Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Mar. 31, 2019 | Apr. 28, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | ENTA | |
Entity Registrant Name | ENANTA PHARMACEUTICALS INC | |
Entity Central Index Key | 0001177648 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 19,669,726 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Sep. 30, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 106,030 | $ 63,902 |
Short-term marketable securities | 264,127 | 244,828 |
Accounts receivable | 39,631 | 67,205 |
Prepaid expenses and other current assets | 14,052 | 4,454 |
Total current assets | 423,840 | 380,389 |
Long-term marketable securities | 16,510 | 16,389 |
Property and equipment, net | 11,476 | 8,374 |
Deferred tax assets | 9,052 | 8,375 |
Restricted cash | 608 | 608 |
Other long-term assets | 92 | 92 |
Total assets | 461,578 | 414,227 |
Current liabilities: | ||
Accounts payable | 8,884 | 4,745 |
Accrued expenses and other current liabilities | 11,607 | 9,892 |
Income taxes payable | 1,388 | |
Total current liabilities | 20,491 | 16,025 |
Series 1 nonconvertible preferred stock | 1,628 | 1,628 |
Other long-term liabilities | 3,249 | 2,895 |
Total liabilities | 25,368 | 20,548 |
Commitments and contingencies (Note 11) | ||
Stockholders' equity: | ||
Common stock; $0.01 par value per share, 100,000 shares authorized; 19,669 and 19,395 shares issued and outstanding at March 31, 2019 and September 30, 2018, respectively | 197 | 194 |
Additional paid-in capital | 288,512 | 276,526 |
Accumulated other comprehensive loss | (12) | (398) |
Retained earnings | 147,513 | 117,357 |
Total stockholders' equity | 436,210 | 393,679 |
Total liabilities and stockholders' equity | $ 461,578 | $ 414,227 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2019 | Sep. 30, 2018 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 19,669,000 | 19,395,000 |
Common stock, shares outstanding | 19,669,000 | 19,395,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue | ||||
Total revenue | $ 39,631 | $ 44,049 | $ 109,517 | $ 82,158 |
Operating expenses: | ||||
Research and development | 34,155 | 21,484 | 69,033 | 39,446 |
General and administrative | 6,780 | 5,706 | 13,932 | 11,476 |
Total operating expenses | 40,935 | 27,190 | 82,965 | 50,922 |
Income (loss) from operations | (1,304) | 16,859 | 26,552 | 31,236 |
Other income, net | 2,245 | 1,066 | 4,130 | 2,026 |
Income before income taxes | 941 | 17,925 | 30,682 | 33,262 |
Income tax (expense) benefit | 3,204 | (5,370) | (526) | (9,014) |
Net income | $ 4,145 | $ 12,555 | $ 30,156 | $ 24,248 |
Net income per share: | ||||
Basic | $ 0.21 | $ 0.65 | $ 1.55 | $ 1.27 |
Diluted | $ 0.20 | $ 0.61 | $ 1.44 | $ 1.20 |
Weighted average shares outstanding: | ||||
Basic | 19,549 | 19,206 | 19,487 | 19,167 |
Diluted | 21,084 | 20,601 | 20,946 | 20,256 |
Royalties [Member] | ||||
Revenue | ||||
Total revenue | $ 39,631 | $ 44,049 | $ 109,517 | $ 67,158 |
Milestone [Member] | ||||
Revenue | ||||
Total revenue | $ 15,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 4,145 | $ 12,555 | $ 30,156 | $ 24,248 |
Other comprehensive income (loss): | ||||
Net unrealized gains (losses) on marketable securities, net of tax of $78, ($128), $123 and ($235) | 245 | (336) | 386 | (682) |
Total other comprehensive income (loss) | 245 | (336) | 386 | (682) |
Comprehensive income | $ 4,390 | $ 12,219 | $ 30,542 | $ 23,566 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net unrealized gains (losses) on marketable securities, tax | $ 78 | $ (128) | $ 123 | $ (235) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Retained Earnings [Member] |
Beginning Balance at Sep. 30, 2017 | $ 301,676 | $ 191 | $ 256,241 | $ (112) | $ 45,356 |
Beginning Balance, Shares at Sep. 30, 2017 | 19,120 | ||||
Exercise of stock options and warrants | 436 | 436 | |||
Exercise of stock options and warrants, Shares | 30 | ||||
Stock-based compensation expense | 4,120 | 4,120 | |||
Other comprehensive income (loss) | (346) | (346) | |||
Net income | 11,693 | 11,693 | |||
Ending Balance at Dec. 31, 2017 | 317,579 | $ 191 | 260,752 | (458) | 57,094 |
Ending Balance, Shares at Dec. 31, 2017 | 19,150 | ||||
Beginning Balance at Sep. 30, 2017 | 301,676 | $ 191 | 256,241 | (112) | 45,356 |
Beginning Balance, Shares at Sep. 30, 2017 | 19,120 | ||||
Other comprehensive income (loss) | (682) | ||||
Net income | 24,248 | ||||
Ending Balance at Mar. 31, 2018 | 333,402 | $ 193 | 264,354 | (794) | 69,649 |
Ending Balance, Shares at Mar. 31, 2018 | 19,260 | ||||
Cumulative effect adjustment for adoption of new accounting guidance | (45) | 45 | |||
Beginning Balance at Dec. 31, 2017 | 317,579 | $ 191 | 260,752 | (458) | 57,094 |
Beginning Balance, Shares at Dec. 31, 2017 | 19,150 | ||||
Exercise of stock options | 1,770 | $ 1 | 1,769 | ||
Exercise of stock options, Shares | 65 | ||||
Vesting of restricted stock units, net of withholding | (1,756) | $ 1 | (1,757) | ||
Vesting of restricted stock units, net of withholding, Shares | 45 | ||||
Stock-based compensation expense | 3,590 | 3,590 | |||
Other comprehensive income (loss) | (336) | (336) | |||
Net income | 12,555 | 12,555 | |||
Ending Balance at Mar. 31, 2018 | 333,402 | $ 193 | 264,354 | (794) | 69,649 |
Ending Balance, Shares at Mar. 31, 2018 | 19,260 | ||||
Beginning Balance at Sep. 30, 2018 | 393,679 | $ 194 | 276,526 | (398) | 117,357 |
Beginning Balance, Shares at Sep. 30, 2018 | 19,395 | ||||
Exercise of stock options | 1,161 | 1,161 | |||
Exercise of stock options, Shares | 40 | ||||
Stock-based compensation expense | 5,843 | 5,843 | |||
Other comprehensive income (loss) | 141 | 141 | |||
Net income | 26,011 | 26,011 | |||
Ending Balance at Dec. 31, 2018 | 426,835 | $ 194 | 283,530 | (257) | 143,368 |
Ending Balance, Shares at Dec. 31, 2018 | 19,435 | ||||
Beginning Balance at Sep. 30, 2018 | $ 393,679 | $ 194 | 276,526 | (398) | 117,357 |
Beginning Balance, Shares at Sep. 30, 2018 | 19,395 | ||||
Exercise of stock options, Shares | 197 | ||||
Vesting of restricted stock units, net of withholding, Shares | 77 | ||||
Other comprehensive income (loss) | $ 386 | ||||
Net income | 30,156 | ||||
Ending Balance at Mar. 31, 2019 | 436,210 | $ 197 | 288,512 | (12) | 147,513 |
Ending Balance, Shares at Mar. 31, 2019 | 19,669 | ||||
Beginning Balance at Dec. 31, 2018 | 426,835 | $ 194 | 283,530 | (257) | 143,368 |
Beginning Balance, Shares at Dec. 31, 2018 | 19,435 | ||||
Exercise of stock options | 4,466 | $ 2 | 4,464 | ||
Exercise of stock options, Shares | 157 | ||||
Vesting of restricted stock units, net of withholding | (4,188) | $ 1 | (4,189) | ||
Vesting of restricted stock units, net of withholding, Shares | 77 | ||||
Stock-based compensation expense | 4,707 | 4,707 | |||
Other comprehensive income (loss) | 245 | 245 | |||
Net income | 4,145 | 4,145 | |||
Ending Balance at Mar. 31, 2019 | $ 436,210 | $ 197 | $ 288,512 | $ (12) | $ 147,513 |
Ending Balance, Shares at Mar. 31, 2019 | 19,669 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities | ||
Net income | $ 30,156 | $ 24,248 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Stock-based compensation expense | 10,550 | 7,710 |
Depreciation and amortization expense | 1,482 | 1,200 |
Deferred income taxes | (800) | 2,791 |
Premium paid on marketable securities | (1) | (243) |
Amortization of (accretion of) premium (discount) on marketable securities | (2,213) | 110 |
Change in fair value of warrant liability and Series 1 nonconvertible preferred stock | (41) | |
Other non-cash items | 37 | (84) |
Change in operating assets and liabilities: | ||
Accounts receivable | 27,574 | (33,435) |
Prepaid expenses and other current assets | (9,598) | (1,369) |
Accounts payable | 2,886 | 565 |
Accrued expenses | 1,259 | (939) |
Income taxes payable | (1,388) | (3,918) |
Other long-term liabilities | 396 | 236 |
Net cash provided by (used in) operating activities | 60,340 | (3,169) |
Cash flows from investing activities | ||
Purchase of marketable securities | (271,712) | (99,721) |
Proceeds from maturities and sale of marketable securities | 254,994 | 104,986 |
Purchase of property and equipment | (2,891) | (1,256) |
Net cash provided by (used in) investing activities | (19,609) | 4,009 |
Cash flows from financing activities | ||
Proceeds from exercise of stock options and warrants | 5,627 | 2,207 |
Payments for settlement of share-based awards | (4,188) | (1,757) |
Payments of capital lease obligations | (42) | (39) |
Net cash provided by financing activities | 1,397 | 411 |
Net increase in cash, cash equivalents and restricted cash | 42,128 | 1,251 |
Cash, cash equivalents and restricted cash at beginning of period | 64,510 | 66,283 |
Cash, cash equivalents and restricted cash at end of period | 106,638 | 67,534 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | 9,955 | 9,883 |
Supplemental disclosure of non-cash investing information: | ||
Purchases of fixed assets included in accounts payable and accrued expenses | $ 1,598 | $ 111 |
Nature of the Business and Basi
Nature of the Business and Basis of Presentation | 6 Months Ended |
Mar. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Nature of the Business and Basis of Presentation | 1. Nature of the Business and Basis of Presentation Enanta Pharmaceuticals, Inc. (the “Company”), incorporated in Delaware in 1995, is a biotechnology company that uses its robust, chemistry-driven approach and drug discovery capabilities to create small molecule drugs primarily for the treatment of viral infections and liver diseases. The Company discovered glecaprevir, the second protease inhibitor discovered and developed through its collaboration with AbbVie, which is marketed as part of AbbVie’s direct-acting antiviral (DAA) regimen under the tradenames MAVYRET™ (U.S.) or MAVIRET™ (ex-U.S.) (glecaprevir/pibrentasvir) for the treatment of chronic hepatitis C virus, or HCV. The other protease inhibitor under its HCV collaboration, which is part of AbbVie’s initial DAA regimens for the treatment of chronic HCV, is currently marketed outside the U.S. under the tradename VIEKIRAX ® (paritaprevir/ritonavir/ombitasvir). , which are currently focused on the following disease targets The Company is subject to many of the risks common to companies in the biotechnology industry including, but not limited to, the uncertainties of research and development, competition from technological innovations of others, dependence on collaborative arrangements, protection of proprietary technology, dependence on key personnel and compliance with government regulation. Product candidates currently under development will require significant additional research and development efforts, including extensive preclinical and clinical testing and regulatory approvals, prior to commercialization. These efforts require significant amounts of capital, adequate personnel infrastructure, and extensive compliance reporting capabilities. Unaudited Interim Financial Information The consolidated balance sheet at September 30, 2018 was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (“GAAP”). The accompanying unaudited consolidated financial statements as of March 31, 2019 and for the three and six months ended March 31, 2019 and 2018 have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. These financial statements should be read in conjunction with the Company’s audited financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended September 30, 2018. In the opinion of management, all adjustments, consisting of normal recurring adjustments necessary for a fair statement of the Company’s financial position as of March 31, 2019 and results of operations for the three and six months ended March 31, 2019 and 2018 and cash flows for the six months ended March 31, 2019 and 2018, have been made. The results of operations for the six months ended March 31, 2019 are not necessarily indicative of the results of operations that may be expected for subsequent quarters or the year ending September 30, 2019. The accompanying consolidated financial statements have been prepared in conformity with GAAP. All dollar amounts in the consolidated financial statements and in the notes to the consolidated financial statements, except per share amounts, are in thousands unless otherwise indicated. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies For the Company’s Significant Accounting Policies, please refer to its Annual Report on Form 10-K for the fiscal year ended September 30, 2018. Other than the adoption of ASC 606 as of October 1, 2018, there were no other significant changes to the Company’s Significant Accounting Policies during the quarter. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions reflected in these consolidated financial statements include, but are not limited to, management’s judgments with respect to its revenue arrangements; valuation of stock-based awards; the accrual of research and development expenses, and the accounting for income taxes, including uncertain tax positions and the valuation of net deferred tax assets. Revenue Recognition On October 1, 2018, the Company adopted the new revenue standard, discussed below, which amended revenue recognition principles and provides a single, comprehensive set of criteria for revenue recognition within and across all industries (“ASC 606”). ASC 606 provides guidance on recognizing revenue, including a five-step model to determine when revenue recognition is appropriate. The standard requires that an entity recognize revenue to depict the transfer of control of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Recently Issued Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers and has since issued several additional amendments thereto, collectively referred to herein as ASC 606 Multiple-Element Arrangements one In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”) that changes the presentation of restricted cash and cash equivalents on the statement of cash flows. Restricted cash and restricted cash equivalents will be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This amendment was effective for the Company in the fiscal year beginning October 1, 2018. The Company adopted ASU 2016-18 retrospectively as of October 1, 2018. $608 In May 2017, the FASB issued ASU No. 2017-09, Compensation—Stock Compensation (Topic 718) (“ASU 2017-09”) which In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which will replace the existing guidance in ASC 840, “Leases.” The updated standard aims to increase transparency and comparability among organizations by requiring lessees to recognize leased assets and leased liabilities on the consolidated balance sheets and requiring disclosure of key information about leasing arrangements. This amendment is effective for the Company in the fiscal year beginning October 1, 2019, but early adoption is permissible. The Company is currently evaluating the potential impact that ASU 2016-02 may have on its financial position and results of operations. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326) (“ASU 2016-13”), which introduces a new methodology for accounting for credit losses on financial instruments, including available-for-sale debt securities. The guidance establishes a new “expected loss model” that requires entities to estimate current expected credit losses on financial instruments by using all practical and relevant information. Any expected credit losses are to be reflected as allowances rather than reductions in the amortized cost of available-for-sale debt securities. This amendment is effective for the Company in the fiscal year beginning October 1, 2020. The Company is currently evaluating the potential impact that ASU 2016-13 may have on its financial position and results of operations. In March 2017, the FASB issued ASU No. 2017-08, Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities (“ASU 2017-08”) which requires companies to amend the amortization period for premiums on debt securities with explicit call features to be the earliest call date rather than through the contractual life of the debt instrument. This amendment aims to more closely align the recognition of interest income with the manner in which market participants price such instruments. This amendment is effective for the Company in the fiscal year beginning October 1, 2019, but early adoption is permissible. The Company is currently evaluating the potential impact that ASU 2017-08 may have on its financial position and results of operations. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s consolidated financial statements upon adoption. |
Fair Value of Financial Assets
Fair Value of Financial Assets and Liabilities | 6 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets and Liabilities | 3. Fair Value of Financial Assets and Liabilities The following tables present information about the Company’s financial assets and liabilities that were subject to fair value measurement on a recurring basis as of March 31, 2019 and September 30, 2018 and indicate the fair value hierarchy of the valuation inputs utilized to determine such fair value: Fair Value Measurements at March 31, 2019 Using: Level 1 Level 2 Level 3 Total (in thousands) Assets: Cash equivalents: Money market funds $ 89,172 $ — $ — $ 89,172 Commercial paper — 10,954 — 10,954 Marketable securities: U.S. Treasury notes 106,670 — — 106,670 Commercial paper — 100,829 — 100,829 Corporate bonds — 73,138 — 73,138 $ 195,842 $ 184,921 $ — $ 380,763 Liabilities: Series 1 nonconvertible preferred stock — — 1,628 1,628 $ — $ — $ 1,628 $ 1,628 Fair Value Measurements at September 30, 2018 Using: Level 1 Level 2 Level 3 Total (in thousands) Assets: Cash equivalents: Money market funds $ 51,025 $ — $ — $ 51,025 Commercial paper — 6,987 — 6,987 Corporate bonds — 3,998 — 3,998 Marketable securities: U.S. Treasury notes 42,703 — — 42,703 Commercial paper — 113,885 — 113,885 Corporate bonds — 104,629 — 104,629 $ 93,728 $ 229,499 $ — $ 323,227 Liabilities: Series 1 nonconvertible preferred stock — — 1,628 1,628 $ — $ — $ 1,628 $ 1,628 During the six months ended March 31, 2019 and 2018, there were no transfers between Level 1, Level 2 and Level 3. The outstanding shares of Series 1 nonconvertible preferred stock are measured at fair value. The fair value of these instruments was based on significant inputs not observable in the market, which represented a Level 3 measurement within the fair value hierarchy. The Company utilized a probability-weighted valuation model which takes into consideration various outcomes that may require the Company to transfer assets upon exercise. Changes in the fair value of the warrant liability (for the period the warrants were outstanding) and Series 1 nonconvertible preferred stock are recognized in other income (expense), net in the consolidated statements of operations. The recurring Level 3 fair value measurements of the Company’s outstanding Series 1 nonconvertible preferred stock using probability-weighted discounted cash flow include the following significant unobservable inputs: Range (Weighted Average) March 31, September 30, Unobservable Input 2019 2018 Probabilities of payout 0%-70% 0%-70% Discount rate 6.25% 6.25% The following table provides a rollforward of the aggregate fair values of the Company’s outstanding Series 1 nonconvertible preferred stock for which fair value is determined by Level 3 inputs: Series 1 Nonconvertible Preferred Stock Balance, September 30, 2018 $ 1,628 Change in fair value of nonconvertible preferred stock — Balance, March 31, 2019 $ 1,628 |
Marketable Securities
Marketable Securities | 6 Months Ended |
Mar. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Marketable Securities | 4. Marketable Securities As of March 31, 2019 and September 30, 2018, the fair value of available-for-sale marketable securities, by type of security, was as follows: March 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) U.S. Treasury notes $ 106,648 $ 29 $ (7 ) 106,670 Commercial paper 100,829 — — 100,829 Corporate bonds 73,225 49 (136 ) 73,138 $ 280,702 $ 78 $ (143 ) $ 280,637 September 30, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Commercial paper $ 113,885 $ — $ — $ 113,885 Corporate bonds 105,105 1 (477 ) 104,629 U.S. Treasury notes 42,801 — (98 ) 42,703 $ 261,791 $ 1 $ (575 ) $ 261,217 As of March 31, 2019, marketable securities consisted of short-term marketable securities, which are investments that mature within one year, and long-term marketable securities, with an aggregate fair value of $16,510, which consist of certain corporate bonds that have maturities of more than one year but not more than three years. |
Accrued Expenses and Other Long
Accrued Expenses and Other Long-Term Liabilities | 6 Months Ended |
Mar. 31, 2019 | |
Payables And Accruals [Abstract] | |
Accrued Expenses and Other Long-Term Liabilities | 5. Accrued Expenses and Other Long-Term Liabilities Accrued expenses and other current liabilities as well as other long-term liabilities consisted of the following as of March 31, 2019 and September 30, 2018: March 31, September 2019 2018 (in thousands) Accrued expenses: Accrued preclinical and clinical expenses $ 5,530 $ 3,617 Accrued payroll and related expenses 1,720 3,274 Accrued vendor manufacturing 2,695 1,901 Accrued professional fees 742 507 Accrued other 920 593 $ 11,607 $ 9,892 Other long-term liabilities: Uncertain tax positions $ 1,922 $ 1,792 Accrued rent expense 842 593 Capital lease obligation 249 293 Asset retirement obligation 236 217 $ 3,249 $ 2,895 |
Ongoing Collaboration Agreement
Ongoing Collaboration Agreements | 6 Months Ended |
Mar. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Ongoing Collaboration Agreements | 6. Ongoing Collaboration Agreements AbbVie Collaboration The Company has a Collaborative Development and License Agreement (as amended, the “AbbVie Agreement”), with AbbVie to identify, develop and commercialize HCV NS3 and NS3/4A protease inhibitor compounds, including paritaprevir and glecaprevir, under which the Company has received license payments, proceeds from a sale of preferred stock, research funding payments, milestone payments and royalties totaling approximately $787,000 through March 31, 2019. Since the Company satisfied all of its performance obligations under the AbbVie Agreement by the end of fiscal 2011, all milestone payments received since then have been recognized as revenue when the milestones were achieved by AbbVie. During the six months ended March 31, 2018, the Company earned and recognized milestone revenue of $15,000 upon AbbVie’s achievement of commercialization regulatory approval in Japan for MAVIRET™, the final milestone payment under this agreement The Company is also receiving annually tiered royalties per Company protease inhibitor product ranging from ten percent up to twenty percent, or on a blended basis from ten percent up to the high teens, on the portion of AbbVie’s calendar year net sales of each HCV regimen that is allocated to the protease inhibitor in the regimen. Beginning with each January 1, the cumulative net sales of a given royalty-bearing protease inhibitor product start at zero for purposes of calculating the tiered royalties on a product-by-product basis. |
Series 1 Nonconvertible Preferr
Series 1 Nonconvertible Preferred Stock | 6 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Series 1 Nonconvertible Preferred Stock | 7. Series 1 Nonconvertible Preferred Stock As of March 31, 2019, 1,931 shares of Series 1 nonconvertible preferred stock were issued and outstanding. Since these shares qualify as a derivative, the outstanding shares are carried at fair value as a liability on the Company’s consolidated balance sheet. |
Stock-Based Awards
Stock-Based Awards | 6 Months Ended |
Mar. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Awards | 8. Stock-Based Awards The Company grants stock-based awards, including stock options and unit awards under its 2019 Equity Incentive Plan (the “2019 Plan”), which was approved by our stockholders on February 28, 2019. The Company also has outstanding unit awards, stock options and restricted stock unit awards under its 2012 Equity Incentive Plan (the “2012 Plan”) and its amended and restated 1995 Equity Incentive Plan (the “1995 Plan”), but is no longer granting awards under these plans. The following table summarizes stock option activity, including performance-based options, for the year-to-date period ending March 31, 2019: Shares Issuable Under Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term in years Aggregate Intrinsic Value (in thousands) (in thousands) Outstanding as of September 30, 2018 2,624 $ 36.65 7.1 $ 129,115 Granted 537 82.21 Exercised (197 ) 28.59 Forfeited (32 ) 70.59 Outstanding as of March 31, 2019 2,932 $ 45.17 7.2 $ 148,329 Options vested and expected to vest as of March 31, 2019 2,932 $ 45.17 7.2 $ 148,329 Options exercisable as of March 31, 2019 1,722 $ 34.47 6.1 $ 105,171 Market and Performance-Based Stock Unit Awards The Company awards both performance share units, or PSUs, and relative total stockholder return units, or rTSRUs, to its executive officers. The number of units represents the target number of shares of common stock that may be earned; however, the actual number of shares that may be earned ranges from 0% to 200% of the target number. PSUs rTSRUs Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value (in thousands, except per share data) Unvested at September 30, 2018 70 $ 50.97 70 $ 59.96 Granted 21 67.13 21 47.42 Vested (36 ) 35.89 (45 ) 46.11 Cancelled (9 ) 35.89 — — Unvested at March 31, 2019 46 $ 73.03 46 $ 67.80 During the six months ended March 31, 2019, a total of 80% of the target PSUs and 200% of the target rTSRUs granted in January 2017 vested, resulting in the issuance of an aggregate of 77 common shares, net of share withholding. Restricted Stock Units During the three months ended December 31, 2016, the Company awarded restricted stock units to its employees, which vest 50% in three years and 50% in four years, provided the employee remains employed with the Company at the time of vesting. The fair value per share of these awards is determined based on the intrinsic value of the stock on the date of grant and will be recognized as stock-based compensation expense over the requisite service period. The following table summarizes the restricted stock unit activity for the year-to-date period ending March 31, 2019: Restricted Stock Units Weighted Average Grant Date Fair Value (in thousands, except per share data) Unvested at September 30, 2018 109 $ 30.00 Granted — — Vested — — Cancelled (1 ) 30.00 Unvested at March 31, 2019 108 $ 30.00 Stock-Based Compensation Expense During the six months ended March 31, 2019 and 2018, the Company recognized the following stock-based compensation expense: Three Months ended Six Months Ended March 31, March 31, 2019 2018 2019 2018 (in thousands) Research and development $ 2,194 $ 1,429 $ 4,468 $ 2,900 General and administrative 2,513 2,161 6,082 4,810 $ 4,707 $ 3,590 $ 10,550 $ 7,710 Three Months ended Six Months Ended March 31, March 31, 2019 2018 2019 2018 (in thousands) Stock options $ 3,949 $ 3,030 $ 7,853 $ 5,978 Performance stock units 72 35 1,278 641 rTSRUs 493 332 1,025 694 Restricted stock units 193 193 394 397 $ 4,707 $ 3,590 $ 10,550 $ 7,710 During the six months ended March 31, 2019 and 2018, the Company recognized stock-based compensation expense for PSUs and performance-based options upon achievement of performance-based targets that occurred during their respective periods. As of March 31, 2019, the Company had an aggregate of $44,379 of unrecognized stock-based compensation cost, which is expected to be recognized over a weighted average period of 2.6 years. |
Net Income Per Share
Net Income Per Share | 6 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | 9. Net Income Per Share Basic and diluted net income per share attributable to common stockholders was calculated as follows for six months ended March 31, 2019 and 2018 (in thousands, except per share data): Three Months Ended Six Months Ended March 31, March 31, 2019 2018 2019 2018 (in thousands, except per share data) Basic net income per share: Numerator: Net income $ 4,145 $ 12,555 $ 30,156 $ 24,248 Denominator: Weighted average common shares outstanding—basic 19,549 19,206 19,487 19,167 Net income per share common share—basic $ 0.21 $ 0.65 $ 1.55 $ 1.27 Diluted net income per share: Numerator: Net income $ 4,145 $ 12,555 $ 30,156 $ 24,248 Denominator: Weighted average common shares outstanding—basic 19,549 19,206 19,487 19,167 Dilutive effect of common stock equivalents 1,535 1,395 1,459 1,089 Weighted average common shares outstanding—diluted 21,084 20,601 20,946 20,256 Net income per share common share—diluted $ 0.20 $ 0.61 $ 1.44 $ 1.20 Anti-dilutive common stock equivalents excluded from above 784 46 694 449 |
Income Taxes
Income Taxes | 6 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes For the three months ended March 31, 2019 and 2018, the Company recorded an income tax benefit of $3,204 and income tax (expense) of ($5,370) respectively, both of which were attributable to the Company’s domestic operations. During the three months ended March 31, 2019, the Company recorded an income tax benefit, despite its pre-tax income, due to tax deductions for employee stock award-related activity during the quarter. representing effective tax rates of 1.7% The Company files tax returns as prescribed by the tax laws of the jurisdictions in which it operates. In the normal course of business, the Company is subject to examination by federal and state jurisdictions, where applicable. The Company’s tax years are still open under statute from 2014 to the present. Earlier years may be examined to the extent that tax credit or net operating loss carryforwards are used in future periods. During 2018, the Company received notice of examination by the Internal Revenue Service (“IRS”) for the year ending September 30, 2016. The Company received and agreed to a notice of proposed adjustment from the IRS which was paid in September 2018, the amount of which was immaterial to the financial statements. The Company is in the process of finalizing the completion of the IRS audit. During October 2018, the Company received notice of examination by the Massachusetts Department of Revenue (“DOR”) for the years ending September 30, 2015 and September 30, 2016. No adjustments have been proposed to date. The Company has not received notice of examination by any other jurisdictions for any other tax year open under statute. The Company had an unrecognized tax benefit of $1,922 and $1,792 as of March 31, 2019 and September 30, 2018, respectively. Unrecognized tax benefits represent tax positions for which reserves have been established. The Company’s policy is to record interest and penalties related to uncertain tax positions as part of its income tax provision. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Mar. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11. Commitments and Contingencies Leases The Company has two leases for office and laboratory space located in Watertown, Massachusetts that expire in September 2022 and August 2024 The Company recorded rent expense of $1,246 and $1,013 for the six months ended March 31, 2019 and 2018, respectively. In connection with one of the leases, the Company has an outstanding letter of credit in the amount of $608 as of March 31, 2019 and September 30, 2018, collateralized by a money market account. As of March 31, 2019 and September 30, 2018, the Company classified the $608 related to the money market account as long-term restricted cash. Litigation and Contingencies Related to Use of Intellectual Property From time to time, the Company may become subject to legal proceedings, claims and litigation arising in the ordinary course of business. The Company currently is not a party to any threatened or pending litigation. However, third parties might allege that the Company or its collaborators are infringing their patent rights or that the Company is otherwise violating their intellectual property rights. Such third parties may resort to litigation against the Company or its collaborators, which the Company has agreed to indemnify. With respect to some of these patents, the Company expects that it could be required to obtain licenses and could be required to pay license fees or royalties, or both. These licenses may not be available on acceptable terms, or at all. A costly license, or inability to obtain a necessary license, would have a material adverse effect on the Company’s financial condition, results of operations or cash flows. The Company accrues contingent liabilities when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. Indemnification Agreements In the ordinary course of business, the Company may provide indemnifications of varying scope and terms to customers, vendors, lessors, business partners, and other parties with respect to certain matters including, but not limited to, losses arising out of breach of such agreements or from services to be provided to the Company, or from intellectual property infringement claims made by third parties. In addition, the Company has entered into indemnification agreements with members of its board of directors and its executive officers that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is, in many cases, unlimited. To date, the Company has not incurred any material costs as a result of such indemnifications. In addition, the Company maintains officers and directors insurance coverage. The Company does not believe that the outcome of any claims under indemnification arrangements will have a material effect on its financial position, results of operations or cash flows, and it has not accrued any liabilities related to such obligations in its financial statements as of March 31, 2019. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions reflected in these consolidated financial statements include, but are not limited to, management’s judgments with respect to its revenue arrangements; valuation of stock-based awards; the accrual of research and development expenses, and the accounting for income taxes, including uncertain tax positions and the valuation of net deferred tax assets. |
Revenue Recognition | Revenue Recognition On October 1, 2018, the Company adopted the new revenue standard, discussed below, which amended revenue recognition principles and provides a single, comprehensive set of criteria for revenue recognition within and across all industries (“ASC 606”). ASC 606 provides guidance on recognizing revenue, including a five-step model to determine when revenue recognition is appropriate. The standard requires that an entity recognize revenue to depict the transfer of control of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers and has since issued several additional amendments thereto, collectively referred to herein as ASC 606 Multiple-Element Arrangements one In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”) that changes the presentation of restricted cash and cash equivalents on the statement of cash flows. Restricted cash and restricted cash equivalents will be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This amendment was effective for the Company in the fiscal year beginning October 1, 2018. The Company adopted ASU 2016-18 retrospectively as of October 1, 2018. $608 In May 2017, the FASB issued ASU No. 2017-09, Compensation—Stock Compensation (Topic 718) (“ASU 2017-09”) which In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which will replace the existing guidance in ASC 840, “Leases.” The updated standard aims to increase transparency and comparability among organizations by requiring lessees to recognize leased assets and leased liabilities on the consolidated balance sheets and requiring disclosure of key information about leasing arrangements. This amendment is effective for the Company in the fiscal year beginning October 1, 2019, but early adoption is permissible. The Company is currently evaluating the potential impact that ASU 2016-02 may have on its financial position and results of operations. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326) (“ASU 2016-13”), which introduces a new methodology for accounting for credit losses on financial instruments, including available-for-sale debt securities. The guidance establishes a new “expected loss model” that requires entities to estimate current expected credit losses on financial instruments by using all practical and relevant information. Any expected credit losses are to be reflected as allowances rather than reductions in the amortized cost of available-for-sale debt securities. This amendment is effective for the Company in the fiscal year beginning October 1, 2020. The Company is currently evaluating the potential impact that ASU 2016-13 may have on its financial position and results of operations. In March 2017, the FASB issued ASU No. 2017-08, Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities (“ASU 2017-08”) which requires companies to amend the amortization period for premiums on debt securities with explicit call features to be the earliest call date rather than through the contractual life of the debt instrument. This amendment aims to more closely align the recognition of interest income with the manner in which market participants price such instruments. This amendment is effective for the Company in the fiscal year beginning October 1, 2019, but early adoption is permissible. The Company is currently evaluating the potential impact that ASU 2017-08 may have on its financial position and results of operations. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s consolidated financial statements upon adoption. |
Fair Value of Financial Asset_2
Fair Value of Financial Assets and Liabilities (Tables) | 6 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities that were Subject to Fair Value Measurement on Recurring Basis | The following tables present information about the Company’s financial assets and liabilities that were subject to fair value measurement on a recurring basis as of March 31, 2019 and September 30, 2018 and indicate the fair value hierarchy of the valuation inputs utilized to determine such fair value: Fair Value Measurements at March 31, 2019 Using: Level 1 Level 2 Level 3 Total (in thousands) Assets: Cash equivalents: Money market funds $ 89,172 $ — $ — $ 89,172 Commercial paper — 10,954 — 10,954 Marketable securities: U.S. Treasury notes 106,670 — — 106,670 Commercial paper — 100,829 — 100,829 Corporate bonds — 73,138 — 73,138 $ 195,842 $ 184,921 $ — $ 380,763 Liabilities: Series 1 nonconvertible preferred stock — — 1,628 1,628 $ — $ — $ 1,628 $ 1,628 Fair Value Measurements at September 30, 2018 Using: Level 1 Level 2 Level 3 Total (in thousands) Assets: Cash equivalents: Money market funds $ 51,025 $ — $ — $ 51,025 Commercial paper — 6,987 — 6,987 Corporate bonds — 3,998 — 3,998 Marketable securities: U.S. Treasury notes 42,703 — — 42,703 Commercial paper — 113,885 — 113,885 Corporate bonds — 104,629 — 104,629 $ 93,728 $ 229,499 $ — $ 323,227 Liabilities: Series 1 nonconvertible preferred stock — — 1,628 1,628 $ — $ — $ 1,628 $ 1,628 |
Fair Value Measurements of the Company's Outstanding Series 1 Nonconvertible Preferred Stock | The recurring Level 3 fair value measurements of the Company’s outstanding Series 1 nonconvertible preferred stock using probability-weighted discounted cash flow include the following significant unobservable inputs: Range (Weighted Average) March 31, September 30, Unobservable Input 2019 2018 Probabilities of payout 0%-70% 0%-70% Discount rate 6.25% 6.25% |
Rollforward of Aggregate Fair Values of Outstanding Series 1 Nonconvertible Preferred Stock | The following table provides a rollforward of the aggregate fair values of the Company’s outstanding Series 1 nonconvertible preferred stock for which fair value is determined by Level 3 inputs: Series 1 Nonconvertible Preferred Stock Balance, September 30, 2018 $ 1,628 Change in fair value of nonconvertible preferred stock — Balance, March 31, 2019 $ 1,628 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 6 Months Ended |
Mar. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Fair Value of Available-for-Sale Marketable Securities by Type of Security | As of March 31, 2019 and September 30, 2018, the fair value of available-for-sale marketable securities, by type of security, was as follows: March 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) U.S. Treasury notes $ 106,648 $ 29 $ (7 ) 106,670 Commercial paper 100,829 — — 100,829 Corporate bonds 73,225 49 (136 ) 73,138 $ 280,702 $ 78 $ (143 ) $ 280,637 September 30, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Commercial paper $ 113,885 $ — $ — $ 113,885 Corporate bonds 105,105 1 (477 ) 104,629 U.S. Treasury notes 42,801 — (98 ) 42,703 $ 261,791 $ 1 $ (575 ) $ 261,217 |
Accrued Expenses and Other Lo_2
Accrued Expenses and Other Long-Term Liabilities (Tables) | 6 Months Ended |
Mar. 31, 2019 | |
Payables And Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities as well as Other Long-Term Liabilities | Accrued expenses and other current liabilities as well as other long-term liabilities consisted of the following as of March 31, 2019 and September 30, 2018: March 31, September 2019 2018 (in thousands) Accrued expenses: Accrued preclinical and clinical expenses $ 5,530 $ 3,617 Accrued payroll and related expenses 1,720 3,274 Accrued vendor manufacturing 2,695 1,901 Accrued professional fees 742 507 Accrued other 920 593 $ 11,607 $ 9,892 Other long-term liabilities: Uncertain tax positions $ 1,922 $ 1,792 Accrued rent expense 842 593 Capital lease obligation 249 293 Asset retirement obligation 236 217 $ 3,249 $ 2,895 |
Stock-Based Awards (Tables)
Stock-Based Awards (Tables) | 6 Months Ended |
Mar. 31, 2019 | |
Summary of Stock Option Activity Including Performance Based Options | The following table summarizes stock option activity, including performance-based options, for the year-to-date period ending March 31, 2019: Shares Issuable Under Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term in years Aggregate Intrinsic Value (in thousands) (in thousands) Outstanding as of September 30, 2018 2,624 $ 36.65 7.1 $ 129,115 Granted 537 82.21 Exercised (197 ) 28.59 Forfeited (32 ) 70.59 Outstanding as of March 31, 2019 2,932 $ 45.17 7.2 $ 148,329 Options vested and expected to vest as of March 31, 2019 2,932 $ 45.17 7.2 $ 148,329 Options exercisable as of March 31, 2019 1,722 $ 34.47 6.1 $ 105,171 |
Summary of Restricted Stock Unit Activity | The following table summarizes the restricted stock unit activity for the year-to-date period ending March 31, 2019: Restricted Stock Units Weighted Average Grant Date Fair Value (in thousands, except per share data) Unvested at September 30, 2018 109 $ 30.00 Granted — — Vested — — Cancelled (1 ) 30.00 Unvested at March 31, 2019 108 $ 30.00 |
Stock-Based Compensation Expense | During the six months ended March 31, 2019 and 2018, the Company recognized the following stock-based compensation expense: Three Months ended Six Months Ended March 31, March 31, 2019 2018 2019 2018 (in thousands) Research and development $ 2,194 $ 1,429 $ 4,468 $ 2,900 General and administrative 2,513 2,161 6,082 4,810 $ 4,707 $ 3,590 $ 10,550 $ 7,710 Three Months ended Six Months Ended March 31, March 31, 2019 2018 2019 2018 (in thousands) Stock options $ 3,949 $ 3,030 $ 7,853 $ 5,978 Performance stock units 72 35 1,278 641 rTSRUs 493 332 1,025 694 Restricted stock units 193 193 394 397 $ 4,707 $ 3,590 $ 10,550 $ 7,710 |
Performance Share Units and Relative Total Stockholder Return Units [Member] | |
Summary of PSUs and rTSRUs Activity Based on Targeted Number of Shares | The following table summarizes PSU and rTSRU activity based on the targeted number of shares for the year-to-date period ending March 31, 2019: PSUs rTSRUs Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value (in thousands, except per share data) Unvested at September 30, 2018 70 $ 50.97 70 $ 59.96 Granted 21 67.13 21 47.42 Vested (36 ) 35.89 (45 ) 46.11 Cancelled (9 ) 35.89 — — Unvested at March 31, 2019 46 $ 73.03 46 $ 67.80 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 6 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Net Income Per Share Attributable to Common Stockholders | Basic and diluted net income per share attributable to common stockholders was calculated as follows for six months ended March 31, 2019 and 2018 (in thousands, except per share data): Three Months Ended Six Months Ended March 31, March 31, 2019 2018 2019 2018 (in thousands, except per share data) Basic net income per share: Numerator: Net income $ 4,145 $ 12,555 $ 30,156 $ 24,248 Denominator: Weighted average common shares outstanding—basic 19,549 19,206 19,487 19,167 Net income per share common share—basic $ 0.21 $ 0.65 $ 1.55 $ 1.27 Diluted net income per share: Numerator: Net income $ 4,145 $ 12,555 $ 30,156 $ 24,248 Denominator: Weighted average common shares outstanding—basic 19,549 19,206 19,487 19,167 Dilutive effect of common stock equivalents 1,535 1,395 1,459 1,089 Weighted average common shares outstanding—diluted 21,084 20,601 20,946 20,256 Net income per share common share—diluted $ 0.20 $ 0.61 $ 1.44 $ 1.20 Anti-dilutive common stock equivalents excluded from above 784 46 694 449 |
Nature of the Business and Ba_2
Nature of the Business and Basis of Presentation - Additional Information (Detail) | 6 Months Ended |
Mar. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Entity incorporated, in year | 1995 |
Entity incorporation, state country name | Delaware |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Sep. 30, 2018 | Dec. 31, 2017 |
Summary Of Accounting And Financial Policies [Line Items] | |||
Restricted cash | $ 608 | $ 608 | |
ASU 2016-18 [Member] | |||
Summary Of Accounting And Financial Policies [Line Items] | |||
Restricted cash | $ 608 |
Fair Value of Financial Asset_3
Fair Value of Financial Assets and Liabilities - Financial Assets and Liabilities that were Subject to Fair Value Measurement on Recurring Basis (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Sep. 30, 2018 |
Assets: | ||
Marketable securities | $ 280,637 | $ 261,217 |
Assets, Fair Value Disclosure, Total | 380,763 | 323,227 |
Liabilities: | ||
Liabilities, Fair Value Disclosure, Total | 1,628 | 1,628 |
Series 1 Nonconvertible Preferred Stock [Member] | ||
Liabilities: | ||
Liabilities | 1,628 | 1,628 |
Level 1 [Member] | ||
Assets: | ||
Assets, Fair Value Disclosure, Total | 195,842 | 93,728 |
Level 2 [Member] | ||
Assets: | ||
Assets, Fair Value Disclosure, Total | 184,921 | 229,499 |
Level 3 [Member] | ||
Liabilities: | ||
Liabilities, Fair Value Disclosure, Total | 1,628 | 1,628 |
Level 3 [Member] | Series 1 Nonconvertible Preferred Stock [Member] | ||
Liabilities: | ||
Liabilities | 1,628 | 1,628 |
Money Market Funds [Member] | ||
Assets: | ||
Cash equivalents | 89,172 | 51,025 |
Money Market Funds [Member] | Level 1 [Member] | ||
Assets: | ||
Cash equivalents | 89,172 | 51,025 |
Corporate Bonds [Member] | ||
Assets: | ||
Cash equivalents | 3,998 | |
Marketable securities | 73,138 | 104,629 |
Corporate Bonds [Member] | Level 2 [Member] | ||
Assets: | ||
Cash equivalents | 3,998 | |
Marketable securities | 73,138 | 104,629 |
Commercial Paper [Member] | ||
Assets: | ||
Cash equivalents | 10,954 | 6,987 |
Marketable securities | 100,829 | 113,885 |
Commercial Paper [Member] | Level 2 [Member] | ||
Assets: | ||
Cash equivalents | 10,954 | 6,987 |
Marketable securities | 100,829 | 113,885 |
U.S. Treasury Notes [Member] | ||
Assets: | ||
Marketable securities | 106,670 | 42,703 |
U.S. Treasury Notes [Member] | Level 1 [Member] | ||
Assets: | ||
Marketable securities | $ 106,670 | $ 42,703 |
Fair Value of Financial Asset_4
Fair Value of Financial Assets and Liabilities - Additional Information (Detail) - USD ($) | 6 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | ||
Transfers between Level 1, Level 2 and Level 3 | $ 0 | $ 0 |
Fair Value of Financial Asset_5
Fair Value of Financial Assets and Liabilities - Fair Value Measurements of the Company's Outstanding Series 1 Nonconvertible Preferred Stock (Detail) - Level 3 [Member] | Mar. 31, 2019 | Sep. 30, 2018 |
Discount Rate [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Range (Weighted Average) | 0.0625 | 0.0625 |
Minimum [Member] | Probabilities of Payout [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Range (Weighted Average) | 0 | 0 |
Maximum [Member] | Probabilities of Payout [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Range (Weighted Average) | 0.70 | 0.70 |
Fair Value of Financial Asset_6
Fair Value of Financial Assets and Liabilities - Rollforward of Aggregate Fair Values of Outstanding Series 1 Nonconvertible Preferred Stock (Detail) - Series 1 Nonconvertible Preferred Stock [Member] $ in Thousands | Mar. 31, 2019USD ($) |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Beginning Balance | $ 1,628 |
Ending Balance | $ 1,628 |
Marketable Securities - Fair Va
Marketable Securities - Fair Value of Available-for-Sale Marketable Securities by Type of Security (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Sep. 30, 2018 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 280,702 | $ 261,791 |
Gross Unrealized Gains | 78 | 1 |
Gross Unrealized Losses | (143) | (575) |
Fair Value | 280,637 | 261,217 |
U.S. Treasury Notes [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 106,648 | 42,801 |
Gross Unrealized Gains | 29 | |
Gross Unrealized Losses | (7) | (98) |
Fair Value | 106,670 | 42,703 |
Commercial Paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 100,829 | 113,885 |
Fair Value | 100,829 | 113,885 |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 73,225 | 105,105 |
Gross Unrealized Gains | 49 | 1 |
Gross Unrealized Losses | (136) | (477) |
Fair Value | $ 73,138 | $ 104,629 |
Marketable Securities - Additio
Marketable Securities - Additional Information (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2019 | Sep. 30, 2018 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Marketable securities maturing in greater than one year, aggregate fair value | $ 16,510 | $ 16,389 |
Maximum [Member] | Short Term Marketable Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Maturity period of the marketable securities | 1 year | |
Long Term Marketable Securities [Member] | Minimum [Member] | Corporate Bond Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Maturity period of the marketable securities | 1 year | |
Long Term Marketable Securities [Member] | Maximum [Member] | Corporate Bond Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Maturity period of the marketable securities | 3 years |
Accrued Expenses and Other Lo_3
Accrued Expenses and Other Long-Term Liabilities - Accrued Expenses and Other Current Liabilities as well as Other Long-Term Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Sep. 30, 2018 |
Accrued expenses: | ||
Accrued preclinical and clinical expenses | $ 5,530 | $ 3,617 |
Accrued payroll and related expenses | 1,720 | 3,274 |
Accrued vendor manufacturing | 2,695 | 1,901 |
Accrued professional fees | 742 | 507 |
Accrued other | 920 | 593 |
Accrued expenses | 11,607 | 9,892 |
Other long-term liabilities: | ||
Uncertain tax positions | 1,922 | 1,792 |
Accrued rent expense | 842 | 593 |
Capital lease obligation | 249 | 293 |
Asset retirement obligation | 236 | 217 |
Other long-term liabilities | $ 3,249 | $ 2,895 |
Ongoing Collaboration Agreeme_2
Ongoing Collaboration Agreements - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | 149 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Oct. 01, 2018 | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Milestone revenue recognized | $ 39,631,000 | $ 44,049,000 | $ 109,517,000 | $ 82,158,000 | ||
AbbVie [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Cash consideration received under collaboration from sale of preferred stock, research funding payments, milestone payments and royalties | $ 787,000,000 | |||||
Remaining milestone payments to be earned | $ 0 | |||||
Collaboration agreement tiered royalty description | From ten percent up to twenty percent, or on a blended basis from the ten percent up to the high teens, on the portion of AbbVie?s calendar year net sales | |||||
AbbVie [Member] | JAPAN [Member] | ||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||
Milestone revenue recognized | $ 15,000,000 | |||||
Type of cost, good or service [Extensible List] | enta:MilestonePayments |
Series 1 Nonconvertible Prefe_2
Series 1 Nonconvertible Preferred Stock - Additional Information (Detail) - Series 1 Nonconvertible Preferred Stock [Member] shares in Thousands | Mar. 31, 2019shares |
Class Of Stock [Line Items] | |
Preferred stock, shares issued | 1,931 |
Preferred stock, shares outstanding | 1,931 |
Stock-Based Awards - Summary of
Stock-Based Awards - Summary of Stock Option Activity Including Performance Based Options (Detail) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended |
Mar. 31, 2019USD ($)$ / sharesshares | Sep. 30, 2018USD ($)$ / sharesshares | |
Options | ||
Outstanding as of beginning of period | shares | 2,624 | |
Granted | shares | 537 | |
Exercised | shares | (197) | |
Forfeited | shares | (32) | |
Outstanding as of end of period | shares | 2,932 | 2,624 |
Options vested and expected to vest as of end of period | shares | 2,932 | |
Options exercisable as of end of period | shares | 1,722 | |
Weighted Average Exercise Price | ||
Outstanding | $ / shares | $ 36.65 | |
Granted | $ / shares | 82.21 | |
Exercised | $ / shares | 28.59 | |
Forfeited | $ / shares | 70.59 | |
Outstanding | $ / shares | 45.17 | $ 36.65 |
Options vested and expected to vest as of end of period | $ / shares | 45.17 | |
Options exercisable as of end of period | $ / shares | $ 34.47 | |
Weighted Average Remaining Contractual Term | ||
Outstanding as of end of period | 7 years 2 months 12 days | 7 years 1 month 6 days |
Options vested and expected to vest as of end period | 7 years 2 months 12 days | |
Options exercisable as of end of period | 6 years 1 month 6 days | |
Aggregate Intrinsic Value | ||
Outstanding as of end of period | $ | $ 148,329 | $ 129,115 |
Options vested and expected to vest as of end of period | $ | 148,329 | |
Options exercisable as of end of period | $ | $ 105,171 |
Stock-Based Awards - Additional
Stock-Based Awards - Additional Information (Detail) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2016 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Aggregate of unrecognized stock-based compensation cost | $ 44,379 | $ 44,379 | ||
Weighted average recognition period | 2 years 7 months 6 days | |||
Common Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Aggregate target share issued on vesting, net of share withholding | 77 | 45 | 77 | |
Relative Total Stockholder Return Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 200.00% | |||
PSUs [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 80.00% | |||
Restricted Stock Units [Member] | Tranche One [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 50.00% | |||
Vesting period | 3 years | |||
Restricted Stock Units [Member] | Tranche Two [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 50.00% | |||
Vesting period | 4 years | |||
Executive Officers [Member] | Relative Total Stockholder Return Units [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares range percentage | 0.00% | |||
Executive Officers [Member] | Relative Total Stockholder Return Units [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares range percentage | 200.00% |
Stock-Based Awards - Summary _2
Stock-Based Awards - Summary of PSUs and rTSRUs Activity Based on Targeted Number of Shares (Detail) shares in Thousands | 6 Months Ended |
Mar. 31, 2019$ / sharesshares | |
PSUs [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested, beginning balance | shares | 70 |
Granted | shares | 21 |
Vested | shares | (36) |
Cancelled | shares | (9) |
Unvested, ending balance | shares | 46 |
Weighted Average Grant Date Fair Value, Unvested beginning balance | $ / shares | $ 50.97 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 67.13 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 35.89 |
Weighted Average Grant Date Fair Value, Cancelled | $ / shares | 35.89 |
Weighted Average Grant Date Fair Value, Unvested ending balance | $ / shares | $ 73.03 |
rTSRUs [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested, beginning balance | shares | 70 |
Granted | shares | 21 |
Vested | shares | (45) |
Unvested, ending balance | shares | 46 |
Weighted Average Grant Date Fair Value, Unvested beginning balance | $ / shares | $ 59.96 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 47.42 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 46.11 |
Weighted Average Grant Date Fair Value, Unvested ending balance | $ / shares | $ 67.80 |
Stock-Based Awards - Summary _3
Stock-Based Awards - Summary of Restricted Stock Unit Activity (Detail) - Restricted Stock Units [Member] shares in Thousands | 6 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested, beginning balance | shares | 109 |
Granted | shares | 0 |
Vested | shares | 0 |
Cancelled | shares | (1) |
Unvested, ending balance | shares | 108 |
Weighted Average Grant Date Fair Value, Unvested beginning balance | $ / shares | $ 30 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 0 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 0 |
Weighted Average Grant Date Fair Value, Cancelled | $ / shares | 30 |
Weighted Average Grant Date Fair Value, Unvested ending balance | $ / shares | $ 30 |
Stock-Based Awards - Stock-Base
Stock-Based Awards - Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | $ 4,707 | $ 3,590 | $ 10,550 | $ 7,710 |
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | 3,949 | 3,030 | 7,853 | 5,978 |
Performance Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | 72 | 35 | 1,278 | 641 |
rTSRUs [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | 493 | 332 | 1,025 | 694 |
Restricted Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | 193 | 193 | 394 | 397 |
Research and Development [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | 2,194 | 1,429 | 4,468 | 2,900 |
General and Administrative [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | $ 2,513 | $ 2,161 | $ 6,082 | $ 4,810 |
Net Income Per Share - Basic an
Net Income Per Share - Basic and Diluted Net Income Per Share Attributable to Common Stockholders (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | |
Basic net income per share: | ||||||
Net income | $ 4,145 | $ 26,011 | $ 12,555 | $ 11,693 | $ 30,156 | $ 24,248 |
Weighted average common shares outstanding—basic | 19,549 | 19,206 | 19,487 | 19,167 | ||
Net income per share common share—basic | $ 0.21 | $ 0.65 | $ 1.55 | $ 1.27 | ||
Diluted net income per share: | ||||||
Net income | $ 4,145 | $ 26,011 | $ 12,555 | $ 11,693 | $ 30,156 | $ 24,248 |
Weighted average common shares outstanding—basic | 19,549 | 19,206 | 19,487 | 19,167 | ||
Dilutive effect of common stock equivalents | 1,535 | 1,395 | 1,459 | 1,089 | ||
Weighted average common shares outstanding—diluted | 21,084 | 20,601 | 20,946 | 20,256 | ||
Net income per share common share—diluted | $ 0.20 | $ 0.61 | $ 1.44 | $ 1.20 | ||
Anti-dilutive common stock equivalents excluded from above | 784 | 46 | 694 | 449 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||||
Income tax (expense) benefit | $ 3,204 | $ (5,370) | $ (526) | $ (9,014) | |
Effective tax rates | 1.70% | 27.10% | |||
Federal statutory rate | 21.00% | ||||
Income tax expense as a result of U.S. Tax Cuts and Jobs Act | $ (3,859) | ||||
Unrecognized tax benefits | $ 1,922 | $ 1,922 | $ 1,792 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Thousands | 6 Months Ended | ||
Mar. 31, 2019USD ($)Lease | Mar. 31, 2018USD ($) | Sep. 30, 2018USD ($) | |
Commitments And Contingencies [Line Items] | |||
Number of leases | Lease | 2 | ||
Rent expense | $ 1,246 | $ 1,013 | |
Outstanding letter of credit | 608 | $ 608 | |
Long term restricted cash | $ 608 | $ 608 | |
First Lease [Member] | Watertown, Massachusetts [Member] | |||
Commitments And Contingencies [Line Items] | |||
Office lease expiration period | Sep. 30, 2022 | ||
Second Lease [Member] | Watertown, Massachusetts [Member] | |||
Commitments And Contingencies [Line Items] | |||
Office lease expiration period | Aug. 31, 2024 |