Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 07, 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 | |
Trading Symbol | CBIO | |
Entity Registrant Name | Catalyst Biosciences, Inc. | |
Entity Central Index Key | 0001124105 | |
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 | 31,490,053 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 000-51173 | |
Entity Tax Identification Number | 56-2020050 | |
Entity Address, Address Line One | 611 Gateway Blvd. | |
Entity Address, Address Line Two | Suite 710 | |
Entity Address, City or Town | South San Francisco | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94080 | |
City Area Code | 650 | |
Local Phone Number | 871-0761 | |
Entity Interactive Data Current | Yes | |
Security Exchange Name | NASDAQ | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Title of 12(b) Security | Common Stock |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 23,090 | $ 44,347 |
Short-term investments | 2,504 | |
Accounts and other receivables | 5,000 | 1,818 |
Prepaid and other current assets | 2,156 | 2,807 |
Total current assets | 30,246 | 51,476 |
Other assets, noncurrent | 168 | 472 |
Right-of-use assets | 481 | 2,744 |
Property and equipment, net | 124 | 970 |
Total assets | 31,019 | 55,662 |
Current liabilities: | ||
Accounts payable | 41 | 6,419 |
Accrued compensation | 1,040 | 1,467 |
Deferred revenue | 230 | |
Other accrued liabilities | 182 | 4,072 |
Operating lease liability | 381 | 1,977 |
Total current liabilities | 1,644 | 14,165 |
Operating lease liability, noncurrent | 408 | |
Total liabilities | 1,644 | 14,573 |
Commitments and contingencies (Note 9) | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value, 5,000,000 shares authorized; zero shares issued and outstanding | ||
Common stock, $0.001 par value, 100,000,000 shares authorized; 31,490,053 and 31,409,707 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively | 31 | 31 |
Additional paid-in capital | 399,826 | 443,752 |
Accumulated deficit | (370,482) | (402,694) |
Total stockholders’ equity | 29,375 | 41,089 |
Total liabilities and stockholders’ equity | $ 31,019 | $ 55,662 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 31,490,053 | 31,409,707 |
Common stock, shares outstanding | 31,490,053 | 31,409,707 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Operating expenses (income): | ||||
Research and development | $ 803 | $ 20,352 | $ 12,377 | $ 52,754 |
General and administrative | 4,363 | 4,869 | 13,201 | 14,799 |
Gain on disposal of assets, net | (57,245) | |||
Total operating expenses (income) | 5,166 | 27,528 | (30,869) | 72,479 |
Income (loss) from operations | (5,166) | (25,229) | 31,663 | (67,581) |
Interest and other income (expense), net | 282 | (9) | 549 | (23) |
Net income (loss) | $ (4,884) | $ (25,238) | $ 32,212 | $ (67,604) |
Net income (loss) per share attributable to common stockholders, basic | $ (0.16) | $ (0.80) | $ 1.02 | $ (2.23) |
Net income (loss) per share attributable to common stockholders, diluted | $ (0.16) | $ (0.80) | $ 1.02 | $ (2.23) |
Shares used to compute net income (loss) per share attributable to common stockholders, basic | 31,484,542 | 31,379,755 | 31,472,666 | 30,382,231 |
Shares used to compute net income (loss) per share attributable to common stockholders, diluted | 31,484,542 | 31,379,755 | 31,605,834 | 30,382,231 |
Cash dividends paid per common share | $ 1.43 | $ 1.43 | ||
Collaboration | ||||
Revenue: | ||||
License and collaboration revenue | $ 2,299 | $ 794 | $ 4,898 | |
Cost of collaboration | ||||
Operating expenses (income): | ||||
Cost of license and collaboration | $ 2,307 | $ 798 | $ 4,926 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (4,884) | $ (25,238) | $ 32,212 | $ (67,604) |
Other comprehensive loss: | ||||
Unrealized loss on available-for-sale debt securities | (1) | (4) | ||
Total comprehensive income (loss) | $ (4,884) | $ (25,239) | $ 32,212 | $ (67,608) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Balance at Dec. 31, 2020 | $ 76,069 | $ 22 | $ 390,803 | $ 5 | $ (314,761) |
Balance (in shares) at Dec. 31, 2020 | 22,097,820 | ||||
Stock-based compensation expense | 1,026 | 1,026 | |||
Stock-based compensation expense | 10,149 | ||||
Issuance of common stock from stock grants and option exercises | 182 | 182 | |||
Issuance of common stock from stock grants and option exercises, shares | 38,058 | ||||
Issuance of common stock for public offering, net of issuance costs | 49,250 | $ 9 | 49,241 | ||
Issuance of common stock for public offering, net of issuance costs, shares | 9,185,000 | ||||
Net income (loss) | (22,438) | (22,438) | |||
Balance at Mar. 31, 2021 | 104,089 | $ 31 | 441,252 | 5 | (337,199) |
Balance (in shares) at Mar. 31, 2021 | 31,331,027 | ||||
Balance at Dec. 31, 2020 | 76,069 | $ 22 | 390,803 | 5 | (314,761) |
Balance (in shares) at Dec. 31, 2020 | 22,097,820 | ||||
Unrealized loss on available-for-sale debt securities | (4) | ||||
Net income (loss) | (67,604) | ||||
Balance at Sep. 30, 2021 | 60,736 | $ 31 | 443,069 | 1 | (382,365) |
Balance (in shares) at Sep. 30, 2021 | 31,392,618 | ||||
Balance at Mar. 31, 2021 | 104,089 | $ 31 | 441,252 | 5 | (337,199) |
Balance (in shares) at Mar. 31, 2021 | 31,331,027 | ||||
Stock-based compensation expense | 983 | 983 | |||
Stock-based compensation expense | 13,713 | ||||
Issuance of common stock from stock grants and option exercises | 23 | 23 | |||
Issuance of common stock from stock grants and option exercises, shares | 5,000 | ||||
Unrealized loss on available-for-sale debt securities | (3) | (3) | |||
Net income (loss) | (19,928) | (19,928) | |||
Balance at Jun. 30, 2021 | 85,164 | $ 31 | 442,258 | 2 | (357,127) |
Balance (in shares) at Jun. 30, 2021 | 31,349,740 | ||||
Stock-based compensation expense | 713 | 713 | |||
Stock-based compensation expense | 15,961 | ||||
Issuance of common stock from stock grants and option exercises | 98 | 98 | |||
Issuance of common stock from stock grants and option exercises, shares | 26,917 | ||||
Unrealized loss on available-for-sale debt securities | (1) | (1) | |||
Net income (loss) | (25,238) | (25,238) | |||
Balance at Sep. 30, 2021 | 60,736 | $ 31 | 443,069 | $ 1 | (382,365) |
Balance (in shares) at Sep. 30, 2021 | 31,392,618 | ||||
Balance at Dec. 31, 2021 | 41,089 | $ 31 | 443,752 | (402,694) | |
Balance (in shares) at Dec. 31, 2021 | 31,409,707 | ||||
Stock-based compensation expense | 515 | 515 | |||
Stock-based compensation expense | 32,684 | ||||
Issuance of common stock from stock grants and option exercises | 16 | 16 | |||
Issuance of common stock from stock grants and option exercises, shares | 34,662 | ||||
Net income (loss) | (14,536) | (14,536) | |||
Balance at Mar. 31, 2022 | 27,084 | $ 31 | 444,283 | (417,230) | |
Balance (in shares) at Mar. 31, 2022 | 31,477,053 | ||||
Balance at Dec. 31, 2021 | 41,089 | $ 31 | 443,752 | (402,694) | |
Balance (in shares) at Dec. 31, 2021 | 31,409,707 | ||||
Net income (loss) | 32,212 | ||||
Balance at Sep. 30, 2022 | 29,375 | $ 31 | 399,826 | (370,482) | |
Balance (in shares) at Sep. 30, 2022 | 31,490,053 | ||||
Balance at Mar. 31, 2022 | 27,084 | $ 31 | 444,283 | (417,230) | |
Balance (in shares) at Mar. 31, 2022 | 31,477,053 | ||||
Stock-based compensation expense | 346 | 346 | |||
Net income (loss) | 51,632 | 51,632 | |||
Balance at Jun. 30, 2022 | 79,062 | $ 31 | 444,629 | (365,598) | |
Balance (in shares) at Jun. 30, 2022 | 31,477,053 | ||||
Stock-based compensation expense | 224 | 224 | |||
Issuance of common stock from stock grants and option exercises | 4 | 4 | |||
Issuance of common stock from stock grants and option exercises, shares | 13,000 | ||||
Cash dividends paid ($1.43 per share) | (45,031) | (45,031) | |||
Net income (loss) | (4,884) | (4,884) | |||
Balance at Sep. 30, 2022 | $ 29,375 | $ 31 | $ 399,826 | $ (370,482) | |
Balance (in shares) at Sep. 30, 2022 | 31,490,053 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) $ in Thousands | 3 Months Ended |
Mar. 31, 2021 USD ($) | |
Statement Of Stockholders Equity [Abstract] | |
Issuance costs of issuance of common stock for public offering | $ 3,563 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Operating Activities | ||
Net income (loss) | $ 32,212 | $ (67,604) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Stock-based compensation expense | 1,085 | 2,722 |
Depreciation and amortization | 220 | 175 |
Bad debt expense | 200 | |
Loss on lease termination | 110 | |
Net gain on disposal of assets | (57,245) | |
Changes in operating assets and liabilities: | ||
Accounts and other receivables | 1,618 | 2,199 |
Prepaid and other current assets | 993 | (2,028) |
Accounts payable | (6,378) | (2,063) |
Accrued compensation and other accrued liabilities | (4,317) | 1,473 |
Operating lease liability and right-of-use asset | 111 | 177 |
Deferred revenue | (230) | (1,130) |
Net cash flows used in operating activities | (31,621) | (66,079) |
Investing Activities | ||
Proceeds from maturities of short-term investments | 2,504 | 46,162 |
Proceeds from the sale of property and equipment | 447 | |
Proceeds from the sale of complement portfolio to Vertex | 55,000 | |
Payment of transaction costs in connection with sale of complement portfolio to Vertex | (2,576) | |
Purchases of property and equipment | (839) | |
Net cash flows provided by investing activities | 55,375 | 45,323 |
Financing Activities | ||
Issuance of common stock for public offering, net of issuance costs | 49,250 | |
Payment of dividends | (45,031) | |
Issuance of common stock from stock grants and option exercises | 20 | 303 |
Net cash flow (used in) provided by financing activities | (45,011) | 49,553 |
Net (decrease) increase in cash and cash equivalents | (21,257) | 28,797 |
Cash and cash equivalents at beginning of the period | 44,347 | 30,360 |
Cash and cash equivalents at end of the period | $ 23,090 | 59,157 |
Supplemental Disclosure of Non-Cash Investing and Financing Activities: | ||
Right-of-use assets obtained in exchange for operating lease liabilities | $ 1,850 |
Nature of Operations and Liquid
Nature of Operations and Liquidity | 9 Months Ended |
Sep. 30, 2022 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Nature of Operations and Liquidity | 1. Catalyst Biosciences, Inc. and its subsidiary (the “Company” or “Catalyst”) is a biopharmaceutical company with expertise in protease engineering. Prior to ceasing research and development activities in March 2022, the Company had several protease assets that may address unmet medical needs in disorders of the complement or coagulation systems. The Company is exploring several strategic alternatives to monetize the Company’s remaining assets and is focused on distributing its available cash, after paying or reserving for its obligations and liabilities, to stockholders. On May 19, 2022, Catalyst entered into and closed on an asset purchase agreement with Vertex Pharmaceuticals Incorporated (“Vertex”), pursuant to which Vertex acquired Catalyst’s complement portfolio, including CB 2782-PEG and CB 4332, as well as its complement-related intellectual property including the ProTUNE tm tm On September 20, 2022, the Company paid a special, one-time cash dividend of $1.43 per share to the Company’s common stockholders of record as of close of business on September 6, 2022. The aggregate amount of the special dividend payment was approximately $45.0 million. The Company had a net income of $32.2 million for the nine months ended September 30, 2022 and an accumulated deficit of $370.5 million as of September 30, 2022. As of September 30, 2022, the Company had $23.1 million of cash and cash equivalents. Its primary uses of cash are to fund operating expenses and general and administrative expenditures. The Company believes that its existing cash and cash equivalents as of September 30, 2022 will be sufficient to fund its cash requirements for at least the next 12 months from the date of the filing of this report. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Basis of Presentation The Company’s condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and following the requirements of the Securities and Exchange Commission (the “SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP can be condensed or omitted. These financial statements have been prepared on the same basis as the Company’s annual financial statements and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair presentation of the Company’s financial information. These interim results and cash flows for any interim period are not necessarily indicative of the results to be expected for the year ending December 31, 2022, or for any other future annual or interim period. The accompanying condensed consolidated financial statements and related financial information should be read in conjunction with the consolidated financial statements filed with the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 (“Annual Report”). Net Income (Loss) Per Share Attributable to Common Stockholders Basic net income (loss) per share is calculated by dividing the net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per share is based on the weighted average number of shares of common stock outstanding during the period, adjusted to include the assumed exercise of certain stock options and warrants using the treasury stock method. The calculation assumes that any proceeds that could be obtained upon exercise of options and warrants would be used to purchase common stock at the average market price during the period. Adjustments to the denominator are required to reflect the related dilutive shares. Accounting Pronouncements Recently Adopted In May 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2021-04, Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 3. For a description of the fair value hierarchy and the Company’s fair value methodology, see “ Part II - Item 8 - Financial Statements and Supplementary Data - Note 3 – Summary of Significant Accounting Policies The following tables present the fair value hierarchy for assets and liabilities measured at fair value on a recurring basis as of September 30, 2022 and December 31, 2021 ( in thousands September 30, 2022 Level 1 Level 2 Level 3 Total Financial assets: Money market funds (1) $ 23,090 $ — $ — $ 23,090 Total financial assets $ 23,090 $ — $ — $ 23,090 December 31, 2021 Level 1 Level 2 Level 3 Total Financial assets: Money market funds (1) $ 44,347 $ — $ — $ 44,347 U.S. government agency securities (2) 2,504 — — 2,504 Total financial assets $ 46,851 $ — $ — $ 46,851 (1) Included in cash and cash equivalents on the accompanying condensed consolidated balance sheets. ( 2 ) Included in short-term investments on the accompanying condensed consolidated balance sheets and classified as available-for-sale debt securities. The carrying amounts of cash and cash equivalents, accounts and other receivables, accounts payable, and accrued liabilities approximate their fair values due to the short-term maturity of these instruments. |
Financial Instruments
Financial Instruments | 9 Months Ended |
Sep. 30, 2022 | |
Investments All Other Investments [Abstract] | |
Financial Instruments | 4. Cash equivalents and short-term investments (debt securities) which are classified as available-for-sale securities, consisted of the following ( in thousands September 30, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Money market funds (cash equivalents) $ 23,090 $ — $ — $ 23,090 Total financial assets $ 23,090 $ — $ — $ 23,090 Classified as: Cash and cash equivalents $ 23,090 Total financial assets $ 23,090 December 31, 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Money market funds (cash equivalents) $ 44,347 $ — $ — $ 44,347 U.S. government agency securities 2,504 — — 2,504 Total financial assets $ 46,851 $ — $ — $ 46,851 Classified as: Cash and cash equivalents $ 44,347 Short-term investments 2,504 Total financial assets $ 46,851 There have been no material realized gains or losses on available-for-sale debt securities for the periods presented. As of September 30, 2022, the Company had no available-for-sale debt securities. |
Lease
Lease | 9 Months Ended |
Sep. 30, 2022 | |
Lessee Disclosure [Abstract] | |
Lease | 5. Operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term. In calculating the present value of the lease payments, the Company has elected to utilize its incremental borrowing rate based on the original lease term and not the remaining lease term. The lease includes non-lease components ( e.g. The Company leases office space for its corporate headquarters, located in South San Francisco, CA. The lease term is through April 30, 2023 and there are no stated renewal options. In March 2022, the Company entered into a sublease agreement for one of its leased facilities that commenced in April 2022. Under the terms of the sublease agreement, the Company will receive $0.2 million in base lease payments over the term of the sublease, which ends in April 2023 In August 2022, the Company entered into an agreement to terminate its license agreement for the use of laboratory facilities in South San Francisco, CA with a termination date of August 14, 2022. Under the terms of the agreement, the Company paid $0.1 million in termination fees. The termination resulted in the derecognition of the related right-of-use asset of $0.9 million and lease liability of $0.7 million, and the recognition of a $0.1 million loss on lease termination for the three months ended September 30, 2022, which is included in general and administrative operating expenses in the condensed consolidated statements of operations. For the three and nine months ended September 30, 2022, the Company’s operating lease expense was $0.4 million and $1.5 million, respectively. For the three and nine months ended September 30, 2021, the Company’s operating lease expense was $0.5 million and $1.1 million, respectively. The present value assumptions used in calculating the present value of the lease payments were as follows: September 30, 2022 December 31, 2021 Weighted-average remaining lease term 0.6 years 1.3 years Weighted-average discount rate 5.7 % 4.8 % The maturity of the Company’s operating lease liabilities as of September 30, 2022 were as follows (in thousands) Year Ending December 31, Amount Remaining in 2022 $ 192 2023 195 Total undiscounted lease payments 387 Less imputed interest (6 ) Total operating lease liability $ 381 Supplemental cash flow information related to operating leases was as follows (in thousands) Nine Months Ended September 30, 2022 2021 Cash paid for amounts included in the measurement of lease liabilities $ 1,422 $ 977 Prepaid cash payment for lease liabilities — 208 Cash paid for operating leases that were included in operating cash outflows $ 1,422 $ 1,185 |
Stock Based Compensation
Stock Based Compensation | 9 Months Ended |
Sep. 30, 2022 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Based Compensation | 6. 2018 Omnibus Incentive Plan In June 2018, stockholders of the Company approved the Company’s 2018 Omnibus Incentive Plan (the “2018 Plan”). The 2018 Plan had previously been approved by the Company’s Board of Directors (the “Board”) and the Compensation Committee (the “Committee”) of the Board, subject to stockholder approval. The 2018 Plan became effective on June 13, 2018. On June 9, 2021, the stockholders of the Company approved an amendment previously approved by the Board to increase the number of shares of common stock reserved for issuance under the 2018 Plan by 2,500,000 to a total of 5,300,000 shares. The amendment became effective immediately upon stockholder approval. Performance-Based Stock Option Grant In June 2022, the Committee approved the issuance of an option grant to purchase 400,000 shares of common stock to the Chief Executive Officer pursuant to the 2018 Plan, which will vest upon (a) the achievement of a specified performance goal and (b) the grantees’ continued employment during the service period. For the nine months ended September 30, 2022, no expense has been recognized related to this award. Special Cash Dividend On September 20, 2022, the Company paid a special, one-time cash dividend of $45.0 million (or $1.43 per share) to the Company’s common stockholders of record as of the close of business on September 6, 2022. The Company determined, in accordance with the adjustment provision of the 2018 Plan, that the special cash dividend was unusual and non-recurring and that appropriate adjustment to the stock options to purchase shares of the Company’s common stock outstanding under the 2018 Plan was required. The Company treated this adjustment as a modification to the original stock option grants because the terms of the agreements were modified in order to preserve the value of the option awards after a large non-recurring cash dividend. These options were amended to decrease the exercise price and increase the number of shares subject to the stock option on a proportionate basis. No incremental value was provided to the option holders as a result of the modification and no additional compensation cost was recorded by the Company. The number of shares of common stock reserved for issuance under the 2018 Plan increase d by 14,860,784 to a total of 20,160,784 shares after this adjustment, and there were shares of common stock available for future grant as of September 30, 2022. The following table summarizes stock option activity under the Company’s 2018 Plan and related information: Number of Shares Underlying Outstanding Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Outstanding — December 31, 2021 2,603,630 $ 7.70 7.46 Options granted (1) 10,270,911 $ 1.34 Options forfeited and cancelled (1) (3,920,511 ) $ 5.16 Options expired (47,319 ) $ 13.27 Outstanding — September 30, 2022 8,906,711 $ 1.42 7.78 Exercisable — September 30, 2022 4,331,100 $ 2.38 (1) Includes options that were cancelled and re-granted as part of the option modification from the special cash dividend, as further discussed above. Valuation Assumptions The Company estimated the fair value of stock options granted using the Black-Scholes option-pricing formula and a single option award approach. Due to its limited relevant historical data, the Company estimated its volatility considering a number of factors including the use of the volatility of comparable public companies. The expected term of options granted under the Plan, all of which qualify as “plain vanilla” per SEC Staff Accounting Bulletin 107, is determined based on the simplified method due to the Company’s limited relevant history. The risk-free rate is based on the yield of a U.S. Treasury security with a term consistent with the option. This fair value is being amortized ratably over the requisite service periods of the awards, which is generally the vesting period. The fair value of employee stock options was estimated using the following weighted-average assumptions: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Employee Stock Options: Risk-free rate 3.02 % 0.91 % 2.25 % 0.76 % Expected term (in years) 6.1 6.0 6.0 6.0 Dividend yield — — — — Volatility 91.61 % 90.95 % 91.63 % 93.34 % Weighted-average fair value of stock options granted $ 1.34 $ 3.23 $ 0.58 $ 4.31 Total stock-based compensation expense recognized was as follows ( in thousands Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Research and development $ 78 $ 158 $ 289 $ 921 General and administrative (1) 146 555 796 1,801 Total stock-based compensation expense $ 224 $ 713 $ 1,085 $ 2,722 (1) Included in general and administrative stock-based compensation for the nine months ended September 30, 2022 is stock-based compensation expense related to 32,684 shares of common stock issued to certain board members in lieu of their cash compensation. No shares of common stock were issued to board members for the three months ended September 30, 2022. |
Collaborations
Collaborations | 9 Months Ended |
Sep. 30, 2022 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Collaborations | 7 . Mosaic In October 2017, the Company entered into a strategic research collaboration with Mosaic Biosciences (“Mosaic”) to develop intravitreal anti-complement factor 3 (C3) products for the treatment of dry Age-related Macular Degeneration (AMD) and other retinal diseases. The Company subsequently amended this agreement in December 2018, December 2019 and May 2020. Under the as amended Mosaic collaboration agreement, Mosaic is eligible to receive up to $4.0 million in potential future milestone payments related to regulatory and clinical development events for CB 2782-PEG and an additional anti-complement product candidate in lieu of the Company’s prior obligations to pay Mosaic a double-digit percentage of funds the Company receives from Biogen or any other amounts the Company receives related to sublicense fees, research and development payments, or any other research, regulatory, clinical or commercial milestones and royalties on any other development candidates. As a result of the sale of the Company’s complement portfolio, including CB 2782-PEG and other assets, to Vertex in May 2022, the Mosaic collaboration agreement was transferred to Vertex (see Note 12). ISU Abxis In December 2018, the Company entered into an amended and restated license agreement with ISU Abxis (the “A&R ISU Abxis Agreement”). Under the A&R ISU Abxis Agreement, ISU Abxis will receive commercialization rights in South Korea to the Company’s engineered Factor IX dalcinonacog alfa - DalcA and the Company will receive clinical development and commercialization rights in the rest of world (excluding South Korea) and manufacturing development and manufacturing rights worldwide (including South Korea) The rovides for a low single-digit royalty payment to ISU Abxis, on a country-by-country basis, for net product sales of DalcA by the Company or its affiliates in each country other than South Korea. Pursuant to the A&R , the Company will also pay up to an aggregate of $19.5 million in milestone payments to ISU Abxis, including $2.5 million in regulatory and development milestone payments and up to $17.0 million in commercial milestone payments, if the applicable milestones are met. As of September 30, 2022, no milestones have been met. Biogen On December 18, 2019, the Company and Biogen International GmbH (“Biogen”) entered into a License and Collaboration Agreement (the “Biogen Agreement”), under which the Company granted Biogen a worldwide, royalty-bearing, exclusive, with the right to sublicense, license (“Exclusive License”) to develop and commercialize CB 2782-PEG and other anti-C3 proteases for potential treatment of dry AMD and other disorders. Pursuant to the Biogen Agreement, the Company performed certain pre-clinical and manufacturing activities (“Research Services”), and Biogen was solely responsible for funding the pre-clinical and manufacturing activities and performing IND-enabling activities, worldwide clinical development, and commercialization. Under the terms of the Biogen Agreement, the Company received an up-front payment for the transfer of the Exclusive License (inclusive of certain know-how) of $15.0 million in January 2020. The Company was eligible to receive development milestones and sales milestones of up to $340.0 million. In addition, the Company was eligible to receive royalties in the range of single-digit to low double-digit percentage rates of annual net sales on a product-by-product and country-by-country basis. The Company also received reimbursements for costs associated with the performance of the Research Services. The Company determined that the performance obligations under the Biogen Agreement were the Exclusive License and the Research Services. For the Exclusive License, the Company used the residual approach in determining the standalone selling price, or SSP, which includes the upfront payments, milestones and royalties. For the Research Services, the Company used the historical pricing approach for determining the SSP, which includes the reimbursement of personnel and out-of-pocket costs. In March 2022, the Company received written notice from Biogen declaring intent to terminate the Biogen Agreement which was effective as of May 2022. As a result of the termination, Biogen no longer has the Exclusive License to develop, manufacture and commercialize CB 2782-PEG and other anti-C3 proteases for potential treatment of dry AMD and other disorders. In March 2022, Biogen returned full rights to CB 2782-PEG. In June 2022, Biogen and the Company reached an agreement to resolve the outstanding obligations and monetary disputes between the parties. The Company agreed to forgive approximately $0.6 million of accounts receivable due from Biogen and to pay Biogen $10,000 in cash. This resulted in the Company recognizing a $0.6 million settlement expense for the three months ended June 30, 2022, which is included in general and administrative operating expenses in the condensed consolidated statements of operations. The Company recognized $0.0 million and $0.7 million of research and development expense as cost of collaboration revenue for the three and nine months ended September 30, 2022, respectively. The Company recognized $1.9 million and $4.3 million for the three and nine months ended September 30, 2021, respectively, of research and development expense as cost of collaboration revenue related to the Biogen Agreement. Research and development expenses were reimbursed by Biogen in accordance with the agreement. For the nine months ended September 30, 2022, the Company recognized $0.2 million of revenue from the beginning of period deferred revenue balance. |
Net Income (Loss) per Share Att
Net Income (Loss) per Share Attributable to Common Stockholders | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) per Share Attributable to Common Stockholders | 8. The dilutive effect of outstanding stock options and warrants is calculated using the treasury stock method. Stock options and warrants are anti-dilutive and excluded from the diluted net income (loss) per share calculation if the exercise price exceeds the average market price of the common shares. Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows: Nine Months Ended September 30, 2022 2021 Options to purchase common stock 7,034,805 3,019,457 Common stock warrants — 85 Total 7,034,805 3,019,542 The following table sets forth the computation of the basic and diluted net income (loss) per common share as follows (in thousands, except share and per share data): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Net income (loss) attributable to common stockholders $ (4,884 ) $ (25,238 ) $ 32,212 $ (67,604 ) Weighted-average number of shares used in computing net loss per share, basic 31,484,542 31,379,755 31,472,666 30,382,231 Effect of dilutive stock options — — 133,168 — Weighted-average number of shares used in computing net loss per share, diluted 31,484,542 31,379,755 31,605,834 30,382,231 Net income (loss) per share, basic $ (0.16 ) $ (0.80 ) $ 1.02 $ (2.23 ) Net income (loss) per share, diluted $ (0.16 ) $ (0.80 ) $ 1.02 $ (2.23 ) |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9 . Commitments and Contingencies Manufacturing Agreements The Company previously signed an agreement with AGC Biologics, Inc. (“AGC”) to perform certain manufacturing services related to the Company’s collaboration agreement with Biogen, which included firm work orders totaling $0.7 million. The payment obligations were fully paid off as of March 31, 2022, and Vertex assumed responsibility for further complement-related manufacturing in connection with the sale of the Company’s complement portfolio to Vertex (See Note 12). During the quarter ended June 30, 2022, the Company terminated its manufacturing agreement with AGC for Catalyst’s remaining programs and has no remaining obligations under the agreement as of September 30, 2022. In July 2021, the Company entered into an agreement for the Company’s screening and natural history of disease clinical studies related to CFI deficiency, with total payments of up to $6.5 million. During the quarter ended June 30, 2022, the Company terminated this agreement and incurred $0.8 million for clinical trial services incurred prior to termination and reasonable wind-down expenses. As of September 30, 2022, the Company has no remaining obligations under this agreement. On September 16, 2021, the Company signed a Manufacturing and Research and Development Studies Agreement to support the lyophilized drug product, CB 4332. The agreement covers analytical method qualification to support good manufacturing practices (“GMP”) manufacturing. The Company had firm work orders related to this agreement totaling $0.3 million. During the quarter ended June 30, 2022, the Company terminated this agreement. Legal Proceedings On June 15, 2022, certain Company stockholders who beneficially held in the aggregate more than five percent (5%) of the Company’s common stock filed a lawsuit in Delaware Chancery Court, captioned JDS1, LLC v. Catalyst Biosciences, Inc COVID-19 The current COVID-19 pandemic has presented a substantial public health and economic challenge around the world and is affecting the Company’s employees and business operations. The full extent to which the COVID-19 pandemic will directly or indirectly impact the Company’s business, results of operations and financial condition will depend on future developments that are highly uncertain and cannot be accurately predicted, including new information that may emerge concerning COVID-19, the actions taken to contain it or treat its impact and the economic impact on local, regional, national, and international markets. The COVID-19 pandemic may disrupt the Company’s ability to out-license any of its remaining assets. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 1 0 . Income Taxes As of September 30, 2022, after consideration of certain limitations (see below), the Company had approximately $186.5 million federal and $4.2 million state net operating loss carryforwards ("NOL") available to reduce future taxable income which, if unused, will carry forward indefinitely for federal and will begin to expire in 2033 for state tax purposes. Contained in the federal NOL carryforward are $87.1 million that will not be immediately available to offset due to 382 limitations but will free up in varying amounts each year. If the Company experiences a greater than 50 percentage aggregate change in ownership over a three-year period (a Section 382 ownership change), utilization of its pre-change NOL carry forwards are subject to annual limitation under Section 382 of the Internal Revenue Code (California has similar provisions). The annual limitation is determined by multiplying the value of the Company's stock at the time of such ownership change by the applicable long-term tax-exempt rate. Such limitations may result in expiration of a portion of the NOL carryforwards before utilization. The Company determined that ownership changes occurred on December 21, 2007, August 20, 2015, April 13, 2017, February 15, 2018, and February 18, 2020. The ability of the Company to use its remaining NOL and tax credit carry forwards may be further limited if the Company experiences a Section 382 ownership change as a result of future changes in its stock ownership. |
Interest and Other Income (Expe
Interest and Other Income (Expense), Net | 9 Months Ended |
Sep. 30, 2022 | |
Other Income And Expenses [Abstract] | |
Interest and Other Income (Expense), Net | 11. Interest and Other Income (Expense), Net The following table shows the detail of interest and other income (expense), net as follows ( in thousands Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Interest income $ 283 $ 7 $ 370 $ 35 Gain from extinguishment of liability — — 180 — Other (1 ) (16 ) (1 ) (58 ) Total interest and other income (expense), net $ 282 $ (9 ) $ 549 $ (23 ) |
Restructuring
Restructuring | 9 Months Ended |
Sep. 30, 2022 | |
Restructuring And Related Activities [Abstract] | |
Restructuring | 1 2 . Restructuring Reduction-in-Force In November 2021, the Board approved a restructuring of the Company’s business based on its decision to stop the clinical development of MarzAA and focus solely on its complement programs and protease medicines platform. The restructuring included a reduction-in-force whereby approximately 35% of employees were terminated. During the year ended December 31, 2021, the Company recorded charges of $0.4 million related to one-time severance costs and related expenses in connection with the workforce reduction, and charges of $3.8 million related to the write-off of prepaid manufacturing costs that will no longer be used for the clinical development of MarzAA. The remaining restructuring liability of $0.2 million was paid during the second quarter of 2022. In March 2022, the Board approved a further reduction of its workforce as part of its restructuring plan whereby 22 full-time employees were terminated. Following this reduction, the Company had five full-time employees remaining. During the quarter ended March 31, 2022, the Company recorded additional charges of $1.0 million for severance and other costs related to the reduction-in-force, recognized as an operating expense within the consolidated statements of operations, which the Company paid in the second quarter of 2022. Sale of Assets During the quarter ended June 30, 2022, the Company entered into sales agreements, pursuant to which the Company sold various lab equipment, consumables, and furniture and fixtures for total consideration of $0.4 million. The Company recorded a loss on disposal of $0.2 million, which is included in gain on disposal of assets, net in the condensed consolidated statements of operations. In May 2022, the Company entered into an asset purchase agreement with Vertex, pursuant to which Vertex purchased the Company’s complement portfolio, including CB 2782-PEG and CB 4332, as well as its complement-related intellectual property including the ProTUNE TM TM |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Company’s condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and following the requirements of the Securities and Exchange Commission (the “SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP can be condensed or omitted. These financial statements have been prepared on the same basis as the Company’s annual financial statements and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair presentation of the Company’s financial information. These interim results and cash flows for any interim period are not necessarily indicative of the results to be expected for the year ending December 31, 2022, or for any other future annual or interim period. The accompanying condensed consolidated financial statements and related financial information should be read in conjunction with the consolidated financial statements filed with the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 (“Annual Report”). |
Net Income (Loss) Per Share Attributable to Common Stockholders | Net Income (Loss) Per Share Attributable to Common Stockholders Basic net income (loss) per share is calculated by dividing the net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per share is based on the weighted average number of shares of common stock outstanding during the period, adjusted to include the assumed exercise of certain stock options and warrants using the treasury stock method. The calculation assumes that any proceeds that could be obtained upon exercise of options and warrants would be used to purchase common stock at the average market price during the period. Adjustments to the denominator are required to reflect the related dilutive shares. |
Accounting Pronouncements Recently Adopted | Accounting Pronouncements Recently Adopted In May 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2021-04, Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables present the fair value hierarchy for assets and liabilities measured at fair value on a recurring basis as of September 30, 2022 and December 31, 2021 ( in thousands September 30, 2022 Level 1 Level 2 Level 3 Total Financial assets: Money market funds (1) $ 23,090 $ — $ — $ 23,090 Total financial assets $ 23,090 $ — $ — $ 23,090 December 31, 2021 Level 1 Level 2 Level 3 Total Financial assets: Money market funds (1) $ 44,347 $ — $ — $ 44,347 U.S. government agency securities (2) 2,504 — — 2,504 Total financial assets $ 46,851 $ — $ — $ 46,851 (1) Included in cash and cash equivalents on the accompanying condensed consolidated balance sheets. ( 2 ) Included in short-term investments on the accompanying condensed consolidated balance sheets and classified as available-for-sale debt securities. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Investments All Other Investments [Abstract] | |
Cash Equivalents and Short-Term Investments Classified as Available-for-sale Securities | Cash equivalents and short-term investments (debt securities) which are classified as available-for-sale securities, consisted of the following ( in thousands September 30, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Money market funds (cash equivalents) $ 23,090 $ — $ — $ 23,090 Total financial assets $ 23,090 $ — $ — $ 23,090 Classified as: Cash and cash equivalents $ 23,090 Total financial assets $ 23,090 December 31, 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Money market funds (cash equivalents) $ 44,347 $ — $ — $ 44,347 U.S. government agency securities 2,504 — — 2,504 Total financial assets $ 46,851 $ — $ — $ 46,851 Classified as: Cash and cash equivalents $ 44,347 Short-term investments 2,504 Total financial assets $ 46,851 |
Lease (Tables)
Lease (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Lessee Disclosure [Abstract] | |
Summary of Present Value Assumptions used in Calculating Present Value of Lease Payments | The present value assumptions used in calculating the present value of the lease payments were as follows September 30, 2022 December 31, 2021 Weighted-average remaining lease term 0.6 years 1.3 years Weighted-average discount rate 5.7 % 4.8 % |
Schedule of Maturity of Operating Lease Liabilities | The maturity of the Company’s operating lease liabilities as of September 30, 2022 were as follows (in thousands) Year Ending December 31, Amount Remaining in 2022 $ 192 2023 195 Total undiscounted lease payments 387 Less imputed interest (6 ) Total operating lease liability $ 381 |
Schedule of Supplemental Cash Flow Information | Supplemental cash flow information related to operating leases was as follows (in thousands) Nine Months Ended September 30, 2022 2021 Cash paid for amounts included in the measurement of lease liabilities $ 1,422 $ 977 Prepaid cash payment for lease liabilities — 208 Cash paid for operating leases that were included in operating cash outflows $ 1,422 $ 1,185 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Option Activity Under Company's Equity Incentive Plans | The following table summarizes stock option activity under the Company’s 2018 Plan and related information: Number of Shares Underlying Outstanding Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Outstanding — December 31, 2021 2,603,630 $ 7.70 7.46 Options granted (1) 10,270,911 $ 1.34 Options forfeited and cancelled (1) (3,920,511 ) $ 5.16 Options expired (47,319 ) $ 13.27 Outstanding — September 30, 2022 8,906,711 $ 1.42 7.78 Exercisable — September 30, 2022 4,331,100 $ 2.38 (1) Includes options that were cancelled and re-granted as part of the option modification from the special cash dividend, as further discussed above. |
Summary of Weighted Average Valuation Assumptions Used to Estimate Fair Value of Employee Stock Options | The fair value of employee stock options was estimated using the following weighted-average assumptions: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Employee Stock Options: Risk-free rate 3.02 % 0.91 % 2.25 % 0.76 % Expected term (in years) 6.1 6.0 6.0 6.0 Dividend yield — — — — Volatility 91.61 % 90.95 % 91.63 % 93.34 % Weighted-average fair value of stock options granted $ 1.34 $ 3.23 $ 0.58 $ 4.31 |
Summary of Stock-Based Compensation Expense Recognized | Total stock-based compensation expense recognized was as follows ( in thousands Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Research and development $ 78 $ 158 $ 289 $ 921 General and administrative (1) 146 555 796 1,801 Total stock-based compensation expense $ 224 $ 713 $ 1,085 $ 2,722 (1) Included in general and administrative stock-based compensation for the nine months ended September 30, 2022 is stock-based compensation expense related to 32,684 shares of common stock issued to certain board members in lieu of their cash compensation. No shares of common stock were issued to board members for the three months ended September 30, 2022. |
Net Income (Loss) per Share A_2
Net Income (Loss) per Share Attributable to Common Stockholders (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Anti-dilutive Security not Included in Diluted per Share Calculations | Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows: Nine Months Ended September 30, 2022 2021 Options to purchase common stock 7,034,805 3,019,457 Common stock warrants — 85 Total 7,034,805 3,019,542 |
Basic and Diluted Net Income (Loss) Per Common Share | The following table sets forth the computation of the basic and diluted net income (loss) per common share as follows (in thousands, except share and per share data): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Net income (loss) attributable to common stockholders $ (4,884 ) $ (25,238 ) $ 32,212 $ (67,604 ) Weighted-average number of shares used in computing net loss per share, basic 31,484,542 31,379,755 31,472,666 30,382,231 Effect of dilutive stock options — — 133,168 — Weighted-average number of shares used in computing net loss per share, diluted 31,484,542 31,379,755 31,605,834 30,382,231 Net income (loss) per share, basic $ (0.16 ) $ (0.80 ) $ 1.02 $ (2.23 ) Net income (loss) per share, diluted $ (0.16 ) $ (0.80 ) $ 1.02 $ (2.23 ) |
Interest and Other Income (Ex_2
Interest and Other Income (Expense), Net (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Other Income And Expenses [Abstract] | |
Detail of Interest and Other Income (Expense), Net | The following table shows the detail of interest and other income (expense), net as follows ( in thousands Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Interest income $ 283 $ 7 $ 370 $ 35 Gain from extinguishment of liability — — 180 — Other (1 ) (16 ) (1 ) (58 ) Total interest and other income (expense), net $ 282 $ (9 ) $ 549 $ (23 ) |
Nature of Operations and Liqu_2
Nature of Operations and Liquidity - Additional Information (Detail) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 20, 2022 USD ($) $ / shares | Sep. 30, 2022 USD ($) $ / shares | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Sep. 30, 2021 USD ($) | Jun. 30, 2021 USD ($) | Mar. 31, 2021 USD ($) | Sep. 30, 2022 USD ($) Segment $ / shares | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Accounting Policies [Abstract] | ||||||||||
Common stock, cash dividend paid | $ / shares | $ 1.43 | $ 1.43 | $ 1.43 | |||||||
Aggregate amount of special dividend payment | $ 45,000 | |||||||||
Number of operating segment | Segment | 1 | |||||||||
Net income (loss) | $ (4,884) | $ 51,632 | $ (14,536) | $ (25,238) | $ (19,928) | $ (22,438) | $ 32,212 | $ (67,604) | ||
Accumulated deficit | 370,482 | 370,482 | $ 402,694 | |||||||
Cash and cash equivalents | $ 23,090 | $ 23,090 | $ 44,347 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, fair value | $ 23,090 | $ 46,851 | |
U.S. Government Agency Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, fair value | [1] | 2,504 | |
Money Market Funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, fair value | [2] | 23,090 | 44,347 |
Fair Value, Inputs, Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, fair value | 23,090 | 46,851 | |
Fair Value, Inputs, Level 1 | U.S. Government Agency Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, fair value | [1] | 2,504 | |
Fair Value, Inputs, Level 1 | Money Market Funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, fair value | [2] | $ 23,090 | $ 44,347 |
[1]Included in short-term investments on the accompanying condensed consolidated balance sheets and classified as available-for-sale debt securities[2]Included in cash and cash equivalents on the accompanying condensed consolidated balance sheets. |
Financial Instruments - Cash Eq
Financial Instruments - Cash Equivalents and Short-Term Investments Classified as Available-for-sale Securities (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | $ 23,090 | $ 46,851 |
Estimated Fair Value | 23,090 | 46,851 |
Money Market Funds (Cash Equivalents) | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 23,090 | 44,347 |
Estimated Fair Value | 23,090 | 44,347 |
Cash and Cash Equivalents | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated Fair Value | $ 23,090 | 44,347 |
U.S. Government Agency Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 2,504 | |
Estimated Fair Value | 2,504 | |
Short-Term Investments | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Estimated Fair Value | $ 2,504 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Fair Value Disclosures [Abstract] | |
Material realized gains or losses on available-for-sale securities | $ 0 |
Available-for-sale debt securities current | $ 0 |
Lease - Additional Information
Lease - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Aug. 31, 2022 | Mar. 31, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Lessee Lease Description [Line Items] | |||||||
Lease expiration date | Apr. 30, 2023 | ||||||
Lessee operating lease renewal term description | no stated renewal options | ||||||
Right-of-use assets | $ 481,000 | $ 481,000 | $ 2,744,000 | ||||
Operating lease, liability | 381,000 | 381,000 | |||||
Operating lease expense | 400,000 | $ 500,000 | 1,500,000 | $ 1,100,000 | |||
Sublease Arrangement | |||||||
Lessee Lease Description [Line Items] | |||||||
Lease expiration date | Apr. 30, 2023 | ||||||
Lease Payments Receivable | $ 200,000 | ||||||
Sublease Income | 38,000 | $ 100,000 | |||||
Sublease Arrangement | Lease Lab and Office Space | |||||||
Lessee Lease Description [Line Items] | |||||||
License agreement termination date | Aug. 14, 2022 | ||||||
Loss on lease termination | $ 100,000 | ||||||
Termination fees paid | $ 100,000 | ||||||
Right-of-use assets | 900,000 | ||||||
Operating lease, liability | $ 700,000 |
Lease - Summary of Present Valu
Lease - Summary of Present Value Assumptions used in Calculating Present Value of Lease Payments (Detail) | Sep. 30, 2022 | Dec. 31, 2021 |
Lessee Disclosure [Abstract] | ||
Weighted-average remaining lease term | 7 months 6 days | 1 year 3 months 18 days |
Weighted-average discount rate | 5.70% | 4.80% |
Lease - Schedule of Maturity of
Lease - Schedule of Maturity of Operating Lease Liabilities (Detail) $ in Thousands | Sep. 30, 2022 USD ($) |
Operating Lease Liabilities Payments Due [Abstract] | |
Remaining in 2022 | $ 192 |
2023 | 195 |
Total undiscounted lease payments | 387 |
Less imputed interest | (6) |
Total operating lease liability | $ 381 |
Lease - Schedule of Supplementa
Lease - Schedule of Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Operating Lease Liabilities Payments Due [Abstract] | ||
Cash paid for amounts included in the measurement of lease liabilities | $ 1,422 | $ 977 |
Prepaid cash payment for lease liabilities | 208 | |
Cash paid for operating leases that were included in operating cash outflows | $ 1,422 | $ 1,185 |
Stock Based Compensation - Addi
Stock Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 20, 2022 | Jun. 09, 2021 | Sep. 30, 2022 | Sep. 30, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of common stock available for future grant | 12,763,009 | 12,763,009 | ||
Aggregate amount of special dividend payment | $ 45 | |||
Cash dividends paid per common share | $ 1.43 | $ 1.43 | $ 1.43 | |
2018 Omnibus Incentive Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Increase in number of shares of common stock reserved for issuance | 2,500,000 | 14,860,784 | ||
Common Stock, Capital Shares Reserved for Future Issuance | 5,300,000 | 20,160,784 | 20,160,784 | |
2018 Omnibus Incentive Plan | Performance-Based Stock Option Grants | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Issuance of option grants to purchase common stock shares | 400,000 | 400,000 |
Stock Based Compensation - Summ
Stock Based Compensation - Summary of Option Activity Under Company's 2018 Plan (Detail) - $ / shares | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | ||
Number of Shares Underlying Outstanding Options | |||
Number of Shares Underlying Outstanding Options, Beginning Balance | 2,603,630 | ||
Number of Shares Underlying Outstanding Options, Options granted | [1] | 10,270,911 | |
Number of Shares Underlying Outstanding Options, Options forfeited and cancelled | [1] | (3,920,511) | |
Number of Shares Underlying Outstanding Options, Options expired | (47,319) | ||
Number of Shares Underlying Outstanding Options, Ending Balance | 8,906,711 | 2,603,630 | |
Number of Shares Underlying Outstanding Options, Exercisable - September 30, 2022 | 4,331,100 | ||
Weighted- Average Exercise Price | |||
Weighted- Average Exercise Price, Beginning Balance | $ 7.70 | ||
Weighted- Average Exercise Price, Options granted | [1] | 1.34 | |
Weighted- Average Exercise Price, Options forfeited and cancelled | [1] | 5.16 | |
Weighted- Average Exercise Price, Options expired | 13.27 | ||
Weighted- Average Exercise Price, Ending Balance | 1.42 | $ 7.70 | |
Weighted- Average Exercise Price, Exercisable - September 30, 2022 | $ 2.38 | ||
Weighted-Average Remaining Contractual Term (Years) | |||
Weighted-Average Remaining Contractual Term (Years), Outstanding Balance | 7 years 9 months 10 days | 7 years 5 months 15 days | |
[1]Includes options that were cancelled and re-granted as part of the option modification from the special cash dividend, as further discussed above. |
Stock Based Compensation - Fair
Stock Based Compensation - Fair Values of Stock Options Estimated Using Black-Scholes Valuation Model (Detail) - Employee Stock Option - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Black Scholes Method Used [Line Items] | ||||
Risk-free rate | 3.02% | 0.91% | 2.25% | 0.76% |
Expected term (in years) | 6 years 1 month 6 days | 6 years | 6 years | 6 years |
Dividend yield | 0% | 0% | 0% | 0% |
Volatility | 91.61% | 90.95% | 91.63% | 93.34% |
Weighted-average fair value of stock options granted | $ 1.34 | $ 3.23 | $ 0.58 | $ 4.31 |
Stock Based Compensation - Su_2
Stock Based Compensation - Summary of Stock-Based Compensation Expense Recognized (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||
Total stock-based compensation expense | $ 224 | $ 713 | $ 1,085 | $ 2,722 | |
Research and development | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||
Total stock-based compensation expense | 78 | 158 | 289 | 921 | |
General and Administrative | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||||
Total stock-based compensation expense | [1] | $ 146 | $ 555 | $ 796 | $ 1,801 |
[1] Included in general and administrative stock-based compensation for the nine months ended September 30, 2022 is stock-based compensation expense related to 32,684 shares of common stock issued to certain board members in lieu of their cash compensation. No shares of common stock were issued to board members for the three months ended September 30, 2022. |
Stock Based Compensation - Su_3
Stock Based Compensation - Summary of Stock-Based Compensation Expense Recognized (Parenthetical) (Detail) - shares | 3 Months Ended | 9 Months Ended |
Sep. 30, 2022 | Sep. 30, 2022 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Number of shares of common stock issued to certain board members in lieu of cash compensation | 0 | 32,684 |
Collaborations - Additional Inf
Collaborations - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
May 08, 2020 | Jun. 30, 2022 | Jan. 31, 2020 | Dec. 31, 2018 | Sep. 30, 2022 | Jun. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | |||||||||
Research and development | $ 803,000 | $ 20,352,000 | $ 12,377,000 | $ 52,754,000 | |||||
Deferred revenue, recognized | 200,000 | ||||||||
Mosaic Biosciences Inc | Maximum | |||||||||
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | |||||||||
Milestone payment related to regulatory and clinical development events | $ 4,000,000 | ||||||||
ISU Abxis | Amended and Restated License Agreement | |||||||||
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | |||||||||
Regulatory and development milestone payment | $ 2,500,000 | 0 | |||||||
ISU Abxis | Maximum | Amended and Restated License Agreement | |||||||||
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | |||||||||
Milestone payment | 19,500,000 | 0 | |||||||
Commercial milestone payments | $ 17,000,000 | 0 | |||||||
Biogen | Collaboration | |||||||||
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | |||||||||
Research and development | $ 0 | $ 1,900,000 | $ 700,000 | $ 4,300,000 | |||||
Biogen | Exclusive License | |||||||||
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | |||||||||
Up-front payments received | $ 15,000,000 | ||||||||
Biogen | Termination Agreement | |||||||||
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | |||||||||
Forgiveness of accounts receivable, net | $ 600,000 | $ 600,000 | |||||||
Payments to cash | $ 10,000 | ||||||||
Biogen | Termination Agreement | General and Administrative | |||||||||
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | |||||||||
Settlement expense | $ 600,000 | ||||||||
Biogen | Maximum | Exclusive License | |||||||||
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | |||||||||
Development and sales milestone payments | $ 340,000,000 |
Net Income (Loss) Per Share A_3
Net Income (Loss) Per Share Attributable to Common Stockholders - Anti-dilutive Security not Included In Diluted per Share Calculations (Detail) - shares | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti dilutive securities | 7,034,805 | 3,019,542 |
Options To Purchase Common Stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti dilutive securities | 7,034,805 | 3,019,457 |
Common Stock Warrants | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti dilutive securities | 85 |
Net Income (Loss) Per Share A_4
Net Income (Loss) Per Share Attributable to Common Stockholders - Basic and Diluted Net Loss Per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) attributable to common stockholders | $ (4,884) | $ (25,238) | $ 32,212 | $ (67,604) |
Weighted-average number of shares used in computing net loss per share, basic | 31,484,542 | 31,379,755 | 31,472,666 | 30,382,231 |
Effect of dilutive stock options | 133,168 | |||
Weighted-average number of shares used in computing net loss per share, diluted | 31,484,542 | 31,379,755 | 31,605,834 | 30,382,231 |
Net income (loss) per share, basic | $ (0.16) | $ (0.80) | $ 1.02 | $ (2.23) |
Net income (loss) per share, diluted | $ (0.16) | $ (0.80) | $ 1.02 | $ (2.23) |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | |||||
Jun. 15, 2022 | Aug. 31, 2022 | Jun. 30, 2022 | Sep. 30, 2022 | Mar. 31, 2022 | Sep. 16, 2021 | Jul. 31, 2021 | |
Commitments And Contingencies Disclosure [Line Items] | |||||||
Percentage of common stock filed a lawsuit | 5% | ||||||
Legal and Other Expenses | |||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||
Litigation amount | $ 400,000 | ||||||
A G C Biologics Inc | Service Agreements | |||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||
Remaining obligations | $ 0 | ||||||
A G C Biologics Inc | Marzeptacog Alfa Activated And Dalcinonacog Alfa | Service Agreements | |||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||
Cost of Manufacturing Services | $ 700,000 | ||||||
Dalcinonacog Alfa | Service Agreements | |||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||
Remaining obligations | $ 0 | ||||||
Clinical trial services cost incurred on agreement termination | $ 800,000 | ||||||
Dalcinonacog Alfa | Service Agreements | Maximum | |||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||
Cost of services as per agreement | $ 6,500,000 | ||||||
Catalent Indiana, LLC. | Dalcinonacog alfa. | |||||||
Commitments And Contingencies Disclosure [Line Items] | |||||||
Firm work order supporting clinical trials | $ 300,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Federal Income Tax | |
Income Tax [Line Items] | |
Net operating loss carryforwards | $ 186.5 |
Net operating loss carryforwards having indefinite life | 87.1 |
State Income Tax | |
Income Tax [Line Items] | |
Net operating loss carryforwards | $ 4.2 |
Net operating loss carryforwards expiration year | 2033 |
Interest and Other Income (Ex_3
Interest and Other Income (Expense), Net - Detail of Interest and Other Income (Expense), Net (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Other Income And Expenses [Abstract] | ||||
Interest income | $ 283 | $ 7 | $ 370 | $ 35 |
Gain from extinguishment of liability | 180 | |||
Other | (1) | (16) | (1) | (58) |
Total interest and other income (expense), net | $ 282 | $ (9) | $ 549 | $ (23) |
Restructuring - Additional Info
Restructuring - Additional Information (Detail) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
May 31, 2022 USD ($) | Mar. 31, 2022 Employee | Nov. 30, 2021 | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Restructuring Cost And Reserve [Line Items] | |||||||
Percent of employees terminated | 35% | ||||||
Severance costs and expenses | $ 400 | ||||||
Charges related to write off of prepaid manufacturing cost | 3,800 | ||||||
Restructuring liability | $ 200 | ||||||
Number of employees terminated | Employee | 22 | ||||||
Remaining number of full time employees | Employee | 5 | ||||||
Gain (loss) on disposal | $ 57,245 | ||||||
Proceeds from the sale of complement portfolio to Vertex | 55,000 | ||||||
Dren Bio, Inc. and Copia Scientific, LLC | |||||||
Restructuring Cost And Reserve [Line Items] | |||||||
Total consideration for sales agreements | $ 400 | ||||||
Gain (loss) on disposal | $ (200) | ||||||
Vertex Pharmaceuticals Incorporated | |||||||
Restructuring Cost And Reserve [Line Items] | |||||||
Gain (loss) on disposal | $ 57,400 | ||||||
Proceeds from the sale of complement portfolio to Vertex | 60,000 | ||||||
Upfront payment received | 55,000 | ||||||
Post closing indemnification obligation | $ 5,000 | ||||||
Transaction costs | $ 2,600 | ||||||
Operating Expense | |||||||
Restructuring Cost And Reserve [Line Items] | |||||||
Severance and other charges | $ 1,000 |