DURECT (DRRX) 10-Q 3 Nov 22 2022 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2022	Nov. 01, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Title of 12(b) Security	Common Stock $0.0001 par value per share
Security Exchange Name	NASDAQ
Entity Interactive Data Current	Yes
Trading Symbol	DRRX
Entity Registrant Name	DURECT CORP
Entity Central Index Key	0001082038
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		227,859,838
Entity Shell Company	false
Entity Incorporation, State or Country Code	DE
Entity File Number	000-31615
Entity Tax Identification Number	94-3297098
Entity Address, Address Line One	10260 Bubb Road
Entity Address, City or Town	Cupertino
Entity Address, State or Province	CA
Entity Current Reporting Status	Yes
Entity Address, Postal Zip Code	95014
City Area Code	408
Local Phone Number	777-1417
Document Quarterly Report	true
Document Transition Report	false

Condensed Balance Sheets

Condensed Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 50,394	$ 49,844
Short-term investments	1,499	19,966
Accounts receivable, net	3,229	6,477
Inventories, net	2,269	1,870
Prepaid expenses and other current assets	1,955	3,580
Total current assets	59,346	81,737
Property and equipment, net	211	227
Operating lease right-of-use assets	2,340	3,446
Goodwill	6,169	6,169
Long-term restricted investments	150	150
Other long-term assets	256	261
Total assets	68,472	91,990
Current liabilities:
Accounts payable	2,139	1,311
Accrued liabilities	6,240	6,799
Deferred revenue, current portion		98
Term loan, current portion, net	3,106
Operating lease liabilities, current portion	1,872	1,848
Total current liabilities	13,357	10,056
Deferred revenue, non-current portion	812	812
Operating lease liabilities, non-current portion	639	1,824
Term loan, non-current portion, net	17,928	20,632
Other long-term liabilities	882	884
Commitments and contingencies
Stockholders’ equity:
Common stock	23	23
Additional paid-in capital	585,752	583,818
Accumulated other comprehensive loss	(8)	(10)
Accumulated deficit	(550,913)	(526,049)
Stockholders’ equity	34,854	57,782
Total liabilities and stockholders’ equity	$ 68,472	$ 91,990

Condensed Statements of Operati

Condensed Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Total revenues	$ 11,977,000	$ 2,165,000	$ 15,968,000	$ 6,680,000
Operating expenses:
Cost of product revenues	$ 345,000	$ 364,000	$ 1,073,000	$ 1,075,000
Type of cost, good or service [extensible list]	Product Revenue, Net [Member]	Product Revenue, Net [Member]	Product Revenue, Net [Member]	Product Revenue, Net [Member]
Research and development	$ 9,881,000	$ 8,023,000	$ 26,909,000	$ 23,431,000
Selling, general and administrative	3,883,000	3,236,000	11,570,000	9,935,000
Total operating expenses	14,109,000	11,623,000	39,552,000	34,441,000
Loss from operations	(2,132,000)	(9,458,000)	(23,584,000)	(27,761,000)
Other income (expense):
Interest and other income	284,000	34,000	465,000	110,000
Interest and other expenses	(623,000)	(553,000)	(1,745,000)	(1,606,000)
Net other expense	(339,000)	(519,000)	(1,280,000)	(1,496,000)
Net loss	(2,471,000)	(9,977,000)	(24,864,000)	(29,257,000)
Net change in unrealized loss on available-for-sale securities, net of reclassification adjustments and taxes	17,000	3,000	2,000	7,000
Total comprehensive loss	$ (2,454,000)	$ (9,974,000)	$ (24,862,000)	$ (29,250,000)
Net loss per share
Basic	$ (0.01)	$ (0.04)	$ (0.11)	$ (0.13)
Diluted	$ (0.01)	$ (0.04)	$ (0.11)	$ (0.13)
Weighted-average shares used in computing net loss per share
Basic	227,774	227,499	227,735	224,191
Diluted	227,774	227,499	227,735	224,191
Collaborative Research and Development and Other Revenue [Member]
Total revenues	$ 10,585,000	$ 443,000	$ 11,686,000	$ 1,752,000
Product Revenue, Net [Member]
Total revenues	$ 1,392,000	$ 1,722,000	$ 4,282,000	$ 4,928,000

Condensed Statements of Stockho

Condensed Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock [Member]	Additional paid-in capital [Member]	Accumulated other comprehensive loss [Member]	Accumulated deficit [Member]
Beginning balance at Dec. 31, 2020	$ 40,115	$ 20	$ 529,884	$ (5)	$ (489,784)
Beginning balance, shares at Dec. 31, 2020		203,533
Issuance of common stock upon exercise of stock options	3,263	$ 1	3,262
Issuance of common stock upon exercise of stock options, Shares		2,502
Issuance of common stock upon equity financings, net of issuance costs	47,786	$ 2	47,784
Issuance of common stock upon equity financings, net of issuance cost, shares		21,315
Stock-based compensation expense from stock options and ESPP shares	702		702
Net loss	(10,134)				(10,134)
Unrealized gain on available-for-sale securities, net of tax	(9)			(9)
Ending balance at Mar. 31, 2021	81,723	$ 23	581,632	(14)	(499,918)
Ending balance, shares at Mar. 31, 2021		227,350
Beginning balance at Dec. 31, 2020	40,115	$ 20	529,884	(5)	(489,784)
Beginning balance, shares at Dec. 31, 2020		203,533
Net loss	(29,257)
Ending balance at Sep. 30, 2021	64,027	$ 23	583,043	2	(519,041)
Ending balance, shares at Sep. 30, 2021		227,506
Beginning balance at Mar. 31, 2021	81,723	$ 23	581,632	(14)	(499,918)
Beginning balance, shares at Mar. 31, 2021		227,350
Issuance of common stock upon exercise of stock options, ESPP purchases and other	163		163
Issuance of common stock upon exercise of stock options, ESPP purchases and other, shares		146
Stock-based compensation expense from stock options and ESPP shares	710		710
Net loss	(9,146)				(9,146)
Unrealized gain on available-for-sale securities, net of tax	13			13
Ending balance at Jun. 30, 2021	73,463	$ 23	582,505	(1)	(509,064)
Ending balance, shares at Jun. 30, 2021		227,496
Issuance of common stock upon exercise of stock options	11		11
Issuance of common stock upon exercise of stock options, Shares		10
Issuance of common stock upon equity financings, net of issuance costs	(126)		(126)
Stock-based compensation expense from stock options and ESPP shares	653		653
Net loss	(9,977)				(9,977)
Unrealized gain on available-for-sale securities, net of tax	3			3
Ending balance at Sep. 30, 2021	64,027	$ 23	583,043	2	(519,041)
Ending balance, shares at Sep. 30, 2021		227,506
Beginning balance at Dec. 31, 2021	57,782	$ 23	583,818	(10)	(526,049)
Beginning balance, shares at Dec. 31, 2021		227,680
Issuance of common stock upon exercise of stock options	8		8
Issuance of common stock upon exercise of stock options, Shares		14
Stock-based compensation expense from stock options and ESPP shares	678		678
Net loss	(10,842)				(10,842)
Unrealized gain on available-for-sale securities, net of tax	(19)			(19)
Ending balance at Mar. 31, 2022	47,607	$ 23	584,504	(29)	(536,891)
Ending balance, shares at Mar. 31, 2022		227,694
Beginning balance at Dec. 31, 2021	57,782	$ 23	583,818	(10)	(526,049)
Beginning balance, shares at Dec. 31, 2021		227,680
Net loss	(24,864)
Ending balance at Sep. 30, 2022	34,854	$ 23	585,752	(8)	(550,913)
Ending balance, shares at Sep. 30, 2022		227,794
Beginning balance at Mar. 31, 2022	47,607	$ 23	584,504	(29)	(536,891)
Beginning balance, shares at Mar. 31, 2022		227,694
Issuance of common stock upon exercise of stock options	27		27
Issuance of common stock upon exercise of stock options, Shares		70
Issuance of common stock upon exercise of stock options, ESPP purchases and other	617		617
Net loss	(11,551)				(11,551)
Unrealized gain on available-for-sale securities, net of tax	4			4
Ending balance at Jun. 30, 2022	36,704	$ 23	585,148	(25)	(548,442)
Ending balance, shares at Jun. 30, 2022		227,764
Issuance of common stock upon equity financings, net of issuance costs	25		25
Issuance of common stock upon equity financings, net of issuance cost, shares		30
Stock-based compensation expense from stock options and ESPP shares	579		579
Net loss	(2,471)				(2,471)
Unrealized gain on available-for-sale securities, net of tax	17			17
Ending balance at Sep. 30, 2022	$ 34,854	$ 23	$ 585,752	$ (8)	$ (550,913)
Ending balance, shares at Sep. 30, 2022		227,794

Condensed Statements of Stock_2

Condensed Statements of Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Mar. 31, 2021
Statement Of Stockholders Equity [Abstract]
Stock issuance costs	$ 506	$ 126	$ 269

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows - USD ($) $ in Thousands		9 Months Ended
		Sep. 30, 2022	Sep. 30, 2021
Cash flows from operating activities
Net loss		$ (24,864)	$ (29,257)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		109	92
Stock-based compensation		1,874	2,065
Amortization of debt issuance cost		358	330
Net amortization on investments		16	(80)
Changes in operating lease liabilities		(55)	(12)
Changes in assets and liabilities:
Accounts receivable		3,248	(6)
Inventories		(399)	(406)
Prepaid expenses and other assets		1,630	1,307
Accounts payable		828	216
Accrued liabilities		(516)	(449)
Deferred revenue		(98)
Total adjustments		6,995	3,057
Net cash used in operating activities		(17,869)	(26,200)
Cash flows from investing activities
Purchases of property and equipment		(93)	(184)
Purchases of available-for-sale securities			(44,812)
Proceeds from maturities of available-for-sale securities		18,453	39,936
Net proceeds from sale of LACTEL product line			14,979
Net cash provided by investing activities		18,360	9,919
Cash flows from financing activities
Payments on equipment financing obligations		(1)	(2)
Payment for long-term debt amendment fee			(713)
Net proceeds from issuances of common stock		60	51,096
Net cash provided by financing activities		59	50,381
Net increase in cash, cash equivalents, and restricted cash		550	34,100
Cash, cash equivalents, and restricted cash, beginning of the period	[1]	49,994	21,462
Cash, cash equivalents, and restricted cash, end of the period	[1]	$ 50,544	$ 55,562
[1] Nine months ended 2022 2021 Cash flows from operating activities Net loss $ ( 24,864 ) $ ( 29,257 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 109 92 Stock-based compensation 1,874 2,065 Amortization of debt issuance cost 358 330 Net amortization on investments 16 ( 80 ) Changes in operating lease liabilities ( 55 ) ( 12 ) Changes in assets and liabilities: Accounts receivable 3,248 ( 6 ) Inventories ( 399 ) ( 406 ) Prepaid expenses and other assets 1,630 1,307 Accounts payable 828 216 Accrued liabilities ( 516 ) ( 449 ) Deferred revenue ( 98 ) - Total adjustments 6,995 3,057 Net cash used in operating activities ( 17,869 ) ( 26,200 ) Cash flows from investing activities Purchases of property and equipment ( 93 ) ( 184 ) Purchases of available-for-sale securities — ( 44,812 ) Proceeds from maturities of available-for-sale securities 18,453 39,936 Net proceeds from sale of LACTEL product line — 14,979 Net cash provided by investing activities 18,360 9,919 Cash flows from financing activities Payments on equipment financing obligations ( 1 ) ( 2 ) Payment for long-term debt amendment fee — ( 713 ) Net proceeds from issuances of common stock 60 51,096 Net cash provided by financing activities 59 50,381 Net increase in cash, cash equivalents, and restricted cash 550 34,100 Cash, cash equivalents, and restricted cash, beginning of the period (1) 49,994 21,462 Cash, cash equivalents, and restricted cash, end of the period (1) $ 50,544 $ 55,562 (1) Includes restricted cash of $ 150,000 (in long term restricted investments) included in the condensed balance sheets at September 30, 2022 and December 31, 2021.

Condensed Statement of Cash Flo

Condensed Statement of Cash Flows (Parenthetical) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Restricted Cash and Cash Equivalents, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Restricted Investments Noncurrent	Restricted Investments Noncurrent
Restricted cash	$ 150,000	$ 150,000

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 1. Summary of Significant Accounting Policies Nature of Operations DURECT Corporation (the “Company”) was incorporated in the state of Delaware on February 6, 1998 . The Company is a biopharmaceutical company with research and development programs broadly falling into two categories: (i) new chemical entities derived from our Epigenetics Regulator Program, in which the Company attempts to discover and develop molecules which have not previously been approved and marketed as therapeutics, and (ii) Proprietary Pharmaceutical Programs, in which the Company applies its formulation expertise and technologies largely to active pharmaceutical ingredients whose safety and efficacy have previously been established but which the Company aims to improve in some manner through a new formulation. The Company has several product candidates under development by itself and with third party collaborators. The Company also manufactures and sells osmotic pumps used in laboratory research, and manufactures certain excipients for certain clients for use as raw materials in their products. In addition, the Company conducts research and development of pharmaceutical products in collaboration with third party pharmaceutical and biotechnology companies. Basis of Presentation These condensed financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”), and therefore do not include all the information and footnotes necessary for a complete presentation of the Company’s results of operations, financial position and cash flows in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”). The unaudited condensed financial statements reflect all adjustments (consisting only of normal recurring adjustments) which are, in the opinion of management, necessary for a fair presentation of the financial position at September 30, 2022, the operating results and comprehensive loss, and stockholders’ equity for the three and nine months ended September 30, 2022 and 2021, and cash flows for the nine months ended September 30, 2022 and 2021. The balance sheet as of December 31, 2021 has been derived from audited financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. These financial statements and notes should be read in conjunction with the Company’s audited financial statements and notes thereto, included in the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2021 filed with the SEC. The results of operations for the interim periods presented are not necessarily indicative of results that may be expected for any other interim period or for the full fiscal year. Liquidity and Need to Raise Additional Capital As of September 30, 2022, the Company had an accumulated deficit of $ 550.9 million as well as negative cash flows from operating activities. The Company generally has had negative cash flows from operating activities and expects its negative cash flows to continue. The Company will continue to require substantial funds to continue research and development, including clinical trials of its product candidates. In order to meet its operating cash flow requirements beyond the next 12 months from the date the financial statements are filed, management’s plans may include seeking additional collaborative agreements for certain of the Company’s programs, receiving funds from collaboration and licensing agreements as well as pursuing financing activities such as public offerings and private placements of its common stock, preferred stock offerings, issuances of debt and convertible debt instruments. There are no assurances that such additional funding will be obtained or that the Company will succeed in its future operations. If the Company cannot successfully raise additional capital when needed and implement its strategic development plan, its liquidity, financial condition and business prospects will be materially and adversely affected. The Company believes its existing cash, cash equivalents, and investments are sufficient to fund its operating cash flow requirements for a period greater than 12 months from the date of issuance of these financial statements. Inventories Inventories are stated at the lower of cost or net realizable value, with cost determined on a first-in, first-out basis. The Company capitalizes inventories produced in preparation for product launches after receiving regulatory approval on a product. The Company may be required to expense previously capitalized inventory costs upon a change in management’s judgment due to new information that suggests that the inventory will not be saleable. If the Company is able to subsequently sell products made with raw materials that were previously written down, the Company will report an unusually high gross profit as there will be no or little associated cost of goods for these materials. The Company’s inventories consist of the following (in thousands): September 30, December 31, Raw materials $ 148 $ 143 Work in process 1,035 712 Finished goods 1,086 1,015 Total inventories $ 2,269 $ 1,870 Revenue Recognition Product Revenue, Net The Company sells osmotic pumps used in laboratory research and manufactures certain excipients for pharmaceutical clients for use as raw materials in their products. Revenues from product sales are recognized when the customer obtains control of the Company’s product, which occurs at a point in time, typically upon shipment to the customer. The Company expenses incremental costs of obtaining a contract as and when incurred if the expected amortization period of the asset that the Company would have recognized is one year or less. Trade Discounts and Allowances: The Company provides certain customers with discounts that are explicitly stated in the Company’s contracts and are recorded as a reduction of revenue in the period the related product revenue is recognized. Product Returns: The Company generally offers customers a limited right of return for products that have been purchased. The Company estimates the amount of its product sales that are probable of being returned by its customers and records this estimate as a reduction of revenue in the period the related product revenue is recognized. The Company currently estimates product return liabilities primarily using its historical sales information. The Company expects product returns to be minimal. Collaborative Research and Development and Other Revenue The Company enters into license agreements, under which it licenses certain rights to its product candidates or products to third parties. The terms of these arrangements typically include payment to the Company of one or more of the following: non-refundable, up-front license fees; reimbursement of development costs incurred by the Company under approved work plans; development, regulatory, intellectual property and commercial milestone payments; payments for manufacturing supply services the Company provides itself or through its contract manufacturers; and royalties on net sales of licensed products. Each of these payments results in collaborative research and development revenues, except for revenues from royalties on net sales of licensed products, which are classified as other revenues. In determining the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements, the Company performs the following steps: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. For arrangements that are determined to include multiple performance obligations, the Company must develop assumptions that require judgment to determine the estimated stand-alone selling price for each performance obligation identified. These assumptions may include: forecasted revenues, development timelines, reimbursement rates for personnel costs, discount rates and probabilities of technical and regulatory success. The Company expects to recognize revenue for the variable consideration currently being constrained when it is probable that a significant revenue reversal will not occur. Licenses of intellectual property: If the license to the Company’s intellectual property is determined to be distinct from the other performance obligations identified in the arrangement, the Company recognizes the transaction price associated with the license as revenues when the license is transferred to the customer and the customer is able to use and benefit from the license. For performance obligations comprised of licenses that are bundled with other promises, the Company utilizes its 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 Company applies an appropriate method of measuring progress for purposes of recognizing related revenues. For performance obligations recognized over time, the Company evaluates the measure of progress each reporting period and recognizes revenues on a cumulative catch-up basis as collaborative research and development revenues and net income (loss). Milestone Payments: At the inception of each arrangement that includes development milestone payments, the Company evaluates whether the milestones are considered probable of being reached and estimates the amount to be included in the transaction price using the most likely amount method. If it is probable that a significant revenue reversal would not occur, the associated milestone value is included in the transaction price. Milestone payments that are not within the control of the Company or the licensee, such as regulatory approvals, are not considered probable of being achieved until those approvals are received. The transaction price is then allocated to each performance obligation on a relative stand-alone selling price basis, for which the Company recognizes revenue as or when the performance obligations under the contract are satisfied. At the end of each subsequent reporting period, the Company re-evaluates the probability of achievement of such development milestones and any related constraint, and if necessary, adjusts its estimate of the overall transaction price. Manufacturing Supply Services: Arrangements that include a promise for future supply of raw materials or drug product for either clinical development or commercial supply at the customer’s discretion are generally considered as options. The Company assesses if these options provide a material right to the customer and if so, they are accounted for as separate performance obligations and allocated a portion of the transaction price based on the estimated standalone selling price of the material right. If the Company is entitled to additional payments when the customer exercises these options, the deferred transaction price and any additional payments are recorded in collaborative research and development revenue when the customer obtains control of the goods. Royalties and Earn-outs: For arrangements that include sales-based royalties or earn-outs, including milestone payments based on first commercial sale or the level of sales, and the license is deemed to be the predominant item to which the royalties relate, the Company recognizes 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 (or partially satisfied). To date, the Company has not recognized material royalty revenue resulting from the Company’s collaborative arrangements or material earn-out revenues from any of the Company’s patent purchase agreements. Research and development services: Revenue from research and development services that are determined to represent a distinct performance obligation with the Company’s third-party collaborators is recognized over time as the related research and development services are performed using an appropriate method of measuring progress. The Company evaluates the measure of progress each reporting period and recognizes revenue on a cumulative catch-up basis, as collaborative research and development revenues and net income (loss). Research and development expenses under the collaborative research and development agreements generally approximate or exceed the revenue recognized under such agreements over the term of the respective agreements. Deferred revenue may result when the Company does not expend the required level of effort during a specific period in comparison to funds received under the respective agreement. The Company receives payments from its customers based on development cost schedules established in each contract. Up-front payments are recorded as deferred revenue upon receipt or when due and may require deferral of revenue recognition to a future period until the Company performs its obligations under these arrangements. Amounts are recorded as accounts receivable when the Company’s right to consideration is unconditional. The Company does not assess whether a contract has a significant financing component if the expectation at contract inception is such that the period between payment by the customer and the transfer of the promised goods or services to the customer will be one year or less. Total revenue by geographic region based on customers’ locations for the three and nine months ended September 30, 2022 and 2021 are as follows (in thousands): Three months ended Nine months ended 2022 2021 2022 2021 Europe $ 10,433 $ 297 $ 11,185 $ 880 United States 1,246 1,442 3,851 4,374 Japan 136 303 502 948 Other 162 123 430 478 Total $ 11,977 $ 2,165 $ 15,968 $ 6,680 Prepaid and Accrued Contract Research Expenses The Company incurs significant costs associated with third party consultants and organizations for pre-clinical studies, clinical trials, contract research and manufacturing, validation, testing, regulatory advice and other research and development-related services. The Company is required to estimate periodically the cost of services rendered but unbilled based on management’s estimates of project status. If these good faith estimates are inaccurate, actual expenses incurred could materially differ from these estimates. Research and development expenses Research and development expenses are primarily comprised of salaries and benefits associated with research and development personnel, overhead and facility costs, preclinical and non-clinical development costs, clinical trial and related clinical manufacturing costs, contract services, and other outside costs. Research and development costs are expensed as incurred. Research and development costs paid to third parties under sponsored research agreements are recognized as the related services are performed. In addition, research and development expenses incurred that are reimbursed by the Company’s partners are recorded as collaborative research and development revenue. Comprehensive Loss Components of other comprehensive loss are comprised entirely of unrealized gains and losses on the Company’s available-for-sale securities for all periods presented. Total comprehensive loss has been disclosed in the Company’s Statements of Operations and Comprehensive Loss. Net Loss Per Share Basic net loss per share is calculated by dividing the net loss by the weighted-average number of common shares outstanding. Diluted net loss per share is computed using the weighted-average number of common shares outstanding and common stock equivalents (i.e., options to purchase common stock) outstanding during the period, if dilutive, using the treasury stock method for options. The numerators and denominators in the calculation of basic and diluted net loss per share were as follows (in thousands except per share amounts): Three months ended Nine months ended 2022 2021 2022 2021 Numerators: Net loss $ ( 2,471 ) $ ( 9,977 ) $ ( 24,864 ) $ ( 29,257 ) Denominator: Weighted average shares used to compute basic net loss per share 227,774 227,499 227,735 224,191 Dilutive common shares from stock options and ESPP — — — — Weighted average shares used to compute diluted net loss per share 227,774 227,499 227,735 224,191 Net loss per share: Basic $ ( 0.01 ) $ ( 0.04 ) $ ( 0.11 ) $ ( 0.13 ) Diluted $ ( 0.01 ) $ ( 0.04 ) $ ( 0.11 ) $ ( 0.13 ) Options to purchase approximately 26.4 million and 26.2 million shares of common stock were excluded from the denominator in the calculation of diluted net loss per share for the three and nine months ended September 30, 2022, respectively, as the effect would be antidilutive. Options to purchase approximately 9.6 million and 8.0 million shares of common stock were excluded from the denominator in the calculation of diluted net loss per share for the three and nine months ended September 30, 2021, respectively, as the effect would be anti-dilutive. Recent Accounting Pronouncements In June 2016, the FASB issued Accounting Standards Update No. 2016-13 (ASU 2016-13) “Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 requires measurement and recognition of expected credit losses for financial assets. This standard is effective for fiscal years beginning after December 15, 2022 for small reporting companies, including interim reporting periods within those years and must be adopted using a modified retrospective approach, with certain exceptions. Early adoption is permitted. The Company does not expect the adoption of this standard to have a material effect on its financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. In response to concerns about structural risks of the cessation of London Interbank Offered Rate (LIBOR), the amendments in this ASU provide optional guidance for a limited time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The amendments in this ASU provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments in this ASU apply only to contracts and hedging relationships that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022. The amendments in this ASU are elective and are effective for all entities as of March 12, 2020 through December 31, 2022. The adoption of this standard did not have a material effect on the Company’s financial statements.

Strategic Agreements

Strategic Agreements	9 Months Ended
	Sep. 30, 2022
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Strategic Agreements	Note 2. Strategic Agreements The collaborative research and development and other revenues associated with our major collaborators or counterparties were $ 10.6 million and $ 11.7 million for the three and nine months ended September 30, 2022 compared with $ 443,000 and $ 1.8 million for the corresponding periods in 2021. The collaborative research and development and other revenues in the three and nine months ended September 30, 2022 included $ 8.0 million of patent milestone revenue and $ 2.0 million of first commercial sale milestone revenue compared with zero in the corresponding periods in 2021. In addition, the collaborative research and development and other revenues included (a) amounts related to earn-out revenue from Indivior UK Limited (Indivior) with respect to PERSERIS net sales; (b) feasibility programs and research and development activities funded by our collaborators, (c) royalty revenue from Orient Pharma with respect to Methydur net sales and (d) royalty revenue from Innocoll with respect to POSIMIR net sales. Agreement with Innocoll On December 21, 2021, the Company entered into a license agreement (the “Innocoll Agreement”) with Innocoll Pharmaceuticals Limited (“Innocoll”). Pursuant to the Innocoll Agreement, the Company has granted Innocoll an exclusive, royalty-bearing, sublicensable right and license to develop, manufacture and commercialize in the United States, POSIMIR®, the Company’s FDA-approved post-surgical pain product, with respect to all uses and applications in humans. The Innocoll Agreement provides for the assignment of the Company’s supply agreement with its contract manufacturing organization to Innocoll and also provides Innocoll with the right, within the United States, to expand the approved indications of POSIMIR. The Company retains, outside the United States, all of the global rights to POSIMIR. Upon execution of the Innocoll Agreement, Innocoll paid the Company an initial nonrefundable, upfront fee of $ 4.0 million as well as a fee in the amount of $ 1.3 million primarily to cover the manufacturing supplies and excipients and certain equipment transferred to Innocoll pursuant to the terms of the Innocoll Agreement, and certain recently incurred DURECT expenses the parties negotiated for Innocoll to reimburse. The Innocoll Agreement includes customary representations and warranties on behalf of the Company and Innocoll, including representations as to the licensed intellectual property, regulatory matters and compliance with applicable laws. The Innocoll Agreement also provides for certain mutual indemnities for breaches of representations, warranties and covenants. The Company also evaluated Innocoll’s future purchases of an excipient from the Company and concluded that these purchases are option rights, and are at market rates, and do not constitute a material right performance obligation. As such, these future purchases have been excluded from the allocation of transaction price and the Company will account for them as separate contracts when and if Innocoll elects to issue purchase orders for the excipient. During December 2021, the upfront fee of $ 4.0 million as well as a fee in the amount of $ 1.2 million to cover reimbursed expenses, the manufacturing supplies and excipients transferred to Innocoll pursuant to the terms of the Innocoll Agreement was recognized as revenue when the performance obligations were satisfied in December 2021 and $ 0.1 million was recorded as a net reduction in equipment in December 2021. At December 31, 2021, the Company included $ 5.3 million due from Innocoll in accounts receivable on its balance sheet; these funds were received in January 2022. In August 2022, the Company was issued a new patent by the U.S. Patent and Trademark Office, extending U.S. patent coverage of POSIMIR to at least 2041, resulting in an $ 8.0 million milestone payment by Innocoll to the Company. In September 2022, Innocoll launched POSIMIR in the U.S., triggering a $ 2.0 million milestone payment to the Company for the first commercial sale of POSIMIR. As the commercial launch of POSIMIR progresses, the Company will receive tiered, low double-digit to mid-teen royalties on net product sales of POSIMIR in the United States. The Company may earn additional milestone payments of up to $ 122.0 million in the aggregate, depending on the achievement of certain regulatory, commercial, and intellectual property milestones with respect to POSIMIR. Thus, the Company recognized $ 10.0 million of milestone revenue under the agreement with Innocoll during the three and nine months ended September 30, 2022. Patent Purchase Agreement with Indivior In September 2017, we entered into an agreement with Indivior (the “Indivior Agreement”), under which we assigned to Indivior certain patents that may provide further intellectual property protection for PERSERIS, Indivior’s extended-release injectable suspension for the treatment of schizophrenia in adults. In consideration for such assignment, Indivior made non-refundable upfront and milestone payments to DURECT totaling $ 17.5 million. Additionally, under the terms of the agreement with Indivior, DURECT receives quarterly earn-out payments into 2026 that are based on a single digit percentage of U.S. net sales of PERSERIS. Indivior commercially launched PERSERIS in the U.S. in February 2019. The Indivior Agreement contains customary representations, warranties and indemnities of the parties. Amounts recognized in the three and nine months ended September 30, 2022 and 2021 related to earn-out revenues from PERSERIS have been immaterial and are included in collaborative research and development and other revenue.

Financial Instruments

Financial Instruments	9 Months Ended
	Sep. 30, 2022
Fair Value Disclosures [Abstract]
Financial Instruments	Note 3. Financial Instruments Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company’s valuation techniques used to measure fair value maximize the use of observable inputs and minimize the use of unobservable inputs. The Company follows a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value. These levels of inputs are the following: • Level 1—Quoted prices in active markets for identical assets or liabilities. • Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company’s financial instruments are valued using quoted prices in active markets or based upon other observable inputs. Money market funds are classified as Level 1 financial assets. Certificates of deposit, commercial paper, municipal bonds, corporate debt securities, and U.S. Government agency securities are classified as Level 2 financial assets. The fair value of the Level 2 assets is estimated using pricing models using current observable market information for similar securities. The Company’s Level 2 investments include U.S. government-backed securities and corporate securities that are valued based upon observable inputs that may include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data including market research publications. The fair value of commercial paper is based upon the time to maturity and discounted using the three-month treasury bill rate. The average remaining maturity of the Company’s Level 2 investments as of September 30, 2022 is less than twelve months and these investments are rated by S&P and Moody’s at AAA or AA- for securities and A1, A2, P1 or P2 for commercial paper. The following is a summary of available-for-sale securities as of September 30, 2022 and December 31, 2021 (in thousands): September 30, Amortized Unrealized Unrealized Estimated Money market funds $ 712 $ — $ — $ 712 Certificates of deposit 150 — — 150 Commercial paper 48,944 — ( 8 ) 48,936 $ 49,806 $ — $ ( 8 ) $ 49,798 Reported as: Cash and cash equivalents $ 48,157 $ — $ ( 8 ) $ 48,149 Short-term investments 1,499 — — 1,499 Long-term restricted investments 150 — — 150 $ 49,806 $ — $ ( 8 ) $ 49,798 December 31, Amortized Unrealized Unrealized Estimated Money market funds $ 2,089 $ — $ — $ 2,089 Certificates of deposit 150 — — 150 Commercial paper 62,505 — ( 10 ) 62,495 Corporate debt 1,293 — — 1,293 $ 66,037 $ — $ ( 10 ) $ 66,027 Reported as: Cash and cash equivalents $ 45,913 $ — $ ( 2 ) $ 45,911 Short-term investments 19,974 — ( 8 ) 19,966 Long-term restricted investments 150 — — 150 $ 66,037 $ — $ ( 10 ) $ 66,027 The following is a summary of the cost and estimated fair value of available-for-sale securities at September 30, 2022, by contractual maturity (in thousands): September 30, Amortized Estimated Mature in one year or less $ 48,944 $ 48,936 Mature after one year through five years 150 150 $ 49,094 $ 49,086 There were no securities that have had an unrealized loss for more than 12 months as of September 30, 2022. As of September 30, 2022, unrealized losses on available-for-sale investments are not attributed to credit risk and are considered to be temporary. The Company believes that it is more-likely-than-not that investments in an unrealized loss position will be held until maturity or the recovery of the cost basis of the investment. To date, the Company has not recorded any impairment charges on marketable securities related to other-than-temporary declines in market value.

Accrued Liabilities

Accrued Liabilities	9 Months Ended
	Sep. 30, 2022
Payables And Accruals [Abstract]
Accrued Liabilities	Note 4. Accrued Liabilities Accrued liabilities as of September 30, 2022 and December 31, 2021 were comprised as follows (in thousands): September 30, December 31, Accrued compensation and benefits $ 3,221 $ 4,099 Accrued contract research and manufacturing costs 1,406 757 Accrued clinical costs 391 97 Others 1,222 1,846 Total $ 6,240 $ 6,799

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2022
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-Based Compensation	Note 5. Stock-Based Compensation As of September 30, 2022, the Company has two stock-based compensation plans. The stock-based compensation cost that has been included in the statements of comprehensive loss is shown as below (in thousands): Three months ended Nine months ended 2022 2021 2022 2021 Cost of product revenues $ 5 $ 6 $ 15 $ 17 Research and development 292 317 918 952 Selling, general and administrative 281 330 941 1,096 Total stock-based compensation $ 578 $ 653 $ 1,874 $ 2,065 As of September 30, 2022 and December 31, 2021, $ 17,000 of stock-based compensation cost was capitalized in inventory on the Company’s balance sheets for each period. The Company uses the Black-Scholes option pricing model to value its stock options. The expected life computation is based on historical exercise patterns and post-vesting termination behavior. The Company considered its historical volatility in developing its estimate of expected volatility. The Company used the following assumptions to estimate the fair value of stock options granted and shares purchased under its employee stock purchase plan for the three and nine months ended September 30, 2022 and 2021: Three months ended Nine months ended 2022 2021 2022 2021 Stock Options Risk-free rate 2.7 - 3.2 % — 1.8 - 3.2 % 0.8 - 1.3 % Expected dividend yield — — — — Expected life of option (in years) 7.3 — 7.0 - 7.3 7.0 - 7.3 Volatility 85 - 86 % — 83 - 86 % 74 - 86 % Three months ended Nine months ended 2022 2021 2022 2021 Employee Stock Purchase Plan Risk-free rate 1.49 % 0.04 % 0.04 - 1.49 % 0.04 - 0.1 % Expected dividend yield — — — — Expected life of option (in years) 0.5 0.5 0.5 0.5 Volatility 80 % 71 % 56 - 80 % 71 - 78 %

Term Loan

Term Loan	9 Months Ended
	Sep. 30, 2022
Debt Disclosure [Abstract]
Term Loan	Note 6. Term Loan In July 2016, the Company entered into a $ 20.0 million secured single-draw term loan (as amended, the “Loan Agreement”) with Oxford Finance LLC (“Oxford Finance”). The Company and Oxford Finance entered into five subsequent amendments to the Loan Agreement in February 2018, November 2018, December 2019, March 2021 and May 2021. For amendments 1-3 and 5, the Company paid Oxford Finance loan modification fees of $ 100,000 , $ 900,000 , $ 825,000 and $ 712,500 , respectively. As amended, the Loan Agreement provides for interest only payments through June 1, 2023, followed by consecutive monthly payments of principal and interest in arrears starting on June 1, 2023 and continuing through the maturity date of the term loan of September 1, 2025 . The Loan Agreement provides for a floating interest rate ( 7.95 % initially and 9.86 % as of September 30, 2022) based on an index rate plus a spread . In addition, a payment equal to 10 % of the principal amount of the term loan is due when the term loan becomes due or upon the prepayment of the facility. If the Company elects to prepay the loan, there is also a prepayment fee of between 0.75 % and 2.5 % of the principal amount of the term loan depending on the timing of prepayment. The $ 150,000 facility fee that was paid at the original closing, the loan modification fees and other debt offering/issuance costs have been recorded as debt discount on the Company’s balance sheets and together with the final $ 2.0 million payment are being amortized to interest expense using the effective interest method over the revised term of the loan. The term loan is secured by substantially all of the assets of the Company, except that the collateral does not include any intellectual property (including licensing, collaboration and similar agreements relating thereto), and certain other excluded assets. The 2016 Loan Agreement contains customary representations, warranties and covenants by the Company, which covenants limit the Company’s ability to convey, sell, lease, transfer, assign or otherwise dispose of certain assets of the Company; engage in any business other than the businesses currently engaged in by the Company or reasonably related thereto; liquidate or dissolve; make certain management changes; undergo certain change of control events; create, incur, assume, or be liable with respect to certain indebtedness; grant certain liens; pay dividends and make certain other restricted payments; make certain investments; and make payments on any subordinated debt. The Loan Agreement also contains customary indemnification obligations and customary events of default, including, among other things, the Company’s failure to fulfill certain obligations of the Company under the Loan Agreement and the occurrence of a material adverse change which is defined as a material adverse change in the Company’s business, operations, or condition (financial or otherwise), a material impairment of the prospect of repayment of any portion of the loan, or a material impairment in the perfection or priority of lender’s lien in the collateral or in the value of such collateral. In the event of default by the Company under the Loan Agreement, the lender would be entitled to exercise its remedies thereunder, including the right to accelerate the debt, upon which the Company may be required to repay all amounts then outstanding under the Loan Agreement, which could harm the Company’s financial condition. The conditionally exercisable call option related to the event of default is considered to be an embedded derivative which is required to be bifurcated and accounted for as a separate financial instrument. In the periods presented, the value of the embedded derivative is not material, but could become material in future periods if an event of default became more probable than is currently estimated. The fair value of the term loan approximates the carrying value. Future maturities due under the term loan as of September 30, 2022, are as follows (in thousands): Three months ended December 31, 2022 $ — 2023 5,000 2024 8,571 2025 8,429 Total minimum payments 22,000 Less unamortized debt discount and accrued final payment ( 966 ) Carrying value of term loan, net 21,034 As of September 30, 2022, the Company was in compliance with all material covenants under the Loan Agreement and there had been no material adverse change.

Commitments

Commitments	9 Months Ended
	Sep. 30, 2022
Commitments And Contingencies Disclosure [Abstract]
Commitments	Note 7. Commitments Operating Leases The Company has lease arrangements for its facilities as follows. Location Approximate Square Feet Operation Expiration Cupertino, CA 30,149 sq. ft. Office, Laboratory and Manufacturing Lease expires 2024 (with an option to renew for an additional five years ) Cupertino, CA 20,100 sq. ft. Office and Laboratory Lease expires 2024 (with an option to renew for an additional five years ) Vacaville, CA 24,634 sq. ft. Manufacturing Lease expires 2023 Under these leases, the Company is required to pay certain maintenance expenses in addition to monthly rent. Rent expense is recognized on a straight-line basis over the lease term for leases that have scheduled rental payment increases. The lease expense includes the amortization of the right-of-assets with the associated interest component estimated by applying the effective interest method. Rent expenses under all operating leases were $ 478,000 and $ 1.4 million for both the three and nine months ended September 30, 2022 and 2021, respectively. Future minimum payments under these noncancelable leases are as follows (in thousands): Operating Three months ended December 31, 2022 $ 496 2023 1,970 2024 275 $ 2,741

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2022
Equity [Abstract]
Stockholders' Equity	Note 8. Stockholders’ Equity In August 2018, the Company filed a shelf registration statement on Form S-3 with the SEC (the “2018 Registration Statement”) (File No. 333-226518), which upon being declared effective in October 2018 allowed the Company to offer up to $ 175.0 million of securities from time to time in one or more public offerings, inclusive of up to $ 75.0 million of the Company’s common stock which the Company could have sold, subject to certain limitations, pursuant to a sales agreement dated November 3, 2015 with Cantor Fitzgerald & Co. (the “2015 Sales Agreement”). In February 2021, the Company completed an underwritten public offering of 20,364,582 shares of its common stock at a price of $ 2.2386 per share pursuant to an underwriting agreement with Cantor Fitzgerald & Co., raising total gross proceeds to the Company of approximately $ 45.6 million before deducting estimated offering expenses payable by the Company. Total stock issuance costs related to this financing were approximately $ 195,000 . After deducting estimated offering expenses payable by the Company, the net proceeds to the Company were approximately $ 45.4 million. In July 2021, the Company filed a shelf registration statement on Form S-3 with the SEC (the “2021 Registration Statement”) (File No. 333-258333), which upon being declared effective in August 2021, terminated the 2018 Registration Statement and allows the Company to offer up to $ 250.0 million of securities from time to time in one or more public offerings, inclusive of up to $ 75.0 million of shares of the Company’s common stock which the Company may sell, subject to certain limitations, pursuant to a sales agreement dated July 30, 2021 with Cantor Fitzgerald & Co. (the “2021 Sales Agreement”). The 2021 Sales Agreement replaced the 2015 Sales Agreement. During the three and nine months ended September 30, 2022, the Company raised net proceeds (net of commissions) of approximately $ 25,000 from the sale of 30,000 shares of the Company’s common stock in the open market at a weighted average price of $ 0.84 per share pursuant to the 2021 Registration Statement and the 2021 Sales Agreement. During the three months ended September 30, 2021, the Company did not issue any shares pursuant to the 2018 Registration Statement and the 2015 Sales Agreement. During the nine months ended September 30, 2021, the Company raised net proceeds (net of commissions) of approximately $ 2.4 million from the sale of 950,009 shares of the Company’s common stock in the open market at a weighted average price of $ 2.60 per share pursuant to the 2018 Registration Statement and the 2015 Sales Agreement. As of November 1, 20 22, the Company had up to $ 250.0 million of the Company’s securities available for sale under the 2021 Registration Statement, of which $ 75.0 million of the Company’s common stock are available pursuant to the 2021 Sales Agreement.

Subsequent Event

Subsequent Event	9 Months Ended
	Sep. 30, 2022
Subsequent Events [Abstract]
Subsequent Event	Note 9. Subsequent Event None.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Nature of Operations	Nature of Operations DURECT Corporation (the “Company”) was incorporated in the state of Delaware on February 6, 1998 . The Company is a biopharmaceutical company with research and development programs broadly falling into two categories: (i) new chemical entities derived from our Epigenetics Regulator Program, in which the Company attempts to discover and develop molecules which have not previously been approved and marketed as therapeutics, and (ii) Proprietary Pharmaceutical Programs, in which the Company applies its formulation expertise and technologies largely to active pharmaceutical ingredients whose safety and efficacy have previously been established but which the Company aims to improve in some manner through a new formulation. The Company has several product candidates under development by itself and with third party collaborators. The Company also manufactures and sells osmotic pumps used in laboratory research, and manufactures certain excipients for certain clients for use as raw materials in their products. In addition, the Company conducts research and development of pharmaceutical products in collaboration with third party pharmaceutical and biotechnology companies.
Basis of Presentation	Basis of Presentation These condensed financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”), and therefore do not include all the information and footnotes necessary for a complete presentation of the Company’s results of operations, financial position and cash flows in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”). The unaudited condensed financial statements reflect all adjustments (consisting only of normal recurring adjustments) which are, in the opinion of management, necessary for a fair presentation of the financial position at September 30, 2022, the operating results and comprehensive loss, and stockholders’ equity for the three and nine months ended September 30, 2022 and 2021, and cash flows for the nine months ended September 30, 2022 and 2021. The balance sheet as of December 31, 2021 has been derived from audited financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. These financial statements and notes should be read in conjunction with the Company’s audited financial statements and notes thereto, included in the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2021 filed with the SEC. The results of operations for the interim periods presented are not necessarily indicative of results that may be expected for any other interim period or for the full fiscal year.
Liquidity and Need to Raise Additional Capital	Liquidity and Need to Raise Additional Capital As of September 30, 2022, the Company had an accumulated deficit of $ 550.9 million as well as negative cash flows from operating activities. The Company generally has had negative cash flows from operating activities and expects its negative cash flows to continue. The Company will continue to require substantial funds to continue research and development, including clinical trials of its product candidates. In order to meet its operating cash flow requirements beyond the next 12 months from the date the financial statements are filed, management’s plans may include seeking additional collaborative agreements for certain of the Company’s programs, receiving funds from collaboration and licensing agreements as well as pursuing financing activities such as public offerings and private placements of its common stock, preferred stock offerings, issuances of debt and convertible debt instruments. There are no assurances that such additional funding will be obtained or that the Company will succeed in its future operations. If the Company cannot successfully raise additional capital when needed and implement its strategic development plan, its liquidity, financial condition and business prospects will be materially and adversely affected. The Company believes its existing cash, cash equivalents, and investments are sufficient to fund its operating cash flow requirements for a period greater than 12 months from the date of issuance of these financial statements.
Inventories	Inventories Inventories are stated at the lower of cost or net realizable value, with cost determined on a first-in, first-out basis. The Company capitalizes inventories produced in preparation for product launches after receiving regulatory approval on a product. The Company may be required to expense previously capitalized inventory costs upon a change in management’s judgment due to new information that suggests that the inventory will not be saleable. If the Company is able to subsequently sell products made with raw materials that were previously written down, the Company will report an unusually high gross profit as there will be no or little associated cost of goods for these materials. The Company’s inventories consist of the following (in thousands): September 30, December 31, Raw materials $ 148 $ 143 Work in process 1,035 712 Finished goods 1,086 1,015 Total inventories $ 2,269 $ 1,870
Revenue Recognition	Revenue Recognition Product Revenue, Net The Company sells osmotic pumps used in laboratory research and manufactures certain excipients for pharmaceutical clients for use as raw materials in their products. Revenues from product sales are recognized when the customer obtains control of the Company’s product, which occurs at a point in time, typically upon shipment to the customer. The Company expenses incremental costs of obtaining a contract as and when incurred if the expected amortization period of the asset that the Company would have recognized is one year or less. Trade Discounts and Allowances: The Company provides certain customers with discounts that are explicitly stated in the Company’s contracts and are recorded as a reduction of revenue in the period the related product revenue is recognized. Product Returns: The Company generally offers customers a limited right of return for products that have been purchased. The Company estimates the amount of its product sales that are probable of being returned by its customers and records this estimate as a reduction of revenue in the period the related product revenue is recognized. The Company currently estimates product return liabilities primarily using its historical sales information. The Company expects product returns to be minimal. Collaborative Research and Development and Other Revenue The Company enters into license agreements, under which it licenses certain rights to its product candidates or products to third parties. The terms of these arrangements typically include payment to the Company of one or more of the following: non-refundable, up-front license fees; reimbursement of development costs incurred by the Company under approved work plans; development, regulatory, intellectual property and commercial milestone payments; payments for manufacturing supply services the Company provides itself or through its contract manufacturers; and royalties on net sales of licensed products. Each of these payments results in collaborative research and development revenues, except for revenues from royalties on net sales of licensed products, which are classified as other revenues. In determining the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements, the Company performs the following steps: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. For arrangements that are determined to include multiple performance obligations, the Company must develop assumptions that require judgment to determine the estimated stand-alone selling price for each performance obligation identified. These assumptions may include: forecasted revenues, development timelines, reimbursement rates for personnel costs, discount rates and probabilities of technical and regulatory success. The Company expects to recognize revenue for the variable consideration currently being constrained when it is probable that a significant revenue reversal will not occur. Licenses of intellectual property: If the license to the Company’s intellectual property is determined to be distinct from the other performance obligations identified in the arrangement, the Company recognizes the transaction price associated with the license as revenues when the license is transferred to the customer and the customer is able to use and benefit from the license. For performance obligations comprised of licenses that are bundled with other promises, the Company utilizes its 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 Company applies an appropriate method of measuring progress for purposes of recognizing related revenues. For performance obligations recognized over time, the Company evaluates the measure of progress each reporting period and recognizes revenues on a cumulative catch-up basis as collaborative research and development revenues and net income (loss). Milestone Payments: At the inception of each arrangement that includes development milestone payments, the Company evaluates whether the milestones are considered probable of being reached and estimates the amount to be included in the transaction price using the most likely amount method. If it is probable that a significant revenue reversal would not occur, the associated milestone value is included in the transaction price. Milestone payments that are not within the control of the Company or the licensee, such as regulatory approvals, are not considered probable of being achieved until those approvals are received. The transaction price is then allocated to each performance obligation on a relative stand-alone selling price basis, for which the Company recognizes revenue as or when the performance obligations under the contract are satisfied. At the end of each subsequent reporting period, the Company re-evaluates the probability of achievement of such development milestones and any related constraint, and if necessary, adjusts its estimate of the overall transaction price. Manufacturing Supply Services: Arrangements that include a promise for future supply of raw materials or drug product for either clinical development or commercial supply at the customer’s discretion are generally considered as options. The Company assesses if these options provide a material right to the customer and if so, they are accounted for as separate performance obligations and allocated a portion of the transaction price based on the estimated standalone selling price of the material right. If the Company is entitled to additional payments when the customer exercises these options, the deferred transaction price and any additional payments are recorded in collaborative research and development revenue when the customer obtains control of the goods. Royalties and Earn-outs: For arrangements that include sales-based royalties or earn-outs, including milestone payments based on first commercial sale or the level of sales, and the license is deemed to be the predominant item to which the royalties relate, the Company recognizes 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 (or partially satisfied). To date, the Company has not recognized material royalty revenue resulting from the Company’s collaborative arrangements or material earn-out revenues from any of the Company’s patent purchase agreements. Research and development services: Revenue from research and development services that are determined to represent a distinct performance obligation with the Company’s third-party collaborators is recognized over time as the related research and development services are performed using an appropriate method of measuring progress. The Company evaluates the measure of progress each reporting period and recognizes revenue on a cumulative catch-up basis, as collaborative research and development revenues and net income (loss). Research and development expenses under the collaborative research and development agreements generally approximate or exceed the revenue recognized under such agreements over the term of the respective agreements. Deferred revenue may result when the Company does not expend the required level of effort during a specific period in comparison to funds received under the respective agreement. The Company receives payments from its customers based on development cost schedules established in each contract. Up-front payments are recorded as deferred revenue upon receipt or when due and may require deferral of revenue recognition to a future period until the Company performs its obligations under these arrangements. Amounts are recorded as accounts receivable when the Company’s right to consideration is unconditional. The Company does not assess whether a contract has a significant financing component if the expectation at contract inception is such that the period between payment by the customer and the transfer of the promised goods or services to the customer will be one year or less. Total revenue by geographic region based on customers’ locations for the three and nine months ended September 30, 2022 and 2021 are as follows (in thousands): Three months ended Nine months ended 2022 2021 2022 2021 Europe $ 10,433 $ 297 $ 11,185 $ 880 United States 1,246 1,442 3,851 4,374 Japan 136 303 502 948 Other 162 123 430 478 Total $ 11,977 $ 2,165 $ 15,968 $ 6,680
Prepaid and Accrued Contract Research Expenses	Prepaid and Accrued Contract Research Expenses The Company incurs significant costs associated with third party consultants and organizations for pre-clinical studies, clinical trials, contract research and manufacturing, validation, testing, regulatory advice and other research and development-related services. The Company is required to estimate periodically the cost of services rendered but unbilled based on management’s estimates of project status. If these good faith estimates are inaccurate, actual expenses incurred could materially differ from these estimates.
Research and Development Expenses	Research and development expenses Research and development expenses are primarily comprised of salaries and benefits associated with research and development personnel, overhead and facility costs, preclinical and non-clinical development costs, clinical trial and related clinical manufacturing costs, contract services, and other outside costs. Research and development costs are expensed as incurred. Research and development costs paid to third parties under sponsored research agreements are recognized as the related services are performed. In addition, research and development expenses incurred that are reimbursed by the Company’s partners are recorded as collaborative research and development revenue.
Comprehensive Loss	Comprehensive Loss Components of other comprehensive loss are comprised entirely of unrealized gains and losses on the Company’s available-for-sale securities for all periods presented. Total comprehensive loss has been disclosed in the Company’s Statements of Operations and Comprehensive Loss.
Net Loss Per Share	Net Loss Per Share Basic net loss per share is calculated by dividing the net loss by the weighted-average number of common shares outstanding. Diluted net loss per share is computed using the weighted-average number of common shares outstanding and common stock equivalents (i.e., options to purchase common stock) outstanding during the period, if dilutive, using the treasury stock method for options. The numerators and denominators in the calculation of basic and diluted net loss per share were as follows (in thousands except per share amounts): Three months ended Nine months ended 2022 2021 2022 2021 Numerators: Net loss $ ( 2,471 ) $ ( 9,977 ) $ ( 24,864 ) $ ( 29,257 ) Denominator: Weighted average shares used to compute basic net loss per share 227,774 227,499 227,735 224,191 Dilutive common shares from stock options and ESPP — — — — Weighted average shares used to compute diluted net loss per share 227,774 227,499 227,735 224,191 Net loss per share: Basic $ ( 0.01 ) $ ( 0.04 ) $ ( 0.11 ) $ ( 0.13 ) Diluted $ ( 0.01 ) $ ( 0.04 ) $ ( 0.11 ) $ ( 0.13 ) Options to purchase approximately 26.4 million and 26.2 million shares of common stock were excluded from the denominator in the calculation of diluted net loss per share for the three and nine months ended September 30, 2022, respectively, as the effect would be antidilutive. Options to purchase approximately 9.6 million and 8.0 million shares of common stock were excluded from the denominator in the calculation of diluted net loss per share for the three and nine months ended September 30, 2021, respectively, as the effect would be anti-dilutive.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In June 2016, the FASB issued Accounting Standards Update No. 2016-13 (ASU 2016-13) “Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 requires measurement and recognition of expected credit losses for financial assets. This standard is effective for fiscal years beginning after December 15, 2022 for small reporting companies, including interim reporting periods within those years and must be adopted using a modified retrospective approach, with certain exceptions. Early adoption is permitted. The Company does not expect the adoption of this standard to have a material effect on its financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. In response to concerns about structural risks of the cessation of London Interbank Offered Rate (LIBOR), the amendments in this ASU provide optional guidance for a limited time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The amendments in this ASU provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments in this ASU apply only to contracts and hedging relationships that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022. The amendments in this ASU are elective and are effective for all entities as of March 12, 2020 through December 31, 2022. The adoption of this standard did not have a material effect on the Company’s financial statements.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Summary of Components of Inventories	The Company’s inventories consist of the following (in thousands): September 30, December 31, Raw materials $ 148 $ 143 Work in process 1,035 712 Finished goods 1,086 1,015 Total inventories $ 2,269 $ 1,870
Summary of Significant Accounting Policies - Summary of Total Revenue by Geographic Region Based on Customers' Locations	Total revenue by geographic region based on customers’ locations for the three and nine months ended September 30, 2022 and 2021 are as follows (in thousands): Three months ended Nine months ended 2022 2021 2022 2021 Europe $ 10,433 $ 297 $ 11,185 $ 880 United States 1,246 1,442 3,851 4,374 Japan 136 303 502 948 Other 162 123 430 478 Total $ 11,977 $ 2,165 $ 15,968 $ 6,680
Summary of Numerators and Denominators in Calculation of Basic and Diluted Net (Loss) Income per Share	The numerators and denominators in the calculation of basic and diluted net loss per share were as follows (in thousands except per share amounts): Three months ended Nine months ended 2022 2021 2022 2021 Numerators: Net loss $ ( 2,471 ) $ ( 9,977 ) $ ( 24,864 ) $ ( 29,257 ) Denominator: Weighted average shares used to compute basic net loss per share 227,774 227,499 227,735 224,191 Dilutive common shares from stock options and ESPP — — — — Weighted average shares used to compute diluted net loss per share 227,774 227,499 227,735 224,191 Net loss per share: Basic $ ( 0.01 ) $ ( 0.04 ) $ ( 0.11 ) $ ( 0.13 ) Diluted $ ( 0.01 ) $ ( 0.04 ) $ ( 0.11 ) $ ( 0.13 )

Financial Instruments (Tables)

Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2022
Fair Value Disclosures [Abstract]
Summary of Money Market Funds and Available-for-Sale Securities	The following is a summary of available-for-sale securities as of September 30, 2022 and December 31, 2021 (in thousands): September 30, Amortized Unrealized Unrealized Estimated Money market funds $ 712 $ — $ — $ 712 Certificates of deposit 150 — — 150 Commercial paper 48,944 — ( 8 ) 48,936 $ 49,806 $ — $ ( 8 ) $ 49,798 Reported as: Cash and cash equivalents $ 48,157 $ — $ ( 8 ) $ 48,149 Short-term investments 1,499 — — 1,499 Long-term restricted investments 150 — — 150 $ 49,806 $ — $ ( 8 ) $ 49,798 December 31, Amortized Unrealized Unrealized Estimated Money market funds $ 2,089 $ — $ — $ 2,089 Certificates of deposit 150 — — 150 Commercial paper 62,505 — ( 10 ) 62,495 Corporate debt 1,293 — — 1,293 $ 66,037 $ — $ ( 10 ) $ 66,027 Reported as: Cash and cash equivalents $ 45,913 $ — $ ( 2 ) $ 45,911 Short-term investments 19,974 — ( 8 ) 19,966 Long-term restricted investments 150 — — 150 $ 66,037 $ — $ ( 10 ) $ 66,027
Summary of Cost and Estimated Fair Value of Available-for-Sale Securities by Contractual Maturity	The following is a summary of the cost and estimated fair value of available-for-sale securities at September 30, 2022, by contractual maturity (in thousands): September 30, Amortized Estimated Mature in one year or less $ 48,944 $ 48,936 Mature after one year through five years 150 150 $ 49,094 $ 49,086

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	9 Months Ended
	Sep. 30, 2022
Payables And Accruals [Abstract]
Schedule of accrued liabilities	Accrued liabilities as of September 30, 2022 and December 31, 2021 were comprised as follows (in thousands): September 30, December 31, Accrued compensation and benefits $ 3,221 $ 4,099 Accrued contract research and manufacturing costs 1,406 757 Accrued clinical costs 391 97 Others 1,222 1,846 Total $ 6,240 $ 6,799

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2022
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Summary of Stock-Based Compensation Cost that has been Included in Statements of Comprehensive (Loss) Income	The stock-based compensation cost that has been included in the statements of comprehensive loss is shown as below (in thousands): Three months ended Nine months ended 2022 2021 2022 2021 Cost of product revenues $ 5 $ 6 $ 15 $ 17 Research and development 292 317 918 952 Selling, general and administrative 281 330 941 1,096 Total stock-based compensation $ 578 $ 653 $ 1,874 $ 2,065
Summary of Assumptions Used to Estimate Fair Value of Options Granted and Shares Purchased	The Company used the following assumptions to estimate the fair value of stock options granted and shares purchased under its employee stock purchase plan for the three and nine months ended September 30, 2022 and 2021: Three months ended Nine months ended 2022 2021 2022 2021 Stock Options Risk-free rate 2.7 - 3.2 % — 1.8 - 3.2 % 0.8 - 1.3 % Expected dividend yield — — — — Expected life of option (in years) 7.3 — 7.0 - 7.3 7.0 - 7.3 Volatility 85 - 86 % — 83 - 86 % 74 - 86 % Three months ended Nine months ended 2022 2021 2022 2021 Employee Stock Purchase Plan Risk-free rate 1.49 % 0.04 % 0.04 - 1.49 % 0.04 - 0.1 % Expected dividend yield — — — — Expected life of option (in years) 0.5 0.5 0.5 0.5 Volatility 80 % 71 % 56 - 80 % 71 - 78 %

Term Loan (Tables)

Term Loan (Tables)	9 Months Ended
	Sep. 30, 2022
Debt Disclosure [Abstract]
Schedule of Future Maturities due under Term Loan	The fair value of the term loan approximates the carrying value. Future maturities due under the term loan as of September 30, 2022, are as follows (in thousands): Three months ended December 31, 2022 $ — 2023 5,000 2024 8,571 2025 8,429 Total minimum payments 22,000 Less unamortized debt discount and accrued final payment ( 966 ) Carrying value of term loan, net 21,034

Commitments (Tables)

Commitments (Tables)	9 Months Ended
	Sep. 30, 2022
Commitments And Contingencies Disclosure [Abstract]
Summary of Lease Arrangements of Company Facilities	The Company has lease arrangements for its facilities as follows. Location Approximate Square Feet Operation Expiration Cupertino, CA 30,149 sq. ft. Office, Laboratory and Manufacturing Lease expires 2024 (with an option to renew for an additional five years ) Cupertino, CA 20,100 sq. ft. Office and Laboratory Lease expires 2024 (with an option to renew for an additional five years ) Vacaville, CA 24,634 sq. ft. Manufacturing Lease expires 2023
Schedule of Future Operating Lease Minimum Payments	Future minimum payments under these noncancelable leases are as follows (in thousands): Operating Three months ended December 31, 2022 $ 496 2023 1,970 2024 275 $ 2,741

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands, shares in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Accounting Policies [Abstract]
Date of incorporation			Feb. 06, 1998
Accumulated deficit	$ 550,913		$ 550,913		$ 526,049
Options to purchase common stock excluded from computation of diluted net loss per share	26.4	9.6	26.2	8

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Summary of Components of Inventories (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Inventory Net [Abstract]
Raw materials	$ 148	$ 143
Work in process	1,035	712
Finished goods	1,086	1,015
Total inventories	$ 2,269	$ 1,870

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Summary of Total Revenue by Geographic Region Based on Customers' Locations (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 11,977	$ 2,165	$ 15,968	$ 6,680
Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	10,433	297	11,185	880
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	1,246	1,442	3,851	4,374
Japan [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	136	303	502	948
Other [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 162	$ 123	$ 430	$ 478

Summary of Significant Accoun_7

Summary of Significant Accounting Policies - Summary of Numerators and Denominators in Calculation of Basic and Diluted Net (Loss) Income per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2022	Sep. 30, 2021
Numerators:
Net loss	$ (2,471)	$ (11,551)	$ (10,842)	$ (9,977)	$ (9,146)	$ (10,134)	$ (24,864)	$ (29,257)
Denominator:
Basic	227,774			227,499			227,735	224,191
Dilutive common shares from stock options and ESPP	0			0			0	0
Weighted average shares used to compute diluted net loss per share	227,774			227,499			227,735	224,191
Net loss per share
Basic	$ (0.01)			$ (0.04)			$ (0.11)	$ (0.13)
Diluted	$ (0.01)			$ (0.04)			$ (0.11)	$ (0.13)

Strategic Agreements - Addition

Strategic Agreements - Additional Information (Detail) - USD ($)	1 Months Ended			3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2022	Aug. 31, 2022	Sep. 30, 2017	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Total revenues				$ 11,977,000	$ 2,165,000	$ 15,968,000	$ 6,680,000
Reduction in net equipment								$ 100,000
Non Refundable Upfront Payment Received			$ 17,500,000
Patent Based Milestone
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Total revenues				8,000,000	0	8,000,000	0
Sales Based Milestones
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Total revenues				2,000,000	0	2,000,000	0
Agreement With Innocoll
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Total revenues				10,000,000		10,000,000
Performance Milestone Payments Based On Successful Development	$ 1,300,000			1,300,000		1,300,000
Additional Milestone Payment	122,000,000			122,000,000		122,000,000
Upfront Fee								4,000,000
Agreement With Innocoll | Patent Based Milestone
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Milestone Payment		$ 8,000,000
Agreement With Innocoll | Sales Based Milestones
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Milestone Payment	$ 2
Agreement With Innocoll | Accounts Receivable
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Receivables from Customers								5,300,000
Agreement With Innocoll | Reimbursed Expenses And Certain Materials Transferred
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Upfront Fee								$ 1,200,000
Collaborative Research and Development and Other Revenue [Member]
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Total revenues				$ 10,585,000	$ 443,000	11,686,000	$ 1,752,000
License | Agreement With Innocoll
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Total revenues						$ 4,000,000

Financial Instruments - Summary

Financial Instruments - Summary of Money Market Funds and Available-for-Sale Securities (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 49,806	$ 66,037
Unrealized Loss	(8)	(10)
Estimated Fair Value	49,798	66,027
Money market funds [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	712	2,089
Estimated Fair Value	712	2,089
Certificates of deposit [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	150	150
Estimated Fair Value	150	150
Commercial paper [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	48,944	62,505
Unrealized Loss	(8)	(10)
Estimated Fair Value	48,936	62,495
Cash and cash equivalents [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	48,157	45,913
Unrealized Loss	(8)	(2)
Estimated Fair Value	48,149	45,911
Short-term investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	1,499	19,974
Unrealized Loss		(8)
Estimated Fair Value	1,499	19,966
Long Term Restricted Investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	150	150
Estimated Fair Value	$ 150	150
Corporate Debt Securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		1,293
Estimated Fair Value		$ 1,293

Financial Instruments - Summa_2

Financial Instruments - Summary of Cost and Estimated Fair Value of Available-for-Sale Securities by Contractual Maturity (Detail) $ in Thousands	Sep. 30, 2022 USD ($)
Investments Debt And Equity Securities [Abstract]
Mature in one year or less, Amortized Cost	$ 48,944
Mature after one year through five years, Amortized Cost	150
Amortized Cost	49,094
Mature in one year or less, Estimated Fair Value	48,936
Mature after one year through five years, Estimated Fair Value	150
Estimated Fair Value	$ 49,086

Financial Instruments - Additio

Financial Instruments - Additional Information (Detail)	Sep. 30, 2022 USD ($)
Investments Debt And Equity Securities [Abstract]
Unrealized loss of securities	$ 0

Accrued Liabilities (Details) -

Accrued Liabilities (Details) - Schedule of accrued liabilities - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Schedule Of Accrued Liabilities [Abstract]
Accrued compensation and benefits	$ 3,221	$ 4,099
Accrued contract research and manufacturing costs	1,406	757
Accrued clinical costs	391	97
Others	1,222	1,846
Total	$ 6,240	$ 6,799

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Stock-Based Compensation Cost that has been Included in Statements of Comprehensive (Loss) Income (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 578	$ 653	$ 1,874	$ 2,065
Cost of product revenues [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	5	6	15	17
Research and development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	292	317	918	952
Selling, general and administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 281	$ 330	$ 941	$ 1,096

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-based compensation cost capitalized in inventory	$ 17,000	$ 17,000

Stock-Based Compensation - Su_2

Stock-Based Compensation - Summary of Assumptions Used to Estimate Fair Value of Options Granted and Shares Purchased (Detail)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Employees Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free rate	1.49%	0.04%
Risk-free rate, minimum			0.04%	0.04%
Risk-free rate, maximum			1.49%	0.10%
Expected dividend yield	0%	0%	0%	0%
Expected life of option (in years)	6 months	6 months	6 months	6 months
Volatility	80%	71%
Volatility, minimum			56%	71%
Volatility, maximum			80%	78%
Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free rate, minimum	2.70%		1.80%	0.80%
Risk-free rate, maximum	3.20%		3.20%	1.30%
Expected dividend yield	0%	0%	0%	0%
Expected life of option (in years)	7 years 3 months 18 days
Volatility, minimum	85%		83%	74%
Volatility, maximum	86%		86%	86%
Stock Option Plan [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life of option (in years)			7 years	7 years
Stock Option Plan [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life of option (in years)			7 years 3 months 18 days	7 years 3 months 18 days

Term Loan - Additional Informat

Term Loan - Additional Information (Detail) - USD ($)	1 Months Ended
	May 31, 2021	Dec. 31, 2019	Nov. 30, 2018	Feb. 28, 2018	Jul. 31, 2016	Sep. 30, 2022
Debt Instrument [Line Items]
Loan modification fee	$ 712,500	$ 825,000
Oxford Finance LLC Term Loan [Member]
Debt Instrument [Line Items]
Secured term loan					$ 20,000,000
Term loan repayment description					As amended, the Loan Agreement provides for interest only payments through June 1, 2023, followed by consecutive monthly payments of principal and interest in arrears starting on June 1, 2023 and continuing through the maturity date of the term loan of September 1, 2025
First principal payment date					Jun. 01, 2023
Term loan, maturity date					Sep. 01, 2025
Interest rate on term loan					7.95%	9.86%
Term loan, floating interest rate basis					an index rate plus a spread
Facility fee paid at final payment					$ 150,000
Percentage of an additional payment equal to principal amount					10%
Debt offering/issuance costs					$ 2,000,000
Loan modification fee			$ 900,000	$ 100,000
Oxford Finance LLC Term Loan [Member] | Minimum [Member]
Debt Instrument [Line Items]
Percentage of prepayment fee					0.75%
Oxford Finance LLC Term Loan [Member] | Maximum [Member]
Debt Instrument [Line Items]
Percentage of prepayment fee					2.50%

Term Loan - Schedule of Future

Term Loan - Schedule of Future Maturities due under Term Loan (Detail) $ in Thousands	Sep. 30, 2022 USD ($)
Future maturities and interest payments under the term loan:
2023	$ 5,000
2024	8,571
2025	8,429
Total minimum payments	22,000
Less unamortized debt discount and accrued final payment	(966)
Carrying value of term loan, net	$ 21,034

Commitments - Summary of Lease

Commitments - Summary of Lease Arrangements of Company Facilities (Detail)	9 Months Ended
	Sep. 30, 2022 ft²
Vacaville, CA [Member] | Manufacturing [Member]
Property Subject To Or Available For Operating Lease [Line Items]
Approximate Square Feet	24,634
Expiration	Lease expires 2023
Lease expiration year	2023
Cupertino, CA [Member] | Office, Laboratory and Manufacturing [Member]
Property Subject To Or Available For Operating Lease [Line Items]
Lease expiration year	2024
Lease renewal term	5 years
Cupertino, CA [Member] | Office, Laboratory and Manufacturing [Member] | Lease Amendment [Member]
Property Subject To Or Available For Operating Lease [Line Items]
Approximate Square Feet	30,149
Expiration	Lease expires 2024 (with an option to renew for an additional five years)
Cupertino, CA [Member] | Office and Laboratory [Member]
Property Subject To Or Available For Operating Lease [Line Items]
Lease expiration year	2024
Lease renewal term	5 years
Cupertino, CA [Member] | Office and Laboratory [Member] | Lease Amendment [Member]
Property Subject To Or Available For Operating Lease [Line Items]
Approximate Square Feet	20,100
Expiration	Lease expires 2024 (with an option to renew for an additional five years)

Commitments - Additional Inform

Commitments - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Commitments And Contingencies Disclosure [Abstract]
Rent expenses of operating leases	$ 478,000	$ 478,000	$ 1,400,000	$ 1,400,000

Commitments - Schedule of Futur

Commitments - Schedule of Future Operating Lease Minimum Payments (Detail) $ in Thousands	Sep. 30, 2022 USD ($)
Leases [Abstract]
Six months ended December 31, 2022	$ 496
2023	1,970
2024	275
Total operating leases future minimum payments	$ 2,741

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Detail) - USD ($)	1 Months Ended	3 Months Ended		9 Months Ended
	Feb. 28, 2021	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Nov. 01, 2022	Jul. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Proceeds from sale of common stock, net of commission				$ 60,000	$ 51,096,000
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Securities offered		$ 175,000,000		175,000,000			$ 250,000,000
Cantor Fitzgerald Co [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Proceeds from sale of common stock, net of commission	$ 45,600,000
Sale of stock number of shares issued in transaction	20,364,582
Sale of stock price per share	$ 2.2386
Common stock issuance costs	$ 195,000,000
Gross proceeds from sale of common stock	$ 45,400,000
2015 Sales Agreement [Member] | Cantor Fitzgerald Co [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Securities offered		75,000,000		75,000,000			$ 75,000,000
2018 Registration Statement and 2015 Sales Agreement [Member] | Cantor Fitzgerald Co [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Proceeds from sale of common stock, net of commission			$ 2,400,000		$ 2,400,000
Sale of common stock during period			950,009,000		950,009,000
Common stock weighted average price			$ 2.60		$ 2.60
2021 Registration Statement [Member] | Maximum [Member] | Subsequent Event [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock available for sale						$ 250,000,000
2021 Sales Agreement [Member] | IPO [Member] | Subsequent Event [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock available for sale						$ 75,000,000
2021 Registration Statement and 2021 Sales Agreement [Member] | Cantor Fitzgerald Co [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Proceeds from sale of common stock, net of commission		$ 25,000		$ 25,000
Sale of common stock during period		30,000,000		30,000,000
Common stock weighted average price		$ 0.84		$ 0.84