Lumos Pharma (LUMO) 10-Q 5 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 03, 2017
Entity Information [Line Items]
Entity Registrant Name	NEWLINK GENETICS CORP
Entity Central Index Key	1,126,234
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		29,225,682
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 118,240	$ 131,490
Prepaid expenses and other current assets	8,984	5,921
Income tax receivable	6,287	5,975
Income tax receivable	9,645	24,526
Total current assets	143,156	167,912
Property and equipment, net	6,466	6,835
Total assets	149,622	174,747
Current liabilities:
Accounts payable	9,618	22,883
Accrued expenses	17,805	14,309
Current portion of unearned revenue	223	391
Current portion of deferred rent	91	90
Current portion of notes payable and obligations under capital leases	234	232
Total current liabilities	27,971	37,905
Long-term liabilities:
Royalty obligation payable to Iowa Economic Development Authority	6,000	6,000
Notes payable and obligations under capital leases	229	285
Deferred rent	1,068	1,091
Total long-term liabilities	7,297	7,376
Total liabilities	35,268	45,281
Stockholders' equity:
Blank check preferred stock, $0.01 par value: Authorized shares — 5,000,000 at March 31, 2017 and December 31, 2016; issued and outstanding shares — 0 at March 31, 2017 and December 31, 2016	0	0
Common stock, $0.01 par value: Authorized shares — 75,000,000 at March 31, 2017 and December 31, 2016; issued 29,271,898 and 29,193,718 at March 31, 2017 and December 31, 2016, respectively, and outstanding 29,219,661 and 29,163,673 at March 31, 2017 and December 31, 2016, respectively	292	292
Additional paid-in capital	301,573	295,535
Treasury stock, at cost: 52,237 and 30,045 shares at March 31, 2017 and December 31, 2016, respectively	(1,090)	(853)
Accumulated deficit	(186,421)	(165,508)
Total stockholders' equity	114,354	129,466
Total liabilities and stockholders' equity	$ 149,622	$ 174,747

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - $ / shares	Mar. 31, 2017	Dec. 31, 2016
Stockholders' Equity:
Blank check preferred stock, par value	$ 0.01	$ 0.01
Blank check preferred stock, authorized shares	5,000,000	5,000,000
Blank check preferred stock, issued shares	0	0
Blank check preferred stock, outstanding shares	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, $0.01 par value: Authorized shares — 75,000,000 at March 31, 2017 and December 31, 2016; issued 29,271,898 and 29,193,718 at March 31, 2017 and December 31, 2016, respectively, and outstanding 29,219,661 and 29,163,673 at March 31, 2017 and December 31, 2016, respectively	75,000,000	75,000,000
Common stock, issued shares	29,271,898	29,193,718
Common stock, outstanding shares	29,219,661	29,163,673
Treasury stock, at cost: 52,237 and 30,045 shares at March 31, 2017 and December 31, 2016, respectively	52,237	30,045

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Grant revenue	$ 2,586,000	$ 4,338,000
Licensing and collaboration revenue	175,000	1,370,000
Total operating revenues	2,761,000	5,708,000
Operating expenses:
Research and development	15,725,000	21,937,000
General and administrative	8,234,000	9,164,000
Total operating expenses	23,959,000	31,101,000
Loss from operations	(21,198,000)	(25,393,000)
Other income and expense:
Miscellaneous expense	(4,000)	0
Interest income	85,000	46,000
Interest expense	(106,000)	(7,000)
Other (expense) income, net	(25,000)	39,000
Net loss before taxes	(21,223,000)	(25,354,000)
Income tax benefit	310,000	1,634,000
Net loss	$ (20,913,000)	$ (23,720,000)
Basic and diluted loss per share	$ (0.72)	$ (0.82)
Basic and diluted average shares outstanding	29,213,488	28,856,944

Consolidated Statement of Stock

Consolidated Statement of Stockholders' Equity (Deficit) - 3 months ended Mar. 31, 2017 - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Treasury Stock	Accumulated Deficit
Balance at December 31, 2016 at Dec. 31, 2016	$ 129,466	$ 292	$ 295,535	$ (853)	$ (165,508)
Balance at December 31, 2016 (shares) at Dec. 31, 2016	29,163,673
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation	$ 5,975		5,975
Exercise of stock options and restricted stock vested	$ 63	0	63
Exercise of stock options and restricted stock vested (shares)	78,179
Repurchase of common stock	$ (237)			(237)
Shares withheld for statutory tax withholding (shares)	(22,191)
Net loss	$ (20,913)				(20,913)
Balance at March 31, 2017 at Mar. 31, 2017	$ 114,354	$ 292	$ 301,573	$ (1,090)	$ (186,421)
Balance at March 31, 2017 (shares) at Mar. 31, 2017	29,219,661

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash Flows From Operating Activities
Net loss	$ (20,913)	$ (23,720)
Adjustments to reconcile net loss to net cash used in operating activities:
Share-based compensation	5,975	4,716
Depreciation and amortization	360	595
Forgiveness of debt	0	(397)
Loss on sale of fixed assets	4	0
Changes in operating assets and liabilities:
Prepaid expenses and other current assets	(3,063)	2,122
Other receivables	14,881	(1,426)
Accounts payable and accrued expenses	(9,751)	1,501
Income taxes receivable	(312)	(2,655)
Unearned revenue	(168)	(212)
Deferred rent	(22)	(31)
Net cash used in operating activities	(13,009)	(19,507)
Cash Flows From Investing Activities
Maturity of certificates of deposit	0	1,183
Purchase of equipment	(35)	(281)
Proceeds on sale of equipment	22	0
Net cash (used in) provided by investing activities	(13)	902
Cash Flows From Financing Activities
Issuance of common stock, net of offering costs	63	43
Repurchase of common stock	237	0
Payments under capital lease obligations and principal payments on notes payable	(54)	(72)
Net cash used in financing activities	(228)	(29)
Net decrease in cash and cash equivalents	(13,250)	(18,634)
Cash and cash equivalents at beginning of period	131,490	195,620
Cash and cash equivalents at end of period	118,240	176,986
Supplemental disclosure of cash flows information:
Cash paid for interest	4	7
Cash paid for taxes	2	1,021
Noncash financing and investing activities:
Equipment acquired by capital lease	0	231
Forgiveness of debt	0	397
Purchased leasehold improvements and equipment in accounts payable	$ 18	$ 181

Description of Business (Notes)

Description of Business (Notes)	3 Months Ended
	Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business	D escription of Business On June 4, 1999, NewLink Genetics Corporation (NewLink) was incorporated as a Delaware corporation. NewLink was formed for the purpose of developing treatments for patients with cancer and other diseases. NewLink initiated operations in April 2000. NewLink and its subsidiaries (the Company) are devoting substantially all of their efforts toward research and development. The Company has never earned revenue from commercial sales of its drugs. The Company incurred a net loss of $20.9 million for the three months ended March 31, 2017 . The accompanying condensed consolidated financial statements as of March 31, 2017 and for the three months ended have been prepared assuming the Company will continue as a going concern. The Company successfully raised net proceeds of $37.6 million from its IPO, completed a follow-on offering of its common stock raising net proceeds of $49.0 million , and raised an additional $58.7 million in net proceeds from an at the market (ATM) offering completed in 2015. In connection with two license and collaboration agreements the Company entered into during 2014, the Company received a nonrefundable upfront cash payment of $150.0 million from Genentech Inc., a member of the Roche Group, or Genentech, in 2014, and a nonrefundable upfront cash payment of $30.0 million from Merck, Sharpe and Dohme Corp., or Merck, in 2014, as well as a milestone payment of $20.0 million from Merck in February 2015. The Company's cash and cash equivalents after these agreements and offerings are expected to be adequate to satisfy the Company's liquidity requirements through 2018. If available liquidity becomes insufficient to meet the Company’s operating obligations as they come due, the Company's plans include pursuing alternative funding arrangements and/or reducing expenditures as necessary to meet the Company’s cash requirements. However, there is no assurance that, if required, the Company will be able to raise additional capital or reduce discretionary spending to provide the required liquidity. Failure by the Company to successfully execute its plans or otherwise address its liquidity needs may have a material adverse effect on its business and financial position, and may materially affect the Company’s ability to continue as a going concern.

Basis of Presentation (Notes)

Basis of Presentation (Notes)	3 Months Ended
	Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared and presented by the Company in accordance with U.S. generally accepted accounting principles (U.S. GAAP) and the rules and regulations of the U.S. Securities and Exchange Commission (the SEC), and, in management’s opinion, reflect all adjustments necessary to present fairly the Company’s interim condensed financial information. Certain information and footnote disclosures normally included in the Company’s annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2016 , included in the Company’s Annual Report on Form 10-K. There were no significant changes in the Company’s accounting policies since the end of fiscal 2016 . The financial results for any interim period are not necessarily indicative of financial results for the full year.

Significant Accounting Policies

Significant Accounting Policies (Notes)	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Significant Accounting Policies	Significant Accounting Policies Use of Estimates The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Principles of Consolidation The condensed consolidated financial statements include the financial statements of NewLink and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Financial Instruments and Concentrations of Credit Risk Cash and cash equivalents, receivables, and accounts payable are recorded at cost, which approximates fair value based on the short-term nature of these financial instruments. The carrying value of notes payable and capital lease obligations was $463,000 and $517,000 as of March 31, 2017 and December 31, 2016 , respectively, which approximate fair value using Level 2 inputs (computed in accordance with ASC 820). The Company is unable to estimate the fair value of the royalty obligation based on future product sales, as the timing of payments, if any, is uncertain. Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents. Cash and cash equivalents are held by financial institutions and are federally insured up to certain limits. At times, the Company’s cash and cash equivalents balance exceeds the federally insured limits. To limit the credit risk, the Company invests its excess cash primarily in high-quality securities such as certificates of deposit and money market funds. Property and equipment Property and equipment are capitalized as the Company believes they have alternative future uses and are stated at cost, less accumulated depreciation of $6.1 million and $5.7 million as of March 31, 2017 and December 31, 2016 , respectively. Equipment under capital leases is stated at the present value of minimum lease payments. Depreciation on all property and equipment is calculated on the straight-line method over the shorter of the lease term or estimated useful life of the asset. Computer equipment has useful lives of three to five years, lab equipment has a useful life of five years and contract manufacturing organization equipment has a useful life of five years. Revenue Recognition The Company receives payments from government entities under its grants and contracts with the Department of Defense and the United States Department of Health and Human Services. These agreements provide the Company cost reimbursement plus a percentage for certain types of expenditures in return for research and development activities over a contractually defined period. Grant revenues are recognized in the period during which the related costs are incurred, provided that the conditions under which the costs submitted or to be submitted for reimbursement have been met and the Company has only perfunctory obligations outstanding. The Company had $9.1 million and $23.9 million of receivables from the government contracts recorded in other receivables and $7.5 million and $4.3 million of unbilled expenses relating to the government contracts recorded in prepaid expenses and other current assets on the balance sheet as of March 31, 2017 and December 31, 2016 , respectively. The Company had $6.1 million and $2.9 million of accrued expenses for subcontractor fees incurred under the government contracts as of March 31, 2017 and December 31, 2016 , respectively.

Long-Term Debt (Notes)

Long-Term Debt (Notes)	3 Months Ended
	Mar. 31, 2017
Debt Disclosure [Abstract]
Long-Term Debt	Long-Term Debt March 2010 City of Ames Forgivable Loan In March 2010, the Company entered into a $400,000 forgivable loan agreement with the City of Ames, Iowa and the Ames Chamber of Commerce, jointly, as lenders. The project provided the Company with financial assistance to construct new facilities within the Ames city limits. The project required the Company to create or retain at least 150 full-time positions located in Ames, Iowa by March 10, 2016. The agreement required the Company to enter into a five -year building lease with the option for extension for an additional five years of not less than 20,000 square feet within the corporate limits of the City of Ames by March 10, 2015, which requirement was met prior to the deadline of March 10, 2015. As of March 10, 2016, the Company had satisfactorily fulfilled all of the above terms of the loan agreement and the loan was forgiven. Accordingly, the entire outstanding loan amount of $397,000 was derecognized with a corresponding amount recorded in grant revenue for the three months ended March 31, 2016.

License and Research Collaborat

License and Research Collaboration Agreements (Notes)	3 Months Ended
	Mar. 31, 2017
Revenue Recognition [Abstract]
Licensing and Research Collaboration Agreements [Text Block]	License and Research Collaboration Agreements Genentech, a Member of the Roche Group In October 2014, the Company entered into an exclusive worldwide collaboration and license agreement with Genentech, or the Genentech Agreement, for the development and commercialization of navoximod (GDC-0919), one of the Company's clinical stage IDO pathway inhibitors. The parties also entered into a research collaboration for the discovery of next generation IDO and TDO pathway inhibitors to be developed and commercialized under this agreement. Under the terms of the Genentech Agreement, the Company received a nonrefundable upfront cash payment of $150.0 million from Genentech in 2014 and is eligible to receive additional payments of over $1.0 billion upon achieving certain navoximod and Next Generation Product Development regulatory development, international patent acceptance, country marketing approval, and sales-based milestones. The Company retains the right to exercise an option to co-promote navoximod and any subsequent products for the U.S. market and is also eligible to receive escalating double digit royalty payments on potential commercial sales of multiple products by Genentech. For the three months ended March 31, 2017 , the Company recognized license and collaboration revenue under the Genentech Agreement of $167,000 for providing an alliance manager. For the three months ended March 31, 2016 , the Company recognized license and collaboration revenue under the Genentech agreement of $807,000 , including $598,000 for amounts received as reimbursement for the Company's employees working on the project, $167,000 for providing an alliance manager, and $42,000 for participation in the joint research committee. In accordance with the Company’s continuing performance obligation, $223,000 of the $150.0 million upfront payment remains deferred as of March 31, 2017 and will be recognized in future periods. The upfront payment provides no general right of return for any non-contingent deliverable and no portion of any revenue recognized is refundable. Merck Sharp & Dohme Corp. In November 2014, the Company entered into a licensing and collaboration agreement with Merck, or the Merck Agreement, to develop, manufacture and commercialize rVSV-ZEBOV GP, an Ebola vaccine the Company licensed from the Public Health Agency of Canada, or PHAC. Under the terms of the Merck Agreement, the Company granted Merck an exclusive, royalty bearing license to rVSV-ZEBOV GP and related technology. Under the Merck Agreement, the Company received a $30.0 million non-refundable, upfront payment in December 2014, and a one-time $20.0 million non-refundable milestone payment in February 2015 upon the initiation of the pivotal clinical trial using the current rVSV-ZEBOV GP vaccine product as one arm of the trial. In addition, the Company can receive escalating royalties on potential commercial sales by Merck of the current product candidate ranging from single digit to double digits on the rVSV-ZEBOV GP license agreement product sales and escalating royalties on potential commercial sales by Merck of products other than current products within the Company’s patent rights ranging from low to high single digit, on increasing levels of annual net sales worldwide. Merck will lead the development of rVSV-ZEBOV GP and any other rVSV-based viral hemorrhagic fever vaccine product candidates in order to create a marketable product safe for human use. The Company completed all deliverables under the Merck Agreement in their entirety during the year ended December 31, 2016 . For the three months ended March 31, 2016 , the Company recognized license and collaboration revenues under the Merck Agreement of $561,000 , for the reimbursement of costs not covered under government contracts.

Common Stock Equity Incentive P

Common Stock Equity Incentive Plan (Notes)	3 Months Ended
	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Common Stock Equity Incentive Plan	Common Stock Equity Incentive Plan 2009 Equity Incentive Plan In April 2000, the stockholders approved the Company's 2000 Equity Incentive Plan, or the 2000 Plan, and in July 2009, the stockholders approved the Company's 2009 Equity Incentive Plan, or the 2009 Plan. Following the approval of the 2009 Plan, all options outstanding under the 2000 Plan are effectively included under the 2009 Plan. Under the provisions of the 2009 Plan, the Company may grant the following types of common stock awards: • Incentive Stock Options • Nonstatutory Stock Options • Restricted Stock Awards • Stock Appreciation Rights Awards under the 2009 Plan, as amended, may be made to officers, employees, members of the Board of Directors, advisors, and consultants to the Company. As of March 31, 2017 , there were 10,238,220 shares of common stock authorized for the 2009 Plan and 947,369 shares remained available for issuance. The following table summarizes the authorized increases of common stock under the 2009 Plan: Date Authorized Authorized Shares Added May 15, 2010 1,238,095 January 7, 2011 714,286 January 1, 2013 838,375 January 1, 2014 1,066,340 January 1, 2015 1,119,255 January 1, 2016 1,152,565 January 1, 2017 1,166,546 The increases in the authorized shares of common stock under the 2009 Plan in 2010 and 2011 were approved by the Company’s stockholders. The increases in the authorized shares of common stock under the 2009 Plan in 2012 through 2016 were made pursuant to an “evergreen provision,” in accordance with which, on January 1 of each year, from 2012 to (and including) 2019, a number of shares of common stock in an amount equal to 4% of the total number of shares of common stock outstanding on December 31 of the preceding calendar year, or such lesser amount of shares (or no shares) approved by the Company's Board of Directors, was added or will be added to the shares reserved under the 2009 Plan. 2010 Non-Employee Directors' Stock Award Plan Under the terms of the Company’s 2010 Non-Employee Directors’ Stock Award Plan, or the Directors’ Plan, which became effective on November 10, 2011, 238,095 shares of common stock were reserved for future issuance. On May 9, 2013 , an additional 161,905 shares of common stock were added to the shares reserved for future issuance under the Directors' Plan. As of March 31, 2017 , no shares remained available for issuance under the Directors' Plan. 2010 Employee Stock Purchase Plan Under the terms of the Company’s 2010 Employee Stock Purchase Plan, or the 2010 Purchase Plan, which became effective on November 10, 2011, 214,285 shares of common stock were reserved for future issuance. On May 9, 2013 , an additional 185,715 shares of common stock were added to the shares reserved for future issuance under the 2010 Purchase Plan. As of March 31, 2017 , 172,783 shares remained available for issuance under the 2010 Purchase Plan. Share-based Compensation Share-based compensation expense for the three months ended March 31, 2017 and 2016 was $5.9 million and $4.7 million , respectively, and is allocated between research and development and general and administrative expenses within the condensed consolidated statements of operations. As of March 31, 2017 , the total compensation cost related to nonvested option awards not yet recognized was $30.2 million and the weighted-average period over which it is expected to be recognized is 2.8 years. Stock Options and Performance Stock Options The following table summarizes the stock option activity, including options with performance conditions, for the three months ended March 31, 2017 : Number of options Weighted average exercise price Weighted average remaining contractual term (years) Outstanding at beginning of period 6,278,542 $ 14.93 5.8 Options granted 1,286,283 10.89 Options exercised (8,741 ) 7.29 Options forfeited (11,470 ) 27.44 Options expired (10,919 ) 43.19 Outstanding at end of period 7,533,695 $ 14.19 6.3 Options exercisable at end of period 4,950,721 $ 11.76 4.8 The Company estimates the fair value of each stock option grant on the date of grant using a Black-Scholes option pricing model. For stock option grants issued with a market condition, the Company used a Monte Carlo simulation valuation model to determine the grant date fair value. The following table summarizes the range of assumptions used to estimate the fair value of stock options granted, including those options granted with a market condition, during the three months ended March 31, 2017 : Risk-free interest rate 2.0% to 2.2% Expected dividend yield —% Expected volatility 68.9% to 69.2% Expected term (in years) 6.9 to 7.8 Weighted-average grant-date fair value per share $7.24 The intrinsic value of options exercised during the three months ended March 31, 2017 was $78,546 . The fair value of awards vested during the three months ended March 31, 2017 was $4.8 million . During the three months ended March 31, 2017 , the Company’s Board of Directors approved and granted 388,144 shares of compensation and equity awards to certain executives with either market or performance conditions. The compensation and equity awards had a weighted average grant date fair value per share of $ 6.73 . The compensation and equity awards will vest upon the achievement of certain performance conditions. During the three months ended March 31, 2017 , certain conditions were met which resulted in the vesting of 194,070 shares and the recognition of $1.2 million in stock compensation expense. Restricted Stock and Performance Restricted Stock Restricted stock is common stock that is subject to restrictions, including risks of forfeiture, determined by the plan committee of the Board of Directors in its sole discretion, for as long as such common stock remains subject to any such restrictions. A holder of restricted stock has all rights of a stockholder with respect to such stock, including the right to vote and to receive dividends thereon, except as otherwise provided in the award agreement relating to such award. Restricted stock awards are classified as equity within the consolidated balance sheets. The fair value of each restricted stock grant is estimated on the date of grant using the closing price of the Company's common stock on the NASDAQ Stock Market on the date of grant. A summary of the Company's unvested restricted stock, including restricted stock with performance conditions, at March 31, 2017 and changes during the three months ended March 31, 2017 are as follows: Number of restricted stock shares Weighted average grant date fair value Unvested at beginning of period 288,964 $ 34.94 Granted — — Vested (69,439 ) 34.87 Forfeited/cancelled — — Unvested at end of period 219,525 $ 34.96 As of March 31, 2017 , the total remaining unrecognized compensation cost related to restricted stock was approximately $6.2 million and is expected to be recognized over a weighted-average period of 2.2 years . As of March 31, 2017 , there remains approximately $680,000 of unrecognized compensation cost related to the issuance of performance restricted stock. The fair value of awards vested during the three months ended March 31, 2017 was $740,000 . The Company does not have a formal policy regarding the source of shares issued upon exercise of stock options or issuance of restricted stock. The Company expects shares issued to be issued from treasury shares or new shares.

Income Taxes (Notes)

Income Taxes (Notes)	3 Months Ended
	Mar. 31, 2017
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes For the three months ended March 31, 2017 , the Company recorded an income tax benefit of $310,000 . For the three months ended March 31, 2016 , the Company recorded an income tax benefit of $1.6 million . The income tax benefit for the three months ended March 31, 2017 differs from the amount that would be expected after applying the statutory U.S. federal income tax rate primarily due to the potential to carry back losses to 2015 and the net loss generated by NewLink's foreign subsidiary. Income tax benefit for the three months ended March 31, 2016 differs from the amount that would be expected after applying the statutory U.S. federal income tax rate primarily due to the ability to carry back losses to 2014 and the net loss generated by the NewLink's foreign subsidiary. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected taxable income, and tax planning strategies in making this assessment. Valuation allowances have been established for the entire amount of the net deferred tax assets as of March 31, 2017 and December 31, 2016 , respectively, due to the uncertainty of future recoverability. The Company has a reserve for uncertain tax positions related to state tax matters of $843,000 as of March 31, 2017 recorded within Accrued Expenses in the condensed consolidated balance sheet, which includes the accrual of interest and penalties. The Company does not expect the amount to change significantly within the next 12 months.

Net Loss per Common Share (Note

Net Loss per Common Share (Notes)	3 Months Ended
	Mar. 31, 2017
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Earnings Per Share	Net Loss per Common Share Basic loss per share is based upon the weighted-average number of common shares outstanding during the period, without consideration of common stock equivalents. Diluted loss per share is based upon the weighted-average number of common shares outstanding during the period plus additional weighted-average potentially dilutive common stock equivalents during the period when the effect is dilutive. The following table presents the computation of basic and diluted loss per common share (in thousands, except share and per share data): Three Months Ended March 31, 2017 2016 Loss attributable to common stockholders $ (20,913 ) $ (23,720 ) Basic and diluted weighted-average shares outstanding 29,213,488 28,856,944 Basic and diluted loss per share $ (0.72 ) $ (0.82 ) All common stock equivalents are excluded from the computation of diluted loss per share during periods in which losses are reported since the result would be anti-dilutive. As of March 31, 2017 , anti-dilutive stock options and restricted stock awards excluded from our calculation totaled 7,533,695 and 219,525 , respectively. For the three months ended March 31, 2016 , anti-dilutive stock options and restricted stock awards excluded from our calculation totaled 6,156,435 and 312,089 , respectively.

Restructuring Charges (Notes)

Restructuring Charges (Notes)	3 Months Ended
	Mar. 31, 2017
Restructuring and Related Activities [Abstract]
Restructuring and Related Activities Disclosure [Text Block]	Restructuring Charges The Company records liabilities for costs associated with exit or disposal activities in the period in which the liability is incurred. Employee severance costs are accrued when the restructuring actions are probable and estimable. Costs for one-time termination benefits in which the employee is required to render service until termination in order to receive the benefits are recognized ratably over the future service period. The Company also records costs incurred with contract terminations associated with restructuring activities. In May 2016, the Company announced that its Phase 3 clinical trial Immunotherapy for Pancreatic RESectable cancer Study, or IMPRESS, of algenpantucel-L for patients with resected pancreatic cancer did not achieve its primary endpoint and in order to reduce costs associated with algenpantucel-L and the HyperAcute® Cellular Immunotherapy platform technology, the Company's management adopted a restructuring plan in May 2016 which included a reduction in the Company's workforce; the exit or reduction of certain leased facilities; and the renegotiation or termination of contracts with certain third parties. As a result of the restructuring, the Company also impaired fixed assets which management determined had no or limited future use. The fair value of impaired fixed assets was determined based on management’s estimate of market resale value. Restructuring charges recorded during 2016 were $11.6 million , which included an impairment charge of $4.0 million . No restructuring charges were recorded during the three months ended March 31, 2017 . The following table shows the amount accrued for restructuring activities which is recorded within Accrued Expenses in the condensed consolidated balance sheet: Employee Severance Cost Contract Termination Cost Total Balance as of December 31, 2016 $ 42 $ — $ 42 Expensed — — — Cash Payments 42 — 42 Balance as of March 31, 2017 $ — $ — $ —

Commitments and Contingencies (

Commitments and Contingencies (Notes)	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies Disclosure	Commitments and Contingencies From time to time, claims are asserted against the Company arising in the ordinary course of business. In the opinion of management, liabilities, if any, arising from existing claims are not expected to have a material effect on the Company's earnings, financial position, or liquidity. On or about May 12, 2016, Trevor Abramson filed a putative securities class action lawsuit in the United States District Court for the Southern District of New York, or the Court, captioned Abramson v. NewLink Genetics Corp., et al., Case 1:16-cv-3545, or the Action. Subsequently, the Court appointed Michael and Kelly Nguyen as lead plaintiffs and approved their selection of Kahn, Swick & Foti, LLC as lead counsel in the Action. On October 31, 2016, the lead plaintiffs filed an amended complaint which asserts claims under the federal securities laws against the Company, the Company’s Chief Executive Officer Charles J. Link, Jr., and the Company’s Chief Medical Officer and President Nicholas Vahanian, or collectively, the Defendants. The amended complaint alleges the Defendants made material false and/or misleading statements that caused losses to the Company’s investors. In particular, the lead plaintiffs allege that the Defendants made material misstatements or omissions related to the Phase II and III trials and efficacy of the product candidate algenpantucel-L. The lead plaintiffs do not quantify any alleged damages in the amended complaint but, in addition to attorneys’ fees and costs, they seek to recover damages on behalf of themselves and other persons who purchased or otherwise acquired the Company’s stock during the putative class period of September 17, 2013 through May 9, 2016, inclusive, at allegedly inflated prices and purportedly suffered financial harm as a result. On April 27, 2017, the Court granted the parties’ request for leave to brief a motion to dismiss the amended complaint, and ordered the parties to file a stipulation and proposed order setting forth a schedule for the briefing of that motion. The Company disputes the claims in the Action and intends to defend against them vigorously. On or about April 26, 2017, Ronald Morrow filed a shareholder derivative lawsuit on behalf of the Company in the United States District Court for the Southern District of New York, or the Court, against the Company’s Chief Executive Officer Charles J. Link, Jr., the Company’s Chief Medical Officer and President Nicholas Vahanian, and Company directors Thomas A. Raffin, Joseph Saluri, Ernest J. Talarico, III, Paul R. Edick, Paolo Pucci, and Lota S. Zoth, or collectively, the Morrow Defendants, captioned Morrow v. Link., et al., Case 1:17-cv-03039, or the Morrow Action. The complaint alleges that the Morrow Defendants caused the Company to issue false statements in its 2016 proxy statement regarding risk management and compensation matters in violation of federal securities law. The complaint also asserts state law claims against the Morrow Defendants for breaches of fiduciary duties, unjust enrichment, abuse of control, insider trading, gross mismanagement, and corporate waste, alleging that the Morrow Defendants made material misstatements or omissions related to the Phase II and III trials and efficacy of the product candidate algenpantucel-L, awarded themselves excessive compensation, engaged in illegal insider trading, and grossly mismanaged the Company. The plaintiff does not quantify any alleged damages in the complaint but seeks restitution for damages to the Company, attorneys’ fees, costs, and expenses, as well as an order directing that proposals for strengthening board oversight be put to a vote of the Company’s shareholders. The language for such proposals is not specified in the complaint. The plaintiff also contemporaneously filed a statement of relatedness, informing the Court that the Morrow Action is related to Abramson v. NewLink Genetics Corp., et al., Case 1:16-cv-3545. The Company disputes the claims in the Morrow Action and intends to defend against them vigorously.

Significant Accounting Polici17

Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Use of Estimates	Use of Estimates The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Principles of Consolidation	Principles of Consolidation The condensed consolidated financial statements include the financial statements of NewLink and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.
Financial Instruments and Concentrations of Credit Risk	Financial Instruments and Concentrations of Credit Risk Cash and cash equivalents, receivables, and accounts payable are recorded at cost, which approximates fair value based on the short-term nature of these financial instruments. The carrying value of notes payable and capital lease obligations was $463,000 and $517,000 as of March 31, 2017 and December 31, 2016 , respectively, which approximate fair value using Level 2 inputs (computed in accordance with ASC 820). The Company is unable to estimate the fair value of the royalty obligation based on future product sales, as the timing of payments, if any, is uncertain. Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents. Cash and cash equivalents are held by financial institutions and are federally insured up to certain limits. At times, the Company’s cash and cash equivalents balance exceeds the federally insured limits. To limit the credit risk, the Company invests its excess cash primarily in high-quality securities such as certificates of deposit and money market funds.
Property, Plant and Equipment, Policy	Property and equipment Property and equipment are capitalized as the Company believes they have alternative future uses and are stated at cost, less accumulated depreciation of $6.1 million and $5.7 million as of March 31, 2017 and December 31, 2016 , respectively. Equipment under capital leases is stated at the present value of minimum lease payments. Depreciation on all property and equipment is calculated on the straight-line method over the shorter of the lease term or estimated useful life of the asset. Computer equipment has useful lives of three to five years, lab equipment has a useful life of five years and contract manufacturing organization equipment has a useful life of five years.
Revenue Recognition	Revenue Recognition The Company receives payments from government entities under its grants and contracts with the Department of Defense and the United States Department of Health and Human Services. These agreements provide the Company cost reimbursement plus a percentage for certain types of expenditures in return for research and development activities over a contractually defined period. Grant revenues are recognized in the period during which the related costs are incurred, provided that the conditions under which the costs submitted or to be submitted for reimbursement have been met and the Company has only perfunctory obligations outstanding. The Company had $9.1 million and $23.9 million of receivables from the government contracts recorded in other receivables and $7.5 million and $4.3 million of unbilled expenses relating to the government contracts recorded in prepaid expenses and other current assets on the balance sheet as of March 31, 2017 and December 31, 2016 , respectively. The Company had $6.1 million and $2.9 million of accrued expenses for subcontractor fees incurred under the government contracts as of March 31, 2017 and December 31, 2016 , respectively.

Common Stock Equity Incentive18

Common Stock Equity Incentive Plan (Tables)	3 Months Ended
	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Authorized Increases of Common Stock under the 2009 Plan	The following table summarizes the authorized increases of common stock under the 2009 Plan: Date Authorized Authorized Shares Added May 15, 2010 1,238,095 January 7, 2011 714,286 January 1, 2013 838,375 January 1, 2014 1,066,340 January 1, 2015 1,119,255 January 1, 2016 1,152,565 January 1, 2017 1,166,546
Stock Option Activity	The following table summarizes the stock option activity, including options with performance conditions, for the three months ended March 31, 2017 : Number of options Weighted average exercise price Weighted average remaining contractual term (years) Outstanding at beginning of period 6,278,542 $ 14.93 5.8 Options granted 1,286,283 10.89 Options exercised (8,741 ) 7.29 Options forfeited (11,470 ) 27.44 Options expired (10,919 ) 43.19 Outstanding at end of period 7,533,695 $ 14.19 6.3 Options exercisable at end of period 4,950,721 $ 11.76 4.8
Assumptions Used in Black-Scholes Pricing Model for New Grants	The following table summarizes the range of assumptions used to estimate the fair value of stock options granted, including those options granted with a market condition, during the three months ended March 31, 2017 : Risk-free interest rate 2.0% to 2.2% Expected dividend yield —% Expected volatility 68.9% to 69.2% Expected term (in years) 6.9 to 7.8 Weighted-average grant-date fair value per share $7.24
Restricted Stock Activity	A summary of the Company's unvested restricted stock, including restricted stock with performance conditions, at March 31, 2017 and changes during the three months ended March 31, 2017 are as follows: Number of restricted stock shares Weighted average grant date fair value Unvested at beginning of period 288,964 $ 34.94 Granted — — Vested (69,439 ) 34.87 Forfeited/cancelled — — Unvested at end of period 219,525 $ 34.96

Net Loss per Common Share (Tabl

Net Loss per Common Share (Tables)	3 Months Ended
	Mar. 31, 2017
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Basic and Diluted Net Loss per Common Share	The following table presents the computation of basic and diluted loss per common share (in thousands, except share and per share data): Three Months Ended March 31, 2017 2016 Loss attributable to common stockholders $ (20,913 ) $ (23,720 ) Basic and diluted weighted-average shares outstanding 29,213,488 28,856,944 Basic and diluted loss per share $ (0.72 ) $ (0.82 )

Restructuring Charges (Tables)

Restructuring Charges (Tables)	3 Months Ended
	Mar. 31, 2017
Restructuring and Related Activities [Abstract]
Restructuring and Related Costs [Table Text Block]	The following table shows the amount accrued for restructuring activities which is recorded within Accrued Expenses in the condensed consolidated balance sheet: Employee Severance Cost Contract Termination Cost Total Balance as of December 31, 2016 $ 42 $ — $ 42 Expensed — — — Cash Payments 42 — 42 Balance as of March 31, 2017 $ — $ — $ —

Description of Business (Detail

Description of Business (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2014	Dec. 31, 2015	Feb. 04, 2013	Nov. 16, 2011
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net loss	$ (20,913)	$ (23,720)
Financings
Genentech Upfront Payments			$ 150,000
Merck Upfront Payments			$ 30,000
Merck One-Time Milestones		$ 20,000
Initial Public Offering
Financings
FInancing proceeds						$ 37,600
Follow-on Offering
Financings
FInancing proceeds					$ 49,000
ATM Offering
Financings
FInancing proceeds				$ 58,700

Significant Accounting Polici22

Significant Accounting Policies Accounting Policies (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Accounting Policies [Abstract]
Fair Value Disclosure of notes payable and capital lease obligations	$ 463,000	$ 517,000
Accumulated Depreciation, Property, Plant, and Equipment	6,100,000	5,700,000
Unbilled Contracts Receivable	7,500,000	4,300,000
Government Contract Receivable	9,100,000	23,900,000
Accrued Expenses for subcontractor fees incurred under government contracts	$ 6,100,000	$ 2,900,000

Long-Term Debt (Details)

Long-Term Debt (Details)	3 Months Ended
	Mar. 31, 2016USD ($)	Mar. 31, 2017USD ($)
Debt Instrument
Extinguishment of Debt, Amount	$ 397,000
Amount | City of Ames Forgivable Loan 2010
Debt Instrument
Original Available Balance		$ 400,000
Jobs by March 10, 2016		150
Lease square feet		20,000

License and Research Collabor24

License and Research Collaboration Agreements (Details) - USD ($)	3 Months Ended			12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2014	Dec. 31, 2014
Deferred Revenue Arrangement [Line Items]
Genentech Upfront Payments			$ 150,000,000
Merck One-Time Milestones		$ 20,000,000
Merck Upfront Payments			$ 30,000,000
Genentech [Member]
Deferred Revenue Arrangement [Line Items]
Genentech Upfront Payments				$ 150,000,000
Genentech Potential Milestones	$ 1,000,000,000
Genentech Revenue Recognized	167,000	807,000
Reimbursement for direct labor		598,000
Alliance manager		167,000
Participation in JRC		42,000
Deferred Revenue	$ 223,000
Merck [Member]
Deferred Revenue Arrangement [Line Items]
Merck One-Time Milestones		20,000,000
Merck Upfront Payments				$ 30,000,000
Merck Revenue Recognized		$ 561,000

Common Stock Equity Incentive25

Common Stock Equity Incentive Plan (Details)	3 Months Ended		6 Months Ended	12 Months Ended
	Mar. 31, 2017USD ($)$ / sharesshares	Mar. 31, 2016USD ($)shares	Jun. 30, 2013shares	Dec. 31, 2016$ / sharesshares	Dec. 31, 2015shares	Dec. 31, 2014shares	Dec. 31, 2013shares	Dec. 31, 2011shares	Dec. 31, 2010shares
Share-based Compensation Arrangement by Share-based Payment Award
Share-based Compensation Expense | $	$ 5,900,000	$ 4,700,000
Stock Option Activity
Options exercised	78,179
2009 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award
Evergreen Increase Percentage					4.00%
Number of Shares Authorized	10,238,220
Number of Shares Available for Grant	947,369
Increase in Number of Shares Authorized	1,166,546	1,152,565			1,119,255	1,066,340	838,375	714,286	1,238,095
2010 Non-Employee Directors' Stock Option Plan
Share-based Compensation Arrangement by Share-based Payment Award
Number of Shares Authorized								238,095
Number of Shares Available for Grant	0
Increase in Number of Shares Authorized			161,905
2010 Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award
Number of Shares Authorized								214,285
Number of Shares Available for Grant	172,783
Increase in Number of Shares Authorized			185,715
Stock Option
Share-based Compensation Arrangement by Share-based Payment Award
Total Compensation Cost Related to Non-vested Option Awards | $	$ 30,200,000
Weighted-average period over which nonvested stock option compensation expenses is expected to be recognized	2.8
Assumptions Used in Black Scholes Pricing Model for New Grants
Risk-free interest rate, minimum	2.00%
Risk free interest rate, maximum	2.20%
Expected dividend rate	0.00%
Volatility rate, minimum	68.90%
Volatility rate, maximum	69.20%
Weighted average grant-date fair value per share | $ / shares	$ 7.24
Stock Option Activity
Outstanding at beginning of period	6,278,542
Outstanding, weighted average exercise price at beginning of period | $ / shares	$ 14.93
Options granted	1,286,283
Granted, weighted average exercise price | $ / shares	$ 10.89
Options exercised	8,741
Exercised, weighted average exercise price | $ / shares	$ 7.29
Options forfeited	11,470
Forfeitured, weighted average exercise price | $ / shares	$ 27.44
Options expired	10,919
Expired, weighted average exercise price | $ / shares	$ 43.19
Outstanding at end of period	7,533,695			6,278,542
Outstanding, weighted average exercise price at end of period | $ / shares	$ 14.19			$ 14.93
Options exercisable at end of period	4,950,721
Outstanding, weighted average remaining contractual term, in years	6 years 3 months 18 days			5 years 9 months 18 days
Exercisable, weighted average exercise price | $ / shares	$ 11.76
Exercisable, weighted average remaining contractual term, in years	4 years 9 months 29 days
Intrinsic Value of Options Exercised | $	$ 78,546
Fair Value of Awards Vested | $	$ 4,800,000
Performance Stock
Assumptions Used in Black Scholes Pricing Model for New Grants
Weighted average grant-date fair value per share | $ / shares	$ 6.73
Stock Option Activity
Options granted	388,144
Options exercisable at end of period	194,070
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | $	$ 1,200,000
Restricted Stock Activity
Unrecognized compensation cost | $	680,000
Fair value of restricted stock awards vested | $	$ 740,000
Restricted Stock
Restricted Stock Activity
Restricted stock unvested at beginning of period	288,964
Weighted average grant date fair value at beginning of period | $ / shares	$ 34.94
Restricted stock granted	0
Granted, weighted average grant date fair value | $ / shares	$ 0
Restricted stock vested	69,439
Vested, weighted average grant date fair value | $ / shares	$ 34.87
Restricted stock forfeited / cancelled	0
Forfeited/cancelled, weighted average grant date fair value | $ / shares	$ 0
Restricted stock unvested at end of period	219,525			288,964
Weighted average grant date fair value at end of period | $ / shares	$ 34.96			$ 34.94
Weighted average vesting period for non-vested option awards, in years	2 years 2 months 5 days
Unrecognized compensation cost | $	$ 6,200,000
Minimum | Stock Option
Assumptions Used in Black Scholes Pricing Model for New Grants
Expected Term	6 years 10 months 24 days
Maximum | Stock Option
Assumptions Used in Black Scholes Pricing Model for New Grants
Expected Term	7 years 9 months 18 days

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Operating Loss Carryforwards [Line Items]
Liability for Uncertain Tax Positions, Current	$ 843,000
Income tax benefit	$ (310,000)	$ (1,634,000)

Net Loss per Common Share (Net

Net Loss per Common Share (Net Loss Per Share Computation) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Earnings Per Share [Abstract]
Net loss	$ (20,913)	$ (23,720)
Basic and diluted average shares outstanding	29,213,488	28,856,944
Basic and diluted loss per share	$ (0.72)	$ (0.82)

Net Loss per Common Share (Anti

Net Loss per Common Share (Antidilutive Securities) (Details) - shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Stock Option
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	7,533,695	6,156,435
Restricted Stock Units (RSUs)[Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	219,525	312,089

Restructuring Charges (Details)

Restructuring Charges (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Restructuring Charges
Restructuring Charges	$ 0	$ 11,600,000
Asset Impairment Charges		4,000,000
Employee Severance
Restructuring Charges
Balance as of December 31, 2016	42
Expensed	0
Cash Payments	42
Balance as of March 31, 2017	0	42
Contract Termination
Restructuring Charges
Balance as of December 31, 2016	0
Expensed	0
Cash Payments	0
Balance as of March 31, 2017	0	0
Restructuring Charges
Restructuring Charges
Balance as of December 31, 2016	42
Expensed	0
Cash Payments	42
Balance as of March 31, 2017	$ 0	$ 42