value Measurements Using Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | 9,529 | 17,638 |
Corporate Obligations [Member] | Fair Value Measurements Using Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets at fair value | $ 0 | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | ||
Long-term debt, fair value | $ 42,600,000 | $ 42,400,000 |
Fair value of liabilities transferred from level 1 to level 2 | 0 | |
Fair value of liabilities transferred from level 2 to level 1 | 0 | |
Fair value of liabilities transferred into level 3 | 0 | |
Fair value of liabilities transferred from level 3 | $ 0 |
Balance Sheet Components - Summ
Balance Sheet Components - Summary of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Accrued liabilities: | ||
Research and development services | $ 7,457 | $ 8,618 |
Compensation related | 3,899 | 6,118 |
Other accrued expenses | 1,588 | 1,021 |
Total accrued liabilities | $ 12,944 | $ 15,757 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Leases [Abstract] | ||
Lease expiration year | 2021 | |
Weighted average remaining lease term | 2 years 3 months 18 days | |
Weighted average discount rate | 9.00% | |
Cash paid included in net cash used in operating activities | $ 1.2 | |
Rent expense | $ 1.3 | $ 1.2 |
Leases - Schedule of Undiscount
Leases - Schedule of Undiscounted Future Non-cancellable Lease Payments under Operating Leases (Detail) $ in Thousands | Mar. 31, 2019USD ($) |
Leases [Abstract] | |
2019 remainder | $ 3,532 |
2020 | 4,846 |
2021 | 2,464 |
Total undiscounted future lease payments | 10,842 |
Less: Present value adjustments | (1,071) |
Total lease liability | $ 9,771 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019USD ($)Installment | Sep. 30, 2018USD ($) | Mar. 31, 2018USD ($) | |
Debt Instrument [Line Items] | |||
Interest expense | $ 1,170 | $ 863 | |
Oxford and Silicon Valley Bank [Member] | Loan and Security Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Additional amount received on debt instrument | $ 10,000 | ||
Interest expense | $ 1,200 | $ 900 | |
Effective interest rate on the amounts borrowed under the Agreement | 9.30% | ||
Oxford and Silicon Valley Bank [Member] | Amended Loan Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Loan repayment terms | Payments on the notes payable will be interest only through November 2019, followed by 41 months of monthly payments of interest and principal. | ||
Number of installments description | 41 months of monthly payments of interest and principal | ||
Number of installments | Installment | 41 | ||
Final payment fee percentage | 6.50% | ||
Debt instrument, applicable interest rate for scenario 1 | 8.05% | ||
Debt instrument, base interest rate for scenario 2 | 6.81% | ||
Interest rate description | The interest rate under the Amended Loan Agreement is the greater of (a) 8.05% or (b) the sum of 6.81% plus the 30-day U.S. LIBOR rate. |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long Term Debt and Unamortized Debt Discount (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
Notes payable, gross | $ 42,000 | $ 42,000 |
Less: Unamortized debt discount and issuance costs, net of interest payable | (98) | (135) |
Accretion of final payment fee | 692 | 548 |
Carrying value of notes payable | 42,594 | 42,413 |
Less: Current portion of long-term debt | 6,212 | 2,607 |
Long-term debt | $ 36,382 | $ 39,806 |
Long-Term Debt - Schedule of Fu
Long-Term Debt - Schedule of Future Minimum Payments under Loan Agreement (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Carrying value of notes payable | $ 42,594 | $ 42,413 |
Long-term debt, alternative | ||
Carrying value of notes payable | 42,594 | 42,413 |
Notes payable, gross | 42,000 | $ 42,000 |
Loan and Security Agreement [Member] | Oxford and Silicon Valley Bank [Member] | ||
Debt Instrument [Line Items] | ||
2019 remainder | 4,184 | |
2020 | 17,634 | |
2021 | 16,266 | |
2022 | 15,248 | |
Carrying value of notes payable | 53,332 | |
Long-term debt, alternative | ||
Carrying value of notes payable | 53,332 | |
Less: Interest and final payment | (11,332) | |
Notes payable, gross | $ 42,000 |
Liability Related to Sale of _2
Liability Related to Sale of Future Royalties - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Feb. 28, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | |
Liability Related to Sale of Future Royalties [Line Items] | |||
Non-cash interest expense recognized | $ 4,819 | $ 4,129 | |
Royalty Purchase Agreement [Member] | |||
Liability Related to Sale of Future Royalties [Line Items] | |||
Cash payment under Royalty Agreement | $ 90,000 | ||
Non-cash interest expense recognized | $ 4,800 | $ 4,100 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Net proceeds of issuance of common stock | $ 5,117 | $ 0 |
Outstanding warrants | 142,359 | |
Outstanding warrants, weighted average exercise price | $ 6.85 | |
2004 Equity Plan [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Shares available for grant of options | 700,000 | |
Cantor Fitzgerald Agreement [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Common stock, shares issued in period | 562,811 | |
Net proceeds of issuance of common stock | $ 5,100 | |
Cantor Fitzgerald Agreement [Member] | Maximum [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Common stock aggregate offering price | $ 35,000 |