Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2017 | May 05, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | AGTC | |
Entity Registrant Name | APPLIED GENETIC TECHNOLOGIES CORP | |
Entity Central Index Key | 1,273,636 | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 18,083,563 |
Condensed Balance Sheets (Unaud
Condensed Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2017 | Jun. 30, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 35,500 | $ 28,868 |
Investments | 96,228 | 69,664 |
Grants receivable | 169 | 954 |
Prepaid and other current assets | 3,797 | 3,089 |
Total current assets | 135,694 | 102,575 |
Investments | 16,995 | 74,183 |
Property and equipment, net | 2,720 | 2,627 |
Intangible assets, net | 1,264 | 1,321 |
Other assets | 2,107 | 91 |
Total assets | 158,780 | 180,797 |
Current liabilities: | ||
Accounts payable | 817 | 1,331 |
Accrued and other liabilities | 6,372 | 6,514 |
Deferred revenue | 24,818 | 46,898 |
Total current liabilities | 32,007 | 54,743 |
Deferred revenue, net of current portion | 8,411 | 16,766 |
Total liabilities | 40,418 | 71,509 |
Stockholders' equity: | ||
Common stock—par value $.001 per share; shares authorized: 150,000 at March 31, 2017 and June 30, 2016; shares issued and outstanding: 18,084 and 18,077, respectively, at March 31, 2017; shares issued outstanding: 18,053 and 18,048, respectively, at June 30, 2016. | 18 | 18 |
Additional paid-in capital | 203,492 | 199,303 |
Accumulated deficit | (85,148) | (90,033) |
Total stockholders' equity | 118,362 | 109,288 |
Total liabilities and stockholders' equity | $ 158,780 | $ 180,797 |
Condensed Balance Sheets (Unau3
Condensed Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2017 | Jun. 30, 2016 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 18,084,000 | 18,053,000 |
Common stock, shares outstanding | 18,077,000 | 18,048,000 |
Condensed Statements of Operati
Condensed Statements of Operations (Unaudited) - USD ($) shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Revenue: | ||||
Collaboration revenue | $ 8,297,000 | $ 11,882,000 | $ 30,959,000 | $ 34,717,000 |
Grant and other revenue | 91,000 | 115,000 | 169,000 | 531,000 |
Total revenue | 8,388,000 | 11,997,000 | 31,128,000 | 35,248,000 |
Operating expenses: | ||||
Research and development | 6,303,000 | 7,868,000 | 17,916,000 | 32,108,000 |
General and administrative and other | 2,921,000 | 2,362,000 | 8,507,000 | 7,716,000 |
Total operating expenses | 9,224,000 | 10,230,000 | 26,423,000 | 39,824,000 |
(Loss) income from operations | (836,000) | 1,767,000 | 4,705,000 | (4,576,000) |
Other income: | ||||
Investment income, net | 236,000 | 202,000 | 700,000 | 467,000 |
Total other income, net | 236,000 | 202,000 | 700,000 | 467,000 |
Provision for income Taxes | 221,000 | 0 | 519,000 | 0 |
Net (loss) income | $ (821,000) | $ 1,969,000 | $ 4,886,000 | $ (4,109,000) |
Net (loss) income per share, basic and diluted | $ (0.05) | $ 0.11 | $ 0.27 | $ (0.23) |
Weighted average shares outstanding - basic | 18,081 | 18,033 | 18,068 | 17,735 |
Weighted average shares outstanding - diluted | 18,081 | 18,472 | 18,408 | 17,735 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash flows from operating activities | ||
Net income (loss) | $ 4,886 | $ (4,109) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Share-based compensation expense | 4,161 | 3,605 |
Share-based collaboration expense | 636 | |
Depreciation and amortization | 657 | 375 |
Non-cash interest expense | 320 | 289 |
Changes in operating assets and liabilities: | ||
Grants receivable | 785 | 352 |
Prepaid and other assets | (725) | (1,058) |
Accounts payable | (514) | 294 |
Deferred revenues | (30,435) | 75,389 |
Accrued and other liabilities | (142) | 2,617 |
Net cash provided by (used in) operating activities: | (21,007) | 78,390 |
Cash flows from investing activities | ||
Purchase of property and equipment | (560) | (2,239) |
Purchase of and capitalized costs related to intangible assets | (132) | (105) |
Investment in Bionic Sight | (2,000) | |
Maturity of investments | 80,821 | 31,424 |
Purchase of investments | (50,517) | (148,219) |
Net cash provided by (used in) investing activities: | 27,612 | (119,139) |
Cash flows from financing activities | ||
Proceeds from exercise of common stock options | 27 | 235 |
Proceeds from issuance of common stock, net of issuance costs | 19,211 | |
Net cash provided by financing activities: | 27 | 19,446 |
Net change in cash and cash equivalents | 6,632 | (21,303) |
Cash and cash equivalents, beginning of period | 28,868 | 39,187 |
Cash and cash equivalents, end of period | $ 35,500 | $ 17,884 |
Organization and Operations
Organization and Operations | 9 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Organization and Operations | 1. Organization and Operations: Applied Genetic Technologies Corporation (the “Company” or “AGTC”) was incorporated as a Florida corporation on January 19, 1999 and reincorporated as a Delaware corporation on October 24, 2003. The Company is a clinical-stage biotechnology company developing gene therapy products designed to transform the lives of patients with severe diseases, primarily in ophthalmology. In April 2014, the Company completed its initial public offering (“IPO”) in which it sold 4,166,667 shares of common stock at a price of $12.00 per share. The Company now trades on NASDAQ under the ticker symbol AGTC. In April 2014, the Company sold an additional 625,000 shares of common stock at the offering price of $12.00 per share pursuant to the exercise of the underwriters’ over-allotment option. The aggregate net proceeds received by the Company from the IPO offering, including exercise of the over-allotment option, amounted to $51.6 million, net of underwriting discounts and commissions and other issuance costs incurred by the Company. In July 2014, the Company completed a follow on public offering in which it sold 2,000,000 shares of common stock at a public offering price of $15.00 per share. In August 2014, the Company sold an additional 300,000 shares of common stock at a public offering price of $15.00 per share pursuant to the full exercise of an overallotment option granted to the underwriters in connection with the follow-on offering. The aggregate net proceeds received by the Company from the follow-on offering, including exercise of the overallotment option, amounted to $32.0 million, net of underwriting discounts and commissions and other offering expenses. In July 2015, the Company entered into a collaboration agreement (the “Collaboration Agreement”) with Biogen MA, Inc., a wholly owned subsidiary of Biogen Inc. (“Biogen”), pursuant to which the Company and Biogen will collaborate to develop, seek regulatory approval for and commercialize gene therapy products to treat X-linked retinoschisis (“XLRS”), X-linked retinitis pigmentosa (“XLRP”), and discovery programs targeting three indications based on the Company’s adeno-associated virus vector technologies. The Collaboration Agreement became effective in August 2015. The Collaboration Agreement and other transactions with Biogen are discussed further in Note 6 to these financial statements. The Company has devoted substantially all of its efforts to research and development, including clinical trials. The Company has not completed the development of any products. The Company has generated revenue from collaboration agreements, sponsored research payments and grants, but has not generated product revenue to date and is subject to a number of risks similar to those of other early stage companies in the biotechnology industry, including dependence on key individuals, the difficulties inherent in the development of commercially viable products, the need to obtain additional capital necessary to fund the development of its products, development by the Company or its competitors of technological innovations, risks of failure of clinical studies, protection of proprietary technology, compliance with government regulations and ability to transition to large-scale production of products. As of March 31, 2017, the Company had an accumulated deficit of $85.1 , |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies: (a) Basis of presentation The adjustments referred to above are of a normal and recurring nature. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to U.S. Securities and Exchange Commission (“SEC”) rules and regulations for interim reporting. Certain amounts reported previously have been reclassified to conform to the current period presentation, with no effect on stockholders’ equity or net income (loss) as previously presented. The Condensed Balance Sheet as of June 30, 2016 was derived from audited financial statements, but does not include all disclosures required by GAAP. These Unaudited Condensed Financial Statements should be read in conjunction with the audited financial statements included in the Company’s 2016 Annual Report on Form 10-K, as amended, (“June 30, 2016 Form 10-K”). Results of operations for the three and nine months ended March 31, 2017 are not necessarily indicative of the results to be expected for the full year or any other interim period. (b) Use of estimates (c) Cash and cash equivalents (d) Investments The Company uses the specific identification method to determine the cost basis of securities sold. Investments are considered to be impaired when a decline in fair value is judged to be other-than-temporary. The Company evaluates an investment for impairment by considering the length of time and extent to which market value has been less than cost or amortized cost, the financial condition and near-term prospects of the issuer as well as specific events or circumstances that may influence the operations of the issuer and the Company’s intent to sell the security or the likelihood that it will be required to sell the security before recovery of the entire amortized cost. Once a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded to other income (expense) and a new cost basis in the investment is established. (e) Fair value of financial instruments Fair Value Measurements and Disclosures Level 1—Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2—Valuations based on quoted prices for similar assets or liabilities in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 3—Valuations that require inputs that reflect the Company’s own assumptions that are both significant to the fair value measurement and unobservable. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. (f) Intangible assets (g) Revenue recognition Amounts received prior to satisfying the revenue recognition criteria are recorded as deferred revenue in the Company’s unaudited condensed balance sheets. Amounts expected to be recognized as revenue within the 12 months following the balance sheet date are classified as current liabilities. The Company recognizes revenue for reimbursements of research and development costs under collaboration agreements as the services are performed. The Company records these reimbursements as revenue and not as a reduction of research and development expenses, as the Company has the risks and rewards as the principal in the research and development activities. The Company evaluates the terms of sponsored research agreement grants and federal grants to assess the Company’s obligations and if the Company’s obligations are satisfied by the passage of time, revenue is recognized on a straight-line basis. In situations where the performance of the Company’s obligations has been satisfied when the grant is received, revenue is recognized upon receipt of the grant. Certain grants contain refund provisions. The Company reviews those refund provisions to determine the likelihood of repayment. If the likelihood of repayment of the grant is determined to be remote, the grant is recognized as revenue. If the probability of repayment is determined to be more than remote, the Company records the grant as a deferred revenue, until such time that the grant requirements have been satisfied. Collaboration revenue On July 1, 2015, the Company entered into the Collaboration Agreement. This collaboration is discussed further in Note 6 to these financial statements. The terms of this Collaboration Agreement and other potential collaboration or commercialization agreements the Company may enter into generally contain multiple elements, or deliverables, which may include, among others, (i) licenses, or options to obtain licenses, to its technology, and (ii) research and development activities to be performed on behalf of the collaborative partner. Payments made under such arrangements typically include one or more of the following: non-refundable, up-front license fees; option exercise fees; funding of research and/or development efforts; milestone payments; and royalties on future product sales. Multiple element arrangements are analyzed to determine whether the deliverables within the agreement can be separated or whether they must be treated as a single unit of accounting. Deliverables under an agreement are required to be treated as separate units of accounting provided that (i) a delivered item has value to the customer on a stand-alone basis; and (ii) if the agreement includes a general right of return relative to the delivered item, delivery or performance of the undelivered item is considered probable and substantially in the control of the vendor. The consideration received is allocated among the separate units of accounting using the relative selling price method, and the applicable revenue recognition criteria are applied to each of the separate units. The Company determines the estimated selling price for deliverables within each agreement using vendor-specific objective evidence ("VSOE") of selling price, if available, third-party evidence ("TPE") of selling price if VSOE is not available, or best estimate of selling price ("BESP") if neither VSOE nor TPE are available. Determining the best estimate of selling price for a deliverable requires significant judgment. The Company uses BESP to estimate the selling price related to licenses to its proprietary technology, since it often does not have VSOE or TPE of selling price for these deliverables. In those circumstances where it utilizes BESP to determine the estimated selling price of a license to its proprietary technology, the Company considers market conditions as well as entity-specific factors, including those factors contemplated in negotiating the agreements as well as internally developed models that include assumptions related to the market opportunity, estimated development costs, probability of success and the time needed to commercialize a product candidate pursuant to the license. In validating its best estimate of selling price, the Company evaluates whether changes in the key assumptions used to determine the best estimate of selling price will have a significant effect on the allocation of arrangement consideration among multiple deliverables. If the delivered element does not have stand-alone value, the arrangement is then treated as a single unit of accounting and the Company recognizes the consideration received under the arrangement as revenue on a straight-line basis over its estimated period of performance. The Company’s anticipated periods of performance, typically the terms of its research and development obligations, are subject to estimates by management and may change over the course of the collaboration agreement. Such changes could have a material impact on the amount of revenue recorded in future periods. Milestone revenue The Company applies the milestone method of accounting to recognize revenue from milestone payments when earned, as evidenced by written acknowledgement from the collaborator or other persuasive evidence that the milestone has been achieved and the payment is non-refundable, provided that the milestone event is substantive. A milestone event is defined as an event (i) that can only be achieved based in whole or in part on either the Company’s performance or on the occurrence of a specific outcome resulting from the Company’s performance; (ii) for which there is substantive uncertainty at the inception of the arrangement that the event will be achieved; and (iii) that would result in additional payments being due to the Company. Events for which the occurrence is either contingent solely upon the passage of time or the result of a counterparty’s performance are not considered to be milestone events. A milestone event is substantive if all of the following conditions are met: (i) the consideration is commensurate with either the Company’s performance to achieve the milestone, or the enhancement of the value to the delivered item(s) as a result of a specific outcome resulting from the Company’s performance to achieve the milestone; (ii) the consideration relates solely to past performance; and (iii) the consideration is reasonable relative to all the deliverables and payment terms (including other potential milestone consideration) within the arrangement. The Company assesses whether a milestone is substantive at the inception of the arrangement. If a milestone is deemed substantive and the milestone payment is nonrefundable, the Company recognizes revenue upon the successful accomplishment of that milestone. Where a milestone is deemed non-substantive, we account for that milestone payment in accordance with the multiple element arrangements guidance and recognize revenue consistent with the related units of accounting for the arrangement over the related performance period. Deferred revenue Amounts received by the Company prior to satisfying the above revenue recognition criteria are recorded as deferred revenue on the unaudited condensed balance sheets. Amounts not expected to be recognized within 12 months of the balance sheet date are classified as non-current deferred revenue on the unaudited condensed balance sheets. (h) Research and development Research and development costs also include license and sub-license fees and other direct and incremental costs incurred pursuant to the negotiation of and entry into collaborative and other partnership arrangements. Such costs associated with collaborative and other arrangements are expensed as incurred. As part of the process of preparing its financial statements, the Company is required to estimate its accrued expenses. This process involves reviewing quotations and contracts, identifying services that have been performed on its behalf and estimating the level of service performed and the associated cost incurred for services for which the Company has not yet been invoiced or otherwise notified of the actual cost. The majority of the Company’s service providers invoice the Company monthly in arrears for services performed or when contractual milestones are met. The Company makes estimates of its accrued expenses as of each balance sheet date in its financial statements based on facts and circumstances known to it at that time. The significant estimates in the Company’s accrued research and development expenses are related to expenses incurred with respect to academic research centers, contract research organizations, and other vendors in connection with research and development activities for which it has not yet been invoiced. There may be instances in which the Company’s service providers require advance payments at the inception of a contract or in which payments made to these vendors will exceed the level of services provided, resulting in a prepayment of the research and development expense. Such prepayments are charged to research and development expense as and when the service is provided or when a specific milestone outlined in the contract is reached. Prepayments related to research and development activities were $2.0 million and $2.0 ( i ) Share-based compensation Compensation—Stock Compensation Equity-Based Payments to Non-employees For purposes of calculating stock-based compensation, the Company estimates the fair value of stock options using a Black-Scholes option-pricing model. The determination of the fair value of share-based payment awards utilizing the Black-Scholes model is affected by the Company’s stock price and a number of assumptions, including expected volatility, expected life, risk-free interest rate and expected dividends. If factors change and the Company employs different assumptions, stock-based compensation expense may differ significantly from what has been recorded in the past. If there is a difference between the assumptions used in determining stock-based compensation expense and the actual factors which become known over time, specifically with respect to anticipated forfeitures, the Company may change the input factors used in determining stock-based compensation costs for future grants. These changes, if any, may materially impact the Company’s results of operations in the period such changes are made. (j) Income taxes to examination of its income tax returns in the federal and state income tax jurisdictions in which it operates. For the three and nine month periods ended March 31, 2017, the Company recorded an income tax provision of $0.2 million and $0.5 million, respectively, based on the Company’s alternative minimum taxable income (“AMTI”). The Company calculates its AMTI using the alternative minimum tax (“AMT”) system. The Company’s federal income tax liability is the greater of the tax computed using the regular tax system or the tax under the AMT system. Corporations are exempt from AMT for all prior years in which their annual gross receipts for the 3-year period ending before the current tax year did not exceed $7.5 million . As of March 31,2017 and June 30, 2016, the Company did not have any significant uncertain tax positions. (k) Net (loss) income per share - The dilutive impact of options and other share-based compensation awards during the nine months ended March 31, 2017, was 0.3 million shares and 0.4 million shares (l) Comprehensive income or loss (m) New accounting pronouncements Leases (Topic 842) In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting Compensation – Stock Compensation In May 2014, the FASB issued guidance that requires companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods or services. It also requires enhanced disclosures about revenue, provides guidance for transactions that were not previously addressed comprehensively, and improves guidance for multiple-element arrangements. The guidance applies to any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. In July 2015, the FASB delayed the effective date of this guidance by one year. The guidance is now effective for public companies for annual periods beginning after December 15, 2017 as well as interim periods within those annual periods using either the full retrospective approach or modified retrospective approach. The Company is currently evaluating the impact of the new guidance on its financial statements. |
Share-based Compensation Plans
Share-based Compensation Plans | 9 Months Ended |
Mar. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-based Compensation Plans | 3. Share-based Compensation Plans: The Company uses stock options and awards of restricted stock to provide long-term incentives for its employees, non-employee directors and certain consultants. The Company has two equity compensation plans under which awards are currently authorized for issuance, the 2013 Employee Stock Purchase Plan and the 2013 Equity and Incentive Plan. No awards have been issued to date under the 2013 Employee Stock Purchase Plan and all of the 128,571 shares previously authorized under this plan remain available for issuance. A summary of the stock option activity for the nine months ended March 31, 2017 and 2016 is as follows: For the Nine Months Ended March 31, 2017 2016 (In thousands, except per share amounts) Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Outstanding at June 30, 2,037 $ 13.71 1,484 $ 11.83 Granted 831 11.00 567 17.30 Exercised (31 ) 0.90 (44 ) 5.27 Forfeited (93 ) 13.98 (39 ) 12.90 Expired (29 ) 17.07 (6 ) 15.50 Outstanding at March 31, 2,715 $ 12.98 1,962 $ 13.53 Exercisable at March 31, 1,392 810 Weighted average fair value of options granted during the period $ 7.59 $ 12.00 For the three and nine months ended March 31, 2017, share-based compensation expense related to stock options awarded For the three and nine months ended March 31, 2017 share-based compensation expense associated with restricted share awards granted to employees and non-employee consultants was not material. For the three and nine months ended March 31, 2016, share-based compensation expense associated with restricted share awards granted to employees and non-employee consultants amounted to $0 thousand and $166 thousand, respectively. As of March 31, 2017, there was $12.6 million of unrecognized compensation expense related to non-vested stock options. |
Investments
Investments | 9 Months Ended |
Mar. 31, 2017 | |
Investments Schedule [Abstract] | |
Investments | 4. Investments: Cash in excess of immediate requirements is invested in accordance with the Company’s investment policy that primarily seeks to maintain adequate liquidity and preserve capital. The following table summarizes the Company’s investments by category as of March 31, 2017 and June 30, 2016: March 31, June 30, In thousands 2017 2016 Investments - Current: Certificates of deposit $ 7,288 $ 18,093 Debt securities - held-to-maturity 88,940 51,571 Total $ 96,228 $ 69,664 Investments - Noncurrent: Certificates of deposit $ 2,824 $ 2,544 Debt securities - held-to-maturity 14,171 71,639 Total $ 16,995 $ 74,183 A summary of the Company’s debt securities classified as held-to-maturity is as follows: At March 31, 2017 In thousands Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Investments - Current: U.S. government and agency obligations $ 86,016 $ — $ (136 ) $ 85,880 Corporate obligations 2,924 (1 ) 2,923 $ 88,940 $ — $ (137 ) $ 88,803 Investments - Noncurrent: U.S. government and agency obligations $ 12,065 $ — $ (65 ) $ 12,000 Corporate obligations 2,106 (9 ) 2,097 $ 14,171 $ — $ (74 ) $ 14,097 At June 30, 2016 In thousands Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Investments - Current: U.S. government and agency obligations $ 40,609 $ 12 $ (2 ) $ 40,619 Corporate obligations 10,962 3 (1 ) 10,964 $ 51,571 $ 15 $ (3 ) $ 51,583 Investments - Noncurrent: U.S. government and agency obligations $ 71,639 $ 53 $ (11 ) $ 71,681 $ 71,639 $ 53 $ (11 ) $ 71,681 The amortized cost and fair value of held-to-maturity debt securities as of March 31, 2017, by contractual maturity, were as follows: In thousands Amortized Cost Fair Value Due in one year or less $ 88,940 $ 88,803 Due after one year through two years 14,171 14,097 $ 103,111 $ 102,900 The Company believes that the unrealized losses disclosed above were primarily driven by interest rate changes rather than by unfavorable changes in the credit ratings associated with these securities and as a result, the Company continues to expect to collect the principal and interest due on its debt securities that have an amortized cost in excess of fair value. At each reporting period, the Company evaluates securities for impairment when the fair value of the investment is less than its amortized cost. The Company evaluated the underlying credit quality and credit ratings of the issuers, noting neither a significant deterioration since purchase nor other factors leading to an other-than-temporary impairment. Therefore, the Company believes these losses to be temporary. As of March 31, 2017, the Company did not have the intent to sell any of the securities that were in an unrealized loss position at that date . |
Fair Value of Financial Instrum
Fair Value of Financial Instruments and Investments | 9 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments and Investments | 5. Fair Value of Financial Instruments and Investments: Certain assets and liabilities are measured at fair value in the Company’s financial statements or have fair values disclosed in the notes to the financial statements. These assets and liabilities are classified into one of three levels of a hierarchy defined by GAAP. The Company’s assessment of the significance of a particular item to the fair value measurement in its entirety requires judgment, including the consideration of inputs specific to the asset or liability. The following methods and assumptions were used to estimate the fair value and determine the fair value hierarchy classification of each class of financial instrument included in the table below. Cash and Cash Equivalents. The carrying value of cash and cash equivalents approximates fair value as maturities are less than three months. Certificates of Deposit. The Company’s certificates of deposit are placed through an account registry service. The fair value measurement of the Company’s certificates of deposit is considered Level 2 of the fair value hierarchy as the inputs are based on quoted prices for identical assets in markets that are not active. The carrying amounts of the Company’s certificates of deposit reported in the unaudited condensed balance sheets approximate fair value. Debt securities – held-to-maturity. The Company’s investments in debt securities classified as held-to-maturity generally include U.S. Treasury Securities, government agency obligations, and corporate obligations. U.S. Treasury Securities and U.S. government agency obligations are valued using quoted market prices. Valuation adjustments are not applied. Accordingly, U.S. Treasury Securities are considered Level 1 of the fair value hierarchy. The fair values of U.S. government agency and corporate obligations are generally determined using recently executed transactions, broker quotes, market price quotations where these are available or other observable market inputs for the same or similar securities. As such, the Company classifies its investments in U.S. agency and corporate obligations within Level 2 of the hierarchy. The following fair value hierarchy table presents information about each major category of the Company’s financial assets and liabilities measured at fair value on a recurring basis: In thousands Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Total Fair Value Total Carrying Value March 31, 2017 Cash and cash equivalents $ 35,500 $ — $ — $ 35,500 $ 35,500 Certificates of deposit — 10,100 — 10,100 10,112 Held-to-maturity investments: Corporate obligations — 5,022 — 5,022 5,030 U.S. government and agency obligations 77,512 20,366 — 97,878 98,081 Total assets $ 113,012 $ 35,488 $ — $ 148,500 $ 148,723 June 30, 2016 Cash and cash equivalents $ 28,868 $ — $ — $ 28,868 $ 28,868 Certificates of deposit — 20,626 — 20,626 20,637 Held-to-maturity investments: Corporate obligations — 10,964 — 10,964 10,962 U.S. government and agency obligations 73,809 38,491 — 112,300 112,248 Total assets $ 102,677 $ 70,081 $ — $ 172,758 $ 172,715 |
Collaboration Agreement with Bi
Collaboration Agreement with Biogen | 9 Months Ended |
Mar. 31, 2017 | |
BIOGEN [Member] | |
Collaboration Agreement | 6. Collaboration Agreement with Biogen On July 1, 2015, the Company entered into a Collaboration Agreement with Biogen, pursuant to which the Company and Biogen will collaborate to develop, seek regulatory approval for and commercialize gene therapy products to treat XLRS, XLRP, and discovery programs adeno-associated virus Under the Collaboration Agreement, the Company will conduct all development activities through regulatory approval in the United States for the XLRS program, and all development activities through the completion of the first in human clinical trial for the XLRP program. In addition, the Collaboration Agreement provides for discovery programs targeting three indications whereby the Company will conduct discovery, research and development activities for those additional drug candidates through the stage of clinical candidate designation, after which, Biogen may exercise an option to continue to develop, seek regulatory approval for and commercialize the designated clinical candidate. In February 2016, the Company announced Biogen’s selection of adrenoleukodystrophy as the non-ophthalmic indication of the three discovery programs. Under the terms of the Collaboration Agreement, the Company, in part through its participation in joint committees with Biogen, will participate in overseeing the development and commercialization of these specific programs. The Company has granted to Biogen with respect to the XLRS and XLRP programs, and upon exercise of the option for the applicable discovery program, an exclusive, royalty-bearing license, with the right to grant sublicenses, to use adeno-associated virus discovery programs. Biogen will also receive an exclusive license to use the Company’s proprietary manufacturing technology platform to make Adeno-Associated Virus (“AAV”) vectors for up to six genes, three of which are at the Company’s discretion, in exchange for payment of milestones and royalties. Activities under the Collaboration Agreement were evaluated under ASC 605-25, Revenue Recognition—Multiple Element Arrangements , as amended by ASU 2009-13, Revenue Recognition ("ASC 605-25"), a adeno-associated virus The Company determined that all of the License Deliverables and Option Deliverables did not have stand-alone value and did not meet the criteria to be accounted for ASC 605-25. discovery programs targeting three indications. Under the Collaboration Agreement, the Company received a non-refundable upfront payment of $94.0 million in August 2015 which it . This upfront payment of $94.0 million was discussed above Under the terms of this equity agreement, Biogen purchased 1,453,957 shares of the Company’s common stock, at a purchase price equal to $20.63 per share, for an aggregate cash purchase price of $30.0 million which the Company also received in August 2015. The shares issued to Biogen represented approximately 8.1% of the Company’s outstanding common stock on a post-issuance basis, calculated on the number of shares that were outstanding at June 30, 2015, and constitute restricted securities that may not be resold by Biogen other than in a transaction registered under, or pursuant to an exemption from the registration requirements of, the Securities Act of 1933, as amended. Accounting standards for multiple element arrangements contain a presumption that separate contracts negotiated or entered into at or near to the same time with the same entity were likely negotiated as a package and should be evaluated as a single agreement. The Company determined that the price of $20.63 paid by Biogen included a premium of $7.45 per share over the fair value of the company’s stock price, calculated based upon the stock price on the date of close of the agreement and adjusted for lack of marketability due to restrictions. Accordingly, the total premium of $10.8 million was also recorded as deferred revenue and, together with the $94.0 million, allocated to the separate units of accounting the deferred revenue on a straight-line basis over the estimated service periods in which it is required to perform the research and development activities associated with each unit of accounting, anticipated to be between 2 and 4 years. T he Company recognized collaboration revenue of $8.3 million and $11.9 million during the three months ended March 31, 2017 and 2016, respectively, and $31.0 million and $34.7 million during the nine months ended March 31, 2017 and 2016, respectively, from its collaboration with Biogen. Below is a summary of the components of the collaboration revenue: For the Three Months Ended March 31, For the Nine Months Ended March 31, 2017 2016 2017 2016 (dollars in thousands) (dollars in thousands) Amortization of non-refundable upfront fees $ 7,907 $ 11,725 $ 30,435 $ 29,442 Milestone revenue — — — 5,000 Other 390 157 524 275 Total collaboration revenue $ 8,297 $ 11,882 $ 30,959 $ 34,717 During the nine months ended March 31, 2016, the Company recorded $5.0 As a result of the upfront payment of $94.0 million made by Biogen and achievement of the $5.0 million milestone as discussed above, the Company became liable to various research partner institutions for sub-license and other payments under existing agreements with such institutions. These agreements obligate the Company to pay to each research partner institution, amounts that range from 5% to 10% of certain proceeds received from collaboration and other arrangements, including any milestone payments received under such arrangements. As a result, the Company recorded total collaboration costs of approximately $12.0 million associated with such obligations during the six months ended December 31,2015. These collaboration costs included $0.6 million of expense that was settled during that period by the issuance of 40,000 shares of the Company’s common stock to a research partner institution, pursuant to the terms of the existing agreement with that institution. The remainder of these sub-license and milestone fees were fully paid in cash during the fiscal year ended June 30, 2016. The Company is also eligible to receive payments of up to $467.5 million based on the successful achievement of future milestones under the two lead programs and Biogen will pay revenue-based royalties for each licensed product at tiered rates ranging from high single digit to mid-teen percentages of annual net sales of the XLRS or XLRP products and at rates ranging from mid-single digit to low-teen percentages of annual net sales for the discovery products. Due to the uncertainty surrounding the achievement of the future milestones, such payments were not considered fixed or determinable at the inception of the Collaboration Agreement and accordingly, will not be recognized as revenue unless and until they become earned. The Company is not able to reasonably predict if and when the remaining milestones will be achieved. |
Agreement with Bionic Sight LLC
Agreement with Bionic Sight LLC | 9 Months Ended |
Mar. 31, 2017 | |
Bionic Sight LLC [Member] | |
Collaboration Agreement | 7. Agreement with Bionic Sight LLC Collaboration Agreement On February 2, 2017, the Company entered into a strategic research and development collaboration agreement with Bionic Sight, LLC (“Bionic Sight”), to develop therapies for patients with visual deficits and blindness due to retinal disease. Through the AGTC-Bionic Sight collaboration, the companies seek to develop a new optogenetic therapy that leverages AGTC’s deep experience in gene therapy and ophthalmology and Bionic Sight’s innovative neuro-prosthetic device and algorithm for retinal coding. Under the agreement, AGTC made an initial $2.0 million payment to Bionic Sight for an equity interest in that company. This initial investment represents an approximate 5 percent equity interest in Bionic Sight. In addition to the initial investment, AGTC will contribute to ongoing research and development support costs through additional payments or other in-kind contributions. If the IND Trigger is attained, AGTC will receive additional equity, based on the valuation in place at the beginning of the agreement, for its cash and “in kind ” research and development contributions and will be obligated to purchase additional equity in Bionic Sight for $4.0 The Company recorded its initial $2.0 million investment in Bionic Sight using the cost method of accounting for investments, which is recorded as “non-current other assets” The collaboration agreement grants to AGTC, subject to achievement by Bionic Sight of certain development milestones, an option to exclusively negotiate for a limited period of time to acquire (i) a majority equity interest in Bionic Sight, (ii) the Bionic Sight assets to which the collaboration agreement relates, or (iii) an exclusive license with respect to the product to which the collaboration agreement relates. |
Summary of Significant Accoun13
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | (a) Basis of presentation The adjustments referred to above are of a normal and recurring nature. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to U.S. Securities and Exchange Commission (“SEC”) rules and regulations for interim reporting. Certain amounts reported previously have been reclassified to conform to the current period presentation, with no effect on stockholders’ equity or net income (loss) as previously presented. The Condensed Balance Sheet as of June 30, 2016 was derived from audited financial statements, but does not include all disclosures required by GAAP. These Unaudited Condensed Financial Statements should be read in conjunction with the audited financial statements included in the Company’s 2016 Annual Report on Form 10-K, as amended, (“June 30, 2016 Form 10-K”). Results of operations for the three and nine months ended March 31, 2017 are not necessarily indicative of the results to be expected for the full year or any other interim period. |
Use of Estimates | (b) Use of estimates |
Cash and Cash Equivalents | (c) Cash and cash equivalents |
Investments | (d) Investments The Company uses the specific identification method to determine the cost basis of securities sold. Investments are considered to be impaired when a decline in fair value is judged to be other-than-temporary. The Company evaluates an investment for impairment by considering the length of time and extent to which market value has been less than cost or amortized cost, the financial condition and near-term prospects of the issuer as well as specific events or circumstances that may influence the operations of the issuer and the Company’s intent to sell the security or the likelihood that it will be required to sell the security before recovery of the entire amortized cost. Once a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded to other income (expense) and a new cost basis in the investment is established. |
Fair Value of Financial Instruments | (e) Fair value of financial instruments Fair Value Measurements and Disclosures Level 1—Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2—Valuations based on quoted prices for similar assets or liabilities in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 3—Valuations that require inputs that reflect the Company’s own assumptions that are both significant to the fair value measurement and unobservable. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. |
Intangible Assets | (f) Intangible assets |
Revenue Recognition | (g) Revenue recognition Amounts received prior to satisfying the revenue recognition criteria are recorded as deferred revenue in the Company’s unaudited condensed balance sheets. Amounts expected to be recognized as revenue within the 12 months following the balance sheet date are classified as current liabilities. The Company recognizes revenue for reimbursements of research and development costs under collaboration agreements as the services are performed. The Company records these reimbursements as revenue and not as a reduction of research and development expenses, as the Company has the risks and rewards as the principal in the research and development activities. The Company evaluates the terms of sponsored research agreement grants and federal grants to assess the Company’s obligations and if the Company’s obligations are satisfied by the passage of time, revenue is recognized on a straight-line basis. In situations where the performance of the Company’s obligations has been satisfied when the grant is received, revenue is recognized upon receipt of the grant. Certain grants contain refund provisions. The Company reviews those refund provisions to determine the likelihood of repayment. If the likelihood of repayment of the grant is determined to be remote, the grant is recognized as revenue. If the probability of repayment is determined to be more than remote, the Company records the grant as a deferred revenue, until such time that the grant requirements have been satisfied. Collaboration revenue On July 1, 2015, the Company entered into the Collaboration Agreement. This collaboration is discussed further in Note 6 to these financial statements. The terms of this Collaboration Agreement and other potential collaboration or commercialization agreements the Company may enter into generally contain multiple elements, or deliverables, which may include, among others, (i) licenses, or options to obtain licenses, to its technology, and (ii) research and development activities to be performed on behalf of the collaborative partner. Payments made under such arrangements typically include one or more of the following: non-refundable, up-front license fees; option exercise fees; funding of research and/or development efforts; milestone payments; and royalties on future product sales. Multiple element arrangements are analyzed to determine whether the deliverables within the agreement can be separated or whether they must be treated as a single unit of accounting. Deliverables under an agreement are required to be treated as separate units of accounting provided that (i) a delivered item has value to the customer on a stand-alone basis; and (ii) if the agreement includes a general right of return relative to the delivered item, delivery or performance of the undelivered item is considered probable and substantially in the control of the vendor. The consideration received is allocated among the separate units of accounting using the relative selling price method, and the applicable revenue recognition criteria are applied to each of the separate units. The Company determines the estimated selling price for deliverables within each agreement using vendor-specific objective evidence ("VSOE") of selling price, if available, third-party evidence ("TPE") of selling price if VSOE is not available, or best estimate of selling price ("BESP") if neither VSOE nor TPE are available. Determining the best estimate of selling price for a deliverable requires significant judgment. The Company uses BESP to estimate the selling price related to licenses to its proprietary technology, since it often does not have VSOE or TPE of selling price for these deliverables. In those circumstances where it utilizes BESP to determine the estimated selling price of a license to its proprietary technology, the Company considers market conditions as well as entity-specific factors, including those factors contemplated in negotiating the agreements as well as internally developed models that include assumptions related to the market opportunity, estimated development costs, probability of success and the time needed to commercialize a product candidate pursuant to the license. In validating its best estimate of selling price, the Company evaluates whether changes in the key assumptions used to determine the best estimate of selling price will have a significant effect on the allocation of arrangement consideration among multiple deliverables. If the delivered element does not have stand-alone value, the arrangement is then treated as a single unit of accounting and the Company recognizes the consideration received under the arrangement as revenue on a straight-line basis over its estimated period of performance. The Company’s anticipated periods of performance, typically the terms of its research and development obligations, are subject to estimates by management and may change over the course of the collaboration agreement. Such changes could have a material impact on the amount of revenue recorded in future periods. Milestone revenue The Company applies the milestone method of accounting to recognize revenue from milestone payments when earned, as evidenced by written acknowledgement from the collaborator or other persuasive evidence that the milestone has been achieved and the payment is non-refundable, provided that the milestone event is substantive. A milestone event is defined as an event (i) that can only be achieved based in whole or in part on either the Company’s performance or on the occurrence of a specific outcome resulting from the Company’s performance; (ii) for which there is substantive uncertainty at the inception of the arrangement that the event will be achieved; and (iii) that would result in additional payments being due to the Company. Events for which the occurrence is either contingent solely upon the passage of time or the result of a counterparty’s performance are not considered to be milestone events. A milestone event is substantive if all of the following conditions are met: (i) the consideration is commensurate with either the Company’s performance to achieve the milestone, or the enhancement of the value to the delivered item(s) as a result of a specific outcome resulting from the Company’s performance to achieve the milestone; (ii) the consideration relates solely to past performance; and (iii) the consideration is reasonable relative to all the deliverables and payment terms (including other potential milestone consideration) within the arrangement. The Company assesses whether a milestone is substantive at the inception of the arrangement. If a milestone is deemed substantive and the milestone payment is nonrefundable, the Company recognizes revenue upon the successful accomplishment of that milestone. Where a milestone is deemed non-substantive, we account for that milestone payment in accordance with the multiple element arrangements guidance and recognize revenue consistent with the related units of accounting for the arrangement over the related performance period. Deferred revenue Amounts received by the Company prior to satisfying the above revenue recognition criteria are recorded as deferred revenue on the unaudited condensed balance sheets. Amounts not expected to be recognized within 12 months of the balance sheet date are classified as non-current deferred revenue on the unaudited condensed balance sheets. |
Research and Development | (h) Research and development Research and development costs also include license and sub-license fees and other direct and incremental costs incurred pursuant to the negotiation of and entry into collaborative and other partnership arrangements. Such costs associated with collaborative and other arrangements are expensed as incurred. As part of the process of preparing its financial statements, the Company is required to estimate its accrued expenses. This process involves reviewing quotations and contracts, identifying services that have been performed on its behalf and estimating the level of service performed and the associated cost incurred for services for which the Company has not yet been invoiced or otherwise notified of the actual cost. The majority of the Company’s service providers invoice the Company monthly in arrears for services performed or when contractual milestones are met. The Company makes estimates of its accrued expenses as of each balance sheet date in its financial statements based on facts and circumstances known to it at that time. The significant estimates in the Company’s accrued research and development expenses are related to expenses incurred with respect to academic research centers, contract research organizations, and other vendors in connection with research and development activities for which it has not yet been invoiced. There may be instances in which the Company’s service providers require advance payments at the inception of a contract or in which payments made to these vendors will exceed the level of services provided, resulting in a prepayment of the research and development expense. Such prepayments are charged to research and development expense as and when the service is provided or when a specific milestone outlined in the contract is reached. Prepayments related to research and development activities were $2.0 million and $2.0 |
Share-based Compensation | ( i ) Share-based compensation Compensation—Stock Compensation Equity-Based Payments to Non-employees For purposes of calculating stock-based compensation, the Company estimates the fair value of stock options using a Black-Scholes option-pricing model. The determination of the fair value of share-based payment awards utilizing the Black-Scholes model is affected by the Company’s stock price and a number of assumptions, including expected volatility, expected life, risk-free interest rate and expected dividends. If factors change and the Company employs different assumptions, stock-based compensation expense may differ significantly from what has been recorded in the past. If there is a difference between the assumptions used in determining stock-based compensation expense and the actual factors which become known over time, specifically with respect to anticipated forfeitures, the Company may change the input factors used in determining stock-based compensation costs for future grants. These changes, if any, may materially impact the Company’s results of operations in the period such changes are made. |
Income Taxes | (j) Income taxes to examination of its income tax returns in the federal and state income tax jurisdictions in which it operates. For the three and nine month periods ended March 31, 2017, the Company recorded an income tax provision of $0.2 million and $0.5 million, respectively, based on the Company’s alternative minimum taxable income (“AMTI”). The Company calculates its AMTI using the alternative minimum tax (“AMT”) system. The Company’s federal income tax liability is the greater of the tax computed using the regular tax system or the tax under the AMT system. Corporations are exempt from AMT for all prior years in which their annual gross receipts for the 3-year period ending before the current tax year did not exceed $7.5 million . As of March 31,2017 and June 30, 2016, the Company did not have any significant uncertain tax positions. |
Net (Loss) Income per Share | (k) Net (loss) income per share - The dilutive impact of options and other share-based compensation awards during the nine months ended March 31, 2017, was 0.3 million shares and 0.4 million shares |
Comprehensive Income or Loss | (l) Comprehensive income or loss |
New Accounting Pronouncements | (m) New accounting pronouncements Leases (Topic 842) In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting Compensation – Stock Compensation In May 2014, the FASB issued guidance that requires companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods or services. It also requires enhanced disclosures about revenue, provides guidance for transactions that were not previously addressed comprehensively, and improves guidance for multiple-element arrangements. The guidance applies to any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. In July 2015, the FASB delayed the effective date of this guidance by one year. The guidance is now effective for public companies for annual periods beginning after December 15, 2017 as well as interim periods within those annual periods using either the full retrospective approach or modified retrospective approach. The Company is currently evaluating the impact of the new guidance on its financial statements. |
Certificates of Deposit | Certificates of Deposit. The Company’s certificates of deposit are placed through an account registry service. The fair value measurement of the Company’s certificates of deposit is considered Level 2 of the fair value hierarchy as the inputs are based on quoted prices for identical assets in markets that are not active. The carrying amounts of the Company’s certificates of deposit reported in the unaudited condensed balance sheets approximate fair value. |
Debt Securities - Held-to-maturity | Debt securities – held-to-maturity. The Company’s investments in debt securities classified as held-to-maturity generally include U.S. Treasury Securities, government agency obligations, and corporate obligations. U.S. Treasury Securities and U.S. government agency obligations are valued using quoted market prices. Valuation adjustments are not applied. Accordingly, U.S. Treasury Securities are considered Level 1 of the fair value hierarchy. The fair values of U.S. government agency and corporate obligations are generally determined using recently executed transactions, broker quotes, market price quotations where these are available or other observable market inputs for the same or similar securities. As such, the Company classifies its investments in U.S. agency and corporate obligations within Level 2 of the hierarchy. |
Share-based Compensation Plans
Share-based Compensation Plans (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock Option Activity | A summary of the stock option activity for the nine months ended March 31, 2017 and 2016 is as follows: For the Nine Months Ended March 31, 2017 2016 (In thousands, except per share amounts) Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Outstanding at June 30, 2,037 $ 13.71 1,484 $ 11.83 Granted 831 11.00 567 17.30 Exercised (31 ) 0.90 (44 ) 5.27 Forfeited (93 ) 13.98 (39 ) 12.90 Expired (29 ) 17.07 (6 ) 15.50 Outstanding at March 31, 2,715 $ 12.98 1,962 $ 13.53 Exercisable at March 31, 1,392 810 Weighted average fair value of options granted during the period $ 7.59 $ 12.00 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Investments Schedule [Abstract] | |
Summary of Company's Investments | The following table summarizes the Company’s investments by category as of March 31, 2017 and June 30, 2016: March 31, June 30, In thousands 2017 2016 Investments - Current: Certificates of deposit $ 7,288 $ 18,093 Debt securities - held-to-maturity 88,940 51,571 Total $ 96,228 $ 69,664 Investments - Noncurrent: Certificates of deposit $ 2,824 $ 2,544 Debt securities - held-to-maturity 14,171 71,639 Total $ 16,995 $ 74,183 |
Summary of Company's Debt Securities Held-to-Maturity | A summary of the Company’s debt securities classified as held-to-maturity is as follows: At March 31, 2017 In thousands Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Investments - Current: U.S. government and agency obligations $ 86,016 $ — $ (136 ) $ 85,880 Corporate obligations 2,924 (1 ) 2,923 $ 88,940 $ — $ (137 ) $ 88,803 Investments - Noncurrent: U.S. government and agency obligations $ 12,065 $ — $ (65 ) $ 12,000 Corporate obligations 2,106 (9 ) 2,097 $ 14,171 $ — $ (74 ) $ 14,097 At June 30, 2016 In thousands Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Investments - Current: U.S. government and agency obligations $ 40,609 $ 12 $ (2 ) $ 40,619 Corporate obligations 10,962 3 (1 ) 10,964 $ 51,571 $ 15 $ (3 ) $ 51,583 Investments - Noncurrent: U.S. government and agency obligations $ 71,639 $ 53 $ (11 ) $ 71,681 $ 71,639 $ 53 $ (11 ) $ 71,681 |
Summary of Amortized Cost and Fair Value of Held-to-Maturity Debt Securities | The amortized cost and fair value of held-to-maturity debt securities as of March 31, 2017, by contractual maturity, were as follows: In thousands Amortized Cost Fair Value Due in one year or less $ 88,940 $ 88,803 Due after one year through two years 14,171 14,097 $ 103,111 $ 102,900 |
Fair Value of Financial Instr16
Fair Value of Financial Instruments and Investments (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Major Category of Company's Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following fair value hierarchy table presents information about each major category of the Company’s financial assets and liabilities measured at fair value on a recurring basis: In thousands Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Total Fair Value Total Carrying Value March 31, 2017 Cash and cash equivalents $ 35,500 $ — $ — $ 35,500 $ 35,500 Certificates of deposit — 10,100 — 10,100 10,112 Held-to-maturity investments: Corporate obligations — 5,022 — 5,022 5,030 U.S. government and agency obligations 77,512 20,366 — 97,878 98,081 Total assets $ 113,012 $ 35,488 $ — $ 148,500 $ 148,723 June 30, 2016 Cash and cash equivalents $ 28,868 $ — $ — $ 28,868 $ 28,868 Certificates of deposit — 20,626 — 20,626 20,637 Held-to-maturity investments: Corporate obligations — 10,964 — 10,964 10,962 U.S. government and agency obligations 73,809 38,491 — 112,300 112,248 Total assets $ 102,677 $ 70,081 $ — $ 172,758 $ 172,715 |
Collaboration Agreement with 17
Collaboration Agreement with Biogen (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Components of Collaboration Revenue | Below is a summary of the components of the collaboration revenue: For the Three Months Ended March 31, For the Nine Months Ended March 31, 2017 2016 2017 2016 (dollars in thousands) (dollars in thousands) Amortization of non-refundable upfront fees $ 7,907 $ 11,725 $ 30,435 $ 29,442 Milestone revenue — — — 5,000 Other 390 157 524 275 Total collaboration revenue $ 8,297 $ 11,882 $ 30,959 $ 34,717 |
Organization and Operations - A
Organization and Operations - Additional Information (Detail) $ / shares in Units, $ in Thousands | Aug. 14, 2015TargetIndication | Aug. 31, 2015USD ($)shares | Aug. 31, 2014USD ($)$ / sharesshares | Apr. 30, 2014USD ($)$ / sharesshares | Mar. 31, 2017USD ($)shares | Mar. 31, 2016USD ($) | Mar. 31, 2017USD ($)shares | Mar. 31, 2016USD ($) | Jun. 30, 2016USD ($)shares | Jul. 31, 2014$ / sharesshares |
Summary Of Organization And Operations [Line Items] | ||||||||||
Common stock, shares issued | shares | 18,084,000 | 18,084,000 | 18,053,000 | |||||||
Aggregate net proceeds received | $ 19,211 | |||||||||
Accumulated deficit | $ (85,148) | $ (85,148) | $ (90,033) | |||||||
Cash, cash equivalents and short-term and long term investments | 148,700 | 148,700 | ||||||||
Net income (loss) | $ (821) | $ 1,969 | $ 4,886 | $ (4,109) | ||||||
Collaboration Agreement [Member] | BIOGEN [Member] | ||||||||||
Summary Of Organization And Operations [Line Items] | ||||||||||
Common stock, shares issued | shares | 1,453,957 | |||||||||
Aggregate net proceeds received | $ 30,000 | |||||||||
Number of target indications | TargetIndication | 3 | |||||||||
IPO [Member] | ||||||||||
Summary Of Organization And Operations [Line Items] | ||||||||||
Initial public offering closing date | Apr. 30, 2014 | |||||||||
Common stock, shares issued | shares | 4,166,667 | |||||||||
Common stock, share price | $ / shares | $ 12 | |||||||||
Over Allotment Option [Member] | ||||||||||
Summary Of Organization And Operations [Line Items] | ||||||||||
Common stock, shares issued | shares | 625,000 | |||||||||
Common stock, share price | $ / shares | $ 12 | |||||||||
IPO and Over Allotment Option [Member] | ||||||||||
Summary Of Organization And Operations [Line Items] | ||||||||||
Proceeds from initial public offering | $ 51,600 | |||||||||
Follow on Public Offerings [Member] | ||||||||||
Summary Of Organization And Operations [Line Items] | ||||||||||
Common stock, shares issued | shares | 2,000,000 | |||||||||
Common stock, share price | $ / shares | $ 15 | |||||||||
Underwritten Follow On Offering [Member] | ||||||||||
Summary Of Organization And Operations [Line Items] | ||||||||||
Common stock, shares issued | shares | 300,000 | |||||||||
Common stock, share price | $ / shares | $ 15 | |||||||||
Aggregate net proceeds received | $ 32,000 |
Summary of Significant Accoun19
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) shares in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Jun. 30, 2016 | |
Summary Of Significant Accounting Policies [Line Items] | |||||
Income tax provision | $ 221,000 | $ 0 | $ 519,000 | $ 0 | |
Estimated tax payments | $ 500,000 | $ 500,000 | |||
Dilutive impact of options and other share based compensation awards | 0.4 | 0.3 | |||
Anti-dilutive shares excluded from computation of diluted loss per share | 0.3 | 0.4 | |||
Prepaid and other current assets [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Advance payments | $ 2,000,000 | $ 2,000,000 | $ 2,000,000 | ||
Minimum [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Estimated useful life of intangible assets | 8 years | ||||
Maximum [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Estimated useful life of intangible assets | 20 years | ||||
Tax exemption from AMT on annual gross receipts for last three years period | $ 7,500,000 |
Share-based Compensation Plan20
Share-based Compensation Plans - Additional Information (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017USD ($)shares | Mar. 31, 2016USD ($) | Mar. 31, 2017USD ($)Planshares | Mar. 31, 2016USD ($) | |
Stock Options [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 1,200 | $ 1,100 | $ 4,200 | $ 3,400 |
Unrecognized compensation expense | $ 12,600 | $ 12,600 | ||
Restricted Share Awards [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 0 | $ 166 | ||
2013 Employee Stock Purchase Plan [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of equity compensation plans | Plan | 2 | |||
Share based awards issued | shares | 0 | |||
Number of shares authorized | shares | 128,571 | 128,571 |
Share-based Compensation Plan21
Share-based Compensation Plans - Summary of Stock Option Activity (Detail) - $ / shares shares in Thousands | 9 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Outstanding Beginning Balance, Shares | 2,037 | 1,484 |
Granted, Shares | 831 | 567 |
Exercised, Shares | (31) | (44) |
Forfeited, Shares | (93) | (39) |
Expired, Shares | (29) | (6) |
Outstanding Ending Balance, Shares | 2,715 | 1,962 |
Exercisable, end of period, Shares | 1,392 | 810 |
Weighted average fair value of options granted during the period | $ 7.59 | $ 12 |
Outstanding Beginning Balance, Weighted Average Exercise Price | 13.71 | 11.83 |
Granted, Weighted Average Exercise Price | 11 | 17.30 |
Exercised, Weighted Average Exercise Price | 0.90 | 5.27 |
Forfeited, Weighted Average Exercise Price | 13.98 | 12.90 |
Expired, Weighted Average Exercise Price | 17.07 | 15.50 |
Outstanding Ending Balance, Weighted Average Exercise Price | $ 12.98 | $ 13.53 |
Investments - Summary of Compan
Investments - Summary of Company's Investments (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Jun. 30, 2016 |
Investments - Current: | ||
Certificates of deposit | $ 7,288 | $ 18,093 |
Debt securities - held-to-maturity | 88,940 | 51,571 |
Total | 96,228 | 69,664 |
Investments - Noncurrent: | ||
Certificates of deposit | 2,824 | 2,544 |
Debt securities - held-to-maturity | 14,171 | 71,639 |
Total | $ 16,995 | $ 74,183 |
Investments - Summary of Comp23
Investments - Summary of Company's Debt Securities Held-to-Maturity (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Jun. 30, 2016 |
Investments - Current [Member] | ||
Investments | ||
Amortized Cost | $ 88,940 | $ 51,571 |
Gross Unrealized Gains | 0 | 15 |
Gross Unrealized Losses | (137) | (3) |
Fair Value | 88,803 | 51,583 |
Investments - Noncurrent [Member] | ||
Investments | ||
Amortized Cost | 14,171 | 71,639 |
Gross Unrealized Gains | 0 | 53 |
Gross Unrealized Losses | (74) | (11) |
Fair Value | 14,097 | 71,681 |
US Government and Agencies Obligations [Member] | Investments - Current [Member] | ||
Investments | ||
Amortized Cost | 86,016 | 40,609 |
Gross Unrealized Gains | 0 | 12 |
Gross Unrealized Losses | (136) | (2) |
Fair Value | 85,880 | 40,619 |
US Government and Agencies Obligations [Member] | Investments - Noncurrent [Member] | ||
Investments | ||
Amortized Cost | 12,065 | 71,639 |
Gross Unrealized Gains | 0 | 53 |
Gross Unrealized Losses | (65) | (11) |
Fair Value | 12,000 | 71,681 |
Corporate Obligations [Member] | Investments - Current [Member] | ||
Investments | ||
Amortized Cost | 2,924 | 10,962 |
Gross Unrealized Gains | 0 | 3 |
Gross Unrealized Losses | (1) | (1) |
Fair Value | 2,923 | $ 10,964 |
Corporate Obligations [Member] | Investments - Noncurrent [Member] | ||
Investments | ||
Amortized Cost | 2,106 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (9) | |
Fair Value | $ 2,097 |
Investments - Summary of Amorti
Investments - Summary of Amortized Cost and Fair Value of Held-to-Maturity Debt Securities (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Jun. 30, 2016 |
Investments Schedule [Abstract] | ||
Amortized cost due in one year or less | $ 88,940 | |
Amortized cost due after one year through two years | 14,171 | $ 71,639 |
Total amortized cost | 103,111 | |
Fair value due in one year or less | 88,803 | |
Fair value due after one year through two years | 14,097 | |
Total fair value | $ 102,900 |
Fair Value of Financial Instr25
Fair Value of Financial Instruments and Investments - Schedule of Major Category of Company's Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Jun. 30, 2016 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets, carrying value | $ 158,780 | $ 180,797 |
Fair Value on a Recurring Basis [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets, fair value | 148,500 | 172,758 |
Assets, carrying value | 148,723 | 172,715 |
Fair Value on a Recurring Basis [Member] | Cash and Cash Equivalents [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets, fair value | 35,500 | 28,868 |
Assets, carrying value | 35,500 | 28,868 |
Fair Value on a Recurring Basis [Member] | Certificate of Deposit [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets, fair value | 10,100 | 20,626 |
Assets, carrying value | 10,112 | 20,637 |
Fair Value on a Recurring Basis [Member] | Corporate Obligations [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets, fair value | 5,022 | 10,964 |
Assets, carrying value | 5,030 | 10,962 |
Fair Value on a Recurring Basis [Member] | US Government and Agencies Obligations [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets, fair value | 97,878 | 112,300 |
Assets, carrying value | 98,081 | 112,248 |
Fair Value on a Recurring Basis [Member] | Quoted Prices in Active markets (Level 1) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets, fair value | 113,012 | 102,677 |
Fair Value on a Recurring Basis [Member] | Quoted Prices in Active markets (Level 1) [Member] | Cash and Cash Equivalents [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets, fair value | 35,500 | 28,868 |
Fair Value on a Recurring Basis [Member] | Quoted Prices in Active markets (Level 1) [Member] | US Government and Agencies Obligations [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets, fair value | 77,512 | 73,809 |
Fair Value on a Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets, fair value | 35,488 | 70,081 |
Fair Value on a Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Certificate of Deposit [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets, fair value | 10,100 | 20,626 |
Fair Value on a Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Corporate Obligations [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets, fair value | 5,022 | 10,964 |
Fair Value on a Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | US Government and Agencies Obligations [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets, fair value | $ 20,366 | $ 38,491 |
Collaboration Agreement with 26
Collaboration Agreement with Biogen - Additional Information (Detail) | Aug. 14, 2015TargetIndication | Jun. 30, 2015 | Aug. 31, 2015USD ($)$ / sharesshares | Mar. 31, 2017USD ($)shares | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($)shares | Mar. 31, 2017USD ($)Programshares | Mar. 31, 2016USD ($) | Jun. 30, 2016USD ($)shares |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||||
Common stock, shares issued | shares | 18,084,000 | 18,084,000 | 18,053,000 | ||||||
Aggregate cash purchase price | $ 18,000 | $ 18,000 | $ 18,000 | ||||||
Aggregate net proceeds received | $ 19,211,000 | ||||||||
Collaboration revenue | 8,297,000 | $ 11,882,000 | $ 30,959,000 | 34,717,000 | |||||
Share-settled collaboration expense | 636,000 | ||||||||
Collaboration Agreement [Member] | BIOGEN [Member] | |||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||||
Number of target indications | TargetIndication | 3 | ||||||||
Non-refundable upfront payments received | $ 94,000,000 | ||||||||
Common stock, shares issued | shares | 1,453,957 | ||||||||
Purchase price of common stock | $ / shares | $ 20.63 | ||||||||
Aggregate cash purchase price | $ 30,000,000 | ||||||||
Aggregate net proceeds received | $ 30,000,000 | ||||||||
Percentage common stock post-issuance | 8.10% | ||||||||
Premium price per share | $ / shares | $ 7.45 | ||||||||
Premium recorded as deferred revenue | $ 10,800,000 | ||||||||
Deferred revenue recognition period | For amounts received up-front and initially deferred, the Company will recognize the deferred revenue on a straight-line basis over the estimated service periods in which it is required to perform the research and development activities associated with each unit of accounting, anticipated to be between 2 and 3 years. | ||||||||
Collaboration revenue | 8,297,000 | $ 11,882,000 | $ 30,959,000 | 34,717,000 | |||||
Milestone revenue | $ 5,000,000 | ||||||||
Total collaboration costs | $ 12,000,000 | ||||||||
Share-settled collaboration expense | $ 600,000 | ||||||||
Collaboration Agreement [Member] | BIOGEN [Member] | Minimum [Member] | |||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||||
Deferred revenue recognition estimated service period | 2 years | ||||||||
Percentage of proceeds from collaboration and other arrangements payable to sub-license and other payments | 5.00% | ||||||||
Collaboration Agreement [Member] | BIOGEN [Member] | Maximum [Member] | |||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||||
Deferred revenue recognition estimated service period | 4 years | ||||||||
Percentage of proceeds from collaboration and other arrangements payable to sub-license and other payments | 10.00% | ||||||||
Potential future milestone payments receivable | 467,500,000 | $ 467,500,000 | |||||||
Collaboration Agreement [Member] | BIOGEN [Member] | Discovery programs [Member] | |||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||||
Number of programs | Program | 3 | ||||||||
Collaboration Agreement [Member] | BIOGEN [Member] | Discovery programs [Member] | Maximum [Member] | |||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||||
Potential future milestone payments receivable | $ 592,500,000 | $ 592,500,000 | |||||||
Collaboration Agreement [Member] | Research Partner Institution [Member] | |||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||||
Common stock, shares issued | shares | 40,000 |
Collaboration Agreement with 27
Collaboration Agreement with Biogen - Components of Collaboration Revenue (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Total collaboration revenue | $ 8,297 | $ 11,882 | $ 30,959 | $ 34,717 |
Collaboration Agreement [Member] | BIOGEN [Member] | ||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Amortization of non-refundable upfront fees | 7,907 | 11,725 | 30,435 | 29,442 |
Milestone revenue | 5,000 | |||
Other | 390 | 157 | 524 | 275 |
Total collaboration revenue | $ 8,297 | $ 11,882 | $ 30,959 | $ 34,717 |
Agreement with Bionic Sight L28
Agreement with Bionic Sight LLC - Additional Information (Detail) $ in Thousands | Feb. 02, 2017USD ($)Site | Mar. 31, 2017USD ($) |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||
Payments to acquire equity interest | $ 2,000 | |
Bionic Sight LLC [Member] | Strategic Research and Development Collaboration Agreement [Member] | ||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||
Payments to acquire equity interest | $ 2,000 | |
Percentage of initial investment in equity interest | 5.00% | |
Bionic Sight LLC [Member] | Strategic Research and Development Collaboration Agreement [Member] | Non-current Other Assets [Member] | ||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||
Cost method investments | $ 2,000 | |
Bionic Sight LLC [Member] | Strategic Research and Development Collaboration Agreement [Member] | If IND Trigger Attained [Member] | ||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||
Obligated to purchase additional equity at pre-determined valuation | $ 4,000 | |
Bionic Sight LLC [Member] | Strategic Research and Development Collaboration Agreement [Member] | Minimum [Member] | IND Trigger [Member] | ||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||
Number of clinical site required to conduct clinical trials | Site | 1 |