Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 29, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity Registrant Name | ARENA PHARMACEUTICALS, INC. | |
Entity File Number | 000-31161 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 23-2908305 | |
Entity Address, Address Line Two | Suite 204 | |
Entity Address, Address Line One | 136 Heber Avenue | |
Entity Address, City or Town | Park City | |
Entity Address, State or Province | UT | |
Entity Address, Postal Zip Code | 84060 | |
City Area Code | 858 | |
Local Phone Number | 453-7200 | |
Title of 12(b) Security | Common Stock, par value $0.0001 per share | |
Trading Symbol | ARNA | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 60,696,200 | |
Entity Central Index Key | 0001080709 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 432,978 | $ 219,544 |
Short-term investments, available-for-sale | 655,846 | 884,497 |
Prepaid expenses and other current assets | 32,781 | 35,266 |
Total current assets | 1,121,605 | 1,139,307 |
Land, property and equipment, net | 21,129 | 22,090 |
Other non-current assets | 41,202 | 29,323 |
Total assets | 1,183,936 | 1,190,720 |
Current liabilities: | ||
Accounts payable and other accrued liabilities | 21,980 | 35,351 |
Accrued clinical and preclinical study fees | 20,969 | 18,325 |
Current portion of lease financing obligations | 4,558 | 4,401 |
Total current liabilities | 47,507 | 58,077 |
Other long-term liabilities | 10,410 | 10,963 |
Lease financing obligations, less current portion | 40,027 | 41,211 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $0.0001 par value, 7,500,000 shares authorized, no shares issued and outstanding at March 31, 2021 and December 31, 2020 | 0 | 0 |
Common stock, $0.0001 par value, 147,000,000 shares authorized at March 31, 2021 and December 31, 2020; 60,619,144 and 58,611,210 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively | 6 | 6 |
Additional paid-in capital | 2,711,930 | 2,587,494 |
Accumulated other comprehensive income | 204 | 700 |
Accumulated deficit | (1,626,148) | (1,507,731) |
Total stockholders' equity | 1,085,992 | 1,080,469 |
Total liabilities and stockholders' equity | $ 1,183,936 | $ 1,190,720 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 7,500,000 | 7,500,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 147,000,000 | 147,000,000 |
Common stock, shares issued (in shares) | 60,619,144 | 58,611,210 |
Common stock, shares outstanding (in shares) | 60,619,144 | 58,611,210 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues: | ||
Revenue, Product and Service [Extensible List] | us-gaap:RoyaltyMember | us-gaap:RoyaltyMember |
Total revenues | $ 0 | $ 262 |
Operating Costs and Expenses: | ||
Research and development | 102,535 | 78,533 |
Selling, general and administrative | 29,458 | 26,442 |
Total operating costs and expenses | 131,993 | 104,975 |
Loss from operations | (131,993) | (104,713) |
Interest and Other Income (Expense): | ||
Interest income | 690 | 4,946 |
Interest expense | (1,073) | (1,163) |
Other income, net | 90 | 723 |
Gain from Longboard equity method investment | 13,869 | 0 |
Total interest and other income (expense), net | 13,576 | 4,506 |
Net loss | $ (118,417) | $ (100,207) |
Net loss per share, basic (in dollars per share) | $ (1.98) | $ (2) |
Net loss per share, diluted (in dollars per share) | $ (1.98) | $ (2) |
Shares used in calculating net loss per share, basic (in shares) | 59,780 | 50,228 |
Shares used in calculating net loss per share, diluted (in shares) | 59,780 | 50,228 |
Comprehensive Loss: | ||
Net loss | $ (118,417) | $ (100,207) |
Foreign currency translation loss | (165) | (14) |
Unrealized loss on available-for-sale investments | (331) | (1,164) |
Comprehensive loss | $ (118,913) | $ (101,385) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Beginning Balance (in shares) at Dec. 31, 2019 | 50,170,953 | ||||
Beginning Balance at Dec. 31, 2019 | $ 1,071,465 | $ 5 | $ 2,173,154 | $ 1,303 | $ (1,102,997) |
Shares issued from stock plans, net of payroll taxes paid (in shares) | 125,761 | ||||
Shares issued from stock plans, net of payroll taxes paid | 3,191 | 3,191 | |||
Share-based compensation expense | 15,214 | 15,214 | |||
Unrealized loss on available-for-sale investments | (1,164) | (1,164) | |||
Translation loss | (14) | (14) | |||
Net loss | (100,207) | (100,207) | |||
Ending Balance (in shares) at Mar. 31, 2020 | 50,296,714 | ||||
Ending Balance at Mar. 31, 2020 | $ 988,485 | $ 5 | 2,191,559 | 125 | (1,203,204) |
Beginning Balance (in shares) at Dec. 31, 2020 | 58,611,210 | 58,611,210 | |||
Beginning Balance at Dec. 31, 2020 | $ 1,080,469 | $ 6 | 2,587,494 | 700 | (1,507,731) |
Shares issued from stock plans, net of payroll taxes paid (in shares) | 766,792 | ||||
Shares issued from stock plans, net of payroll taxes paid | 8,982 | 8,982 | |||
Share-based compensation expense | 17,016 | 17,016 | |||
Issuance of common stock under the ATM facility, net (in shares) | 1,241,142 | ||||
Issuance of common stock under the ATM facility, net | 98,438 | 98,438 | |||
Unrealized loss on available-for-sale investments | (331) | (331) | |||
Translation loss | (165) | (165) | |||
Net loss | $ (118,417) | (118,417) | |||
Ending Balance (in shares) at Mar. 31, 2021 | 60,619,144 | 60,619,144 | |||
Ending Balance at Mar. 31, 2021 | $ 1,085,992 | $ 6 | $ 2,711,930 | $ 204 | $ (1,626,148) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Operating Activities: | ||
Net loss | $ (118,417) | $ (100,207) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 974 | 950 |
Share-based compensation | 17,016 | 15,214 |
Amortization of net premiums (discounts) on available-for-sale investments | 1,113 | (264) |
Gain from Longboard equity method investment | (13,869) | 0 |
Other operating activities, net | 1,659 | 22 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (379) | 1,498 |
Prepaid expenses and other assets | 3,194 | (9,818) |
Accounts payable, accrued liabilities and other current liabilities | (11,280) | (1,440) |
Net cash used in operating activities | (119,989) | (94,045) |
Investing Activities: | ||
Purchases of available-for-sale investments | (161,178) | (182,794) |
Proceeds from sale and maturity of available-for-sale investments | 388,385 | 222,235 |
Purchases of property and equipment | (97) | (532) |
Net cash provided by investing activities | 227,110 | 38,909 |
Financing Activities: | ||
Principal payments on lease financing obligations | (1,027) | (887) |
Proceeds from issuance of common stock under ATM facility, net | 98,438 | 0 |
Proceeds from issuance of common stock from stock plans, net | 8,982 | 3,191 |
Net cash provided by financing activities | 106,393 | 2,304 |
Effect of exchange rate changes on cash | (80) | (14) |
Net change in cash, cash equivalents and restricted cash | 213,434 | (52,846) |
Cash, cash equivalents and restricted cash at beginning of period | 219,770 | 243,500 |
Cash, cash equivalents and restricted cash at end of period | 433,204 | 190,654 |
Supplemental Disclosure: | ||
Cash paid for interest | $ 1,057 | $ 1,147 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Arena Pharmaceuticals, Inc. should be read in conjunction with the audited consolidated financial statements and notes thereto included in its Annual Report on Form 10-K for the year ended December 31, 2020, as filed with the Securities and Exchange Commission, or SEC, from which the Company derived its condensed consolidated balance sheet as of December 31, 2020. The accompanying condensed consolidated financial statements have been prepared in accordance with US generally accepted accounting principles, or GAAP, for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, since they are interim statements, the accompanying condensed consolidated financial statements do not include all of the information and notes required by GAAP for complete financial statements. The accompanying condensed consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, that are, in the opinion of our management, necessary to a fair statement of the results for the interim periods presented. Interim results are not necessarily indicative of results for a full year, particularly in light of the pandemic of coronavirus disease 2019, or COVID-19, and its impact on domestic and global economies. Liquidity. As of March 31, 2021, the Company had cash, cash equivalents and available-for-sale investments of approximately $1.1 billion. The Company believes its cash, cash equivalents and available-for-sale investments will be sufficient to fund its operations for at least the next 12 months. The Company will require substantial cash to achieve its objectives of discovering, developing and commercializing drugs, as this process typically takes many years and potentially hundreds of millions of dollars for an individual drug. The Company may not have adequate available cash, or assets that could be readily turned into cash, to meet these objectives in the long term. The Company will need to obtain significant funds under its existing collaborations, under new collaborations, licensing or other commercial agreements for one or more of its drug candidates, programs or patent portfolios, or from other potential sources of liquidity, which may include the sale of equity, issuance of debt or other transactions. The Company's ability to raise additional funds may be adversely impacted by potential worsening global economic conditions and potential disruptions to, and volatility in, the credit and financial markets in the United States and worldwide resulting from the ongoing COVID-19 pandemic. If the Company is not able to secure adequate additional funding, it may be forced to make reductions in spending, extend payment terms with its clinical research organizations and suppliers, liquidate assets where possible and/or suspend or curtail planned programs. Any of these actions could materially harm the Company's business, results of operations and future prospects. To the extent the Company obtains additional funding through product collaborations, these arrangements would generally require it to relinquish rights to some of its product candidates or products, and the Company may not be able to enter into such agreements on acceptable terms, if at all. Use of Estimates. The preparation of financial statements in accordance with GAAP requires the Company's management to make estimates and assumptions that affect the reported amounts (including assets, liabilities, revenues and expenses) and related disclosures. The amounts reported could differ under different estimates and assumptions. Reclassifications. Certain prior period amounts have been reclassified to conform to the current period presentation. Contingencies. The Company discloses information regarding each material claim where the likelihood of a loss contingency is probable or reasonably possible. The ability to predict the ultimate outcome of such matters involves judgments, estimates and inherent uncertainties. The actual outcome of such matters could differ materially from management’s estimates. Recent Accounting Pronouncements. From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (the “FASB”) or other standard setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed below, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its consolidated financial statements upon adoption. The following table provides a brief description of recently issued or adopted accounting standards: Standard Description Effective Date Effect on the Financial ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes ASU 2019-12 modifies ASC 740, Income Taxes to simplify the accounting for income taxes in various areas. January 1, 2021 The Company adopted ASU 2019-12 on January 1, 2021 which did not have a material impact on its consolidated financial statements. ASU 2020-01, Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) ASU 2020-01 clarifies the interactions between Topic 321 (equity securities), Topic 323 (equity method and joint ventures) and Topic 815 (derivatives and hedge accounting). The ASU addresses the accounting for the transition into and out of the equity method and measuring certain purchased options and forward contracts to acquire investments. January 1, 2021 The Company adopted ASU 2020-01 on January 1, 2021 which did not have a material impact on its consolidated financial statements. ASU 2020-08, Codification Improvements to Subtopic 310-20, Receivables—Nonrefundable Fees and Other Cost ASU 2020-08 clarifies an entity should, for each reporting period, reevaluate the amortization period for a premium paid on an individual callable debt security that has multiple call dates. January 1, 2021 The Company adopted ASU 2020-08 on January 1, 2021 which did not have a material impact on its consolidated financial statements. Concentrations of Credit Risk. The Company's financial instruments, which potentially subject the Company to concentrations of credit risk, consist primarily of cash, cash equivalents and available-for-sale investments. The Company limits its exposure to credit loss by holding cash primarily in US dollars or placing its cash and investments in US government, agency or government-sponsored enterprise obligations and in corporate debt instruments that are rated investment grade, in accordance with an investment policy approved by its Board of Directors. |
Cash, cash equivalents and rest
Cash, cash equivalents and restricted cash | 3 Months Ended |
Mar. 31, 2021 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | |
Cash, cash equivalents and restricted cash | Cash, cash equivalents and restricted cash The following table provides a reconciliation of the components of cash, cash equivalents and restricted cash reported in the accompanying condensed consolidated balance sheets to the total of the amount presented in the condensed consolidated statements of cash flows, in thousands: March 31, December 31, Cash and cash equivalents $ 432,978 $ 219,544 Restricted cash included in other non-current assets 226 226 Total cash, cash equivalents and restricted cash presented in the condensed $ 433,204 $ 219,770 The restricted cash relates to the Company’s property leases. The restriction will lapse when the related leases expire. |
Fair Value Disclosures
Fair Value Disclosures | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | Fair Value Disclosures The Company’s investments include cash equivalents and available-for-sale investment securities consisting of money market funds, U.S. treasury notes, and high quality, marketable debt instruments of corporations and government sponsored enterprises in accordance with the Company’s investment policy. The Company’s investment policy defines allowable investment securities and establishes guidelines relating to credit quality, diversification, and maturities of its investments to preserve principal and maintain liquidity. The Company measures its financial assets and liabilities at fair value, which is defined as the exit price, or the amount that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company uses the following three-level valuation hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs to value its financial assets and liabilities: Level 1 - Observable inputs such as unadjusted quoted prices in active markets for identical instruments. Level 2 - Quoted prices for similar instruments in active markets or inputs that are observable for the asset or liability, either directly or indirectly. Level 3 - Significant unobservable inputs based on our assumptions. The following tables present the Company's valuation hierarchy for its financial assets that are measured at fair value on a recurring basis, in thousands: Fair Value Measurements as of March 31, 2021 Level 1 Level 2 Level 3 Total Money market funds (1) $ 338,669 $ — $ — $ 338,669 US government and government agency notes (2) 418,205 — — 418,205 Corporate debt securities (2) — 128,134 — 128,134 Commercial paper (2) — 109,507 — 109,507 756,874 237,641 — 994,515 Fair Value Measurements as of December 31, 2020 Level 1 Level 2 Level 3 Total Money market funds (1) $ 64,361 $ — $ — $ 64,361 US government and government agency notes (2) 621,400 — — 621,400 Corporate debt securities (3) — 162,906 — 162,906 Commercial paper (3) — 131,525 — 131,525 $ 685,761 $ 294,431 $ — $ 980,192 ______________________ (1) Included in cash and cash equivalents in the accompanying condensed consolidated balance sheets. (2) Included in available-for-sale investments in the accompanying condensed consolidated balance sheets. (3) Included in either cash and cash equivalents or available-for-sale investments in the accompanying condensed consolidated balance sheets. |
Investments, Available-for-Sale
Investments, Available-for-Sale | 3 Months Ended |
Mar. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments, Available-for-Sale | Investments, Available-for-SaleInvestments, available-for-sale, consisted of the following, in thousands: March 31, 2021 Amortized Gross Gross Estimated US government and government agency notes $ 418,166 $ 54 $ (15) $ 418,205 Corporate debt securities 128,038 145 (49) 128,134 Commercial paper 109,515 9 (17) 109,507 Short-term investments, available-for-sale $ 655,719 $ 208 $ (81) $ 655,846 December 31, 2020 Amortized Gross Gross Estimated US government and government agency notes $ 621,281 $ 178 $ (59) $ 621,400 Corporate debt securities 160,244 362 (38) 160,568 Commercial paper 102,513 22 (6) 102,529 Short-term investments, available-for-sale $ 884,038 $ 562 $ (103) $ 884,497 |
Land, Property and Equipment, n
Land, Property and Equipment, net | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Land, Property and Equipment, net | Land, Property and Equipment, net Land, property and equipment, net consisted of the following, in thousands: March 31, December 31, Cost $ 74,733 $ 74,753 Less accumulated depreciation and amortization (53,604) (52,663) Land, property and equipment, net $ 21,129 $ 22,090 |
Equity Method Investment
Equity Method Investment | 3 Months Ended |
Mar. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investment | Equity Method Investment In October 2020, the Company announced the launch and $56.0 million Series A financing of Longboard Pharmaceuticals, Inc., or Longboard (formerly known as Arena Neuroscience, Inc.), which is expected to focus on developing novel central nervous system, or CNS, targeted assets discovered by the Company’s GPCR research engine. Longboard was previously a wholly owned subsidiary of Arena. As of the completion of Longboard’s Series A financing in October 2020, the Company’s ownership in Longboard comprised approximately 33.4% of the outstanding shares of capital stock of Longboard. The Company has licensed certain development and worldwide commercialization rights to Longboard and is entitled to receive royalties on potential sales of LP352, LP143 and LP659, in the future. In October 2020, the Company also entered into a separate services agreement with Longboard, pursuant to which it agreed to perform certain research and development services, general and administrative services, management services and other mutually agreed services for Longboard and receive service fees. The Company’s investment is accounted for as an equity method investment, and the investee, Longboard, is considered a related party. In March 2021, Longboard completed an initial public offering (“IPO”) and the Company’s ownership was diluted to 23.5%. The Company recorded a gain of approximately $13.9 million during the three months ended March 31, 2021 as a result of the offering to account for the related ownership dilution of its equity method investment. The gain was determined based upon the Company’s proportionate share of the increase in the net assets of Longboard from the offering. The carrying value and ownership percentage of the Company’s equity method investment is as follows, in thousands, except ownership percentages: March 31, 2021 December 31, 2020 Balance Sheet Location Carrying Value Ownership % Carrying Value Ownership % Longboard Other non-current assets $ 24,542 23.5 % $ 12,331 33.4 % Amounts included in the Company’s consolidated statements of operations related to the equity method investment is as follows, in thousands: Income Statement Location Three Months Ended Equity in losses from Longboard Other income, net $ (1,658) Gain from Longboard IPO Gain from Longboard equity method investment $ 13,869 Accounts receivable due from Longboard related to the service agreement was approximately $1.8 million as of March 31, 2021 and is classified in “Prepaid expenses and other current assets” in the condensed consolidated balance sheets. |
Accounts Payable and Other Accr
Accounts Payable and Other Accrued Liabilities | 3 Months Ended |
Mar. 31, 2021 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Other Accrued Liabilities | Accounts Payable and Other Accrued Liabilities Accounts payable and other accrued liabilities consisted of the following, in thousands: March 31, December 31, Accounts payable $ 9,547 $ 12,004 Accrued compensation 6,777 18,846 Other accrued liabilities 5,656 4,501 Total accounts payable and other accrued liabilities $ 21,980 $ 35,351 |
Collaborations and License Agre
Collaborations and License Agreements | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Collaborations and License Agreements | Collaborations and License Agreements Refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, for more information on its significant collaboration and license agreements. In 2016, the Company entered into a License and Collaboration Agreement with Beacon, pursuant to which the Company granted Beacon a non-exclusive, non-assignable and non-sublicensable license to certain database information relating to compounds, receptors and pharmacology, and transferred certain equipment to Beacon. In the first quarter of 2021, the Company received a $1.1 million payment as a result of the merger (“Merger”) between Eurofins Beacon Discovery Holdings, Inc. (“Eurofins”) and Beacon Discovery, Inc. (“Beacon”). This payment satisfied Beacon’s obligation to pay the Company a percentage of the consideration for such sale transaction in the event that Beacon is sold as outlined in the 2016 License and Collaboration Agreement. The Company is eligible to receive future contingent consideration payments based on certain performance metrics achieved by Beacon over a four-year performance period through the first quarter of 2025 up to an aggregate of $2.0 million. Following the Merger, the Company entered into a Consent and Release Agreement that terminated the Company’s rights of negotiation and rights of first refusal to potentially obtain licenses to certain compounds discovered and developed by Beacon. In addition, the Consent and Release Agreement terminated the Company’s right, under the 2016 License and Collaboration Agreement, to receive any revenue received by Beacon including upfront payments, milestone payments and royalties. The 2020 Collaboration and License Agreement with Beacon remains in effect and was not impacted by the Merger. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity In February 2020, the Company entered into a sales agreement with Credit Suisse Securities (USA) LLC, SVB Leerink LLC and Cantor Fitzgerald & Co., pursuant to which it may sell and issue shares of its common stock having an aggregate offering price of up to $250.0 million from time to time in transactions that are deemed to be “at-the-market offering” as defined in Rule 415(a)(4) under the Securities Act of 1933, as amended, or Securities Act. During the first quarter of 2021, the Company sold 1.2 million shares of common stock under the sales agreement at a weighted average price of $81.06 per share and realized gross proceeds of $100.6 million. As of April 29, 2021, the Company may sell and issue approximately $149.4 million in additional shares under the sales agreement. The Company recognized share-based compensation expense by function as follows, in thousands: Three Months Ended 2021 2020 Research and development $ 8,213 $ 6,591 Selling, general and administrative 8,803 8,623 Total share-based compensation expense $ 17,016 $ 15,214 The Company recognized share-based compensation expense by grant type as follows, in thousands: Three Months Ended 2021 2020 Stock options $ 14,006 $ 13,079 Restricted stock units 1,305 419 Performance-based restricted stock units 1,470 1,581 Employee stock purchase plan 235 135 Total share-based compensation expense $ 17,016 $ 15,214 Stock Options In March 2021, 1,062,226 stock options were granted to employees in a company-wide grant. The stock options vest over four years from the grant date. The grant-date fair value of $36.5 million is recognized as compensation expense over the vesting period. The fair value of each option issued to employees was estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions: Three Months Ended 2021 2020 Expected volatility 54 % 58 % Expected term (in years) 4.27 4.51 Risk-free interest rate 0.49 % 0.79 % Expected dividend yield 0.0 % 0.0 % The following table summarizes the stock option activity under the Company’s stock option plans during the three months ended March 31, 2021 (in thousands, except per share amounts and years): Options Weighted- Weighted- Intrinsic Value (1) Outstanding at January 1, 2021 8,699 $ 40.33 Granted 1,170 80.10 Exercised (564) 26.49 Forfeited/cancelled/expired (263) 47.09 Outstanding at March 31, 2021 9,042 $ 46.15 4.65 $ 224,038 Exercisable at March 31, 2021 4,223 $ 35.80 3.62 $ 142,131 ______________________ (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying options and the estimated fair value of the common stock for the options that were in the money at March 31, 2021. The aggregate intrinsic value of options exercised during the three months ended March 31, 2021 was $27.9 million. As of March 31, 2021, there was approximately $118.4 million of unrecognized compensation expense related to unvested stock options that is expected to be recognized over a weighted-average period of 2.8 years. Restricted Stock Units In March 2021, a total of 349,645 Restricted Stock Units, or RSUs, were granted to employees in a company-wide grant. The RSUs vest over four years from the grant date. The grant-date fair value of $28.0 million is recognized as compensation expense over the vesting period. Restricted stock unit awards are share awards that, upon vesting, will deliver to the holder shares of the Company’s common stock. The following table summarizes the Company’s RSU activity during the three months ended March 31, 2021, in thousands (except grant date fair value data): Number of Shares Weighted- Non-vested at January 1, 2021 243 $ 54.00 Granted 369 80.15 Released (5) 56.50 Forfeited/cancelled (17) 54.15 Non-vested at March 31, 2021 590 $ 70.32 As of March 31, 2021, there was approximately $37.7 million of unrecognized compensation expense related to unvested RSUs that is expected to be recognized over a remaining weighted-average period of 3.7 years. Performance-Based Restricted Stock Units In March 2021, a total of 205,072 target Performance-Based Restricted Stock Units, or PRSUs, were granted to employees in a company-wide grant. The PRSUs vest upon the closing price of the Company’s common stock, or the Closing Price, reaching certain price thresholds during the three-year performance period beginning March 2021 and ending February 2024, or the Performance Period, and the participant’s subsequent satisfaction of a continuing service requirement of generally 90 calendar days. If, on five consecutive trading days or ten non-consecutive trading days during the Performance Period, the Closing Price equals or exceeds $120.00, $130.00 or $145.00, and the participant thereafter satisfies the continuing service requirement, then the PRSUs are deemed vested at 50%, 100% or 200%, respectively, of the participant’s respective target PRSU amount. The shares may be issued following achievement of each price threshold, and the maximum number of common shares that may be issued pursuant to each PRSU grant equals 200% of the target number of PRSUs granted. As these awards contain a market condition, the Company used a Monte Carlo simulation model to estimate the grant-date fair value, which totaled $21.6 million. The grant-date fair value is recognized as compensation expense over the requisite service period of approximately 1.2 years which was derived from the Monte Carlo simulation; no compensation expense is recognized for service not provided upon separation from the Company. There is no adjustment of compensation expense recognized for service performed regardless of the number of PRSUs, if any, that ultimately vest. Performance awards are share awards that, upon vesting, will deliver to the holder shares of the Company’s common stock. The following table summarizes the Company’s PRSU activity during the three months ended March 31, 2021, in thousands (except grant date fair value data): Number of Shares Weighted- Non-vested at January 1, 2021 273 $ 27.97 Granted (1) 410 52.68 Released (273) 27.97 Forfeited/cancelled (1) 52.76 Non-vested at March 31, 2021 409 $ 52.49 ______________________ (1) Pursuant to the terms of the awards granted in March 2021, the actual number of awards earned could range between 0% and 200% of the above number of awards granted. The amount disclosed represents PRSU grants at maximum payout. As of March 31, 2021, there was approximately $20.1 million of unrecognized compensation expense related to unvested PRSUs. |
Loss Per Share
Loss Per Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Loss Per Share | Loss Per Share The Company calculates basic and diluted loss per share using the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by dividing the net loss by the weighted average number of common shares and common stock equivalents outstanding for the period determined using the treasury stock method. For purposes of this calculation, stock options, employee stock purchase plan rights, restricted stock units, and performance-based restricted stock units are considered to be common stock equivalents but are not included in the calculations of diluted net loss per share for periods of losses as their effect would be anti-dilutive. Since the Company reported a loss for the three months ended March 31, 2021, and 2020, in addition to excluding potentially dilutive out-of-the money securities, the Company excluded from its calculation of loss per share all potentially dilutive in-the-money (i) stock options, (ii) RSUs, and (iii) PRSUs, and its diluted net loss per share is the same as its basic net loss per share for those periods. The table below presents the weighted-average number of potentially dilutive securities that were excluded from the Company’s calculation of diluted loss per share for the years presented, in thousands. Three Months Ended 2021 2020 Outstanding stock options 3,923 6,874 Non-vested RSUs and PRSUs 100 215 Total 4,023 7,089 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of PresentationThe accompanying unaudited condensed consolidated financial statements of Arena Pharmaceuticals, Inc. should be read in conjunction with the audited consolidated financial statements and notes thereto included in its Annual Report on Form 10-K for the year ended December 31, 2020, as filed with the Securities and Exchange Commission, or SEC, from which the Company derived its condensed consolidated balance sheet as of December 31, 2020. The accompanying condensed consolidated financial statements have been prepared in accordance with US generally accepted accounting principles, or GAAP, for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, since they are interim statements, the accompanying condensed consolidated financial statements do not include all of the information and notes required by GAAP for complete financial statements. The accompanying condensed consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, that are, in the opinion of our management, necessary to a fair statement of the results for the interim periods presented. Interim results are not necessarily indicative of results for a full year, particularly in light of the pandemic of coronavirus disease 2019, or COVID-19, and its impact on domestic and global economies. |
Liquidity | Liquidity. As of March 31, 2021, the Company had cash, cash equivalents and available-for-sale investments of approximately $1.1 billion. The Company believes its cash, cash equivalents and available-for-sale investments will be sufficient to fund its operations for at least the next 12 months. The Company will require substantial cash to achieve its objectives of discovering, developing and commercializing drugs, as this process typically takes many years and potentially hundreds of millions of dollars for an individual drug. The Company may not have adequate available cash, or assets that could be readily turned into cash, to meet these objectives in the long term. The Company will need to obtain significant funds under its existing collaborations, under new collaborations, licensing or other commercial agreements for one or more of its drug candidates, programs or patent portfolios, or from other potential sources of liquidity, which may include the sale of equity, issuance of debt or other transactions. The Company's ability to raise additional funds may be adversely impacted by potential worsening global economic conditions and potential disruptions to, and volatility in, the credit and financial markets in the United States and worldwide resulting from the ongoing COVID-19 pandemic. If the Company is not able to secure adequate additional funding, it may be forced to make reductions in spending, extend payment terms with its clinical research organizations and suppliers, liquidate assets where possible and/or suspend or curtail planned programs. Any of these actions could materially harm the Company's business, results of operations and future prospects. To the extent the Company obtains additional funding through product collaborations, these arrangements would generally require it to relinquish rights to some of its product candidates or products, and the Company may not be able to enter into such agreements on acceptable terms, if at all. |
Use of Estimates | Use of Estimates. The preparation of financial statements in accordance with GAAP requires the Company's management to make estimates and assumptions that affect the reported amounts (including assets, liabilities, revenues and expenses) and related disclosures. The amounts reported could differ under different estimates and assumptions. |
Reclassification | Reclassifications. Certain prior period amounts have been reclassified to conform to the current period presentation. |
Contingencies | Contingencies.The Company discloses information regarding each material claim where the likelihood of a loss contingency is probable or reasonably possible. The ability to predict the ultimate outcome of such matters involves judgments, estimates and inherent uncertainties. The actual outcome of such matters could differ materially from management’s estimates. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements. From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (the “FASB”) or other standard setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed below, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its consolidated financial statements upon adoption. The following table provides a brief description of recently issued or adopted accounting standards: Standard Description Effective Date Effect on the Financial ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes ASU 2019-12 modifies ASC 740, Income Taxes to simplify the accounting for income taxes in various areas. January 1, 2021 The Company adopted ASU 2019-12 on January 1, 2021 which did not have a material impact on its consolidated financial statements. ASU 2020-01, Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) ASU 2020-01 clarifies the interactions between Topic 321 (equity securities), Topic 323 (equity method and joint ventures) and Topic 815 (derivatives and hedge accounting). The ASU addresses the accounting for the transition into and out of the equity method and measuring certain purchased options and forward contracts to acquire investments. January 1, 2021 The Company adopted ASU 2020-01 on January 1, 2021 which did not have a material impact on its consolidated financial statements. ASU 2020-08, Codification Improvements to Subtopic 310-20, Receivables—Nonrefundable Fees and Other Cost ASU 2020-08 clarifies an entity should, for each reporting period, reevaluate the amortization period for a premium paid on an individual callable debt security that has multiple call dates. January 1, 2021 The Company adopted ASU 2020-08 on January 1, 2021 which did not have a material impact on its consolidated financial statements. |
Concentrations of Credit Risk | Concentrations of Credit Risk. The Company's financial instruments, which potentially subject the Company to concentrations of credit risk, consist primarily of cash, cash equivalents and available-for-sale investments. The Company limits its exposure to credit loss by holding cash primarily in US dollars or placing its cash and investments in US government, agency or government-sponsored enterprise obligations and in corporate debt instruments that are rated investment grade, in accordance with an investment policy approved by its Board of Directors. |
Fair Value Measurements | The Company measures its financial assets and liabilities at fair value, which is defined as the exit price, or the amount that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company uses the following three-level valuation hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs to value its financial assets and liabilities: Level 1 - Observable inputs such as unadjusted quoted prices in active markets for identical instruments. Level 2 - Quoted prices for similar instruments in active markets or inputs that are observable for the asset or liability, either directly or indirectly. Level 3 - Significant unobservable inputs based on our assumptions. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Recently Issued Accounting Standards | The following table provides a brief description of recently issued or adopted accounting standards: Standard Description Effective Date Effect on the Financial ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes ASU 2019-12 modifies ASC 740, Income Taxes to simplify the accounting for income taxes in various areas. January 1, 2021 The Company adopted ASU 2019-12 on January 1, 2021 which did not have a material impact on its consolidated financial statements. ASU 2020-01, Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) ASU 2020-01 clarifies the interactions between Topic 321 (equity securities), Topic 323 (equity method and joint ventures) and Topic 815 (derivatives and hedge accounting). The ASU addresses the accounting for the transition into and out of the equity method and measuring certain purchased options and forward contracts to acquire investments. January 1, 2021 The Company adopted ASU 2020-01 on January 1, 2021 which did not have a material impact on its consolidated financial statements. ASU 2020-08, Codification Improvements to Subtopic 310-20, Receivables—Nonrefundable Fees and Other Cost ASU 2020-08 clarifies an entity should, for each reporting period, reevaluate the amortization period for a premium paid on an individual callable debt security that has multiple call dates. January 1, 2021 The Company adopted ASU 2020-08 on January 1, 2021 which did not have a material impact on its consolidated financial statements. |
Cash, cash equivalents and re_2
Cash, cash equivalents and restricted cash (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | |
Schedule of Cash, Cash Equivalents, and Restricted Cash | The following table provides a reconciliation of the components of cash, cash equivalents and restricted cash reported in the accompanying condensed consolidated balance sheets to the total of the amount presented in the condensed consolidated statements of cash flows, in thousands: March 31, December 31, Cash and cash equivalents $ 432,978 $ 219,544 Restricted cash included in other non-current assets 226 226 Total cash, cash equivalents and restricted cash presented in the condensed $ 433,204 $ 219,770 |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present the Company's valuation hierarchy for its financial assets that are measured at fair value on a recurring basis, in thousands: Fair Value Measurements as of March 31, 2021 Level 1 Level 2 Level 3 Total Money market funds (1) $ 338,669 $ — $ — $ 338,669 US government and government agency notes (2) 418,205 — — 418,205 Corporate debt securities (2) — 128,134 — 128,134 Commercial paper (2) — 109,507 — 109,507 756,874 237,641 — 994,515 Fair Value Measurements as of December 31, 2020 Level 1 Level 2 Level 3 Total Money market funds (1) $ 64,361 $ — $ — $ 64,361 US government and government agency notes (2) 621,400 — — 621,400 Corporate debt securities (3) — 162,906 — 162,906 Commercial paper (3) — 131,525 — 131,525 $ 685,761 $ 294,431 $ — $ 980,192 ______________________ (1) Included in cash and cash equivalents in the accompanying condensed consolidated balance sheets. (2) Included in available-for-sale investments in the accompanying condensed consolidated balance sheets. (3) Included in either cash and cash equivalents or available-for-sale investments in the accompanying condensed consolidated balance sheets. |
Investments, Available-for-Sa_2
Investments, Available-for-Sale (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Investments, Available-for-Sale | Investments, available-for-sale, consisted of the following, in thousands: March 31, 2021 Amortized Gross Gross Estimated US government and government agency notes $ 418,166 $ 54 $ (15) $ 418,205 Corporate debt securities 128,038 145 (49) 128,134 Commercial paper 109,515 9 (17) 109,507 Short-term investments, available-for-sale $ 655,719 $ 208 $ (81) $ 655,846 December 31, 2020 Amortized Gross Gross Estimated US government and government agency notes $ 621,281 $ 178 $ (59) $ 621,400 Corporate debt securities 160,244 362 (38) 160,568 Commercial paper 102,513 22 (6) 102,529 Short-term investments, available-for-sale $ 884,038 $ 562 $ (103) $ 884,497 |
Land, Property and Equipment,_2
Land, Property and Equipment, net (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Land, Property and Equipment | Land, property and equipment, net consisted of the following, in thousands: March 31, December 31, Cost $ 74,733 $ 74,753 Less accumulated depreciation and amortization (53,604) (52,663) Land, property and equipment, net $ 21,129 $ 22,090 |
Equity Method Investment (Table
Equity Method Investment (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Equity Method Investments | The carrying value and ownership percentage of the Company’s equity method investment is as follows, in thousands, except ownership percentages: March 31, 2021 December 31, 2020 Balance Sheet Location Carrying Value Ownership % Carrying Value Ownership % Longboard Other non-current assets $ 24,542 23.5 % $ 12,331 33.4 % Amounts included in the Company’s consolidated statements of operations related to the equity method investment is as follows, in thousands: Income Statement Location Three Months Ended Equity in losses from Longboard Other income, net $ (1,658) Gain from Longboard IPO Gain from Longboard equity method investment $ 13,869 |
Accounts Payable and Other Ac_2
Accounts Payable and Other Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Other Accrued Liabilities | Accounts payable and other accrued liabilities consisted of the following, in thousands: March 31, December 31, Accounts payable $ 9,547 $ 12,004 Accrued compensation 6,777 18,846 Other accrued liabilities 5,656 4,501 Total accounts payable and other accrued liabilities $ 21,980 $ 35,351 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Share Based Compensation Expense | The Company recognized share-based compensation expense by function as follows, in thousands: Three Months Ended 2021 2020 Research and development $ 8,213 $ 6,591 Selling, general and administrative 8,803 8,623 Total share-based compensation expense $ 17,016 $ 15,214 |
Schedule of Share-based Compensation Expense by Grant Type | The Company recognized share-based compensation expense by grant type as follows, in thousands: Three Months Ended 2021 2020 Stock options $ 14,006 $ 13,079 Restricted stock units 1,305 419 Performance-based restricted stock units 1,470 1,581 Employee stock purchase plan 235 135 Total share-based compensation expense $ 17,016 $ 15,214 |
Schedule of Black-Scholes Option Pricing Model | The fair value of each option issued to employees was estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions: Three Months Ended 2021 2020 Expected volatility 54 % 58 % Expected term (in years) 4.27 4.51 Risk-free interest rate 0.49 % 0.79 % Expected dividend yield 0.0 % 0.0 % |
Summary of Stock Option Activity | The following table summarizes the stock option activity under the Company’s stock option plans during the three months ended March 31, 2021 (in thousands, except per share amounts and years): Options Weighted- Weighted- Intrinsic Value (1) Outstanding at January 1, 2021 8,699 $ 40.33 Granted 1,170 80.10 Exercised (564) 26.49 Forfeited/cancelled/expired (263) 47.09 Outstanding at March 31, 2021 9,042 $ 46.15 4.65 $ 224,038 Exercisable at March 31, 2021 4,223 $ 35.80 3.62 $ 142,131 ______________________ (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying options and the estimated fair value of the common stock for the options that were in the money at March 31, 2021. |
Schedule of Restricted and Performance Stock Awards | The following table summarizes the Company’s RSU activity during the three months ended March 31, 2021, in thousands (except grant date fair value data): Number of Shares Weighted- Non-vested at January 1, 2021 243 $ 54.00 Granted 369 80.15 Released (5) 56.50 Forfeited/cancelled (17) 54.15 Non-vested at March 31, 2021 590 $ 70.32 Number of Shares Weighted- Non-vested at January 1, 2021 273 $ 27.97 Granted (1) 410 52.68 Released (273) 27.97 Forfeited/cancelled (1) 52.76 Non-vested at March 31, 2021 409 $ 52.49 ______________________ (1) Pursuant to the terms of the awards granted in March 2021, the actual number of awards earned could range between 0% and 200% of the above number of awards granted. The amount disclosed represents PRSU grants at maximum payout. |
Loss Per Share (Tables)
Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Potentially Dilutive Securities Excluded from Calculation of Diluted Net Income (Loss) Per Share | The table below presents the weighted-average number of potentially dilutive securities that were excluded from the Company’s calculation of diluted loss per share for the years presented, in thousands. Three Months Ended 2021 2020 Outstanding stock options 3,923 6,874 Non-vested RSUs and PRSUs 100 215 Total 4,023 7,089 |
Basis of Presentation (Detail)
Basis of Presentation (Detail) $ in Billions | Mar. 31, 2021USD ($) |
Accounting Policies [Abstract] | |
Cash, cash equivalents, and available-for-sale investments | $ 1.1 |
Cash, cash equivalents and re_3
Cash, cash equivalents and restricted cash (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | ||
Cash and cash equivalents | $ 432,978 | $ 219,544 |
Restricted cash included in other non-current assets | 226 | 226 |
Total cash, cash equivalents and restricted cash presented in the condensed consolidated statements of cash flows | $ 433,204 | $ 219,770 |
Restricted Cash, Asset, Statement of Financial Position [Extensible List] | us-gaap:PrepaidExpenseAndOtherAssets | us-gaap:PrepaidExpenseAndOtherAssets |
Fair Value Disclosures (Detail)
Fair Value Disclosures (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Assets: | ||
Total financial assets | $ 994,515 | $ 980,192 |
Money market funds | ||
Assets: | ||
Total financial assets | 338,669 | 64,361 |
US government and government agency notes | ||
Assets: | ||
Total financial assets | 418,205 | 621,400 |
Corporate debt securities | ||
Assets: | ||
Total financial assets | 128,134 | 162,906 |
Commercial paper | ||
Assets: | ||
Total financial assets | 109,507 | 131,525 |
Level 1 | ||
Assets: | ||
Total financial assets | 756,874 | 685,761 |
Level 1 | Money market funds | ||
Assets: | ||
Total financial assets | 338,669 | 64,361 |
Level 1 | US government and government agency notes | ||
Assets: | ||
Total financial assets | 418,205 | 621,400 |
Level 1 | Corporate debt securities | ||
Assets: | ||
Total financial assets | 0 | 0 |
Level 1 | Commercial paper | ||
Assets: | ||
Total financial assets | 0 | 0 |
Level 2 | ||
Assets: | ||
Total financial assets | 237,641 | 294,431 |
Level 2 | Money market funds | ||
Assets: | ||
Total financial assets | 0 | 0 |
Level 2 | US government and government agency notes | ||
Assets: | ||
Total financial assets | 0 | 0 |
Level 2 | Corporate debt securities | ||
Assets: | ||
Total financial assets | 128,134 | 162,906 |
Level 2 | Commercial paper | ||
Assets: | ||
Total financial assets | 109,507 | 131,525 |
Level 3 | ||
Assets: | ||
Total financial assets | 0 | 0 |
Level 3 | Money market funds | ||
Assets: | ||
Total financial assets | 0 | 0 |
Level 3 | US government and government agency notes | ||
Assets: | ||
Total financial assets | 0 | 0 |
Level 3 | Corporate debt securities | ||
Assets: | ||
Total financial assets | 0 | 0 |
Level 3 | Commercial paper | ||
Assets: | ||
Total financial assets | $ 0 | $ 0 |
Investments, Available-for-Sa_3
Investments, Available-for-Sale (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | $ 655,719 | $ 884,038 | |
Gross Unrealized Gains | 208 | $ 562 | |
Gross Unrealized Losses | (81) | (103) | |
Estimated Fair Value | 655,846 | 884,497 | |
US government and government agency notes | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 418,166 | 621,281 | |
Gross Unrealized Gains | 54 | 178 | |
Gross Unrealized Losses | (15) | (59) | |
Estimated Fair Value | 418,205 | 621,400 | |
Corporate debt securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 128,038 | 160,244 | |
Gross Unrealized Gains | 145 | 362 | |
Gross Unrealized Losses | (49) | (38) | |
Estimated Fair Value | 128,134 | $ 160,568 | |
Commercial paper | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 109,515 | 102,513 | |
Gross Unrealized Gains | 9 | 22 | |
Gross Unrealized Losses | (17) | (6) | |
Estimated Fair Value | $ 109,507 | $ 102,529 |
Land, Property and Equipment,_3
Land, Property and Equipment, net (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Abstract] | ||
Cost | $ 74,733 | $ 74,753 |
Less accumulated depreciation and amortization | (53,604) | (52,663) |
Land, property and equipment, net | $ 21,129 | $ 22,090 |
Equity Method Investment - Addi
Equity Method Investment - Additional Information (Details) - USD ($) $ in Thousands | Oct. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 |
Schedule of Equity Method Investments [Line Items] | |||
Gain from Longboard equity method investment | $ 13,869 | $ 0 | |
Longboard Pharmaceuticals Inc. | |||
Schedule of Equity Method Investments [Line Items] | |||
Series A financing | $ 56,000 | ||
Ownership % | 33.40% | 23.50% | |
Gain from Longboard equity method investment | $ 13,900 | ||
Accounts receivable | $ 1,800 |
Equity Method Investment - Sche
Equity Method Investment - Schedule of Equity Method Investment (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | |||
Gain from Longboard equity method investment | $ 13,869 | $ 0 | |
Longboard Pharmaceuticals Inc. | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership % | 23.50% | 33.40% | |
Longboard Pharmaceuticals Inc. | Other income, net | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity in losses from Longboard | $ (1,658) | ||
Gain from Longboard equity method investment | 13,869 | ||
Other non-current assets | Longboard Pharmaceuticals Inc. | |||
Schedule of Equity Method Investments [Line Items] | |||
Carrying Value | $ 24,542 | $ 12,331 |
Accounts Payable and Other Ac_3
Accounts Payable and Other Accrued Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Accounts payable | $ 9,547 | $ 12,004 |
Accrued compensation | 6,777 | 18,846 |
Other accrued liabilities | 5,656 | 4,501 |
Total accounts payable and other accrued liabilities | $ 21,980 | $ 35,351 |
Collaborations and License Ag_2
Collaborations and License Agreements (Detail) - Beacon $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Payments received | $ 1.1 |
Performance period | 4 years |
Aggregate future payments eligible to be received | $ 2 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Detail) - USD ($) $ / shares in Units, $ in Thousands | Mar. 31, 2021 | Mar. 31, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Apr. 29, 2021 | Feb. 29, 2020 |
Stockholders Equity [Line Items] | ||||||
Options granted (in shares) | 1,062,226 | 1,170,000 | ||||
Total share-based compensation expense | $ 17,016 | $ 15,214 | ||||
Intrinsic value of options exercised | 27,900 | |||||
Maximum | ||||||
Stockholders Equity [Line Items] | ||||||
Aggregate offering price of common stock | $ 250,000 | |||||
Restricted stock units | ||||||
Stockholders Equity [Line Items] | ||||||
Vesting period | 4 years | |||||
Total share-based compensation expense | 1,305 | 419 | ||||
Unrecognized compensation expense | $ 37,700 | $ 37,700 | $ 37,700 | |||
Unvested stock weighted-average recognition period | 3 years 8 months 12 days | |||||
Units granted | 349,645 | 369,000 | ||||
Compensation expense to be recognized | 28,000 | $ 28,000 | $ 28,000 | |||
Outstanding stock options | ||||||
Stockholders Equity [Line Items] | ||||||
Vesting period | 4 years | |||||
Total share-based compensation expense | 36,500 | 14,006 | 13,079 | |||
Unrecognized compensation expense | 118,400 | $ 118,400 | $ 118,400 | |||
Unvested stock weighted-average recognition period | 2 years 9 months 18 days | |||||
Performance-based restricted stock units | ||||||
Stockholders Equity [Line Items] | ||||||
Vesting period | 3 years | |||||
Total share-based compensation expense | $ 1,470 | $ 1,581 | ||||
Unrecognized compensation expense | 20,100 | $ 20,100 | $ 20,100 | |||
Units granted | 205,072 | 410,000 | ||||
Compensation expense to be recognized | $ 21,600 | $ 21,600 | $ 21,600 | |||
Requisite service period | 1 year 2 months 12 days | |||||
Performance-based restricted stock units | Scenario, Plan | Maximum | ||||||
Stockholders Equity [Line Items] | ||||||
Percentage of shares granted | 200.00% | |||||
Performance-based restricted stock units | Share-based Payment Arrangement, Tranche One | Scenario, Plan | ||||||
Stockholders Equity [Line Items] | ||||||
Vesting rate | 50.00% | |||||
Performance-based restricted stock units | Share-based Payment Arrangement, Tranche One | Scenario, Plan | Minimum | ||||||
Stockholders Equity [Line Items] | ||||||
Common stock closing price (in USD per share) | $ 120 | $ 120 | $ 120 | |||
Performance-based restricted stock units | Share-based Payment Arrangement, Tranche Two | Scenario, Plan | ||||||
Stockholders Equity [Line Items] | ||||||
Vesting rate | 100.00% | |||||
Performance-based restricted stock units | Share-based Payment Arrangement, Tranche Two | Scenario, Plan | Minimum | ||||||
Stockholders Equity [Line Items] | ||||||
Common stock closing price (in USD per share) | 130 | 130 | $ 130 | |||
Performance-based restricted stock units | Share-based Payment Arrangement, Tranche Three | Scenario, Plan | ||||||
Stockholders Equity [Line Items] | ||||||
Vesting rate | 200.00% | |||||
Performance-based restricted stock units | Share-based Payment Arrangement, Tranche Three | Scenario, Plan | Minimum | ||||||
Stockholders Equity [Line Items] | ||||||
Common stock closing price (in USD per share) | 145 | 145 | $ 145 | |||
Subsequent Event | Maximum | ||||||
Stockholders Equity [Line Items] | ||||||
Aggregate offering price of common stock | $ 149,400 | |||||
Common Stock | ||||||
Stockholders Equity [Line Items] | ||||||
Shares issued under sales agreement (in shares) | 1,200,000 | |||||
Price per share (in USD per share) | $ 81.06 | $ 81.06 | $ 81.06 | |||
Proceeds from sale of stock | $ 100,600 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Share Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total share-based compensation expense | $ 17,016 | $ 15,214 |
Research and development | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total share-based compensation expense | 8,213 | 6,591 |
Selling, general and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total share-based compensation expense | $ 8,803 | $ 8,623 |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of Share Based Compensation Expense by Grant Type (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2021 | Mar. 31, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | $ 17,016 | $ 15,214 | |
Outstanding stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | $ 36,500 | 14,006 | 13,079 |
Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | 1,305 | 419 | |
Performance-based restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | 1,470 | 1,581 | |
Employee stock purchase plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | $ 235 | $ 135 |
Stockholders' Equity - Schedu_3
Stockholders' Equity - Schedule of Black Scholes Option Pricing Model (Detail) - Outstanding stock options | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 54.00% | 58.00% |
Expected term (in years) | 4 years 3 months 7 days | 4 years 6 months 3 days |
Risk-free interest rate | 0.49% | 0.79% |
Expected dividend yield | 0.00% | 0.00% |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Stock Option Activity (Detail) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended |
Mar. 31, 2021USD ($)$ / sharesshares | Mar. 31, 2021USD ($)$ / sharesshares | |
Options | ||
Options outstanding at beginning of period (in shares) | shares | 8,699,000 | |
Options granted (in shares) | shares | 1,062,226 | 1,170,000 |
Options exercised (in shares) | shares | (564,000) | |
Options forfeited/cancelled/expired (in shares) | shares | (263,000) | |
Options outstanding at end of period (in shares) | shares | 9,042,000 | 9,042,000 |
Options exercisable (in shares) | shares | 4,223,000 | 4,223,000 |
Weighted- Average Exercise Price | ||
Weighted-average exercise price of options outstanding at beginning of period (in USD per share) | $ / shares | $ 40.33 | |
Weighted-average exercise price of options granted (in USD per share) | $ / shares | 80.10 | |
Weighted-average exercise price of options exercised (in USD per share) | $ / shares | 26.49 | |
Weighted-average exercise price of options forfeited/cancelled/expired (in USD per share) | $ / shares | 47.09 | |
Weighted-average exercise price of options outstanding at end of period (in USD per share) | $ / shares | $ 46.15 | 46.15 |
Weighted-average exercise price of options exercisable (in USD per share) | $ / shares | $ 35.80 | $ 35.80 |
Weighted- Average Contractual Life (in years) | ||
Weighted-average contractual life of options outstanding | 4 years 7 months 24 days | |
Weighted-average contractual life of options exercisable | 3 years 7 months 13 days | |
Intrinsic Value | ||
Intrinsic value of options outstanding | $ | $ 224,038 | $ 224,038 |
Intrinsic value of options exercisable | $ | $ 142,131 | $ 142,131 |
Stockholders' Equity - Schedu_4
Stockholders' Equity - Schedule of Restricted Stock and Performance Stock (Detail) - $ / shares | 1 Months Ended | 3 Months Ended |
Mar. 31, 2021 | Mar. 31, 2021 | |
Restricted stock units | ||
Number of Shares | ||
Nonvested shares at beginning of period (in shares) | 243,000 | |
Nonvested shares granted (in shares) | 349,645 | 369,000 |
Nonvested shares released (in shares) | (5,000) | |
Nonvested shares forfeited/cancelled (in shares) | (17,000) | |
Number of nonvested shares at end of period (in shares) | 590,000 | 590,000 |
Weighted- Average Grant Date Fair Value | ||
Weighted-average grant date fair value of nonvested shares at beginning of period (in USD per share) | $ 54 | |
Weighted-average grant date fair value of nonvested shares granted (in USD per share) | 80.15 | |
Weighted-average grant date fair value of nonvested shares released (in USD per share) | 56.50 | |
Weighted-average grant date fair value of nonvested shares forfeited/cancelled (in USD per share) | 54.15 | |
Weighted-average grant date fair value of nonvested shares at end of period (in USD per share) | $ 70.32 | $ 70.32 |
Performance-based restricted stock units | ||
Number of Shares | ||
Nonvested shares at beginning of period (in shares) | 273,000 | |
Nonvested shares granted (in shares) | 205,072 | 410,000 |
Nonvested shares released (in shares) | (273,000) | |
Nonvested shares forfeited/cancelled (in shares) | (1,000) | |
Number of nonvested shares at end of period (in shares) | 409,000 | 409,000 |
Weighted- Average Grant Date Fair Value | ||
Weighted-average grant date fair value of nonvested shares at beginning of period (in USD per share) | $ 27.97 | |
Weighted-average grant date fair value of nonvested shares granted (in USD per share) | 52.68 | |
Weighted-average grant date fair value of nonvested shares released (in USD per share) | 27.97 | |
Weighted-average grant date fair value of nonvested shares forfeited/cancelled (in USD per share) | 52.76 | |
Weighted-average grant date fair value of nonvested shares at end of period (in USD per share) | $ 52.49 | $ 52.49 |
Minimum range of awards earned in period | 0.00% | |
Maximum range of awards earned in period | 200.00% |
Loss Per Share (Detail)
Loss Per Share (Detail) - shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total antidilutive securities excluded from calculation of diluted loss per share (in shares) | 4,023,000 | 7,089,000 |
Outstanding stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total antidilutive securities excluded from calculation of diluted loss per share (in shares) | 3,923,000 | 6,874,000 |
Non-vested RSUs and PRSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total antidilutive securities excluded from calculation of diluted loss per share (in shares) | 100,000 | 215,000 |