Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2023 | Aug. 07, 2023 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2023 | |
Entity File Number | 001-36576 | |
Entity Registrant Name | MARINUS PHARMACEUTICALS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-0198082 | |
Entity Address, Address Line One | 5 Radnor Corporate Center, Suite 500 | |
Entity Address, Address Line Two | 100 Matsonford Rd | |
Entity Address, City or Town | Radnor | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 19087 | |
City Area Code | 484 | |
Local Phone Number | 801-4670 | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Trading Symbol | MRNS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 50,610,329 | |
Entity Central Index Key | 0001267813 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 127,787 | $ 240,551 |
Short-term investments | 47,549 | |
Accounts receivable, net | 5,234 | 6,348 |
Inventory | 2,674 | 77 |
Prepaid expenses and other current assets | 11,365 | 5,402 |
Total current assets | 194,609 | 252,378 |
Property and equipment, net | 3,938 | 4,236 |
Other assets | 2,653 | 2,904 |
Total assets | 201,200 | 259,518 |
Current liabilities: | ||
Accounts payable | 2,302 | 4,461 |
Current portion of notes payable | 3,850 | |
Current portion of revenue interest financing payable | 1,556 | 1,020 |
Accrued expenses | 17,895 | 19,536 |
Total current liabilities | 25,603 | 25,017 |
Notes payable, net of deferred financing costs | 68,136 | 71,018 |
Revenue interest financing payable, net of deferred financing costs | 31,950 | 29,857 |
Contract liabilities, net | 17,016 | 16,285 |
Other long-term liabilities | 1,156 | 1,341 |
Total liabilities | 143,861 | 143,518 |
Stockholders' equity: | ||
Series A convertible preferred stock, $0.001 par value; 25,000,000 shares authorized, no shares issued and outstanding at June 30, 2023; 4,043 shares issued and outstanding at December 31, 2022 | 4,043 | |
Common stock, $0.001 par value; 150,000,000 shares authorized, 50,616,489 issued and 50,609,182 outstanding at June 30, 2023 and 49,650,074 issued and 49,642,767 outstanding at December 31, 2022 | 51 | 50 |
Additional paid-in capital | 554,587 | 542,428 |
Treasury stock at cost, 7,307 shares at June 30, 2023 and December 31, 2022 | ||
Accumulated other comprehensive loss | (114) | |
Accumulated deficit | (497,185) | (430,521) |
Total stockholders' equity | 57,339 | 116,000 |
Total liabilities and stockholders' equity | $ 201,200 | $ 259,518 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2023 | Dec. 31, 2022 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 50,616,489 | 49,650,074 |
Common stock, shares outstanding | 50,609,182 | 49,642,767 |
Treasury stock, shares | 7,307 | 7,307 |
Series A Convertible Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Preferred Stock, Shares Issued | 0 | 4,300 |
Preferred stock, shares outstanding | 0 | 4,300 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenue: | ||||
Federal contract revenue | $ 1,814 | $ 1,790 | $ 8,862 | $ 3,303 |
Total revenue | 6,081 | 1,790 | 16,461 | 15,976 |
Expenses: | ||||
Research and development | 21,412 | 21,495 | 49,345 | 39,486 |
Selling, general and administrative | 15,722 | 17,061 | 30,926 | 28,798 |
Cost of IP license fee | 1,169 | |||
Total expenses | 37,520 | 38,556 | 80,863 | 69,453 |
Loss from operations | (31,439) | (36,766) | (64,402) | (53,477) |
Interest income | 2,128 | 84 | 4,471 | 96 |
Interest expense | (4,208) | (2,656) | (8,355) | (4,348) |
Other income (expense), net | 47 | (95) | 84 | (1,065) |
Loss before income taxes | (33,472) | (39,433) | (68,202) | (58,794) |
Benefit for income taxes | 1,538 | 1,538 | ||
Net loss applicable to common stockholders | $ (31,934) | $ (39,433) | $ (66,664) | $ (58,794) |
Per share information: | ||||
Net loss per share of common stock-basic | $ (0.61) | $ (1.06) | $ (1.28) | $ (1.59) |
Net loss per share of common stock-diluted | $ (0.61) | $ (1.06) | $ (1.28) | $ (1.59) |
Basic weighted average shares outstanding | 52,551,918 | 37,155,917 | 52,162,962 | 37,023,976 |
Diluted weighted average shares outstanding | 52,551,918 | 37,155,917 | 52,162,962 | 37,023,976 |
Other comprehensive loss: | ||||
Unrealized gain on available-for-sale securities | $ (188) | $ (114) | ||
Total comprehensive loss | (32,122) | $ (39,433) | (66,778) | $ (58,794) |
Product revenue, net | ||||
Revenue: | ||||
Revenue | 4,249 | 7,581 | ||
Expenses: | ||||
Cost of product revenue | 386 | 592 | ||
Collaboration revenue | ||||
Revenue: | ||||
Revenue | $ 18 | $ 18 | $ 12,673 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities | ||
Net loss | $ (66,664) | $ (58,794) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 284 | 178 |
Amortization of debt issuance costs | 1,102 | 703 |
Accretion of revenue interest financing debt | 2,916 | |
Amortization of discount on short-term investments | (669) | |
Stock-based compensation expense | 7,632 | 7,196 |
Amortization of net contract asset/liability | (837) | (566) |
Noncash lease expense | 102 | 165 |
Noncash lease liability | 196 | 133 |
Write off of fixed assets | 62 | 61 |
Issuance of common stock for cost of license agreement | 1,169 | |
Unrealized loss on foreign currency transactions | 930 | |
Changes in operating assets and liabilities: | ||
Refund liability | (22,163) | |
Net contract asset/liability | 1,569 | 10,566 |
Prepaid expenses and other current assets, non-current assets, inventory and accounts receivable | (7,441) | (2,481) |
Accounts payable and accrued expenses | (4,088) | 1,576 |
Net cash used in operating activities | (65,836) | (61,327) |
Cash flows from investing activities | ||
Proceeds from sale of property and equipment | 4 | |
Maturities of short-term investments | 5,000 | |
Purchases of short-term investments | (51,995) | |
Purchases of property and equipment | (421) | |
Net cash used in investing activities | (46,991) | (421) |
Cash flows from financing activities | ||
Proceeds from exercise of stock options | 484 | 1,747 |
Proceeds from notes payable, net of fees | 29,400 | |
Payments of revenue interesting financing debt | (421) | |
Net cash provided by financing activities | 63 | 31,147 |
Net decrease in cash and cash equivalents | (112,764) | (30,601) |
Cash and cash equivalents-beginning of period | 240,551 | 122,927 |
Cash and cash equivalents-end of period | 127,787 | 92,326 |
Supplemental disclosure of cash flow information | ||
Unrealized loss on short-term investments | (114) | |
Debt issuance costs included in accrued expenses | 563 | |
Property and equipment in accrued expenses | 1,198 | |
Cash paid for interest during the period | 4,336 | 3,484 |
Cash paid for income taxes during the period | $ 163 | |
Property and equipment in deposits placed in service | $ 1,665 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Series A Convertible Preferred Stock Preferred Stock | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Income | Accumulated Deficit | Total |
Balance Beginning at Dec. 31, 2021 | $ 4,302 | $ 37 | $ 459,852 | $ (410,705) | $ 53,486 | ||
Balance Beginning (in shares) at Dec. 31, 2021 | 4,575 | 36,790,254 | 7,307 | ||||
Increase (Decrease) in Stockholders' Equity (Deficit) | |||||||
Stock-based compensation expense | 3,378 | 3,378 | |||||
Exercise of stock options | 1,733 | 1,733 | |||||
Exercise of stock options (in shares) | 225,165 | ||||||
Issuance of stock related to IP license agreement with Ovid | 1,169 | 1,169 | |||||
Issuance of stock related to IP license agreement with Ovid (in shares) | 123,255 | ||||||
Net loss | (19,361) | (19,361) | |||||
Balance Ending at Mar. 31, 2022 | $ 4,302 | $ 37 | 466,132 | (430,066) | 40,405 | ||
Balance Ending (in shares) at Mar. 31, 2022 | 4,575 | 37,138,674 | 7,307 | ||||
Balance Beginning at Dec. 31, 2021 | $ 4,302 | $ 37 | 459,852 | (410,705) | 53,486 | ||
Balance Beginning (in shares) at Dec. 31, 2021 | 4,575 | 36,790,254 | 7,307 | ||||
Increase (Decrease) in Stockholders' Equity (Deficit) | |||||||
Net loss | (58,794) | ||||||
Balance Ending at Jun. 30, 2022 | $ 4,043 | $ 37 | 470,222 | (469,499) | 4,803 | ||
Balance Ending (in shares) at Jun. 30, 2022 | 4,300 | 37,199,150 | 7,307 | ||||
Balance Beginning at Mar. 31, 2022 | $ 4,302 | $ 37 | 466,132 | (430,066) | 40,405 | ||
Balance Beginning (in shares) at Mar. 31, 2022 | 4,575 | 37,138,674 | 7,307 | ||||
Increase (Decrease) in Stockholders' Equity (Deficit) | |||||||
Stock-based compensation expense | 3,817 | 3,817 | |||||
Net issuance of common stock in connection with the vesting of restricted stock (in shares) | 2,508 | ||||||
Exercise of stock options | 14 | 14 | |||||
Exercise of stock options (in shares) | 2,968 | ||||||
Conversion of convertible preferred stock into common | $ (259) | 259 | |||||
Conversion of convertible preferred stock into common stock (in shares) | (275) | 55,000 | |||||
Net loss | (39,433) | (39,433) | |||||
Balance Ending at Jun. 30, 2022 | $ 4,043 | $ 37 | 470,222 | (469,499) | 4,803 | ||
Balance Ending (in shares) at Jun. 30, 2022 | 4,300 | 37,199,150 | 7,307 | ||||
Balance Beginning at Dec. 31, 2022 | $ 4,043 | $ 50 | 542,428 | (430,521) | 116,000 | ||
Balance Beginning (in shares) at Dec. 31, 2022 | 4,300 | 49,642,767 | 7,307 | ||||
Increase (Decrease) in Stockholders' Equity (Deficit) | |||||||
Stock-based compensation expense | 3,741 | 3,741 | |||||
Net issuance of common stock in connection with the vesting of restricted stock (in shares) | 22,350 | ||||||
Unrealized gain on short-term investments | $ 74 | 74 | |||||
Net loss | (34,730) | (34,730) | |||||
Balance Ending at Mar. 31, 2023 | $ 4,043 | $ 50 | 546,169 | 74 | (465,251) | 85,085 | |
Balance Ending (in shares) at Mar. 31, 2023 | 4,300 | 49,665,117 | 7,307 | ||||
Balance Beginning at Dec. 31, 2022 | $ 4,043 | $ 50 | 542,428 | (430,521) | 116,000 | ||
Balance Beginning (in shares) at Dec. 31, 2022 | 4,300 | 49,642,767 | 7,307 | ||||
Increase (Decrease) in Stockholders' Equity (Deficit) | |||||||
Net loss | (66,664) | ||||||
Balance Ending at Jun. 30, 2023 | $ 51 | 554,587 | (114) | (497,185) | 57,339 | ||
Balance Ending (in shares) at Jun. 30, 2023 | 50,609,182 | 7,307 | |||||
Balance Beginning at Mar. 31, 2023 | $ 4,043 | $ 50 | 546,169 | 74 | (465,251) | 85,085 | |
Balance Beginning (in shares) at Mar. 31, 2023 | 4,300 | 49,665,117 | 7,307 | ||||
Increase (Decrease) in Stockholders' Equity (Deficit) | |||||||
Stock-based compensation expense | 3,891 | 3,891 | |||||
Net issuance of common stock in connection with the vesting of restricted stock (in shares) | 11,625 | ||||||
Exercise of stock options | 485 | 485 | |||||
Exercise of stock options (in shares) | 72,440 | ||||||
Conversion of convertible preferred stock into common | $ (4,043) | $ 1 | 4,042 | ||||
Conversion of convertible preferred stock into common stock (in shares) | (4,300) | 860,000 | |||||
Unrealized gain on short-term investments | (188) | (188) | |||||
Net loss | (31,934) | (31,934) | |||||
Balance Ending at Jun. 30, 2023 | $ 51 | $ 554,587 | $ (114) | $ (497,185) | $ 57,339 | ||
Balance Ending (in shares) at Jun. 30, 2023 | 50,609,182 | 7,307 |
Description of the Business and
Description of the Business and Liquidity | 6 Months Ended |
Jun. 30, 2023 | |
Description of the Business and Liquidity | |
Description of the Business and Liquidity | MARINUS PHARMACEUTICALS, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. Description of the Business and Liquidity We are a commercial-stage pharmaceutical company dedicated to the development of innovative therapeutics for the treatment of seizure disorders, including rare genetic epilepsies and status epilepticus. On March 18, 2022, the U.S. Food and Drug Administration (FDA) approved our new drug application (NDA) for the use of ZTALMY (ganaxolone) oral suspension for the treatment of seizures associated with Cyclin-dependent Kinase-like 5 (CDKL5) Deficiency Disorder (CDD) in patients 2 years of age and older. In June 2022, the Drug Enforcement Administration (DEA) published an interim final rule in the Federal Register placing ganaxolone and its salts in schedule V (CV) of the Controlled Substances Act (CSA), which rule became final on December 9, 2022. A A COVID-19 affected our clinical operations and timelines. For example, our RAISE trial for refractory SE (RSE) is conducted in hospitals, primarily intensive care units in academic medical centers, which experienced high rates of COVID-19 admissions. Several of these sites participating in the RAISE trial experienced COVID-related difficulties, including staff turnover and the need to devote significant resources to patients with COVID-19, which resulted in site initiation and enrollment delays for the RAISE trial. Given these COVID-19-related challenges and the interruption in drug supply in mid-2022, we previously adjusted our expectation for our top-line data readout for the RAISE trial. In May 2022, we resumed screening and recruitment for the RAISE trial. We now expect our interim analysis with top-line data readout for the RAISE trial to be available in the first quarter of 2024. Liquidity Since inception, other than for the three months ended September 30, 2022 due to a one-time net gain from the sale of our Priority Review Voucher (PRV), we have incurred net losses and negative cash flows from our operations. We incurred a net loss of $66.7 million for the six months ended June 30, 2023. There is no assurance that profitable operations will be achieved in the future, and if achieved, could be sustained on a continuing basis. In addition, development activities, clinical and preclinical testing, and commercialization of ganaxolone (in indications other than CDD in the U.S.) will require significant additional financing. Our accumulated deficit as of June 30, 2023 was $497.2 million, and we expect to incur substantial losses in future periods. We plan to finance our future operations with a combination of proceeds from the issuance of equity securities, the issuance of debt, government funding, collaborations, licensing transactions and other commercial transactions or other sources, and revenues from product sales. We have not generated positive cash flows from operations, and there are no assurances that we will be successful in obtaining an adequate level of financing for the continued development and commercialization of ganaxolone. Management’s operating plan, which underlies the analysis of our ability to continue as a going concern, involves the estimation of the amount and timing of future cash inflows and outflows. Actual results could vary from the operating plan. We follow the provisions of Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 205-40, Presentation of Financial Statements—Going Concern, which requires management to assess our ability to continue as a going concern within one year after the date the financial statements are issued. We believe that our existing cash, cash equivalents and short-term investments as of June 30, 2023, will be sufficient to fund our operating expenses and capital expenditure requirements, as well as maintain the minimum cash balance required under our debt facility, for the one-year period after the date the financial statements are issued. However, we will need to secure additional funding in the future, from one or more equity or debt financings, government funding, collaborations, licensing transactions, other commercial transactions or other sources in order to carry out all of our commercialization and planned research and development activities with respect to ganaxolone. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2023 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited interim consolidated financial statements include the accounts of Marinus Pharmaceuticals, Inc. (a Delaware corporation) as well as the accounts of Marinus Pharmaceuticals Emerald Limited (an Ireland company incorporated in February 2021), a wholly owned subsidiary requiring consolidation. Marinus Pharmaceuticals Emerald Limited serves as a corporate presence in the European Union for regulatory purposes. The unaudited interim consolidated financial statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Accordingly, they do not include all information and disclosures necessary for a presentation of our financial position, results of operations and cash flows in conformity with generally accepted accounting principles in the U.S. (GAAP) for annual financial statements. In the opinion of management, these unaudited interim consolidated financial statements reflect all adjustments, consisting primarily of normal recurring accruals, necessary for a fair presentation of our financial position and results of operations and cash flows for the periods presented. The results of operations for interim periods are not necessarily indicative of the results for the full year. These unaudited interim consolidated financial statements should be read in conjunction with the audited financial statements for the year ended December 31, 2022 and accompanying notes thereto included in our Annual Report on Form 10-K filed with the SEC on March 9, 2023. Use of Estimates The preparation of financial statements in conformity with 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 financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from such estimates. Product Revenue, net We recognize ZTALMY revenue in accordance with ASC 606 – Revenue from contracts with customers. Our revenue recognition analysis consists of the following steps: (i) identification of the promised goods in the contract; (ii) determination of whether the promised goods are performance obligations, including whether they are capable of being distinct; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue as we satisfy each performance obligation. Our first FDA approved product, ZTALMY, became available for commercial sale and shipment in the third quarter of 2022. We have three customers, one of which, Orsini Pharmaceutical Services, LLC (Orsini), a specialty pharmacy that dispenses ZTALMY directly to patients, represents over 99% of our ZTALMY revenue to date. Our contract with Orsini has a single performance obligation to deliver ZTALMY upon receipt of a purchase order, which is satisfied when Orsini receives ZTALMY. We recognize ZTALMY revenue at the point in time when control of ZTALMY is transferred to Orsini, which is upon delivery to Orsini. The transaction price that we recognize for ZTALMY revenue includes an estimate of variable consideration. Shipping and handling costs to Orsini are recorded as selling, general and administrative expenses. The components of variable consideration include: Trade Discounts and Allowances. Product Returns and Recall. Government Rebates. Patient Assistance . Federal Contract Revenue We recognize federal contract revenue from the BARDA Contract in the period in which the allowable research and development expenses are incurred, and receivables associated with this revenue are included within accounts receivable on our interim consolidated balance sheets. This revenue is not within the scope of ASC 606 – Revenue from contracts with customers. Short-term Investments We classify our short-term investments as available-for-sale securities, which include U.S. government agency debt securities and U.S. treasury debt securities with original maturities of greater than three months. These securities are carried at fair market value, with unrealized gains and losses reported in comprehensive loss and accumulated other comprehensive income within stockholders’ equity. All of our investments were short-term in nature as of June 30, 2023. Accounts Receivable, net Net trade receivables related to ZTALMY sales, which are recorded in net accounts receivable on the consolidated balance sheets, were approximately $1.8 million and $1.3 million as of June 30, 2023 and December 31, 2022, respectively. As of both June 30, 2023 and December 31, 2022, we had no allowance for doubtful accounts. An allowance for doubtful accounts is determined based on our assessment of the creditworthiness and financial condition of our customers, aging of receivables, as well as the general economic environment. Any allowance would reduce the net receivables to the amount that is expected to be collected. Payment terms for Orsini are approximately 30 days from the shipment date. Excluding net trade receivables, accounts receivable represents amounts due to us under the BARDA contract for valid expenditures expected to be reimbursed to us under the terms of the BARDA contract and current amounts due to us from Orion Corporation (Orion) under the collaboration agreement (Note 12). Inventory Debt Issuance Costs Debt issuance costs incurred in connection with Note payable (Note 10) and revenue interest financing payable (Note 11) are amortized to interest expense over the term of the respective financing arrangement using the effective-interest method. Debt issuance costs, net of related amortization, are deducted from the carrying value of the related debt. Contract Liabilities, net When consideration is received, or such consideration is unconditionally due, from a customer prior to completing our performance obligation to the customer under the terms of a contract, a contract liability is recorded. Contract liabilities expected to be recognized as revenue or a reduction of expense within the 12 months following the balance sheet date are classified as current liabilities. Contract liabilities not expected to be recognized as revenue within the 12 months following the balance sheet date are classified as long-term liabilities. In accordance with ASC 210-20, our contract liabilities are partially offset by our contract assets as further discussed in Note 12. Liability Related to Revenue Interest Financing and Non-Cash Interest Expense In October 2022, we recognized a liability related to the Revenue Interest Financing Agreement with Sagard Healthcare Royalty Partners, LP (Sagard) under ASC 470-10 Debt and ASC 835-30 Interest - Imputation of Interest. The initial funds we received from Sagard pursuant to the terms of the Revenue Interest Financing Agreement were recorded as a liability and will be accreted under the effective interest method upon the estimated amount of future royalty payments to be made pursuant to the Revenue Interest Financing Agreement. The issuance costs were recorded as a direct deduction to the carrying amount of the liability and will be amortized under the effective interest method over the estimated period the liability will be repaid as further discussed in Note 11. We estimated the total amount of future product revenue to be generated over the life of the Revenue Interest Financing Agreement, and a significant increase or decrease in these estimates could materially impact the liability balance and the related interest expense. If the timing or amounts of any estimated future revenue and related payments change, we will prospectively adjust the effective interest and the related amortization of the liability and related issuance costs. Collaboration and Licensing Revenue We may enter into collaboration and licensing arrangements for research and development, manufacturing, and commercialization activities with counterparties for the development and commercialization of our product candidates. These arrangements may contain multiple components, such as (i) licenses, (ii) research and development activities, and (iii) the manufacturing of certain material. Payments pursuant to these arrangements may include non-refundable and refundable payments, payments upon the achievement of significant regulatory, development and commercial milestones, sales of product at certain agreed-upon amounts, and royalties on product sales. The amount of variable consideration is constrained until it is probable that the revenue is not at a significant risk of reversal in a future period. In determining the appropriate amount of revenue to be recognized as we fulfill our obligations under a collaboration agreement, we perform the following steps: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations, including whether they are capable of being distinct; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue as we satisfy each performance obligation. We must develop estimates and assumptions that require judgment to determine the underlying stand-alone selling price for each performance obligation, which determines how the transaction price is allocated among the performance obligations. The estimation of the stand-alone selling price may include such estimates as forecasted revenues and costs, development timelines, discount rates and probabilities of regulatory and commercial success. We also apply significant judgment when evaluating whether contractual obligations represent distinct performance obligations, allocating transaction price to performance obligations within a contract, determining when performance obligations have been met, assessing the recognition and future reversal of variable consideration and determining and applying appropriate methods of measuring progress for performance obligations satisfied over time. |
Cash, Cash Equivalents and Shor
Cash, Cash Equivalents and Short-Term Investments | 6 Months Ended |
Jun. 30, 2023 | |
Cash, Cash Equivalents and Short-Term Investments | |
Cash, Cash Equivalents and Short-Term Investments | 3. Cash, Cash Equivalents and Short-Term Investments million in money market funds. As of December 31, 2022, our cash and cash equivalents included million of accrued interest receivable related to our short-term investments. Amortized Cost Unrealized Gains Unrealized Losses Fair Value U.S. Treasury securities $ 34,353 $ 67 $ (154) $ 34,266 U.S. Government Agency securities 13,310 7 (34) 13,283 Total $ 47,663 $ 74 $ (188) $ 47,549 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Measurements | |
Fair Value Measurements | 4. Fair Value Measurements FASB accounting guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability (the exit price) in an orderly transaction between market participants at the measurement date. The accounting guidance outlines a valuation framework and creates a fair value hierarchy in order to increase the consistency and comparability of fair value measurements and the related disclosures. In determining fair value, we use quoted prices and observable inputs. Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from independent sources. The fair value hierarchy is broken down into three levels based on the source of inputs as follows: ● Level 1 — Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities. ● Level 2 — Valuations based on observable inputs and quoted prices in active markets for similar assets and liabilities. ● Level 3 — Valuations based on inputs that are unobservable and models that are significant to the overall fair value measurement. If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the instrument. As of June 30, 2023, all of our financial assets and liabilities were classified as Level 1 or Level 2 valuations. As of December 31, 2022, all of our financial assets and liabilities were classified as Level 1 valuations. We estimate the fair values of our financial instruments categorized as Level 2 in the fair value hierarchy, including U.S. Treasury securities and U.S. Government Agency securities, by taking into consideration valuations obtained from third-party pricing services. The pricing services use industry standard valuation models, including both income- and market-based approaches, for which all significant inputs are observable, either directly or indirectly, to estimate fair value. These inputs include reported trades of and broker/dealer quotes on the same or similar securities, benchmark yields, issuer credit spreads, benchmark securities, and other observable inputs. We obtain a single price for each financial instrument and do not adjust the prices obtained from the pricing service. The following fair value hierarchy table presents information about each major category of our financial assets and liabilities measured at fair value on a recurring basis (in thousands): Level 1 Level 2 Level 3 Total June 30, 2023 Assets Cash $ 1,014 $ — $ — $ 1,014 Money market funds (cash equivalents) 126,773 — — 126,773 U.S. Treasury securities — 34,266 — 34,266 U.S. Government Agency securities — 13,283 — 13,283 Total assets $ 127,787 $ 47,549 $ — $ 175,336 December 31, 2022 Assets Cash $ 10,569 $ — $ — $ 10,569 Money market funds (cash equivalents) 229,982 — — 229,982 Total assets $ 240,551 $ — $ — $ 240,551 |
Inventory
Inventory | 6 Months Ended |
Jun. 30, 2023 | |
Inventory | |
Inventory | 5. Inventory June 30, December 31, 2023 2022 Raw materials $ 1,805 $ — Work in process 624 — Finished goods 245 77 Total Inventories $ 2,674 $ 77 |
Accrued Expenses
Accrued Expenses | 6 Months Ended |
Jun. 30, 2023 | |
Accrued Expenses | |
Accrued Expenses | 6. Accrued Expenses Accrued expenses consisted of the following (in thousands): June 30, December 31, 2023 2022 Payroll and related costs $ 5,497 $ 7,061 Clinical trials and drug development 6,405 5,725 Professional fees 1,048 1,417 Accrued tax provision 742 2,445 Third-party commercial expenses 2,953 1,880 Short-term lease liabilities 681 637 Other 569 371 Total accrued expenses $ 17,895 $ 19,536 |
Net Loss Per Share of Common St
Net Loss Per Share of Common Stock | 6 Months Ended |
Jun. 30, 2023 | |
Net Loss Per Share of Common Stock | |
Net Loss Per Share of Common Stock | 7. Net Loss Per Share of Common Stock Basic net loss per share of common stock is computed by dividing net loss attributable to common stockholders by the weighted average number of shares of common stock outstanding during each period. Diluted net loss per share of common stock includes the effect, if any, from the potential exercise or conversion of securities, such as convertible preferred stock, stock options, and unvested restricted stock, which would result in the issuance of incremental shares of common stock. In computing the basic and diluted net loss per share applicable to common stockholders, the weighted average number of shares remains the same for both calculations due to the fact that when a net loss exists, dilutive shares are not included in the calculation. The pre-funded warrants to purchase common stock issued in connection with the November 2022 offering are included in the calculation of basic and diluted net loss per share as the exercise price of $0.001 per share is non-substantive and is virtually assured. The pre-funded warrants are more fully described in Note 8. The following potentially dilutive securities have been excluded from the computation of diluted weighted-average shares of common stock outstanding as they would be anti-dilutive: June 30, 2023 2022 Convertible preferred stock — 860,000 Restricted stock awards and restricted stock units 1,489,119 758,217 Stock options 7,220,150 5,721,407 8,709,269 7,339,624 |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2023 | |
Stockholders' Equity | |
Stockholders' Equity | 8. Stockholders’ Equity In 2005, we adopted the 2005 Stock Option and Incentive Plan (2005 Plan) that authorizes us to grant stock options, restricted stock and other equity-based awards. As of June 30, 2023, 577 options to purchase shares of common stock were outstanding pursuant to grants in connection with the 2005 Plan. Effective August 2014, we adopted our 2014 Equity Incentive Plan, as amended (2014 Plan), that authorizes us to grant stock options, restricted stock, and other equity-based awards, subject to adjustment in accordance with the 2014 Plan. As of June 30, 2023, 5,087,086 options to purchase shares of common stock were outstanding pursuant to grants in connection with the 2014 Plan, and 757,155 shares of common stock were available for future issuance. The amount, terms of grants, and exercisability provisions are determined and set by our board of directors. In accordance with the 2014 Plan, on January 1, 2023, the shares of common stock available for future grants under the 2014 Plan was increased by 2,020,111. Stock Options There were 7,220,150 stock options outstanding as of June 30, 2023 at a weighted average exercise price of $9.74 per share, including 2,132,487 stock options outstanding outside of the 2014 Plan, granted as inducements to new employees. Restricted Stock and Restricted Stock Units All issued and outstanding restricted shares of common stock are time-based, and become vested within two years of the grant date, pursuant to the 2014 Plan. Compensation expense is recorded ratably over the requisite service period. Compensation expense related to restricted stock is measured based on the fair value using the closing market price of our common stock on the date of the grant. As of June 30, 2023, we did not have any restricted shares of common stock outstanding. During the six months ended June 30, 2023, we granted 959,996 restricted stock units, which vest within three years of the grant date, pursuant to the 2014 Plan. As of June 30, 2023, we had 1,489,119 restricted stock units outstanding. Total compensation cost recognized for all stock options, restricted stock awards and restricted stock units in the statements of operations is as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Research and development $ 1,468 $ 1,397 $ 2,810 $ 2,675 Selling, general and administrative 2,423 2,420 4,822 4,521 Total $ 3,891 $ 3,817 $ 7,632 $ 7,196 Preferred Stock As of June 30, 2023 all shares of our Series A Convertible Preferred Stock (Preferred Stock) had been converted and none remained outstanding. In the six months ended June 30, 2023, 4,300 shares of our Preferred stock were converted into 860,000 shares of our common stock. Stock Issued in Connection with Ovid License Agreement Unregistered Sales of Equity Securities and Use of Proceeds Underwritten Public Offering In connection with an underwritten public offering in November 2022 and the closing of the related exercise of the underwriters’ option in December 2022, we issued a total of |
Leases
Leases | 6 Months Ended |
Jun. 30, 2023 | |
Leases | |
Leases | 9. Leases We have entered into one operating lease for real estate. This lease has a term of 78 months, and includes renewal terms which can extend the lease term by 60 months, which we include in the lease term when it is reasonably certain that we will exercise the option. As of June 30, 2023, our operating lease had a remaining lease term of 27 months. The right-of-use (ROU) asset is included in “Other assets” on our interim consolidated balance sheets as of June 30, 2023 and December 31, 2022, and represents our right to use the underlying asset for the lease term. Our obligations to make lease payments are included in both “Accrued expenses” and “Other long-term liabilities” on our interim consolidated balance sheets as of June 30, 2023 and December 31, 2022. The ROU asset was initially measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments made at or before the lease commencement date, plus any initial direct costs incurred, less any lease incentives received. The ROU asset is subsequently measured throughout the lease term at the carrying amount of the lease liability, plus initial direct costs, plus (minus) any prepaid (accrued) lease payments, less the unamortized balance of lease incentives received. As of June 30, 2023 and December 31, 2022, ROU assets were $1.1 million and $1.3 million, respectively, and operating lease liabilities were $1.7 million and $2.0 million, respectively. We have entered into various short-term operating leases, primarily for clinical trial equipment, with an initial term of twelve months or less. These leases are not recorded on our balance sheets. All operating lease expense is recognized on a straight-line basis over the lease term. During each of the three months ended June 30, 2023 and 2022, we recognized $0.1 million in total lease costs. During each of the six months ended June 30, 2023 and 2022, we recognized $0.3 million in total least costs. In all periods, we recognized less than Because the rate implicit in each lease is not readily determinable, we use our incremental borrowing rate to determine the present value of the lease payments. The weighted average incremental borrowing rate used to determine the initial value of ROU assets and lease liabilities was 11.0%, derived from a corporate yield curve based on a synthetic credit rating model using a market signal analysis. We have certain contracts for real estate which may contain lease and non-lease components which we have elected to treat as a single lease component. ROU assets for operating leases are periodically reduced by impairment losses. We use the long-lived assets impairment guidance in ASC Subtopic 360-10, Property, Plant, and Equipment – Overall, to determine whether an ROU asset is impaired, and if so, the amount of the impairment loss to recognize. As of June 30, 2023 and December 31, 2022, we have not recognized any impairment losses for our ROU assets. Maturities of operating lease liabilities as of June 30, 2023 were as follows (in thousands): Remaining six months of 2023 $ 414 2024 840 2025 642 Thereafter — 1,896 Less: imputed interest (225) Total lease liabilities $ 1,671 Current operating lease liabilities $ 681 Non-current operating lease liabilities 990 Total lease liabilities $ 1,671 |
Notes Payable
Notes Payable | 6 Months Ended |
Jun. 30, 2023 | |
Notes Payable. | |
Notes Payable | 10. Notes Payable On May 11, 2021 (Closing Date) and as amended on May 17, 2021, May 23, 2022 and October 28, 2022 (Credit Agreement) we entered into the Credit Agreement with Oaktree Fund Administration, LLC as administrative agent (Oaktree) and the lenders party thereto (collectively, the Lenders) that provides for a five-year senior secured term loan facility in an aggregate original principal amount of up to $100.0 million, available to us in four tranches (collectively, the Term Loans). Upon entering into the Credit Agreement in May 2021, we borrowed $15.0 million in term loans from the Lenders (Tranche A-1 Term Loans); upon receipt of written acceptance by the FDA of our NDA filing relating to the use of ganaxolone in CDD in September 2021 we borrowed $30.0 million of tranche A-2 term loans from the Lenders (Tranche A-2 Term Loans); and in March 2022, we borrowed $30.0 million in term loans from the Lenders that became available as a result of the approval by the FDA of ZTALMY oral suspension for the treatment of seizures associated with CDD in patients two years of age and older (Tranche B Term Loans). In May 2022, we entered into an amendment to extend the commitment date for the tranche C term loans (Tranche C Term Loans) commitment from June 30, 2023 to December 31, 2023, and to eliminate the commitment fees associated with the Tranche C Term Loans. Also in May 2022, we delivered to Oaktree a separate notice of commitment termination with respect to the tranche D term loans (Tranche D Term Loans) commitment. In October 2022, we entered into an amendment to, among other things, allow for the consummation of a revenue interest financing agreement (Revenue Interest Financing Agreement) with Sagard Health Royalty Partners (Sagard) and the transactions thereunder. In addition, the October 2022 amendment increased the exit fee due by us upon any repayment, whether as a prepayment or a scheduled repayment, of the principal of the loans under the Credit Agreement from 2.00% to 2.67%. Under the terms of the Credit Agreement, we may, at our sole discretion, borrow from the Lenders up to an additional $25.0 million in term loans subject to the following milestone event: ● Through December 31, 2023, $25.0 million of Tranche C Term Loans will be available for draw if we complete one or more financings (including through the issuance of common stock, convertible debt, subordinated debt, a synthetic royalty, or a sublicense) resulting in gross proceeds to us of at least $40.0 million and net proceeds to us of at least $36.0 million (Qualified Financing Condition). However, the availability of this tranche is also subject to either our current Phase 3 trial in RSE or a Phase 3 trial in TSC achieving statistical significance (p value < 0.05) across all primary endpoints and ganaxolone must be generally well tolerated, with a safety profile generally consistent with previous clinical trials . We do not currently anticipate data from either Phase 3 trial prior to December 31, 2023. We satisfied the Qualified Financing Condition in connection with our November 2022 underwritten public offering; however, if we are unable to satisfy the remaining condition, we will not be able to draw down the remaining tranche of loans and may not be able to obtain alternative financing on commercially reasonable terms or at all. In addition, the Credit Agreement contains a minimum liquidity covenant that requires us to maintain cash and cash equivalents of at least $15.0 million from the funding date of the Tranche B Term Loans until the maturity of the Term Loans. The Term Loans will be guaranteed by certain of our future subsidiaries (Guarantors). Our obligations under the Credit Agreement are secured by a pledge of substantially all of our assets and will be secured by a pledge of substantially all of the assets of the Guarantors. The Term Loans mature on May 11, 2026 (Maturity Date). The Term Loans bear interest at a fixed per annum rate (subject to increase during an event of default) of 11.50% , and we are required to make quarterly interest payments until the Maturity Date. We are also required to make quarterly principal payments beginning on June 30, 2024 in an amount equal to 5.0% of the aggregate amount of the Term Loans outstanding on June 30, 2024, and continuing until the Maturity Date. On the Maturity Date, we are required to pay in full all outstanding Term Loans and other amounts owed under the Credit Agreement. At the time of borrowing any tranche of the Term Loans, we are required to pay an upfront fee of 2.0% of the aggregate principal amount borrowed at that time. In addition, a commitment fee of 75 basis points per annum began to accrue on each of the tranche B, C, and D commitments for the period beginning 120 days after the funding date of the Tranche A-2 Term Loans, and continued until the applicable tranche was either funded or terminated, at which time the related commitment fees were due. The Tranche A-2 Term Loans were funded on September 27, 2021, and as such, we began accruing the commitment fees for tranche B, C, and D Term Loans 120 days later, on January 25, 2022. We drew down the additional $30.0 million of Tranche B Term Loans in March 2022, and paid less than $0.1 million in commitment fees related to Tranche B Term Loans. The May 2022 amendment eliminated the commitment fees related to the Tranche C Term Loans, and separately, we terminated the Tranche D Term Loans in May 2022. We may prepay all or any portion of the Term Loans, and are required to make mandatory prepayments of the Term Loans from the proceeds of asset sales, casualty and condemnation events, and prohibited debt issuances, subject to certain exceptions. All mandatory and voluntary prepayments of the Term Loans are subject to prepayment premiums equal to (i) of the principal prepaid if prepayment occurs after May 11, 2024 but on or before May 11, 2025. If prepayment occurs after May 11, 2025, We are also In addition, we are required to pay an exit fee in an amount equal to 2.67% of all principal repaid, whether as a mandatory prepayment, voluntary prepayment, or a scheduled repayment. Prior to the October 2022 amendment to the Credit Agreement, the exit fee was 2.0%. The increase in the exit fee resulted in an additional $0.5 million of debt issuance costs that are classified as a contra-liability on the consolidated balance sheets and is being recognized as interest expense over the term of the loan using the effective interest method. In addition to the minimum liquidity covenant, we are subject to a number of affirmative and restrictive covenants under the Credit Agreement, including limitations on our ability and our subsidiaries’ abilities, among other things, to incur additional debt, grant or permit additional liens, make investments and acquisitions, merge or consolidate with others, dispose of assets, pay dividends and distributions, and enter into affiliate transactions, subject to certain exceptions. As of June 30, 2023, we were in compliance with all covenants. Upon the occurrence of certain events, including but not limited to our failure to satisfy our payment obligations under the Credit Agreement, the breach of certain of our other covenants under the Credit Agreement, the occurrence of cross defaults to other indebtedness, or defaults related to enforcement action by the FDA or other Regulatory Authority or recall of ganaxolone, Oaktree and the Lenders will have the right, among other remedies, to accelerate all amounts outstanding under the Term Loans and declare all principal, interest, and outstanding fees immediately due and payable. In March 2022, we borrowed $30.0 million upon the approval by the FDA of ZTALMY for CDD and incurred debt issuance costs of $1.8 million, including the exit fee of $0.6 million, that are classified as contra-liabilities on our consolidated balance sheets and are being recognized as interest expenses over the term of the loan using the effective interest method. In September 2021, we borrowed $30.0 million upon receipt of written acceptance by the FDA of our NDA filing relating to the use of ganaxolone in the treatment of CDD and incurred debt issuance costs of $1.2 million, including the exit fee of $0.6 million, that are classified as contra-liabilities on our consolidated balance sheets and are being recognized as interest expenses over the term of the loan using the effective-interest method. In May 2021, we borrowed $15.0 million upon entering into the Credit Agreement and incurred debt issuance costs of $4.4 million, including the exit fee of $0.3 million, that are classified as a contra-liabilities on the consolidated balance sheet and are being recognized as interest expenses over the term of the loan using the effective-interest method. For the six months ended June 30, 2023, we recognized interest expense of $5.3 million, of which $4.3 million was interest on the Term Loans and $1.0 million was non-cash interest expense related to the amortization of debt issuance costs. The following table summarizes the composition of Notes payable as reflected on the consolidated balance sheet as of June 30, 2023 (in thousands): Gross proceeds $ 75,000 Contractual exit fee 2,003 Unamortized debt discount and issuance costs (5,017) Total note payable $ 71,986 Current portion of note payable 3,850 Non-current portion of note payable 68,136 Total note payable $ 71,986 The aggregate maturities of Notes payable as of June 30, 2023 are as follows (in thousands): Remainder of 2023 $ — 2024 11,250 2025 15,000 2026 48,750 Total $ 75,000 |
Revenue Interest Financing Agre
Revenue Interest Financing Agreement | 6 Months Ended |
Jun. 30, 2023 | |
Revenue Interest Financing Agreement | |
Revenue Interest Financing Agreement | 11. Revenue Interest Financing Agreement On October 28, 2022 (Closing Date), we entered into the Revenue Interest Financing Agreement with S agard to provide funding for our development and commercialization of ganaxolone and related pharmaceutical products, including the commercial launch of ZTALMY, and for working capital and general administrative purposes. In exchange for the Investment Amount, we have agreed to make quarterly payments to Sagard (Payments) as follows: (i) for each calendar quarter from and after the Closing Date through and including the quarter ended June 30, 2026, an amount equal to 7.5% of (a) our U.S. net sales of ZTALMY and all other pharmaceutical products that contain ganaxolone (Net Sales), in each case with any dosage form, dosing regimen, or strength, or any improvements related thereto (collectively, Included Products) and (b) certain other payments received by us in connection with the manufacture, development and sale of the Included Products in the U.S. (Other Included Payments, and, together with Net Sales, Product Revenue); and (ii) for each calendar quarter following the calendar quarter ended June 30, 2026, an amount equal to (x) 15.0% of the first $100 million in annual Product Revenue of the Included Products and (y) 7.5% of annual Product Revenue of the Included Products in excess of $100 million. The Payments are subject to a hard cap equal to 190% of the Investment Amount (Hard Cap) or $61.8 million. Sagard’s right to receive payments will terminate when Sagard has received payments in respect of the Included Products, including any additional payments described below, equal to the Hard Cap. Further, we have the right to make voluntary prepayments to Sagard, and such payments will be credited against the Hard Cap. If Sagard has not received aggregate payments equaling at least 100% of the Investment Amount by December 31, 2027 or at least 190% of the Investment Amount by December 31, 2032 (each, a Minimum Amount), then we will be obligated to make a cash payment to Sagard in an amount sufficient to gross up Sagard up to the applicable Minimum Amount within a specified period of time after each reference date. The obligations under the Revenue Interest Financing Agreement, including the Payments, will be guaranteed by certain of our future subsidiaries that are required to become a party thereto as guarantors (Guarantors). Our obligations under the Revenue Interest Financing Agreement and the guarantee of such obligations are secured, subject to customary permitted liens and other agreed upon exceptions and subject to an intercreditor agreement with Oaktree as administrative agent for the lenders under our credit agreement (as described below, the Credit Agreement), by a pledge of substantially all of our and the Guarantors’ assets that relate to, or are used or held for use for, the development, manufacture, use and/or commercialization of ZTALMY and all other pharmaceutical products that contain ganaxolone in the U.S., including the Product Revenue, pursuant to the terms of the Security Agreement dated as of the Closing Date by and among us, the Guarantors from time to time party thereto, and Sagard (Security Agreement). At any time, we have the right, but not the obligation (Call Option), to repurchase all, but not less than all, of Sagard’s interest in the Payments at a repurchase price (Put/Call Price) equal to: (a) on or before the third anniversary of the Closing Date, 160% of the Investment Amount; (b) after the third anniversary but on or prior to the fourth anniversary of the Closing Date, 180% of the Investment Amount; and (c) after the fourth anniversary of the Closing Date, 190% of the Investment Amount, in each case, less the aggregate of all of our payments in respect of the Payments made to Sagard prior to such date. The Revenue Interest Financing Agreement contains certain restrictions on our and our subsidiaries’ abilities, among other things, to incur additional debt, grant or permit additional liens, make investments and acquisitions, dispose of assets, pay dividends and distributions and enter into affiliate transactions, in each case, subject to certain exceptions. In addition, the Revenue Interest Financing Agreement contains a financial covenant that requires us to maintain at all times cash and cash equivalents in certain deposit accounts in an amount at least equal to (i) from the Closing Date until the repayment of the loans under the Credit Agreement, $15.0 million and (ii) thereafter, $10.0 million. In connection with the Revenue Interest Financing Agreement, on the Closing Date, we entered into an amendment to the Credit Agreement with Oaktree, which is fully described in Note 10. Issuance costs pursuant to the Revenue Interest Financing Agreement consisted primarily of advisory and legal fees million. These issuance costs were recorded as a direct deduction to the carrying amount of the liability and will be amortized under the effective interest method over the estimated period the liability will be repaid. For the six months ended June 30, 2023, w The following table summarizes the activity of the Revenue Interest Financing Agreement for the six months ended June 30, 2023 (in thousands): Revenue Interest Financing Balance at December 31, 2022 $ 30,877 Non-cash interest expense in the six months ended June 30, 2023 2,916 Amortization of debt discount in the six months ended June 30, 2023 134 Payments made in the six months ended June 30, 2023 (421) Revenue Interest Financing Balance at June 30, 2023 $ 33,506 Current portion of revenue interest financing liability $ 1,556 Long-term portion of revenue interest financing liability 31,950 Revenue Interest Financing Balance at June 30, 2023 $ 33,506 |
Collaboration Revenue
Collaboration Revenue | 6 Months Ended |
Jun. 30, 2023 | |
Collaboration Revenue | |
Collaboration Revenue | 12. Collaboration Revenue Orion Collaboration Agreement In July 2021, we entered into a collaboration agreement (Orion Collaboration Agreement) with Orion. The Orion Collaboration Agreement falls under the scope of ASC Topic 808, Collaborative Arrangements (ASC 808) as both parties are active participants in the arrangement that are exposed to significant risks and rewards. While this arrangement is in the scope of ASC 808, we analogize to ASC 606 for some aspects of this arrangement, including for the delivery of a good or service (i.e., a unit of account). Revenue recognized by analogizing to ASC 606 is recorded as collaboration revenue on the consolidated statements of operations. Under the terms of the Orion Collaboration Agreement, we granted Orion an exclusive, royalty-bearing, sublicensable license to certain of our intellectual property rights with respect to commercializing biopharmaceutical products incorporating our product candidate ganaxolone (Licensed Products) in the European Economic Area, the United Kingdom and Switzerland (collectively, the Territory) for the diagnosis, prevention and treatment of certain human diseases, disorders or conditions (Field), initially in the indications of CDD, TSC and RSE. We will be responsible for the continued development of Licensed Products and regulatory interactions related thereto, including conducting and sponsoring all clinical trials, provided that Orion may conduct certain post-approval studies in the Territory. Orion will be responsible, at Orion’s sole cost and expense, for the commercialization of any Licensed Product in the Field in the Territory. Under the terms of the Orion Collaboration Agreement, we received a €25.0 million ($29.6 million) upfront payment from Orion in July 2021. In connection with the upfront fee, we agreed to provide Orion with the results of a planned genotoxicity study on the M2 metabolite of ganaxolone, a “Combined Micronucleus & Comet study in vivo.” In May 2022, the final study report was received, which confirmed that no genotoxicity was found, as measured by formation of micronuclei in the bone marrow or comet morphology in the liver. In the event that the results of the study were positive, based on the criteria set forth in the study’s protocol, Orion would have had the right to terminate the Orion Collaboration Agreement within ninety 90 The Orion Collaboration Agreement shall remain effective until the date of expiration of the last to expire Royalty Term, which is defined as the period beginning on the date of the first commercial sale Licensed Product in such country and ending on the latest to occur of (a) the tenth (10th) anniversary of the first commercial sale of Licensed Product in such country, (b) the expiration of the last-to-expire licensed patent covering the manufacture, use or sale of such Licensed Product in such country, and (c) the expiration of regulatory exclusivity period, if any, for such Licensed Product in such country. The Orion Collaboration Agreement has a term of at least ten ( 10 In accordance with the guidance, we identified the following commitments under the arrangement: (i) exclusive rights to develop, use, sell, have sold, offer for sale and import any product comprised of Licensed Product (License), (ii) development and regulatory activities (Development and Regulatory Activities), and (iii) requirement to supply Orion with the Licensed Product at an agreed upon price (Supply of Licensed Product). We determined that these three commitments represent distinct performance obligations for purposes of recognizing revenue or reducing expense, which we will recognize such revenue or expense, as applicable, as we fulfill these performance obligations. At contract inception, we determined that the non-refundable portion of the upfront payment plus the research and development reimbursement constitutes the transaction price as of the outset of the Orion Collaboration Agreement. The refundable portion of the upfront payment and the future potential regulatory and development milestone payments were fully constrained at contract inception as the risk of significant revenue reversal related to these amounts had not yet been resolved. During 2022, the refundable portion of the upfront payment was determined to be included in the transaction price as the final genotoxicity study on the M2 metabolite of ganaxolone was received as described above, and the remaining The transaction price was allocated to the three performance obligations based on the estimated stand-alone selling prices at contract inception. The stand-alone selling price of the License was based on a discounted cash flow approach and considered several factors including, but not limited to, discount rate, development timeline, regulatory risks, estimated market demand and future revenue potential using an adjusted market approach. The stand-alone selling price of the Development and Regulatory Activities and the Supply of Licensed Product was estimated using the expected cost-plus margin approach. As of December 31, 2022, we allocated the transaction price to the performance obligations as described below and recorded the remaining $12.7 million of the upfront payment as collaboration revenue during the year ended December 31, 2022. During 2022, we amortized $1.1 million of the transaction price associated with the Development and Regulatory Services as a reduction of research and development costs. These reductions to transaction price resulted in a total contract liability of $15.1 million as of December 31, 2022. In accordance with ASC 210-20, the contract liability of $15.1 million was offset by a contract asset of $5.1 million related to the reimbursement of research and development costs, resulting in a net contract liability of $10.0 million as of December 31, 2022. Transaction Price and Net Contract Liability as of December 31, 2022: Cumulative Collaboration Transaction Revenue Recognized Contract Price as of December 31, 2022 Liability License $ 21,660 $ 21,660 $ - Development and Regulatory Services 6,717 1,158 5,559 Supply of Licensed Product 9,503 - 9,503 $ 37,880 $ 22,818 15,062 Less Total Contract Asset 5,079 Net Contract Liability $ 9,983 During the six months ended June 30, 2023, we amortized $0.8 million of the transaction price associated with the Development and Regulatory Services as a reduction of research and development costs. These reductions to the transaction price resulted in a total contract liability of $14.2 million as of June 30, 2023. In accordance with ASC 210-20, the contract liability of million as of June 30, 2023. Transaction Price and Net Contract Liability as of June 30, 2023: Cumulative Collaboration Transaction Revenue Recognized Contract Price as of June 30, 2023 Liability License $ 21,660 $ 21,660 $ - Development and Regulatory Services 6,717 1,995 4,722 Supply of Licensed Product 9,503 - 9,503 $ 37,880 $ 23,655 14,225 Less Total Contract Asset 3,992 Net Contract Liability $ 10,233 We incurred $2.0 million of incremental costs in connection with obtaining the Orion Collaboration Agreement. These contract acquisition costs were allocated consistent with the transaction price, resulting in $1.1 million of expense recorded to selling, general and administrative expense commensurate with the recognition of the License performance obligation and $0.9 million recorded as capitalized contract costs, included in other current assets and other assets, which are being amortized as Development and Regulatory Services and Supply of Licensed Product obligations are met. We reevaluate the transaction price and the total estimated costs expected to be incurred to satisfy the performance obligations and adjust the deferred revenue at the end of each reporting period. Such changes will result in a change to the amount of collaboration revenue recognized and deferred revenue. Tenacia Collaboration Agreement On November 16, 2022 (Effective Date), we entered into a Collaboration and Supply Agreement (Tenacia Collaboration Agreement) with Tenacia Biotechnology (Shanghai) Co., Ltd. (Tenacia). The Tenacia Collaboration Agreement falls under the scope of ASC Topic 808, Collaborative Arrangements (ASC 808) as both parties are active participants in the arrangement that are exposed to significant risks and rewards. While this arrangement is in the scope of ASC 808, we analogize to ASC 606 for some aspects of this arrangement, including for the delivery of a good or service (i.e., a unit of account). Revenue recognized by analogizing to ASC 606 is recorded as collaboration revenue on the consolidated statements of operations. Under the terms of the Tenacia Collaboration Agreement, we granted Tenacia an exclusive, royalty-bearing, sublicensable license to certain of our intellectual property rights to develop, commercialize and otherwise exploit certain products incorporating certain oral and intravenous formulations of our product candidate ganaxolone (Licensed Products) in Mainland China, Hong Kong, Macau and Taiwan (collectively, Territory) for the diagnosis, prevention and treatment of certain human diseases, disorders or conditions (Field), initially for the treatment of cyclin-dependent kinase-like 5 deficiency disorder, tuberous sclerosis complex and SE (including refractory and established SE) (collectively, the Initial Indications). The collaboration can be expanded to include additional indications and formulations of ganaxolone pursuant to a right of first negotiation. Under the terms of the Tenacia Collaboration Agreement, Tenacia agreed to pay us an upfront cash payment of $10 million (the Upfront Fee) within forty-five Tenacia will be primarily responsible for the development of Licensed Products in the Territory and regulatory interactions related thereto, including conducting and sponsoring clinical studies in the Field in the Territory to support regulatory filings in the Territory. All regulatory approvals filed by Tenacia in the Territory will be in the name of and owned by us unless otherwise required by applicable law, in which case such regulatory approvals would be in the name of and owned by Tenacia for the benefit of us. We and Tenacia agreed to enter into clinical and commercial supply agreements pursuant to which we will supply Tenacia with its requirements of Licensed Products necessary for Tenacia to develop and commercialize Licensed Products in the Field in the Territory. The parties entered into the clinical and commercial supply agreement in May 2023. The agreement contains pricing, delivery, acceptance, payment, termination, forecasting, and other terms consistent with the Tenacia Collaboration Agreement, as well as certain quality assurance, indemnification, liability and other standard industry terms. Tenacia will be responsible for, at Tenacia’s sole cost and expense, obtaining regulatory approval and commercializing the Licensed Product in the Field in Mainland China. In accordance with the guidance, we identified the following commitments under the arrangement: (i) grant to Tenacia the exclusive rights to develop, commercialize and otherwise exploit Licensed Product in the Field in the Territory (License) and (ii) requirement to supply Tenacia with the Licensed Product at an agreed upon price (Supply of Licensed Product). We determined that these two commitments represent distinct performance obligations for purposes of recognizing revenue or reducing expense, which it will recognize such revenue or expense, as applicable, as it fulfills these performance obligations. The transaction price was allocated to the two performance obligations based on the estimated stand-alone selling prices at contract inception. The stand-alone selling price of the License was based on a discounted cash flow approach and considered several factors including, but not limited to, discount rate, development timeline, regulatory risks, estimated market demand and future revenue potential using an adjusted market approach. The stand-alone selling price of the Supply of Licensed Product was estimated using the expected cost-plus margin approach. As of December 31, 2022, we allocated the transaction price to the performance obligations as described below. There was no activity in the three and six months ended June 30, 2023. The cumulative collaboration revenue recognized as of June 30, 2023 is $3.0 million, which was the $3.0 million transaction price associated with the License as revenue for the year ended December 31, 2022. No license revenue was recorded in the three and six months ended June 30, 2023. There was a total contract liability of $7.0 million as of both June 30, 2023 and December 31, 2022. In accordance with ASC 210-20, the contract liability of $7.0 million is offset by a contract asset of $0.7 million, resulting in a net contract liability of $6.3 million as of both June 30, 2023 and December 31, 2022. Transaction Price and Net Contract Liability as of June 30, 2023 and December 31, 2022: Cumulative Collaboration Transaction Revenue Recognized Contract Price as of June 30, 2023 and December 31, 2022 Liability License $ 2,998 $ 2,998 $ - Supply of Licensed Product 7,002 - 7,002 $ 10,000 $ 2,998 7,002 Less Total Contract Asset 700 Net Contract Liability $ 6,302 In December 2022, we incurred $1.0 million of incremental costs in obtaining the Tenacia Collaboration Agreement. These contract acquisition costs were allocated consistent with the transaction price, resulting in $0.1 million of expense recorded to General and administrative expense and $0.2 million recorded to cost of collaboration revenue in the period ended December 31, 2022, commensurate with the recognition of the License performance obligation, and $0.7 million recorded as capitalized contract costs, which will be amortized as Supply of License Product obligations are met. We reevaluate the transaction price and the total estimated costs expected to be incurred to satisfy the performance obligations and adjust the deferred revenue at the end of each reporting period. Such changes will result in a change to the amount of collaboration revenue recognized and deferred revenue. Biologix Distribution and Supply Agreement In May 2023, we entered into an exclusive distribution and supply agreement (Biologix Agreement) with Biologix FZCo (Biologix), whereby Biologix has the right to distribute and sell ganaxolone in Algeria, Bahrain, Egypt, Iraq, Jordan, Kingdom of Saudi Arabia, Kuwait, Lebanon, Libya, Morocco, Oman, Qatar, Tunisia and United Arab Emirates. In exchange for distribution rights, we will be the exclusive supplier of our products to Biologix on terms set forth in the respective agreements in exchange for a negotiated purchase price for the products. Upon execution of the Biologix Agreement, we received an upfront payment of million which is to be amortized over the term of the agreement. We may be entitled to additional fees upon regulatory milestones. In the three and six months ended June 30, 2023, we recorded less than |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Summary of Significant Accounting Policies | |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim consolidated financial statements include the accounts of Marinus Pharmaceuticals, Inc. (a Delaware corporation) as well as the accounts of Marinus Pharmaceuticals Emerald Limited (an Ireland company incorporated in February 2021), a wholly owned subsidiary requiring consolidation. Marinus Pharmaceuticals Emerald Limited serves as a corporate presence in the European Union for regulatory purposes. The unaudited interim consolidated financial statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Accordingly, they do not include all information and disclosures necessary for a presentation of our financial position, results of operations and cash flows in conformity with generally accepted accounting principles in the U.S. (GAAP) for annual financial statements. In the opinion of management, these unaudited interim consolidated financial statements reflect all adjustments, consisting primarily of normal recurring accruals, necessary for a fair presentation of our financial position and results of operations and cash flows for the periods presented. The results of operations for interim periods are not necessarily indicative of the results for the full year. These unaudited interim consolidated financial statements should be read in conjunction with the audited financial statements for the year ended December 31, 2022 and accompanying notes thereto included in our Annual Report on Form 10-K filed with the SEC on March 9, 2023. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with 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 financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from such estimates. |
Product Revenue, net | Product Revenue, net We recognize ZTALMY revenue in accordance with ASC 606 – Revenue from contracts with customers. Our revenue recognition analysis consists of the following steps: (i) identification of the promised goods in the contract; (ii) determination of whether the promised goods are performance obligations, including whether they are capable of being distinct; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue as we satisfy each performance obligation. Our first FDA approved product, ZTALMY, became available for commercial sale and shipment in the third quarter of 2022. We have three customers, one of which, Orsini Pharmaceutical Services, LLC (Orsini), a specialty pharmacy that dispenses ZTALMY directly to patients, represents over 99% of our ZTALMY revenue to date. Our contract with Orsini has a single performance obligation to deliver ZTALMY upon receipt of a purchase order, which is satisfied when Orsini receives ZTALMY. We recognize ZTALMY revenue at the point in time when control of ZTALMY is transferred to Orsini, which is upon delivery to Orsini. The transaction price that we recognize for ZTALMY revenue includes an estimate of variable consideration. Shipping and handling costs to Orsini are recorded as selling, general and administrative expenses. The components of variable consideration include: Trade Discounts and Allowances. Product Returns and Recall. Government Rebates. Patient Assistance . |
Federal Contract Revenue | Federal Contract Revenue We recognize federal contract revenue from the BARDA Contract in the period in which the allowable research and development expenses are incurred, and receivables associated with this revenue are included within accounts receivable on our interim consolidated balance sheets. This revenue is not within the scope of ASC 606 – Revenue from contracts with customers. |
Short-term Investments | Short-term Investments We classify our short-term investments as available-for-sale securities, which include U.S. government agency debt securities and U.S. treasury debt securities with original maturities of greater than three months. These securities are carried at fair market value, with unrealized gains and losses reported in comprehensive loss and accumulated other comprehensive income within stockholders’ equity. All of our investments were short-term in nature as of June 30, 2023. |
Accounts Receivable, net | Accounts Receivable, net Net trade receivables related to ZTALMY sales, which are recorded in net accounts receivable on the consolidated balance sheets, were approximately $1.8 million and $1.3 million as of June 30, 2023 and December 31, 2022, respectively. As of both June 30, 2023 and December 31, 2022, we had no allowance for doubtful accounts. An allowance for doubtful accounts is determined based on our assessment of the creditworthiness and financial condition of our customers, aging of receivables, as well as the general economic environment. Any allowance would reduce the net receivables to the amount that is expected to be collected. Payment terms for Orsini are approximately 30 days from the shipment date. Excluding net trade receivables, accounts receivable represents amounts due to us under the BARDA contract for valid expenditures expected to be reimbursed to us under the terms of the BARDA contract and current amounts due to us from Orion Corporation (Orion) under the collaboration agreement (Note 12). |
Inventory | Inventory |
Debt Issuance Costs | Debt Issuance Costs Debt issuance costs incurred in connection with Note payable (Note 10) and revenue interest financing payable (Note 11) are amortized to interest expense over the term of the respective financing arrangement using the effective-interest method. Debt issuance costs, net of related amortization, are deducted from the carrying value of the related debt. |
Contract Liabilities, net | Contract Liabilities, net When consideration is received, or such consideration is unconditionally due, from a customer prior to completing our performance obligation to the customer under the terms of a contract, a contract liability is recorded. Contract liabilities expected to be recognized as revenue or a reduction of expense within the 12 months following the balance sheet date are classified as current liabilities. Contract liabilities not expected to be recognized as revenue within the 12 months following the balance sheet date are classified as long-term liabilities. In accordance with ASC 210-20, our contract liabilities are partially offset by our contract assets as further discussed in Note 12. |
Liability Related to Revenue Interest Financing and Non-Cash Interest Expense | Liability Related to Revenue Interest Financing and Non-Cash Interest Expense In October 2022, we recognized a liability related to the Revenue Interest Financing Agreement with Sagard Healthcare Royalty Partners, LP (Sagard) under ASC 470-10 Debt and ASC 835-30 Interest - Imputation of Interest. The initial funds we received from Sagard pursuant to the terms of the Revenue Interest Financing Agreement were recorded as a liability and will be accreted under the effective interest method upon the estimated amount of future royalty payments to be made pursuant to the Revenue Interest Financing Agreement. The issuance costs were recorded as a direct deduction to the carrying amount of the liability and will be amortized under the effective interest method over the estimated period the liability will be repaid as further discussed in Note 11. We estimated the total amount of future product revenue to be generated over the life of the Revenue Interest Financing Agreement, and a significant increase or decrease in these estimates could materially impact the liability balance and the related interest expense. If the timing or amounts of any estimated future revenue and related payments change, we will prospectively adjust the effective interest and the related amortization of the liability and related issuance costs. |
Collaboration and Licensing Revenue | Collaboration and Licensing Revenue We may enter into collaboration and licensing arrangements for research and development, manufacturing, and commercialization activities with counterparties for the development and commercialization of our product candidates. These arrangements may contain multiple components, such as (i) licenses, (ii) research and development activities, and (iii) the manufacturing of certain material. Payments pursuant to these arrangements may include non-refundable and refundable payments, payments upon the achievement of significant regulatory, development and commercial milestones, sales of product at certain agreed-upon amounts, and royalties on product sales. The amount of variable consideration is constrained until it is probable that the revenue is not at a significant risk of reversal in a future period. In determining the appropriate amount of revenue to be recognized as we fulfill our obligations under a collaboration agreement, we perform the following steps: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations, including whether they are capable of being distinct; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue as we satisfy each performance obligation. We must develop estimates and assumptions that require judgment to determine the underlying stand-alone selling price for each performance obligation, which determines how the transaction price is allocated among the performance obligations. The estimation of the stand-alone selling price may include such estimates as forecasted revenues and costs, development timelines, discount rates and probabilities of regulatory and commercial success. We also apply significant judgment when evaluating whether contractual obligations represent distinct performance obligations, allocating transaction price to performance obligations within a contract, determining when performance obligations have been met, assessing the recognition and future reversal of variable consideration and determining and applying appropriate methods of measuring progress for performance obligations satisfied over time. |
Cash, Cash Equivalents and Sh_2
Cash, Cash Equivalents and Short-Term Investments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Cash, Cash Equivalents and Short-Term Investments | |
Schedule of short-term investments | Amortized Cost Unrealized Gains Unrealized Losses Fair Value U.S. Treasury securities $ 34,353 $ 67 $ (154) $ 34,266 U.S. Government Agency securities 13,310 7 (34) 13,283 Total $ 47,663 $ 74 $ (188) $ 47,549 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Measurements | |
Summary of major categories of financial assets and liabilities measured at fair value on a recurring basis | The following fair value hierarchy table presents information about each major category of our financial assets and liabilities measured at fair value on a recurring basis (in thousands): Level 1 Level 2 Level 3 Total June 30, 2023 Assets Cash $ 1,014 $ — $ — $ 1,014 Money market funds (cash equivalents) 126,773 — — 126,773 U.S. Treasury securities — 34,266 — 34,266 U.S. Government Agency securities — 13,283 — 13,283 Total assets $ 127,787 $ 47,549 $ — $ 175,336 December 31, 2022 Assets Cash $ 10,569 $ — $ — $ 10,569 Money market funds (cash equivalents) 229,982 — — 229,982 Total assets $ 240,551 $ — $ — $ 240,551 |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Inventory | |
Schedule of inventory | June 30, December 31, 2023 2022 Raw materials $ 1,805 $ — Work in process 624 — Finished goods 245 77 Total Inventories $ 2,674 $ 77 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Accrued Expenses | |
Schedule of accrued expenses | Accrued expenses consisted of the following (in thousands): June 30, December 31, 2023 2022 Payroll and related costs $ 5,497 $ 7,061 Clinical trials and drug development 6,405 5,725 Professional fees 1,048 1,417 Accrued tax provision 742 2,445 Third-party commercial expenses 2,953 1,880 Short-term lease liabilities 681 637 Other 569 371 Total accrued expenses $ 17,895 $ 19,536 |
Net Loss Per Share of Common _2
Net Loss Per Share of Common Stock (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Net Loss Per Share of Common Stock | |
Schedule of antidilutive securities excluded from the computation of diluted weighted average shares outstanding | June 30, 2023 2022 Convertible preferred stock — 860,000 Restricted stock awards and restricted stock units 1,489,119 758,217 Stock options 7,220,150 5,721,407 8,709,269 7,339,624 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Restricted Stock and Restricted Stock Units (RSUs) | |
Schedule of total compensation cost recognized in the statement of operations | Total compensation cost recognized for all stock options, restricted stock awards and restricted stock units in the statements of operations is as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Research and development $ 1,468 $ 1,397 $ 2,810 $ 2,675 Selling, general and administrative 2,423 2,420 4,822 4,521 Total $ 3,891 $ 3,817 $ 7,632 $ 7,196 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Leases | |
Schedule of maturities of operating lease liabilities | Maturities of operating lease liabilities as of June 30, 2023 were as follows (in thousands): Remaining six months of 2023 $ 414 2024 840 2025 642 Thereafter — 1,896 Less: imputed interest (225) Total lease liabilities $ 1,671 Current operating lease liabilities $ 681 Non-current operating lease liabilities 990 Total lease liabilities $ 1,671 |
Notes Payable (Tables)
Notes Payable (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Payable. | |
Summary of composition of Notes payable | The following table summarizes the composition of Notes payable as reflected on the consolidated balance sheet as of June 30, 2023 (in thousands): Gross proceeds $ 75,000 Contractual exit fee 2,003 Unamortized debt discount and issuance costs (5,017) Total note payable $ 71,986 Current portion of note payable 3,850 Non-current portion of note payable 68,136 Total note payable $ 71,986 |
Schedule of maturities of Notes payable over the next five years | The aggregate maturities of Notes payable as of June 30, 2023 are as follows (in thousands): Remainder of 2023 $ — 2024 11,250 2025 15,000 2026 48,750 Total $ 75,000 |
Revenue Interest Financing Ag_2
Revenue Interest Financing Agreement (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Revenue Interest Financing Agreement | |
Summary of the activity of Revenue Interest Financing Agreement | The following table summarizes the activity of the Revenue Interest Financing Agreement for the six months ended June 30, 2023 (in thousands): Revenue Interest Financing Balance at December 31, 2022 $ 30,877 Non-cash interest expense in the six months ended June 30, 2023 2,916 Amortization of debt discount in the six months ended June 30, 2023 134 Payments made in the six months ended June 30, 2023 (421) Revenue Interest Financing Balance at June 30, 2023 $ 33,506 Current portion of revenue interest financing liability $ 1,556 Long-term portion of revenue interest financing liability 31,950 Revenue Interest Financing Balance at June 30, 2023 $ 33,506 |
Collaboration Revenue (Tables)
Collaboration Revenue (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Collaboration Revenue | |
Schedule of allocation of the transaction price to the performance obligations | Cumulative Collaboration Transaction Revenue Recognized Contract Price as of December 31, 2022 Liability License $ 21,660 $ 21,660 $ - Development and Regulatory Services 6,717 1,158 5,559 Supply of Licensed Product 9,503 - 9,503 $ 37,880 $ 22,818 15,062 Less Total Contract Asset 5,079 Net Contract Liability $ 9,983 Cumulative Collaboration Transaction Revenue Recognized Contract Price as of June 30, 2023 Liability License $ 21,660 $ 21,660 $ - Development and Regulatory Services 6,717 1,995 4,722 Supply of Licensed Product 9,503 - 9,503 $ 37,880 $ 23,655 14,225 Less Total Contract Asset 3,992 Net Contract Liability $ 10,233 Cumulative Collaboration Transaction Revenue Recognized Contract Price as of June 30, 2023 and December 31, 2022 Liability License $ 2,998 $ 2,998 $ - Supply of Licensed Product 7,002 - 7,002 $ 10,000 $ 2,998 7,002 Less Total Contract Asset 700 Net Contract Liability $ 6,302 |
Description of the Business a_2
Description of the Business and Liquidity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Liquidity | |||||||
Net loss | $ 31,934 | $ 34,730 | $ 39,433 | $ 19,361 | $ 66,664 | $ 58,794 | |
Accumulated deficit | $ 497,185 | $ 497,185 | $ 430,521 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Other (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 USD ($) customer | Dec. 31, 2022 USD ($) | |
Product Revenue, net | ||
Number of customers | customer | 3 | |
Trade Receivables, net | ||
Accounts receivable, net | $ 5,234 | $ 6,348 |
Allowance for doubtful accounts. | $ 0 | 0 |
Payment terms | 30 days | |
ZTALMY | ||
Trade Receivables, net | ||
Accounts receivable, net | $ 1,800 | $ 1,300 |
Inventory | ||
Cost of product and materials included in research and development expenses prior to FDA approval | $ 2,000 | |
ZTALMY | Revenue Benchmark | Customer Concentration Risk | ||
Product Revenue, net | ||
Concentration risk, as a percent | 99% | |
Number of customers | customer | 1 |
Cash, Cash Equivalents and Sh_3
Cash, Cash Equivalents and Short-Term Investments - Cash and Cash Equivalents (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Cash, Cash Equivalents and Short-Term Investments | ||
Cash accounts in banking institutions | $ 1 | $ 10.6 |
Money market funds | 126.8 | $ 230 |
Accrued interest receivable | $ 0.2 |
Cash, Cash Equivalents and Sh_4
Cash, Cash Equivalents and Short-Term Investments - Short-Term Investments (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Short-term Investments | |
Amortized Cost | $ 47,663 |
Unrealized Gains | 74 |
Unrealized Losses | (188) |
Fair Value | 47,549 |
U.S. Treasury securities | |
Short-term Investments | |
Amortized Cost | 34,353 |
Unrealized Gains | 67 |
Unrealized Losses | (154) |
Fair Value | 34,266 |
U.S. Government Agency securities | |
Short-term Investments | |
Amortized Cost | 13,310 |
Unrealized Gains | 7 |
Unrealized Losses | (34) |
Fair Value | $ 13,283 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Recurring basis - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Total assets | $ 175,336 | $ 240,551 |
U.S. Treasury securities | ||
Assets | ||
Investments | 34,266 | |
U.S. Government Agency securities | ||
Assets | ||
Investments | 13,283 | |
Cash. | ||
Assets | ||
Cash and cash equivalents, fair value | 1,014 | 10,569 |
Money market funds | ||
Assets | ||
Cash and cash equivalents, fair value | 126,773 | 229,982 |
Level 1 | ||
Assets | ||
Total assets | 127,787 | 240,551 |
Level 1 | Cash. | ||
Assets | ||
Cash and cash equivalents, fair value | 1,014 | 10,569 |
Level 1 | Money market funds | ||
Assets | ||
Cash and cash equivalents, fair value | 126,773 | $ 229,982 |
Level 2 | ||
Assets | ||
Total assets | 47,549 | |
Level 2 | U.S. Treasury securities | ||
Assets | ||
Investments | 34,266 | |
Level 2 | U.S. Government Agency securities | ||
Assets | ||
Investments | $ 13,283 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Inventory | ||
Raw materials | $ 1,805 | |
Work in process | 624 | |
Finished goods | 245 | $ 77 |
Total Inventories | $ 2,674 | $ 77 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Accrued Expenses | ||
Payroll and related costs | $ 5,497 | $ 7,061 |
Clinical trials and drug development | 6,405 | 5,725 |
Professional fees | 1,048 | 1,417 |
Accrued tax provision | 742 | 2,445 |
Third-party commercial expenses | 2,953 | 1,880 |
Short-term lease liabilities | 681 | 637 |
Other | 569 | 371 |
Total accrued expenses | $ 17,895 | $ 19,536 |
Net Loss Per Share of Common _3
Net Loss Per Share of Common Stock - Anti-dilutive securities (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Loss per share of common stock | ||
Warrant exercise price (in dollars per share) | $ 0.001 | $ 0.001 |
Antidilutive securities excluded from the computation of diluted weighted average shares outstanding (in shares) | 8,709,269 | 7,339,624 |
Convertible preferred stock | ||
Loss per share of common stock | ||
Antidilutive securities excluded from the computation of diluted weighted average shares outstanding (in shares) | 860,000 | |
Restricted stock awards and restricted stock units | ||
Loss per share of common stock | ||
Antidilutive securities excluded from the computation of diluted weighted average shares outstanding (in shares) | 1,489,119 | 758,217 |
Stock options | ||
Loss per share of common stock | ||
Antidilutive securities excluded from the computation of diluted weighted average shares outstanding (in shares) | 7,220,150 | 5,721,407 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Mar. 29, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Jan. 01, 2023 | |
Stockholders' Equity | |||||||
Total compensation cost | $ 3,891 | $ 3,817 | |||||
Maximum percentage of beneficial ownership for exercise of Pre-funded Warrants | 9.99% | ||||||
Maximum percentage increase or decrease of beneficial ownership for exercise of Pre-funded Warrants | 19.99% | ||||||
Public Offering. | |||||||
Stockholders' Equity | |||||||
Stock Issued During Period, Shares, New Issues | 12,421,053 | ||||||
Number of pre-funded warrants (in shares) | 2,105,264 | ||||||
Proceeds from equity offerings, net of offering costs | $ 64,500 | ||||||
Research and development. | |||||||
Stockholders' Equity | |||||||
Total compensation cost | 1,468 | 1,397 | |||||
Selling, general and administrative | |||||||
Stockholders' Equity | |||||||
Total compensation cost | $ 2,423 | $ 2,420 | |||||
Ovid License Agreement | |||||||
Stockholders' Equity | |||||||
Stock Issued During Period, Shares, New Issues | 123,255 | ||||||
Series A Convertible Preferred Stock | |||||||
Shares | |||||||
Conversion of Series A Convertible Preferred Stock (in shares) | 4,300 | ||||||
Preferred stock, shares outstanding | 0 | 0 | 4,300 | ||||
Common Stock | |||||||
Shares | |||||||
Shares issued in the conversion of Series A Convertible Preferred Stock to common stock (in shares) | 860,000 | ||||||
Stock option | |||||||
Stock Options | |||||||
Outstanding (in shares) | 7,220,150 | 7,220,150 | |||||
Outstanding, weighted-average exercise price (in dollars per share) | $ 9.74 | $ 9.74 | |||||
Granted (in shares) | 1,841,540 | ||||||
Granted (in dollars per share) | $ 6.20 | ||||||
Restricted common stock | |||||||
Stockholders' Equity | |||||||
Vesting period | 2 years | ||||||
Restricted stock awards and restricted stock units | |||||||
Stockholders' Equity | |||||||
Total compensation cost | $ 7,632 | $ 7,196 | |||||
Restricted stock awards and restricted stock units | Research and development. | |||||||
Stockholders' Equity | |||||||
Total compensation cost | 2,810 | 2,675 | |||||
Restricted stock awards and restricted stock units | Selling, general and administrative | |||||||
Stockholders' Equity | |||||||
Total compensation cost | $ 4,822 | $ 4,521 | |||||
2005 Plan | |||||||
Stockholders' Equity | |||||||
Common stock reserved for issuance (in shares) | 0 | 0 | |||||
2005 Plan | Stock option | |||||||
Stock Options | |||||||
Outstanding (in shares) | 577 | 577 | |||||
2014 Plan | |||||||
Stockholders' Equity | |||||||
Common stock reserved for issuance (in shares) | 757,155 | 757,155 | 2,020,111 | ||||
2014 Plan | Stock option | |||||||
Stock Options | |||||||
Outstanding (in shares) | 5,087,086 | 5,087,086 | |||||
Granted (in shares) | 1,532,390 | ||||||
2014 Plan | Restricted Stock Units | |||||||
Stockholders' Equity | |||||||
Vesting period | 3 years | ||||||
Shares | |||||||
Issued (in shares) | 959,996 | ||||||
Restricted shares of common stock outstanding (in shares) | 1,489,119 | 1,489,119 | |||||
Equity Incentive Plan, Employee Inducements | Stock option | |||||||
Stock Options | |||||||
Outstanding (in shares) | 2,132,487 | 2,132,487 | |||||
Granted (in shares) | 309,150 |
Leases - Other (Details)
Leases - Other (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Leases | ||
Operating lease agreement term | 78 months | |
Operating lease renewal term | 60 months | |
Weighted average remaining lease term | 27 months | |
Right-of-use assets | $ 1,100 | $ 1,300 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other Assets, Noncurrent | Other Assets, Noncurrent |
Operating lease liabilities | $ 1,671 | $ 2,000 |
Leases - Costs (Details)
Leases - Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Leases | |||||
Total lease costs | $ 0.1 | $ 0.1 | $ 0.3 | $ 0.3 | |
Weighted-average incremental borrowing rate used to determine right-of-use assets and lease liabilities | 11% | 11% | |||
Impairment losses of ROU assets | $ 0 | $ 0 | |||
Maximum | |||||
Leases | |||||
Short-term operating lease costs | $ 0.1 |
Leases - Maturities (Details)
Leases - Maturities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Maturities of operating lease liabilities: | ||
Remaining six months of 2023 | $ 414 | |
2024 | 840 | |
2025 | 642 | |
Total lease payments | 1,896 | |
Less: imputed interest | (225) | |
Total lease liabilities | 1,671 | $ 2,000 |
Current operating lease liabilities | $ 681 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued Liabilities, Current | |
Non-current operating lease liabilities | $ 990 | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other Accrued Liabilities, Noncurrent |
Notes Payable - Narratives (Det
Notes Payable - Narratives (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||
May 11, 2021 USD ($) tranche | Mar. 31, 2022 USD ($) | Sep. 30, 2021 USD ($) | May 31, 2021 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Oct. 31, 2022 | Oct. 27, 2022 USD ($) | Sep. 30, 2022 | |
Notes Payable | |||||||||||
Contractual exit fee | $ 2,003 | $ 2,003 | |||||||||
Interest expense | $ 4,208 | $ 2,656 | 8,355 | $ 4,348 | |||||||
Amortization of debt issuance costs | 1,102 | $ 703 | |||||||||
Oaktree Capital Management LP Credit Agreement | |||||||||||
Notes Payable | |||||||||||
Term of loan facility | 5 years | ||||||||||
Maximum borrowing capacity available under the credit agreement | $ 100,000 | ||||||||||
Number of tranches | tranche | 4 | ||||||||||
Proceeds from line of credit | $ 15,000 | $ 30,000 | $ 30,000 | ||||||||
Additional borrowing capacity available, subject to certain milestone events | $ 25,000 | ||||||||||
Accrued interest rate (as a percent) | 11.50% | ||||||||||
Percentage of periodic principal payment | 5% | ||||||||||
Upfront fee (as a percent) | 2% | ||||||||||
Commitment fee (as a percent) | 0.75% | ||||||||||
Commitment fee accrual period | 120 days | ||||||||||
Debt issuance costs | $ 500 | ||||||||||
Debt issuance costs | $ 4,400 | 1,800 | 1,200 | ||||||||
Contractual exit fee | $ 300 | 600 | |||||||||
Interest expense | 5,300 | ||||||||||
Interest on term loan | 4,300 | ||||||||||
Amortization of debt issuance costs | $ 1,000 | ||||||||||
Exit fee, percentage | 2.67% | 2.67% | 2% | 2% | |||||||
Oaktree Capital Management LP Credit Agreement | Maximum | |||||||||||
Notes Payable | |||||||||||
Contractual exit fee | 600 | ||||||||||
Oaktree Capital Management LP Credit Agreement | Funding date of the tranche B term loans until the maturity of the Term Loans | |||||||||||
Notes Payable | |||||||||||
Minimum liquidity to be maintained | $ 15,000 | ||||||||||
Oaktree Capital Management LP Credit Agreement | Scenario Of Prepayment On Or Before May 11, 2023 | |||||||||||
Notes Payable | |||||||||||
Prepayment premium (as a percent) | 4% | ||||||||||
Oaktree Capital Management LP Credit Agreement | Scenario Of Prepayment Occurs Between May 11, 2023 To May 11, 2024 | |||||||||||
Notes Payable | |||||||||||
Prepayment premium (as a percent) | 4% | ||||||||||
Oaktree Capital Management LP Credit Agreement | Scenario Of Prepayment Between May 11, 2024 To May 11, 2025 | |||||||||||
Notes Payable | |||||||||||
Prepayment premium (as a percent) | 2% | ||||||||||
Oaktree Capital Management LP Credit Agreement | Scenario Of Prepayment After May 11, 2025 | |||||||||||
Notes Payable | |||||||||||
Prepayment premium (as a percent) | 0% | ||||||||||
Oaktree Capital Management LP Credit Agreement | Term Loans Tranche A-1 | |||||||||||
Notes Payable | |||||||||||
Proceeds from line of credit | $ 15,000 | ||||||||||
Oaktree Capital Management LP Credit Agreement | Term Loans Tranche A-2 | |||||||||||
Notes Payable | |||||||||||
Proceeds from line of credit | $ 30,000 | ||||||||||
Oaktree Capital Management LP Credit Agreement | Term Loan Tranche B | |||||||||||
Notes Payable | |||||||||||
Proceeds from line of credit | 30,000 | ||||||||||
Oaktree Capital Management LP Credit Agreement | Term Loan Tranche B | Maximum | |||||||||||
Notes Payable | |||||||||||
Commitment fees | $ 100 | ||||||||||
Oaktree Capital Management LP Credit Agreement | Term Loan Tranche C | |||||||||||
Notes Payable | |||||||||||
Additional borrowing capacity available, subject to certain milestone events | $ 25,000 | ||||||||||
Gross proceeds from sublicense, minimum | 40,000 | ||||||||||
Net proceeds from sublicense, minimum | $ 36,000 |
Notes Payable - Composition of
Notes Payable - Composition of debt (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Notes Payable. | ||
Gross proceeds | $ 75,000 | |
Contractual exit fee | 2,003 | |
Unamortized debt discount and issuance costs | (5,017) | |
Total note payable | 71,986 | |
Current portion of note payable | 3,850 | |
Non-current portion of note payable | 68,136 | $ 71,018 |
Total note payable | $ 71,986 |
Notes Payable - Debt maturities
Notes Payable - Debt maturities (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Notes Payable. | |
Remainder of 2023 | |
2024 | 11,250 |
2025 | 15,000 |
2026 | 48,750 |
Total | $ 75,000 |
Revenue Interest Financing Ag_3
Revenue Interest Financing Agreement - Terms (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Oct. 28, 2022 | Jun. 30, 2023 | Dec. 31, 2022 | |
Revenue Interest Financing Payable | |||
Professional fees | $ 1,048 | $ 1,417 | |
Total issuance costs | $ 2,600 | ||
Estimated effective annual interest rate, percentage | 19% | ||
Each calendar quarter from and after the Closing Date through and including the quarter ended June 30, 2026 | Sagard | |||
Revenue Interest Financing Payable | |||
Quarterly payments expressed as a percentage of the U.S. net sales of Ztalmy and all other pharmaceutical products that contain ganaxolene, required under the revenue interest financing agreement. | 7.50% | ||
Period Ending December 31, 2032 | Sagard | |||
Revenue Interest Financing Payable | |||
Minimum amount expressed as a percentage of the Investment Amount | 190% | ||
Revenue Interest Financing Agreement | Oaktree Capital Management LP Credit Agreement | |||
Revenue Interest Financing Payable | |||
Minimum cash and cash equivalents required to be maintained deposits until repayment | $ 15,000 | ||
Minimum cash and cash equivalents required to be maintained deposits after repayment | 10,000 | ||
Revenue Interest Financing Agreement | Sagard | |||
Revenue Interest Financing Payable | |||
Investment amount | $ 32,500 | ||
Hard Cap expressed as a percentage of the Investment Amount | 190% | ||
Hard cap amount | $ 61,800 | ||
Professional fees | $ 2,600 | ||
Revenue Interest Financing Agreement | Each calendar quarter from and after the Closing Date through and including the quarter ended June 30, 2026 | Sagard | |||
Revenue Interest Financing Payable | |||
Quarterly payments due, expressed as a percentage of the first $100 million in annual Product Revenue of the Included Products | 15% | ||
Quarterly payments due, expressed as a percentage of the annual Product Revenue of the Included Products in excess of $100 million | 7.50% | ||
Annual Product Revenue Threshold | $ 100,000 | ||
Revenue Interest Financing Agreement | Period Ending December 31, 2027 | Sagard | |||
Revenue Interest Financing Payable | |||
Minimum amount expressed as a percentage of the Investment Amount | 100% | ||
Revenue Interest Financing Agreement | On Or Before Third Anniversary | |||
Revenue Interest Financing Payable | |||
Payments at repurchase price investment percent | 160% | ||
Revenue Interest Financing Agreement | After Third Anniversary | |||
Revenue Interest Financing Payable | |||
Payments at repurchase price investment percent | 180% | ||
Revenue Interest Financing Agreement | After Fourth Anniversary | |||
Revenue Interest Financing Payable | |||
Payments at repurchase price investment percent | 190% |
Revenue Interest Financing Ag_4
Revenue Interest Financing Agreement - Summary of Activity (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Revenue Interest Financing Agreement | ||
Revenue Interest Financing Balance at December 31, 2022 | $ 30,877 | |
Non-cash interest expense | 2,916 | |
Amortization of debt discount | 134 | |
Payments made | (421) | |
Revenue Interest Financing Balance at June 30, 2023 | 33,506 | |
Current portion of revenue interest financing liability | 1,556 | $ 1,020 |
Long-term portion of revenue interest financing liability | 31,950 | 29,857 |
Revenue Interest Financing Balance at June 30, 2023 | $ 33,506 | $ 30,877 |
Collaboration Revenue - Narrati
Collaboration Revenue - Narrative (Details) $ in Thousands, € in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jul. 30, 2021 USD ($) | Jul. 30, 2021 EUR (€) item | May 31, 2023 USD ($) | Dec. 31, 2022 USD ($) item | Jun. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) item product | |
License and Collaboration Revenue | ||||||||
Net Contract Liability | $ 16,285 | $ 17,016 | $ 17,016 | $ 16,285 | ||||
Collaboration revenue | ||||||||
License and Collaboration Revenue | ||||||||
Collaboration revenue | 18 | 18 | $ 12,673 | |||||
Collaboration Agreement with Orion | ||||||||
License and Collaboration Revenue | ||||||||
Upfront fee received | $ 29,600 | € 25 | ||||||
Number of days from receipt of the final report, in which the collaboration agreement may be terminated | 90 days | 90 days | ||||||
Percentage of upfront fee which must be refunded in the event of termination | 75% | |||||||
Amount of payment receivable upon achievement of specific clinical and commercial achievements | € | € 97 | |||||||
Term of collaboration agreement | 10 years | 10 years | ||||||
Number of performance obligations | item | 3 | |||||||
Collaboration revenue | 12,700 | |||||||
Transaction Price | 37,880 | 37,880 | 37,880 | 37,880 | ||||
Net Contract Liability | 9,983 | 10,233 | 10,233 | 9,983 | ||||
Offset by contract asset | 5,079 | 3,992 | 3,992 | 5,079 | ||||
Incremental costs incurred in obtaining the agreement | 2,000 | 2,000 | ||||||
Capitalized contract costs | 900 | 900 | ||||||
Collaboration Agreement with Orion | Selling, general and administrative | ||||||||
License and Collaboration Revenue | ||||||||
Contract acquisition costs included in general and administrative expense | 1,100 | |||||||
Collaboration Agreement with Orion | License Revenue | ||||||||
License and Collaboration Revenue | ||||||||
Transaction Price | 21,660 | 21,660 | 21,660 | 21,660 | ||||
Collaboration Agreement with Orion | Collaboration revenue | ||||||||
License and Collaboration Revenue | ||||||||
Transaction Price | 12,700 | 12,700 | ||||||
Collaboration Agreement with Orion | Development and Regulatory Services | ||||||||
License and Collaboration Revenue | ||||||||
Amortization of transaction price as a reduction of research and development costs | 800 | 1,100 | ||||||
Transaction Price | 6,717 | 6,717 | 6,717 | 6,717 | ||||
Collaboration Agreement with Orion | Supply of License Product | ||||||||
License and Collaboration Revenue | ||||||||
Transaction Price | $ 9,503 | 9,503 | 9,503 | 9,503 | ||||
Collaboration Agreement with Tenacia | ||||||||
License and Collaboration Revenue | ||||||||
Upfront fee received | 10,000 | |||||||
Aggregate amount | 256,000 | |||||||
Milestone regulatory approvals | 15,000 | |||||||
Aggregative sales based milestone | $ 241,000 | |||||||
Term of collaboration agreement | 45 days | |||||||
Number of performance obligations | item | 2 | 2 | ||||||
Number of commitments represent distinct performance | item | 2 | 2 | ||||||
Transaction Price | $ 10,000 | 10,000 | 10,000 | $ 10,000 | ||||
Net Contract Liability | 6,302 | 6,302 | 6,302 | 6,302 | ||||
Offset by contract asset | 700 | 700 | 700 | 700 | ||||
Incremental costs incurred in obtaining the agreement | 1,000 | 1,000 | ||||||
Capitalized contract costs | 700 | $ 700 | ||||||
Cost of product revenue | 200 | |||||||
Number of Selected Products to which milestone payments applicable | product | 1 | |||||||
Collaboration Agreement with Tenacia | Selling, general and administrative | ||||||||
License and Collaboration Revenue | ||||||||
Contract acquisition costs included in general and administrative expense | 100 | |||||||
Collaboration Agreement with Tenacia | License Revenue | ||||||||
License and Collaboration Revenue | ||||||||
Collaboration revenue | 0 | |||||||
Transaction Price | 2,998 | 2,998 | 2,998 | $ 2,998 | ||||
Collaboration Agreement with Tenacia | Collaboration revenue | ||||||||
License and Collaboration Revenue | ||||||||
Transaction Price | 3,000 | 3,000 | ||||||
Collaboration Agreement with Tenacia | Supply of License Product | ||||||||
License and Collaboration Revenue | ||||||||
Transaction Price | $ 7,002 | $ 7,002 | 7,002 | $ 7,002 | ||||
Biologix Distribution and Supply Agreement | ||||||||
License and Collaboration Revenue | ||||||||
Upfront fee received | $ 500 | |||||||
Biologix Distribution and Supply Agreement | Maximum | ||||||||
License and Collaboration Revenue | ||||||||
Collaboration revenue | $ 100 |
Collaboration Revenue - Allocat
Collaboration Revenue - Allocation of the transaction price to the performance obligations (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
License and Collaboration Revenue | ||
Net Contract Liability | $ 17,016 | $ 16,285 |
Collaboration Agreement with Orion | ||
License and Collaboration Revenue | ||
Transaction Price | 37,880 | 37,880 |
Cumulative Collaboration Revenue Recognized | 23,655 | 22,818 |
Contract Liability | 14,225 | 15,062 |
Less Total Contract Asset | 3,992 | 5,079 |
Net Contract Liability | 10,233 | 9,983 |
Collaboration Agreement with Orion | License Revenue | ||
License and Collaboration Revenue | ||
Transaction Price | 21,660 | 21,660 |
Cumulative Collaboration Revenue Recognized | 21,660 | 21,660 |
Collaboration Agreement with Orion | Development and Regulatory Services | ||
License and Collaboration Revenue | ||
Transaction Price | 6,717 | 6,717 |
Cumulative Collaboration Revenue Recognized | 1,995 | 1,158 |
Contract Liability | 4,722 | 5,559 |
Collaboration Agreement with Orion | Supply of License Product | ||
License and Collaboration Revenue | ||
Transaction Price | 9,503 | 9,503 |
Contract Liability | 9,503 | 9,503 |
Collaboration Agreement with Tenacia | ||
License and Collaboration Revenue | ||
Transaction Price | 10,000 | 10,000 |
Cumulative Collaboration Revenue Recognized | 2,998 | 2,998 |
Contract Liability | 7,002 | 7,002 |
Less Total Contract Asset | 700 | 700 |
Net Contract Liability | 6,302 | 6,302 |
Collaboration Agreement with Tenacia | License Revenue | ||
License and Collaboration Revenue | ||
Transaction Price | 2,998 | 2,998 |
Cumulative Collaboration Revenue Recognized | 2,998 | 2,998 |
Collaboration Agreement with Tenacia | Supply of License Product | ||
License and Collaboration Revenue | ||
Transaction Price | 7,002 | 7,002 |
Contract Liability | $ 7,002 | $ 7,002 |