Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 07, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | OMED | ||
Entity Registrant Name | OncoMed Pharmaceuticals Inc | ||
Entity Central Index Key | 1,302,573 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 38,259,662 | ||
Entity Public Float | $ 104,398,387 |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 13,277 | $ 36,953 |
Short-term investments | 89,814 | 147,620 |
Accounts receivable and other receivables | 405 | 2,515 |
Prepaid and other current assets | 1,709 | 2,495 |
Total current assets | 105,205 | 189,583 |
Property and equipment, net | 3,275 | 4,471 |
Other assets | 1,842 | 1,428 |
Total assets | 110,322 | 195,482 |
Current liabilities: | ||
Accounts payable | 2,565 | 4,890 |
Accrued liabilities | 3,940 | 8,599 |
Accrued clinical liabilities | 4,434 | 21,854 |
Current portion of deferred revenue | 82,193 | 20,510 |
Total current liabilities | 93,132 | 55,853 |
Deferred revenue, less current portion | 61,645 | 159,373 |
Deferred rent | 3,765 | 2,917 |
Noncurrent income tax payable | 383 | 367 |
Total liabilities | 158,925 | 218,510 |
Commitments and contingencies (Note 7) | ||
Stockholders’ deficit: | ||
Preferred stock, $0.001 par value; 5,000,000 shares authorized at December 31, 2017 and 2016; no shares issued and outstanding at December 31, 2017 and 2016 | ||
Common stock, $0.001 par value; 145,000,000 shares authorized at December 31, 2017 and 2016; 38,212,505 shares and 37,114,589 shares issued and outstanding at December 31, 2017 and 2016, respectively | 38 | 37 |
Additional paid-in capital | 403,077 | 389,620 |
Accumulated other comprehensive income | 289 | 260 |
Accumulated deficit | (452,007) | (412,945) |
Total stockholders’ deficit | (48,603) | (23,028) |
Total liabilities and stockholders’ deficit | $ 110,322 | $ 195,482 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
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 | 38,212,505 | 37,114,589 |
Common stock, shares outstanding | 38,212,505 | 37,114,589 |
Statements of Operations
Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue: | |||
Collaboration revenue | $ 36,016 | $ 21,277 | $ 25,216 |
Other revenue | 2,138 | 3,876 | 683 |
Total revenue | 38,154 | 25,153 | 25,899 |
Operating expenses: | |||
Research and development | 59,839 | 109,713 | 92,873 |
General and administrative | 16,761 | 18,827 | 18,583 |
Restructuring charges | 2,527 | ||
Total operating expenses | 79,127 | 128,540 | 111,456 |
Loss from operations | (40,973) | (103,387) | (85,557) |
Interest and other income, net | 828 | 299 | 170 |
Loss before income taxes | (40,145) | (103,088) | (85,387) |
Income tax provision (benefit) | (1,083) | 14 | 20 |
Net loss | $ (39,062) | $ (103,102) | $ (85,407) |
Net loss per common share, basic and diluted | $ (1.04) | $ (3.14) | $ (2.84) |
Shares used to compute net loss per common share, basic and diluted | 37,631,348 | 32,859,554 | 30,028,684 |
Statements of Comprehensive Los
Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net loss | $ (39,062) | $ (103,102) | $ (85,407) |
Other comprehensive income: | |||
Unrealized gains on available-for-sale securities, net of tax | 29 | 240 | 37 |
Total comprehensive loss | $ (39,033) | $ (102,862) | $ (85,370) |
Statements of Stockholders' Equ
Statements of Stockholders' Equity (Deficit) - USD ($) $ in Thousands | Total | Public Offering [Member] | At-the-Market Offering [Member] | Common Stock [Member] | Common Stock [Member]Public Offering [Member] | Common Stock [Member]At-the-Market Offering [Member] | Additional Paid-In Capital [Member] | Additional Paid-In Capital [Member]Public Offering [Member] | Additional Paid-In Capital [Member]At-the-Market Offering [Member] | Accumulated Other Comprehensive Income [Member] | Accumulated Deficit [Member] |
Beginning balance at Dec. 31, 2014 | $ 76,367 | $ 30 | $ 300,790 | $ (17) | $ (224,436) | ||||||
Beginning balance, shares at Dec. 31, 2014 | 29,847,577 | ||||||||||
Issuance of common stock related to stock incentive plans | 1,788 | 1,788 | |||||||||
Issuance of common stock related to stock incentive plans, shares | 269,056 | ||||||||||
Stock-based compensation | 10,766 | 10,766 | |||||||||
Net unrealized gain on available-for-sale securities | 37 | 37 | |||||||||
Net loss | (85,407) | (85,407) | |||||||||
Ending balance at Dec. 31, 2015 | 3,551 | $ 30 | 313,344 | 20 | (309,843) | ||||||
Ending balance, shares at Dec. 31, 2015 | 30,116,633 | ||||||||||
Issuance of common stock, net of offering costs | $ 59,170 | $ 4,739 | $ 7 | $ 59,163 | $ 4,739 | ||||||
Issuance of common stock, net of offering costs, shares | 6,325,000 | 388,166 | |||||||||
Issuance of common stock related to stock incentive plans | 1,243 | 1,243 | |||||||||
Issuance of common stock related to stock incentive plans, shares | 284,790 | ||||||||||
Stock-based compensation | 11,131 | 11,131 | |||||||||
Net unrealized gain on available-for-sale securities | 240 | 240 | |||||||||
Net loss | (103,102) | (103,102) | |||||||||
Ending balance at Dec. 31, 2016 | (23,028) | $ 37 | 389,620 | 260 | (412,945) | ||||||
Ending balance, shares at Dec. 31, 2016 | 37,114,589 | ||||||||||
Issuance of common stock, net of offering costs | $ 1,701 | $ 1,701 | |||||||||
Issuance of common stock, net of offering costs, shares | 355,821 | ||||||||||
Issuance of common stock related to stock incentive plans | 2,343 | $ 1 | 2,342 | ||||||||
Issuance of common stock related to stock incentive plans, shares | 742,095 | ||||||||||
Stock-based compensation | 9,414 | 9,414 | |||||||||
Net unrealized gain on available-for-sale securities | 29 | 29 | |||||||||
Net loss | (39,062) | (39,062) | |||||||||
Ending balance at Dec. 31, 2017 | $ (48,603) | $ 38 | $ 403,077 | $ 289 | $ (452,007) | ||||||
Ending balance, shares at Dec. 31, 2017 | 38,212,505 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating activities | |||
Net loss | $ (39,062) | $ (103,102) | $ (85,407) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization | 1,710 | 1,764 | 1,643 |
Stock-based compensation | 9,414 | 11,131 | 10,766 |
Changes in operating assets and liabilities: | |||
Accounts receivable and other receivables | 2,110 | 68,184 | (70,657) |
Income tax refund receivable | (1,098) | 7,102 | |
Prepaid and other current assets | 786 | 782 | (1,577) |
Other assets | 684 | 379 | 121 |
Accounts payable | (2,325) | (1,770) | 2,212 |
Accrued liabilities and income tax payable | (4,572) | (3,115) | 3,662 |
Accrued clinical liabilities | (17,420) | 9,633 | 5,392 |
Deferred revenue | (36,045) | (21,272) | 52,284 |
Deferred rent | 848 | 450 | (679) |
Net cash used in operating activities | (84,970) | (36,936) | (75,138) |
Investing activities | |||
Purchases of property and equipment | (585) | (1,158) | (1,364) |
Purchases of short-term investments | (127,376) | (207,283) | (128,806) |
Maturities of short-term investments | 185,211 | 178,738 | 213,836 |
Net cash provided by (used in) investing activities | 57,250 | (29,703) | 83,666 |
Financing activities | |||
Proceeds from issuance of common stock related to the exercise of options and employee stock plan purchases | 2,343 | 1,239 | 1,778 |
Net cash provided by financing activities | 4,044 | 65,148 | 1,778 |
Net decrease in cash and cash equivalents | (23,676) | (1,491) | 10,306 |
Cash and cash equivalents at beginning of year | 36,953 | 38,444 | 28,138 |
Cash and cash equivalents at end of year | 13,277 | 36,953 | $ 38,444 |
Supplemental cash flow information: | |||
Accrued liabilities for purchase of property and equipment | 173 | 244 | |
At-the-Market Offering [Member] | |||
Financing activities | |||
Net proceeds from issuance of common stock | $ 1,701 | 4,739 | |
Public Offering [Member] | |||
Financing activities | |||
Net proceeds from issuance of common stock | $ 59,170 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization | 1. Organization OncoMed Pharmaceuticals, Inc. (“OncoMed”, the “Company”, “us”, “we”, or “our”) is a clinical-stage biopharmaceutical company focused on discovering and developing novel therapeutics that address the fundamental biology driving cancer’s growth, resistance, recurrence and metastasis. The Company currently has three anti-cancer therapeutic candidates in clinical development. The Company is also pursuing discovery of additional novel approaches to cancer treatment, including new immuno-oncology therapeutic candidates. The Company’s operations are based in Redwood City, California and it operates in one segment. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
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”). 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 were reported as a component of accumulated other comprehensive income. The cost of available-for-sale securities sold is based on the specific-identification method. Other Comprehensive Income Other comprehensive income includes certain changes in equity from non-owner sources that are excluded from net income, specifically, unrealized gains and losses on available-for-sale investments and the related tax impact. Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and short-term investments. Cash and short-term investments are invested through banks and other financial institutions in the United States. Such deposits may be in excess of insured limits. The Company maintains cash and investments with various high credit quality and capitalized financial institutions. Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization is calculated using the straight-line method over the estimated useful lives of the assets, which range from three to five years. Leasehold improvements are amortized over the shorter of their estimated useful lives or the remaining life of the lease at the time the asset is placed into service. Impairment of Long-Lived Assets The carrying value of long-lived assets, including property and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the asset may not be recoverable. An impairment loss is recognized when the total of estimated future undiscounted cash flows, expected to result from the use of the asset and its eventual disposition, are less than its carrying amount. Impairment, if any, would be assessed using discounted cash flows or other appropriate measures of fair value. Through December 31, 2017, there have been no such impairment losses. 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. 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. Amounts received prior to satisfying the revenue recognition criteria are recorded as deferred revenue in the Company’s balance sheets. Amounts expected to be recognized as revenue within the 12 months following the balance sheet date are classified as current liabilities. The Company recognizes revenue for reimbursements of research and development costs under collaboration agreements as the services are performed. The Company records these reimbursements as revenue on a gross basis and not as a reduction of research and development expenses, as the Company has the risks and rewards as the principal in the research and development activities. 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 opt-in payments 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: Year Ended December 31, 2017 2016 2015 GlaxoSmithKline LLC (“GSK”) * * 25% Bayer Pharma AG (“Bayer”) * * 14% Celgene Corporation (“Celgene”) 94% 87% 61% * less than 10% Research and Development Expenses Research and development costs are expensed as incurred. Research and development costs consist of salaries and other personnel-related expenses, including associated stock-based compensation, consulting fees, lab supplies, and facility costs, as well as fees paid to other entities that conduct certain research, development and manufacturing activities on behalf of the Company. Clinical Trial Accruals Clinical trial costs are a component of research and development expenses. The Company accrues and expenses clinical trial activities performed by third parties based upon actual work completed in accordance with agreements established with clinical research organizations and clinical sites. The Company determines the actual costs through discussions with internal personnel and external service providers as to the progress or stage of completion of trials or services and the agreed-upon fee to be paid for such services. Nonrefundable advance payments for goods and services that will be used or rendered in future research and development activities, are deferred and recognized as expense in the period that the related goods are delivered or services are performed. Stock-Based Compensation The Company recognizes compensation expense for all share-based payment awards made to employees and directors based on estimated fair values. For employee stock options, the Company determines the grant date fair value of the awards using the Black-Scholes option-pricing model and generally recognizes the fair value as stock-based compensation expense on a straight-line basis over the vesting period of the respective awards. Stock-based compensation expense is based on the value of the portion of stock-based payment awards that is ultimately expected to vest. As such, the Company’s stock-based compensation is reduced for the estimated forfeitures at the date of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. For restricted stock, the compensation cost for these awards is based on the closing price of the Company’s common stock on the date of grant and recognized as compensation expense on a straight-line basis over the requisite service period. The Company accounts for equity instruments issued to nonemployees based on their fair values on the measurement dates using the Black-Scholes option-pricing model. The estimated fair values of the options granted to nonemployees are remeasured as they vest. As a result, the noncash charge to operations for nonemployee options with vesting conditions is affected each reporting period by changes in the fair value of the Company’s common stock. Leases The Company rents its office space and facilities under cancelable and non-cancelable operating lease agreements and recognizes related rent expense on a straight-line basis over the term of the lease. The Company’s lease agreements contain rent holidays, scheduled rent increases, lease incentives and renewal options. Rent holidays and scheduled rent increases are included in the determination of rent expense to be recorded over the lease term. Lease incentives are recognized as a reduction of rent expense on a straight-line basis over the term of the lease. The Company does not assume renewals in its determination of the lease term unless they are deemed to be reasonably assured at the inception of the lease. The Company begins recognizing rent expense on the date that the Company obtains the legal right to use and control the leased space. Restructuring Charges Restructuring charges consist of severance, other one-time benefits and other employee related charges. Liabilities for costs associated with a restructuring activity are measured at fair value and are recognized when the liability is incurred. One-time termination benefits are expensed at the date the Company notifies the employee, unless the employee will continue to provide future services, in which case the benefits are expensed ratably over the future service period. The Company continually evaluates the adequacy of the remaining liabilities under its restructuring initiatives. Although the Company believes that these estimates accurately reflect the costs of the Company’s restructuring plan, actual results may differ and thereby require the Company to record an additional provision or reverse a portion of such a provision. Income Taxes The Company accounts for income taxes using the liability method under which deferred tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Valuation allowances are established when necessary to reduce deferred tax assets to the amount which is more likely than not to be realizable. The recognition, derecognition and measurement of a tax position is based on management’s best judgment given the facts, circumstances and information available at each reporting date. The Company’s policy is to recognize interest and penalties related to the underpayment of income taxes as a component of income tax expense. To date, there have been no interest or penalties charged in relation to the unrecognized tax benefits. 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 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 Company will adopt ASU 2014-09 as of January 1, 2018, using the modified retrospective transition method. The Company is in the process of finalizing our assessment of the effect that the adoption of ASU 2014-09 will have on the Company’s agreement with Celgene. The Company’s performance obligations with respect to Celgene were not substantially complete at December 31, 2017. The Company has preliminarily concluded that the performance obligations primarily consist of research The Company also performed an assessment of the impact of adopting ASU 2014-09 on its Bayer and GSK collaboration arrangements. As the GSK collaboration was terminated in its entirety on October 29, 2017, this arrangement is not subject to ASU 2014-09. For the Bayer collaboration, the Company has preliminarily concluded that the small molecule therapeutic program remaining as of December 31, 2017 is immaterial in the context of the collaboration agreement relative to the biologics therapeutic programs that terminated during 2017. The Company’s performance obligations under the small molecule therapeutic program with respect to Bayer were substantially complete at December 31, 2017, and any future receipts in the form of milestones or royalties are contingent upon the achievement of specified development, commercial and/or sales targets. The Company preliminarily concluded that these future contingent receipts are constrained at December 31, 2017, because the Company could not conclude that it is probable that a significant reversal of any amount recognized will not occur until the uncertainty associated with these future events are subsequently resolved. The Company has preliminarily concluded that there is no transition adjustment to be recognized on January 1, 2018 for this agreement. The estimates of the expected effects of our adoption of ASU 2014-09 represent management’s best estimates of the effects of adopting ASU 2014-09 at the time of the preparation of this Annual Report on Form 10-K. The actual, final quantitative effects of the adoption of ASU 2014-09 are subject to change from these estimates and such change may be significant, pending the completion of our assessment in the first quarter of 2018. In February 2016, the FASB issued ASU 2016-02 “Leases.” ASU 2016-02 amends a number of aspects of lease accounting In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting |
Cash and Investments
Cash and Investments | 12 Months Ended |
Dec. 31, 2017 | |
Cash And Cash Equivalents [Abstract] | |
Cash and Investments | 3. Cash and Investments The fair value of securities, not including cash at December 31, 2017 and 2016 were as follows (in thousands): December 31, 2017 Amortized Gross Unrealized Fair Cost Gains Losses Value Money market funds $ 99 $ — $ — $ 99 U.S. treasury bills 89,525 289 — 89,814 Total $ 89,624 $ 289 $ — $ 89,913 Classified as: Cash equivalents $ 99 Short-term investments 89,814 Total $ 89,913 As of December 31, 2017, the Company had a total of $103.1 million in cash, cash equivalents and short-term investments, which includes $13.3 million in cash and cash equivalents and $89.8 million in short-term investments. December 31, 2016 Amortized Gross Unrealized Fair Cost Gains Losses Value U.S. treasury bills $ 147,360 $ 260 $ — $ 147,620 Total $ 147,360 $ 260 $ — $ 147,620 Classified as: Short-term investments $ 147,620 As of December 31, 2016, the Company had a total of $184.6 million in cash and short-term investments, which includes $37.0 million in cash and $147.6 million in short-term investments. All available-for-sale securities held as of December 31, 2017 and 2016 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 | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 4. Fair Value Measurements The Company records its financial assets and liabilities at fair value. 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): December 31, 2017 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 99 $ — $ — $ 99 U.S. treasury bills — 89,814 — 89,814 Total $ 99 $ 89,814 $ — $ 89,913 December 31, 2016 Level 1 Level 2 Level 3 Total Assets: U.S. treasury bills $ — $ 147,620 $ — $ 147,620 Total $ — $ 147,620 $ — $ 147,620 Where quoted prices are available in an active market, securities are classified 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. |
Property and Equipment, net
Property and Equipment, net | 12 Months Ended |
Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, net | 5. Property and Equipment, net Property and equipment, net consist of the following (in thousands): December 31, 2017 2016 Computer equipment and software $ 1,935 $ 1,897 Furniture and fixtures 547 527 Laboratory equipment 11,720 11,452 Leasehold improvements 9,250 9,095 23,452 22,971 Less accumulated depreciation and amortization (20,177 ) (18,500 ) Property and equipment, net $ 3,275 $ 4,471 Depreciation expense for the years ended December 31, 2017, 2016 and 2015 was $1.7 million, $1.8 million and $1.6 million, respectively. |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Payables And Accruals [Abstract] | |
Accrued Liabilities | 6. Accrued Liabilities Accrued liabilities consist of the following (in thousands): December 31, 2017 2016 Research and development related $ 670 $ 3,143 Compensation related 2,733 4,922 Other 537 534 Total accrued liabilities $ 3,940 $ 8,599 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 7. Commitments and Contingencies Operating Leases The Company leases office and laboratory facilities in Redwood City, California under a lease agreement that was originally set to expire in January 2019 and included a lease extension option for two additional three-year terms. During the fourth quarter of 2016, the Company signed an amendment to the lease agreement to extend the lease term through May 2028 with an option to extend the lease for an additional three-year term. The amendment to the lease agreement includes a 10-year cancelable lease agreement for additional office and laboratory space that expires in May 2028, subject to the Company’s three-year lease extension option described above. The Company exercised its right to terminate the lease agreement for this additional space prior to September 2017. The exercise of such cancelation did not result in an economic penalty to the Company. As of December 31, 2017, minimum annual rental payments under the Company’s non-cancelable operating lease agreement are as follows (in thousands): Year ending December 31, 2018 $ 2,323 2019 2,406 2020 2,490 2021 2,577 2022 2,667 2023 and thereafter 16,143 Total minimum payments $ 28,606 In prior years, the landlord provided the Company a tenant improvement allowance for a total of $7.3 million to complete the office and laboratory expansion. The Company recorded the tenant improvement allowance received as leasehold improvements under the property and equipment account and deferred rent liability on the accompanying balance sheets. The operating lease agreement contains rent escalation provisions and tenant improvement allowances. The total rent obligation is being expensed ratably over the term of the agreement. Rent expense for years ended December 31, 2017, 2016 and 2015, was $2.4 million, $1.6 million and $1.3 million, respectively. Guarantees and Indemnifications The Company, as permitted under Delaware law and in accordance with its certificate of incorporation and bylaws, and pursuant to indemnification agreements with certain of its officers and directors, indemnifies its officers and directors for certain events or occurrences, subject to certain limits, while the officer or director is or was serving at the Company’s request in such capacity. The term of the indemnification period lasts as long as an officer or director may be subject to any proceeding arising out of acts or omissions of such officer or director in such capacity. The maximum amount of potential future indemnification is unlimited; however, the Company currently holds director and officer liability insurance. This insurance limits the Company’s exposure and may enable it to recover a portion of any future amounts paid. The Company believes that the fair value of these indemnification obligations is minimal. Accordingly, the Company has not recognized any liabilities relating to these obligations for any period presented. |
License Agreement
License Agreement | 12 Months Ended |
Dec. 31, 2017 | |
Research And Development [Abstract] | |
License Agreement | 8. License Agreement In 2004, the Company assumed an exclusive, worldwide license agreement with the University of Michigan relating to the use of certain patents and technology relating to its cancer stem cell (“CSC”) technology for which an up-front fee of $10,000 had been paid and the Company issued 7,796 shares of its common stock. Pursuant to the agreement, the Company is obligated to make low single-digit royalty payments to the University of Michigan on net sales of its or its licensees’ products and processes covered under the agreement, pay an annual license maintenance fee, and reimburse the University of Michigan for costs of prosecution and maintenance of the licensed patents which reduces future royalty obligations. With respect to one family of licensed patent applications that does not relate to any of the Company’s lead therapeutic programs, the Company is also required to pay a tiered, single-digit percentage of any sublicense revenues, including any upfront or milestone payments, received from any sublicensees under such family of patents. Once the University of Michigan has received $10.0 million in royalties, the Company may at its option convert the license to a fully paid-up license provided the Company transfers additional shares of nonvoting common stock equal to 0.25% of the fully diluted shares then outstanding to the University of Michigan. The amounts incurred for patent legal costs amounted to $32,000, $69,000 and $65,000 for the years ended December 31, 2017, 2016 and 2015, respectively, all of which has been recorded as general and administrative expense in the statements of operations. |
Collaborations
Collaborations | 12 Months Ended |
Dec. 31, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Collaborations | 9. Collaborations The Company has entered into three collaboration arrangements, each having multiple deliverables under which the Company received non-refundable upfront payments. For collaborations where the Company has determined that there is a single unit of accounting the Company recognizes revenue related to the upfront payments ratably over its estimated period of performance for each collaboration. Two of these collaboration agreements have since been entirely or substantially terminated. The Company’s prior and current collaboration arrangements include contractual milestones, which relate to the achievement of pre-specified research, development, regulatory and commercialization events. The milestone events contained in the Company’s alliances coincide with the progression of the Company’s product candidates from research and development, to regulatory approval and through to commercialization. The process of successfully discovering a new product candidate, having it selected by the alliance partner for development, having it approved and ultimately sold for a profit is highly uncertain. As such, the milestone payments that the Company may earn from its collaborators involve a significant degree of risk to achieve. Research and development milestones in the Company’s strategic alliances may include the following types of events: • Completion of pre-clinical research and development work leading to selection of product clinical candidates. • Advancement of candidates into clinical development, which may include filing of investigational new drug (“IND”) applications. • Initiation of Phase I, Phase II or Phase III clinical trials. • Achievement of certain scientific or development events. Regulatory milestones may include the following types of events: • Filing of regulatory applications for marketing approval such as a New Drug Application in the United States, or a Marketing Authorization Application in Europe. • Marketing approval in a major market, such as the United States, Europe or Japan. Commercialization milestones may include the following types of events: • Product sales in excess of pre-specified thresholds. Summary of Collaboration Related Revenue The Company has recognized the following revenues from its prior and current collaboration agreements during the years ended December 31, 2017, 2016 and 2015 (in thousands): Year Ended December 31, 2017 2016 2015 Celgene: Recognition of upfront payment $ 35,588 $ 20,053 $ 13,055 Milestone revenue — — 2,520 Other revenue 409 1,780 320 Celgene total 35,997 21,833 15,895 Bayer: Recognition of upfront payments 278 648 3,518 Other revenue 1,726 1,457 — Bayer total 2,004 2,105 3,518 GSK: Recognition of upfront payment 150 576 1,123 Milestone revenue — — 5,000 Other revenue 3 639 363 GSK total 153 1,215 6,486 Total collaboration related revenue $ 38,154 $ 25,153 $ 25,899 Celgene Strategic Alliance In December 2013, the Company entered into a Master Research and Collaboration Agreement (the “Agreement”) with Celgene pursuant to which the Company and Celgene will collaborate on research and development programs directed to the discovery and development of novel biologic therapeutic programs, and, if Celgene exercises an option to do so, the discovery, development and commercialization of certain novel small molecule therapeutic programs. This option for small molecule therapeutic programs expired unexercised on December 2, 2017. The biologic therapeutic programs under the agreement include the demcizumab program, the navicixizumab program, the rosmantuzumab program, and the anti-TIGIT program. Celgene has options to obtain exclusive licenses to develop further and commercialize biologic therapeutics in these programs, which may be exercised during time periods specified in the agreement through the earlier of completion of certain clinical trials or the twelfth anniversary of the date of the agreement. Celgene also had the right to designate up to two additional biologic therapeutic programs targeting the RSPO-LGR signaling pathway or an undisclosed pathway for inclusion in the collaboration, but this right expired on December 2, 2017. Prior to the expiration of Celgene’s options under the Agreement, the Company will provide research and development services and the resultant data to Celgene for analysis in order for Celgene to determine whether or not to exercise its options. Pursuant to the Agreement, the Company leads the discovery and development of each biologic therapeutic product prior to Celgene’s exercise of its option for the applicable program. With respect to the demcizumab program, the navicixizumab program, and the rosmantuzumab program, unless the Company elects not to exercise its co-development and co-commercialization right for a given program, following Celgene’s exercise of its option, the Company and Celgene will enter into an agreed form of co-development and co-commercialization agreement for such program. The Company will have the right to co-develop and to co-commercialize products arising out of such program in the United States, and Celgene will have the exclusive right to develop and commercialize products arising out of such program outside of the United States. The Company’s involvement in co-commercialization will include participation in specified promotion activities by means of a dedicated sales force of up to half of the overall sales force for the applicable program products, as well as marketing and other commercial activities, with Celgene recording all product sales. The Company will also bear a one-third share of all development costs, with Celgene bearing the remaining two-thirds. However, for the anti-TIGIT program, and any program for which the Company elects not to co-develop and co-commercialize products arising from such program, the Company and Celgene will instead enter into an agreed form of a license agreement, pursuant to which Celgene retains all rights to develop further and commercialize biologic therapeutic products arising from such program on a worldwide basis, with certain support for development from the Company. The Company may elect not to co-develop and co-commercialize any products arising under the demcizumab program, the navicixizumab program, or the rosmantuzumab program at any time, either prior to or following Celgene’s option exercise, with the exception of a defined period of time near commercial launch of a product under a program. If the Company opts out of its co-development and co-commercialization rights with respect to a program, Celgene will have the exclusive right to develop and commercialize products arising out of such program, at Celgene’s expense. On June 29, 2017, Celgene informed the Company that Celgene does not intend to exercise its option for the demcizumab program. On January 4, 2018, the Company reported that its clinical experience to date in treating patients in its Phase Ia/b clinical trial of rosmantuzumab failed to provide compelling evidence of clinical benefit. The Company is currently discussing next steps for the program with Celgene. Under the terms of the Agreement, the Company received an upfront cash payment of $155.0 million. In addition, Celgene purchased 1,470,588 shares of the Company’s common stock at a price of $15.13 per share, resulting in gross proceeds of $22.2 million. The price paid by Celgene for the common stock represented a premium over the closing price of the Company’s common stock on the date of the Agreement. The Company accounted for the $1.7 million premium as additional consideration under the Agreement and the common stock was recorded at its fair market value of $20.5 million. The Company is also eligible to receive opt-in payments upon Celgene’s exercise of the option for each biologic therapeutic program. The collaboration also includes milestone payments for achievement of specified development, regulatory and commercial milestones, paid on a per-product and per-program basis. The payments for option exercise, program designation and achievement of development, regulatory and commercial milestones may total up to (1) $505.0 million for products in the navicixizumab program, including a $25.0 million opt-in payment, (2) approximately $442.8 million for products in the rosmantuzumab program, including an approximately $37.8 million opt-in payment, and (3) $440.0 million for products in the anti-TIGIT program, including a $35.0 million opt-in payment. For the navicixizumab program and the rosmantuzumab program, if the Company chooses to co-develop and co-commercialize biologic therapeutic products in the United States, the Company is also entitled to share 50% of all product profits and losses in the United States. For such programs outside the United States, the Company is eligible to receive tiered royalties equal to a percentage of net product sales outside of the United States. For the anti-TIGIT program, and for the navicixizumab program and/or the rosmantuzumab program if the Company elects not to co-develop or co-commercialize biologic therapeutic products under such program, Celgene is required to pay the Company tiered royalties equal to a percentage of net product sales worldwide, with such royalties being increased where the Company had the right to co-develop and co-commercialize such biologic therapeutic products under such program but elected not to do so. The Company is responsible for funding all research and development activities for biologic therapeutics under the collaboration prior to Celgene’s exercise of the option for such program. The Agreement will terminate upon the expiration of all of Celgene’s payment obligations under all license or co-development and co-commercialization agreements entered into with respect to programs following Celgene’s exercise of an option for a given program, or if all of Celgene’s options under the Agreement expire without Celgene exercising any of its options. The Agreement will also terminate, on a program-by-program basis, on the expiration of the option term, if Celgene fails to exercise its option for such program. The Company may also terminate the Agreement with respect to one or more programs in the event that Celgene challenges the licensed patents with respect to such program. If Celgene does not exercise its option with respect to a biologic therapeutic program before such option expires, the Company retains worldwide rights to such program, except that if Celgene exercises its option to obtain a license for either the demcizumab or the navicixizumab program, then for so long as such license is in effect, the Company cannot develop or commercialize products under the other of such two programs. In addition, under certain termination circumstances, the Company would also have worldwide rights to the terminated biologic therapeutic programs. The Company’s deliverables under the arrangement with Celgene are research and development services, including the obligation that the Company provides the resultant data to Celgene, which are accounted for as a single unit of accounting. The Company has determined that the options to license programs are substantive options. Additionally, as a result of the uncertain outcome of the discovery, research and development activities, the Company is at risk with regard to whether Celgene will exercise the options. Accordingly, the options are not considered deliverables at the inception of the arrangement and the associated opt-in payments are not included in allocable arrangement consideration. The Company identified the initial arrangement consideration to be approximately $156.7 million, comprised of the $155.0 million upfront cash payment and $1.7 million stock premium, and was recognized as deferred revenue and amortized to collaboration revenue on a straight-line basis over the estimated period of performance of 12 years. Due to the uncertain timeline associated with the deliverables at the outset of the Agreement, the Company initially determined it will use 12 years as the estimated period of performance, which is the maximum period under the Agreement for Celgene to exercise its options. In November 2014 and December 2015, the Company received designation notices from Celgene relating to the rosmantuzumab program and the anti-TIGIT program, respectively. Each designation triggered a $2.5 million payment due to the Company from Celgene under the collaboration agreement, and these payments were recognized as collaboration revenue in the period the Company received the designation notice from Celgene. In December 2015, the Company achieved a safety milestone related to the demcizumab program. The milestone achievement was based on analysis of then-available data from the Company’s Phase Ib clinical trial of demcizumab and blinded interim safety data from the Phase II clinical trials of demcizumab. This milestone achievement triggered a $70.0 million payment which was considered a non-substantive milestone and, as such, was recorded as deferred revenue and amortized to collaboration revenue ratably over the Company’s estimated period of performance. During the fourth quarter of 2017, following the discontinuation of further development of the demcizumab program in April 2017, the notification from Celgene on June 29, 2017 that it does not intend to exercise its option for demcizumab, and the expiration of Celgene’s right to designate up to two additional biological therapeutic programs targeting the RSPO-LGR signaling pathway or an undisclosed pathway for inclusion in the collaboration on December 2, 2017, the Company evaluated the development program status of the product candidates under the collaboration agreement with Celgene and determined that the clinical data it has obtained to date support a change in the estimated period of performance. As a result, the Company revised its estimate of the remaining period of performance to 2 years. The change in the estimated period of performance resulted in an increase in revenue of $15.5 million in 2017, an increase in short-term deferred revenue with a corresponding decrease in long-term deferred revenue of $62.2 million as of December 31, 2017 and decrease in net loss per common share, basic and diluted, of $0.41 per share for the year ended December 31, 2017. The Company will reevaluate the estimated performance period at each reporting period. As of December 31, 2017, the Company was eligible to receive in its collaboration with Celgene up to approximately $97.8 million of contingent consideration if Celgene exercises its options for all of the navicixizumab program, the rosmantuzumab program, and the anti-TIGIT program. If Celgene successfully develops and commercializes all of navicixizumab, rosmantuzumab, and anti-TIGIT, the Company could receive additional contingent consideration of up to approximately $1.3 billion for the achievement of specified development, regulatory, and commercial milestones. 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. Bayer Strategic Alliance On June 15, 2010, the Company entered into a Collaboration and Option Agreement with Bayer. The agreement sets forth an alliance to discover, develop and market novel biologic and small molecule therapeutics affecting targets within the Wnt signaling pathway. Effective June 16, 2017, Bayer terminated all biologic therapeutic programs under the collaboration. The Company received an upfront payment of $40.0 million upon execution of the collaboration agreement in 2010 and a $5.0 million milestone payment in 2012 that was not considered substantive. The Company recognized the payments as deferred revenue, which was amortized to revenue on a ratable basis over the estimated period of performance through the second quarter of 2017. Under the collaboration, the Company and Bayer agreed to jointly conduct research to discover potential new small molecule therapeutics targeting the Wnt pathway. Bayer may, within a specified time period, elect to advance such small molecule therapeutics into further development, and obtain an exclusive license to commercialize such therapeutics. Bayer leads discovery, development, and commercialization of such small molecule therapeutics. The Company is eligible to receive up to $17.0 million in development milestone payments for each small molecule candidates. If Bayer successfully develops and commercializes small molecule candidates for more than one indication, the Company could receive contingent consideration payments for each small molecule candidate of up to $15.0 million for the achievement of regulatory events and up to $70.0 million upon the achievement of specified future product sales. 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. GSK Strategic Alliance On December 7, 2007, the Company entered into a Collaboration and Option Agreement with GSK. The agreement was formed to discover, develop and market novel antibody therapeutics to target CSCs. The agreement gave GSK the option to obtain an exclusive license for certain product candidates targeting the Notch signaling pathway. Effective October 28, 2017, GSK terminated the agreement in its entirety. In 2007, the Company received an initial payment of $35.0 million, with half in the form of an equity investment by GSK in the Company’s Series B-2 convertible preferred stock and the other half as an up-front cash payment which was initially recorded as deferred revenue. The 1,441,396 shares of Series B-2 convertible preferred stock sold by the Company to GSK were issued at a premium of $4.3 million above the estimated fair value of convertible preferred stock at the time of issuance. This premium was considered an additional up-front payment and was added to the $17.5 million deferred revenue and was amortized to revenue on a ratable basis over the estimated period of performance up to the first quarter of 2017. The Company was eligible to earn milestone payments in connection with research and development activities, and contingent consideration in connection with further development, regulatory approval and commercialization activities. In addition, the Company was eligible to earn royalty payments on all future collaboration product sales, if any. As a result of GSK’s termination of the collaboration agreement, the Company is no longer eligible to receive any payments under the terminated agreement. |
Lonza Sales AG Agreement
Lonza Sales AG Agreement | 12 Months Ended |
Dec. 31, 2017 | |
Research And Development [Abstract] | |
Lonza Sales AG Agreement | 10. Lonza Sales AG Agreement In August 2012, the Company entered into a multi-product license agreement with Lonza Sales AG (“Lonza”). This agreement relates to the process development and manufacturing of the Company’s biologics portfolio with Lonza. Under the multi-product license agreement, the Company receives licenses to utilize Lonza’s glutamine synthetase gene expression system and related technologies for commercial production of the Company’s product candidates. Under this license agreement, the Company paid an upfront payment of $488,000 which was recorded to research and development expense during 2012 and is obligated to pay Lonza certain payments up to £200,000 (approximately $270,000) per licensed product on achievement of specified milestones, and royalties up to the very low single digits on sales of its licensed products. There has been no further payment made by the Company to Lonza pursuant to the license agreement for the years ended December 31, 2017, 2016 and 2015. The multi-product license agreement shall remain in force on a product by product and country by country basis until expiration of the Company’s obligation to make payments to Lonza with respect to such product in such country. The agreement can otherwise be terminated by the Company for any reason or no reason upon advance written notice to Lonza, or by either the Company or Lonza upon the other party’s material breach of the agreement, or if the other party ceases to carry on business. Lonza may also terminate the licenses granted under the agreement if the Company challenges any of the Lonza patent rights. |
Stockholder_s Equity
Stockholder’s Equity | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Stockholder’s Equity | 11. Stockholder’s Equity Stock Incentive Plans 2004 Plan The Company granted options under its 2004 Stock Incentive Plan (the “2004 Plan”) until July 2013 when it was terminated as to future awards, although it continues to govern the terms of options that remain outstanding under the 2004 Plan. The 2004 Plan provided for the award of restricted shares, grants of incentive and nonstatutory stock options, and sales of shares of the Company’s common stock. Awards can be made to employees, outside directors, and consultants of the Company. Stock options granted generally vest over a period of five years from the date of grant, with 20% of the total grant vesting on the first anniversary of the option vesting commencement date and 1/48 of the remaining grant vesting each month thereafter. Restricted stock issuances and early exercise of stock options were subject to the Company’s right of repurchase at the original issuance price, which right lapses over the vesting period of the stock. In connection with the Board of Directors’ and stockholders’ approval of the 2013 Plan, all remaining shares available for future award under the 2004 Plan were transferred to 2013 Plan, and the 2004 Plan was terminated as to future awards. 2013 Plan In July 2013, the Company’s Board of Directors and stockholders approved the 2013 Equity Incentive Award Plan (the “2013 Plan”). Under the 2013 Plan, the Company initially reserved 500,000 shares of common stock for issuance as of its effective date of July 17, 2013, plus 90,125 shares which were then available for issuance under the Company’s 2004 Plan. The number of shares reserved for issuance under the 2013 Plan will increase by the number of shares represented by awards outstanding under the 2004 Plan that are forfeited or lapse unexercised and which following July 17, 2013 are not issued under the 2004 Plan. Additionally, on the first day of each calendar year, beginning in 2014 and ending in 2023, the number of shares in the reserve will increase by the least of 1,500,000 shares, 4% of the shares of the Company’s common stock outstanding (on an as-converted basis) on the last day of the immediately preceding fiscal year or such smaller number of shares of stock as determined by the Company’s Board of Directors. The 2013 Plan authorizes discretionary grants of incentive stock options, nonqualified stock options, restricted stock, restricted stock units, performance awards, dividend equivalents, stock payments, deferred stock, deferred stock units, and stock appreciation rights to employees and consultants of the Company, or any of its qualifying affiliates, and to members of the Board of Directors. The exercise price per share subject to each option shall not be less than 100% of the fair value of the common stock on the date of grant. In addition, in the case of incentive stock options granted to a greater than 10% stockholder, such price shall not be less than 110% of the fair value on the date the option is granted. The term of the options shall not be more than 10 years from the grant date, or 5 years from the date an incentive stock option is granted to a greater than 10% stockholder. Stock options granted generally vest over a period of four years from the date of grant, with 25% of the total grant vesting on the first anniversary of the option vesting commencement date and 1/48th of the original grant vesting each month thereafter for stock options granted upon hiring, and with 1/48th of the total grant vesting each month after the option vesting commencement date for any stock options granted after the hiring date. As of December 31, 2017, a total of 5,823,879 shares of common stock have been authorized under the 2013 Plan. As of December 31, 2017, a total of 4,892,862 shares are subject to options and restricted stock units (“RSUs”) outstanding under the 2013 Plan. There are 1,203,813 shares subject to options outstanding under the 2004 Plan as of December 31, 2017, 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. On January 1, 2018, an additional 1,500,000 shares of the Company’s common stock became available for future issuance as a result of the annual increase provision in the 2013 Plan. Shares Reserved for Future Issuances The following table summarizes the Company’s common stock reserved for future issuance (in thousands): December 31, 2017 Outstanding stock options and RSUs 6,097 Reserved for future equity award grants 606 Reserved for future ESPP issuances 1,206 Total common stock reserved for future issuances 7,909 Stock Options The following table summarizes the stock option activity for the year ended December 31, 2017 (in thousands, except exercise prices and contractual life): Stock Option Outstanding Number of shares Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Balances at December 31, 2016 4,324 $ 13.95 5.6 $ 6,302 Granted 2,376 5.44 Exercised (411 ) 4.15 Forfeited (1,072 ) 14.70 Balances at December 31, 2017 5,217 $ 10.70 5.6 $ 913 Options vested and expected to vest— December 31, 2017 5,217 $ 10.70 5.6 $ 913 Options exercisable— December 31, 2017 2,943 $ 12.25 4.1 $ 603 The total fair value of options vested were $7.1 million, $9.2 million and $6.6 million for the years ended December 31, 2017, 2016 and 2015, respectively. The aggregate intrinsic value of options exercised were $1.4 million, $0.8 million and $4.2 million for the years ended December 31, 2017, 2016, and 2015, respectively. The aggregate intrinsic value of stock options outstanding was $0.9 million as of December 31, 2017, which represents the value of the Company’s closing stock price as of December 31, 2017 in excess of the weighted-average exercise price multiplied by the number of options outstanding. The weighted-average grant date estimated fair value of all options granted were $3.66, $8.23 and $12.99 per share during the years ended December 31, 2017, 2016 and 2015, respectively. Restricted Stock Units The following table summarizes the RSU activity for the year ended December 31, 2017 (in thousands, except grant date fair value and contractual life): Restricted Stock Units Outstanding Number of shares Weighted Average Grant Date Fair Value per Share Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Balances at December 31, 2016 576 $ 17.66 1.5 $ 4,439 Awarded 831 3.96 Released (242 ) 26.30 Forfeited (285 ) 8.45 Balances at December 31, 2017 880 $ 5.33 1.3 $ 3,606 The total fair value of RSUs vested was $6.4 million and $2.2 million for the years ended December 31, 2017 and 2016, respectively. There were no RSUs vested in 2015. The aggregate intrinsic value of the non-vested RSUs was $3.6 million as of December 31, 2017. Employee Stock Purchase Plan The Company’s Employee Stock Purchase Plan (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. As of December 31, 2017, a total of 1,543,620 shares of common stock have been authorized and 1,205,870 shares of common stock are available for future issuance under the Company’s ESPP. On January 1, 2018, an additional 350,000 shares of the Company’s common stock became available for future issuance as a result of the annual increase provision in the ESPP plan. During the years ended December 31, 2017, 2016 and 2015, employees purchased an aggregate of 88,982 shares, 111,633 shares and 71,226 shares under the Company’s ESPP, respectively, at a weighted-average price per share of $7.16, $8.21 and $16.58, respectively. During the years ended December 31, 2017, 2016 and 2015, the weighted-average fair value per share granted under the Company’s ESPP were $3.39, $5.06 and $7.00, respectively. 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): Year Ended December 31, 2017 2016 2015 Research and development $ 4,886 $ 5,892 $ 6,113 General and administrative 4,522 5,239 4,653 Restructuring charges 6 — — Total $ 9,414 $ 11,131 $ 10,766 As of December 31, 2017, the Company had $11.2 million, $3.5 million and $21,000 of unrecognized compensation expense related to unvested stock options, RSUs and ESPP, respectively, which are expected to be recognized over an estimated weighted-average period of 2.8 years, 1.9 years and 0.2 years, respectively. Fair Value Disclosures The fair value of stock options granted and purchases under the Company’s ESPP is estimated using the Black-Scholes option pricing model. The fair value of stock options granted was estimated as of the grant date using the following assumptions: Year Ended December 31, 2017 2016 2015 Weighted-average volatility 75.8% 71.9% 62.6% Weighted-average expected term (years) 6.2 5.8 6.2 Risk-free interest rate 2.2% 1.5% 2.1% Expected dividend yield — — — The fair value of stock purchase rights granted under the Company’s ESPP was estimated using the following assumptions: Year Ended December 31, 2017 2016 2015 Weighted-average volatility 54.0%–93.7% 45.4%–104.5% 51.1%–72.5% Weighted-average expected term (years) 0.5 0.5 0.5 Risk-free interest rate 0.47%–1.10% 0.26%–0.50% 0.05%–0.08% Expected dividend yield — — — Volatility Since the Company has limited information on the volatility of its common stock due to no significant trading history, the expected stock price volatility was calculated based on a blend of the historical volatilities of the Company’s own stock and of the common stock of comparable publicly traded biopharmaceutical companies over a period equal to the expected term of the stock option grants. The comparable companies were chosen based on their similar size, stage in the life cycle, and financial leverage to the Company. Expected Term The Company has very limited historical information to develop reasonable expectations about future exercise patterns and post-vesting employment termination behavior for its stock-option grants. As such, the expected term was estimated using the simplified method. Risk-Free Rate The risk-free interest rate assumption is based on the zero-coupon U.S. Treasury instruments on the date of grant with a maturity date consistent with the expected term of the Company’s stock option grants. Expected Dividend Yield To date, the Company has not declared or paid any cash dividends and does not have any plans to do so in the future. Therefore, the Company used an expected dividend yield of zero. Common Stock Issuance under At-the-Market Agreement Pursuant to a sales agreement (the “ATM Agreement”) with Cantor Fitzgerald & Co. (“Cantor Fitzgerald”), the Company may issue and sell up to $50.0 million of its common stock in one or more at-the-market offerings, under its shelf registration statement on Form S-3 filed on June 12, 2015. Under the ATM Agreement, the Company agreed to pay Cantor Fitzgerald a commission of 3.0% of the aggregate gross proceeds from each sale of its shares thereunder. For the years ended December 31, 2017 and 2016, the Company sold 355,821 and 388,166 shares, respectively, under the ATM Agreement at a weighted average price per share of $4.93 and $12.59, respectively. For the years ended December 31, 2017 and 2016, the Company received net proceeds of $1.7 million and $4.7 million, net of offering costs, respectively. Public Offering of Common Stock On August 23, 2016, the Company closed the sale of an aggregate of 6,325,000 shares of its common stock, at a public offering price of $10.00 per share. The shares were issued pursuant to a prospectus supplement filed with the SEC on August 17, 2016, and related prospectus, pursuant to the Company’s shelf registration statement on Form S-3 filed on June 12, 2015. The Company received net offering proceeds of approximately $59.2 million, net of underwriting discounts and commissions and offering costs. |
Restructuring Charges
Restructuring Charges | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Charges | 12. Restructuring Charges On April 24, 2017, the Company’s Board of Directors approved a restructuring plan to reduce operating costs and better align its workforce with the needs of its business following the Company’s announcements that its Phase II “YOSEMITE” clinical trial of demcizumab did not meet its primary endpoint and would be discontinued, its Phase II “PINNACLE” clinical trial of tarextumab did not meet its endpoints, its partner Bayer had decided not to exercise its option to license vantictumab and ipafricept, and enrollment would be discontinued in the Phase Ib clinical trial of brontictuzumab. Under |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 13. Income Taxes For the year ended December 31, 2017, the Company recorded an income tax benefit of $1.1 million due to an Alternative Minimum Tax (“AMT”) refundable credit as a result of the Tax Cuts and Jobs Act (“Tax Act”), enacted on December 22, 2017. For the years ended December 31, 2016 and 2015, the Company recorded an income tax provision of $14,000 and $20,000, respectively, due to interest on uncertain tax positions. Loss before income taxes for the years ended December 31, 2017, 2016 and 2015 was from the United States. The components of the income tax provision (benefit) are as follows (in thousands): Year Ended December 31, 2017 2016 2015 Current: Federal $ (1,084 ) $ 13 $ 19 State 1 1 1 Total (1,083 ) 14 20 Deferred: Federal — — — State — — — Total — — — Income tax provision (benefit) $ (1,083 ) $ 14 $ 20 The reconciliation of the statutory federal income tax rate to the Company’s effective tax rate is as follows: Year Ended December 31, 2017 2016 2015 Tax at statutory federal rate 35 % 35 % 35 % State tax—net of federal benefit 1 % 1 % 3 % Tax credits 12 % 8 % 9 % Stock compensation (7 )% (2 )% (1 )% Change in valuation allowance 90 % (42 %) (46 %) Impact of corporate rate change on deferred taxes (129 )% — — Other 1 % — — Income tax (provision) benefit 3 % — % — % Net deferred tax assets as of December 31, 2017 and 2016 consist of the following (in thousands): Year Ended December 31, 2017 2016 Deferred tax assets: Net operating loss carryforwards $ 54,931 $ 58,760 Accruals 643 3,520 Tax credit carryovers 63,406 53,047 Deferred revenue 30,259 63,006 Other 3,643 6,668 Gross deferred tax assets 152,882 185,001 Deferred tax liability — — Valuation allowance (152,882 ) (185,001 ) Net deferred tax assets $ — $ — The valuation allowance decreased by $32.1 million and increased by $42.9 million for the year ended December 31, 2017 and 2016, respectively. The tax benefit of deductible temporary differences or carryforwards is recorded as a deferred tax asset to the extent that management assesses the realization is “more likely than not.” Future realization of the tax benefit ultimately depends on the existence of sufficient taxable income within the period available under the tax law. At December 31, 2017 and 2016, the Company has set up valuation allowances against all federal and state deferred tax assets because based on all available evidence, these deferred tax assets are not more likely than not to be realizable. On December 22, 2017, the Tax Act was signed into law making significant changes to the Internal Revenue Code. Changes include, but are not limited to, a corporate tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017, the transition of U.S. international taxation from a worldwide tax system to a partially territorial system, and the repeal of corporate AMT. The Company has calculated its best estimate of the impact of the Tax Act in accordance with its understanding of the Tax Act and guidance available as of the date of this filing. As a result, the Company recorded $1.1 million as income tax benefit in the fourth quarter of 2017, the period in which the legislation was enacted. The tax rate decrease resulted in a reduction of $51.7 million in our deferred tax assets, and a corresponding decrease of the same amount in the valuation allowance against these deferred tax assets, as substantially all of the Company’s deferred tax assets, net of deferred tax liabilities, are subject to a full valuation allowance. On December 22, 2017, Staff Accounting Bulletin No. 118 (“SAB 118”) was issued to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Act. In accordance with SAB 118, the Company has determined that the adjustment to deferred taxes was a provisional amount and a reasonable estimate at December 31, 2017. The Company does not expect any impact on recorded deferred tax balances as the remeasurement of net deferred tax assets will be offset by a change in valuation allowance. The Company is analyzing certain aspects of the Tax Act which could potentially affect the remeasurement of the net deferred tax assets. At December 31, 2017, the Company had federal and state net operating loss carryforwards aggregating approximately $229.3 million and $97.0 million, respectively. These federal and California net operating loss carryforwards will begin to expire in 2023 and 2018, respectively, if not utilized. At December 31, 2017, the Company also had federal and California research and development credit carryforwards aggregating approximately $23.3 million and $18.8 million, respectively. The federal credits will expire in 2025, if not utilized. California research and development credits have no expiration dat e. At December 31, 2017, the Company also had federal orphan drug credit and AMT carryforwards of approximately $39.3 million and $1.5 million, respectively. The federal orphan drug credits will begin to expire in 2034, if not utilized. As part of the Tax Act, the corporate AMT was repealed. AMT credit is fully refundable by 2022. The company has a receivable of approximately $1.1 million for the expected refund. Utilization of the net operating loss and tax credits carryforwards may be limited by “ownership change” rules, as defined in Section 382 of the Internal Revenue Code of 1986, as amended, and similar state provisions. This annual limitation may result in the expiration of the net operating losses and credits before utilization. The Company has performed an analysis to determine whether an “ownership change” has occurred from inception to December 31, 2017. Based on this analysis, management has determined that $0.7 million in federal and $0.7 million in California net operating losses generated during that period will expire without being used. The Company recognizes the financial statements effects of a tax position when it is more likely than not, based on technical merits, that the position will be sustained upon examination. A reconciliation of the Company’s unrecognized tax benefits is as follows (in thousands): December 31, 2017 2016 2015 Balance at beginning of year $ 14,260 $ 10,022 $ 5,434 Increase related to current year tax provision 2,398 4,238 4,668 Increase related to prior year tax provision — — 10 Decrease related to prior year tax provision — — (90 ) Balance at end of year $ 16,658 $ 14,260 $ 10,022 The unrecognized tax benefits, if recognized and in absence of full valuation allowance, would impact the income tax provision by $15.9 million and $13.1 million as of December 31, 2017 and 2016, respectively. As of December 31, 2017, the Company does not believe that it is reasonably possible that its unrecognized tax benefits would significantly change in the following 12 months. The Company has elected to include interest and penalties as a component of tax expense. The Company accrued approximately $15,000 and $14,000 of interest and penalties during 2017 and 2016, respectively. As of December 31, 2017 and 2016, the Company had recognized a liability for interest and penalties of approximately $86,000 and $71,000, respectively. The Company files federal and state income tax returns in the U.S. and California. Tax years from 2004 forward remain open to examination due to the carryover of net operating losses and other tax attributes. |
Net Loss per Common Share
Net Loss per Common Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Net Loss per Common Share | 14. 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 (in thousands): Year Ended December 31, 2017 2016 2015 Options to purchase common stock 5,217 4,325 4,408 RSUs 880 576 286 6,097 4,901 4,694 |
Selected Quarterly Financial Da
Selected Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data | 15. Selected Quarterly Financial Data (Unaudited) Selected quarterly results from operations for the years ended December 31, 2017 and 2016 are as follows (in thousands, except per share amounts): 2017 Quarter Ended March 31 June 30 September 30 December 31 Total revenue $ 6,213 $ 6,195 $ 5,106 $ 20,640 Operating expenses 28,971 21,630 16,131 12,395 Net income (loss) (22,608 ) (15,225 ) (10,692 ) 9,463 Basic and diluted net income (loss) per common share (0.61 ) (0.40 ) (0.28 ) 0.25 2016 Quarter Ended March 31 June 30 September 30 December 31 Total revenue $ 6,350 $ 6,665 $ 5,919 $ 6,219 Operating expenses 33,597 34,481 31,854 28,608 Net loss (27,213 ) (27,691 ) (25,864 ) (22,334 ) Basic and diluted net loss per common share (0.90 ) (0.91 ) (0.77 ) (0.60 ) |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
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”). |
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 were reported as a component of accumulated other comprehensive income. The cost of available-for-sale securities sold is based on the specific-identification method. |
Other Comprehensive Income | Other Comprehensive Income Other comprehensive income includes certain changes in equity from non-owner sources that are excluded from net income, specifically, unrealized gains and losses on available-for-sale investments and the related tax impact. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and short-term investments. Cash and short-term investments are invested through banks and other financial institutions in the United States. Such deposits may be in excess of insured limits. The Company maintains cash and investments with various high credit quality and capitalized financial institutions. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization is calculated using the straight-line method over the estimated useful lives of the assets, which range from three to five years. Leasehold improvements are amortized over the shorter of their estimated useful lives or the remaining life of the lease at the time the asset is placed into service. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The carrying value of long-lived assets, including property and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the asset may not be recoverable. An impairment loss is recognized when the total of estimated future undiscounted cash flows, expected to result from the use of the asset and its eventual disposition, are less than its carrying amount. Impairment, if any, would be assessed using discounted cash flows or other appropriate measures of fair value. Through December 31, 2017, there have been no such impairment losses. |
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. 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. Amounts received prior to satisfying the revenue recognition criteria are recorded as deferred revenue in the Company’s balance sheets. Amounts expected to be recognized as revenue within the 12 months following the balance sheet date are classified as current liabilities. The Company recognizes revenue for reimbursements of research and development costs under collaboration agreements as the services are performed. The Company records these reimbursements as revenue on a gross basis and not as a reduction of research and development expenses, as the Company has the risks and rewards as the principal in the research and development activities. 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 opt-in payments 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: Year Ended December 31, 2017 2016 2015 GlaxoSmithKline LLC (“GSK”) * * 25% Bayer Pharma AG (“Bayer”) * * 14% Celgene Corporation (“Celgene”) 94% 87% 61% * less than 10% |
Research and Development Expenses | Research and Development Expenses Research and development costs are expensed as incurred. Research and development costs consist of salaries and other personnel-related expenses, including associated stock-based compensation, consulting fees, lab supplies, and facility costs, as well as fees paid to other entities that conduct certain research, development and manufacturing activities on behalf of the Company. |
Clinical Trial Accruals | Clinical Trial Accruals Clinical trial costs are a component of research and development expenses. The Company accrues and expenses clinical trial activities performed by third parties based upon actual work completed in accordance with agreements established with clinical research organizations and clinical sites. The Company determines the actual costs through discussions with internal personnel and external service providers as to the progress or stage of completion of trials or services and the agreed-upon fee to be paid for such services. Nonrefundable advance payments for goods and services that will be used or rendered in future research and development activities, are deferred and recognized as expense in the period that the related goods are delivered or services are performed. |
Stock-Based Compensation | Stock-Based Compensation The Company recognizes compensation expense for all share-based payment awards made to employees and directors based on estimated fair values. For employee stock options, the Company determines the grant date fair value of the awards using the Black-Scholes option-pricing model and generally recognizes the fair value as stock-based compensation expense on a straight-line basis over the vesting period of the respective awards. Stock-based compensation expense is based on the value of the portion of stock-based payment awards that is ultimately expected to vest. As such, the Company’s stock-based compensation is reduced for the estimated forfeitures at the date of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. For restricted stock, the compensation cost for these awards is based on the closing price of the Company’s common stock on the date of grant and recognized as compensation expense on a straight-line basis over the requisite service period. The Company accounts for equity instruments issued to nonemployees based on their fair values on the measurement dates using the Black-Scholes option-pricing model. The estimated fair values of the options granted to nonemployees are remeasured as they vest. As a result, the noncash charge to operations for nonemployee options with vesting conditions is affected each reporting period by changes in the fair value of the Company’s common stock. |
Leases | Leases The Company rents its office space and facilities under cancelable and non-cancelable operating lease agreements and recognizes related rent expense on a straight-line basis over the term of the lease. The Company’s lease agreements contain rent holidays, scheduled rent increases, lease incentives and renewal options. Rent holidays and scheduled rent increases are included in the determination of rent expense to be recorded over the lease term. Lease incentives are recognized as a reduction of rent expense on a straight-line basis over the term of the lease. The Company does not assume renewals in its determination of the lease term unless they are deemed to be reasonably assured at the inception of the lease. The Company begins recognizing rent expense on the date that the Company obtains the legal right to use and control the leased space. |
Restructuring Charges | Restructuring Charges Restructuring charges consist of severance, other one-time benefits and other employee related charges. Liabilities for costs associated with a restructuring activity are measured at fair value and are recognized when the liability is incurred. One-time termination benefits are expensed at the date the Company notifies the employee, unless the employee will continue to provide future services, in which case the benefits are expensed ratably over the future service period. The Company continually evaluates the adequacy of the remaining liabilities under its restructuring initiatives. Although the Company believes that these estimates accurately reflect the costs of the Company’s restructuring plan, actual results may differ and thereby require the Company to record an additional provision or reverse a portion of such a provision. |
Income Taxes | Income Taxes The Company accounts for income taxes using the liability method under which deferred tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Valuation allowances are established when necessary to reduce deferred tax assets to the amount which is more likely than not to be realizable. The recognition, derecognition and measurement of a tax position is based on management’s best judgment given the facts, circumstances and information available at each reporting date. The Company’s policy is to recognize interest and penalties related to the underpayment of income taxes as a component of income tax expense. To date, there have been no interest or penalties charged in relation to the unrecognized tax benefits. |
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 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 Company will adopt ASU 2014-09 as of January 1, 2018, using the modified retrospective transition method. The Company is in the process of finalizing our assessment of the effect that the adoption of ASU 2014-09 will have on the Company’s agreement with Celgene. The Company’s performance obligations with respect to Celgene were not substantially complete at December 31, 2017. The Company has preliminarily concluded that the performance obligations primarily consist of research The Company also performed an assessment of the impact of adopting ASU 2014-09 on its Bayer and GSK collaboration arrangements. As the GSK collaboration was terminated in its entirety on October 29, 2017, this arrangement is not subject to ASU 2014-09. For the Bayer collaboration, the Company has preliminarily concluded that the small molecule therapeutic program remaining as of December 31, 2017 is immaterial in the context of the collaboration agreement relative to the biologics therapeutic programs that terminated during 2017. The Company’s performance obligations under the small molecule therapeutic program with respect to Bayer were substantially complete at December 31, 2017, and any future receipts in the form of milestones or royalties are contingent upon the achievement of specified development, commercial and/or sales targets. The Company preliminarily concluded that these future contingent receipts are constrained at December 31, 2017, because the Company could not conclude that it is probable that a significant reversal of any amount recognized will not occur until the uncertainty associated with these future events are subsequently resolved. The Company has preliminarily concluded that there is no transition adjustment to be recognized on January 1, 2018 for this agreement. The estimates of the expected effects of our adoption of ASU 2014-09 represent management’s best estimates of the effects of adopting ASU 2014-09 at the time of the preparation of this Annual Report on Form 10-K. The actual, final quantitative effects of the adoption of ASU 2014-09 are subject to change from these estimates and such change may be significant, pending the completion of our assessment in the first quarter of 2018. In February 2016, the FASB issued ASU 2016-02 “Leases.” ASU 2016-02 amends a number of aspects of lease accounting In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Customer Concentration of Collaboration Revenue | Customers whose collaboration revenue accounted for 10% or more of total revenues were as follows: Year Ended December 31, 2017 2016 2015 GlaxoSmithKline LLC (“GSK”) * * 25% Bayer Pharma AG (“Bayer”) * * 14% Celgene Corporation (“Celgene”) 94% 87% 61% * less than 10% |
Cash and Investments (Tables)
Cash and Investments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Cash And Cash Equivalents [Abstract] | |
Schedule of Fair Value of Securities, Not Including Cash | The fair value of securities, not including cash at December 31, 2017 and 2016 were as follows (in thousands): December 31, 2017 Amortized Gross Unrealized Fair Cost Gains Losses Value Money market funds $ 99 $ — $ — $ 99 U.S. treasury bills 89,525 289 — 89,814 Total $ 89,624 $ 289 $ — $ 89,913 Classified as: Cash equivalents $ 99 Short-term investments 89,814 Total $ 89,913 As of December 31, 2017, the Company had a total of $103.1 million in cash, cash equivalents and short-term investments, which includes $13.3 million in cash and cash equivalents and $89.8 million in short-term investments. December 31, 2016 Amortized Gross Unrealized Fair Cost Gains Losses Value U.S. treasury bills $ 147,360 $ 260 $ — $ 147,620 Total $ 147,360 $ 260 $ — $ 147,620 Classified as: Short-term investments $ 147,620 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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): December 31, 2017 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 99 $ — $ — $ 99 U.S. treasury bills — 89,814 — 89,814 Total $ 99 $ 89,814 $ — $ 89,913 December 31, 2016 Level 1 Level 2 Level 3 Total Assets: U.S. treasury bills $ — $ 147,620 $ — $ 147,620 Total $ — $ 147,620 $ — $ 147,620 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment, net | Property and equipment, net consist of the following (in thousands): December 31, 2017 2016 Computer equipment and software $ 1,935 $ 1,897 Furniture and fixtures 547 527 Laboratory equipment 11,720 11,452 Leasehold improvements 9,250 9,095 23,452 22,971 Less accumulated depreciation and amortization (20,177 ) (18,500 ) Property and equipment, net $ 3,275 $ 4,471 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consist of the following (in thousands): December 31, 2017 2016 Research and development related $ 670 $ 3,143 Compensation related 2,733 4,922 Other 537 534 Total accrued liabilities $ 3,940 $ 8,599 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Minimum Annual Rental Payments under the Company's Non-cancelable Operating Lease Agreement | As of December 31, 2017, minimum annual rental payments under the Company’s non-cancelable operating lease agreement are as follows (in thousands): Year ending December 31, 2018 $ 2,323 2019 2,406 2020 2,490 2021 2,577 2022 2,667 2023 and thereafter 16,143 Total minimum payments $ 28,606 |
Collaborations (Tables)
Collaborations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Company Recognized Revenues from Collaboration Agreements | The Company has recognized the following revenues from its prior and current collaboration agreements during the years ended December 31, 2017, 2016 and 2015 (in thousands): Year Ended December 31, 2017 2016 2015 Celgene: Recognition of upfront payment $ 35,588 $ 20,053 $ 13,055 Milestone revenue — — 2,520 Other revenue 409 1,780 320 Celgene total 35,997 21,833 15,895 Bayer: Recognition of upfront payments 278 648 3,518 Other revenue 1,726 1,457 — Bayer total 2,004 2,105 3,518 GSK: Recognition of upfront payment 150 576 1,123 Milestone revenue — — 5,000 Other revenue 3 639 363 GSK total 153 1,215 6,486 Total collaboration related revenue $ 38,154 $ 25,153 $ 25,899 |
Stockholder_s Equity (Tables)
Stockholder’s Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Summary of Common Stock Reserved for Future Issuance | The following table summarizes the Company’s common stock reserved for future issuance (in thousands): December 31, 2017 Outstanding stock options and RSUs 6,097 Reserved for future equity award grants 606 Reserved for future ESPP issuances 1,206 Total common stock reserved for future issuances 7,909 |
Summary of Stock Option Activity | The following table summarizes the stock option activity for the year ended December 31, 2017 (in thousands, except exercise prices and contractual life): Stock Option Outstanding Number of shares Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Balances at December 31, 2016 4,324 $ 13.95 5.6 $ 6,302 Granted 2,376 5.44 Exercised (411 ) 4.15 Forfeited (1,072 ) 14.70 Balances at December 31, 2017 5,217 $ 10.70 5.6 $ 913 Options vested and expected to vest— December 31, 2017 5,217 $ 10.70 5.6 $ 913 Options exercisable— December 31, 2017 2,943 $ 12.25 4.1 $ 603 |
Summary of RSU Activity | The following table summarizes the RSU activity for the year ended December 31, 2017 (in thousands, except grant date fair value and contractual life): Restricted Stock Units Outstanding Number of shares Weighted Average Grant Date Fair Value per Share Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Balances at December 31, 2016 576 $ 17.66 1.5 $ 4,439 Awarded 831 3.96 Released (242 ) 26.30 Forfeited (285 ) 8.45 Balances at December 31, 2017 880 $ 5.33 1.3 $ 3,606 |
Schedule of Stock-Based Compensation Expense | Stock-based compensation expense recognized was as follows (in thousands): Year Ended December 31, 2017 2016 2015 Research and development $ 4,886 $ 5,892 $ 6,113 General and administrative 4,522 5,239 4,653 Restructuring charges 6 — — Total $ 9,414 $ 11,131 $ 10,766 |
Assumptions Used for Determining Fair Value of Stock Options Using Black-Scholes Valuation Model | The fair value of stock options granted was estimated as of the grant date using the following assumptions: Year Ended December 31, 2017 2016 2015 Weighted-average volatility 75.8% 71.9% 62.6% Weighted-average expected term (years) 6.2 5.8 6.2 Risk-free interest rate 2.2% 1.5% 2.1% Expected dividend yield — — — |
Assumptions Used for Determining Fair Value of Stock Purchase Rights Granted Under Company's ESPP Using Black-Scholes Valuation Model | The fair value of stock purchase rights granted under the Company’s ESPP was estimated using the following assumptions: Year Ended December 31, 2017 2016 2015 Weighted-average volatility 54.0%–93.7% 45.4%–104.5% 51.1%–72.5% Weighted-average expected term (years) 0.5 0.5 0.5 Risk-free interest rate 0.47%–1.10% 0.26%–0.50% 0.05%–0.08% Expected dividend yield — — — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Provision (Benefit) | The components of the income tax provision (benefit) are as follows (in thousands): Year Ended December 31, 2017 2016 2015 Current: Federal $ (1,084 ) $ 13 $ 19 State 1 1 1 Total (1,083 ) 14 20 Deferred: Federal — — — State — — — Total — — — Income tax provision (benefit) $ (1,083 ) $ 14 $ 20 |
Schedule of Reconciliation of Statutory Federal Income Tax Rate to Company's Effective Tax Rate | The reconciliation of the statutory federal income tax rate to the Company’s effective tax rate is as follows: Year Ended December 31, 2017 2016 2015 Tax at statutory federal rate 35 % 35 % 35 % State tax—net of federal benefit 1 % 1 % 3 % Tax credits 12 % 8 % 9 % Stock compensation (7 )% (2 )% (1 )% Change in valuation allowance 90 % (42 %) (46 %) Impact of corporate rate change on deferred taxes (129 )% — — Other 1 % — — Income tax (provision) benefit 3 % — % — % |
Schedule of Net Deferred Tax Assets | Net deferred tax assets as of December 31, 2017 and 2016 consist of the following (in thousands): Year Ended December 31, 2017 2016 Deferred tax assets: Net operating loss carryforwards $ 54,931 $ 58,760 Accruals 643 3,520 Tax credit carryovers 63,406 53,047 Deferred revenue 30,259 63,006 Other 3,643 6,668 Gross deferred tax assets 152,882 185,001 Deferred tax liability — — Valuation allowance (152,882 ) (185,001 ) Net deferred tax assets $ — $ — |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the Company’s unrecognized tax benefits is as follows (in thousands): December 31, 2017 2016 2015 Balance at beginning of year $ 14,260 $ 10,022 $ 5,434 Increase related to current year tax provision 2,398 4,238 4,668 Increase related to prior year tax provision — — 10 Decrease related to prior year tax provision — — (90 ) Balance at end of year $ 16,658 $ 14,260 $ 10,022 |
Net Loss per Common Share (Tabl
Net Loss per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 (in thousands): Year Ended December 31, 2017 2016 2015 Options to purchase common stock 5,217 4,325 4,408 RSUs 880 576 286 6,097 4,901 4,694 |
Selected Quarterly Financial 34
Selected Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Selected Quarterly Results from Operations | Selected quarterly results from operations for the years ended December 31, 2017 and 2016 are as follows (in thousands, except per share amounts): 2017 Quarter Ended March 31 June 30 September 30 December 31 Total revenue $ 6,213 $ 6,195 $ 5,106 $ 20,640 Operating expenses 28,971 21,630 16,131 12,395 Net income (loss) (22,608 ) (15,225 ) (10,692 ) 9,463 Basic and diluted net income (loss) per common share (0.61 ) (0.40 ) (0.28 ) 0.25 2016 Quarter Ended March 31 June 30 September 30 December 31 Total revenue $ 6,350 $ 6,665 $ 5,919 $ 6,219 Operating expenses 33,597 34,481 31,854 28,608 Net loss (27,213 ) (27,691 ) (25,864 ) (22,334 ) Basic and diluted net loss per common share (0.90 ) (0.91 ) (0.77 ) (0.60 ) |
Organization - Additional Infor
Organization - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017Segment | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Number of operating segment | 1 |
Summary of Significant Accoun36
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Summary Of Significant Accounting Policies [Line Items] | |||
Impairment of long-lived assets | $ 0 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 0 | ||
Celgene [Member] | Collaborative Arrangement [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Deferred revenue | $ 70,000,000 | ||
ASU 2014-09 [Member] | Celgene [Member] | Collaborative Arrangement [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Deferred revenue | 143,800,000 | ||
ASU 2016-09 [Member] | Increase in Deferred Tax Asset [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Effect of change in deferred tax asset | $ 3,900,000 | ||
Revenue [Member] | Customer Concentration [Member] | Celgene [Member] | Collaborative Arrangement [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration risk percentage of revenue represented by major customers | 94.00% | 87.00% | 61.00% |
Leasehold Improvements [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Description of property and equipment over estimated useful lives | shorter of their estimated useful lives or the remaining life of the lease at the time the asset is placed into service | ||
Maximum [Member] | Property and Equipment [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property and equipment, Estimated useful life | 5 years | ||
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% | ||
Minimum [Member] | Property and Equipment [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property and equipment, Estimated useful life | 3 years |
Summary of Significant Accoun37
Summary of Significant Accounting Policies - Schedule of Customer Concentration of Collaboration Revenue (Detail) - Revenue [Member] - Customer Concentration [Member] - Collaborative Arrangement [Member] | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
GSK [Member] | |||
Concentration Risk [Line Items] | |||
Collaborative research and development revenue, Percentage | 25.00% | ||
Bayer [Member] | |||
Concentration Risk [Line Items] | |||
Collaborative research and development revenue, Percentage | 14.00% | ||
Celgene [Member] | |||
Concentration Risk [Line Items] | |||
Collaborative research and development revenue, Percentage | 94.00% | 87.00% | 61.00% |
Summary of Significant Accoun38
Summary of Significant Accounting Policies - Schedule of Customer Concentration of Collaboration Revenue (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Minimum [Member] | Revenue [Member] | Customer Concentration [Member] | |
Concentration Risk [Line Items] | |
Concentration risk percentage of revenue represented by major customers | 10.00% |
Cash and Investments - Schedule
Cash and Investments - Schedule of Fair Value of Securities, Not Including Cash (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 89,624 | $ 147,360 |
Gross Unrealized Gains | 289 | 260 |
Fair Value | 89,913 | 147,620 |
Money Market Funds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 99 | |
Fair Value | 99 | |
U.S. Treasury Bills [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 89,525 | 147,360 |
Gross Unrealized Gains | 289 | 260 |
Fair Value | 89,814 | 147,620 |
Cash and Cash Equivalents [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 99 | |
Short-Term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | $ 89,814 | $ 147,620 |
Cash and Investments - Addition
Cash and Investments - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Available-for-sale Securities [Line Items] | ||||
Total cash, cash equivalents and short-term investments | $ 103,100,000 | $ 184,600,000 | ||
Cash and cash equivalents | 13,277,000 | 36,953,000 | $ 38,444,000 | $ 28,138,000 |
Short-term investments | 89,814,000 | 147,620,000 | ||
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) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets: | ||
Assets fair value disclosure | $ 89,913 | $ 147,620 |
Level 1 [Member] | ||
Assets: | ||
Assets fair value disclosure | 99 | |
Level 2 [Member] | ||
Assets: | ||
Assets fair value disclosure | 89,814 | 147,620 |
Money Market Funds [Member] | ||
Assets: | ||
Assets fair value disclosure | 99 | |
Money Market Funds [Member] | Level 1 [Member] | ||
Assets: | ||
Assets fair value disclosure | 99 | |
U.S. Treasury Bills [Member] | ||
Assets: | ||
Assets fair value disclosure | 89,814 | 147,620 |
U.S. Treasury Bills [Member] | Level 2 [Member] | ||
Assets: | ||
Assets fair value disclosure | $ 89,814 | $ 147,620 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) | Dec. 31, 2017USD ($) |
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 |
Property and Equipment, net - S
Property and Equipment, net - Schedule of Property and Equipment, net (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 23,452 | $ 22,971 |
Less accumulated depreciation and amortization | (20,177) | (18,500) |
Property and equipment, net | 3,275 | 4,471 |
Computer Equipment and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,935 | 1,897 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 547 | 527 |
Laboratory Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 11,720 | 11,452 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 9,250 | $ 9,095 |
Property and Equipment, net - A
Property and Equipment, net - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expense | $ 1,710 | $ 1,764 | $ 1,643 |
Accrued Liabilities - Schedule
Accrued Liabilities - Schedule of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Payables And Accruals [Abstract] | ||
Research and development related | $ 670 | $ 3,143 |
Compensation related | 2,733 | 4,922 |
Other | 537 | 534 |
Total accrued liabilities | $ 3,940 | $ 8,599 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Leased Assets [Line Items] | ||||
Operating lease, expiration date | 2028-05 | 2019-01 | ||
Operating lease, additional period | 3 years | 3 years | ||
Lease agreement for additional space termination date | Sep. 30, 2017 | |||
Tenant improvement allowance, total | $ 7.3 | |||
Rental expense | $ 2.4 | $ 1.6 | $ 1.3 | |
Additional Office and Laboratory Space | ||||
Operating Leased Assets [Line Items] | ||||
Operating lease, additional period | 10 years |
Commitments and Contingencies47
Commitments and Contingencies - Summary of Minimum Annual Rental Payments under the Company's Non-cancelable Operating Lease Agreement (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2,018 | $ 2,323 |
2,019 | 2,406 |
2,020 | 2,490 |
2,021 | 2,577 |
2,022 | 2,667 |
2023 and thereafter | 16,143 |
Total minimum payments | $ 28,606 |
License Agreement - Additional
License Agreement - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2004 | |
License Agreements [Line Items] | ||||
Up-front fee | $ 10,000 | |||
Common shares | 38,212,505 | 37,114,589 | ||
Royalties payments to licensor | $ 10,000,000 | |||
Legal costs | $ 32,000 | $ 69,000 | $ 65,000 | |
Common Stock [Member] | ||||
License Agreements [Line Items] | ||||
Common shares | 7,796 | |||
Nonvoting Common Stock [Member] | ||||
License Agreements [Line Items] | ||||
Additional common stock | 0.25% |
Collaborations - GSK Strategic
Collaborations - GSK Strategic Alliance - Additional Information (Detail) $ in Millions | Dec. 07, 2007USD ($)shares | Dec. 31, 2017Agreement |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||
Number Of Collaboration Agreements | Agreement | 3 | |
Number of collaboration agreements terminated | Agreement | 2 | |
GlaxoSmithKline [Member] | Series B-2 Convertible Preferred Stock [Member] | ||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||
Initial payment received from collaboration arrangement | $ 35 | |
Number of shares issued | shares | 1,441,396 | |
Premium received on number of shares issued | $ 4.3 | |
Deferred revenue | $ 17.5 | |
Collaborative Arrangement [Member] | GlaxoSmithKline [Member] | ||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||
Effective date of termination | Oct. 28, 2017 |
Collaborations - Company Recogn
Collaborations - Company Recognized Revenues from Collaboration Agreements (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||
Collaboration revenue | $ 36,016 | $ 21,277 | $ 25,216 |
Collaborative Arrangement [Member] | |||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||
Collaboration revenue | 38,154 | 25,153 | 25,899 |
Collaborative Arrangement [Member] | Celgene [Member] | |||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||
Collaboration revenue | 35,997 | 21,833 | 15,895 |
Collaborative Arrangement [Member] | Celgene [Member] | Recognition of Upfront Payments [Member] | |||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||
Collaboration revenue | 35,588 | 20,053 | 13,055 |
Collaborative Arrangement [Member] | Celgene [Member] | Milestone Revenue [Member] | |||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||
Collaboration revenue | 2,520 | ||
Collaborative Arrangement [Member] | Celgene [Member] | Other Revenue [Member] | |||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||
Collaboration revenue | 409 | 1,780 | 320 |
Collaborative Arrangement [Member] | GlaxoSmithKline [Member] | |||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||
Collaboration revenue | 153 | 1,215 | 6,486 |
Collaborative Arrangement [Member] | GlaxoSmithKline [Member] | Recognition of Upfront Payments [Member] | |||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||
Collaboration revenue | 150 | 576 | 1,123 |
Collaborative Arrangement [Member] | GlaxoSmithKline [Member] | Milestone Revenue [Member] | |||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||
Collaboration revenue | 5,000 | ||
Collaborative Arrangement [Member] | GlaxoSmithKline [Member] | Other Revenue [Member] | |||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||
Collaboration revenue | 3 | 639 | 363 |
Collaborative Arrangement [Member] | Bayer [Member] | |||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||
Collaboration revenue | 2,004 | 2,105 | 3,518 |
Collaborative Arrangement [Member] | Bayer [Member] | Recognition of Upfront Payments [Member] | |||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||
Collaboration revenue | 278 | 648 | $ 3,518 |
Collaborative Arrangement [Member] | Bayer [Member] | Other Revenue [Member] | |||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||
Collaboration revenue | $ 1,726 | $ 1,457 |
Collaborations - Celgene Strate
Collaborations - Celgene Strategic Alliance - Additional Information (Detail) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2017USD ($)Program$ / shares | Dec. 31, 2017USD ($)Program$ / sharesshares | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Nov. 30, 2014USD ($) | |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||
Increase in short-term deferred revenue and decrease in long-term deferred revenue | $ (36,045) | $ (21,272) | $ 52,284 | ||
Collaborative Arrangement [Member] | |||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||
Percentage of sharing development cost | 33.33% | ||||
Celgene [Member] | Collaborative Arrangement [Member] | |||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||
Collaboration and Option Agreement date | Dec. 31, 2013 | ||||
Number of additional biologic program | Program | 2 | ||||
Percentage of sharing development cost | 66.66% | ||||
Upfront cash payment received | $ 155,000 | ||||
Issuance of common stock in connection with research and collaboration agreement | shares | 1,470,588 | ||||
Common stock price per share | $ / shares | $ 15.13 | $ 15.13 | |||
Proceeds from issuance of common stock | $ 22,200 | ||||
Premium on closing price of common stock value | 1,700 | ||||
Common stock, fair market value | $ 20,500 | $ 20,500 | |||
Profits and losses sharing percentage | 50.00% | ||||
Initial arrangement consideration | $ 156,700 | ||||
Estimated revenue recognition period | 2 years | 12 years | |||
Payment receivable under agreement | 2,500 | $ 2,500 | |||
Deferred revenue | $ 70,000 | ||||
Increase in revenue | $ 15,500 | ||||
Increase in short-term deferred revenue and decrease in long-term deferred revenue | $ 62,200 | ||||
Decrease in net loss per common share, basic and diluted | $ / shares | $ 0.41 | ||||
Celgene [Member] | Small Molecules [Member] | Collaborative Arrangement [Member] | |||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||
Option unexercised expiration date | Dec. 2, 2017 | ||||
Celgene [Member] | Anti-RSPO3 Program [Member] | Collaborative Arrangement [Member] | |||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||
Regulatory and commercial milestones payments | $ 442,800 | ||||
Opt in payment | $ 37,800 | 37,800 | |||
Celgene [Member] | Navicixizumab Program [Member] | Collaborative Arrangement [Member] | |||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||
Regulatory and commercial milestones payments | 505,000 | ||||
Opt in payment | 25,000 | 25,000 | |||
Celgene [Member] | Anti-TIGIT Program [Member] | Collaborative Arrangement [Member] | |||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||
Regulatory and commercial milestones payments | 440,000 | ||||
Opt in payment | $ 35,000 | 35,000 | |||
Celgene [Member] | RSPO LGR Signaling Pathway [Member] | Collaborative Arrangement [Member] | Maximum [Member] | |||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||
Number of additional biologic program | Program | 2 | ||||
Celgene [Member] | Navicixizumab Program, Rosmantuzumab Program and AntiTIGIT Program [Member] | Collaborative Arrangement [Member] | |||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||
Future development milestone payments | $ 97,800 | 97,800 | |||
Additional contingent consideration for development, regulatory and commercial milestones | $ 1,300,000 |
Collaborations - Bayer Strategi
Collaborations - Bayer Strategic Alliance - Additional Information (Detail) - Bayer [Member] - USD ($) $ in Millions | Jun. 16, 2017 | Jun. 15, 2010 | Dec. 31, 2012 | Dec. 31, 2010 |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Collaboration and Option Agreement date | Jun. 15, 2010 | |||
Collaborative Arrangement [Member] | ||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Effective date of termination | Jun. 16, 2017 | |||
Milestone payments earned | $ 5 | $ 40 | ||
Collaborative Arrangement [Member] | Small Molecules [Member] | ||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Future development milestone payments | $ 17 | |||
Contingent consideration payments for regulatory events | 15 | |||
Collaborative Arrangement [Member] | Small Molecules [Member] | Achievement of Specified Future Product Sales [Member] | ||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Potential milestone payment upon achievement of sales | $ 70 |
Lonza Sales AG Agreement - Addi
Lonza Sales AG Agreement - Additional Information (Detail) - Lonza Sales AG [Member] | 12 Months Ended | ||||
Dec. 31, 2012USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2012GBP (£) | |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||||
License agreement, upfront payment recorded in research and development expense | $ 488,000 | ||||
Obligation to pay certain payments | $ 270,000 | $ 0 | $ 0 | $ 0 | £ 200,000 |
Stockholder's Equity - Addition
Stockholder's Equity - Additional Information (Detail) - USD ($) | Aug. 23, 2016 | Jul. 17, 2013 | Jul. 31, 2013 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jan. 01, 2018 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Stock options vesting original months | 5 years 7 months 6 days | ||||||
Common stock available for future issuance under plan | 7,909,000 | ||||||
Common stock subject to options outstanding | 5,217,000 | 4,324,000 | |||||
Total fair value of options vested | $ 7,100,000 | $ 9,200,000 | $ 6,600,000 | ||||
Intrinsic value of options exercised | 1,400,000 | 800,000 | $ 4,200,000 | ||||
Intrinsic value of options outstanding | $ 913,000 | $ 6,302,000 | |||||
Weighted-average grant-date fair value, granted | $ 3.66 | $ 8.23 | $ 12.99 | ||||
At-the-Market Offering [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Net proceeds from sale of common stock | $ 1,701,000 | $ 4,739,000 | |||||
At-the-Market Offering [Member] | Common Stock [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Number of shares sold | 355,821 | 388,166 | |||||
At-the-Market Offering [Member] | Cantor Fitzgerald & Co [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Percentage of sales commission on aggregate gross proceeds | 3.00% | ||||||
Weighted average price per share | $ 4.93 | $ 12.59 | |||||
Net proceeds from sale of common stock | $ 1,700,000 | $ 4,700,000 | |||||
At-the-Market Offering [Member] | Cantor Fitzgerald & Co [Member] | Common Stock [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Number of shares sold | 355,821 | 388,166 | |||||
Public Offering [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Number of shares sold | 6,325,000 | ||||||
Net proceeds from sale of common stock | $ 59,200,000 | $ 59,170,000 | |||||
Public offering price per share | $ 10 | ||||||
Public Offering [Member] | Common Stock [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Number of shares sold | 6,325,000 | ||||||
Employees Stock Purchase Plan [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Common stock available for future issuance under plan | 1,205,870 | ||||||
Common stock shares authorized | 1,543,620 | ||||||
Common stock purchased at discount through payroll deductions | 15.00% | ||||||
Employee stock purchase plan, offering period | 6 months | ||||||
Shares purchased lower of the fair market value | 85.00% | ||||||
Common stock issued to employees under ESPP | 88,982 | 111,633 | 71,226 | ||||
Weighted-average price per share | $ 7.16 | $ 8.21 | $ 16.58 | ||||
Weighted-average grant-date fair value, granted | $ 3.39 | $ 5.06 | $ 7 | ||||
Unrecognized stock-based compensation expense | $ 21,000 | ||||||
Estimated weighted-average period | 2 months 12 days | ||||||
Restricted Stock Units [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Total fair value of RSUs vested | $ 6,400,000 | $ 2,200,000 | |||||
RSUs vested | 0 | ||||||
Intrinsic value of non-vested RSUs | $ 3,600,000 | ||||||
Weighted-average grant-date fair value, granted | $ 3.96 | ||||||
Unrecognized stock-based compensation expense | $ 3,500,000 | ||||||
Estimated weighted-average period | 1 year 10 months 24 days | ||||||
Unvested Stock Options [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Unrecognized stock-based compensation expense | $ 11,200,000 | ||||||
Estimated weighted-average period | 2 years 9 months 18 days | ||||||
Subsequent Event [Member] | Employees Stock Purchase Plan [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Common stock available for future issuance under plan | 350,000 | ||||||
Maximum [Member] | At-the-Market Offering [Member] | Cantor Fitzgerald & Co [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Issuance of common stock value under sales agreement | $ 50,000,000 | ||||||
2004 Stock Incentive Plan [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Restricted stock units vesting period | 5 years | ||||||
Stock options vesting description | Stock options granted generally vest over a period of five years from the date of grant, with 20% of the total grant vesting on the first anniversary of the option vesting commencement date and 1/48 of the remaining grant vesting each month thereafter. | ||||||
Stock options vesting original months | 48 months | ||||||
Common stock available for future issuance under plan | 90,125 | ||||||
Common stock subject to options outstanding | 1,203,813 | ||||||
2004 Stock Incentive Plan [Member] | First Anniversary [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Stock options vesting, percentage | 20.00% | ||||||
2013 Equity Incentive Award Plan [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Restricted stock units vesting period | 4 years | ||||||
Stock options vesting description | Stock options granted generally vest over a period of four years from the date of grant, with 25% of the total grant vesting on the first anniversary of the option vesting commencement date and 1/48th of the original grant vesting each month thereafter for stock options granted upon hiring, and with 1/48th of the total grant vesting each month after the option vesting commencement date for any stock options granted after the hiring date. | ||||||
Stock options vesting original months | 48 months | ||||||
Common stock available for future issuance under plan | 500,000 | ||||||
Exercise price of option, percentage | 100.00% | ||||||
Common stock shares authorized | 5,823,879 | ||||||
Common stock subject to options and restricted stock units outstanding | 4,892,862 | ||||||
2013 Equity Incentive Award Plan [Member] | Subsequent Event [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Common stock available for future issuance under plan | 1,500,000 | ||||||
2013 Equity Incentive Award Plan [Member] | Stock Plan, Annual Increase of Shares 2014 to 2023 [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Increase in common stock | 1,500,000 | ||||||
Percentage of common stock outstanding as-converted basis | 4.00% | ||||||
2013 Equity Incentive Award Plan [Member] | Maximum [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Term of options from the grant date | 10 years | ||||||
2013 Equity Incentive Award Plan [Member] | Greater than 10% Stockholder [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Restricted stock units vesting period | 5 years | ||||||
Exercise price of option, percentage | 110.00% | ||||||
Percentage of incentive stock option granted | 10.00% | ||||||
2013 Equity Incentive Award Plan [Member] | First Anniversary [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Stock options vesting, percentage | 25.00% |
Stockholder's Equity - Summary
Stockholder's Equity - Summary of Common Stock Reserved for Future Issuance (Detail) | Dec. 31, 2017shares |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Total common stock reserved for future issuances | 7,909,000 |
Stock Options And RSUs [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Total common stock reserved for future issuances | 6,097,000 |
Equity Award Grants [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Total common stock reserved for future issuances | 606,000 |
Employees Stock Purchase Plan [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Total common stock reserved for future issuances | 1,205,870 |
Stockholder's Equity - Summar56
Stockholder's Equity - Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Stock Option Outstanding, Number of shares, Beginning Balance | 4,324 | |
Stock Option Outstanding, Number of shares, Granted | 2,376 | |
Stock Option Outstanding, Number of shares, Exercised | (411) | |
Stock Option Outstanding, Number of shares, Forfeited | (1,072) | |
Stock Option Outstanding, Number of shares, Ending Balance | 5,217 | 4,324 |
Stock Option Outstanding, Number of shares, Options vested and expected to vest—December 31, 2017 | 5,217 | |
Stock Option Outstanding, Number of shares, Options exercisable—December 31, 2017 | 2,943 | |
Stock Option Outstanding, Weighted Average Exercise Price per Share, Beginning Balance | $ 13.95 | |
Stock Option Outstanding, Weighted Average Exercise Price per Share, Granted | 5.44 | |
Stock Option Outstanding, Weighted Average Exercise Price per Share, Exercised | 4.15 | |
Stock Option Outstanding, Weighted Average Exercise Price per Share, Forfeited | 14.70 | |
Stock Option Outstanding, Weighted Average Exercise Price per Share, Ending Balance | 10.70 | $ 13.95 |
Stock Option Outstanding, Weighted Average Exercise Price per Share, Options vested and expected to vest—December 31, 2017 | 10.70 | |
Stock Option Outstanding, Weighted Average Exercise Price per Share, Options exercisable—December 31, 2017 | $ 12.25 | |
Stock Option Outstanding, Weighted Average Remaining Contractual Life, Outstanding | 5 years 7 months 6 days | 5 years 7 months 6 days |
Stock Option Outstanding, Weighted Average Remaining Contractual Life, Options vested and expected to vest—December 31, 2017 | 5 years 7 months 6 days | |
Stock Option Outstanding, Weighted Average Remaining Contractual Life, Options exercisable—December 31, 2017 | 4 years 1 month 6 days | |
Stock Option Outstanding, Aggregate Intrinsic Value | $ 913 | $ 6,302 |
Stock Option Outstanding, Aggregate Intrinsic Value, Options vested and expected to vest—December 31, 2017 | 913 | |
Stock Option Outstanding, Aggregate Intrinsic Value, Options exercisable—December 31, 2017 | $ 603 |
Stockholder's Equity - Summar57
Stockholder's Equity - Summary of RSU Activity (Detail) - Restricted Stock Units [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Restricted Stock Units Outstanding, Number of shares, Beginning Balance | 576 | |
Restricted Stock Units Outstanding, Number of shares, Awarded | 831 | |
Restricted Stock Units Outstanding, Number of shares, Released | (242) | |
Restricted Stock Units Outstanding, Number of shares, Forfeited | (285) | |
Restricted Stock Units Outstanding, Number of shares, Ending Balance | 880 | 576 |
Restricted Stock Units Outstanding, Weighted Average Grant Date Fair Value per Share, Beginning Balance | $ 17.66 | |
Restricted Stock Units Outstanding, Weighted Average Grant Date Fair Value per Share, Awarded | 3.96 | |
Restricted Stock Units Outstanding, Weighted Average Grant Date Fair Value per Share, Released | 26.30 | |
Restricted Stock Units Outstanding, Weighted Average Grant Date Fair Value per Share, Forfeited | 8.45 | |
Restricted Stock Units Outstanding, Weighted Average Grant Date Fair Value per Share, Ending Balance | $ 5.33 | $ 17.66 |
Restricted Stock Units Outstanding, Weighted Average Remaining Contractual Life | 1 year 3 months 18 days | 1 year 6 months |
Restricted Stock Units Outstanding, Aggregate Intrinsic Value | $ 3,606 | $ 4,439 |
Stockholder's Equity - Schedule
Stockholder's Equity - Schedule of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock-based compensation | $ 9,414 | $ 11,131 | $ 10,766 |
Research and Development [Member] | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock-based compensation | 4,886 | 5,892 | 6,113 |
General and Administrative [Member] | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock-based compensation | 4,522 | $ 5,239 | $ 4,653 |
Restructuring Charges [Member] | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock-based compensation | $ 6 |
Stockholder's Equity - Assumpti
Stockholder's Equity - Assumptions Used for Determining Fair Value of Stock Options Using Black-Scholes Valuation Model (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Weighted-average volatility | 75.80% | 71.90% | 62.60% |
Weighted-average expected term (years) | 6 years 2 months 12 days | 5 years 9 months 18 days | 6 years 2 months 12 days |
Risk-free interest rate | 2.20% | 1.50% | 2.10% |
Expected dividend yield |
Stockholder's Equity - Assump60
Stockholder's Equity - Assumptions Used for Determining Fair Value of Stock Purchase Rights Granted under Company's ESPP Using Black-Scholes Valuation Model (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Weighted-average volatility | 75.80% | 71.90% | 62.60% |
Weighted-average expected term (years) | 6 years 2 months 12 days | 5 years 9 months 18 days | 6 years 2 months 12 days |
Risk-free interest rate | 2.20% | 1.50% | 2.10% |
Expected dividend yield | |||
Employees Stock Purchase Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Weighted-average expected term (years) | 6 months | 6 months | 6 months |
Expected dividend yield | |||
Employees Stock Purchase Plan [Member] | Minimum [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Weighted-average volatility | 54.00% | 45.40% | 51.10% |
Risk-free interest rate | 0.47% | 0.26% | 0.05% |
Employees Stock Purchase Plan [Member] | Maximum [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Weighted-average volatility | 93.70% | 104.50% | 72.50% |
Risk-free interest rate | 1.10% | 0.50% | 0.08% |
Restructuring Charges - Additio
Restructuring Charges - Additional Information (Detail) | Apr. 24, 2017Employee | Dec. 31, 2017USD ($)Employee |
Restructuring Cost And Reserve [Line Items] | ||
Number of remaining employees | 64 | |
Percentage of reduction in workforce | 48.00% | |
Restructuring plan, description | Under the restructuring plan the Company is reducing its workforce by 60 employees (or 48%) to 64 employees, based on the number of employees employed by the Company as of April 24, 2017. As of December 31, 2017, 59 of the affected employees had been terminated, and the remaining one employee will be terminated by August 31, 2018. As a result, the Company incurred $2.5 million in restructuring charges consisting of one-time severance payments and other employee related costs, and other charges during the year ended December 31, 2017, of which a majority was paid out in cash during the second quarter of 2017. Restructuring charges are included in operating expense in the statement of operations. The restructuring reserve of $37,000 is included in accrued liabilities on the balance sheet as of December 31, 2017, and is expected to be fully paid by the third quarter of 2018. | |
Number of affected employees terminated till date | 59 | |
Remaining number of employees to be terminated | 1 | |
Restructuring charges | $ | $ 2,527,000 | |
Restructuring reserve | $ | $ 37,000 | |
Minimum [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Number of workforce reduce | 60 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Loss Carryforwards [Line Items] | |||||
Income tax provision (benefit) | $ (1,083,000) | $ 14,000 | $ 20,000 | ||
(Decrease) increase in valuation allowance | $ (32,100,000) | $ 42,900,000 | |||
Corporate tax rate | 35.00% | 35.00% | 35.00% | ||
Income tax benefit | $ (1,100,000) | ||||
Reduction in deferred tax assets | $ 51,700,000 | ||||
Alternative minimum tax carryforwards | 1,500,000 | 1,500,000 | |||
Impact on income tax provision of unrecognized tax benefits, if recognized | 15,900,000 | 15,900,000 | $ 13,100,000 | ||
Significant changes in unrecognized tax benefits reasonably possible in following 12 months | 0 | 0 | |||
Accrued interest and penalties related to unrecognized tax benefits | 15,000 | 15,000 | 14,000 | ||
Liability recognized for interest and penalties | 86,000 | $ 71,000 | |||
Federal [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Net operating loss carryforward | 229,300,000 | $ 229,300,000 | |||
Operating loss carryforwards, expiration year | 2,023 | ||||
Estimated expire amount of operating loss carryforwards | 700,000 | $ 700,000 | |||
Federal [Member] | Orphan drug credit [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Operating loss carryforwards, expiration year | 2,034 | ||||
Aggregate tax credit carryforwards | 39,300,000 | $ 39,300,000 | |||
Federal [Member] | Research and Development Tax Credit Carryforwards [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Operating loss carryforwards, expiration year | 2,025 | ||||
Aggregate tax credit carryforwards | 23,300,000 | $ 23,300,000 | |||
Alternative Minimum Tax Credit [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Tax credit refundable year | 2,022 | ||||
Tax credit receivable expected refund amount | $ 1,100,000 | ||||
State [Member] | Research and Development Tax Credit Carryforwards [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Aggregate tax credit carryforwards | 18,800,000 | $ 18,800,000 | |||
Tax credit carryforward description | California research and development credits have no expiration date. | ||||
California [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Estimated expire amount of operating loss carryforwards | 700,000 | $ 700,000 | |||
California [Member] | State [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Net operating loss carryforward | $ 97,000,000 | $ 97,000,000 | |||
Operating loss carryforwards, expiration year | 2,018 | ||||
Scenario, Plan [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Corporate tax rate | 21.00% |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Provision (Benefit) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current: | |||
Federal | $ (1,084) | $ 13 | $ 19 |
State | 1 | 1 | 1 |
Total | (1,083) | 14 | 20 |
Deferred: | |||
Income tax provision (benefit) | $ (1,083) | $ 14 | $ 20 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Statutory Federal Income Tax Rate to Company's Effective Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Tax at statutory federal rate | 35.00% | 35.00% | 35.00% |
State tax—net of federal benefit | 1.00% | 1.00% | 3.00% |
Tax credits | 12.00% | 8.00% | 9.00% |
Stock compensation | (7.00%) | (2.00%) | (1.00%) |
Change in valuation allowance | 90.00% | (42.00%) | (46.00%) |
Impact of corporate rate change on deferred taxes | (129.00%) | ||
Other | 1.00% | ||
Income tax (provision) benefit | 3.00% |
Income Taxes - Schedule of Net
Income Taxes - Schedule of Net Deferred Tax Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 54,931 | $ 58,760 |
Accruals | 643 | 3,520 |
Tax credit carryovers | 63,406 | 53,047 |
Deferred revenue | 30,259 | 63,006 |
Other | 3,643 | 6,668 |
Gross deferred tax assets | 152,882 | 185,001 |
Valuation allowance | $ (152,882) | $ (185,001) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of year | $ 14,260 | $ 10,022 | $ 5,434 |
Increase related to current year tax provision | 2,398 | 4,238 | 4,668 |
Increase related to prior year tax provision | 10 | ||
Decrease related to prior year tax provision | (90) | ||
Balance at end of year | $ 16,658 | $ 14,260 | $ 10,022 |
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 shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Outstanding shares of common stock equivalents | 6,097 | 4,901 | 4,694 |
Options to purchase common stock [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Outstanding shares of common stock equivalents | 5,217 | 4,325 | 4,408 |
Restricted Stock Units [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Outstanding shares of common stock equivalents | 880 | 576 | 286 |
Selected Quarterly Financial 68
Selected Quarterly Financial Data - Summary of Selected Quarterly Results from Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||||||||||
Total revenue | $ 20,640 | $ 5,106 | $ 6,195 | $ 6,213 | $ 6,219 | $ 5,919 | $ 6,665 | $ 6,350 | $ 38,154 | $ 25,153 | $ 25,899 |
Operating expenses | 12,395 | 16,131 | 21,630 | 28,971 | 28,608 | 31,854 | 34,481 | 33,597 | 79,127 | 128,540 | 111,456 |
Net loss | $ 9,463 | $ (10,692) | $ (15,225) | $ (22,608) | $ (22,334) | $ (25,864) | $ (27,691) | $ (27,213) | $ (39,062) | $ (103,102) | $ (85,407) |
Basic and diluted net income (loss) per common share | $ 0.25 | $ (0.28) | $ (0.40) | $ (0.61) | $ (0.60) | $ (0.77) | $ (0.91) | $ (0.90) | $ (1.04) | $ (3.14) | $ (2.84) |