Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 1-May-15 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | OMED | |
Entity Registrant Name | OncoMed Pharmaceuticals Inc | |
Entity Central Index Key | 1302573 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 30,018,230 |
Condensed_Balance_Sheets
Condensed Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $29,115 | $28,138 |
Short-term investments | 183,933 | 203,828 |
Receivables-related parties | 15 | 21 |
Tax receivable | 7,102 | 7,102 |
Prepaid and other current assets | 1,799 | 1,721 |
Total current assets | 221,964 | 240,810 |
Property and equipment, net | 5,119 | 5,104 |
Other assets | 1,925 | 1,928 |
Total assets | 229,008 | 247,842 |
Current liabilities: | ||
Accounts payable | 3,073 | 4,428 |
Accrued liabilities | 13,092 | 14,683 |
Current portion of deferred revenue | 17,636 | 18,747 |
Current portion of deferred rent | 693 | 678 |
Liability for shares issued with repurchase rights | 10 | 10 |
Total current liabilities | 34,504 | 38,546 |
Deferred revenue, less current portion | 126,547 | 130,123 |
Deferred rent, less current portion | 2,287 | 2,468 |
Non-current income tax payable | 345 | 334 |
Liability for shares issued with repurchase rights, less current portion | 2 | 4 |
Total liabilities | 163,685 | 171,475 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $0.001 par value; 5,000,000 shares authorized at March 31, 2015 and December 31, 2014; no shares issued and outstanding at March 31, 2015 and December 31, 2014 | ||
Common stock, $0.001 par value; 145,000,000 shares authorized at March 31, 2015 and December 31, 2014; 29,988,963 shares and 29,847,577 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively | 30 | 30 |
Additional paid-in capital | 304,183 | 300,790 |
Accumulated other comprehensive income (loss) | 75 | -17 |
Accumulated deficit | -238,965 | -224,436 |
Total stockholders' equity | 65,323 | 76,367 |
Total liabilities and stockholders' equity | $229,008 | $247,842 |
Condensed_Balance_Sheets_Paren
Condensed Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 145,000,000 | 145,000,000 |
Common stock, shares issued | 29,988,963 | 29,847,577 |
Common stock, shares outstanding | 29,988,963 | 29,847,577 |
Condensed_Statements_of_Operat
Condensed Statements of Operations (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement [Abstract] | ||
Collaboration revenue | $9,687 | $6,015 |
Operating expenses: | ||
Research and development | 19,433 | 16,709 |
General and administrative | 4,794 | 3,213 |
Total operating expenses | 24,227 | 19,922 |
Loss from operations | -14,540 | -13,907 |
Interest and other income, net | 22 | 38 |
Loss before provision for income taxes | -14,518 | -13,869 |
Provision for income taxes | 11 | 2 |
Net loss | ($14,529) | ($13,871) |
Net loss per common share, basic and diluted | ($0.49) | ($0.47) |
Shares used to compute net loss per common share, basic and diluted | 29,908,307 | 29,443,230 |
Condensed_Statements_of_Compre
Condensed Statements of Comprehensive Loss (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Net loss | ($14,529) | ($13,871) |
Other comprehensive income (loss): | ||
Unrealized gain (loss) on available-for-sale securities, net of tax | 92 | -43 |
Total comprehensive loss | ($14,437) | ($13,914) |
Condensed_Statements_of_Cash_F
Condensed Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operating activities | ||
Net loss | ($14,529) | ($13,871) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 383 | 328 |
Gain on disposal of equipment | -39 | |
Stock-based compensation | 2,387 | 690 |
Amortization of discount on short-term investments | -21 | -23 |
Changes in operating assets and liabilities: | ||
Receivables-related parties | 6 | |
Prepaid and other current assets | -78 | 25 |
Other assets | 3 | -186 |
Accounts payable | -1,355 | -2,771 |
Accrued liabilities | -1,580 | 206 |
Deferred revenue | -4,687 | -6,015 |
Deferred rent | -166 | -153 |
Income tax payable | -10,758 | |
Net cash used in operating activities | -19,637 | -32,567 |
Investing activities | ||
Purchases of property and equipment | -398 | -610 |
Purchases of short-term investments | -9,992 | -252,991 |
Maturities of short-term investments | 30,000 | 102,272 |
Net cash provided by (used in) investing activities | 19,610 | -151,329 |
Financing activities | ||
Proceeds from issuance of common stock related to the exercise of options and employee stock plan purchases | 1,004 | 915 |
Net cash provided by financing activities | 1,004 | 915 |
Net increase (decrease) in cash and cash equivalents | 977 | -182,981 |
Cash and cash equivalents at beginning of period | 28,138 | 208,931 |
Cash and cash equivalents at end of period | $29,115 | $25,950 |
Organization
Organization | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Organization | 1. Organization |
OncoMed Pharmaceuticals, Inc. (“OncoMed” or the “Company”) is a clinical development-stage biotechnology company focused on discovering and developing first-in-class protein therapeutics targeting cancer stem cells (“CSCs”). The Company was originally incorporated in July 2004 in Delaware. The Company’s operations are based in Redwood City, California and it operates in one segment. | |
The Company has six anti-CSC product candidates in clinical development and has a seventh anti-CSC product candidate in preclinical development. The first candidate currently in clinical development, demcizumab (anti-DLL4, OMP-21M18), has completed a single-agent Phase Ia safety and dose escalation trial. It is currently in Phase Ib combination therapy trials in patients with non-small cell lung cancer (with carboplatin and pemetrexed) and pancreatic cancer (with gemcitabine and Abraxane®) and a Phase Ib/II trial combining demcizumab with paclitaxel in ovarian cancer. The Company is also enrolling patients in a Phase II randomized trial of demcizumab in non-small cell lung cancer (with carboplatin and pemetrexed) and began enrolling patients in a Phase II randomized trial of demcizumab in pancreatic cancer (with gemcitabine and Abraxane®) in April 2015. The second candidate, tarextumab (anti-Notch2/3, OMP-59R5), completed a Phase Ia safety and dose escalation trial. It is currently in the Phase II portion of a Phase Ib/II trial in pancreatic cancer (with gemcitabine and Abraxane®) and also in the Phase II portion of a Phase Ib/II trial in small cell lung cancer (with etoposide and platinum chemotherapy). The third candidate, vantictumab (anti-Fzd7, OMP-18R5), has completed a single-agent Phase Ia trial and is currently in three separate Phase Ib combination trials, one trial each in patients with breast cancer (with paclitaxel), pancreatic cancer (with gemcitabine and Abraxane®) and non-small cell lung cancer (with docetaxel). The fourth candidate, ipafricept (Fzd8-Fc, OMP-54F28), is in a single-agent Phase Ia safety and dose escalation trial in solid tumor malignancies and is currently in three separate Phase Ib combination trials, one trial each in patients with ovarian cancer (with carboplatin and paclitaxel), pancreatic cancer (with gemcitabine and Abraxane®) and hepatocellular carcinoma (with sorafenib). The fifth candidate, brontictuzumab (anti-Notch1, OMP-52M51), is in two single-agent Phase Ia safety and dose escalation trials in hematologic and solid tumor malignancies. In 2014 the Company filed an IND for a sixth product candidate, anti-DLL4/VEGF bispecific (OMP-305B83), and is currently enrolling patients in a single-agent Phase Ia trial in advanced solid tumor patients. The Company also recently filed an IND application for a seventh product candidate, anti-RSPO3 (OMP-131R10). |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Accounting Policies [Abstract] | |||||||||
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies | ||||||||
Basis of Presentation | |||||||||
The Company’s financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and following the requirements of the Securities and Exchange Commission (the “SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP can be condensed or omitted. These financial statements have been prepared on the same basis as the Company’s annual financial statements and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, that are necessary for a fair statement of the Company’s financial information. These interim results are not necessarily indicative of the results to be expected for the year ending December 31, 2015 or for any other interim period or for any other future year. The balance sheet as of December 31, 2014 has been derived from audited financial statements at that date but does not include all of the information required by U.S. GAAP for complete financial statements. | |||||||||
The accompanying condensed financial statements and related financial information should be read in conjunction with the audited financial statements and the related notes thereto contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014, filed with the SEC on March 12, 2015. | |||||||||
Use of Estimates | |||||||||
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the amounts reported in the financial statements and accompanying notes. On an ongoing basis, management evaluates its estimates, including those related to revenue recognition, preclinical study and clinical trial accruals, fair value of assets and liabilities, income taxes, and stock-based compensation. Management bases its estimates on historical experience and on various other market-specific and relevant assumptions that management believes to be reasonable under the circumstances. Actual results may differ from those estimates. | |||||||||
Cash and Cash Equivalents | |||||||||
The Company considers all highly liquid investments with original maturities of 90 days or less at the date of purchase to be cash and cash equivalents. | |||||||||
Short-Term Investments | |||||||||
Short-term investments consist of debt securities classified as available-for-sale and have maturities greater than 90 days, but less than 365 days from the date of acquisition. Short-term investments are carried at fair value based upon quoted market prices. Unrealized gains and losses on available-for-sale securities are excluded from earnings and reported as a component of accumulated other comprehensive income (loss). The cost of available-for-sale securities sold is based on the specific-identification method. | |||||||||
Revenue Recognition | |||||||||
The Company generates substantially all its revenue from collaborative research and development agreements with pharmaceutical companies. The terms of the agreements may include nonrefundable upfront payments, milestone payments, other contingent payments and royalties on any product sales derived from collaborations. These multiple element arrangements are analyzed to determine whether the deliverables can be separated or whether they must be accounted for as a single unit of accounting. | |||||||||
The determination of stand-alone value is generally based on whether any deliverable has stand-alone value to the customer. The Company determines how to allocate arrangement consideration to identified units of accounting based on the selling price hierarchy provided under the relevant guidance. The selling price used for each unit of accounting is based on vendor-specific objective evidence, if available, third-party evidence if vendor-specific objective evidence is not available or estimated selling price if neither vendor-specific nor third-party evidence is available. Management may be required to exercise considerable judgment in determining whether a deliverable is a separate unit of accounting and in estimating the selling prices of identified units of accounting for new agreements. | |||||||||
Typically, the Company has not granted licenses to collaborators at the beginning of its arrangements and thus there are no delivered items separate from the research and development services provided. As such, upfront payments are recorded as deferred revenue in the balance sheet and are recognized as collaboration revenue over the estimated period of performance that is consistent with the terms of the research and development obligations contained in the collaboration agreement. The Company regularly reviews the estimated period of performance based on the progress made under each arrangement. | |||||||||
The Company evaluated the status of its obligations to Bayer in the first quarter of 2015 and determined that the estimated period to complete the Company’s performance of all remaining obligations is December 2015. As a result, the estimated period of performance has been extended by six months from June 2015 to December 2015. Accordingly, the Company is recognizing the remaining unamortized portion of deferred revenue over the revised estimated period of performance on a prospective basis. | |||||||||
Payments that are contingent upon achievement of a substantive milestone are recognized in their entirety in the period in which the milestone is achieved. Milestones are defined as an event that can only be achieved based on the Company’s performance and there is substantive uncertainty about whether the event will be achieved at the inception of the arrangement. Events that are contingent only on the passage of time or only on counterparty performance are not considered milestones. Further, the amounts received must relate solely to prior performance, be reasonable relative to all of the deliverables and payment terms within the agreement and commensurate with the Company’s performance to achieve the milestone after commencement of the agreement. Other contingent payments received for which payment is contingent solely on the results of a collaborative partner’s performance (bonus payments) are not accounted for using the milestone method. Such bonus payments will be recognized as revenue when collectability is reasonably assured. | |||||||||
Payments related to options to license the Company’s program candidates are considered substantive if, at the inception of the arrangement, the Company is at risk as to whether the collaboration partner will choose to exercise the option. Factors that the Company considers in evaluating whether an option is substantive include the overall objective of the arrangement, the benefit the collaborator might obtain from the arrangement without exercising the option, the cost to exercise the option and the likelihood that the option will be exercised. For arrangements under which an option is considered substantive, the Company does not consider the item underlying the option to be a deliverable at the inception of the arrangement and the associated option fees are not included in allocable arrangement consideration, assuming the option is not priced at a significant and incremental discount. Conversely, for arrangements under which an option is not considered substantive or if an option is priced at a significant and incremental discount, the Company would consider the item underlying the option to be a deliverable at the inception of the arrangement and a corresponding amount would be included in allocable arrangement consideration. | |||||||||
Customer Concentration | |||||||||
Customers whose collaboration revenue accounted for 10% or more of total revenues were as follows: | |||||||||
Three Months | |||||||||
Ended March 31, | |||||||||
2015 | 2014 | ||||||||
GlaxoSmithKline LLC (“GSK”) | 55 | % | * | ||||||
Bayer Pharma AG (“Bayer”) | 11 | % | 41 | % | |||||
Celgene Corporation (“Celgene”) | 34 | % | 54 | % | |||||
* | less than 10% | ||||||||
Net Loss per Common Share | |||||||||
Basic net loss per common share is calculated by dividing the net loss by the weighted-average number of common shares outstanding during the period, without consideration for common stock equivalents. Diluted net loss per common share is computed by dividing the net loss by the weighted-average number of common shares and common share equivalents outstanding for the period determined using the treasury-stock method. For purposes of this calculation, potentially dilutive securities consisting of common stock subject to repurchase, stock options and restricted stock units are considered to be common stock equivalents and were excluded in the calculation of diluted net loss per common share because their effect would be anti-dilutive for all periods presented. | |||||||||
Newly Adopted and Recent Accounting Pronouncements | |||||||||
In May 2014, the FASB and the International Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2014-09 (Topic 606)—Revenue from Contracts with Customers (“ASU 2014-09”). This ASU affects any entity that either enters into contracts with customers to transfer goods and services or enters into contracts for the transfer of nonfinancial assets. This ASU will supersede the revenue recognition requirements in Topic 605, and most industry specific guidance. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under today’s guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. ASU 2014-09 would be effective for the Company for annual periods beginning after December 15, 2016, including interim periods within that period. Entities can choose to apply the standard using either the full retrospective approach or a modified retrospective approach. Entities electing the full retrospective adoption will apply the standard to each period presented in the financial statements. This means that entities will have to apply the new guidance as if it had been in effect since the inception of all its contracts with customers presented in the financial statements. Entities that elect the modified retrospective approach will apply the guidance retrospectively only to the most current period presented in the financial statements. This means that entities will have to recognize the cumulative effect of initially applying the new standard as an adjustment to the opening balance of retained earnings at the date of initial application. Early adoption is not permitted under U.S. GAAP. | |||||||||
In April 2015, the FASB proposed a one-year deferral of the effective date for its new revenue standard for public and nonpublic entities reporting under US GAAP. Under the new proposal, the standard would be effective for the Company for annual periods beginning after December 15, 2017. The Company is currently evaluating the impact of adoption of this accounting standards update on its financial statements. |
Cash_Equivalents_and_Investmen
Cash Equivalents and Investments | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Cash and Cash Equivalents [Abstract] | |||||||||||||||||
Cash Equivalents and Investments | 3. Cash Equivalents and Investments | ||||||||||||||||
The fair value of securities, not including cash at March 31, 2015 and December 31, 2014, were as follows (in thousands): | |||||||||||||||||
March 31, 2015 | |||||||||||||||||
Amortized | Gross Unrealized | Fair Value | |||||||||||||||
Cost | Gains | Losses | |||||||||||||||
Money market funds | $ | 8,469 | $ | — | $ | — | $ | 8,469 | |||||||||
U.S. treasury bills | 183,858 | 79 | (4 | ) | 183,933 | ||||||||||||
Total available-for-sale securities | $ | 192,327 | $ | 79 | $ | (4 | ) | $ | 192,402 | ||||||||
Classified as: | |||||||||||||||||
Cash equivalents | $ | 8,469 | |||||||||||||||
Short-term investments | 183.933 | ||||||||||||||||
Total cash equivalents and investments | $ | 192,402 | |||||||||||||||
As of March 31, 2015, the Company had a total of $213.0 million in cash, cash equivalents, and short-term investments, which includes $20.6 million in cash and $192.4 million in cash equivalents and short-term investments. | |||||||||||||||||
December 31, 2014 | |||||||||||||||||
Amortized | Gross Unrealized | Fair Value | |||||||||||||||
Cost | Gains | Losses | |||||||||||||||
Money market funds | $ | 8,460 | $ | — | $ | — | $ | 8,460 | |||||||||
U.S. treasury bills | 203,845 | 37 | (54 | ) | 203,828 | ||||||||||||
Total available-for-sale securities | $ | 212,305 | $ | 37 | $ | (54 | ) | $ | 212,288 | ||||||||
Classified as: | |||||||||||||||||
Cash equivalents | $ | 8,460 | |||||||||||||||
Short-term investments | 203,828 | ||||||||||||||||
Total cash equivalents and investments | $ | 212,288 | |||||||||||||||
As of December 31, 2014, the Company had a total of $232.0 million in cash, cash equivalents, and short-term investments, which includes $19.7 million in cash and $212.3 million in cash equivalents and short-term investments. | |||||||||||||||||
All available-for-sale securities held as of March 31, 2015 and December 31, 2014 had contractual maturities of less than one year. There have been no significant realized gains or losses on available-for-sale securities for the periods presented. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value Measurements | 4. Fair Value Measurements | ||||||||||||||||
The Company records its financial assets and liabilities at fair value. The carrying amounts of certain of the Company’s financial instruments, including cash and cash equivalents, short-term investments, and accounts payable, approximate their fair value due to their short maturities. The accounting guidance for fair value provides a framework for measuring fair value, clarifies the definition of fair value, and expands disclosures regarding fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The accounting guidance establishes a three-tiered hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value as follows: | |||||||||||||||||
• | Level 1: Inputs which include quoted prices in active markets for identical assets and liabilities. | ||||||||||||||||
• | Level 2: Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | ||||||||||||||||
• | Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | ||||||||||||||||
The Company’s financial assets and liabilities subject to fair value measurements on a recurring basis and the level of inputs used in such measurements were as follows (in thousands): | |||||||||||||||||
March 31, 2015 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | |||||||||||||||||
Money market funds | $ | 8,469 | $ | — | $ | — | $ | 8,469 | |||||||||
U.S. treasury bills | — | 183,933 | — | 183,933 | |||||||||||||
Total | $ | 8,469 | $ | 183,933 | $ | — | $ | 192,402 | |||||||||
December 31, 2014 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | |||||||||||||||||
Money market funds | $ | 8,460 | $ | — | $ | — | $ | 8,460 | |||||||||
U.S. treasury bills | — | 203,828 | — | 203,828 | |||||||||||||
Total | $ | 8,460 | $ | 203,828 | $ | — | $ | 212,288 | |||||||||
Where quoted prices are available in an active market, securities are classified as Level 1. The Company classifies money market funds as Level 1. When quoted market prices are not available for the specific security, then the Company estimates fair value by using benchmark yields, reported trades, broker/dealer quotes, and issuer spreads. The Company classifies U.S. Treasury securities as Level 2. There were no transfers between Level 1 and Level 2 during the periods presented. |
Collaborations
Collaborations | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||
Collaborations | 5. Collaborations | ||||||||
Summary of Collaboration Related Revenue | |||||||||
The Company has recognized the following revenues from its collaboration agreements during the three months ended March 31, 2015 and 2014 (in thousands): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
GSK: | |||||||||
Recognition of upfront payment | $ | 312 | $ | 312 | |||||
Milestone revenue | 5,000 | — | |||||||
GSK total | 5,312 | 312 | |||||||
Bayer: | |||||||||
Recognition of upfront payments | 1,111 | 2,439 | |||||||
Bayer total | 1,111 | 2,439 | |||||||
Celgene: | |||||||||
Recognition of upfront payment | 3,264 | 3,264 | |||||||
Celgene total | 3,264 | 3,264 | |||||||
Total collaboration related revenue | $ | 9,687 | $ | 6,015 | |||||
GSK Strategic Alliance | |||||||||
In January 2015 the Company enrolled the first biomarker-selected patient in the expansion stage of the brontictuzumab (anti-Notch1, OMP-52M51) Phase Ia trial in solid tumors. The advancement to the predictive biomarker expansion stage triggered a $5.0 million substantive milestone payment from GSK, which the Company has recognized as collaboration revenue during the three months ended March 31, 2015. | |||||||||
As of March 31, 2015, the Company was eligible to receive in its collaboration with GSK up to $76.0 million in future development milestone payments prior to the completion of certain Phase II proof-of-concept (“POC”) clinical trials. These remaining potential development milestones include up to $16.0 million for the start of certain Phase II clinical trials, including a $5.0 million bonus payment, and up to $60.0 million if GSK exercises its options for the two programs, including a $10.0 million bonus payment. GSK has the option to license the brontictuzumab program as early as the end of Phase Ia or both programs at Phase II POC, and will be responsible for all further development and commercialization following such option exercise. If GSK successfully develops and commercializes both candidates for more than one indication, the Company could receive contingent consideration payments of up to $309.0 million for the achievement of regulatory events and up to $280.0 million upon the achievement of certain levels of worldwide net sales, for a total of $665.0 million of potential future payments. In addition, the Company can earn royalty payments on all future collaboration product sales, if any. As all contingent consideration payments are based solely on the performance of GSK, the Company would recognize the contingent payments upon receipt immediately as collaboration revenue if the Company had no further performance obligations under the agreement with GSK. | |||||||||
Bayer Strategic Alliance | |||||||||
As of March 31, 2015, the Company was eligible to receive up to $10.0 million in future development milestone payments in its collaboration with Bayer for the Company’s development of biologic product candidates, prior to the point that Bayer exercises its options. The Company is eligible to receive up to $55.0 million if Bayer exercises its options for biologic product candidates. Bayer will be responsible for all further development and commercialization following the exercise of an option for a product candidate. The Company is eligible to receive up to $22.0 million in development milestone payments for the small molecule candidates. If Bayer successfully develops and commercializes all of the product candidates for more than one indication, the Company could receive contingent consideration payments of up to $185.0 million for the achievement of regulatory events (up to $135.0 million for biologics and $50.0 million for small molecules) and up to $1.0 billion upon the achievement of specified future product sales (up to $862.5 million for biologics and $140.0 million for small molecules). As all contingent consideration is based solely on the performance of Bayer, the Company would recognize the contingent payments upon receipt immediately as collaboration revenue if the Company had no further performance obligations under the agreement with Bayer. | |||||||||
Celgene Strategic Alliance | |||||||||
As of March 31, 2015, the Company was eligible to receive in its collaboration with Celgene up to $87.5 million in future development milestones across all programs, prior to the point that Celgene exercises its options. The Company is also eligible to receive up to $240.0 million of contingent consideration if Celgene exercises all its options for the biologic and small molecule therapeutic programs. Celgene will be responsible for all further development and commercialization following the exercise of the options for specified programs. If Celgene successfully develops and commercializes all of the product candidates, the Company could receive additional contingent consideration of up to $2.8 billion for the achievement of regulatory events (up to $2.7 billion for biologics and $95.0 million for small molecules). As all contingent consideration is based solely on the performance of Celgene, the Company would recognize the contingent payments upon receipt immediately as collaboration revenue if the Company had no further performance obligations under the Agreement. |
Stock_Incentive_Plans
Stock Incentive Plans | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||
Stock Incentive Plans | 6. Stock Incentive Plans | ||||||||
Equity Incentive Award and Stock Incentive Plans | |||||||||
As of March 31, 2015, a total of 2,981,729 shares of common stock have been authorized under the 2013 Equity Incentive Award Plan (the “2013 Plan”), including the additional 1,193,903 shares of common stock that became available for future issuance under the 2013 Plan as of January 1, 2015 as a result of an annual automatic increase provision in the 2013 Plan. As of March 31, 2015, a total of 1,727,608 shares are subject to options outstanding under the 2013 Plan. There are 1,964,144 shares subject to options outstanding under the 2004 Stock Incentive Plan (the “2004 Plan”) as of March 31, 2015, which will become available for issuance under the 2013 Plan to the extent the options are forfeited or lapse unexercised without issuance of such shares under the 2004 Plan. | |||||||||
The following table summarizes activity under 2004 Plan and 2013 Plan during the three months ended March 31, 2015, including grants to nonemployees and restricted stock units (“RSUs”) granted: | |||||||||
(In thousands) | Shares Available | Options and | |||||||
for Grant | Awards | ||||||||
of Options and | Outstanding | ||||||||
Awards | |||||||||
Balance at December 31, 2014 | 19 | 3,822 | |||||||
Additional shares authorized | 1,194 | — | |||||||
Options granted | (16 | ) | 16 | ||||||
Options exercised | — | (97 | ) | ||||||
Options forfeited | 45 | (45 | ) | ||||||
RSUs forfeited | 4 | (4 | ) | ||||||
Balance at March 31, 2015 | 1,246 | 3,692 | |||||||
The weighted-average grant date estimated fair value of options granted during the three months ended March 31, 2015 was $15.35 per share. | |||||||||
Employee Stock Purchase Plan | |||||||||
As of March 31, 2015, a total of 892,454 shares of common stock have been authorized and 783,121 shares of common stock are available for future issuance under the Company’s Employee Stock Purchase Plan (the “ESPP”). This authorized number includes the additional 298,475 shares of common stock that became available for future issuance under the ESPP as of January 1, 2015 as a result of an annual automatic increase provision in the ESPP. The ESPP allows eligible employees to purchase shares of the Company’s common stock at a discount through payroll deductions of up to 15% of their eligible compensation, subject to any plan limitations. The ESPP provides for six-month offering periods, and at the end of each offering period, employees are able to purchase shares at 85% of the lower of the fair market value of the Company’s common stock on the first trading day of the offering period or on the last day of the offering period. | |||||||||
During the three months ended March 31, 2015, the Company issued 43,424 shares under the ESPP. The Company used the following assumptions to estimate the fair value of the ESPP offered during the three months ended March 31, 2015: expected term of 0.5 years, weighted-average volatility from 51.1% to 72.5%, risk-free interest rate from 0.05% to 0.08% and expected dividend yield of zero. | |||||||||
Restricted Stock Units | |||||||||
In March 2014, the Company awarded 293,980 RSUs under the 2013 Plan. Each vested RSU represents the right to receive one share of common stock. The fair value of the RSU awards was calculated based on the NASDAQ quoted stock price on the date of the grant with the expense being recognized over the vesting period. The RSUs are generally scheduled to vest at the end of three years at March 31, 2017. However, the vesting will be accelerated to 25% of the awarded RSUs upon the payment by Celgene of a designated milestone payment related to Phase II clinical trials of demcizumab (anti-DLL4, OMP-21M18). The stock-based compensation expense for these RSUs is being amortized on the straight-line basis over the three-year vesting period. The Company continues to assess at each reporting date whether achievement of any performance condition is probable and would begin recognizing compensation costs based on the accelerated vesting if and when achievement of the performance condition becomes probable. The Company has recognized the stock-based compensation expense of $703,000 related to these RSUs for the three months ended March 31, 2015. There were no RSUs awarded during the three months ended March 31, 2015. | |||||||||
Stock-Based Compensation | |||||||||
Employee stock-based compensation expense was calculated based on awards expected to vest and has been reduced for estimated forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. | |||||||||
Stock-based compensation expense recognized was as follows (in thousands): | |||||||||
Three Months | |||||||||
Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Research and development | $ | 1,324 | $ | 411 | |||||
General and administrative | 1,063 | 279 | |||||||
Total | $ | 2,387 | $ | 690 | |||||
As of March 31, 2015, the Company had $14.3 million and $6.0 million of unrecognized compensation expense related to unvested stock options and RSUs, respectively, which are expected to be recognized over an estimated weighted-average period of 2.92 years and 2.00 years, respectively. | |||||||||
The estimated grant date fair value of employee stock options was calculated using the Black-Scholes option-pricing model, based on the following assumptions: | |||||||||
Three Months | |||||||||
Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Weighted-average volatility | 65.2 | % | 68.5 | % | |||||
Weighted-average expected term (years) | 6.2 | 6.2 | |||||||
Risk-free interest rate | 1.71 | % | 1.4 | % | |||||
Expected dividend yield | — | — |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. Income Taxes |
During the three months ended March 31, 2015, the Company recorded an income tax provision of $11,000 primarily due to discrete items resulting from interest on prior years’ uncertain tax provisions. The Company expects to generate a net operating loss for the year ending December 31, 2015. The Company’s deferred tax assets continue to be fully offset by a valuation allowance. |
Net_Loss_per_Common_Share
Net Loss per Common Share | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Net Loss per Common Share | 8. Net Loss per Common Share | ||||||||
The following outstanding common stock equivalents were excluded from the computation of diluted net loss per common share for the periods presented because including them would have been antidilutive: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Options to purchase common stock | 3,401,762 | 2,841,279 | |||||||
RSUs | 289,990 | 293,980 | |||||||
3,691,752 | 3,135,259 | ||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Accounting Policies [Abstract] | |||||||||
Basis of Presentation | Basis of Presentation | ||||||||
The Company’s financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and following the requirements of the Securities and Exchange Commission (the “SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP can be condensed or omitted. These financial statements have been prepared on the same basis as the Company’s annual financial statements and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, that are necessary for a fair statement of the Company’s financial information. These interim results are not necessarily indicative of the results to be expected for the year ending December 31, 2015 or for any other interim period or for any other future year. The balance sheet as of December 31, 2014 has been derived from audited financial statements at that date but does not include all of the information required by U.S. GAAP for complete financial statements. | |||||||||
The accompanying condensed financial statements and related financial information should be read in conjunction with the audited financial statements and the related notes thereto contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014, filed with the SEC on March 12, 2015. | |||||||||
Use of Estimates | Use of Estimates | ||||||||
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the amounts reported in the financial statements and accompanying notes. On an ongoing basis, management evaluates its estimates, including those related to revenue recognition, preclinical study and clinical trial accruals, fair value of assets and liabilities, income taxes, and stock-based compensation. Management bases its estimates on historical experience and on various other market-specific and relevant assumptions that management believes to be reasonable under the circumstances. Actual results may differ from those estimates. | |||||||||
Cash and Cash Equivalents | Cash and Cash Equivalents | ||||||||
The Company considers all highly liquid investments with original maturities of 90 days or less at the date of purchase to be cash and cash equivalents. | |||||||||
Short-Term Investments | Short-Term Investments | ||||||||
Short-term investments consist of debt securities classified as available-for-sale and have maturities greater than 90 days, but less than 365 days from the date of acquisition. Short-term investments are carried at fair value based upon quoted market prices. Unrealized gains and losses on available-for-sale securities are excluded from earnings and reported as a component of accumulated other comprehensive income (loss). The cost of available-for-sale securities sold is based on the specific-identification method. | |||||||||
Revenue Recognition | Revenue Recognition | ||||||||
The Company generates substantially all its revenue from collaborative research and development agreements with pharmaceutical companies. The terms of the agreements may include nonrefundable upfront payments, milestone payments, other contingent payments and royalties on any product sales derived from collaborations. These multiple element arrangements are analyzed to determine whether the deliverables can be separated or whether they must be accounted for as a single unit of accounting. | |||||||||
The determination of stand-alone value is generally based on whether any deliverable has stand-alone value to the customer. The Company determines how to allocate arrangement consideration to identified units of accounting based on the selling price hierarchy provided under the relevant guidance. The selling price used for each unit of accounting is based on vendor-specific objective evidence, if available, third-party evidence if vendor-specific objective evidence is not available or estimated selling price if neither vendor-specific nor third-party evidence is available. Management may be required to exercise considerable judgment in determining whether a deliverable is a separate unit of accounting and in estimating the selling prices of identified units of accounting for new agreements. | |||||||||
Typically, the Company has not granted licenses to collaborators at the beginning of its arrangements and thus there are no delivered items separate from the research and development services provided. As such, upfront payments are recorded as deferred revenue in the balance sheet and are recognized as collaboration revenue over the estimated period of performance that is consistent with the terms of the research and development obligations contained in the collaboration agreement. The Company regularly reviews the estimated period of performance based on the progress made under each arrangement. | |||||||||
The Company evaluated the status of its obligations to Bayer in the first quarter of 2015 and determined that the estimated period to complete the Company’s performance of all remaining obligations is December 2015. As a result, the estimated period of performance has been extended by six months from June 2015 to December 2015. Accordingly, the Company is recognizing the remaining unamortized portion of deferred revenue over the revised estimated period of performance on a prospective basis. | |||||||||
Payments that are contingent upon achievement of a substantive milestone are recognized in their entirety in the period in which the milestone is achieved. Milestones are defined as an event that can only be achieved based on the Company’s performance and there is substantive uncertainty about whether the event will be achieved at the inception of the arrangement. Events that are contingent only on the passage of time or only on counterparty performance are not considered milestones. Further, the amounts received must relate solely to prior performance, be reasonable relative to all of the deliverables and payment terms within the agreement and commensurate with the Company’s performance to achieve the milestone after commencement of the agreement. Other contingent payments received for which payment is contingent solely on the results of a collaborative partner’s performance (bonus payments) are not accounted for using the milestone method. Such bonus payments will be recognized as revenue when collectability is reasonably assured. | |||||||||
Payments related to options to license the Company’s program candidates are considered substantive if, at the inception of the arrangement, the Company is at risk as to whether the collaboration partner will choose to exercise the option. Factors that the Company considers in evaluating whether an option is substantive include the overall objective of the arrangement, the benefit the collaborator might obtain from the arrangement without exercising the option, the cost to exercise the option and the likelihood that the option will be exercised. For arrangements under which an option is considered substantive, the Company does not consider the item underlying the option to be a deliverable at the inception of the arrangement and the associated option fees are not included in allocable arrangement consideration, assuming the option is not priced at a significant and incremental discount. Conversely, for arrangements under which an option is not considered substantive or if an option is priced at a significant and incremental discount, the Company would consider the item underlying the option to be a deliverable at the inception of the arrangement and a corresponding amount would be included in allocable arrangement consideration. | |||||||||
Customer Concentration | Customer Concentration | ||||||||
Customers whose collaboration revenue accounted for 10% or more of total revenues were as follows: | |||||||||
Three Months | |||||||||
Ended March 31, | |||||||||
2015 | 2014 | ||||||||
GlaxoSmithKline LLC (“GSK”) | 55 | % | * | ||||||
Bayer Pharma AG (“Bayer”) | 11 | % | 41 | % | |||||
Celgene Corporation (“Celgene”) | 34 | % | 54 | % | |||||
* | less than 10% | ||||||||
Net Loss per Common Share | Net Loss per Common Share | ||||||||
Basic net loss per common share is calculated by dividing the net loss by the weighted-average number of common shares outstanding during the period, without consideration for common stock equivalents. Diluted net loss per common share is computed by dividing the net loss by the weighted-average number of common shares and common share equivalents outstanding for the period determined using the treasury-stock method. For purposes of this calculation, potentially dilutive securities consisting of common stock subject to repurchase, stock options and restricted stock units are considered to be common stock equivalents and were excluded in the calculation of diluted net loss per common share because their effect would be anti-dilutive for all periods presented. | |||||||||
Newly Adopted and Recent Accounting Pronouncements | Newly Adopted and Recent Accounting Pronouncements | ||||||||
In May 2014, the FASB and the International Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2014-09 (Topic 606)—Revenue from Contracts with Customers (“ASU 2014-09”). This ASU affects any entity that either enters into contracts with customers to transfer goods and services or enters into contracts for the transfer of nonfinancial assets. This ASU will supersede the revenue recognition requirements in Topic 605, and most industry specific guidance. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under today’s guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. ASU 2014-09 would be effective for the Company for annual periods beginning after December 15, 2016, including interim periods within that period. Entities can choose to apply the standard using either the full retrospective approach or a modified retrospective approach. Entities electing the full retrospective adoption will apply the standard to each period presented in the financial statements. This means that entities will have to apply the new guidance as if it had been in effect since the inception of all its contracts with customers presented in the financial statements. Entities that elect the modified retrospective approach will apply the guidance retrospectively only to the most current period presented in the financial statements. This means that entities will have to recognize the cumulative effect of initially applying the new standard as an adjustment to the opening balance of retained earnings at the date of initial application. Early adoption is not permitted under U.S. GAAP. | |||||||||
In April 2015, the FASB proposed a one-year deferral of the effective date for its new revenue standard for public and nonpublic entities reporting under US GAAP. Under the new proposal, the standard would be effective for the Company for annual periods beginning after December 15, 2017. The Company is currently evaluating the impact of adoption of this accounting standards update on its financial statements. | |||||||||
Fair Value Measurement Policy | The Company records its financial assets and liabilities at fair value. The carrying amounts of certain of the Company’s financial instruments, including cash and cash equivalents, short-term investments, and accounts payable, approximate their fair value due to their short maturities. The accounting guidance for fair value provides a framework for measuring fair value, clarifies the definition of fair value, and expands disclosures regarding fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The accounting guidance establishes a three-tiered hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value as follows: | ||||||||
• | Level 1: Inputs which include quoted prices in active markets for identical assets and liabilities. | ||||||||
• | Level 2: Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | ||||||||
• | Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | ||||||||
Fair Value of Financial Instruments Policy | Where quoted prices are available in an active market, securities are classified as Level 1. The Company classifies money market funds as Level 1. When quoted market prices are not available for the specific security, then the Company estimates fair value by using benchmark yields, reported trades, broker/dealer quotes, and issuer spreads. The Company classifies U.S. Treasury securities as Level 2. There were no transfers between Level 1 and Level 2 during the periods presented. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Accounting Policies [Abstract] | |||||||||
Schedule of Collaboration Revenue | Customers whose collaboration revenue accounted for 10% or more of total revenues were as follows: | ||||||||
Three Months | |||||||||
Ended March 31, | |||||||||
2015 | 2014 | ||||||||
GlaxoSmithKline LLC (“GSK”) | 55 | % | * | ||||||
Bayer Pharma AG (“Bayer”) | 11 | % | 41 | % | |||||
Celgene Corporation (“Celgene”) | 34 | % | 54 | % | |||||
* | less than 10% |
Cash_Equivalents_and_Investmen1
Cash Equivalents and Investments (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Cash and Cash Equivalents [Abstract] | |||||||||||||||||
Schedule of Fair Value of Securities, Not Including Cash | The fair value of securities, not including cash at March 31, 2015 and December 31, 2014, were as follows (in thousands): | ||||||||||||||||
March 31, 2015 | |||||||||||||||||
Amortized | Gross Unrealized | Fair Value | |||||||||||||||
Cost | Gains | Losses | |||||||||||||||
Money market funds | $ | 8,469 | $ | — | $ | — | $ | 8,469 | |||||||||
U.S. treasury bills | 183,858 | 79 | (4 | ) | 183,933 | ||||||||||||
Total available-for-sale securities | $ | 192,327 | $ | 79 | $ | (4 | ) | $ | 192,402 | ||||||||
Classified as: | |||||||||||||||||
Cash equivalents | $ | 8,469 | |||||||||||||||
Short-term investments | 183.933 | ||||||||||||||||
Total cash equivalents and investments | $ | 192,402 | |||||||||||||||
As of March 31, 2015, the Company had a total of $213.0 million in cash, cash equivalents, and short-term investments, which includes $20.6 million in cash and $192.4 million in cash equivalents and short-term investments. | |||||||||||||||||
December 31, 2014 | |||||||||||||||||
Amortized | Gross Unrealized | Fair Value | |||||||||||||||
Cost | Gains | Losses | |||||||||||||||
Money market funds | $ | 8,460 | $ | — | $ | — | $ | 8,460 | |||||||||
U.S. treasury bills | 203,845 | 37 | (54 | ) | 203,828 | ||||||||||||
Total available-for-sale securities | $ | 212,305 | $ | 37 | $ | (54 | ) | $ | 212,288 | ||||||||
Classified as: | |||||||||||||||||
Cash equivalents | $ | 8,460 | |||||||||||||||
Short-term investments | 203,828 | ||||||||||||||||
Total cash equivalents and investments | $ | 212,288 | |||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Summary of Company's Financial Assets and Liabilities Subject to Fair Value Measurements on Recurring Basis | The Company’s financial assets and liabilities subject to fair value measurements on a recurring basis and the level of inputs used in such measurements were as follows (in thousands): | ||||||||||||||||
March 31, 2015 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | |||||||||||||||||
Money market funds | $ | 8,469 | $ | — | $ | — | $ | 8,469 | |||||||||
U.S. treasury bills | — | 183,933 | — | 183,933 | |||||||||||||
Total | $ | 8,469 | $ | 183,933 | $ | — | $ | 192,402 | |||||||||
December 31, 2014 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | |||||||||||||||||
Money market funds | $ | 8,460 | $ | — | $ | — | $ | 8,460 | |||||||||
U.S. treasury bills | — | 203,828 | — | 203,828 | |||||||||||||
Total | $ | 8,460 | $ | 203,828 | $ | — | $ | 212,288 | |||||||||
Collaborations_Tables
Collaborations (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||
Company Recognized Revenues from Collaboration Agreements | The Company has recognized the following revenues from its collaboration agreements during the three months ended March 31, 2015 and 2014 (in thousands): | ||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
GSK: | |||||||||
Recognition of upfront payment | $ | 312 | $ | 312 | |||||
Milestone revenue | 5,000 | — | |||||||
GSK total | 5,312 | 312 | |||||||
Bayer: | |||||||||
Recognition of upfront payments | 1,111 | 2,439 | |||||||
Bayer total | 1,111 | 2,439 | |||||||
Celgene: | |||||||||
Recognition of upfront payment | 3,264 | 3,264 | |||||||
Celgene total | 3,264 | 3,264 | |||||||
Total collaboration related revenue | $ | 9,687 | $ | 6,015 | |||||
Stock_Incentive_Plans_Tables
Stock Incentive Plans (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||
Summary of Activity under 2004 Plan and 2013 Stock Plan | The following table summarizes activity under 2004 Plan and 2013 Plan during the three months ended March 31, 2015, including grants to nonemployees and restricted stock units (“RSUs”) granted: | ||||||||
(In thousands) | Shares Available | Options and | |||||||
for Grant | Awards | ||||||||
of Options and | Outstanding | ||||||||
Awards | |||||||||
Balance at December 31, 2014 | 19 | 3,822 | |||||||
Additional shares authorized | 1,194 | — | |||||||
Options granted | (16 | ) | 16 | ||||||
Options exercised | — | (97 | ) | ||||||
Options forfeited | 45 | (45 | ) | ||||||
RSUs forfeited | 4 | (4 | ) | ||||||
Balance at March 31, 2015 | 1,246 | 3,692 | |||||||
Schedule of Stock-Based Compensation Expense | Stock-based compensation expense recognized was as follows (in thousands): | ||||||||
Three Months | |||||||||
Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Research and development | $ | 1,324 | $ | 411 | |||||
General and administrative | 1,063 | 279 | |||||||
Total | $ | 2,387 | $ | 690 | |||||
Assumptions Used for Determining Fair Value of Stock Options Using Black-Scholes Valuation Model | The estimated grant date fair value of employee stock options was calculated using the Black-Scholes option-pricing model, based on the following assumptions: | ||||||||
Three Months | |||||||||
Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Weighted-average volatility | 65.2 | % | 68.5 | % | |||||
Weighted-average expected term (years) | 6.2 | 6.2 | |||||||
Risk-free interest rate | 1.71 | % | 1.4 | % | |||||
Expected dividend yield | — | — |
Net_Loss_per_Common_Share_Tabl
Net Loss per Common Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Outstanding Common Stock Equivalents Excluded from Computation of Diluted Net Loss per Common Share | The following outstanding common stock equivalents were excluded from the computation of diluted net loss per common share for the periods presented because including them would have been antidilutive: | ||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Options to purchase common stock | 3,401,762 | 2,841,279 | |||||||
RSUs | 289,990 | 293,980 | |||||||
3,691,752 | 3,135,259 | ||||||||
Organization_Additional_Inform
Organization - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2015 | |
Segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating segment | 1 |
Incorporation date | 31-Jul-04 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (Minimum [Member], Revenue [Member], Customer Concentration [Member]) | 3 Months Ended |
Mar. 31, 2015 | |
Minimum [Member] | Revenue [Member] | Customer Concentration [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
Concentration risk percentage of revenue represented by major customers | 10.00% |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Schedule of Collaboration Revenue (Detail) (Revenue [Member], Customer Concentration [Member], Collaborative Arrangement [Member]) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | ||
GSK [Member] | |||
Concentration Risk [Line Items] | |||
Collaborative research and development revenue, Percentage | 55.00% | [1] | |
Bayer [Member] | |||
Concentration Risk [Line Items] | |||
Collaborative research and development revenue, Percentage | 11.00% | 41.00% | |
Celgene [Member] | |||
Concentration Risk [Line Items] | |||
Collaborative research and development revenue, Percentage | 34.00% | 54.00% | |
[1] | * less than 10% |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Schedule of Collaboration Revenue (Parenthetical) (Detail) (Minimum [Member], Customer Concentration [Member], Revenue [Member]) | 3 Months Ended |
Mar. 31, 2015 | |
Minimum [Member] | Customer Concentration [Member] | Revenue [Member] | |
Concentration Risk [Line Items] | |
Concentration risk percentage of revenue represented by major customers | 10.00% |
Cash_Equivalents_and_Investmen2
Cash Equivalents and Investments - Schedule of Fair Value of Securities, Not Including Cash (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $192,327 | $212,305 |
Gross Unrealized Gains | 79 | 37 |
Gross Unrealized Losses | -4 | -54 |
Fair Value | 192,402 | 212,288 |
Cash and Cash Equivalents [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 8,469 | 8,460 |
Short-Term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 183,933 | 203,828 |
Money Market Funds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 8,469 | 8,460 |
Fair Value | 8,469 | 8,460 |
U.S. Treasury Bills [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 183,858 | 203,845 |
Gross Unrealized Gains | 79 | 37 |
Gross Unrealized Losses | -4 | -54 |
Fair Value | $183,933 | $203,828 |
Cash_Equivalents_and_Investmen3
Cash Equivalents and Investments - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Total cash, cash equivalents, and short-term investments | $213,000,000 | $232,000,000 |
Cash | 20,600,000 | 19,700,000 |
Cash equivalents and short-term investments | 192,402,000 | 212,288,000 |
Realized gains or losses on available-for-sale securities | $0 | $0 |
Maximum [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, contractual maturity period | 1 year | 1 year |
Fair_Value_Measurements_Summar
Fair Value Measurements - Summary of Company's Financial Assets and Liabilities Subject to Fair Value Measurements on Recurring Basis (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Assets: | ||
Assets fair value disclosure | $192,402 | $212,288 |
Money Market Funds [Member] | ||
Assets: | ||
Assets fair value disclosure | 8,469 | 8,460 |
U.S. Treasury Bills [Member] | ||
Assets: | ||
Assets fair value disclosure | 183,933 | 203,828 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ||
Assets: | ||
Assets fair value disclosure | 8,469 | 8,460 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Money Market Funds [Member] | ||
Assets: | ||
Assets fair value disclosure | 8,469 | 8,460 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||
Assets: | ||
Assets fair value disclosure | 183,933 | 203,828 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | U.S. Treasury Bills [Member] | ||
Assets: | ||
Assets fair value disclosure | $183,933 | $203,828 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | Mar. 31, 2015 |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | $0 |
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount | 0 |
Fair Value, Liabilities, Level 1 to Level 2 Transfers, Amount | 0 |
Fair Value, Liabilities, Level 2 to Level 1 Transfers, Amount | $0 |
Collaborations_Company_Recogni
Collaborations - Company Recognized Revenues from Collaboration Agreements (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Collaboration revenue | $9,687 | $6,015 |
Collaborative Arrangement [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Collaboration revenue | 9,687 | 6,015 |
Collaborative Arrangement [Member] | GSK [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Collaboration revenue | 5,312 | 312 |
Collaborative Arrangement [Member] | GSK [Member] | Recognition of Upfront Payments [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Collaboration revenue | 312 | 312 |
Collaborative Arrangement [Member] | GSK [Member] | Milestone Revenue [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Collaboration revenue | 5,000 | |
Collaborative Arrangement [Member] | Bayer [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Collaboration revenue | 1,111 | 2,439 |
Collaborative Arrangement [Member] | Bayer [Member] | Recognition of Upfront Payments [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Collaboration revenue | 1,111 | 2,439 |
Collaborative Arrangement [Member] | Celgene [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Collaboration revenue | 3,264 | 3,264 |
Collaborative Arrangement [Member] | Celgene [Member] | Recognition of Upfront Payments [Member] | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Collaboration revenue | $3,264 | $3,264 |
Collaborations_GSK_Strategic_A
Collaborations - GSK Strategic Alliance - Additional Information (Detail) (GSK [Member], Collaborative Arrangement [Member], USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Related Party Transaction [Line Items] | |
Milestone recognized | $5 |
Development milestone payments | 76 |
Contingent consideration payments | 309 |
Contingent consideration payments for achievement of worldwide net sales | 280 |
Potential future payments | 665 |
Brontictuzumab Anti-Notch 1, OMP-52M51 [Member] | |
Related Party Transaction [Line Items] | |
Remaining potential development milestone payment | 16 |
Bonus payment | 5 |
Tarextumab Anti-Notch 2/3, OMP-59R5 [Member] | |
Related Party Transaction [Line Items] | |
Bonus payment | 10 |
Milestones on completion of exercise options | $60 |
Collaborations_Bayer_Strategic
Collaborations - Bayer Strategic Alliance - Additional Information (Detail) (Bayer [Member], Collaborative Arrangement [Member], USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Future development milestone payments | $10 |
Contingent consideration payments for regulatory events | 185 |
Achievement of Specified Future Product Sales [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Contingent consideration payments for regulatory events | 1,000 |
Biologic Product [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Future development milestone payments | 55 |
Contingent consideration payments for regulatory events | 135 |
Biologic Product [Member] | Achievement of Specified Future Product Sales [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Contingent consideration payments for regulatory events | 862.5 |
Small Molecules [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Future development milestone payments | 22 |
Contingent consideration payments for regulatory events | 50 |
Small Molecules [Member] | Achievement of Specified Future Product Sales [Member] | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Contingent consideration payments for regulatory events | $140 |
Collaborations_Celgene_Strateg
Collaborations - Celgene Strategic Alliance - Additional Information (Detail) (Celgene [Member], Collaborative Arrangement [Member], USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Related Party Transaction [Line Items] | |
Future development milestone payments | $87.50 |
Additional contingent consideration for regulatory events | 2,800 |
Biologic and Small Molecule Therapeutic Programs [Member] | |
Related Party Transaction [Line Items] | |
Future development milestone payments | 240 |
Biologic Product [Member] | |
Related Party Transaction [Line Items] | |
Additional contingent consideration for regulatory events | 2,700 |
Small Molecules [Member] | |
Related Party Transaction [Line Items] | |
Additional contingent consideration for regulatory events | $95 |
Stock_Incentive_Plans_Addition
Stock Incentive Plans - Additional Information (Detail) (USD $) | 3 Months Ended | 1 Months Ended | 0 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2014 | Jan. 01, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock subject to options outstanding | 3,692,000 | 3,822,000 | |||
Common stock available for future issuance under plan | 1,194,000 | ||||
Weighted-average grant-date fair value, granted | $15.35 | ||||
Estimated fair value expected term | 6 years 2 months 12 days | 6 years 2 months 12 days | |||
Estimated fair value weighted-average volatility rate | 65.20% | 68.50% | |||
Estimated fair value risk-free interest rate | 1.71% | 1.40% | |||
Estimated fair value expected dividend yield | 0.00% | 0.00% | |||
Stock-based compensation expense | $2,387,000 | $690,000 | |||
Unrecognized compensation expense, restricted stock units | 14,300,000 | ||||
Restricted Stock Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted stock units awarded | 0 | 293,980 | |||
Restricted stock units vesting period | 3 years | ||||
Restricted stock units vesting date | 31-Mar-17 | ||||
Restricted stock units vesting, percentage | 25.00% | ||||
Stock-based compensation expense | 703,000 | ||||
Unrecognized compensation expense, restricted stock units | $6,000,000 | ||||
Estimated weighted-average period | 2 years | ||||
Unvested stock options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Estimated weighted-average period | 2 years 11 months 1 day | ||||
Employees Stock Purchase Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock shares authorized | 892,454 | ||||
Common stock purchased at discount through payroll deductions | 15.00% | ||||
Shares purchased lower of the fair market value | 85.00% | ||||
Employee stock purchase plan, offering period | 6 months | ||||
Common stock available for future issuance under plan | 783,121 | 298,475 | |||
Common stock issued to employees under ESPP | 43,424 | ||||
Estimated fair value expected term | 6 months | ||||
Estimated fair value expected dividend yield | 0.00% | ||||
Employees Stock Purchase Plan [Member] | Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Estimated fair value weighted-average volatility rate | 51.10% | ||||
Estimated fair value risk-free interest rate | 0.05% | ||||
Employees Stock Purchase Plan [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Estimated fair value weighted-average volatility rate | 72.50% | ||||
Estimated fair value risk-free interest rate | 0.08% | ||||
2013 Equity Incentive Award Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock shares authorized | 2,981,729 | ||||
Common stock subject to options outstanding | 1,727,608 | ||||
Common stock available for future issuance under plan | 1,193,903 | ||||
2004 Stock Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock subject to options outstanding | 1,964,144 |
Stock_Incentive_Plans_Summary_
Stock Incentive Plans - Summary of Activity under 2004 Plan and 2013 Stock Plan (Detail) | 3 Months Ended |
Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares Available for Grant, Beginning Balance | 19,000 |
Shares Available for Grant of Options and Awards, Additional Options authorized | 1,194,000 |
Shares Available for Grant, Options granted | -16,000 |
Shares Available for Grant, Options exercised | 0 |
Shares Available for Grant, Options forfeited | 45,000 |
Shares Available for Grant, Ending Balance | 1,246,000 |
Options Outstanding, Beginning Balance | 3,822,000 |
Options and Awards Outstanding, Additional Options authorized | 0 |
Options Outstanding, Options granted | 16,000 |
Options Outstanding, Options exercised | -97,000 |
Options Outstanding, Options forfeited | -45,000 |
Options and Awards Outstanding, RSUs forfeited | -4,000 |
Options Outstanding, Ending Balance | 3,692,000 |
Restricted Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares Available for Grant of Options and Awards, RSUs forfeited | 4,000 |
Stock_Incentive_Plans_Schedule
Stock Incentive Plans - Schedule of Stock-Based Compensation Expense (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation | $2,387,000 | $690,000 |
Research and Development [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation | 1,324,000 | 411,000 |
General and Administrative [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation | $1,063,000 | $279,000 |
Stock_Incentive_Plans_Assumpti
Stock Incentive Plans - Assumptions Used for Determining Fair Value of Stock Options Using Black-Scholes Valuation Model (Detail) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Weighted-average volatility | 65.20% | 68.50% |
Weighted-average expected term (years) | 6 years 2 months 12 days | 6 years 2 months 12 days |
Risk-free interest rate | 1.71% | 1.40% |
Expected dividend yield | 0.00% | 0.00% |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Provision for income taxes | $11 | $2 |
Net_Loss_per_Common_Share_Outs
Net Loss per Common Share - Outstanding Common Stock Equivalents Excluded from Computation of Diluted Net Loss per Common Share (Detail) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Outstanding shares of common stock equivalents | 3,691,752 | 3,135,259 |
Options to Purchase Common Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Outstanding shares of common stock equivalents | 3,401,762 | 2,841,279 |
Restricted Stock Units [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Outstanding shares of common stock equivalents | 289,990 | 293,980 |