Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Aug. 04, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | OMED | |
Entity Registrant Name | OncoMed Pharmaceuticals Inc | |
Entity Central Index Key | 1,302,573 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 30,061,941 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 36,255 | $ 28,138 |
Short-term investments | 163,973 | 203,828 |
Receivables-related parties | 9 | 21 |
Tax receivable | 7,102 | |
Prepaid and other current assets | 1,162 | 1,721 |
Total current assets | 201,399 | 240,810 |
Property and equipment, net | 5,349 | 5,104 |
Other assets | 2,333 | 1,928 |
Total assets | 209,081 | 247,842 |
Current liabilities: | ||
Accounts payable | 6,143 | 4,428 |
Accrued liabilities | 13,955 | 14,683 |
Current portion of deferred revenue | 16,525 | 18,747 |
Current portion of deferred rent | 708 | 678 |
Liability for shares issued with repurchase rights | 9 | 10 |
Total current liabilities | 37,340 | 38,546 |
Deferred revenue, less current portion | 122,972 | 130,123 |
Deferred rent, less current portion | 2,101 | 2,468 |
Non-current income tax payable | 357 | 334 |
Liability for shares issued with repurchase rights, less current portion | 4 | |
Total liabilities | $ 162,770 | $ 171,475 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $0.001 par value; 5,000,000 shares authorized at June 30, 2015 and December 31, 2014; no shares issued and outstanding at June 30, 2015 and December 31, 2014 | ||
Common stock, $0.001 par value; 145,000,000 shares authorized at June 30, 2015 and December 31, 2014; 30,054,966 shares and 29,847,577 shares issued and outstanding at June 30, 2015 and December 31, 2014, respectively | $ 30 | $ 30 |
Additional paid-in capital | 306,762 | 300,790 |
Accumulated other comprehensive income (loss) | 104 | (17) |
Accumulated deficit | (260,585) | (224,436) |
Total stockholders' equity | 46,311 | 76,367 |
Total liabilities and stockholders' equity | $ 209,081 | $ 247,842 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
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 | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 145,000,000 | 145,000,000 |
Common stock, shares issued | 30,054,966 | 29,847,577 |
Common stock, shares outstanding | 30,054,966 | 29,847,577 |
Condensed Statements of Operati
Condensed Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Statement [Abstract] | ||||
Collaboration revenue: | $ 4,687 | $ 6,015 | $ 14,374 | $ 12,030 |
Operating expenses: | ||||
Research and development | 22,045 | 18,167 | 41,478 | 34,876 |
General and administrative | 4,277 | 3,440 | 9,071 | 6,653 |
Total operating expenses | 26,322 | 21,607 | 50,549 | 41,529 |
Loss from operations | (21,635) | (15,592) | (36,175) | (29,499) |
Interest and other income, net | 27 | 6 | 49 | 44 |
Loss before provision for income taxes | (21,608) | (15,586) | (36,126) | (29,455) |
Provision for income taxes | 12 | 11 | 23 | 13 |
Net loss | $ (21,620) | $ (15,597) | $ (36,149) | $ (29,468) |
Net loss per common share, basic and diluted | $ (0.72) | $ (0.53) | $ (1.21) | $ (1) |
Shares used to compute net loss per common share, basic and diluted | 30,022,318 | 29,601,010 | 29,965,628 | 29,522,556 |
Condensed Statements of Compreh
Condensed Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (21,620) | $ (15,597) | $ (36,149) | $ (29,468) |
Other comprehensive income: | ||||
Unrealized gain (loss) on available-for-sale securities, net of tax | 29 | 18 | 121 | (25) |
Total comprehensive loss | $ (21,591) | $ (15,579) | $ (36,028) | $ (29,493) |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Operating activities | ||
Net loss | $ (36,149) | $ (29,468) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 790 | 685 |
Gain on disposal of equipment | (63) | |
Stock-based compensation | 4,804 | 2,197 |
Amortization of discount on short-term investments | (44) | (29) |
Changes in operating assets and liabilities: | ||
Receivables-related parties | 12 | |
Tax receivable | 7,102 | |
Prepaid and other current assets | 559 | (305) |
Other assets | (273) | 367 |
Accounts payable | 1,708 | (2,660) |
Accrued liabilities and other | (829) | 2,202 |
Deferred revenue | (9,374) | (12,030) |
Deferred rent | (337) | (310) |
Income tax payable | (10,758) | |
Net cash used in operating activities | (32,031) | (50,172) |
Investing activities | ||
Purchases of property and equipment | (1,035) | (1,147) |
Purchases of short-term investments | (29,979) | (282,975) |
Maturities of short-term investments | 70,000 | 147,271 |
Net cash provided by (used in) investing activities | 38,986 | (136,851) |
Financing activities | ||
Proceeds from issuance of common stock related to the exercise of options and employee stock plan purchases | 1,162 | 1,471 |
Net cash provided by financing activities | 1,162 | 1,471 |
Net increase (decrease) in cash and cash equivalents | 8,117 | (185,552) |
Cash and cash equivalents at beginning of period | 28,138 | 208,931 |
Cash and cash equivalents at end of period | $ 36,255 | $ 23,379 |
Organization
Organization | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [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 anti-cancer stem cell (CSC) and immuno-oncology therapeutics. The Company was originally incorporated in July 2004 in Delaware. The Company’s operations are based in Redwood City, California, and the Company operates in one segment. The Company has seven anti-CSC product candidates in clinical development and several preclinical programs targeting cancer stem cell pathways or novel immuno-oncology targets. The first product candidate currently in clinical development, demcizumab (anti-DLL4, OMP-21M18), is in two Phase II randomized trials in non-small cell lung cancer (with carboplatin and pemetrexed) and pancreatic cancer (with gemcitabine and Abraxane ® ® ® ® |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 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 (e.g. bonus payments) are not accounted for using the milestone method. As all contingent consideration payments are based solely on the performance of the collaborative partner, 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 the partner. 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 Six Months Ended 2015 2014 2015 2014 GlaxoSmithKline LLC (“GSK”) * * 39 % * Bayer Pharma AG (“Bayer”) 24 % 41 % 16 % 41 % Celgene Corporation (“Celgene”) 70 % 54 % 45 % 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. Deferred Offering Costs Deferred offering costs, which primarily consist of direct incremental legal and accounting fees related to the Company’s Registration Statement on Form S-3 filed in June 2015 (the “Shelf Registration Statement”), are capitalized. The deferred offering costs will be offset against the proceeds from any issuances and sales of the Company’s securities pursuant to the Shelf Registration Statement, including the at-the-market program. Under the Company’s at-the-market program pursuant to the Shelf Registration Statement, sales of our common stock, if any, would be made in sales deemed to be “at-the-market” equity offerings as defined in Rule 415 promulgated under the Securities Act of 1933, as amended, in negotiated transactions at prevailing market prices. In the event that the offering is not consummated, deferred offering costs will be expensed. As of June 30, 2015, the Company capitalized $0.3 million of deferred offering costs in other long-term assets on the balance sheet. Newly Adopted and Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“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. 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. In July 2015, the FASB decided to defer by one year the effective date of its new revenue standard for public and nonpublic entities reporting under US GAAP after discussing feedback it received on its exposure draft proposing the deferral. As a result, the standard would be effective for the Company for annual periods beginning after December 15, 2017. Early adoption would be permitted for annual periods beginning after December 15, 2016 and interim periods therein. The Company is currently evaluating the impact of adoption of this accounting standards update on its financial statements. |
Cash Equivalents and Investment
Cash Equivalents and Investments | 6 Months Ended |
Jun. 30, 2015 | |
Cash and Cash Equivalents [Abstract] | |
Cash Equivalents and Investments | 3. Cash Equivalents and Investments The fair value of securities, not including cash at June 30, 2015 and December 31, 2014, were as follows (in thousands): June 30, 2015 Amortized Cost Gross Unrealized Fair Value Gains Losses Money market funds $ 8,482 $ — $ — $ 8,482 U.S. treasury bills 163,869 106 (2 ) 163,973 Total available-for-sale securities $ 172,351 $ 106 $ (2 ) $ 172,455 Classified as: Cash equivalents $ 8,482 Short-term investments 163,973 Total cash equivalents and investments $ 172,455 As of June 30, 2015, the Company had a total of $200.2 million in cash, cash equivalents, and short-term investments, which includes $27.7 million in cash and $172.5 million in cash equivalents and short-term investments. December 31, 2014 Amortized Gross Unrealized Cost Gains Losses Fair Value 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 June 30, 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 | 6 Months Ended |
Jun. 30, 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): June 30, 2015 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 8,482 $ — $ — $ 8,482 U.S. treasury bills — 163,973 — $ 163,973 Total $ 8,482 $ 163,973 $ — $ 172,455 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 | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 2015 and 2014 (in thousands): Three Months Ended Six Months Ended 2015 2014 2015 2014 GSK: Recognition of upfront payments $ 312 $ 312 $ 624 $ 624 Milestone revenue — — 5,000 — GSK total 312 312 5,624 624 Bayer: Recognition of upfront payments 1,111 2,439 2,222 4,878 Bayer total 1,111 2,439 2,222 4,878 Celgene: Recognition of upfront payments 3,264 3,264 6,528 6,528 Celgene total 3,264 3,264 6,528 6,528 Total collaboration related revenue $ 4,687 $ 6,015 $ 14,374 $ 12,030 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 six months ended June 30, 2015. As of June 30, 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 June 30, 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). In addition, the Company can earn royalty payments on all future collaboration product sales, if any. 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 June 30, 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 and sales milestones (up to $2.7 billion for biologics and $95.0 million for small molecules). Following Celgene’s exercise of its option for a biologic therapeutic program, the Company will have co-development and co-commercialization rights for five of the six biologic therapeutic programs in the U.S. and will share 50% of all product profits and losses in the U.S. Outside the U.S., Celgene will have exclusive development and commercialization rights for such programs, with the Company eligible to receive milestones and tiered royalties on product sales. With respect to one of the six biologic therapeutic programs, and any of the other biologic therapeutic programs if the Company elects not to co-develop and co-commercialize products arising from such program, Celgene will have exclusive development and commercialization rights worldwide, with the Company eligible to receive milestones and tiered royalties on worldwide product sales. 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 | 6 Months Ended |
Jun. 30, 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 June 30, 2015, a total of 2,981,839 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 June 30, 2015, a total of 1,590,627 shares are subject to options outstanding under the 2013 Plan. There are 1,899,557 shares subject to options outstanding under the 2004 Stock Incentive Plan (the “2004 Plan”) as of June 30, 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 six months ended June 30, 2015, including grants to nonemployees and restricted stock units (“RSUs”) granted: (In thousands) Shares Available for Grant of Options and Options and Balance at December 31, 2014 19 3,822 Additional shares authorized 1,194 — Options granted (171 ) 171 Options exercised — (163 ) Options forfeited 46 (46 ) RSUs forfeited 5 (5 ) Balance at June 30, 2015 1,093 3,779 The weighted-average grant date estimated fair value of options granted during the six months ended June 30, 2015 was $15.15 per share. Employee Stock Purchase Plan As of June 30, 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 six months ended June 30, 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 six months ended June 30, 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 $0.7 million and $1.4 million related to these RSUs for the three and six months ended June 30, 2015, respectively. There were no RSUs awarded during the six months ended June 30, 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 June 30, Six Months Ended June 30, 2015 2014 2015 2014 Research and development $ 1,326 $ 977 $ 2,650 $ 1,388 General and administrative 1,091 530 2,154 809 Total $ 2,417 $ 1,507 $ 4,804 $ 2,197 As of June 30, 2015, the Company had $15.5 million and $5.2 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 2.78 years and 1.75 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 June 30, Six Months Ended June 30, 2015 2014 2015 2014 Weighted-average volatility 63.75 % 69.45 % 63.88 % 69.65 % Weighted-average expected term (years) 6.20 6.20 6.20 6.20 Risk-free interest rate 2.03 % 2.22 % 2.00 % 2.23 % Expected dividend yield — — — — |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. Income Taxes During the three and six months ended June 30, 2015, the Company recorded an income tax provision of $12,000 and $23,000, respectively, primarily due to discrete items resulting from interest on prior years’ uncertain tax position. 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 | 6 Months Ended |
Jun. 30, 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: As of June 30, 2015 2014 Options to purchase common stock 3,490,184 2,807,869 RSUs 289,197 293,980 3,779,381 3,101,849 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | 9. Subsequent Events [OPEN UNTIL FILING] |
Summary of Significant Accoun16
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 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 (e.g. bonus payments) are not accounted for using the milestone method. As all contingent consideration payments are based solely on the performance of the collaborative partner, 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 the partner. 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 Six Months Ended 2015 2014 2015 2014 GlaxoSmithKline LLC (“GSK”) * * 39 % * Bayer Pharma AG (“Bayer”) 24 % 41 % 16 % 41 % Celgene Corporation (“Celgene”) 70 % 54 % 45 % 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. |
Deferred Offering Costs | Deferred Offering Costs Deferred offering costs, which primarily consist of direct incremental legal and accounting fees related to the Company’s Registration Statement on Form S-3 filed in June 2015 (the “Shelf Registration Statement”), are capitalized. The deferred offering costs will be offset against the proceeds from any issuances and sales of the Company’s securities pursuant to the Shelf Registration Statement, including the at-the-market program. Under the Company’s at-the-market program pursuant to the Shelf Registration Statement, sales of our common stock, if any, would be made in sales deemed to be “at-the-market” equity offerings as defined in Rule 415 promulgated under the Securities Act of 1933, as amended, in negotiated transactions at prevailing market prices. In the event that the offering is not consummated, deferred offering costs will be expensed. As of June 30, 2015, the Company capitalized $0.3 million of deferred offering costs in other long-term assets on the balance sheet. |
Newly Adopted and Recent Accounting Pronouncements | Newly Adopted and Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“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. 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. In July 2015, the FASB decided to defer by one year the effective date of its new revenue standard for public and nonpublic entities reporting under US GAAP after discussing feedback it received on its exposure draft proposing the deferral. As a result, the standard would be effective for the Company for annual periods beginning after December 15, 2017. Early adoption would be permitted for annual periods beginning after December 15, 2016 and interim periods therein. 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 Accoun17
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 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 Six Months Ended 2015 2014 2015 2014 GlaxoSmithKline LLC (“GSK”) * * 39 % * Bayer Pharma AG (“Bayer”) 24 % 41 % 16 % 41 % Celgene Corporation (“Celgene”) 70 % 54 % 45 % 54 % * less than 10% |
Cash Equivalents and Investme18
Cash Equivalents and Investments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Fair Value of Securities, Not Including Cash | The fair value of securities, not including cash at June 30, 2015 and December 31, 2014, were as follows (in thousands): June 30, 2015 Amortized Cost Gross Unrealized Fair Value Gains Losses Money market funds $ 8,482 $ — $ — $ 8,482 U.S. treasury bills 163,869 106 (2 ) 163,973 Total available-for-sale securities $ 172,351 $ 106 $ (2 ) $ 172,455 Classified as: Cash equivalents $ 8,482 Short-term investments 163,973 Total cash equivalents and investments $ 172,455 As of June 30, 2015, the Company had a total of $200.2 million in cash, cash equivalents, and short-term investments, which includes $27.7 million in cash and $172.5 million in cash equivalents and short-term investments. December 31, 2014 Amortized Gross Unrealized Cost Gains Losses Fair Value 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) | 6 Months Ended |
Jun. 30, 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): June 30, 2015 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 8,482 $ — $ — $ 8,482 U.S. treasury bills — 163,973 — $ 163,973 Total $ 8,482 $ 163,973 $ — $ 172,455 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) | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 2015 and 2014 (in thousands): Three Months Ended Six Months Ended 2015 2014 2015 2014 GSK: Recognition of upfront payments $ 312 $ 312 $ 624 $ 624 Milestone revenue — — 5,000 — GSK total 312 312 5,624 624 Bayer: Recognition of upfront payments 1,111 2,439 2,222 4,878 Bayer total 1,111 2,439 2,222 4,878 Celgene: Recognition of upfront payments 3,264 3,264 6,528 6,528 Celgene total 3,264 3,264 6,528 6,528 Total collaboration related revenue $ 4,687 $ 6,015 $ 14,374 $ 12,030 |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 6 Months Ended |
Jun. 30, 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 six months ended June 30, 2015, including grants to nonemployees and restricted stock units (“RSUs”) granted: (In thousands) Shares Available for Grant of Options and Options and Balance at December 31, 2014 19 3,822 Additional shares authorized 1,194 — Options granted (171 ) 171 Options exercised — (163 ) Options forfeited 46 (46 ) RSUs forfeited 5 (5 ) Balance at June 30, 2015 1,093 3,779 |
Schedule of Stock-Based Compensation Expense | Stock-based compensation expense recognized was as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Research and development $ 1,326 $ 977 $ 2,650 $ 1,388 General and administrative 1,091 530 2,154 809 Total $ 2,417 $ 1,507 $ 4,804 $ 2,197 |
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 June 30, Six Months Ended June 30, 2015 2014 2015 2014 Weighted-average volatility 63.75 % 69.45 % 63.88 % 69.65 % Weighted-average expected term (years) 6.20 6.20 6.20 6.20 Risk-free interest rate 2.03 % 2.22 % 2.00 % 2.23 % Expected dividend yield — — — — |
Net Loss per Common Share (Tabl
Net Loss per Common Share (Tables) | 6 Months Ended |
Jun. 30, 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: As of June 30, 2015 2014 Options to purchase common stock 3,490,184 2,807,869 RSUs 289,197 293,980 3,779,381 3,101,849 |
Organization - Additional Infor
Organization - Additional Information (Detail) - 6 months ended Jun. 30, 2015 - Segment | Total |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating segment | 1 |
Incorporation date | Jul. 31, 2004 |
Summary of Significant Accoun24
Summary of Significant Accounting Policies - Additional Information (Detail) - Jun. 30, 2015 - USD ($) $ in Millions | Total |
Summary Of Significant Accounting Policies [Line Items] | |
Deferred offering costs | $ 0.3 |
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 Accoun25
Summary of Significant Accounting Policies - Schedule of Collaboration Revenue (Detail) - Revenue [Member] - Customer Concentration [Member] - Collaborative Arrangement [Member] | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
GSK [Member] | ||||
Concentration Risk [Line Items] | ||||
Collaborative research and development revenue, Percentage | 39.00% | |||
Bayer [Member] | ||||
Concentration Risk [Line Items] | ||||
Collaborative research and development revenue, Percentage | 24.00% | 41.00% | 16.00% | 41.00% |
Celgene [Member] | ||||
Concentration Risk [Line Items] | ||||
Collaborative research and development revenue, Percentage | 70.00% | 54.00% | 45.00% | 54.00% |
Summary of Significant Accoun26
Summary of Significant Accounting Policies - Schedule of Collaboration Revenue (Parenthetical) (Detail) | 6 Months Ended |
Jun. 30, 2015 | |
Minimum [Member] | Revenue [Member] | Customer Concentration [Member] | |
Concentration Risk [Line Items] | |
Concentration risk percentage of revenue represented by major customers | 10.00% |
Cash Equivalents and Investme27
Cash Equivalents and Investments - Schedule of Fair Value of Securities, Not Including Cash (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 172,351 | $ 212,305 |
Gross Unrealized Gains | 106 | 37 |
Gross Unrealized Losses | (2) | (54) |
Fair Value | 172,455 | 212,288 |
Cash and Cash Equivalents [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 8,482 | 8,460 |
Short-Term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 163,973 | 203,828 |
Money Market Funds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 8,482 | 8,460 |
Fair Value | 8,482 | 8,460 |
U.S. Treasury Bills [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 163,869 | 203,845 |
Gross Unrealized Gains | 106 | 37 |
Gross Unrealized Losses | (2) | (54) |
Fair Value | $ 163,973 | $ 203,828 |
Cash Equivalents and Investme28
Cash Equivalents and Investments - Additional Information (Detail) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Total cash, cash equivalents, and short-term investments | $ 200,200,000 | $ 232,000,000 |
Cash | 27,700,000 | 9,700,000 |
Cash equivalents and short-term investments | 172,455,000 | 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 - Summa
Fair Value Measurements - Summary of Company's Financial Assets and Liabilities Subject to Fair Value Measurements on Recurring Basis (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Assets: | ||
Assets fair value disclosure | $ 172,455 | $ 212,288 |
Money Market Funds [Member] | ||
Assets: | ||
Assets fair value disclosure | 8,482 | 8,460 |
U.S. Treasury Bills [Member] | ||
Assets: | ||
Assets fair value disclosure | 163,973 | 203,828 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ||
Assets: | ||
Assets fair value disclosure | 8,482 | 8,460 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Money Market Funds [Member] | ||
Assets: | ||
Assets fair value disclosure | 8,482 | 8,460 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||
Assets: | ||
Assets fair value disclosure | 163,973 | 203,828 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | U.S. Treasury Bills [Member] | ||
Assets: | ||
Assets fair value disclosure | $ 163,973 | $ 203,828 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) | Jun. 30, 2015USD ($) |
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 Recogn
Collaborations - Company Recognized Revenues from Collaboration Agreements (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Collaboration revenue | $ 4,687 | $ 6,015 | $ 14,374 | $ 12,030 |
Collaborative Arrangement [Member] | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Collaboration revenue | 4,687 | 6,015 | 14,374 | 12,030 |
Collaborative Arrangement [Member] | GSK [Member] | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Collaboration revenue | 312 | 312 | 5,624 | 624 |
Collaborative Arrangement [Member] | GSK [Member] | Recognition of Upfront Payments [Member] | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Collaboration revenue | 312 | 312 | 624 | 624 |
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 | 2,222 | 4,878 |
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 | 2,222 | 4,878 |
Collaborative Arrangement [Member] | Celgene [Member] | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Collaboration revenue | 3,264 | 3,264 | 6,528 | 6,528 |
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 | $ 6,528 | $ 6,528 |
Collaborations - GSK Strategic
Collaborations - GSK Strategic Alliance - Additional Information (Detail) - GSK [Member] - Collaborative Arrangement [Member] $ in Millions | 6 Months Ended |
Jun. 30, 2015USD ($) | |
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 Strategi
Collaborations - Bayer Strategic Alliance - Additional Information (Detail) - Jun. 30, 2015 - Bayer [Member] - Collaborative Arrangement [Member] - USD ($) $ in Millions | Total |
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 Strate
Collaborations - Celgene Strategic Alliance - Additional Information (Detail) - Jun. 30, 2015 - Celgene [Member] - Collaborative Arrangement [Member] $ in Millions | USD ($)Program |
Related Party Transaction [Line Items] | |
Future development milestone payments | $ 87.5 |
Additional contingent consideration for regulatory events | $ 2,800 |
Number of biologic programs | Program | 6 |
Number of biological program for which company can enter into co-commercialization and co-development agreements | Program | 5 |
Profits and losses sharing percentage | 50.00% |
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 - Additio
Stock Incentive Plans - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Jan. 01, 2015 | Mar. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock subject to options outstanding | 3,779,000 | 3,779,000 | 3,822,000 | ||||
Common stock available for future issuance under plan | 1,194,000 | ||||||
Weighted-average grant-date fair value, granted | $ 15.15 | ||||||
Estimated fair value expected term | 6 years 2 months 12 days | 6 years 2 months 12 days | 6 years 2 months 12 days | 6 years 2 months 12 days | |||
Estimated fair value weighted-average volatility rate | 63.75% | 69.45% | 63.88% | 69.65% | |||
Estimated fair value risk-free interest rate | 2.03% | 2.22% | 2.00% | 2.23% | |||
Estimated fair value expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% | |||
Stock-based compensation expense | $ 2,417 | $ 1,507 | $ 4,804 | $ 2,197 | |||
Unrecognized compensation expense, restricted stock units | 15,500 | $ 15,500 | |||||
Restricted Stock Units [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock units awarded | 293,980 | 0 | |||||
Restricted stock units vesting period | 3 years | ||||||
Restricted stock units vesting date | Mar. 31, 2017 | ||||||
Stock-based compensation expense | 700 | $ 1,400 | |||||
Unrecognized compensation expense, restricted stock units | $ 5,200 | $ 5,200 | |||||
Estimated weighted-average period | 1 year 9 months | ||||||
Restricted Stock Units [Member] | Celgene [Member] | Milestone Payment Related to Phase II Clinical Trials of Demcizumab [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock units vesting, percentage | 25.00% | ||||||
Unvested Stock Options [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Estimated weighted-average period | 2 years 9 months 11 days | ||||||
Employees Stock Purchase Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock shares authorized | 892,454 | 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 | 298,475 | 783,121 | 783,121 | ||||
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 | 2,981,839 | 2,981,839 | |||||
Common stock subject to options outstanding | 1,590,627 | 1,590,627 | |||||
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 | 1,899,557 | 1,899,557 |
Stock Incentive Plans - Summary
Stock Incentive Plans - Summary of Activity under 2004 Plan and 2013 Stock Plan (Detail) - shares | 6 Months Ended |
Jun. 30, 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 | (171,000) |
Shares Available for Grant, Options exercised | 0 |
Shares Available for Grant, Options forfeited | 46,000 |
Shares Available for Grant, Ending Balance | 1,093,000 |
Options Outstanding, Beginning Balance | 3,822,000 |
Options and Awards Outstanding, Additional Options authorized | 0 |
Options Outstanding, Options granted | 171,000 |
Options Outstanding, Options exercised | (163,000) |
Options Outstanding, Options forfeited | (46,000) |
Options and Awards Outstanding, RSUs forfeited | (5,000) |
Options Outstanding, Ending Balance | 3,779,000 |
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 | 5,000 |
Stock Incentive Plans - Schedul
Stock Incentive Plans - Schedule of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation | $ 2,417 | $ 1,507 | $ 4,804 | $ 2,197 |
Research and Development [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation | 1,326 | 977 | 2,650 | 1,388 |
General and Administrative [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation | $ 1,091 | $ 530 | $ 2,154 | $ 809 |
Stock Incentive Plans - Assumpt
Stock Incentive Plans - Assumptions Used for Determining Fair Value of Stock Options Using Black-Scholes Valuation Model (Detail) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Weighted-average volatility | 63.75% | 69.45% | 63.88% | 69.65% |
Weighted-average expected term (years) | 6 years 2 months 12 days | 6 years 2 months 12 days | 6 years 2 months 12 days | 6 years 2 months 12 days |
Risk-free interest rate | 2.03% | 2.22% | 2.00% | 2.23% |
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes | $ 12 | $ 11 | $ 23 | $ 13 |
Net Loss per Common Share - Out
Net Loss per Common Share - Outstanding Common Stock Equivalents Excluded from Computation of Diluted Net Loss per Common Share (Detail) - shares | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Outstanding shares of common stock equivalents | 3,779,381 | 3,101,849 |
Options to Purchase Common Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Outstanding shares of common stock equivalents | 3,490,184 | 2,807,869 |
Restricted Stock Units [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Outstanding shares of common stock equivalents | 289,197 | 293,980 |